Answer:
$10,080 income
Explanation:
The computation of incremental income or loss on reworking the units is shown below:-
Incremental income on reworking unit = Sales after reworking - Sales to salvage company - Incremental cost
= (1,200 × $19.40) - (1,200 × $4.20) - (1,200 × $6.80)
= $23,280 - $5,040 - $8,160
= $10,080 income
Therefore for computing the Incremental income on reworking unit we simply applied the above formula.
Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule and the Uniform Electronic Transactions Act (UETA), Relay's acceptance by e-mail will be considered effective when:
a. received
b. sent
c. followed up by a confirmation letter
d. sent by regular mail
According to the condition, of the Uniform Electronic Transactions Act (UETA), Relay's acceptance by e-mail will be considered effective when sent. Thus, the correct option is (B).
You can create, transmit, and receive information rapidly, and the users of your account may access information quickly, frequently mass-texting a large number of individuals at once.
The process of sending an email is immediate, but the writer should not anticipate an instant response.
Many people only manage their email during regular work hours since it is an essential component of their profession.
Therefore, the correct option is "B".
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In a situation of neither input nor output fixed, the proper economic criterion is to _________________. A. Maximize the output B. Minimize the inputs C. Minimize (inputs - outputs) D. Maximize (outputs - inputs)
Answer:
D. Maximize (outputs - inputs)
Explanation:
The input is the raw material, labor, the efforts that is used in making the product while the output is the product or the result arising from the input
The profit arises when output and the input varies from each other
i.e
Profit = Output - input
In the case where there is neither an input nor output fixed, so we have to maximize the profit i.e (output - input) but the condition is that they are different from each other
Hence, the correct option is D.
Summary balance sheet data for Greener Gardens Co. is shown below (in thousands of dollars). The company is in a highly seasonal business, and the data show its assets and liabilities at peak and off-peak seasons: Peak Off-Peak Cash $ 50 $ 30 Marketable securities 0 20 Accounts receivable 40 20 Inventories 100 50 Net fixed assets 500 500 Total assets $690 $620 Payables and accruals $ 30 $ 10 Short-term bank debt 50 0 Long-term debt 300 300 Common equity 310 310 Total claims $690 $620 From this data we may conclude that a. Without cash flow data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy. b. Greener Gardens' current asset financing policy calls for exactly matching asset and liability maturities. c. Greener Gardens' current asset financing policy is relatively aggressive; that is, the company finances some of its permanent assets with short-term discretionary debt. d. Without income statement data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy. e. Greener Gardens follows a relatively conservative approach to current asset financing; that is, some of its short-term needs are met by permanent capital.
Answer: E.) Greener Gardens follows a relatively conservative approach to current asset financing; that is, some of its short-term needs are met by permanent capital.
Explanation: From the data given above, it could be inferred that Greener gardens Co. due to the seasonal nature of its business takes a conservative and measured approach into financing its current asset such as cash, account receivables, inventory, short term liability or debt
using permanent capital in other to shore up running cost or fluctuation which could result due to low revenue during the off peak period and cut the company's spending on certain short term needs.
Answer:
The answer is E. Gardens follows a relatively conservative approach to current asset financing; that is, some of its short-term needs are met by permanent capital.
Explanation:
The current asset financing policy concentrates on determining the most appropriate method of financing both temporary and permanent current assets.
There are 3 types of working capital financing policy - matching, conservative and aggressive.
In conservative financing policy, a business is required to maintain high levels of current assets in relation to its sales so as to absorb any sudden changes in the sales and thus avoid disruption in the production plans.
Working capital equals total current asset minus total current liability.
For peak period:
Current assets:
Cash. $50
Marketable securities. -
Account receivables. $40
Inventories $100
Total current assets. $190
Current liabilities:
Payables and accruals. $30
Short term bank debt. $50
Total current liabilities. $80
Therefore, working capital is:
$190 - $80
=$110
So Greener Gardens co. has excess working capital to cover for any sudden change in price.
Also for off peak:
Current assets:
Cash. $30
Marketable securities. $20
Account receivables. $20
Inventories $50
Total current assets. $120
Current liabilities:
Payables and accruals. $10
Short term bank debt. -
Total current liabilities. $10
Therefore, working capital is:
$120 - $10
=$110
For both on peak and off peak, the working capital is the same, meaning it is maintain a conservative policy that is dependent on its assets for financing.
1) Do you think there is/are any action(s) by Jessops Group Limited, that can be considered as a Corporate Social Responsibility (CSR) activity? 2) If yes, can you identify and explain a benefit of the CSR activity to Jessops Group Limited?
