Answer:
$12,000 gain
Explanation:
From the above information given the yen has depreciated relative to the dollar amount between the date of the transaction and the date of payment.
The Amount of the gain will be:
Price = 300,000
Direct exchange rate( 1 yen )= $1.17
Change in exchange rate ( 1 yen)= $1.21
Hence:
($1.21x 300,000) – ($1.17x 300,000)
=$363,000-$351,000
=$12,000 gain
Joanna was laid off from her job 11 months ago. After searching for a job for months, Joanna finds a job but is only offered part-time work. Joanna would rather be working full-time. Economists would classify Joanna as
Answer:
Underemployed.
Explanation:
This is basically explained as not having enough payed job or working part time; it is also explained to not be usually able to maximize your skills or bring the best in you in the nearest future. In some cases it is a situation of insufficient employment pattern towards a skilled man or a worker in any field that is been presented as the case may be.
This can be seen in a part-time job despite having a burning passion for full time work, and also over-qualification.
Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2018.Power Drive has the following transactions affecting stockholders' equity in 2018.March 1 Issues 58,000 additional shares of $1 par value common stock for $55 per share.May 10 Repurchases 5,300 shares of treasury stock for $58 per share.June 1 Declares a cash dividend of $1.65 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.)July 1 Pays the cash dividend declared on June 1.October 21 Reissues 2,650 shares of treasury stock purchased on May 10 for $63 per share.Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2018: Common Stock, $100,000; Additional Paid-in Capital, $4,800,000; and Retained Earnings, $2,300,000. Net income for the year ended December 31, 2018, is $630,000.Required:Prepare the statement of stockholders’ equity for Power Drive Corporation for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
Answer and Explanation:
The Preparation of statement of stockholders’ equity is shown below:-
Statement of Stockholder's Equity
Power Drive Corporation
For the year ended December 31, 2018
Particulars Common Additional Retained Treasury Total
stock paid in Earning Stock Stockholder
capital equity
Jan 1 Balance 100,000 $4,800,000 $2,300,000 0 $7,200,000
Issued common
stock 58,000 $3,132,000 0 0 $3,190,000
(58,000 × $1) (58,000 × $54)
Purchase treasury
stock -$307,400 -$307,400
(5,300 × $58)
Dividends -$251,955 -$251,955
((100,000 + 58,000 - 5,300) × $1.65)
Sale of Treasury
stock $13,250 $153,700 $166,950
(2,650 × $5) (2,650 × $58)
Net Income $630,000 $630,000
Balance,
December
31 158,000 $7,945,250 $2,678,045 -$153,700 $10,627,595
Total Stockholder's equity is
= Common stock + Additional paid in capital + Retained earnings - Treasury stock
= 158,000 + $7,945,250 + $2,678,045 - $153,700
= $10,627,595
Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred.
Sept. 6 Purchased calculators from Blossom Co. at a total cost of $1,750, terms n/30.
9 Paid freight of $50 on calculators purchased from Blossom Co.
10 Returned calculators to Blossom Co. for $58 credit because they did not meet specifications.
12 Sold calculators costing $510 for $700 to Fryer Book Store, terms n/30.
14 Granted credit of $35 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $25.
20 Sold calculators costing $680 for $880 to Heasley Card Shop, terms n/30.
SHOW ALL WORK LIKE A JOURNAL ENTRY SHOULD LOOK.
Answer:
See the journal and the explanation underneath each transaction below.
Explanation:
The journal entry will look as follows:
Date Details Dr ($) Cr ($)
Sept. 06 Merchandise Inventory 1,750
Accounts payable 1,750
To record purchase of calculators on account.
Sept. 09 Merchandise Inventory 50
Cash 50
To record Freight paid on purchase of Merchandise Inventory.
Sept. 10 Accounts payable 58
Merchandise Inventory 58
To record calculator returned Blossom Co.
