Answer:
a. Decreases the net income
b. Decreases the Net account receivable balance
Explanation:
To write off the uncollectible account we pass the following journal entry
Dr. Allowance for doubtful accounts $x,xxx
Cr. Accounts receivables $x,xxx
The above entry has the following impacts.
a.
It decreases the net income value as the Allowance for uncollectible account balance reduces as a result. At the end of the period the adjustment of Allowance uncollectible accounts of increases which is recorded as below
Dr. Bad Debt Expense $x,xxx
Cr. Allowance for uncollectible accounts $x,xxx
b.
It decreases the accounts receivable balance as we credit the account receivable balance to remove the outstanding balance of uncollectible accounts.
Suppose you will receive a payment of $300 one year from now. True or False: If during the year the interest rate rises, this increases the present value of your future payment.
Answer: False
Explanation:
When interest rates rise, the present value of a payment will be reduced because it will be discounted by a higher rate.
For instance; assume the interest rate was originally 10%. The present value of the $300 would be;
= 300 / ( 1 + 10%)
= $273
Now assume the interest rate went up to 11%. Present value would be;
= 300 / ( 1 + 11%)
= $270
Notice that the present value fell when the interest rate rose.
The cash conversion cycle (CCC) combines three factors: The inventory conversion period, the receivables collection period, and the payables deferral period, and its purpose is to show how long a firm must finance its working capital. Other things held constant, the shorter the CCC, the more effective the firm's working capital management.
a. True
b. False
Answer:
a. True
Explanation:
A cash conversion cycle can be defined as a measure of the time or how long (in days) it would take a business firm or company to transform or convert its investments that are in inventory, as well as other tangible resources into cash-flow from the sales it make.
The cash conversion cycle (CCC) combines three factors: The inventory conversion period, the receivables collection period, and the payables deferral period, and its purpose is to show how long a firm must finance its working capital. Other things held constant, the shorter the CCC, the more effective the firm's working capital management.
Classify each of the following based on the macroeconomic definitions of saving and investment.
a. Megan purchases stock in Pherk, a pharmaceutical company.
b. Larry purchases a new condominium in Denver.
c. Janet purchases new ovens for her cupcake-baking business.
d. Felix purchases a corporate bond issued by a car company.
Answer:
A)savings
B) investment
C) investment
D)savings
Explanation:
In macroeconomics, Savings could be regarded as the amount that remains when the spending by consumer has been deducted from amount of disposable income that was earned by the consumer at that particular period.
Investment can be regarded as the amount of goods that are been accumulated which has not been consumed at that particular time.
From the question, The stock purchased by Megan in the question means that she has extral money which is savings to her. Government bonds purchase by Felix means he secured a savings.
which value of a makes this investor indifferent between the risky portfolio and the risk-free asset
Answer: 8
Explanation:
Expressing the value of A that would equate the risk-free rate to the risky portfolio is;
0.06 = 0.15 − A/2(0.15)²
0.06 - 0.15 = -0.01125 * A
A = (0.06 - 0.15) / -0.01125
A = 8
With A being 8, the investor would be indifferent between the risk free asset and the risky portfolio according to their utility function.
If fixed costs are $46,800, the unit selling price is $42, and the unit variable costs are $24, the break-even sales (units) if the variable costs are decreased by $2 is:__________ a. 1,950 units b. 2,340 units c. 1,114 units d. 2,127 units
Answer: b. 2,340 units
Explanation:
Break-even sales refers to the amount of sales that would give the company $0 profits.
It can be calculated by the formula;
= Fixed Costs / Contribution Margin
Contribution Margin = Sales - Variable costs
= 42 - (24 - 2)
= $20
Breakeven = 46,800/20
= 2,340 units
A company that reports segment information had average total assets of $1,548,450 and total net income of $629,700. Segment A had average total assets of $940,800 and segment operating income of $317,800. Segment B had average assets of $607,650 and segment operating income of $311,900. The segment return on assets for Segment B is:
Answer:
the segment return on assets for segment B is 51.33%
Explanation:
The computation of the segment return on assets for segment B is shown below:
For segment B
= Segment operating income ÷ average assets
= $311,900 ÷ $607,650
= 51.33%
Hence, the segment return on assets for segment B is 51.33%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Which of the following is likely to help an organization expand collaborative
involvement?