Answer:
YesExplanation:
Yes, Jessops is fulfilling its corporate social responsibility due to its contribution to the local councils for developing the collection facilities of discarded electronic goods and also by raising awareness for WEEE regulations, setting up plants to recycle used batteries can also be counted as a corporate social responsibility as it is an initiative to reduce environmental pollution caused by batteries.
There are four types of corporate social responsibility: Environment conservation, philanthropy, volunteerism, diversity and labor practices. Many corporations give money for preservation of wildlife and land, and take up environmental clean up efforts.
CSR helps the companies in many ways. It includes brand recognition and business reputation, it gives competitive edge to a company as companies prefer suppliers with responsible policies. It enhances customer loyalty and increases sales, it saves operational cost by reducing emissions and waste.
The CSR efforts helps the companies to attract talent and retain them as employees are motivated to work with companies taking up CSR initiatives.
CSR efforts also improves relations with the authorities and makes it easy to get financial access.
So, Jessop group will also get all these benefits from its CSR initiatives that will help it to become market leader in imaging industry.
Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $1,800 of direct materials and used $3,300 of direct labor. The job was not finished by the end of the month, but needed an additional $2,300 of direct materials and additional direct labor of $5,100 to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of September relative to Job A3B? Multiple Choice $7,400 $11,700 $4,100 $8,400
Answer:
$11,700
Explanation:
The computation of the balance in the work in process at the end of the month is shown below:
= Direct material cost + direct labor cost + manufacturing overhead cost percentage of direct labor cost
= $1,800 + $3,300 + $3,300 × 200%
= $1,800 + $3,300 + $6,600
= $11,700
We simply added the direct material cost, direct labor cost and the manufacturing overhead cost so that the ending balance could arrive
The integration of flower farming in Kenya into global economy creates additional pressure for the ecosystem and the environment in Kenya. The major concern is due to the following.
A. More pollution in Naivasha lake
B. Less water resources for locals
C. extensive use to water flowers
D. All of these
Answer: D. All of these
Explanation:
Lake Naivasha has seen a huge rise in pollution due to the integration of the Kenya flower farming industry. This is due to the chemicals and fertilizers used to farm the flowers. Indeed in the year, Researchers estimate that due to a torrential rainfall that hit the area, millions of fish and aquatic life died when fertilizers and chemicals were washed into the lake.
The use of water from the lake for flower farming has also reduced the amount of water available to locals. This as well as the massive increase in the population of area as people come from far and wide to work for the flower farms have also increased the usage of the lake thereby reducing what is left for the locals.
Used in farming are water flowers and their overuse have led to their numbers dropping as well.
Newport Industries is one of the first producers of a unique consumer product. The company has chosen a low-price strategy, hoping this will enable them to quickly attract many customers while discouraging potential competitors from entering the market. Newport's approach to pricing is a classic example of the skimming strategy.A. TrueB. FalseThe ability to integrate computers into the design and manufacture of products has had the greatest impact on production techniques in recent years.A. TrueB. FalseIn the evaluation of the promotion, it's best to establish a promotional strategy that can reach multiple targets rather than developing a separate promotion mix for each target group.A. TrueB. FalseBright Electronics has found it needs to reorganize, including a significant trim of its middle management. This action will likely result in:_______.
a. acquiring additional firms.b. flattening the organization and empowering employees, allowing them to get closer to the customer.c. increasing the size of its traditional departments to handle 24/7 operations.d. centralizing its decision making to better control its total quality management program.Empowerment means:______.a. giving employees the authority to make decisions.b. making certain that employees always defer to management when making decisions.c. hiring employees that do not require training due to the costly nature of this activity.d. asking employees to write the policies which govern their jobs.School Days Centers specialize in helping students with difficulties. With locations around the country, each center consists of a manager and several tutor and counselors. The counselors and tutor have a great deal of flexibility to design programs specifically for individual students. In fact, these first-line employees are considered to be the key people in the organization, and the manager's main function is to assist these employees in matters such as scheduling and securing necessary materials. This type of arrangement suggests that School Days is an inverted organization.A. TrueB. False
Answer:
1. False
2. False
3. d. centralizing its decision making to better control its total quality management program
4. a.
5. True
Explanation:
1. Remember, a skimming strategy does the opposite–where a company chooses the highest possible price not the lowest price for their product when entering the market.
2. Indeed, this has impacted on production techniques in recent years. For example, from labour intensive car factories in the past we now have fully automated car factories that require very few workforce.
3. Remember, centralization results when there are fewer people in the line of authority. Therefore, if Brights Electronics decision to reorganize and significantly trim its middle management would result in centralized decision making and a better control its total quality management program.
4. Note that the promotional mix involves target based marketing, therefore each target market may have unique characteristics. And to attract each target market would involve establishing a promotional strategy that can reach multiple targets rather than developing a separate promotion mix for each target group.
5. An inverted organization is one that has a reversal from the normal line of authority found in most organization. Instead of top to bottom it now bottom to top. This implies that the manager who normally would play major role in deciding strategies to be taken doesn't, but the bottom line employees performs that responsibility. Thus, School Days Center can be rightly called an inverted organization.
Zombie Corp. has a profit margin of 5.1 percent, a total asset turnover of 1.95, and ROE of 16.15 percent.
What is this firm's equity multiplier?
What is this firm's debt-equity ratio?
Answer:
This firm's equity multiplier is 1.6239
This firm's debt-equity ratio is 0.6239
Explanation:
According to the given data we have the following:
Profit Margin (PM) = 5.10%
That is, Net Profit/Sales = 5.10% = 0.051
Total Assets Turnover (TAT) = 1.95
That is, Sales/Total Assets = 1.95
Return on Equity (ROE) = 16.15%
That is, Net Profit/Total Equity = 16.15% = 0.1615
In order to calculate this firm's equity multiplier we would have to use the following formula:
Equity Multiplier (EM) = Total Assets / Total Equity
=(total assets/sales)*(sales/total equity)
=(total assets/sales)*(sales/net profit)*(net profit/total equity)
=(1/T AT)*(1/PM)*(ROE)
=(1/1.95)*(1/0.051)*(0.1615)
=1.6239
This firm's equity multiplier is 1.6239
In order to calculate this this firm's debt-equity ratio we would have to use the following formula:
Debt Equity Ratio = Debt/Equity
=(total assets- total equity)/(total equity)
=(total assets/total equity)-(total equity/total equity)
= equity multiplier-1
=1.6239-1
=0.6239
This firm's debt-equity ratio is 0.6239
Henrie’s Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $102,990, including freight and installation. Henrie’s estimated the new machine would increase the company’s cash inflows, net of expenses, by $30,000 per year. The machine would have a five-year useful life and no salvage value.
Required:
a. Compute the machine's internal rate of return to the nearest whole percent.
b. Compute the machine's net present value. Use a discount rate of 16%. (Any cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.)
c. Suppose that the new machine would increase the company's annual cash inflows, net of expenses, by only $41,000 per year. Under these conditions, compute the internal rate of return to the nearest whole percent.
Answer:
A. 14%
B. NPV = $-4,761.19
C. 28%
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = $-102,990
Cash flow each year from year one to five = $30,000
IRR = 14%
The 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 in year 0 = $-102,990
Cash flow each year from year one to five = $30,000
I = 16%
NPV = $-4,761.19
IRR if cash flow is $41,000
Cash flow in year 0 = $-102,990
Cash flow each year from year one to five = $41,000
IRR = 28%
To find the NPV using a financial calacutor:
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
To find the IRR using a financial calacutor:
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 IRR button and then press the compute button.
I hope my answer helps you
The market for plywood is characterized by the following demand and supply equations: QD = 800 – 10P and QS = 50P – 1,000, where P is the price per sheet of plywood and Q measures the quantity of plywood. What is the size of the deadweight loss if the government imposes a price ceiling of $25 per sheet of plywood?
Answer: Dead weight loss-= $3750
Explanation:
QD = 800 – 10P
QS = 50P – 1,000,
At equilibrium, quantity demanded is equal to quantity supplied , so we have that, equating the two equations becomes
800 - 10p = 50p - 1000.
800 + 1000 = 50p + 10p
1800 = 60p
p = $30.
QD= QS= 800 - 10*30 = 500 units
QD= QS= 50x30 -1000= 500 units
Qd = Qs = 500 units.
When P = $25 by government putting a price ceiling, which is below the equilibrium price,it will lead to more demand than supply in the market
QD = 800 – 10P
QD= 800-10X25
QD=800-250= 550units
QS = 50P – 1,000,
Qs = 50 X25 - 1000
= 1,250-1000
QS = 250 units.
When quantity demanded =250units as a result of Quantity supplied at 250units. we will have our new price to be
QD = 800 – 10P
250 = 800 - 10p
10p = 800 -250
10p = 550
p = $55.
To calculate Dead weight Loss, we use the formulae,
0.5 x (P2 - P1) x (Q1 - Q2) where P1 and P2 are old and new prices and Q1 AND Q2 are old and new quantities
DWL = 0.5 x (55-25) X (500-250)
= 0.5 x 30x 250
Dead weight loss = $3750.
The preliminary 20 21 income statement of Alexion Systems, Inc., is presented below: ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 ($ in millions, except earnings per share) Revenues and gains: Sales revenue 437 Interest revenue 5Other income 127Total revenues and pains Expenses: 569 Cost of goods sold 246Selling and administrative expense 151Income tax expense 43 Total expenses 440Net Income 129Earnings per share 12.90Additional Information: 1. Selling and administrative expense includes $27 million in restructuring costs. 2. Included in other income is $120 million in income from a discontinued operation. This consists of $90 million in operating income and a $30 million gain on disposal. The remaining $7 million is from the gain on sale of investments 3. Cost of goods sold was increased by $10 million to correct an error in the calculation of 2020's ending inventory. The amount is material Required: Prepare a revised income statement for 2021 reflecting the additional facts.
Answer:
Alexion Systems, Inc.
Income Statement
For the Year Ended December 31, 2021
(in $ millions)
Sales revenue $437
Cost of goods sold ($256)
Gross profit $181
Operating expenses:
S&A expense ($124)Restructuring costs ($27)Income from continuing operations b/ Taxes $30
Income tax expense ($7,5)
Income from continuing operations $22.5
Other revenues and expenses:
Interest revenue $5Gain on sale of investments $7Income tax for other revenues ($3)Other revenues and expenses $9
Discontinued operations:
Operating income $90Gain on disposal $30Income tax on discontinued operations ($30)Income from discontinued operations $90
Net income $121.50
Earnings per share $12.15
Explanation:
I assumed income tax rate = 25% (I divided $43 / $172)
Commercial buildings and industrial facilities account for a major share of a company's environmental impact. Identify one business that has implemented green building standards and describe the advantages they have gained from their efforts.
Answer:
The advantages and achievement of the Solidia technologies is listed below:
Explanation:
Solidia Technologies is the Jersey-based startup which has reduced its 70% Carbon dioxide emission and is among the top priorities of the constructors who opt to green cements and try their best to achieve their set social and environmental footprints. Furthermore, this company has also achieved many awards due to innovative technology with many additional investment donated by the government as a prize and in the form of loans to help the company expand their operations. They have successfully grown their business and are now expanding to different states due to their innovation that they provide.
Niler Corporation reported the following after-tax information for its current fiscal year: $35,000 income from continuing operations, $8,400 income from operations of discontinued Line C, and $12,500 loss on disposal of Line C.
Starting with income from continuing operations, prepare a partial income statement for Niler for the current year. Ignore earnings per share.
Answer:
The net income for Niler Corporation for the current year is $30,900.
Explanation:
When there is a discontinued operation, the income from the discontinued operation is added to the income from continuing operations while the loss on disposal of the same operation is added to obtain the net income for the company. This can be done as follows for this question:
Niler Corporation
Partial Income Statement
Details $
Income from continuing operations 35,000
income from operations of discontinued Line C 8,400
Loss on disposal of Line C (12,500)
Net income 30,900
Therefore, the net income for Niler Corporation for the current year is $30,900.
REM Consulting is completing the accounting information processing at the end of the fiscal year, December 31. The following trial balances are available. Accounts Unadjusted Trial Balance Adjusted Trial Balance Debit Credit Debit Credit Cash 13,000 13,000 Accounts Receivable 1,500 1,800 Prepaid Insurance 600 200 Supplies 3,800 3,000 Machines 30,000 30,000 Accumulated Depreciation 12,000 17,500 Wages Payable 900 Unearned Fees 6,700 6,500 Owner’s Capital 24,000 24,000 Owner’s Drawing 4,800 4,800 Fees Earned 25,000 25,500 Wages Expense 14,000 14,900 Depreciation Expense 5,500 Supplies Expense 800 Insurance Expense 400 67,700 67,700 74,400 74,400 Required: a. Reconstruct the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles. b. What is the amount of net income?
