Answer:
A) $704,000.
Explanation:
For computing the cash payments we need to calculate the following amounts which are as follows
Total purchases = cost of goods sold + ending inventory - opening inventory
= $720,000 + $188,000 - $200,000
= $708,000
Now cash payment to merchandise is
= Beginning account payable balance + purchased made - ending account payable balance
= $80,000 + $708,000 - $84,000
= $704,000
Hence, the correct option is A. $704,000
The Wall Street Journal reports that the rate on three-year Treasury securities is 1.22 percent and the rate on four-year Treasury securities is 1.4 percent. The one-year interest rate expected in three years, E(4r1), is 1.8 percent. According to the liquidity premium hypotheses, what is the liquidity premium on the four-year Treasury security, L4? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
Answer:
0.142%
Explanation:
We are required to find the liquidity premium on the four-year Treasury security (L4)
1R4 = 1.4%
1R3 = 1.22%
E(4r1) = 1.8%
1 + 1R4 = [{(1+1R3)^3} * (1+E(4R1) + L4)]^1/4
1 + 0.014 = [{(1 + 0.0122)^3) * (1+0.018 + L4)]^1/4
1.014^4 = [{(1 + 0.0122)^3) * (1+0.018 + L4)]
1.057187 = (1.0370483) * (1.018 + L4)
1.057187/1.0370483 = 1.018 + L4
1.0194192 = 1.018 + L4
L4 = 1.0194192 - 1.018
L4 = 0.00142
L4 = 0.142%
Hence, liquidity premium on the four-year Treasury security(L4) = 0.142%
After a tragic event in which an armed intruder storms into a mall and fatally shoots several people, the city of Belmonte institutes a law that prohibits any form of weapon in public retail establishments. This reaction would be an example of following which school of risprudential toucht? a. Sociological b. Historical c. Irrational Forces d. Natural Law e. Legal Realism
Answer: c. Irrational Forces
Explanation:
The Irrational Forces school of Jurisprudential thought explains that sometimes laws are passed due to some stimuli in the society that draws such a reaction from the society that the law makers pass a law under pressure
The law therefore does not have to be rational or based on reason. The law makers of Belmonte passing this law against firearms in public areas did this because of the public shooting. It therefore falls under this school of thought.
5. Mr. G has $15,000 to invest. He is undecided about putting the money into tax-exempt municipal bonds paying 7 percent annual interest or corporate bonds paying 9.5 percent annual interest. The two investments have the same risk. a) Which investment should Mr. G make if his marginal tax rate is 33 percent? b) Would your conclusion change if Mr. G’s marginal tax rate is only 15%?
Answer:
a. Municipal bond
b. Yes. To Corporate Bond.
Explanation:
Municipal bonds are tax exempt so the better option will be the one offering a higher return after it is adjusted for tax.
a. Corporate after-tax rate = 9.5% * ( 1 - 33%)
= 0.06365
= 6.4%
Municipal rate is higher at 7% and so is a better option.
b. Corporate after-tax rate = 9.5% * ( 1 - 15%)
= 0.08075
= 8.08%
Corporate bond return is now higher than Municipal bond so is a better option.
Answer:
a. Municipal bond
b. Yes. To Corporate Bond
Explanation:
You are considering a stock investment in one of two firms (Lots of Debt, Inc. and Lots of Equity, Inc.), both of which operate in the same industry. Lots of Debt, Inc. finances its $34.25 million in assets with $32.25 million in debt and $2.00 million in equity. Lots of Equity, Inc. finances its $34.25 million in assets with $2.00 million in debt and $32.25 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) Calculate the equity multiplier. (Round your answers to 2 decimal places.)