Sept. 12 Accounts Receivable 700
Sales 700
To record sale of calculators on account.
Sept. 12 Cost of goods sold 510
Merchandise Inventory 510
To transfer cost of calculators sold.
Sept. 14 Sales return and discounts 35
Accounts receivable 35
To record return of calculator sold which was not ordered.
Sept. 14 Merchandise Inventory 25
Cost of goods sold 25
To record cost of goods sold that was returned.
Sept. 20 Accounts Receivable 880
Sales 880
To record calculators sold on account.
Sept. 20 Cost of goods sold 680
Merchandise Inventory 680
To record cost of goods sold.
Assume that the public in the small country of Sylvania does not hold any cash. Commercial banks, however, hold 10 percent of their checking deposits as excess reserves, regardless of the interest rate. In the questions that follow, the "money multiplier" is given by 1 / (RR + ER ).
Where
RR = the percentage of deposits that banks are required to keep as reserves
ER = the percentage of deposits that banks voluntarily hold as excess reserves
Consider the balance sheet of one of several identical banks:
Assets Liabilities and Net Worth
Reserves 400 Checking Deposits 2,000
Loans 1,600 Net Worth 0
Total Assets 2,000 Liabilities and Net Worth 2,000
The required reserve ratio in this economy is _________%. (Enter your response as an integer.)
If the total money stock (supply) is $600,000, the total amount of reserves held in the banking system is_____ $
Answer and Explanation:
The computation is shown below:
(1) The required reserve ratio is
= Required reserves ÷ Checkable deposit
where,
Required reserves
= Total reserves - Excess reserves
= 400 - 2,000 × 10%
= $400 - $200
= $200
And, the checkable deposit is $2,000
So, the required reserve ratio is
= $200 ÷ $2,000
= 10%
(2) Now the total amount of reserves is
But before that first we have to determine the money multiplier is
Money multiplier (MM) = 1 ÷ (ER + RR)
= 1 ÷ (0.10 + 0.10)
= 1 ÷ 0.20
= 5
Now
Monetary base (MB) is
= Money stock ÷ Money multiplier
= $600,000 ÷ 5
= $120,000
And as we know that
Monetary base = Currency + Reserves, and Currency (i.e held by public) = 0
So,
Reserves = Monetary base = $120,000
Business process design (BPD) is also adequately named the following except:__________.
a. Reengineering
b. Business process innovation
c. Business process engineering
d. Downsizing or restructuring
g A statement describing how the world is a. is a normative statement. b. is a positive statement. c. would only be made by an economist speaking as a policy adviser. d. would only be made by an economist employed by the government.
Answer:
b. is a positive statement
Explanation:
Positive statements describes what is and not ones personal opinion or value judgements.
An example of a positive statment is when prices increase, demand falls.
A normative statement describes value judgement and it is not based on empirical evidence.
An example of a normative statment is the government ought to increase prices of junk food so people can eat more healthy food.
I hope my answer helps you
The country of Rainbows exports seeds to the country of Farmington. Information for the quantity demanded (Qd) and the quantity supplied (Qs) for each country, in a world without trade, are given in the tables below.
Price ($) Qd Qs
40 150 120
50 130 130
60 110 150
70 100 170
80 90 180
Farmington:
Price ($) Qd Qs
40 310 190
50 300 220
60 290 250
70 280 280
80 270 310
What is the equilibrium price and quantity for each country?
Answer:
Rainbows :
Equilibrium price : $50
Equilibrium quantity: 130
Farmington
Equilibrium price : $70
Equilibrium quantity: 280
Explanation:
Equilibrium price is the price where the quantity demanded equals the quantity supplied.
Equilibrium quantity is the quantity at which quantity demanded is equal to the quantity supplied.