Answer:
Net Income 3900
Explanation:
REM Consulting
Un adjusted Trial Balance Adjusted Trial Balance
Debit Credit Debit Credit
Cash 13,000 13,000
Accounts Receivable 1,500 1,800
Prepaid Insurance 600 200
Supplies 3,800 3,000
Machines 30,000 30,000
Acc. Depreciation 12,000 17,500
Wages Payable 900
Unearned Fees 6,700 6,500
Owner’s Capital 24,000 24,000
Owner’s Drawing 4,800 4,800
Fees Earned 25,000 25,500
Wages Expense 14,000 14,900
Depreciation Expense 5,500
Supplies Expense 800
Insurance Expense 400
Total 67,700 67,700 74,400 74,400
Adjusting Entries
SR. No Accounts Debit Credit
1) Accounts Receivable 300
Sales 300
As Sales increase so do the Accounts receivable.
2) Insurance Expense 400
Prepaid Insurance 400
Insurance expired by $400.
3) Supplies Expense 800
Supplies 800
Supplies used up by amount $800.
4) Depreciation Expense 5,500
Accumulated Depreciation 5,500
Depreciation Expense amounts to $ 5,500
5) Fees Earned 200
Unearned Fees 200
Provided Services for which payment had been collected,
6) Cash 500
Fees Earned 500
Received $500 for services provided.
7) Wages Payable 900
Cash 900
Paid wages payable to the employee.
REM Consulting
Net income
Fees Earned 25500
Wages Expense 14,900
Depreciation Expense 5,500
Supplies Expense 800
Insurance Expense 400
Net Income 3900
g Dybala Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 110 100 % Variable expenses 66 60 % Contribution margin 44 40 % The company is currently selling 5,120 units per month. Fixed expenses are $210,000 per month. The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 230 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change
Answer:
Effect on income= $3,520 increase
Explanation:
Giving the following information:
Contribution margin= 44
The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 230 unit increase in monthly sales.
To calculate the effect on income, we need to use the following formula:
Effect on income= increase in contribution margin - increase in costs
Effect on income= 230*44 - 6,600
Effect on income= $3,520 increase
Our Lady of the Lake Hospital has assembled a group of employees to engage in planning activities. If the group comprises top executives such as the Chief Executive Officer, Chief Financial Officer, and Chief Marketing Officer, they would likely create
Answer: a. long-term plans.
Explanation:
Long term plans in a business are considered Strategic Plans. Strategic plans aim to formulate general long term goals and visions for what the company aims to do in future and what level they aim to be at.
These types of goals are usually for the policy makers in a company being the Top Executives who are tasked with the long term growth of the company.
The Top Executives come up with these plans and then the Mid and lower level managers come up with tactical and operational plans to meet the objectives of the plans.
your investment has a 20% chance of earning 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance of losing 7%. what is your expected return on investment
Answer:
8.9%
Explanation:
From the question above
- The investment has 20% chance of earning 30% rate of return
= 20/100
Number or chances= 0.2
- The investment has a 50% chance of earning 10% rate of return
= 50/100
Number of chances = 0.5
- The investment has 30% chance of losing 7%
= 30/100
Number of chances= 0.3
Therefore, the expected return on investment can be calculated as follows
=0.2(30) + 0.5(10) + 0.3(-7)
=6 + 5 - 2.1
= 11-2.1
= 8.9%
Hence the expected return on investment is 8.9%
a. On February 15, paid $130,000 cash to purchase GMI's 90-day short-term notes at par, which are dated February 15 and pay 6% interest (classified as held-to-maturity).
b. On March 22, bought 1,000 shares of Fran Inc. common stock at $35 cash per share. Cancun's stock investment results in it having an insignificant influence over Fran.
c. On May 15, received a check from GMI in payment of the principal and 90 days' interest on the notes purchased in part a.
d. On July 30, paid $39,000 cash to purchase MP Inc.'s 5% , six-month notes at par, dated July 30 (classified as trading securities).
e. On September 1, received a $0.42 per share cash dividend on the Fran Inc. common stock purchased in part b.
f. On October 8, sold 500 shares of Fran Inc. common stock for $41 cash per share.
g. On October 30, received a check from MP Inc. for three months’ interest on the notes purchased in part d.
Prepare journal entries to record the above transactions involving both the short-term and long-term investments of Cancun Corp., all of which occurred during the current year. (Use 360 days in a year. Do not round your intermediate calculations. Round your answers to the nearest whole dollar.)
Answer:
a. On February 15, paid $130,000 cash to purchase GMI's 90-day short-term notes at par, which are dated February 15 and pay 6% interest (classified as held-to-maturity).
Dr Investment in GMI's notes - HTM 130,000
Cr Cash 130,000
b. On March 22, bought 1,000 shares of Fran Inc. common stock at $35 cash per share. Cancun's stock investment results in it having an insignificant influence over Fran.
Dr Investment in Fran inc. stocks 35,000
Cr Cash 35,000
c. On May 15, received a check from GMI in payment of the principal and 90 days' interest on the notes purchased in part a.
Dr Cash 131,950
Cr Investment in GMI's notes - HTM 130,000
Cr Interest revenue 1,950
d. On July 30, paid $39,000 cash to purchase MP Inc.'s 5% , six-month notes at par, dated July 30 (classified as trading securities).
Dr Trading securities - MP Inc.'s notes 39,000
Cr Cash 39,000
e. On September 1, received a $0.42 per share cash dividend on the Fran Inc. common stock purchased in part b.
Dr Cash 420
Cr Dividends revenue 420
f. On October 8, sold 500 shares of Fran Inc. common stock for $41 cash per share.
Dr Cash 20,500
Cr Investment in Fran inc. stocks 17,500
Cr Gain on investment 3,000
g. On October 30, received a check from MP Inc. for three months’ interest on the notes purchased in part d.
Dr Cash 487.50
Cr Interest revenue 487.50
The employees of an organization have heard rumors about rapidly dropping profits and impending layoffs. The grapevine is abuzz with bad news. People are nervous and anxious, and are starting to believe whatever is being said without verifying the source. In this situation, an appropriate action for a manager to take is to
Answer:
A. neutralize the rumor by openly confirming any parts that may be true.
Explanation:
Here are the options to this question:
A. neutralize the rumor by openly confirming any parts that may be true.
B. restrict the length of breaks taken by the employees.
C. closely monitor each employee's activities in the office.
D. fire employees found spreading false stories.
E. block all forms of electronic communication in the office.
I hope my answer helps you
Suppose there are 11 buyers and 11 sellers, each willing to buy or sell one unit of a good, with values {$14, $13, $12, $11, $10, $9, $8, $7, $6, $5, $4,}. Assume no transaction costs and a competitive market. If there is a market maker in this market. What is the profit maximizing bid-ask spread per unit for a market maker? a. $9 bid; $9 ask b. $6 bid; $12 ask c. $8 bid; $10 ask d. $7 bid; $11 ask
Answer:
Explanation:
From the question given; The objective here is to determine the profit maximizing bid-ask spread per unit for a market maker. In order to achieve that; The demand supply schedule of the number of units bought and sold need to be computed which is shown in the table below.
Price Quantity demanded by buyers Quantity sold by sellers
$14 1 11
$13 2 10
$12 3 9
$11 4 8
$10 5 7
$9 6 6
$8 7 5
$7 8 4
$6 9 3
$5 10 2
$4 11 1
However; As the two transactions are happening simultaneously; There are 11 people participating in buying of a good and selling from one person to the other.
But the maximum even number of people that can be part of this trade is only 10 people.
So; for the individual having an higher value for the good will be able to afford it and which are those that falls into the category of $14,$13,$12,$11,$10,$9 can place bid for the good.
On the other hand, the individual having a lower value for the good will sell it and which are those that falls into the category of $4,$5,$6,$7,$8,$9 and would want to sell it for the ask price of the good.
In this trend, we understand that the individual valuing the good for $9 won't be able to participate due to the fact that He appears on both trends because in the demand side , he have the lowest willingness to pay and at the seller's side he has the the highest value for the good and that the equilibrium price in this market is $ 9 because at this price the quantity demanded equals quantity supplied .
Thus; we can conclude that there are 5 transactions in the maximizing bid-ask spread per unit for a market maker.
Uniform Supply accepted a $8,800, 90-day, 9% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on January 15 of the next year when the note is paid? (Assume reversing entries are not made.). (Use 360 days a year.)
Answer:
Dr cash($8800+$33+$165) $8,998
Cr notes receivable $8,800
Cr interest revenue $33
Cr interest receivable $165
Explanation:
As at January 15 when the note is received ,there is need to recognize interest revenue for 15 days of January i.e 15/360*9%*$8800=$33
From October 17 to December 31 ,interest receivable amount already recognized as revenue=75/360*9%*$8800=$165
The actual of amount of notes receivable is the original amount of $8,800
Of the following steps of the Accounting Cycle, which step should be completed first? a. Transactions are posted to the general ledger. b. Closing entries are journalized and posted to the ledger. c. Adjusting entries are journalized and posted to the general ledger. d. Financial statements are prepared.
Answer:
a. Transactions are posted to the general ledger.