Answer:
Debt Ratio = Total Debt Total/ Assets
Equity Multiplier = Assets/Equity
Lots of DebtDebt Ratio
= 32.5/34.25
= 0.95
Equity Multiplier
= 34.25/2
= 17.13
Lots of EquityDebt Ratio
= 2/34.25
= 0.06
Equity Multiplier
= 34.25/32.25
= 1.06
_____refers to the quantity of a good or service that businesses are willing and able to provide.
a. Supply
b. Scarcity
c. Demand
d. Trade-off
Answer:
option a supply is the right answer
Our newly constructed retail space is projected to need a face lift in 7 years to keep up with changing tastes. Our projections are that the cost will be $2.5 mil. If we set aside a reserve for replacement our best return prospects for a safe investment (i.e. little risk to principle) suggest a 3% annual interest rate. How much should we deposit annually into that reserve account (sinking fund problem)
Answer:
Annual deposit = $326,265.88
Explanation:
The amount to be set aside annually to accumulate $2.5 million in 7 years time ca n be worked out using the future value of an ordinary annuity formula.
The formula is given as follows:
FV = A×( (1+r)^n - 1)/r).
A= FV/ ((1+r)^n - 1)/r
FV - Future value
A- annual deposit
n- number of years
r- rate of return
FV - $2.5 million
A- ?
n- 7
A=2,500,000 ÷ (1.03^7 - 1)/0.03 = 326,265.88
Annual deposit = $326,265.88
3. Beginning three months from now, you want to be able to withdraw $1,500 each quarter from your bank account to cover college expenses over the next three years. If the account pays .37 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next three years
Answer:
The total amount needed = $17,574.47
Explanation:
Total amount needed = Annuity payment * Present value annuity
When Present Value annuity = Annuity payment * [1 – [1/ (1 + r)^12] / r}
R = Rate of Interest = 0.37% = 0.0037
N= No. of Periods = 12(Quarters)
= Annuity payment * {[1 – [1/ (1 + 0.0037)12] / 0.0037}
= $1,500 * {[1 – (1/ 1.0037)12] / 0.0037}
= $1,500 * {[1 – (0.95664963507)] / 0.0037}
= $1,500 * {0.04335036493 / 0.0037}
= $1,500 * 11.716315
= $17574.4725
Hence, the total amount needed = $17,574.47
The agency relationship in corporate finance occurs:__________
Answer:
when the shareholders hire a manager to run their company.
Explanation:
An agency relationship in corporate finance is a situation whereby a party known as an agent is hired by another party which is the principal, to perform certain functions or services. Based on this question, the share holders are known as the principal while the manager act as the agent. The relationship is formed after the agent has agreed that he or she will represent the principal
ConAgra Foods is a global manufacturer of processed and packaged foods with revenues of $11 billion annually. It recently acquired Pinnacle Foods, which added iconic brands to its portfolio such as Birds Eye, Duncan Hines, Earth Balance, and Vlasic. Pinnacle Foods will continue to have control over its resources and distinct mission, and it will operate independently of ConAgra Foods. Pinnacle Foods is known as a(n) _______.
Answer:
wholly owned subsidiary
Explanation:
A wholly-owned subsidiary is a form of subsidiary arrangement, between two companies, whereby a company is completely owned or its whole stock is bought by another company often referred to as Parent Company after the arrangement or the agreement of the acquisition.
It is also characterized by having control over its resources and specific mission, also operates independently.
Hence, in this case, the right answer is a wholly owned subsidiary
Answer:
Strategic Business Unit
Explanation:
I'm taking the class now
Treasury Bonds are issued by the U.S. Government in:_______.I. bearer form.
II. book entry form.
III. minimum denominations of $100.
IV. minimum denominations of $10,000.
Answer:
minimum denominations of $100
Explanation:
These bonds are issued by the United States government in minimum denomination of a 100 dollars.
These bonds have their maturity periods to be greater than 20 years. Before they get to their period of maturity, these kind of bonds earn interest at certain periods. The owner of such a bond would earn an amount that is the same as the principal.
beyer company is considering the purchase of an asset for $250,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Assume that Beyer requires a 12% return on its investments. Compute the net present value of this investment. Should Beyer accept the investment
Answer:
Complete question is
Year Net cash flows
1 $65,000
2 $57,000
3 $81,000
4 $139,000
5 $38,000
6 $380,000"
Solution
Year (a)$ (b)$ (c=a*b)$
Year 1 65000 0.893 58045
Year 2 57000 0.797 45429
Year 3 81000 0.712 57672
Year 4 139000 0.636 88404
Year 5 38000 0.567 21546
$271,096
Totals
Total present value of cash inflow (a) $271,096
Total cash outflow (b) $250,000
Net Present Value (c=a-b) $21,096
Note:
A = Net Cash Flows
B = Present Value of 1 at 12%
C = Present Value of cash flows
b) Beyer company should accept investment due to positive net present value of $21,096
Bill’s Bakery is trying to decide if it should use all of its resources to make 12 dozen chocolate chip cookies or 10 dozen peanut butter kiss cookies. What is the trade off that Bill will make?