I hope my answer helps you
Oriole Distribution Co. has determined its December 31, 2020 inventory on a LIFO basis at $1007000. Information pertaining to that inventory follows: Estimated selling price $1050000 Estimated cost of disposal 43000 Normal profit margin 123000 Current replacement cost 927000 Oriole records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2020, the loss that Oriole should recognize is
Answer:
At December 31, 2020, the loss that Oriole should recognize is $123,000
Explanation:
Given:
Estimated selling price = $ 1,050,000
Estimated cost of disposal = $43,000
Normal profit margin = $123,000
Current replacement cost = $927,000
Net realizable value of the inventory = Estimated selling price - Estimated cost of disposal
Net realizable value = $1,050,000 - $43,000 = $1,007,000
Replacement cost = $927,000
Net realizable value - Normal profit = $1,007,000 - $123,000 = $884,000
The replacement cost will be taken as the market value of the inventory because it is higher than the floor (net realizable value - normal profit) and lower than ceiling (net realizable value).
Cost of inventory = $1,007,000
Loss to be recognized using lower of cost or market rule = Cost - market value
= $1,007,000 - $884,000 = $123,000
Heidi Ganahl says Camp Bow Wow promotes a scrappy "we-can-conquer-all" work attitude that helps individuals overcome challenges. This attitude is especially useful for businesses that exist within:_____
Answer:
Simple environments
Explanation:
Answer:
Simple enviroments
Explanation:
At December 31, 2010, Aaliyah Company reports the following results for its calendar year.
Cash sales........... $1905,000
Credit sales......... 5682000
In addition, its unadjusted trial balance includes the following items
Accounts receivable $1,270,100 debit
Allowance for doubtful accounts 16,580 debit
Required
1. Prepare the adjusting entry for Aaliyah Co. to recognize bad debts under each of the following independent assumptions:
a. Bad debts are estimated to be 1.5% of credit sales.
b. Bad debts are estimated to be 1% of total sales.
c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible.
2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2010, balance sheet assuming that an aging analysis estimates that 5% of year-end accounts receivable are uncollectible.
Answer:
1.
Debit Credit
31-Dec-10
(a) Bad debt Expense A/c 85,230
To Allowance for Doubtful Accounts A/c 85,230
(b) Bad debt Expense A/c 75,870
To Allowance for Doubtful Accounts A/c 75,870
(c) Bad debt Expense A/c 80,085
To Allowance for Doubtful Accounts A/c 80,085
2.
Current Assets Amount in $ Amount in $
Account Receivables 1,270,100
Less: Allowance for doubtful accounts -85,230 1,184,870
Explanation:
1. In order to prepare the adjusting entry we would have to make the following calculations:
(a) Bad debts estimated =1.5% on Credit sales =$5682,000 *1.5% =$85,230 (b) Bad debts estimated =1% on Total sales =($5682,000 +$ 1905,000) *1% =$75,870
(c ) Bad debts estimated =5% on year end receivables + Debit Balance =5% *1270100 +16580 =$80085
Debit Credit
31-Dec-10
(a) Bad debt Expense A/c 85,230
To Allowance for Doubtful Accounts A/c 85,230
(b) Bad debt Expense A/c 75,870
To Allowance for Doubtful Accounts A/c 75,870
(c) Bad debt Expense A/c 80,085
To Allowance for Doubtful Accounts A/c 80,085
2. Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2010, balance sheet as follows:
Current Assets Amount in $ Amount in $
Account Receivables 1,270,100
Less: Allowance for doubtful accounts -85,230 1,184,870
Among the best-known companies that use customer satisfaction surveys to evaluate service quality in various industries is:___________
a) J.D. Power and Associates
b) McDonald’s
c) American Express
d) Alaska Airlines
e) None of the above"
Answer: a) J.D. Power and Associates
Explanation: As there is an undue emphasis on measuring objective output performance by companies and organizations, data is collected and analysed. This data helps measure customer satisfaction which is a major predictor of repurchase of products or services. However, customer satisfaction is to a greater extent, largely influenced by performance evaluations of product, of quality, and of value. J.D. Power and Associates, a marketing firm is well known among the best-known companies as one that uses customer satisfaction surveys to evaluate service quality in various industries. Through its automotive research, it collects consumer responses for a variety of surveys which it uses to award car models rankings.