Explanation:
Accounting cycle is an arrangement of accounting procedure in a systematic order during the accounting year for each accounting information.
The first step in accounting cycle is to analyze the given date and classify them accordingly, after which the transaction will be journalized. The next step is to Post transactions to the general ledger. Next is to prepare trial balance(unadjusted) and then record the adjusting entries. After this step, the adjusted trial balance is then prepared before preparing the financial statement and then record the closing entries.
Listed below are a few events and transactions of Kodax Company.
Jan. 2 Purchased 92,000 shares of Grecco Co. common stock for $526,000 cash. Grecco has 276,000 shares of common stock outstanding, and its activities will be significantly influenced by Kodax.
Sept. 1 Grecco declared and paid a cash dividend of $1.50 per share.
Dec. 31 Grecco announced that net income for the year is $507,900. Year 2
June 1 Grecco declared and paid a cash dividend of $3.80 per share.
Dec. 31 Grecco announced that net income for the year is $735,400.
Dec. 31 Kodax sold 13,000 shares of Grecco for $96,500 cash.
Required:
Prepare journal to record the above transactions and events of kodax Company.
Answer:
Jan. 2
Investment in Associate $526,000 (debit)
Cash $526,000 (credit)
Sept. 1
Cash $138,000 (debit)
Dividend Received $138,000 (credit)
June 1
Cash $349,600 (debit)
Dividend Received $349,600 (credit)
Dec. 31
Cash $96,500 (debit)
Investment in Associate $96,500 (credit)
Explanation:
When Kodax Company purchased 92,000 shares of Grecco Co she had significant influence (more than 20% of shareholding in Grecco Co). We call this an Investment in an Associate.
The Investment in Associate is a Financial Asset to the Holder (Kodax Company) and an Equity Element to the Investee (Grecco Co) and should be recorded appropriately as above.
Consider the relative liquidity of the following assets:
a. The funds in a money market account
b. A $20 bill
c. A bond issued by a publicly traded company
d. Your car
Required:
Write down the assets in order of their liquidity, from most liquid to least liquid.
Answer:
1. A $20 bill
2. A bond issued by a publicly traded company
3. The funds in a money market account
4. Your car
Explanation:
Liquidity means that how easily an asset can be converted into cash.
1. Currency is the most liquid means of medium of exchange, so $20 bill is highly liquid asset.
2. A publicly traded bond can be converted into cash within a couple of days, so it is second most liquid asset.
3. The funds invested in the money market can be withdrawn within agreed period of time which can be in months or days so it can be at seconf or third most liquid asset.
4. A car can take more than a month to locate a customer to sell it at appropriate price so it is the least liquid asset.
On January 1, 2019, Nash Corporation granted 9,600 options to key executives. Each option allows the executive to purchase one share of Nash’s $5 par value common stock at a price of $21 per share. The options were exercisable within a 2-year period beginning January 1, 2021, if the grantee is still employed by the company at the time of the exercise. On the grant date, Nash’s stock was trading at $24 per share, and a fair value option-pricing model determines total compensation to be $438,000.
On May 1, 2021, 7,440 options were exercised when the market price of Culver’s stock was $30 per share. The remaining options lapsed in 2023 because executives decided not to exercise their options.
Prepare the necessary journal entries related to the stock option plan for the years 2019 through 2023.
Answer:
Dec 31 2019
Dr Compensation Expenses 219,000
Cr Paid in Capital- Stock Options 219,000
Dec 31 2020
Dr Compensation Expenses 219,000
Cr Paid in Capital- Stock Options 219,000
Dec 31 2021
Dr Cash 256,200
Dr Paid in Capital- Stock Options 339,450
Dr Common Stock 37,200
Cr Paid in capital in excess of par common stock 632,850
Dec 31, 2023
Dr Paid in capital stock options 98,550
Paid in capital Expired Stock Options 98,550
Explanation:
Nash Corporation
Dec 31 2019
Dr Compensation Expenses 219,000
Cr Paid in Capital- Stock Options 219,000
( 438,000/2 years)
Dec 31 2020
Dr Compensation Expenses 219,000
Cr Paid in Capital- Stock Options 219,000
Dec 31 2021
Dr Cash 256,200
(219,000+37,200)
Dr Paid in Capital- Stock Options 339,450
Dr Common Stock 37,200
Cr Paid in capital in excess of par common stock 632,850
Dec 31, 2023
Dr Paid in capital stock options 98,550
(438,000×22.5%)
Paid in capital Expired Stock Options 98,550
Computation of Paid in capital stock options
438,000×77.5%= $339,450
Common stock 7,440 X 5 per share
= 37,200
Stock options redeemed 7,440/9,600= 77.5%
An end-of-aisle price promotion changes the price elasticity of a good from −2 to −3. Suppose the normal price is $34, which equates marginal revenue with marginal cost at the initial elasticity of –2. What should the promotional price be when the elasticity changes to –3? (Hint: In other words, what price will equate marginal revenue and marginal cost?)
Answer:
MC = $17
P = $25.5
Explanation:
We proceed as follows;
Firstly calculate MC when e = -2, where MR = MC
(P-MC) / P = 1 / IeI
Here P = $34 and e = -2
(34 - MC) / 34= 1/ I-2I
(34 - MC) / 34= 1 / 2
78-2MC = 34
2MC = 34
MC = 34/2
MC = 17
Now, as we have MC, we will calculate the new price when e = -3
(P-MC) / P = 1 / IeI
(P - 17) / P = 1 / I-3I
(P - 17) / P = 1 / 3
3P -51 = P
2P = 51
P = 51/2
P = 25.5
Suppose that there is a French shipbuilder that imports American made aluminum for parts in its ships. The French shipbuilder needs to purchase aluminum from the American producer for $100,000. Question: At the equilibrium exchange rate, how much does it cost to purchase $100,000 worth of aluminum from the American producer
Answer:
€67,000
Explanation:
The computation o the cost is shown below:
But before that first we have to determine the exchange rate at which the quantity demanded equal to quantity supplies
As we can see that from the table $1.5 per euro exchange rate, the quantity demanded equal to quantity supplied
That means € 1 = $ 1.5
So,
$1 = € 1 ÷ 1.5
So,
Euro exchange rate = €0.67 per dollar
Now
Worth of exchange is
= $100,000 × € 0.67 per dollar
= €67,000
Assume that the full-employment level of output is $5000 billion and the natural unemployment rate is 5%. Suppose the current unemployment rate is 8%. What would be the current level of output according to Okun's law (when the Okun's law coefficient is 2)?
Answer:
$4700 Billion
Explanation:
Solution
Given that:
Assume that full-employment level of output is =$5000 billion
Natural employment rate is =5%
Current unemployment rate = 8%
Now,
We find the current level of output according to Okun's law when the Okun's law coefficient is 2 which is given below:
2 (unemployment rate -natural unemployment) = potential GDP - actual GDP/potential GDP *100% this is known as the Okun's law
Thus
2( 8 - 5 ) = 5000 - actual GDP / 5000 * 100
or (6 * 5000 ) / 100 = 5000 - actual GDP = $4700 Billion
or
300 = 5000 - actual GDP
Hence, the actual GDP or current output = 5000 - 300 = 4700 $ billion
In October, Pine Company reports 21,000 actual direct labor hours, and it incurs $118,000 of manufacturing overhead costs. Standard hours allowed for the work done is 20,600 hours. The predetermined overhead rate is $6.00 per direct labor hour. Compute the total overhead variance.
Answer: $5,600 Favorable
Explanation:
Total Overhead Variance is a method of measuring if the company is spending more than it is supposed to on overhead. It checks this by computing the difference between the Actual Overhead spent and the Budgeted/ Standard Overhead that it was supposed to spend.
If the Actual Overhead is more than the Standard Overhead the Variance is Negative, if the reverse is true then the Variance is Positive.
The formula for the Variance given the details in the question is,
Total Overhead Variance = Standard total Overhead - Actual Overhead
= (Standard hours * Pre-determined Overhead rate) - Actual Hours
= ( 20,600 * 6) - 118,000
= 123,600 - 118,000
= $5,600
The Standard Total Overhead is more than the Actual Total Overhead so the Variance is Positive as Pine Company spent less than it thought it would.
Managers can use CSR and sustainability information as important feedback to guide decision making in a variety of areas. Which of the following areas is least likely to be impacted by this feedback?
a. cost control decisions
b. FASB compliance with U.S. GAAP
c. strategic and operational areas
d. resource allocation decisions
Answer:
Option B. FASB compliance with U.S. GAAP
Explanation:
Because FASB is an independent body and publishes amendmends in Accounting standards which are internationally accepted so it has nothing to do with the US GAAP. Our decision making impact can be seen on the matters that are dependent on us not on the things we don't have control of or if they independent body. So the least impacted would be FASB compliance with US GAAP.
Whereas the rest of options are controlled by the managers so they can be easily influenced by the decision making power of the managers.
