Answer:
The four factors within the general environment of Jess-ops Group Limited are macroeconomic factor, technological factor, regulatory factor, and social factor.
Explanation:
The general environment can be described as the larger environment in which the company operate.
The four factors within the general environment of Jess-ops Group Limited are macroeconomic factor, technological factor, regulatory factor, and social factor.
Note: These factors are explained in the attached file as there was a difficulty in submitting the explanation here.
Piper's Pizza sold baking equipment for $25,000. The equipment was originally purchased for $72,000, and depreciation through the date of sale totaled $51,000. What was the gain or loss on the sale of the equipment
Answer:
The gain on disposal is of $4000
Explanation:
To calculate the gain or loss on disposal, we first need to calculate the Carrying value, also known as the Net Book Value, of the asset at the time of sale. The Carrying value is calculated using the following formula,
Carrying Value or NBV = Cost - Accumulated depreciation
Carrying Value or NBV = 72000 - 51000
Carrying Value or NBV = $21000
If the asset is sold for more than its carrying value, there is a gain on disposal. If it is sold for less than its carrying value, there is a loss on disposal.
As the asset was sold for $25000 which is more than its carrying value of $21000, there is a gain on disposal.
Gain on disposal = 25000 - 21000 = $4000 Gain
For the item below, determine whether the amount would be disclosed in the cash flow statement under: Operating (CFO), Investing (CFI), or Financing (CFF), as well as if would be a net increase (+) or decrease (-) in cash or cash equivalents:
A. Principal payments on long-term borrowings
B. Decrease in accounts receivable
C. Proceeds from long-term borrowings
D. Increase in deferred income tax net liability
E. Net earnings
F. Increase in prepaid expenses
G. Increase in merchandise inventories
H. Cash dividends paid
I. Proceeds from issuance of common stock
J. Increase in accrued salaries, wages, and related benefits
K. Payments for repurchase of common stock
L. Capital Expenditures
M. Increase in accounts payable
N. Depreciation and amortization expenses
Answer:
Explanation:
Operating Cashflows have to do with the transactions dealing with the day to day activities of the business including calculations of net income and revenue and expenses.
Investing Cashflow has to do with the transactions involving fixed assets such as Property, Land and Equipment since these are Capital Expenditure. Also included are stock ownership and bond holding of other entities.
Financing Cashflows refer to transactions relating to the provision of capital for the business through loans or Equity.
A. Principal payments on long-term borrowings.
FINANCING - decrease (-)
This is a financing transaction that deals with long term loans. It will decrease the cash or cash equivalents held.
B. Decrease in accounts receivable.
OPERATING - Increase +
This is an operating cashflow and it is an increase because Receivables reduce when they pay the business so cash increases.
C. Proceeds from long-term borrowings.
FINANCING - Increase +
This is a financing activity and the increase is due to money from Issuing Bonds or borrowing money coming into the business.
D. Increase in deferred income tax net liability.
OPERATING - Increase +
By reducing the amount that we pay in tax that means that less cash has been paid which also means that more cash is kept in the business which increases the Cash balance.
E. Net earnings.
OPERATING - Increase +
So long as the Net Earnings are positive, they go to the Operating Section and increase the amount of cash and cash equivalents.
F. Increase in prepaid expenses.
OPERATING - Decrease -
By increasing the amount of prepaid expenses, this means that the company used money to pay for expenses it hasn't incurred yet which reduces the cash in hand.
G. Increase in merchandise inventories.
OPERATING - Decrease -
By buying more Inventory, more cash was spent and this therefore reduces the cash and cash equivalents balance.
H. Cash dividends paid.
FINANCING - Decrease -
Dividends relate to equity and Equity is a Financing Cashflow Transaction. Paying Dividends means giving out cash so it reduces the cash and cash equivalents balance.
I. Proceeds from issuance of common stock.
FINANCING - Increase
Similar to proceeds from long term borrowings, Equity is a Financing activity as it finds the business, the proceeds received from here increase the cash and cash equivalents balance.
J. Increase in accrued salaries, wages, and related benefits.
OPERATING - Increase +
These are Operating Cashflow transactions and by withholding them, the business does not spend cash on them. That cash that was not paid is an increase to the cash and cash equivalents balance.
K. Payments for repurchase of common stock.
FINANCING - Decrease -
By repurchasing stock which is an Equity transaction, this goes to the Financing Section. The cash spent to repurchase the stock reduces the amount of cash and cash equivalents on hand.
L. Capital Expenditures.
INVESTING - Decrease -
By buying capital items or spending on Capital Investments, the company makes an investment and as such this goes to the Investment Section. The expenses are a reduction on cash.
M. Increase in accounts payable.
OPERATING - Increase +
Accounts Payable are an Operating Activity and when they are increased that means that the company paid less cash and bought more things on credit. That cash that wasn't paid is an increase in the cash balance.
N. Depreciation and amortization expenses.
OPERATING - Increase +
By including depreciation and amortization in the operating cashflow, these increase the Cashflow because they are non cash items. Even though they are recorded, no physical cash actually flows to them. This cash that was supposed to flow to them is in increase.
Quality Move Company made the following expenditures on one of its delivery trucks: Mar. 20. Replaced the transmission at a cost of $5,430. June 11. Paid $1,705 for installation of a hydraulic lift. Nov. 30. Paid $41 to change the oil and air filter. Prepare the journal entries for each expenditure.
Answer:
The journal entries for each expenditure would be as follows:
Debit ($) Credit ($)
Mar. 20
Delivery Truck 5,430
Cash 5,430
June. 11
Delivery Truck 1,705
Cash 1,705
Nov. 30
Repairs and Maintenance Expense 41
Cash 41
Explanation:
According to the given data, the journal entries for each expenditure would be as follows:
Debit ($) Credit ($)
Mar. 20
Delivery Truck 5,430
Cash 5,430
(To record the replacement of transmission at a cost of $5,430 and capitalizingthe transmission cost)
June. 11
Delivery Truck 1,705
Cash 1,705
(To record the installation of hydraulic lift and capitalization of installation expenses)
Nov. 30
Repairs and Maintenance Expense 41
Cash 41
(To record the payment for changing the oil and air filter)
an investment that in today's dollars returns 12% of your investment in year 1, 18% in year 2, 11% in year 3, and the remainder in year 4. Rounded to two places, what is the Duration of this investment
Answer:
3.17 years
Explanation:
We can calculate the duration of Investment by duration formula,
Duration= Sum of (PV of each cashflow x year)
PV of each cash flow can be understood as Dolar return % given in the Question.
Year1 Year2 Year3 Year4
Duration= (12% x 1) + (18% x 2) + (11% x 3) + (59% x 4)
Duration= 0.12 + 0.36 + 0.33 + 2.36
Duration= 3.17 years
Note: (100%-12%-18%-11%)59% can be calculated as the remainder of 100% after deducting each year's %.
Rebecca Reyher wrote (and copyrighted) a children’s book entitled My Mother Is the Most Beautiful Woman in the World. The story was based on a Russian folktale told to her by her own mother. Years later, the children’s TV show Sesame Street televised a skit entitled "The Most Beautiful Woman in the World." The Sesame Street version took place in a different locale and had fewer frills, but the sequence of events in both stories was identical. Has Sesame Street infringed Reyher’s copyright?
Answer:
The correct answer is: Initially, yes it did violated the law. But it depends.
Explanation:
To begin with, we need to understand that when it comes to the law of copyright the consequences of violating it depends on the particulary situation that the parties shared. Therefore that initially, Sesame Street would have violated the copyright law if they did not establish a contract that can allow them to use that story. However again, if in a first place the Reyher violated the law then Sesame Street will be out of charges becuase the first violation was caused by the writter and in other case it could also be seen as therewas no violation due to the fact that is a russian folktale and those stories have no copyright.
Revising for Conciseness - Rejecting Redundancies and PurgingEmpty Words
Concise writing will save your reader time and make your message easier to understand. During phase three of the 3-x-3 writing process, revise for conciseness by rejecting redundancies and purging empty words.
Which of the following options are redundancies?
1) Adequate enough
2) Combined together
3) Big in size
4) Absolutely essential
Determine which empty words can be purged from the following sentence to make it more concise.
Answer: A. 1) Adequate enough
2) Combined together
3) Big in size
4) Absolutely essential
b. 3) “That was unfinished”
Explanation:
A. Redundancies in phrases refer to the repetition of words with the same or similar meanings which gives off the impression of saying the same things twice. All the options listed are therefore redundancies.