Answer:
The trade off Bill's Bakery will make will be using most of its resources in producing the product that would be more attractive to the customers while producing lesser of the less attractive product
Explanation:
The trade off that Bill will make will be using most of its resources in producing the product that would be more attractive to the customers while producing lesser of the less attractive product. this will be dependent on which product will be more beneficial to Bill's Bakery financial i.e based on customers depend .
A Trade off is a business exchange where by one benefit is given up for another because both cannot be compatible at a time
During the month of July, the company had the following activities: Issued 4,500 shares of common stock for $450,000 cash. Borrowed $38,500 cash from a local bank, payable in two years. Bought a building for $201,500; paid $53,500 in cash and signed a three-year note for the balance. Paid cash for equipment that cost $247,000. Purchased supplies for $10,600 on account. Prepare a classified balance sheet at July 31.
Answer:
classified balance sheet at July 31.
Assets
Non-Current Assets
Building $201,500
Equipment $247,000
Total Non-Current Assets $448,500
Current Assets
Supplies $10,600
Cash ($450,000 + $38,500 - $53,500 - $247,000) $188,000
Total Current Assets $198,600
Total Assets $647,100
Equity and Liabilities
Equity
Common Stock $450,000
Total Equity $450,000
Liabilities
Current Liabilities
Account Payable $10,600
Total Non Current Liabilities $10,600
Non-Current Liabilities
Note Payable ($38,500 + $148,000) $186,500
Total Non Current Liabilities $186,500
Total Liabilities $197,100
Total Equity and Liabilities $647,100
Explanation:
A Balance Sheet is a Financial Statement report that shows the Assets, Liability and Equity balances as at the end of the Reporting period.
Regina Corp. is a property and casualty insurance company in its third year of operations and has a net loss of $100,000. Regina had taxable income of $10,000 and $30,000 in its first and second year of operations, respectively. Regina expects to be profitable within the next year. Regina is allowed to carry back the net operating loss to previous years. The enacted income tax rate is 40%. The income tax benefit from the NOL carryforward shown on Regina's income statement in the year of the loss is
Answer:
$24,000
Explanation:
Total Taxable income of first and second year = $10,000 + $30,000 = $40,000
Net loss in 3rd year = $100,000
Net Operating loss carry back = Regina Taxable income Total of first and second year of operations
Net Operating loss carry back = $40,000
Net Operating loss Carry forwards = Net loss - Net Operating loss carry back
Net Operating loss carry forward = $100,000 - $40,000
Net Operating loss carry forward = $60,000
Income tax rate = 40%
Income tax benefit from the Net Operating loss carry forward = Net Operating loss carry forward * Income tax rate
Income tax benefit from the Net Operating loss carry forward = $60,000 * 40%
Income tax benefit from the Net Operating loss carry forward = $24,000 .
5. Which is an external users of accounting?
a. shareholders
b. prospective investors
c. managers
d. None of the above.
Answer:
Its b (prospective investors)
Diseconomies of scale arise primarily because: of the difficulties involved in managing and coordinating a large business enterprise. the short-run average total cost curve rises when marginal product is increasing. beyond some point marginal product declines as additional units of a variable resource (labor) are added to a fixed resource (capital). firms must be large both absolutely and relative to the market to employ the most efficient productive techniques available.
Answer: of the difficulties involved in managing and coordinating a large business enterprise
Explanation:
Diseconomies of scale is when there's an increases in average total cost used during the production of a product due to the expansion in size of the firm in the longrun.
The main factor that can be attributed to diseconomies of scale is when there's difficulty in the effective and efficient control and coordination of the operations of a firm due to its growth.
Diseconomies of scale arise primarily because of the difficulties involved in managing and coordinating a large business enterprise.
