Answer:
$450,732, 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 25 years, you would need to pay $1,497.66 per month. But since you can only afford to pay $950 per month, the remaining balance will be $450,732.
I prepared an amortization schedule in an excel spreadsheet
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
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
The , , and partnership balance sheet reports capital of for , for , and for . is withdrawing from the firm. The partners have shared profits and losses in the ratio of to , to , and to . The partnership agreement states that a withdrawing partner will receive cash equal to the book value of his partners' equity. Journalize the withdrawal of .
Complete Question:
The O'Hara, Parness, and Lincoln partnership balance sheet reports capital of $50,000 for O'Hara, $125,000, for Parness, and $25,000 for Lincoln. O'Hara is withdrawing from the firm. The partners have shared profits and losses in the ratio of 1/2 to O'Hara, 1/4 to Parness, and 1/4 to Lincoln. The partnership agreement states that a withdrawing partner will receive cash equal to the book value of his partners' equity. Journalize the withdrawal of O'Hara.
Answer:
The O'Hara, Parness, and Lincoln Partnership
Journal Entry:
Date Description Debit Credit
O'Hara Capital A/c $50,000
Cash Account $50,000
To record the withdrawal of O'Hara and his capital interest.
Explanation:
The Partnership of O'Hara, Parness, and Lincoln can use the journal entry as above to record the withdrawal of a partner. The O'Hara's Capital account previously had a credit balance and cash will be involved in settling O'Hara, the journal entries to complete the withdrawal of O'Hara are a debit to the O'Hara's Capital account and a credit to the Cash account. This arrangement is in accordance with the partnership agreement. This is the most important governing law for the partnership and everything or transaction affecting the partnership must be done accordingly. It is only in the absence of an agreement that the laws or general practise concerning partnership can be applied.
Consider a four-year project with the following information: initial fixed asset investment = $555,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $37; variable costs = $25; fixed costs = $230,000; quantity sold = 79,000 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
for every 1% increase in the quantity sold, OCF increases by 1.24%
for every 1% decrease in the quantity sold, OCF decreases by 1.24%
Explanation:
Consider a four-year project with the following information: initial fixed asset investment = $555,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $37; variable costs = $25; fixed costs = $230,000; quantity sold = 79,000 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold?
initial outlay = $555,000
depreciation expense per year = $555,000 / 4 = $138,750
contribution margin per unit = $37 - $25 = $12
quantity sold = 79,000 units
tax rate = 24%
fixed costs = $230,000
OCF = {[(79,000 x $12) - $230,000 - $138,750] x (1 - 24%)} + $138,750 = $578,980
if sales increase by 10%, OCF = {[(86,900 x $12) - $230,000 - $138,750] x (1 - 24%)} + $138,750 = $651,028 ⇒ 12.44% increase
if sales decrease by 10%, OCF = {[(71,100 x $12) - $230,000 - $138,750] x (1 - 24%)} + $138,750 = $506,932 ⇒ 12.44% decrease
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
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 )
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
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.
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.
The manager of a crew that installs carpeting has tracked the crew's output over the past several weeks, obtaining the figure:
Week Crew Size Yards Installed
1 4 96
2 3 72
3 4 92
4 2 50
5 3 69
6 2 52
Compute labor productivity for each of the weeks. On the basis of your calculations, what can you conclude about crew size and productivity?
Answer:
Week Crew Size Yards Installed
1 4 96
2 3 72
3 4 92
4 2 50
5 3 69
6 2 52
labor productivity = total output / number of employees
week 1 ⇒ 96 / 4 = 24 yards installed per worker
week 2 ⇒ 72 / 3 = 24 yards installed per worker
week 3 ⇒ 92 / 4 = 23 yards installed per worker
week 4 ⇒ 50 / 2 = 25 yards installed per worker
week 5 ⇒ 69 / 3 = 23 yards installed per worker
week 6 ⇒ 52 / 2 = 26 yards installed per worker
The crew size that results in the highest productivity is 2 workers per crew, and they install between 25-26 yards per worker.
The other crew sizes (3 or 4 workers) have a productivity of 23-24 yards per worker.
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.
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%
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
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
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.
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%
Justin Time Guitars manufactures electric guitars. The following data relate to the standards for direct labor: Standard direct labor hours per guitar Standard direct labor rate per hour Justin Time had the following actual results for March: Actual direct labor hours Actual total direct labor cost Actual number of guitars produced What is the direct labor efficiency variance for March?