Complete Question:
Which of the following is likely to help an organization expand collaborative involvement?
Group of answer choices
A. Hosting training sessions with customers.
B. Minimizing critical encounters with customers.
C. Developing service resilience.
D. Applying the practices of traditional selling.
E. Using cold canvassing for customer prospecting
Answer:
A. Hosting training sessions with customers.
Explanation:
Collaborative involvement can be defined as the process in which two or more people and an organization have a mutual understanding or agreement to share knowledge, ideas and skills in order to help the organization achieve its aim, goals and objectives successfully.
For example, a restaurant such as McDonald's may decide to train its cashier on proper customer relationship management and effective sales and marketing techniques by inviting consenting customers to partake in the training sessions.
Hence, hosting training sessions with customers is likely to help an organization expand collaborative
involvement.
If a bank has a reserve ratio of 8 percent, then Group of answer choices the bank keeps 8 percent of its assets as reserves and loans out the rest. the bank keeps 8 percent of its deposits as reserves and loans out the rest. the bank's ratio of loans to deposits is 8 percent. government regulation requires the bank to use at least 8 percent of its deposits to make loans.
Answer:
the bank keeps 8 percent of its deposits as reserves and loans out the rest.
Explanation:
Since it is mentioned in the question that there is a reserve ratio of 8% so now the reserve requirement means the requirement with respect to the fund value that bank should hold on to in reserve against deposits that made by their clients. The money must be either at the vaults of the bank or at the closing of the federal reserve bank
Therefore the second option is correct
if a bank has 120 million in deposits and 7 million in reserves with a reserve requirement of 0.05 how much its required reserves
Answer:
the required reserve is $6 million
Explanation:
The computation of the required reserve is shown below:
= Deposits made × reserve requirement ratio
= 120 million × 0.05
= $6 million
hence, the required reserve is $6 million
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Also we ignored the reserves as it is not relevant
find the range for the observation 5.6,7.1,8.3,3.7,6.8,4.1,8.4,2.9,2.7,4.4,8.2,2.8
Answer:
8
Explanation:
The range is the difference between the largest and smallest numbers. The midrange is the average of the largest and smallest number.
9-1=8
What would you pay for an investment that pays you $49000 at the beginning of each year for the next ten years? Assume that the relevant interest rate for this type of investment is 6%.
Answer:
$360,644
Explanation:
The computation of the amount paid for an investment is as follows:
= Payment made × ((1 - (1 + rate of interest)^-number of years) ÷ rate of interest
= $49,000 × ((1 - (1 + 0.06)^-10) ÷ 0.06)
=$360,644
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Hence, the amount paid for an investment is $360,644
Claymore Corp. has the following information about its standards and production activity for September. The volume variance is: ________
Actual total factory overhead incurred $32,710
Standard factory overhead:
Variable overhead $4.70 per unit produced
Fixed overhead ($12,250/4,900 estimated units to be produced) $2.50 per unit
Actual units produced 3,800 units
Answer: $2,200 Unfavorable
Explanation:
Volume variance is the difference between actual and budgeted output so can be calculated by;
= (Budgeted output - Actual output) * overhead rate
= (4,900 - 3,800) * 2
= $2,200 Unfavorable
Unfavorable because they produced less than the budget indicated that they would.
Neutral technical progress allows a firm to A. produce the same amount of output with the same inputs. B. produce more output with the same inputs. C. use less labor to produce more output. D. use less capital to produce more output.
Answer:
B) produce more output with the same inputs.
Explanation:
Hicks-neutral technical is a theory by
John Hicks and can be explained as a change in the function of the production of a particular business with respect to the neatral condition of economic system at that period. It should be noted that Neutral technical progress allows a firm to produce more output with the same inputs.