Diseconomies of scale arise primarily because of the difficulties involved in managing and coordinating a large business enterprise. Option (b) is correct.
Diseconomies of scale can happen for a number of reasons, but the inability to effectively manage an expanding staff is a common culprit. A company's internal overcrowding impact is frequently the main factor contributing to scale-related inequities.
Economies of scale result in reduced production costs and higher production while diseconomies of scale result in higher production costs.
Therefore, Option (b) is correct.
Learn more about diseconomies, here;
https://brainly.com/question/31181577
#SPJ6
The responsiveness of the organization as a whole to stakeholder intelligence consists of the initiatives that the firm adopts to ensure that it abides by or exceeds stakeholder expectations and has a positive impact on _____________ issues.
Answer:
Serious
Explanation:
Which of the following best defines rational behavior? Group of answer choices A. Analyzing the total gains from a decision. B. Improving net gain by pursuing decisions as long as the marginal benefits exceed the marginal costs. C. Seeking to gain by choosing to undertake actions as long as the marginal costs exceed the associated marginal benefits. D. Seeking to maximize total gain regardless of cost.
Answer:
B. Improving net gain by pursuing decisions as long as the marginal benefits exceed the marginal costs.
Explanation:
A rational consumer continues consumption as long as marginal benefit derived from consumption exceeds marginal cost.
Marginal benefit is the increase in benefit as a result of consuming an extra unit of a product.
Marginal cost is the increase in cost as a result of consuming one more unit of a product
For example, the marginal benefit from consuming a 5th bottle of a drink is $5. The cost of the bottle is $4. The rational consumer can increase benefit by consuming one extra bottle of the drink. If the cost of the drink were $7, a rational consumer would not consume the 5th bottle because marginal cost exceeds marginal benefit
__________ can be used to create a perfect inflation hedge.
a. Gold
b. Real estate
c. TIPS
d. The S&P 500 Index
e. None of the options are correct.
Answer:
c. TIPS
Explanation:
TIPS which is an acronym for Treasury inflation-protected securities is a kind of bond peculiar to the United States which is specifically formulated to shield or safeguard investments during the inflation period over a given time. It dynamically adjusts as inflation occurs, thereby protects the direct cost of investment and its rates of returns.
Hence, in this situation, the correct answer is option C. TIPS
Fred wants to take out a loan. He can afford to make monthly payments of 100 dollars and wants to pay the loan off after exactly 20 years. What is the maximum amount that Fred can afford to borrow if the bank charges interest at an annual rate of 10 percent, compounded monthly
Answer:
$10,390.96
Explanation:
The formula for the principal amount is
P = A (1 - (1-r)^n / r)
From the given data, A = 100
r = 10 / 100 * 12 = 10 / 1200 = 0.0083
n= 20 * 12 = 240
Now substitute this data in the formula
P = 100 ( 1 - (1 + 0.0083)^-240 / 0.0083)
P = 100 ( 1 - (1/7.27016) / 0.0083)
P = 100 ( 1 - 0.13755 / 0.0083)
P = 100 ( 0.86245 / 0.0083)
P = 100 * 103.90964
P = $10,390.964
P = $10,390.96
The maximum amount that Fred can afford to borrow if the bank charges interest at an annual rate of 10 percent, compounded monthly is $10,390.96
Answer:
Fred can afford to borrow 10362 dollars
Prices of existing bonds move _________ as market interest rates move _________.
a) down, down
b) up, down
c) Bond prices don't move as market interest rates move.
Answer:
The answer is B.
Explanation:
Bonds prices and market interest rates are negatively correlated i.e if the market interest rate(yield-to-maturity) of a bond goes up, the price of the bond goes down and if the yield-to-maturity(interest rate) rate goes down, the price of the bond goes up.
Usually, bonds with high interest rate are riskier than bonds with low interest rate.