Question
Justin Time Guitars manufactures electric guitars. The following data relate to the standards for direct labor: Standard direct labor hours per guitar Standard direct labor rate per hour Justin Time had the following actual results for March: Actual direct labor hours Actual total direct labor cost Actual number of guitars produced What is the direct labor efficiency variance for March?
standard Ditect labour hour 3.5
Standard direct labour rate $17
Actual direct labour hour 650
Actual direct labour cost 26200
Actual number of guitars produced - 525
Answer
Efficiency variance =$20,187.5
Explanation
Labour efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours allowed for same multiplied by the standard labour rate
Hours
525 units should have taken (525× 3.5) = 1,837.5
but did take 650
efficiency variance (hours) 1187.5 favorable
standard labor rate × $ 17
Efficiency variance ($) $20,187.5 favorable
Efficiency variance =$20,187.5
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
"Your customer, age 68, who has an IRA account at your firm valued at $500,000, passes away. The customer leaves the account to his wife, age 62, who does not work. She needs current income and wishes to receive payments over the longest time frame possible. You should advise the spouse to:"
Answer:
My best advice for the spouse would be to designate herself as the new account owner, and since she is 62, she can start taking regular distributions from it. Any distributions that she takes will be taxed as ordinary income (the same rule would have applied to the late husband).
Explanation:
If she had her own IRA account (which is doubtful since she doesn't work), she could also roll over her late spouse's balance into her own account.
The wife's third option would be to treat herself as a beneficiary, not the owner or spouse, but that would only complicate things and result in higher costs.
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:
You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $2,800,000 purchase price. The monthly payment on this loan will be $17,000. a. What is the APR on this loan
Answer:
the APR on this loan is 8.68 %.
Explanation:
First determine the nominal rate compounded monthly on this mortgage as follows :
n = 30 × 12 = 360
Pv = $2,800,000 × 80% = $2,240,000
pmt = - $17,000
p/yr = 12
FV = $0
r = ?
Using a Financial Calculator, the nominal rate compounded monthly, r on this mortgage is 8.3588 or 8.36 %.
Then, find the Annual Percentage Rate :
8.36 Shift NOM %
12 Shift P/YR
Shift EFF% 8.68 %
Again using a Financial calculator as above, the APR on this loan will be 8.6879 or 8.68 %
In the top left-hand corner of the screen, under the question number, it says “Part 1 of 2”. This indicates that:
Answer:
This indicates that:
the question continues on the next screen or page.
Explanation:
"Part 1 of 2" is an indication that what the reader or viewer is currently viewing is the first page or screen of the indicated information. This fact implies that there a continuation of the question or information on the next screen or page. If the reader or viewer stops on the part 1 without looking at the part 2, he or she will be omitting some issues, thus, leaving them unattended to.
llowing is selected financial information from General Mills, Inc., for its fiscal year ended May 29, 2011 ($ millions):
Answer:
hello your question is incomplete below is the complete question
Formulating Financial Statements from Raw Data
Following is selected financial information from General Mills, Inc., for its fiscal year ended May 29, 2011 ($ millions):
Revenue $14,880.2
Cash from operating activities 1,526.8
Cash, beginning year 673.2
Stockholders' equity 6,612.2
Non-cash assets 18,054.9
Cash from financing activities* (865.3)
Cost of goods sold 8,926.7
Total expenses (other than cost of goods sold) 4,155.2
Cash, ending year 619.6
Total liabilities 12,062.3
Cash from investing activities (715.1)
*Cash from financing activities includes the effects of foreign exchange rate fluctuations.
(a) Prepare the income statement, the balance sheet, and the statement of cash flows for General Mills for the fiscal year ended May 2011.
Hint: Enter negative numbers only for answers in the statement of cash flows (if applicable).
Explanation:
Attached below are the tables prepared by me showing the income statement for the year ending may 29 2011, Balance sheet ending May 29 2011, statement of cash flows fo year ending May 29 2011
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 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
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
A registered representative conducts a seminar about investing in the meeting room of a local apartment complex. At the end of the talk, he hands out his business card and tells the attendees that if they want additional information, please write their contact information on the reverse side of the business card and return it to him. When he gets back to the office and starts to re-contact some of the attendees who returned the business card, he finds that one of them is blocked because the client name is on the National Do Not Call Registry. Which statement is TRUE
Answer: A. This prospect can be called by the registered representative
Explanation:
The National Do Not Call Registry protects people from being called by telemarketers.
There are however some exceptions to this with one of them being the Prior Express Written Consent Exception.
The client by giving the registered representative their contact number to be able to talk to them, gave written consent and so the registered representative is allowed to call them.
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.
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 sideJoPacks sold 500 backpacks in September. Total variable costs were $7,500, total fixed costs were $10,000, and profit was $4,000. If JP sold 1,000 backpacks, what would their profit be
Answer:
$18,000
Explanation:
Total revenue - total cost = profit
total cost = variable cost + fixed cost
when 500 units were sold
total revenue - ( $10,000 + $7,500) = $4,000.
revenue = $21,500
to determine profit when 1000 units are sold, we have to determine the price and average variable cost
Price = revenue / total unit sold = $21,500 / 500 = $43
Average variable cost = $7,500 / 500 = $15
For 1000 units sold
revenue = price x units sold = 1000 x $43 = $43,000
total variable cost = $15 x 1000 = $15,000
total cost = $15,000 + $10,000 = $25,000
Profit = $43,000 - $25,000 = $18,000