At Jose's Bakersfield Espresso, Jose charges $3.50 for an average cup of espresso. If his fixed cost (salary, insurance, etc.) are $100,000 a year, and the variable cost for each cup of espresso are $1.25.
A) State the total fixed cost
B) State the variable cost
C)State the price
D) Given the available data, at what quantity will Jose's Bakersfield Espresso break even?
Answer:
A. $100,000
B. $1.25 per unit
C. $3.5 per unit
D. Break even point = 44,444 units
Explanation:
Break even point denotes that level of sales at which total costs equal or even total revenues.
Contribution represents the sales revenue in excess of variable costs to cover up for fixed costs.
Break even point in units = [tex]\frac{Fixed\ Cost}{Contribution\ per\ unit}[/tex]
Contribution per unit = Selling price per unit - Variable cost per unit
Contribution per unit = $3.50 - $1.25 = $2.25
Break even point = [tex]\frac{100,000}{2.25}[/tex] = 44,444 units approx.
Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following:
a. In the first column at the right, indicate the nature of each account, using the following abbreviations: Asset - A Revenue - R Liability - L Expense - E None of the above - N
b. In the second column, indicate the increase side of each account by inserting "Dr." for Debit or "Cr." for Credit.
Account Type of Account Increase Side
(1) Supplies
(2) Fees Earned
(3) Retained Earnings
(4) Accounts Payable
(5) Salaries Expense
(6) Common stock
(7) Accounts Receivable
(8) Equipment
(9) Notes Payable
Answer & Explanation:
Account Type of Account Increase side
Supplies Asset Debit
Retained Earnings Capital Credit
Fees Earned Revenue Credit
Accounts Payable Liability Credit
Salary Expense Debit
Common Stock Asset Debit
Account Receivable Asset Debit
Equipment Asset Debit
Notes Payable Liability Credit
The Foundational 15 [LO10-1, LO10-2, LO10-3]
[The following information applies to the questions displayed below.]
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:
Direct materials: 5 pounds at $9 per pound $ 45
Direct labor: 3 hours at $14 per hour 42
Variable overhead: 3 hours at $9 per hour 27
Total standard cost per unit $ 114
The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,800 units and incurred the following costs:
Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.
Direct laborers worked 65,000 hours at a rate of $15 per hour.
Total variable manufacturing overhead for the month was $612,300.
rev: 11_20_2017_QC_CS-109672
Foundational 10-12
What variable manufacturing overhead cost would be included in the company’s planning budget for March?
Answer:
$540,000
Explanation:
The amount on of variable manufacturing overhead cost to be included in the company's planning budget for March is budgeted production units of 20,000 units multiplied by standard direct labor hours of 3 hours per unit multiplied by cost of direct labor hour used for variable overhead which is $9.
budgeted variable overhead cost for March=20,000*3*$9=$540,000.00
However, the actual cost of variable manufacturing overhead for the month is $612,300,hence an adverse variance of $72,300 is recorded ($612,300-$540,000)
Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley issued $1,400,000 of 5-year, 6% bonds at a market (effective) interest rate of 3%, receiving cash of $1,593,666. Interest is payable semiannually on April 1 and October 1.
Required:
a. Journalize the entries to record the following.
1. Issuance of bonds on April 1, Year 1.
2. First interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.)
b. Explain why the company was able to issue the bonds for $22,282,220 rather than for the face amount of $21,300,000.
Answer:
a. Journalize the entries to record the following.