Over time, consumers have less of a need for a broad product offering. How does this shift in preferences alter the desirability of make-to-stock production relative to make-to-order production?1. It increases it, i.e., make-to-stock becomes more desirable.2. It has no impact.3. It decreases it. i.e., make-to-stock becomes less desirable.4. We cannot determine from the given information.
Answer:
Over time, consumers have less of a need for a broad product offering. How does this shift in preferences alter the desirability of make-to-stock production relative to make-to-order production?
3. It decreases it. i.e., make-to-stock becomes less desirable.
Explanation:
Given the above scenario, there will be no need for a company to produce goods that will be stored. Instead, it will wait to receive orders before it commences production of any goods. This is caused by the shift in preferences "consumers have less of a need for a broad product offering." This means that make-to-order will be highly prioritized while reducing or eliminating make-to-stock production facilities.
Signal mistakenly produced 1,075 defective cell phones. The phones cost $66 each to produce. A salvage company will buy the defective phones as they are for $38 each. It would cost Signal $86 per phone to rework the phones. If the phones are reworked, Signal could sell them for $136 each. Signal has excess capacity. Should Signal scrap or rework the phones.
Required:
Compute the incremental net income from reworking the phones.
Answer:
If the phones are reworked, income will increase by $12,900.
Explanation:
Because we need to determine the incremental income, we will not take into account the original costs. They remain constant in both options.
Sell as-is:
Effect on income= 1,075*38
Effect on income= $40,850 increase
Rework:
Effect on income= 1,075*(136 - 86)
Effect on income= $53,750
If the phones are reworked, income will increase by $12,900.
'Modigliani Manufacturing has a target debt-equity ratio of .50. Its cost of equity is 18 percent and its cost of debt is 11 percent. If the tax rate is 35 percent, what is Modigliani's WACC
Answer:
the Weighted average cost of capital is 14.38%
Explanation:
The computation of the weighted average cost of capital is shown below:
Weight of equity is
= 1 ÷ (1 + Debt equity Ratio)
= 1 ÷ 1.5
And, Weight of Debt is
= 0.5 ÷ 1.5
Now
WACC = Weight of Equity × Cost of Equity + Weight of Debt × Cost of Debt × (1 - Tax rate)
= 1 ÷ 1.5 × 18% + 0.5 ÷ 1.5 × 11% × (1 - 35%)
= 14.38%
hence, the Weighted average cost of capital is 14.38%
bramble reported total asset s of and net income of for the current year. what is the corrected amount for toal assets and net income for the yeqr
Answer:
Total Assets
Inventory is understated by $59,300 at the end of the year which means that assets are understated by the same amount.
To rectify this therefore you;
= 6,395,000 + 59,300
= $6,454,300
Net Income
When closing inventory is understated, it will have the effect of understating income and when opening inventory is understated, income will be overstated.
This means that the income for the year is overstated by $139,000 but understated by $59,300.
Corrected income is;
= 500,000 - 139,000 + 59,300
= $420,300
Last year, Rec Room Sports reported earnings per share of $8.40 when its stock price was $201.60. This year, its earnings increased by 25 percent. If the P/E ratio remains constant, what is likely to be the price of the Stock?
Answer:
The price of the Stock to be $252
Explanation:
As per available data
Earnings per share = $8.40
Stock price = $201.60
Calculate the P/E ratio
P/E ratio = Price / Earnings per share = $201.60 / $8.40 = 24
First calculate the increased earings per share
Increased earnings per share = $8.40 x ( 1 + 25% ) = $10.5 per share
By taking the P/E ratio constant we can calculate the price of stock using increased eanring per share
P/E ratio = Price / Increased Earnings per share
24 = Price / $10.5
Price = $10.5 x 24
Price = $252
A stock is a broad term that refers to any company's ownership certificates. A share, on the other hand, refers to a certain company's stock certificate.
The price of the Stock to be $252
As per available data:-
Earnings per share = $8.40
Stock price = $201.60
Calculate the P/E ratio:-
P/E ratio = Price / Earnings per share = $201.60 / $8.40 = 24
First calculate the increased earrings per share:-
Increased earnings per share = $8.40 x ( 1 + 25% ) = $10.5 per share
By taking the P/E ratio constant we can calculate the price of stock using increased earning per share:-
P/E ratio = Price / Increased Earnings per share
24 = Price / $10.5
Price = $10.5 x 24
Price = $252
To know more about price of stock, refer to the link:
https://brainly.com/question/14952624
Year Alta (Real GDP) Zorn (Real GDP) Alta (Population) Zorn (Population)
1 $2,000 $150,000 200 500
2 2100 $152,000 202 505
3 2200 $154,000 210 508
Between years 2 and 3 :
a. population fell in Alta.
b. Alta's real GDP grew more rapidly than Zorn's real GDP.
c. real GDP fell in Zorn.
d. population growth reduced Alta's real GDP growth to zero.
Answer: b. Alta's real GDP grew more rapidly than Zorn's real GDP.
Explanation:
Rte of growth for Alta's real GDP;
= (Year 3 GDP - Year 2 GDP) / Year 2 GDP
= (2,200 - 2,100) / 2,200
= 0.045
= 4.5%
Rate of growth for Zorn's real HDP;
= (154,000 - 152,000) / 152,000
= 0.013
= 1.3%
Zorn's real GDP grew slower than Alta's GDP
Shiigi Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for May is to
be based on 3,320 meals. The diner's director has provided the following cost data to use in the budget: groceries, $4.00 per
meal; kitchen operations, $4,620 per month plus $1.75 per meal; administrative expenses, $3,820 per month plus $0.60 per
meal; and fundraising expenses. $1,720 per month
Required:
Prepare the diner's budget for the month of May. The budget will only contain the costs listed above; no revenues will be on the
budget.
Shiigi Urban Diner
Planning Budget
For the Month Ended May 31
Budgeted meals
3,320
Groceries
Kitchen operations
Administrative expenses
Fundraising expenses
Total expense
Answer:
Shiigi Urban Diner
Diner's Cost Budget for the month of May:
Fixed Variable Total
Budgeted meals = 3,320 units
Groceries $0 $13,280 $13,280
Kitchen Operations 4,620 5,810 10,430
Administrative Expenses 3,820 1,992 5,812
Fundraising Expenses 1,720 0 1,720
Total $10,160 $21,082 $31,242
Explanation:
Cost Data and Calculations:
Budgeted number of meals to serve = 3,320
Groceries = $4.00 per meal = $13,280 ($4 * 3,320)
Kitchen operations, $4,620 per month plus $1.75 per meal =
$4,620 + ($1.75 * 3,320) = 10,430
Administrative expenses, $3,820 per month plus $0.60 per meal =
$3,820 + ($0.60 * 3,320) = $5,812
Fundraising expenses, $1,720 per month
For Bonita Industries at a sales level of 4000 units, sales is $69000, variable expenses total $46000, and fixed expenses are $21000. What is the contribution margin per unit
Answer:
the contribution margin per unit is $5.75 per unit
Explanation:
The computation of the contribution margin per unit is shown below:
The Contribution margin per unit is
Contribution margin per unit= Contribution margin ÷ Sales units
= ($69,000 - $46,000 ) ÷ 4,000
= $5.75 per unit
Hence, the contribution margin per unit is $5.75 per unit
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Which is a monetary policy that would be useful in stopping deflation?
A)
decreasing taxation
B)
increasing the discount rate
C)
increasing government spending
D)
decreasing the reserve requirement
"A research survey with outcomes being defined as Poor, Average, Good, Excellent is a random experiment with random variable being of type"
a) Quantitative
b) Continuous
c) Ordinal
d) None of the above
Answer:
c) Ordinal
Explanation:
Ordinal variables use a type of scale or order, e.g. low income level, medium income level and high income level. Ordinal variables cannot be quantified by themselves, but they can be analyzed depending on the value that users assign them. In this case, you could analyze what % of users find that the product or service is excellent vs average.
Getting to know what your customers want, need, and care about is
Question 11 options:
a.a waste of time.
b.one of the chores of doing business.
c.good customer service.
d.only important in certain businesses.
Answer:
c. good customer service.
Explanation:
Customers service is the provision of prompt, professional, and helpful assistance to customers before and after a purchasing interaction. The objectives of customer service are to keep customers happy and satisfies. Happy customers remain loyal to a business and make good brand ambassadors.
Getting to understand what customers want, need, and care about will help a business develop products and services that offer solutions to their problems. The business will attract and retain more customers because it will be in a position to address their needs.
The problem with fiscal policy that is created because of the recognition, legislative, implementation, effectiveness, and the evaluation and adjustment lags is called:
Answer:
A matter of timing
Explanation:
The problem with fiscal policy that is created because of the recognition, legislative, implementation, effectiveness, and the evaluation and adjustment lags is called a matter of timing. The reason being that it can be difficult to time fiscal policy to shift the AD curve at the right moments.
disadvantage of activities that focus on generating publicity is _____________________________________. the limited control over the exact content of the message that reach is very limited that the sender will receive too much feedback the high cost the need for a standardized message
Answer:
the need for standardized message
Explanation:
In simple words, publicity refers to the process under which the same message is transmitted to a large volume of population. This results to a chaos as every individual might not interpret the message in the same manner as it was intended to be. Hence the effort to interact with the target audience may go into vain.
Thus, from the above we can conclude that the correct option is D.
Suppose that the nominal exchange rate is 80 yen per dollar, that the price of a basket of goods in the U.S. is $500 and the price of a basket of goods in Japan is 50,000 yen. Suppose that these values change to 100 yen per dollar, $600, and 70,000 yenThen the real exchange rate would:________
a. appreciate which by itself would make U.S. net exports fall.
b. appreciate which by itself would make U.S. net exports rise.
c. depreciate which by itself would make U.S. net exports fall.
c. depreciate which by itself would make U.S. net exports rise
Answer:
a. appreciate which by itself would make U.S. net exports fall.
Explanation:
Nominal exchange rate 80 yen per $, cost of basket of goods in Japan is 50,000 yen = $625, while the same basket of goods costs $500 in the US. The relationship between Japan and the US is $500:$625 or 4:5 or 0.80.
If the nominal exchange rate increases to 100 yen per $, and the cost of the basket of goods is 70,000 yen = $700, while the same basket of goods costs $600 in the US. The relationship between Japan and the US is $600:$700 or 6:7 = 0.86.
Since the real exchange rate appreciated, US exports will become more expensive.
Advantages to free-trade agreements (FTAs) are that they increase trade barriers (both tariff and non-tariff barriers), open up market to exporters, and increase jobs domestically. True orFalse
Answer:
False
Explanation:
Free trade agreements are economic cooperation deals between two or more countries. In the agreement, the countries agree to put in measures that will promote trade between them. Free trade agreements are mostly about tariffs and duties that countries impose on each other imports and exports.
The purpose of the free trade agreement is for participating countries to review the tariffs to increase trade among participating countries. In most cases, a free trade agreement resorts to reduced tariffs and duties.
"________ is the difference between the average cost and price of all merchandise in stock as used by the middlemen."
Answer:
Markup
Explanation:
Markup is defined as the difference that exists between the selling price of a product and the average cost that was used in its production
This information is used by middle men to estimate the amount of profit they can make on sale of a product.
Usually the markup cost is incorporated into the cost incurred by the producer as a percentage of a product's cost.
This ensures middle men make some profit
Suppose you want to realize a future value of $150,000 in 30 years on an investment you make. The average annual rate of return is 8.75%. What will be the present value of your investment? A. $163,125 B. $1,857,673 C. $12,112 D. $150,000
Answer:
PV= $12,111.93 = $12,112
Explanation:
Giving the following information:
Future Value (FV)= $150,000
Interest rate (i)= 8.75% = 0.0875
Number of periods (n)= 30
To calculate the present value (PV), we need to use the following formula:
PV= FV/(1+i)^n
PV= 150,000 / (1.0875^30)
PV= $12,111.93