On January 1, 2005, Marcy Company purchased 1,000 shares of its own common stock for $22,000. On February 1, 2005, they sold 600 of these shares for $25 per share, and on March 1, 2005, they sold the remaining 400 shares for $15 per share. The journal entry required on March 1 will include: A) credit Contributed Capital, Treasury Stock, $1,800 B) debit Retained Earnings for $1,800 C) debit Retained Earnings for $2,800 D) debit Contributed Capital, Treasury Stock, $2,800 E) debit Contributed Capital, Treasury Stock, $1,800
Answer: E) debit Contributed Capital, Treasury Stock, $1,800
Explanation:
Treasury stock was bought at price of;
= 22,000/1,000
= $22
Sold 600 for $25 so they made a profit of;
= (25 - 22) * 600
= $1,800
This gain was sent to Contributed Capital, Treasury Stock.
Now that stock is to be sold on March 1, it is sold at $15. Loss from initial purchase is;
= ( 22 - 15) * 400
= $2,800
Debit Contributed Capital, Treasury Stock of the maximum amount it can be debited of to reflect this loss which would be $1,800 which was gained in the February purchase. The rest of the loss will go to Retained earnings.
Common arguments against corporate social responsibility argue that: Select one: a. CSR detracts from the fundamental economic role of businesses. b. CSR does not achieve a triple bottom line. c. there is no positive relationship between CSR and shareholder returns. d. there are no financial benefits of social or environmental initiatives.
Answer: CSR detracts from the fundamental economic role of businesses.
Explanation:
Corporate social responsibility simply refers to the responsibility of businesses to their environment. This maybe in the form of employment opportunities, scholarships, provision of infrastructure etc.
Common arguments against corporate social responsibility argue that CSR detracts from the fundamental economic role of businesses. Critics believe the main role of business is to make profit and CSR detracts from that.
Define how translational research plays a role in influencing policy?
Answer:
It helps in thinking new ways and determining new insights in order to embed them in different policy options
Explanation:
Translational Research is the process of applying basic clinical knowledge to ascertain medical needs and improve health outcomes by involving in clinical trials. There are many areas where treatment and cures of certain sickness are not yet discovered. When applying translational research, we try to understand situations and involve in new areas of research work by attempting clinical trials. This provides new insights and ways of thinking which then has an influence on making key policy decisions.
Trey, Inc. reports a taxable loss of $140,000 for 2018. Its taxable incomes for the years 2015 through 2017 respectively were $25,000, $35,000, and $40,000. Trey has no temporary or permanent differences. Trey elects the carryback provision. Trey expects taxable income in future years and has a tax rate of 30% for all periods affected. What should Trey report as Net Loss on its 2018 income statement?
Answer:
$117500
Explanation:
Taxable loss = $140000 for 2018
Taxable incomes : $25000 for 2015, $35000 for 2016, $40000 for 2017
tax rate = 30%
Net loss on 2018 income statement can be offset by the taxes paid on taxable income for 2 years prior to 2018 ( i.e 2016 and 2017 )
first calculate taxes on taxable incomes for 2016 and 2017
$35000 * 30% = $10500
$40000 * 30% = $12000
hence taxable profit = 10500 + 12000 = $22500
Net loss to be reported on 2018 income statement
= $140000 - $22500 = $117500
On January 10 of the current year, Mary transfer to Green Corporation a machine purchased three years ago for $100,000. On the transfer date, the machine has a $60,000 adjusted basis and a $10,000 FMV. Mary receives all 100 shares of Green stock, worth $100,000, and a two-year Green note worth $10,000. Required:a. What are the amount and character of Mary's recognized gain or loss? b. What is Mary's basis in the stock and note? When does her holding period begin? c. What are the amount and character of Green's gain or loss? d. What is Green's basis in the machine? When does Green's holding period begin?
Answer:
First of all, I believe that their is a mistake on the question, since the FMV of the machine should be $100,000, not $10,000, or else it wouldn't make much sense.
a. What are the amount and character of Mary's recognized gain or loss?
ordinary income of $10,000
The two year note is considered boot and therefore, Mary must report it as ordinary income.
b. What is Mary's basis in the stock and note? When does her holding period begin?
Mary's basis in the stock is $60,000 (the basis of the machine), and $0 for the note (recognized as ordinary income). Her holding period began three years ago when the machine was purchased.
c. What are the amount and character of Green's gain or loss?
Under a carryover basis limit rule (for a section 351 exchange), Green Corporation's basis is reduced, but it not considered a loss or a gain. The basis of the exchanged stock must equal the carryover basis of the property given in exchange.
d. What is Green's basis in the machine? When does Green's holding period begin?