1. Issuance of bonds on April 1, Year 1.
Dr Cash 1,593,666
Cr Bonds payable 1,400,000
Cr Premium on bonds payable 193,666
2. First interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.)
premium per coupon = $193,666 / 10 coupons = $19,366.60
Dr Interest expense 22,633.40
Dr Premium on bonds payable 19,366.60
Cr Cash 42,000
b. Explain why the company was able to issue the bonds for $1,593,666 (not $22,282,220) rather than for the face amount of $1,400,000 (not $21,300,000).
Since the bond's coupon rate was higher than the market rate, investors were willing to pay more for the bond (premium) than its face value. At $1,593,666, the actual returns will equal the returns of a $1,400,000 bond issued at market rate.
Krisp Systems decides to move production to a developing country where they are free to pump pollutants into the atmosphere without legal restriction. By doing this, the company is contributing to:_______
a. corporate social responsibility.
b. corruption.
c. cultural relativism.
d. the global tragedy of the commons.
e. sustainability
Answer: the global tragedy of the commons
Explanation:
The tragedy of the commons is a term that is used to refer to a situation whereby resources that are held in common by everyone but owned by no one and is therefore overused by individuals which results in degradation.
Krisp Systems moves production to a developing country where they can pump pollutants into the atmosphere without any legal restriction will lead to
global tragedy of the commons. Here, the global tragedy is that Krisp system will only work in their own interest and exploit the resources at the detriment of the people which will lead to pollution.
Answer:
d. the global tragedy of the commons.
Explanation:
The tragedy of the commons is a situation that arises as a result of the selfish interest of people who exploit the shared economic resources at the expense and detriment of other users of the resources in the environment. Activities which result in Tragedy of the commons would cause pollution of the environment, excessive consumption, as well as the depletion of resources. A way to curb this sort of exploitation is by the regulation of the activities of companies by the government. This would ensure that certain limits are not overstepped.
When Krisp Systems decides to bypass this regulation by moving to a developing country where they are free to pump pollutants into the atmosphere, they are in effect contributing to the tragedy of the commons.
Wells, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,000 2 1,230 3 1,450 4 2,190 a. If the discount rate is 9 percent, what is the future value of these cash flows in Year 4
Answer:
Total= $7,114.32
Explanation:
Giving the following information:
Cash Flow:
1 $ 1,000
2 1,230
3 1,450
4 2,190
Discount rate= 9%
To calculate the future value, we need to use the following formula on each cash flow:
FV= PV*(1+i)^n
Cf1= 1,000*1.09^4= 1,411.58
Cf2= 1,230*1.09^3= 1,592.89
Cf3= 1,450*1.09^2= 1,722.75
Cf4= 2,190*1.09= 2,387.1
Total= $7,114.32
Kela Corporation reports net income of $470,000 that includes depreciation expense of $83,000. Also, cash of $44,000 was borrowed on a 6-year note payable. Based on this data, total cash inflows from operating activities are: Multiple Choice $514,000. $553,000. $597,000. $387,000.
Answer:
The Total cash inflows from operating activities are $553,000
Explanation:
According to the given data, the Statement of Cash Flow from Operating Activities would be as follows:
Statement of Cash Flow from Operating Activities
Particulars Amount Total Amount
Income $470,000
Depreciation $83,000
Cash flow from operating activities $553,000
The cash of $44,000 was borrowed on a 6-year note payable. It is Financing Activity since note is long term
Therefore, total cash inflows from operating activities are $553,000
Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $156,000 of services on account. In 2021, the company wrote off uncollectible accounts of $6,300. By the end of 2021, cash collections on accounts receivable totaled $132,300. Pincus estimates that 10% of the accounts receivable balance at 12/31/2021 will prove uncollectible.
Required:
1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
Record the write-offs of allowance for uncollectible accounts during 2021.
Note: Enter debits before credits.
Event General Journal Debit Credit
1
record to recognize bad debt expense for 2021.
Note: Enter debits before credits.