By saying something is Adequate which means that it is sufficient for something one does not again need to include enough because it is the same as sufficient as well.
By also saying Combined, one has already inferred that something was brought together. Including together again is redundant because the together is already in the definition of combined.
Big in size is another redundancy because when a person describes something as Big, they are already referring to the size of the thing in question. Adding in size is therefore not needed.
Finally, the Absolutely in the phrase makes the phrase redundant. When something is said to be essential it means that it is absolutely needed or crucial. To say something is Absolutely Essentially is like saying something is an Essential Essential.
B. The Johnson report had already been said to contain incomplete data. To go on to say that the data is Unfinished is a redundancy because by saying that it is incomplete it means that the data is by definition Unfinished. Removing the “That was unfinished” bit fixes the sentence.
List five goods that are likely to be sold in a monopolistically.competitive market.
Answer:
Cars
Toothpaste
Toilet paper
Hairspray
Televisions
Maquoketa Services was formed on May 1, 2017. The following transactions took place during the first month.
Transactions on May 1:
1. Jay BradFord invested $40,000 cash in the company, as its sole owner.
2. Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month.
3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.
4. Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.
5. Paid $1,800 cash for a one-year insurance policy on the furniture and equipment.
Transactions during the remainder of the month:
6. Purchased basic office supplies for $420 cash.
7. Purchased more office supplies for $1,500 on account.
8. Total revenues earned were $20,000—$8,000 cash and $12,000 on account.
9. Paid $400 to suppliers for accounts payable due.
10. Received $3,000 from customers in payment of accounts receivable.
11. Received utility bills in the amount of $380, to be paid next month.
12. Paid the monthly salaries of the two employees, totaling $6,100.
Prepare journal entries to record each of the events listed. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
1. Jay BradFord invested $40,000 cash in the company, as its sole owner.
Account Debit Credit
Cash $40,000
Capital $40,000
2. Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month.
Account Debit Credit
Wage Expense $3,050
Wages Payable $3,050
3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.
Account Debit Credit
Prepaid Rent $24,000
Cash $24,000
4. Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.
Account Debit Credit
Furniture and Equipment $30,000
Cash $10,000
Accounts Payable $10,000
5. Paid $1,800 cash for a one-year insurance policy on the furniture and equipment.
Account Debit Credit
Prepaid Insurance $1,800
Cash $1,800
6. Purchased basic office supplies for $420 cash.
Account Debit Credit
Office supplies $420
Cash $420
7. Purchased more office supplies for $1,500 on account.
Account Debit Credit
Supplies $1,500
Accounts Payable $1,500
8. Total revenues earned were $20,000—$8,000 cash and $12,000 on account.
Account Debit Credit
Revenue $20,000
Cash $8,000
Accounts Receivable $12,000
9. Paid $400 to suppliers for accounts payable due.
Account Debit Credit
Accounts Payable $400
Cash $400
10. Received $3,000 from customers in payment of accounts receivable.
Account Debit Credit
Accounts Receivable $3,000
Cash $3,000
11. Received utility bills in the amount of $380, to be paid next month.
Account Debit Credit
Utility Expense $380
Accounts Payable $380
12. Paid the monthly salaries of the two employees, totaling $6,100.
Account Debit Credit
Wage Expense $3,050
Wages Payable $3,050
The following information is from the records of Pangolin Camera Shop: Bad expense is estimated by the aging-of-receivables method. Management estimates that $2,950 of accounts receivable will be uncollectible. Calculate the amount of net accounts receivable after the adjustment for bad debts. Supporting Materials / Group of answer choices $22,950 $22,050 $21,150 $20,800
Answer:
$22,050
Explanation:
The computation of the net account receivable after the adjustment of bad debt is shown below:
As we know that
Net account receivable = Account receivable - bad debt expense
= $25,000 - $2,950
= $22,050
By deducting the bad debt expense from the account receivable we can get the net account receivable and the same is to be considered
hence, the correct option is B.
Acquisition of Land and Building
On February 1, 2016, Edwards Corporation purchased a parcel of land as a factory site for $100,000. It demolished an old building on the property and began construction on a new building that was completed on October 2, 2016. Costs incurred during this period are:
Demolition of old building $8,000
Architect’s fees 25,000
Legal fees for title investigation and purchase contract 4,000
Construction costs 650,000
Edwards sold salvaged materials resulting from the demolition for $2,000.
Required:
At what amount should Edwards record the cost of the land and the new building, respectively?
If an input box should be blank, enter a zero.
Land Building
Purchase price of land $ $
Demolition of old building
Architect's fees
Legal fees
Construction costs
Salvaged materials
Total
Answer: The total cost of land will be $110,00 while the total cost of building will be $675,000.
Explanation:
The total cost of land will be $110,00 while the total cost of building will be $675,000. Total cost of land is gotten by ($100,000 + $8,000 + $4,000 - $2,000) = $110,000
Total cost of building is gotten by adding $25,000 + $650,000 = $675,000.
Further explanation has been attached
Privacy:_______.
a. is an absolute value.
b. must be respected if we are to function as complete, self-governing agents.
c. is something that employees today don't care about.
d. is guaranteed by Article 3, section 3, of the Constitution.
Answer: b. must be respected if we are to function as complete, self-governing agents.
Explanation:
Privacy enables humans to be able to figure out who they are and what they want in life. By giving a person the right to privacy instead of interfering in their lives you are essentially giving them the power to make their own decisions and trusting them to do well with this right.
By respecting privacy therefore, humans are better able to function as complete and independent agents who can take charge of their own lives without having to worry about interference with the intent to influence.
Complete the following table by selecting the term that matches each definition on the left.
Definition
1. Market Labor Demand Curve
2. Market Labor Supply Curve
3. Marginal Product of Labor
4. Value of the Marginal Product of Labor
a. The additional revenue the firm receives from selling the output produced from an additional unit of labor.
b. The graphical representation of the relationship between the wage rate and the quantity of labor workers are willing to provide in a market.
c. The graphical representation of the relationship between the wage rate and the quantity of labor firms are willing to hire in a market.
d. The increase in the amount of output from an additional unit of labor.
Answer:
The correct answers are the following:
1 - C
2 - B
3 - D
4 - A
Explanation:
1 - C: The market labor demand curve is represented graphically by the relationship between the wage rate and the quantity of labor firms are willing to hire in a market due to the fact that the firms are the ones who are looking for workers and therefore they demand it.
2 - B: The market labor supply curve is represented graphically by the relationship between the wage rate and the quantity of labor that the workers are willing to provide due to the fact that they are the one who put their work in the market in order to be used.
3 - D: The marginal product of labor represents the increase in the amount of output from an additional unit of labor that an additional worker puts in the firm.
4 - A: The value of the marginal product of labor comprehends the additional revenue the firm receives from selling the output produced from and additional unit of labor that an additional worker put in the firm.
Here are the 2015 revenues for the Wendover Group Practice Association for four different budgets (in thousands of dollars):
Static Budget Flexible (Enrollment/ Utilization) Budget Flexible (Enrollment) Budget Actual Results
$425 $200 $180 $300
a. What do the budget data tell you about the nature of Wendover's patients: Are they capitated or fce-for-service?
b. Calculate and interpret the following variances: Revenue variance Volume variance Price variance Enrollment variance Utilization variance
Answer: The answer is provided below
Explanation:
a). The revenue here shows that
Wendover's patients were capitated. The is because the actual revenue figures were assumed to be $180, but it
later came to $300 which means that the revenue increased.
The reason is that a capitated patient provides fixed payment a year, while a fee for service client pays per usage. With this explanation, it can be concluded that majority of Wendover's patients are fee for service because the difference between static results and the actual results is very high.
) 1. Revenue variance
= Actual Revenues - Static budget
= $ 300 - $ 425
= - $125
2. Volume variance
= Flexible Revenue - Static Budget
= $ 200 - $ 425
= - $ 225
3. Price Variance
= Actual Revenues - Flexible Revenues
=$300 - $200
= $100
4. Enrollment variance
= Flexible Revenues - Static Budget
= $ 180 - $ 425
= - $ 245
5. Utilization variance
= Flexible Revenue- Flexible Budget
= $ 200 - $ 180
= $ 20
Answer:
Kindly check Explanation
Explanation:
The difference between capita tes and fee-for-service is how payment is made, In capitates, a fixed annual amount is paid whereby In fee-for-service, payment is made separately for each service demanded. Thus it could be concluded from the data they the patients are fee-for - service due to the difference in the static and actual figure provided.
Given the following :
Static Budget - $425
Flexible (Enrollment/ Utilization) -$200
Budget Flexible (Enrollment) Budget -$180
Actual Results - $300
B)
Revenue variance = (Actual Revenues - Static Revenue)
Revenue variance = ($300-$425) = -$125 (Unfavorable)
This shows that the Wendover have less patients who use the services.
Volume variance = (Flexible Revenues (enrollment and utilization) – Static Revenues)
Volume variance = ($200 – $425) = -$225
Price variance = (Actual Revenues – Flexible Revenue)
Price variance = ($300 - $200)
Price variance = $100 F
Price variance is favorable which means service charge is high.
Enrollment variance = (Flexible Revenues (enrollment) – Static Revenue)
Enrollment variance = $180 – $425 = -$245
Utilization variance =Flexible revenues (enrollment/utilization) - Budget Flexible (Enrollment) Budget
$200 - $180 = $20
Sunk costs: Multiple Choice Have already been incurred as a result of past actions. Vary among the alternative courses of action being considered. Are benefits that could have been obtained by following another course of action. Result from unfavorable cost variances.
Answer:
Have already been incurred as a result of past actions.
Explanation:
This form of cost is detailed to be incurred by a company in its past or during its long run and it nothing can be done to change it or it cannot be averted or recovered in the future and proceeding run time of the said company.
Once the company's money is spent, that money is considered a sunk cost. Regardless of what money is spent on, sunk cost are dollars already spent and permanently lost. Sunk costs cannot be refunded or recovered. Monies that provides column or a sunk cost does not really base on a particular spending; as it ranges from different sectoral spendings of the company involved.
You just won the $87 million Ultimate Lotto jackpot. Your winnings will be paid as $2,900,000 per year for the next 30 years. If the appropriate interest rate is 6.2 percent, what is the value of your windfall
Answer:
Explanation:
In order to calculate the value of your windfall we would have to calculate the following formula:
Value of windall=P×[1-(1÷(1+r)^n)]÷r
According to the given data we have the following:
Interest rate per annum=6.20%
Number of years= 30
Number of compoundings per per annum=1
Payment per period (P)=$2,900,000
Therefore, Value of windall=$2,900,000×(1-(1÷(1+6.2%)^30))÷6.2%
Value of windall=$39,078,091.71
The value of your windfall is $39,078,091.71
The perfectly competitive firm's short-run supply curve is the Group of answer choices upward-sloping portion of its average total cost curve. horizontal portion of its marginal revenue curve. portion of its average variable cost curve that lies above the average fixed cost curve. upward-sloping portion of its marginal cost curve. portion of its marginal cost curve that lies above its average variable cost curve. Next
Answer:
Portion of its marginal cost curve that lies above its average variable cost curve.
Explanation:
This is explained to be the portion of its marginal cost curve because marginal gross benefits exceeds marginal cost, the firm can earn greater profits by increasing its output.
These profits are been maximized by choosing to supply the level of output where its marginal revenue equals its marginal cost. When this revenue is below the said marginal cost, money is lost, and consequently, it must reduce its output. Profits are however utilized when the firm chooses the level of output where its marginal revenue equals its marginal cost.
SmartTalk, Inc, makes and markets cell phones and related accessories. When problems develop with SmartTalk products or sales, the company may be liable in product liability for any of the following except:___________A) a manufacturing defectB) a design defect.C) an inadequate warning.D) an ineffective marketing plan.
Answer:
D) an ineffective marketing plan.
Explanation:
Product liability is defined as the liability that manufacturer bears when he puts defective product in the hands of the consumer.
Manufacturers are liable for damages that occur from the use of their products. They are also responsible for providing adequate instructions on use of the product and warning of adverse effects a user can experience.
SmartTalk, Inc produces cell phones and related accessories. They have product liability when there is a manufacturing defect, design defect, and inadequate warning on use of the product.
However the company does not have product liability for ineffective marketing as this is related to how well the company sells the product and not if the product is defective.
Jackson has the choice to invest in city of Mitchell bonds or Sundial, Inc. corporate bonds that pay 5.6 percent interest. Jackson is a single taxpayer who earns $47,500 annually. Assume that the city of Mitchell bonds and the Sundial, Inc. bonds have similar risk. What interest rate would the city of Mitchell have to pay in order to make Jackson indifferent between investing in the city of Mitchell and the Sundial, Inc. bonds for 2019
Answer: 4.37%
Explanation:
As interest is tax deductible, the Sundial Interest needs to be adjusted for tax to find out the true return.
Jackson as a single tax payer earning $47,500 in 2019 has a tax rate of 22% according to the IRS Tax bracket for that year.
That means that the interest that true interest that Sundial is offering him is,
= 5.6 * ( 1 - tax rate)
= 5.6 * ( 1 - 0.22)
= 5.6 * 0.78
= 0.04368
= 4.37%
To make Jackson indifferent with the same amount of risk, the city of Mitchell would have to offer him the same interest that Sundial is offering net of tax which is 4.37%.
At the Millbrook High School cafeteria, students proceed along a series of stations in a single line: (1) get tray and utensils, (2) choose food, (3) select beverage, (4) pay. The school is concerned that students are taking too long to get their meal. The school has analyzed the capacities of each of the four steps in isolation and found there exists sufficient capacity at each resource in isolation. Which of the following is most likely to be causing the congestion?a. The bottleneck is probably at the last station because capacity is reduced the most when the bottleneck is at the end of the process. b. The implied utilization of the bottleneck is too low. c. Due to variability in processing times, both blocking and starving could be occurring. d. The process must be demand-constrained. e. The stations have similar utilizations.
Answer:
c. Due to variability in processing times, both blocking and starving could be occurring.
Explanation:
The problem here is that students take a long time to get their meal. It is understood that at each of the four stations there is ample space and so the most likely cause of delays is different processing times at four stations.
The problem of either blocking or starving arises when the processing times are very small or very large at one or two of the stations, which will significantly increase the cycle time of the operation.
hence, the correct option is c.
Lloyd Inc. has sales of $250,000, a net income of $20,000, and the following balance sheet: Cash $51,000 Accounts payable $63,600 Receivables 118,800 Notes payable to bank 40,800 Inventories 294,000 Total current liabilities $104,400 Total current assets $463,800 Long-term debt 82,800 Net fixed assets 136,200 Common equity 412,800 Total assets $600,000 Total liabilities and equity $600,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2.5x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.5x); if the funds generated are used to reduce common equity (stock can be repurchased at book value); and if no other changes occur, by how much will the ROE change? Do not round intermediate calculations. Round your answer to two decimal places. % What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
If inventories are sold and not replaced (thus reducing the current ratio to 2.5x); if the funds generated are used to reduce common equity (stock can be repurchased at book value); and if no other changes occur The ROE will be of 9.4%
The firm's new quick ratio is 3.95
Explanation:
To calculate how much will the ROE change we have to calculate first the current ratio as follows:
Current ratio = Current assets / Current liabilities
2.5 times = (Cash + receivables + Inventories ) / (Accounts payable + Other current liabilities)
2.5 = ($51,000 + $118,800 + Inventories) / $104,400
$169,000 + inventories = $261,000
Inventories = $92,000
Therefore, $202,000 worth of inventories were sold off.
If the funds generated are used to reduce the common equity that is by repurchasing the equity at book value.
Hence, the common equity amounts to $210,800
Calculating the ROE before the inventory is sold off:
ROE = Net income / Steockholder's equity
= $20,000 / $412,800
= 0.048 or 4.8%
Calculating the ROE after selling off the inventory:
ROE = $20,000 / $210,800
= 0.094 or 9.4%
If inventories are sold and not replaced (thus reducing the current ratio to 2.5x); if the funds generated are used to reduce common equity (stock can be repurchased at book value); and if no other changes occur The ROE will be of 9.4%
The firm's new quick ratio is
Quick ratio = (Current assets - Inventories) / Current liabilities
= ($463,800 - $92,000) / $104,400
= 3.95
Sarah signed an agreement to rent an apartment from a landlord who also signed the agreement. During the lease negotiations, the landlord agreed to provide Sarah with extra storage space in the basement of the apartment building but this promise was not included in the agreement. The landlord now tells Sarah that he will not provide the extra space. If the landlord admits making the promise, under the parol evidence rule (select one):
Answer:
He is legally expected to provide the space under the overconfidence trap
Explanation:
The landlord was overconfident about his judgment abilities and was quick to make the promise to provide the extra space without thinking of a wider range of possibilities. Thereby exposing himself to a greater risk than he imagined. The parole evidence is an evidence of oral speech. Since he admitted making the promise to Sarah, he is legally expected to provide the space.
Suppose that M = 300, P = 100, and Y = 6. Then the velocity of circulation equals Select one: a. 2.00. b. 3.00. c. 50 d. 0.50. e. 0.02.
Answer:
a. 2.00.
Explanation:
The formula and the computation of the velocity of circulation are shown below:
According to the quantity money theory
M = Total money
V = Velocity
P = Price level
Y = Volume of goods and services
As we know that
Total amount of money in the economy × velocity = Price level × volume of goods and services
300 × velocity = 100 × 6
300 × velocity = 600
So, the velocity is
= 600 ÷ 300
= 2
Hence, the first option is correct
Belltone Company made the following expenditures related to its 10-year-old manufacturing facility:
1. The heating system was replaced at a cost of $185,000. The cost of the old system was not known. The company accounts for improvements as reductions of accumulated depreciation.
2. A new wing was added at a cost of $740,000. The new wing substantially increases the productive capacity of the plant.
3. Annual building maintenance was performed at a cost of $22,000.
4. All of the equipment on the assembly line in the plant was rearranged at a cost of $34,000. The rearrangement clearly increases the productive capacity of the plant.
Required:
Prepare journal entries to record each of the above expenditures.
Answer: The answer is given below
Explanation:
A journal is a detailed account that is used in a business or an organization in order to record every financial transactions thatbtskes place in the business or organization who ch will be used for reconciliation of account in the future and also transfer to every other accounting records, like the general ledger.
The journal entries to record the expenses made by Belltone Company relating to its 10-year-old manufacturing facility has been prepared and attached.
On March 4 of 1999, XYZ Corporation takes out a $1 million loan. The company pays the interest semiannually. The six-month interest rate is six-month LIBOR 80 basis points, with a cap at 9.25%. Assume that LIBOR is at 8.5% on March 4, 1999, and 7.75% on September 4, 1999. What is the second interest payments on the loan
Answer: $85,500
Explanation:
From the question, we are told XYZ Corporation takes out a $1 million loan and the interest on the loan is paid semiannually.
We are also told that the six-month interest rate is six-month LIBOR 80 basis points, with a cap at 9.25%. Assume that LIBOR is at 8.5% on March 4, 1999, and 7.75% on September 4, 1999.
The second interest payments on the loan will be:
The interest rate will be:
Interest rate = LIBOR + 80bps
= 7.75 + 0.8
= 8.55%
Interest paid in the second period
= $1,000,000 × 8.55%
= $1,000,000 × 0.0855
= $85,500
Note that there is no need for using the cap since the interest didn't exceed 9.25%
During step 3 of activity-based costing, activity overhead cost pool rates are used to assign overhead costs to final cost objects. Proper determination of activity rates depends on all of the following: proper calculation of total overhead costs proper assignment of costs to cost objects proper determination of factors which drive costs proper measurement of activities Rate your confidence to submit your answer.
Answer:
HEY
Explanation:
Wal-Mart's Electronic Data Interchange (EDI) systems automate ordering and payment processes with suppliers, thereby reducing cost and improving order accuracy. Which of the five logistics decisions does this refer to?
A) Location
B) Transportation
C) Information
D) Warehousing
Answer:
Information
Explanation:
The automation capturesthe customer's information and speeds up the ordering process.
I hope my answer helps you
Identify each of the following types of businesses as either job-order or process costing. a. Hospital services b. Custom cabinet making c. Toy manufacturing d. Soft-drink bottling e. Airplane manufacturing (e.g., 767s) f. Personal computer assembly g. Furniture making (e.g., computer desks sold at discount stores) h. Custom furniture making i. Dental services j. Paper manufacturing k. Nut and bolt manufacturing l. Auto repair m. Architectural services n. Landscape design services o. Flashlight manufacturing
Answer:
The answer to the question above is given below:
Explanation:
First, for a better understanding of the type of business to be categorized as job-order or process costing, explanation would be made on what job-order and process costing are.