Same as Mary's, the basis is $60,000 and the holding period is 3 years. Since Mary owns 100% of Green Corporation as a result of the exchange, her basis and the corporation's basis will be the same.
You own an oil pipeline which will generate $2 million cash return over the coming year. The pipeline’s operating costs are negligible, and it is expected to last for a very long time. Unfortunately, the volume of oil shipped is declining, and cash flows are expected to decline by 4 % per year. The discount rate is 10 %. What is the PV of the pipeline’s cash flows if its cash flows are assumed to last forever?
Answer:
$14,285,714.29
Explanation:
we can use the discounted cash flow model formula for a perpetuity:
PV of infinite cash flows = cash flow in 1 year / (required rate of return - growth rate)
cash flow in 1 year = $2,000,000required rate of return = 10%growth rate = -4%PV of infinite cash flows = $2,000,000 / (10% + 4%) = $14,285,714.29
This formula is used to determine the present value of a firm's future cash flows.
Read the description to determine which type of illegal or unethical price strategy is used. a. A manufacturer favors Retailer A, offering the retailer price discount allowances, but denies these benefits to Retailer B, although it sells the same quantity of the products.b. Push Nonsales items only- A computer store uses the promises of a great value laptop to attract customers into the store while not intending to sell the product but aggressively push more expensive models insteadc. Sell below store’s cost- A large retailer is offering buy one, get one free on popular brand products, selling the two products for less than their cost.d. Harm Competitor’s Business- A retail giant radically cuts prices to drive its competition out of business and monopolize the markete. Horizontal Collusion-Airlines work together to keep airfares artificially high across the country.1. Loss leader pricing2. Bait and switch3. Predatory pricing4. Price discrimination
Answer:
Option A- 4. Price discrimination
Option B - 1. Loss leader pricing
Option C - 2. Bait and Swtich
Option D - 3. Predatory pricing
Explanation:
Price discrimination is a form of unethical pricing strategy by the producer or supplier to attract consumers whereby similar commodities are traded at varying prices to different customers by the same producer. Hence, the perfect illustration is option A
Loss Leader Pricing is another form of unethical pricing technique whereby a commodity is sold or advertised by a producer promotes other sales of more high yield commodities. Hence, the best illustration is option B.
Bait and Switch is a form of illegal pricing strategy whereby the producer promotes commodities of lower cost to greater quality ratio, however, it is such a product tends to be elusive one potential buyer's approach. The perfect example is option C
Predatory pricing is an unethical pricing technique whereby the producer intentionally priced commodities produced such that other customers are unable to compete. The perfect example is option D.
The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in a. formulating theories about economic events. b. performing an experiment in an economic system. c. applying mathematical methods to economic analysis. d. analyzing available data.
Answer:
b. performing an experiment in an economic system.
Explanation:
In contrast to scientific experimentation, whereby connections and differences can be measured between two or more variables. In economics, theory and observation are more difficult than in sciences such as physics due to the difficulty in performing an experiment in an economic system, as human beings' opinions change over time, due to dynamism in human society.
Hence, in this case, the correct answer is option
When Apple introduced its iPhone 11 with Slofie (slow-
motion selfie) capability and a high price tag, it used_______ to avoid direct competition with Samsung,
Google, and others.
Answer:
trademark
Explanation:
When the announcement was made about the iPhone 11's new Slofie (slow- motion selfie) capability, Apple also said it had applied for a US trademark on Slofie.
Note, a trademark is a legally issued right for a symbol, phrase, or word to be used to denote a specific product or service, thus it gives a right of ownership to the trademark applicant. Therefore, it limits direct competition from others.
Answer:
Trademark
Explanation:
A trademark is an intellectual property which consists of a particular design aimed at identifying a product as being from a particular source.
Once a trademark is established on a product other companies will be unable to use that technology nor design without purchasing rights to use the trademark.
Apple first introduced Solfie which is a name coined for slow motion selfie on their iPhone 11.
In order to avoid competition with Samsung, Google, and others they trademarked Slofie thereby preventing competitors from using similar technology