Event General Journal Debit Credit
2
Answer: the answer is given below
Explanation:
It should be noted that the account receivable ending balance was calculated as:
Credit sales = 156,000
Less: collection of account= 132,300
Less: written off = 6,300
= 17,400
The bad debt expense was calculated as:
= (17,400 × 10%) + 6300
= (17400 × 0.1) + 6300
= 1740 + 6300
= 8040
Other explanation have been attached.
g Closser Corporation produces and sells two products. In the most recent month, Product M50S had sales of $43,000 and variable expenses of $11,980. Product H50G had sales of $56,000 and variable expenses of $14,750. The fixed expenses of the entire company were $46,180. The break-even point for the entire company is closest to:
Answer:
$63,260
Explanation:
Break-even point is the level of Activity where a firm neither makes a profit nor a loss.
Break even point (Dollars) = Fixed Costs / Contribution Margin Ratio
Contribution Margin Ratio
Is calculated as := Contribution / Sales
= (Sales less Variable Costs) / Sales
= ($43,000+$56,000-$11,980-$14,750) / $99,000
= $72,270/$99,000
= 0.73
Break even point (Dollars) = $46,180 / 0.73
= $63,260
Matt Winne, Inc. issued $ 1 comma 000 comma 000 of 9%, nine-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 6%, and the bonds pay interest semiannually.
1) How much cash did the company receive upon issuance of the bonds payable?
2) Prepare an amortization table for the bond using theeffective-interest method, through the first two interest payments. (Round to the nearest dollar.)
3) Journalize the issuance of the bonds on January 1, 2018, and the first and second payments of the semiannual interest amount and amortization of the bonds on June 30, 2018, and December 31, 2018. Explanations are not required.
4) Journalize the payment of the first semiannual interest amount and amortization of the bond on June 30, 2018
5) Journalize the payment of the second semiannual interest amount and amortization of the bond on December 31, 2018.
Answer:
1) $1,223,163
2) bond premium amortization coupon 1 = $8,305
bond premium amortization coupon 2 = $8,554
3)
January 1, 2018, bonds are issued
Dr Cash 1,223,163
Cr Bonds payable 1,000,000
Cr Premium on bonds payable 223,163
4)
June 30, 2018, first coupon payment
Dr Interest expense 36,695
Dr Premium on bonds payable 8,305
Cr Cash 45,000
5)
December 31, 2018, second coupon payment
Dr Interest expense 36,446
Dr Premium on bonds payable 8,554
Cr Cash 45,000
Explanation:
bonds price = PV of face value + PV of coupons
PV of face value = $1,000,000 / 1.03²⁰ = $553,675.75
PV of coupon payments = $45,000 x 14.8775 (annuity factor 3%, 20 payments) = $669,487.50
issue price = $553,675.75 + $669,487.50 = $1,223,163.25 ≈ $1,223,163
Dr Cash 1,223,163
Cr Bonds payable 1,000,000
Cr Premium on bonds payable 223,163
amortization coupon 1 = $45,000 - ($1,223,163 x 3%) = $45,000 - $36,695 = $8,305
amortization coupon 2 = $45,000 - ($1,214,858 x 3%) = $45,000 - $36,446 = $8,554
The main cause of downsizing, refocusing, and outsourcing during the latter part of the 20th century was: Group of answer choices (a) Developments in IT—especially the advent of the internet (b) A more turbulent business environment Both (a) and (b) Neither (a) nor (b)
Answer: Both (a) and (b)
Explanation:
Developments in IT—especially the advent of the internet
The latter 20th century saw many technological changes as the world evolved in IT. Markets that were not previously accessible became more accessible and many new products were created and flourished. The internet brought markets and people together and there was an immense opportunity for growth and success. This forced companies to adapt to the new environment because failure to take advantage on the new opportunities that IT offered could spell doom. Companies responded by downsizing to take advantage of better production technologies that required less people, they refocused their strategies to enable higher productivity and with IT making the world so interconnected, they were able to outsource production to cheaper places knowing that they could maintain regular contact with such place. These are but a few reasons why.