Job-order costing is used when items produced differ such that each carries a significant cost. Job-order costing systems track costs by job and are used by companies to calculate costs of unique products been produced.
Process costing assigns product costs to departments and is used by companies that produce similar products this ensures a continuous style of production employed. No difference in the products been produced in process costing.
Going by the definition above one can categorize the businesses:
a. Hospital services are a Job-order costing type of business
b. Custom cabinet making is a Job-order costing type of business
c. Toy manufacturing is a Process costing type of business
d. Soft-drink bottling is a Process costing type of business
e. Airplane manufacturing (e.g., 767s) is a Process costing type of business because they produce similar products (767s) that translate to a consistent process. But if the model of the airplane is not specified then it is a Job-order costing type of business.
f. Personal computer assembly is a Job-order costing type of business
g. Furniture making (e.g., computer desks sold at discount stores)
h. Custom furniture making is a Job-order costing type of business
i. Dental services are a Job-order costing type of business
j. Paper manufacturing is a Process costing type of business
k. Nut and bolt manufacturing is a Process costing type of business
l. Auto repair is a Job-order costing type of business
m. Architectural services are a Job-order costing type of business
n. Landscape design services are a Job-order costing type of business
o. Flashlight manufacturing is a Process costing type of business
Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $92
Units in beginning inventory 0
Units produced 8,700
Units sold 8,300
Units ending inventory 400
Variable costs per unit:
Direct materials $13
Direct labor $55
Variable manufacturing overhead $1
Variable selling and administrative $5
Fixed costs:
Fixed manufacturing overhead $130,500
Fixed selling and administrative $8,300
What is the unit product cost for the month under absorption costing?
a) $74 per unit
b) $89 per unit
c) $69 per unit
d) $84 per unit
Answer:
Unit product cost= $84
Explanation:
Giving the following information:
Units produced 8,700
Direct materials $13
Direct labor $55
Variable manufacturing overhead $1
Fixed manufacturing overhead $130,500
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Unitary fixed overhead= 130,500/8,700= $15
Unit product cost= 13 + 55 + 1 + 15= $84
You have $ 69 comma 000 69,000. You put 25 25% of your money in a stock with an expected return of 10 10%, $ 39 comma 000 39,000 in a stock with an expected return of 14 14%, and the rest in a stock with an expected return of 18 18%. What is the expected return of your portfolio? brainly
Answer: 13.72%
Explanation:
Here is the complete question:
You have 69,000. You put 25% of your money in a stock with an expected return of 10%, 39,000 in a stock with an expected return of 14%, and the rest in a stock with an expected return of 18%. What is the expected return of your portfolio?
The weight of the investment in stock with the expected return of 10% = 25% = 25/100 = 0.25
The weight of investment in the stock with an expected return of 14% = 39000/69000 = 0.57
Therefore, the weight of the investment in stock with an expected return of 18% = 1-(0.25+0.57) = 1 - 0.82 = 0.18
Expected return of the portfolio:
= (10 × 0.25) + (14 × 0.57) + (18 × 0.18)
= 2.5 + 7.98 + 3.24
= 13.72%
A basic finding of labor economics is that workers who have more experience in the labor force are paid more than workers who have less experience (holding constant the amount of formal education). True or False: This might be the case because more experience decreases the value of the marginal product of labor. True False Some studies have also found that experience at the same job (called job tenure) has an extra positive influence on wages. Job tenure is valuable because people gain that is useful to the firm.
Answer:
A. TRUE
B1. TRUE
B2. Job Specific Knowledge
Explanation:
1. TRUE because more experience will definitely means more on-the-job training because the employee has gain different experience from either same field or different field which will inturn help to increase the worker's value of the marginal product of labor which is why workers who have more experience in the labor force are tend to be paid more than workers who have less experience or no experience.
B1. TRUE because experience gain at the same job will definitely lead to an extra positive influence on wages.
B2. Job tenure is valuable because people will tend to be able to gain JOB SPECIFIC KNOWLEDGE that is useful to the firm.
JOB SPECIFIC KNOWLEDGE: can be defined as the way in which workers or an employee shows his or her abilities, skills and strengths in order to excel in that specific job which is why employers of labour will often include the skill that is required for the employee to be able to perform the job in their job posting.
Answer:
Explanation:
The correct answer to the first question is false, not true. Trust me
