DEBIT: INCOME SUMMARY $52,500 (depreciation expense $25,000 + Salaries expense $23,000 + sales discounts $1,500 + sales and returns an allowances $3,000 = total income of $52,500) Credit sales discounts $1,500, sales returns and allowances $3,000, depreciation expense $25,000 salaries expense $23,000
First Knowledge Check The following account balances are included in the company's adjusted trial balance: Accounts Payable: $10,000; Equipment: $85,000; Accumulated Depreciation: $25,000; Retained Earnings: $63,500; Dividends: $2,000; Sales: $56,000 Sales Allowances and Returns, $3,000 $1,500 in sales discounts, $25,000 in depreciation costs, and $23,000 in salary costs. All accounts are balanced normally. By choosing the account names from the pull-down options and entering dollar amounts in the debit and credit fields, you may prepare the second closing entry. look at the transaction list Worksheet for journal entries The following account balances are included in the company's adjusted trial balance: $15,000 in cash; $85,000 in equipment; $25,000 in accumulated depreciation; $10,000 in accounts payable; and $63,500 in retained earnings. $2,000 in dividends, $56,000 in sales, and $2,000 in sales returns and allowances Note: List debits first, then credits. Dec. 31 Debit Credit General Journal
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Contribution Income Statement and Cost-Volume-Profit Graph Picnic Time produces a picnic basket that is sold for $100 per unit. Assume the company produced and sold 4,000 baskets during July. There were no beginning or ending inventories. Variable and fixed costs follow. Variable Costs per Unit Fixed Costs per Month Manufacturing: Manufacturing overhead $36,000 Direct materials $25 Selling and administrative 68,000 Direct labor 15 Total $104,000 Manufacturing overhead 5 $45 Selling and administrative 4 Total $49
Required
Prepare a contribution income statement for July.
Do not use any negative signs with your answers.
Picnic Time
Contribution Income Statement
For the Month of July
Sales Answer
Less variable costs
Direct materials Answer
Direct labor Answer
Manufacturing overhead Answer
Selling and administrative Answer Answer
Contribution margin Answer
Less fixed cost:
Manufacturing overhead Answer
Selling and administrative Answer Answer
Profit Answer
Answer:
Graph Picnic Time
Contribution Income Statement
For the Month of July
Sales $400,000
Less variable costs:
Direct materials $100,000
Direct labor 60,000
Manufacturing overhead 20,000
Selling and administrative 16,000
Total variable costs $196,000
Contribution margin $204,000
Less fixed cost:
Manufacturing overhead $36,000
Selling and administrative 68,000
Total fixed costs $104,000
Profit $100,000
Explanation:
a) Data and Calculations:
Selling price per picnic basket = $100
July Production and sales = 4,000 baskets
Variable Costs per Unit:
Manufacturing:
Direct materials $25
Direct labor 15
Manufacturing overhead 5
Total $45
Selling and administrative 4
Total $49
Fixed Costs per Month
Manufacturing overhead $36,000
Selling and administrative 68,000
Total $104,000
Contribution Income Statement
For the Month of July
Sales $400,000 ($100 * 4,000)
Less variable costs:
Direct materials $100,000 ($24 * 4,000)
Direct labor 60,000 ($15 * 4,000)
Manufacturing overhead 20,000 ($5 * 4,000)
Selling and administrative 16,000($4 * 4,000)
Total variable costs $196,000
Contribution margin $204,000
Less fixed cost:
Manufacturing overhead $36,000
Selling and administrative 68,000
Total fixed costs $104,000
Profit $100,000
What do we call the value of the next best alternative given up when a choice is made?
A opportunity cost
B sunk cost
C needs
D scarcity
Answer:
A) Opportunity Cost
Explanation:
During its first year of operations, Mack's Plumbing Supply Co. had sales of $580,000, wrote off $9,300 of accounts as uncollectible using the direct write-off method, and reported net income of $63,800. Determine what the net income would have been if the allowance method had been used, and the company estimated that 2.5% of sales would be uncollectible. $ fill in the blank 1
Answer: $58600
Explanation:
The net income that would have been if the allowance method had been used, and the company estimated that 2.5% of sales would be uncollectible will be calculated thus:
= Reported net income + Uncollectible - (Sales × % Uncollectible)
= $63800 + $9300 - ($580000 × 2.5%)
= $63800 + $9300 - $14500
= $58600
g Travis and Jeff own an adventure company called Whitewater Rafting. Due to quality and availability problems, the two entrepreneurs have decided to produce their own rubber rafts. The initial investment in plant and equipment is estimated to be $2,000. Labor and material cost is approximately $5 per raft. Of the rafts can be sold at a price of $10 each, what volume of demand would be necessary to break even
Using the attached sheet (or a spreadsheet if you prefer), prepare a classified balance sheet for the ABC, LLC for the year ended December 31, 2020 using the following data.
Accounts Payable 4,000
Accounts Receivable 3,000
Cash 20,000
Common Stock 1,000
Land 25,000
Notes Payable (due in 5 years) 10,000
Paid in Capital in Excess of Par - Common Stock 17,000
Paid in Capital in Excess of Par - Preferred Stock 2,000
Preferred Stock 8,000
Retained Earnings 7,000
Salaries Payable 5,000
Treasury Stock 6,000
Answer:
ABC, LLC
Classified balance sheet as at December 31, 2020
$
ASSETS
Non - Current Assets
Land 25,000
Total Non - Current Assets 25,000
Current Assets
Accounts Receivable 3,000
Cash 20,000
Total Current Assets 23,000
TOTAL ASSETS 48,000
EQUITY AND LIABILITIES
LIABILITIES
Non - Current Liabilities
Notes Payable (due in 5 years) 10,000
Total Non - Current Liabilities 10,000
Current Liabilities
Accounts Payable 4,000
Salaries Payable 5,000
Total Current Liabilities 9,000
TOTAL LIABILITIES 19000
EQUITY
Common Stock 1,000
Preferred Stock 8,000
Treasury Stock 6,000
Retained Earnings 7,000
Paid in Capital in Excess of Par - Common Stock 17,000
Paid in Capital in Excess of Par - Preferred Stock 2,000
TOTAL EQUITY 41,000
TOTAL EQUITY AND LIABILITIES 60,000
Explanation:
A classified balance sheet shows the Assets, Liability and Equity Balances in their respective categories as shown above.
A wedding party hired a sole proprietorship to cater their wedding, and the sole proprietorship had an employee handle the entire job. If the entire wedding party gets food poisoning, the principal is liable. The employee of the sole proprietorship is also liable because he handled the entire job.
pls dont spam me need halp
Answer:
yes because he was put in charge of the whole operation
Calculate the contribution to total performance from currency, country, and stock selection for the manager in the example below. All exchange rates are expressed as units of foreign currency that can be purchased with 1 U.S. dollar. (Do not round intermediate calculations. Round your answers to 2 decimal places. Input all amounts as positive values.) EAFE Weight Return on Equity Index E1/E0 Manager's Weight Manager's Return Europe 0.6 15 % 1 0.6 12 % Australasia 0.3 16 1.4 0.1 17 Far East 0.1 20 1.2 0.3 17
Answer:
A. Currency selection 4% loss relative to EAFE
B. Country Selection 1.80% loss relative to EAFE
C. Stock Selection -2.6%loss relative to EAFE
Explanation:
Calculation to determine the contribution to total performance from currency, country, and stock selection for the manager in the
A. Calculation for CURRENCY SELECTION
Using this formula
EAFE / Manager weight * Currency appreciation ( E1 / E0 - 1 )
Let plug in the formula
EAFE =[ 0.6 * ( 1 - 1 ) ] + [ 0.3 * ( 1.4 - 1 ) ] + [ 0.1 * ( 1.2- 1 ) ]
EAFE= 0+0.12+0.02
EAFE=14%
Manager =[ 0.6 * ( 1- 1 ) ] + [ 0.1 * ( 1.4 - 1 ) ] + [ 0.3 * ( 1.2- 1 ) ]
Manager=0+0.04+0.06
Manager=10%
Loss relative to EAFE=(10%-14%)
Loss relative to EAFE=4%
4% loss relative to EAFE
B. Calculation for COUNTRY SELECTION
Using this formula
EAFE/ Manager weight × Return on Equity Index
Let plug in the formula
EAFE = [ 0.6 * 15% + 0.3 * 16% + 0.1* 20% ]
EAFE = 0.09+0.048+0.02
EAFE = 15.8%
Manager = [ 0.6 * 12% + 0.1 * 17% + 0.3 * 17% ] Manager =0.072+0.017+0.051
Manager =14%
Loss relative to EAFE=15.8%-14%
Loss relative to EAFE=1.80%
1.80% loss relative to EAFE
C. Calculation for STOCK SELECTION
Using this formula
Stock Selection=( Manager’s return - Return on Equity Index ) × Manager weight
Let plug in the formula
Stock Selection=[ ( 12% - 15% ) * 0.6 ] + [ ( 17% - 16% ) * 0.1 ] + [ ( 17% - 20% ) * 0.3 ]
Stock Selection=-0.018+0.001+-0.009
Stock Selection=-2.6%
-2.6% loss relative to EAFE
Help! Select the qualification that is best demonstrated in each example.
Melanie is a fitness instructor who encourages her students to achieve their goals. ____
1. Ability to handle money
2. Accuracy and attention to detail
3. Leadership skills
4. Organizational skills
Jacob counts and organizes cash at a casino. _____
1. Maintenance of safety
2. Communication skills
3. Teamwork skills
4. Ability to handle money
Adra is proud that she has never had an accident while running a ride at an amusement park. ______
1. Organizational skills
2. Leadership skills
3. Ability to operate equipment safety
4. Communication skills
Juan plans fun activities for groups of people. _____
1. Communication skills
2. Accuracy
3. Teamwork skills
4. Organizational
Answer:
What ghazaryanelen101 Said ↑↑↑↑
Explanation:
Following are data for BioBeans and GreenKale, which sell organic produce and are of similar size. BioBeans GreenKale Average total assets $ 215,000 $ 166,500 Net sales 105,000 33,300 Net income 15,050 3,900 Required: 1a. Compute the profit margin for both companies. 1b. Compute the return on total assets for both companies. 2. Based on analysis of these two measures, which company is the preferred investment
Answer:
1a. We have:
BioBeans' profit margin = 14.33%
GreenKale's profit margin = 11.71%
1b. We have:
BioBeans' return on total assets = 7%
GreenKale's return on total assets = 2.34%
2. BioBeans is the preferred investment.
Explanation:
1a. Compute the profit margin for both companies.
Profit margin = Net income / Net sales ........... (1)
Using equation (1), we have:
BioBeans' profit margin = $15,050 / $105,000 = 0.1433, or 14.33%
GreenKale's profit margin = $3,900 / $33,300 = 0.1171, or 11.71%
1b. Compute the return on total assets for both companies.
Return on total assets = Net income / Average total assets ............ (2)
Using equation (1), we have:
BioBeans' return on total assets = $15,050 / $215,000 = 0.07, or 7%
GreenKale's return on total assets = $3,900 / $166,500 = 0.0234, or 2.34%
2. Based on analysis of these two measures, which company is the preferred investment?
Since the profit margin and return on total assets of BioBeans are greater than the profit margin and return on total assets of GreenKale, this indicates that BioBeans is the preferred investment.
Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer. Determine Ken’s gross income and complete page 1 of Form 1040 for Ken.
a. Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal).
b. Ken sold 1,000 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share.
c. Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $210,000.
d. Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year.
e. Ken resided in Ireland from July 1, 2011, through June 30, 2012, visiting relatives. While he was there he earned $35,000 working in his cousin’s pub. He was paid $17,000 for his services in 2011 and $18,000 for his services in 2012. Assume Ken elects to use the foreign-earned income exclusion to the extent he is eligible.
f. Ken decided to go back to school to learn about European history. He received a $500 cash scholarship to attend. He used $300 to pay for his books and tuition, and he applied the rest toward his new car payment.
g. Ken’s son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken. Ken received the check on December 30 in the amount of $1,100.
h. Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken claimed $5,850 in itemized deductions last year (the standard deduction for a single filer was 5,800).
i. Ken received $30,000 of interest from corporate bonds and money market accounts.
Answer:
bru is ken that ugly?
Explanation:
poor loner he must have been so ugly
An economy is in long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs: a. A stock market boom increases the value of stocks held by households. b. Firms come to believe that a recession is likely in the near future. c. Anticipating the possibility of war, the government increases its purchases of military equipment. d. The quantity of money in the economy declines, and interest rates increase.
Answer:
Following are the solution to these question:
Explanation:
In point a:
The population feels wealthier and seems to be socially secure. This will boost consumption, moving AD to the correct. There is a difference in deflation. Govt must adopt a discretionary monetary policy to fight deflation, that will change AD left.
In point b:
Expenditure has been decreased to increasing jobs or costs. Disinflationary distance exists. To improve DA (shift rectors) and restore full job production, Govt must pursue the expansionary monetary policy.
In point c:
It will once again raise NPA because part A contributes to even more competition with higher public expenditure. The deflation divide is that there is. That alternative is an expansionary tax reform to move to the left.
In point d:
The rise in interest rates declines expenditure and, as part B, reduces AD. The deflationary difference remains. Government must use expansionary monetary policy to fight it, moving AD to a correct.
Bismark Inc, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year:
Activity Cost Pool Activity Cost Activity Cost Driver
Machine Setup $600,000 15,000 setup hours
Material handling 90,000 3,000 tons of materials
Machine operation 420,000 12,000 machine hours
The following data are for the production of single batches of two products, Camshafts and Swing Drives during the month of August:
Camshafts Swing Drives
Units produced 1,500 900
Machine hours 4 5
Direct labor hours 300 500
Direct labor cost $7,000 $12,000
Direct materials cost $40,000 $30,000
Tons of materials 10 7
Setup hours 5 8
Determine the unit costs of Camshafts and Swing Drives using ABC. Round answers to the nearest cent.
Camshafts $ _____
Swing Drives $_____
Answer:
Results are below.
Explanation:
First, we need to calculate the activities rates:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine Setup= 600,000 / 15,000= $40 per setup hour
Material handling= 90,000 / 3,000= $30 per ton of material
Machine operation= 420,000 / 12,000= $35 per machine hour
Now, we can allocate costs to each product:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Camshafts:
Machine Setup= 40*5= $200
Material handling= 30*10= $300
Machine operation= 35*4= $140
Total allocated costs= $640
Swing Drives:
Machine Setup= 40*8= $320
Material handling= 30*7= $210
Machine operation= 35*5= $175
Total allocated costs= $705
Finally, the unitary cost:
Camshafts:
Total cost= 40,000 + 7,000 + 640= $47,640
Unitary cost= 47,640 / 1,500= $31.76
Swing Drives:
Total cost= 30,000 + 12,000 + 705= $42,705
Unitary cost= 42,705 / 900= $47.45
Teozocior.01.010
o
.
Which of the following is true of downward communication?
a. Recording a project's results and accomplishments involves downward communication.
..
O b. The process of creating progress reports is an example of downward communication.
5.
c. Problem solving and clarifications in organizations involve downward communication.
7.
d. Orientation to a company's rules and practices is an element of downward communication.
8.
о
9.
10.
C
11.
Answer:
When the federal government spends more money than it receives in taxes in a ... spending over time in nominal dollars is misleading because it does not take ... defense spending as a share of GDP has generally declined since the 1960s, ... Healthcare expenditures include both payments for senior citizens (Medicare), ...
Explanation:
A small factory is considering replacing its existing coining press with a newer, more efficient one. The existing press was purchased three years ago at a cost of $200000, and it is being depreciated according to a 7-year MACRS depreciation schedule. The factoryâs CFO estimates that the existing press has 6 years of useful life remaining. The purchase price for the new press is $280000. The installation of the new press would cost an additional $20000, and this installation cost would be added to the depreciable base. The new press (if purchased) would be depreciated using the 7-year MACRS depreciation schedule although, as noted below, it would be retired/sold after 6 years. Interest expenses associated with the purchase of the new press are estimated to be roughly $4000 per year for the next 6 years.
The appeal of the new press is that it is estimated to produce a pre-tax operating cost savings of $81000 per year for the next 6 years. Also, if the new press is purchased, the old press can be sold for $30000 today. The CFO believes that the new press would be sold for $45000 at the end of its 6-year useful life. Assume that NWC would not be affected. The company has an average tax rate of 29% and a marginal tax rate of 34%. The cost of capital (i.e., the discount rate) for this project is 8.5%.
Required:
Develop the incremental cash flows for this replacement decision and use them to calculate NPV and IRR. Next, make a conclusion about whether or not the existing coining press should be replaced at this time.
Answer:
1. Incremental Cash Flows:
Cash Flows Total PV of annual
Cash Flows
After-tax operating savings $57,510 $261,877
Sale proceeds from old press 30,000 30,000
Sale proceeds from new press 45,000 27,583
Total incremental cash inflows $132,510 $319,460
Cost of new press $280,000 $280,000
Installation cost of new press 20,000 20,000
Interest expense (associated) 4,000 18,214
Total incremental cash outflows $340,000 $318,214
2. NPV $1,246 ($319,460 -$318,214)
IRR = the cost of capital that will cause the NPV to be zero. Since it is $1,246, to find the rate, that makes it zero, we do the following calculations:
$1,246/$318,214 * 100 = 0.4%
Cost of capital = 8.5%
3. IRR = 8.5 - 0.4 = 8.1%
4. Conclusion: The existing press should be replaced at this time.
Explanation:
a) Data and Calculations:
Cost of old press = $200,000
Estimated useful life remaining = 6 years
Cost of new press = $280,000
Installation cost = $20,000
Total cost of new press $300,000
Interest expenses per year for the new press = $4,000
Cost Savings from new press:
Pre-tax operating cost savings = $81,000 per year
After-tax savings = $57,510 ($81,000 * (1 - 29%))
Sales proceeds from old press = $30,000 today
Sale proceeds from new press = $45,000 (at the end of its 6-year life)
Average tax rate = 29%
Marginal tax rate = 34%
Cost of capital = 8.5%
Understanding how shirking decreases team output
Eleanor sells bottled water from a small stand by the beach. On the last day of summer vacation, many people are on the beach, and Eleanor realizes that she can make a lot more money this day if she hires someone to walk up and down the beach selling water. She finds a college student named Darnell and makes him the following offer: They'll each sell water all day and split their earnings (revenue minus the cost of water) equally at the end of the day. Eleanor knows that if they both work hard, Darnell will earn $110 on the beach and Eleanor will earn $240 at her stand, so they will each take home half of their total revenue: $110+$2402=$175$110+$2402=$175. If Darnell shirks, he'll generate only $60 in earnings. Eleanor does not know that Darnell estimates his personal cost (or disutility) of working hard as opposed to shirking at $30.
Once out of Eleanor's sight, Darnell faces a dilemma: work hard (put in full effort) or shirk (put in low effort).
In terms of Darnell's total utility, it is worse for him to_____ .
Taking into account the loss in utility that working hard brings to Darnell, Eleanor and Darnell together _____ better off if Darnell shirks instead of working hard.
Eleanor knows Darnell will shirk if unsupervised. She considers hiring her good friend Carrie to keep an eye on Darnell. The most Eleanor should be willing to pay Carrie to supervise Darnell, assuming supervision is sufficient to encourage Darnell to work hard, is _______ .
It turns out that Eleanor's friend Carrue is unavilable that day, so Eleanor cannot find a reliable person to watch Darnell. Which of the following arrangements will ensure that Darnell works hard without making Eleanor any worse off than she is when Darnell shirks?
A. Allow Darnell to keep 75% of the revenue from the bottles of water he sells instead of 50%
B. Allow Darnell to keep 57% of the revenue from the bottles of water he sells instead of 50%
C. Pay Darnell $70, regardless of how many bottles of water he sells
D. Make Darnell promise to work hard
Answer:
Shirk
are not better of
$30
A. Allow Darnell to keep 75% of the revenue from the bottles of water he sells instead of 50%
Explanation:
Darnell and Eleanor both can work together and their combined total earning will be high. Darnell estimates that his shirking is cost at $30 then Eleanor can pay to supervisor a maximum of $30 for the supervision service for Darnell. The best choice is to hire Carrue as a supervisor for Darnell. If Carrue is not available someday then Darnell can be motivated by allowing him to keep 75% of the revenue generated from him.
Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below:
Overhead costs:
Equipment depreciation $ 47,000
Supervisory expense $ 6,000
Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools
Machining Order Filling Other
Equipment depreciation 0.60 0.10 0.30
Supervisory expense 0.60 0.20 0.20
In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:
Activity:
MHs (Machining) Orders (Order Filling)
Product C9 6,900 200
Product U0 3,100 800
Total 10,000 1,000
What is the overhead cost assigned to Product C9 under activity-based costing?
Answer:
$23,122
Explanation:
Calculation to determine the overhead cost assigned to Product C9 under activity-based costing
First step is to calculate the cost allocation to machining activity and order filling
MACHINING
Equipment depreciation (0.60 : 0.10 : 0.30)
Machining=$47,000 x 0.60 = $28,200
Supervisory expense (0.60 : 0.20 : 0.20) Machining=$6,000 x 0.60 = $3600
Total $31,800
($28,200+$3,600)
ORDER FILLING
Equipment depreciation (0.60 : 0.10 : 0.30)
Order filling=$47,000 x 0.10 = $4,700
Supervisory expense (0.60 : 0.20 : 0.20)
Order filling=$6000 x 0.20 = $1,200
Total $5,900
($4,700+$1,200)
Second step is to calculate the Assign overhead costs to products:
Assign overhead costs to products:
Machining= $31,800 ÷ 10,000 MHs
Machining= $3.18 per MHOrder
Order Filling=$5,900 ÷ 1,000 orders
Order Filling = $5.90 per order
Now let calculate the Overhead cost for Product C9
Machining= $3.18 per MH × 6,900
Machining=$21,942
Order Filling= $5.90 per order × 200 Orders Order Filling=$1,180
TOTAL $23,122
($21,942+$1,180)
Therefore the overhead cost assigned to Product C9 under activity-based costing is $23,122
g An airline is considering a project of replacement and upgrading of machinery that would improve efficiency. The new machinery costs $400 today and is expected to last for 5 years with no salvage value. Straight line depreciation will be used. Project inflows connected with the new machinery will begin in one year and are expected to be $200 each year for 5 consecutive years and project outflows will also begin in one year and are expected to be $90 each year for 5 consecutive years. The corporate tax rate is 32% and the required rate of return is 9%. Calculate the project's net present value.
Answer:
$-9.48
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
Cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
(400 - 0) / 5 = 80
(200 - 90- 80) x (1 - 0.32) + 80 = $100.40
Cash flow in year 0 = $-400
Cash flow each year from year 1 to 5 = $100.40
I = 9%
NPV = $-9.48
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
You are a struggling song writer. You hear a group on the radio singing a song
that you wrote with a friend who is now managing the band. You want to
make sure you are not cheated out of your creative work. You have tried to
talk to the band but they won't respond. What writ would effectively stop the
band from earning income on that song until the problem is remedied?
A. Punitive damages
B. A restraining order
C. A permanent injunction
D. A mandatory injunction
Answer:
B. A retraining order i guess
What is a factor that does NOT go into an economic analysis?
1. marginal analysis
2. societal concerns
3 ethical concerns
4 sunk costs
The CEO is considering your recommendations, and it will take time to make some of these changes. However, you know that it's not just the structure of the department that is stifling creativity. You believe that the culture could be significantly improved, and you want to start working on these issues ASAP. It will be a slow process to make some of these changes, but the time to get started is now. You have a lot of ideas, but only a few should be implemented initially. Which three do you think should be started immediately
Explanation:
1- Hire an organizational consultancy specialized in diagnostics and solutions to improve the organizational culture, as an external view can be beneficial to perceive the organization free of bias.
2- Planning of the teams' routine and better redesign and definition of the functions of each employee, seeking greater integration and personal satisfaction with the work, which increases productivity and the valorization of the work.
3- Implementing changes in the way of communicating with the teams and providing feedback, clear and objective communication is essential for there to be a correct understanding of what is expected of each team and how to carry out the tasks to achieve the organizational objectives and goals.
Suppose that applying for membership in the European Monetary Union (EMU) is expensive, so three hypothetical countries, Baltia, Polsha, and Atlantida, have come to you with their relevant data and want advice on if they should apply to join the EMU. Suppose that the average inflation rate of the three European countries with the lowest inflation rates is 3.0%, and the average long-term interest rate of those countries is 3.2%.
Evaluate the characteristics of Baltia, Polsha, and Atlantida presented in the following table using the Maastricht convergence criteria. Then, complete the bottom row by identifying whether each country is eligible to become an EMU member.
Criteria Baltia Polsha Atlantida
Inflation 4.5% 4.0% 4.1%
Long-term interest rates 5.0% 4.0% 3.0%
Exchange rates Last devaluated three years ago Stable Stable
Budget deficit 2.4% of GDP 3% of GDP 2.1% of GDP
Debt outstanding 45% of GDP 45% of GDP 46% of GDP
Qualifies to enter the EMU ? ? ?
Answer:
European Monetary Union Membership
All three countries are eligible to enter into the European Monetary Union, having met all the Maastricht convergence criteria.
Note that Baltia devalued its currency in the last three years and not two as set by the exchange rate criterion.
Explanation:
a) Maastricht convergence criteria are:
1. Price stability: the inflation rate not more than 1.5 point of average best three.
2. Deficit not more than 3% of GDP.
3. Government debt must not exceed 60% of GDP.
4. Exchange rate: No currency devaluation in last two years.
5. Long-term interest rates: not more than 2% higher than those of the three best performing Member states in terms of price stability.
b) The Maastricht Convergence Criteria Performances:
Criteria Baltia Polsha Atlantida
Inflation 4.5% 4.0% 4.1%
Long-term interest rates 5.0% 4.0% 3.0%
Exchange rates Last devalued Stable Stable
3 years ago
Budget deficit 2.4% of GDP 3% of GDP 2.1% of GDP
Debt outstanding 45% of GDP 45% of GDP 46% of GDP
Qualifies to enter
the EMU ? ? ?
c) The Maastricht Convergence Criteria Matching:
Criteria Baltia Polsha Atlantida Decision
Inflation 4.5% 4.0% 4.1%
Lowest EU inflation rates 3.0% 3.0% 3.0%
Difference 1.5 1.0 1.1 Met
Maastricht criteria 1.5 1.5 1.5
Long-term interest rates 5.0% 4.0% 3.0%
Highest EU rates 3.2% 3.2% 3.2%
Difference 1.8 0.8 -0.2 Met
Maastricht criteria 2% 2% 2%
Exchange rates Last devalued Stable Stable Met
3 years ago
Budget deficit 2.4% of GDP 3% of GDP 2.1% of GDP
Maastricht criteria 3% of GDP 3% of GDP 3% of GDP Met
Debt outstanding 45% of GDP 45% of GDP 46% of GDP
Maastricht criteria 60% of GDP 60% of GDP 60% of GDP Met
Qualifies to enter
the EMU YES YES YES
You have your choice of two investment accounts. Investment A is a 6-year annuity that features end-of-month $1,980 payments and has an interest rate of 7 percent compounded monthly. Investment B is an annually compounded lump-sum investment with an interest rate of 9 percent, also good for 6 years.
How much money would you need to invest in B today for it to be worth as much as Investment A 6 years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
$112,166
Explanation:
the future value of Investment A:
payment = $1,980
n = 6 x 12 = 72
i = 9% / 12 = 0.75%
FVIFA = [(1 + i)ⁿ- 1 ] / i = [(1 + 0.0075)⁷² - 1 ] / 0.0075 = 95.007
future value = $1,980 x 95.007 = $188,114
now we need to determine the PV of investment B:
PV = $188,114 / (1 + 9%)⁶ = $112,166
Answer: $105,264.24
Explanation:
Step 1) Calculate Future Value of Investment A
Rate: .07/12 = .58%
Payment: $1,980
Term: 72 (6 years * 12 months)
Future Value: ?
In excel -> FV(.58,72,-1980,0)
Future Value = $176,538.67
Step 2) Calculate Present Value of Investment B using Investment A Future Value
Rate: .09
Payment: $0
Term: 6
Future Value: $176,538.67 (from step 1)
PV(.09,6,0,-176538.67)
Present Value = $105,264.24
Thats your answer!! ^^^^^
You can also use the formula or calculator, but I've found excel is the easiest/fastest.
Cheers!
On January 1, 2018, Alamar Corporation acquired a 39 percent interest in Burks, Inc., for $228,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $327,000. During 2018, Burks reported net income of $79,000 and declared and paid cash dividends of $29,000. Alamar sold inventory costing $26,000 to Burks during 2018 for $42,000. Burks used all of this merchandise in its operations during 2018. Prepare all of Alamar's 2018 journal entries to apply the equity method to this investment.
Answer:
Date Account Title Debit Credit
Jan 1, 2018 Investment in Burks, Inc $228,000
Cash $228,000
Date Account Title Debit Credit
Dec. 31, 2018 Investment in Burks, Inc $30,180
Revenue from investment $30,180
Working:
= Net income of Burks * Ownership percentage
= 79,000 * 39%
= $30,180
Date Account Title Debit Credit
Dec. 31, 2018 Dividend receivable $11,310
Investment in Burks, Inc $11,310
Working
= Dividends declared * Ownership percentage
= 29,000 * 39%
= $11,310
Date Account Title Debit Credit
Jan 1, 2018 Cash $11,310
Dividend Receivable $11,310
if your credit card is $10,275 and you pay the full balance before the bill is due, how much will you pay in interest
Answer:
you do not pay interest on any money that does not carry over till the next month. if your balance is zero theres no interest
Explanation:
you only pay on a balance the % per dollar to the card . so if the card charges 10% on 100$ if your balance is 100$ you will owe 110$ on your next billing cycle
Consumers know that some fraction x of all new cars produced and sold in the market are defective. The defective ones cannot be identified except by those who own them. Cars do not depreciate with use. Consumers are risk-neutral and value nondefective cars at $10,000 each. New cars sell for $5,000 and used ones for $2,500. What is the fraction x
Answer:
x = 2/3
Explanation:
From the question, we have:
Probability of a defective car = x
Probability of a nondefective car = 1 - x
Value of defective car = Price of used cars = $2,500
Value of a nondefective car = $10,000
Expected value = Price of a new car = $5,000
The formula for calculating the expected value is given as follows:
Expected value = (Probability of a defective car * Value of defective car) + (Probability of a nondefective car * Value of a nondefective car) .......... (1)
Substituting all the relevant values into equation (1) and solve for x, we have:
$5,000 = (x * $2500) + (1 - x)$10,000
5,000 = 2500x + 10,000 - 10,000x
5000 - 10000 = 2500x - 10000x
-5000 = - 7500x
x = -5000 / - 7500
x = 2/3
The following is the inventory record of widgets for the ABC Company: Units Cost/Unit 1/1 Beginning Inventory 100 $ 10.00 4/15 Purchase 200 $ 11.00 8/24 Purchase 300 $ 12.00 11/27 Purchase 400 $ 13.00
At the end of the fiscal year, the physical inventory found 450 widgets on hand at 12/31. Total sales for the year were 500 widgets
REQUIRED:
a) Calculate the ending inventory value under each of the following inventory methods:
i. FIFO
ii. LIFO
iii. Weighted Average
b) Calculate the gross profit for each of the inventory methods.
Answer:
a-i. Ending inventory = $5,800
a-ii. Ending inventory = $5,000
a-iii. Ending inventory = $5,400
b-i. Gross profit = $3,800
b-ii. Gross profit = $3,000
b-iii. Gross profit = $3,400
Explanation:
Note: This question is not complete as the sentence for the Total sales is not complete. The complete sentence of the Total sales is therefore provided before answering the question as follows:
Total sales for the year were 500 widgets sold at a retail price of $20.00 per widget.
The explanation of the answers is now provided as follows:
a) Calculate the ending inventory value under each of the following inventory methods
Ending units of inventory = 450
Therefore, we have:
a-i. Calculate the ending inventory value under first in first out (FIFO) inventory method
Ending inventory = Cost of 400 units purchased on 11/27 + Cost 50 units from 300 units purchased on 8/24 = (400 * $13) + (50 *$12) = $5,800
a-ii. Calculate the ending inventory value under Last in first out (LIFO) inventory method
Ending inventory = Cost of 100 units Beginning Inventory on 1/1 + Cost of 200 units purchased on 4/15+ Cost 150 units from 300 units purchased on 8/24 = (100 * $10) + (200 * $11) + (150 * $12) = $5,000
a-iii. Calculate the ending inventory value under Weighted Average inventory method
Cost of goods available for sale = (100 * $10) + (200 * $11) + (300 * $12) + (400 * $13) = $12,000
Units available for sale = 100 + 200 + 300 + 400 = 1,000
Weighted Average cost per unit = Cost of goods available for sale / Total units available for sale = $12,000 / 1,000 = $12
Ending inventory = Ending units of inventory * Weighted Average cost per unit = 450 * $12 = $5,400
b) Calculate the gross profit for each of the inventory methods.
Units of inventory sold = 500
Retail price per widget or unit = $20.00
Sales revenue = Units of inventory sold * Retail price per widget or unit = 500 * $20.00 = $10,000
Cost of goods available for sale = (100 * $10) + (200 * $11) + (300 * $12) + (400 * $13) = $12,000
Therefore, we have:
b-i. Calculate the gross profit under first in first out (FIFO) inventory method
Ending inventory = $5,800
Cost of goods sold = Cost of goods available for sale - Ending inventory = $12,000 - $5,800 = $6,200
Gross profit = Sales revenue – Cost of goods sold = $10,000 - $6,200 = $3,800
b-ii. Calculate the gross profit under last in first out (LIFO) inventory method
Ending inventory = $5,000
Cost of goods sold = Cost of goods available for sale - Ending inventory = $12,000 - $5,000 = $7,000
Gross profit = Sales revenue – Cost of goods sold = $10,000 - $7,000 = $3,000
b-iii. Calculate the gross profit under Weighted Average inventory method
Ending inventory = $5,400
Cost of goods sold = Cost of goods available for sale - Ending inventory = $12,000 - $5,400 = $6,600
Gross profit = Sales revenue – Cost of goods sold = $10,000 - $6,600 = $3,400
Russell Retail Group begins the year with inventory of $65,000 and ends the year with inventory of $55,000. During the year, the company has four purchases for the following amounts. Purchase on February 17 $ 220,000 Purchase on May 6 140,000 Purchase on September 8 170,000 Purchase on December 4 420,000 Required: Calculate cost of goods sold for the year.
Answer:
COGS= $960,000
Explanation:
Giving the following information:
Beginning inventroy= $65,000
Ending inventory= $55,000
Total Purchase= 220,000 + 140,000 + 170,000+ 420,000= $950,000
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning inventory + cost of goods purchased - ending inventory
COGS= 65,000 + 950,000 - 55,000
COGS= $960,000
They could increase Marco's motivation by:
A- Giving Marco the job title "Director of Strength and Conditioning"
B- Confirming that if more clients sign up with Marco, he'll get a bonus at the end of the year
C- Telling Marco he has more expertise than any other trainer at the gym
D- Reviewing fitness data on Marco's clients that show his work has been improving their health
Answer:
B
Explanation:
moneys always good motivation
A market will be efficient even if there is imperfect information as long as the market is competitive.
a. True
b. False
Baiman, Inc. issues $1,000,000 of zero-coupon bonds that mature in 10 years. Compute the bond issue price assuming that the bonds' market rate is:
a. 10% per year compounded semiannually.
Round your answers to the nearest dollar.
Answer:
Zero-cupon bond= $376,889.48
Explanation:
Giving the following formula:
Face value= $1,000,000
Mature= 10*2= 20 semesters
Market rate= 0.1/2= 0.05
To calculate the price of the bond, we need to use the following formula:
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,000,000 / (1.05^20)]
Zero-cupon bond= $376,889.48