A more turbulent business environment.
The latter 20th century also saw a wave of turbulence in the business world. With a rise in nationalistic feelings and conflict that made acquiring raw materials harder such as the oil crises of the '70s and the 80s. This as well as the presence of more companies which led to increased competition forced some companies to engage in actions necessary for survival. They had to downsize, refocus and sometimes outsource to remain profitable.
Price serves as a a. rationing device. b. transmitter of information. c. means of determining who gets what of the available limited resources and goods. d. a and b e. all of the above
Answer:
e. all of the above
Explanation:
Price are an mechanism that serve to coordinate economic activity. They help coordinate economic decisions such as rationing, they transmit information, and they also help economic agents make decisions about what to sell, what to buy, what to exchange, and so on.
You’ve borrowed $23,072 on margin to buy shares in Ixnay, which is now selling at $41.2 per share. You invest 1,120 shares. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price changes to $41 per share.
a) Will you receive a margin call?b) How low can the price of Disney shares fall before you receive a margin call?
Answer:
(a) Since the percentage margin is more than maintenance margin, there would be no call
(b) A margin call would be received when the price is $15.26
Explanation:
(a) Total investment = $23,072 × [tex]\frac{100}{50}[/tex] = $46,144
Total shares = Total investment ÷ share price
= $46,144 ÷ $41.2 = 1,120
Value of share in market = new price × number of shares
= $41 × 1,120
= $45,920
Value of equity = Value of share in the market - borrowed cash
= $45,920 - $23,072
= $22,848
Percentage margin = Value of equity ÷ Value of shares
= ($22,848 ÷ $45,920) × 100%
= 49.76%
(b) Total number of shares = 1,120
Assumed value of shares = $1,120X
Borrowed fund = $23,072
Value of equity = $1,120X - $23,072
Margin = Value of equity ÷ Value of shares
0.35 = ($1,120X - $23,072) ÷ $1,120X
392X = $1,120X - $23,072
1512X = $23,072
X = $15.26
An advertising expenditure approach that initially formulates the advertising goals and defines the tasks to accomplish these goals is known as a(n) _____. Group of answer choices objective approach functional approach task approach percentage sale approach
Answer:
Option C. Task Approach
Explanation:
Task approach is the approach that is based on the goals that expenditure must achieve and helps in defining what the advertising goals must be and what must be the tasks for goals accomplishment.
The advertising expenditure that is based on the sales that the expenditure must generate is percentage sale approach and it is not the case here.
Objective Approach is based on the set objectives and hence helps in designing the marketing expenditure from each aspects which is again not the case here because only advertising expenses are considered here.
The Functional Approach is the dealing of the tasks of the company by separate independent functions which performs the task which is also not the case here.
Ben has two options this weekend. He could work at his job and earn $8 per hour for three hours, or he could go to an exhibit at the art museum for that three hours. A ticket for the event costs $30. What is the opportunity cost of the event?
Answer:
Opportunity cost= -$54
Explanation:
Giving the following information:
He could work at his job and earn $8 per hour for three hours, or he could go to an exhibit at the art museum for those three hours. A ticket for the event costs $30.
The opportunity cost is the "cost" of not taking other alternatives.
Opportunity cost= total revenue - economic profit
Opportunity cost= -30 - 24= -$54
Cullumber Company issues $3.40 million, 20-year, 9% bonds at 98, with interest payable on December 31. The straight-line method is used to amortize bond discount. Collapse question part (a) Partially correct answer.
Prepare the journal entry to record the sale of these bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Entry field with correct answer
Answer:
Dr cash $3,332,000
Dr discount on bonds payable $68,000
Cr bonds payable $3,400,000
Explanation:
The cash proceeds from the bond issuance is 98% of the face value.
Cash proceeds=$3,400,000*98%=$3,332,000.00
This meant that the bond was issued at a discount of $ 68,000.00 ($3,400,000-$3,332,000).
In recording the bond issuance, the cash account is debited with the cash proceeds of $3,332,000 with the discount on bonds payable debited with $68,000 while bonds payable is credited with the face value of $3,400,000
gThe fact that flotation costs can be significant is justification for: maintaining a low dividend policy and rarely issuing extra dividends. a firm to issue larger dividends than their closest competitors. maintaining a high dividend policy. maintaining a constant dividend policy even when profits decline significantly. a firm to maintain a constant dividend policy even if they frequently have to issue new shares of stock to do so.
Answer:
Maintaining a low dividend policy and rarely issuing extra dividends.
Explanation:
This cost is said to be accumulated or generated by a company when dealing new security systems or organisation into the company. This happens in a registered or legal form of absorption of the said body. And this is been applied or shown in percentages during summation or analysis.
Many factors affect flotation which ranges from the type of issued securities, their size, and risks associated with the transaction. It is generally lower than those for issuing common shares. It is shown as the issuance of common shares typically ranges from 2% to 8%.
Identify whether each of the following examples belongs to Money aggregates (M1 or M2). If an example belongs in both, be sure to write it down.
a. Sean has $30,000 in a money market account.
b. Musashi has a roll of quarters that he just withdrew from the bank to do laundry.
c. Yvette has $7,000 in a two-year certificate of deposit (CD).
Any type of money that falls into the M2 category is, by definition, part of M1 as well.
a. True
b. False
Answer: 1. a) M2
b) M1 and M2
c) M2
2. b. False
Explanation:
1.
M1 is a type of definition of money by economists that seek to explain the circulation of money in the economy. It includes cash and cash equivalents that are easy to convert into cash. This includes actual physical cash as well as Demand Deposits.
M2 is the definition that follows after M1. M2 by definition includes all the types of cash in M1 as well as deposits less than $100,000, non Institutional Money Market Fund investments and savings deposits. It isn't as liquid as M1 but is very important in forecasting inflation.
The classifications therefore are,
a) M2. This is M2 as it is a Non Institutional Money Market investment by Sean.
b) M1 and M2. This is physical cash and as such is part of M1 and as stated, anything part of M1 is part of M2 as well.
c) M2. As a deposit less than $100,000, the $7,000 that Yvette has in the CD classifies as M2.
2. False.
Money that is part of M2 is not automatically part of M1. M1 includes only physical cash as well as Demand Deposits while M2 has other forms such as savings deposits and small time deposits. Money that is part of M1 is automatically part of M2 and not the other way around.
March 1 Paid monthly rent of $890. 3 Performed services for $100 on account. 5 Performed services for cash of $55. 8 Purchased equipment for $445. The company paid cash of $60 and the balance was on account. 12 Received cash from customers billed on March 3. 14 Paid wages to employees of $390. 22 Paid utilities of $54. 24 Borrowed $1,110 from Grafton State Bank by signing a note. 27 Paid $160 to repair service for plumbing repairs. 28 Paid balance amount owed from equipment purchase on March 8. 30 Paid $1,330 for six months of insurance. Journalize the transactions.
Answer:
Journal Entries
Date Account titles & explanations Debit Credit
Mar-01 Rent expense 890
To cash 890
Mar-03 Account receivable 100
To service revenue 100
Mar-05 Cash 55
Service revenue 55
Mar-08 Equipment 455
Cash 60
accounts payable 395
Mar-12 Cash 100
To account receivable 100
Mar-14 Wage expense 390
To cash 390
Mar-22 Utility expense 54
To cash 54
Mar-24 Cash 1,110
To notes payable 1,110
Mar-27 Repair & maintenance 160
To cash 160
Mar-28 Accounts payable 395
To cash 395
Mar-30 Prepaid Insurance 1,330
To cash 1,330
Explanation:
