Romain Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Information Technology and Administration, and two operating departments, Surgery and Recovery. Service Department Operating Department Information Technology Administration Surgery Recovery Departmental costs $ 36,294 $ 36,282 $ 522,320 $ 720,360 Computer workstations 43 20 74 64 Employees 39 25 94 47 Information Technology Department costs are allocated on the basis of computer workstations and Administration Department costs are allocated on the basis of employees. The total Surgery Department cost after service department allocations is closest to:
Answer:
Romain Surgical Hospital
The total Surgery Department cost after service department allocations is closest to:
$ 565,970
Explanation:
a) Data and Calculations:
Service Department Operating Department
Information Technology Administration Surgery Recovery
Departmental costs $ 36,294 $ 36,282 $ 522,320 $ 720,360
Computer workstations 43 20 74 64
Employees 39 25 94 47
Information Technology costs allocated based on the Computer workstations $36,294/138 = $263 per workstation
Administration costs allocated based on the number of employees:
$36,282/141 = $257.32
Direct Allocation of Service Departments' Costs:
Service Department Operating Department
Information Technology Administration Surgery Recovery
Departmental costs $ 36,294 $ 36,282 $ 522,320 $ 720,360
Information Techn. (36,294) 0 19,462 16,832
Administration 0 (36,282) 24,188 12,094
Total costs 0 0 $ 565,970 $ 749,286
A segment is unattractive if the company's suppliers are able to raise prices or reduce quantity supplied. Which of the following is the best illustration of the threat of suppliers' growing bargaining power? A. Sears unsuccessfully attempted to compete with WaI-Mart and Kmart. B. McDonald's is the largest fast food franchise and is still growing. C. The U.S. Post Office has merged package operations with FedEx. D. Oil companies must purchase a significant amount of their product from OPEC. E. Wal-Mart has almost no competitors in its market space.
Answer:
D
Explanation:
The bargaining strength of suppliers is one of Porters five forces. The higher the bargaining power, the less attractive a segment is as companies would not have less power to negotiate prices for their supplies.
Bargaining power would be lower where there are less number of suppliers. This is the case with oil companies that have to purchase their oil from OPEC. They have no choice but to buy from OPEC. If OPEC increases oil prices, oil companies don't have the option of buying from another supplier
Mojo Mining has a bond outstanding that sells for $640 and matures in 18 years. The bond pays semiannual coupons and has a coupon rate of 5.54%. The par value is $1,000. If the company's tax rate is 35%, what is the aftertax cost of debt
Answer:
After tax cost of debt = 6.40%
Explanation:
Coupon rate = 5.54%
Years of maturity = 18
NPER = Years of maturity * 2 = 18 * 2 = 36
PMT = (Face value * Coupon rate) / 2 = (1,000 * 5.54%) / 2 = 27.7
Face value = $1,000
Price (PV) = $640
Rate (36, 27.2, -640, 1000) Using excel = 0.049246 = 4.92%
YTM = Rate * 2 = 4.92% * 2 = 0.098492 = 9.85%
Pre-tax csot of debt = 9.85%
After tax cost of debt = 9.85%* (1 - 0.35)
After tax cost of debt = 9.85% * 0.65
After tax cost of debt = 0.098492 * 0.65
After tax cost of debt = 0.0640198
After tax cost of debt = 6.40%
What part of the unit correlates to this Ted Talk and shares the same concepts that are covered? Discuss the similarities between Ted talk and the unit in terms of personal finance
Lesson 04 correlates to this Ted Talk and shares the same concepts that are covered. The similarity is that White was talking about “smalling up” and she talked about the effect on her local economy when she was on unemployment. The lesson talked about how being on unemployment impacted the economy.
The unit that is not unusual with the TED communication is the dialogue about the own family and the government shares. The dialogue approximately the own family and the authorities shares are finished in a manner that resembles both the Unit and the TED talk. It method that this is the maximum essential element.
What is private finance?Private finance is the procedure of planning and coping with personal economic sports such as profits era, spending, saving, investing, and safety. The system of coping with one's personal finances may be summarized in a finance or financial plan.
Learn more about Private finance here: brainly.com/question/26499492
#SPJ2
On June 1, 2021, Royal Property Management entered into a one-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2021. Under the terms of the contract, Royal will be paid a fixed fee of $62,000 and will receive an additional 15% of the fixed fee at the end of the contract provided that building occupancy exceeds 90%. Royal estimates a 30% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract. Assume that Royal accrues revenue each month, and estimates variable consideration as the most likely amount. On November 1, Royal revises its estimate of the chance the building will exceed the 90% occupancy threshold to a 70% chance. What is the total amount of revenue Royal should recognize on this contract in November of 2021
Answer:
$9,041
Explanation:
The computation of the total amount of revenue Royal should recognize on contracts in November of 2021 is shown below:-
Revenue to be recognized for 4 months = $62,000 × 4 ÷ 12
= $20,667
Total Fees = $62,000 + ($62,000 x 15%)
= $71,300
Revenue recognized at the end of November
= $71,300 × 5 ÷ 12
= $29,708
Revenue recognized in November of 2021
= Revenue recognized at the end of November - Revenue to be recognized for 4 months
= $29,708 - $20,667
= $9,041
State of the Economy Is the Economy in a Recessionary Gap, Inflationary Gap, or Long-Run Equilibrium? Does Equilibrium, a Shortage, or a Surplus Exist in the Labor Market? Will Wages Fall, Rise, or Remain Unchanged? Will the SRAS Curve Shift Right, Left, or Remain Unchanged? Is the Economy Above, Below, or on Its Institutional PPF? QQNQ>QN Q=QNQ=QN
Answer:
Natural GDP is the optimum quantity of goods and services that a country is expected to be producing per year. It is based on the various resources and constraints available in the economy.
Real GDP is the inflation adjusted value of goods and services actually produced in the country in a year.
1. Q < Qn ⇒ Recessionary Gap ⇒ Surplus in labor market ⇒ Wages will fall ⇒ SRAS will shift right ⇒ Below PPF
At this point where Natural GDP is above Real GDP, the nation is underproducing which means it is in a recessionary gap. Many will be unemployed so there will be a surplus in the labor market which makes labor cheap so wages will fall. The SRAS will shift right as input costs will be lower (wages) but the economy is inefficient so it is below its PPF.
2. Q > Qn ⇒ Inflationary Gap ⇒ Shortage in Labor market ⇒ Wages rise ⇒ SRAS shifts left ⇒ Above PPF
Real GDP is higher than the Natural GDP. The economy will be in an inflationary gap as a result and there will be a shortage in the labor market s companies look for more people to produce more which will lead to a rise in wages. With the ride in wages comes a rise in production costs so SRAS will shift left. The country will be above its PPF which is unattainable.
3. Q = Qn ⇒ Long Run Equilibrium ⇒ Labor Market Equilibrium ⇒ Unchanged wages ⇒ Unchanged SRAS ⇒ Producing at PPF boundary
This is the ideal situation where Real GDP equals Natural. Here the economy will be in a long run equilibrium where the labor market will also be in equilibrium which means that wages will not change, SRAS will remain where it is and the economy will be at the Production Possibilities Frontier (PPF) boundary.
because most businesses dont have a one-size-fits-all aproach, what do you need to do?
Answer:
Add your creativity to the existing problem and make it unique for it to suit others.
The Department of Transportation plans to build a temporary bridge to reduce travel time during the three years it will take to renovate the Pulaski Skyway, an important bridge for commuters. The temporary bridge can be put up in a few weeks at a cost of $48 million. At the end of three years, the bridge would be decommissioned and the steel would be sold for scrap. The real net cost of decommissioning would be $3 million, after accounting for scrap sales. Based on estimated time savings and wage rates, fuel savings, and reductions in risks of accidents, department analysts predict that the benefits in real dollars would be $15,900,000 during the first year, $18,900,000 during the second year, and $19,000,000 during the third year. Departmental regulations require use of a real discount rate of 4 percent. (a) Calculate the net present value of the temporary bridge assuming that the benefits are realized at the end of each of the three years. (b) Calculate the net present value of the temporary bridge assuming that the benefits are realized at the beginning of each of the three years. (c) Calculate the net present value of the temporary bridge assuming that the benefits are realized in the middle of each of the three years. (d) Does it make sense for the Department of Transportation to build the temporary bridge?
Answer:
required investment:
building costs = $48 million
decommissioning costs = $3 (at the end of year 3)
benefits:
year 1 = $15,900,000
year 2 = $18,900,000
year 3 = $19,000,000
discount rate = 4%
I rounded my calculations to the nearest thousand:
a) NPV = -48 + 15,900/1.04 + 18,900/1.04² + 16,000/1.04³ = -$1,013,000
b) NPV = -48 + 15,900 + 18,900/1.04 + 19,000/1.04² - 3/1.04³ = $973,000
c) NPV = -48 + 15,900/1.04⁰°⁵ + 18,900/1.04¹°⁵ + 19,000/1.04²°⁵ - 3,000/1.04³ = -$31,000
d) From a strictly financial point of view and only considering the 3 previous calculations, the project should be rejected. Two out of 3 options yield a negative NPV.
What is Chris Records LifePreneur Online Educational Training Program?
Answer:
Chris Record announced the launch of his new company LifePreneur in partnership with Peter Sorenson.
Chris Record started his entrepreneurial journey in direct sales with a company called Nouveau Riche that specialized in Real Estate Investment training. As the real estate market took a hit, Chris shifted his attention to online marketing, skills that will allow him to excel in any business.
Answer:
LifePreneur stands for Lifesyle Entrepreneur.
Lifepreneur is a membership program that you can join to get training in various aspects of online marketing, training and advice and investing, live in-person mentorship from Chris Record himself, and more. It is a membership program that you can sign up for free and it's designed to help you grow into more than just a business entrepreneur… A Lifepreneur. More info : reddit's /r/LifePreneur
What is the present value of a four-period annuity of $100 per year that begins two years from today if the discount rate is 9%
Answer:
$297.22
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated with a financial calculator
Cash flow in year 1 = 0
Cash flow each year from year 2 to 5 = $100
I = 9%
Present value = $297.22
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Stear Corp. has an opening inventory of $2,500. During the year, it made purchases worth $55,000. At the end of the accounting period, the inventory was worth $1,250. What was the cost of goods sold?
A.
$57,500
B.
$56,250
C.
$53,750
D.
$55,000
Answer:
B. 56,250
Explanation:
"Beginning inventory of 2,500 plus purchases of 55,000 minus ending inventory of 1,250 = 56,250 of cost of goods sold."
When a market successfully understands a negative externality like pollution, and assigns costs in a way that they are reflected in the market price, the market is said to be ________________________.
Answer:
allocating resources efficiently
Explanation:
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Negative externality causes inefficient allocation of resources. By assigning costs to negative externality, the negative externality produced would reduce and this would lead to efficient allocation of resources
June 1 T. James, owner, invested $11,500 cash in Sustain Company in exchange for common stock. 2 The company purchased $4,500 of furniture made from reclaimed wood on credit. 3 The company paid $700 cash for a 12-month insurance policy on the re-claimed furniture. 4 The company billed a customer $3,500 in fees earned from preparing a sustainability report. 12 The company paid $4,500 cash toward the payable from the June 2 furniture purchase. 20 The company collected $3,500 cash for fees billed on June 4. 21 T.James invested an additional $10,500 cash in Sustain Company in exchange for common stock. 30 The company received $5,500 cash from a client for sustainability services for the next 3 months.Prepare general journal entries for the above transactions
Answer:
General Journal
June 1
Cash $11,500 (debit)
Common Stock $11,500 (credit)
Received Cash in exchange of common stock
June 2
Furniture $4,500 (debit)
Accounts Payable $4,500 (credit)
Purchased Furniture on credit
June 3
Prepaid Insurance $700 (debit)
Cash $700 (credit)
Paid Insurance in advance
June 4
Accounts Receivable $3,500 (debit)
Fees Earned $3,500 (credit)
Fees earned not yet paid
June 12
Accounts Payable $4,500 (debit)
Cash $4,500 (credit)
Payment made to suppliers
June 20
Cash $3,500 (debit)
Accounts Receivable $3,500 (credit)
Cash receipt from debtors
June 21
Cash $10,500 (debit)
Common Stock $10,500 (credit)
Received Cash In exchange of Common Stock
June 30
Cash $5,500 (debit)
Deferred Revenue $5,500 (credit)
Received Cash for services to be rendered
Explanation:
See the journals and their narrations prepared above.
Answer:
Entries are posted
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
DEBIT CREDIT
1-June (Common Stock issued)
Cash $11,500
Common stock $11,500
2-June (Furniture purchased on Credit)
Furniture $4,500
Accounts Payable $4,500
3-June (Prepaid Insurance Paid)
Prepaid insurance $700
Cash $700
4-June (Revenue earned)
Accounts Receivable $3,500
Service Revenue $3,500
12-June (Paid for Outstanding balance in payables)
Accounts Payable $4,500
Cash $4,500
20-June (Received from Accounts Receivables)
Cash $3,500
Accounts Receivables $3,500
21-June (Common Stock issued)
Cash $10,500
Common stock $10,500
30-June (Advance received for services to be performed in future)
Cash $5,500
Unearned Service Revenue $5,500
Schedule of Cash Collections of Accounts Receivable Pet Supplies Inc., a pet wholesale supplier, was organized on January 1, 2016. Projected sales for each of the first three months of operations are as follows: January $370,000 February 450,000 March 660,000 All sales are on account. 56% of sales are expected to be collected in the month of the sale, 40% in the month following the sale, and the remainder in the second month following the sale. Prepare a schedule indicating cash collections from sales for January, February, and March.Pet Place Supplies Inc.
Schedule of Collections from Sales
For the Three Months Ending July 31, 2016
May
June
July
May sales on account:
Collected in May
Collected in June
Collected in July
June sales on account:
Collected in June
Collected in July
July sales on account:
Collected in July
Total cash collected
Answer:
Results are below.
Explanation:
All sales are on account.
56% of sales are expected to be collected in the month of the sale
40% in the month following the sale
4% in the second month following the sale.
Cash Collection January:
Sales on account January= 370,000*0.56= $207,200
Total cash collection= $207,200
Cash Collection February:
Sales on account January= 370,000*0.44= $162,800
Sales on account February= 450,000*0.56= $252,000
Total cash collection= $414,800
Cash Collection March:
Sales on account January= 370,000*0.04= $14,800
Sales on account February= 450,000*0.44= $198,000
Sales on account March= 660,000*0.56= $369,600
Total cash collection= $582,400
Answer:
Correct
Explanation:
Sandhill Company owns 31000 of the 50000 outstanding shares of Taylor, Inc. common stock. During 2021, Taylor earns $1360000 and pays cash dividends of $1080000. If the beginning balance in the investment account was $830000, the balance at December 31, 2021 should be
Answer: $2,312,800
Explanation:
From the information given in the question, we can see that Sandhill Company owns 31000 out of 50000 outstanding shares so the equity method can be used.
To calculate the balance at December 31, 2021 goes thus:
= $800,000 + ($1,360,000 × 31000/50000) - ($1,080,000 × 31000/50000)
= $800,000 + ($1,360,000 × 0.62) + ($1,080,000 × 0.62)
= $800,000 + $843,200 + $669,600
= $2,312,800
Magic Realm, Inc., has developed a new fantasy board game. The company sold 45,000 games last year at a selling price of $66 per game. Fixed expenses associated with the game total $810,000 per year, and variable expenses are $46 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 54,900 games next year (an increase of 9,900 games, or 22%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)
Answer:
Please see below and attached.
Explanation:
1a. Prepare a contribution format income statement for the game last year. The Net operating income is $90,000.
1-b The degree of operating leverage
= $10.
2a. Net operating income increases by 220%
2b. Total expected net operating income is $288,000.
Please find attached detailed breakdown of the answers provided above
The following cost data for the month of May were taken from the records of the Terrence Manufacturing Company: Depreciation on factory equipment $1,000 Depreciation on sales office 500 Advertising 7,000 Wages of production workers 28,000 Raw materials used 47,000 Sales salaries and commissions 10,000 Factory rent 2,000 Factory insurance 500 Materials handling 1,500 Administrative salaries 2,000 Based upon this information, the manufacturing cost incurred during the month was: Group of answer choices
Answer:
80,000
Explanation:
Cost data of the month of May was taken from Terrence manufacturing company
The manufacturing cost incurred during the month can be calculated as follows
= wages of production workers + raw materials + materials handling + factory rent + factory insurance + depreciation of factory equipment
= 28,000 + 47,000 + 1,500 + 2,000 + 500 + 1,000
= 80,000
Hence the manufacturing cost incurred during the month is 80,000
A restaurant manager wanted to get a better understanding of the tips her employees earn, so she decided to record the number of patrons her restaurant receives over the course of a week, as well as how many of those patrons left tips of at least 15%. The data she collected is in the table below.
Day Mon. Tue. Wed Thu. Fri Sat Sun.
Patrons 126 106 103 126 153 165 137
Tippers 82 87 93 68 91 83 64
Which day of the week has the lowest experimental probability of patrons tipping at least 15%?
a. Sunday
b. Saturday
c. Friday
d. Thursday
Answer:
a. Sunday
Explanation:
Probability ranges from 0-1. 0 being the least chance and one being completely sure.
The probability of receiving a tip of at least 15% for the different days is as follows
Monday : 82/126 = 0.65
Tuesday: 87/106= 0.82
Wednesday: 93/103= 0.90
Thursday : 68/126 = 0.54
Friday :91/153= 0.59
Saturday: 83/156 = 0.53
Sunday: 64/137= 0.46
The day with the lowest probability is Sunday.
Answer:
A. Sunday
Explanation:
I got it right on edge :)
Definition of marketing?
Answer:
the active business of promoting and selling products or services, including market research and advertising
This is the trial balance of Sandhill Co. on September 30. SANDHILL CO. Trial Balance September 30, 2022 Debit Credit Cash $23,640 Accounts Receivable 7,040 Supplies 4,670 Equipment 10,570 Accounts Payable $9,240 Unearned Service Revenue 3,670 Common Stock 19,440 Retained Earnings 13,570 $45,920 $45,920 The October transactions were as follows. Oct. 5 Received $1,380 in cash from customers for accounts receivable due. 10 Billed customers for services performed $5,300. 15 Paid employee salaries $1,130. 17 Performed $570 of services in exchange for cash. 20 Paid $1,990 to creditors for accounts payable due. 29 Paid a $310 cash dividend. 31 Paid utilities $460. Prepare a general ledger using T-accounts. Enter the opening balances in the ledger accounts as of October 1. CashAccounts Receivable SuppliesEquipmentAccounts PayableUnearned Service RevenueCommon StockRetained EarningsJournalize the transactions.Date Account Titles and Explanation Debit CreditPost to the ledger accounts. Cash
10/1 Bal. 23,400Accounts Receivable
10/1 Bal. 6,800
Supplies
10/1 Bal. 4,300
Equipment
10/1 Bal. 10,200
Accounts Payable
10/1 Bal. 9,000
Unearned Service Revenue
10/1 Bal. 3,300
Common Stock 10/1 Bal. 19,200
Retained Earnings
10/1 13,200
Dividends
Service Revenue
Salaries and Wages Expense
Utilities Expense
Prepare a trial balance on October 31, 2014.
SOLIS COMPANY
Trial BalanceOctober 31, 2014
Debit Credit
See full question attached
Answer and Explanation:
Find full answer and explanation attached
The Nite Lite Company manufacture small lamps and desk lamps.
Set-Ups Inspections Assembly (DLH)
Small Lamps-4000 units 4,000 16,000 4,000
Desk Lamps-8000 units 16,000 8,000 12,000
Using the following information prepared by the Nite Lite Company, what is the total factory overhead rate to be charged to desk lamps.
Activity Pool Activity Base Budgeted amound
Set-ups 24,000 $ 60,000
Inspections 24,000 120,000
Assembly (DLH) 28,000 280,000
Answer:
Total factory overhead rate = $200,000
Explanation:
Total overhead allocated to Desk lamps
Desk lamps Amount
Setups 60,000/24,000 * 16,000 = 40,000
Inspections 120,000 /24,000 * 8,000 = 40,000
Assembly 280,000/28,000 * 12,000 = 120,000
Total factory overhead rate = $200,000
Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices. (Do not use qualitative characteristics.) (a) Fair value changes are not recognized in the accounting records. select an option (b) Financial information is presented so that investors will not be misled. select an option (c) Intangible assets are amortized over periods benefited. select an option (d) Agricultural companies use fair value for purposes of valuing crops. select an option (e) Each enterprise is kept as a unit distinct from its owner or owners. select an option (f) All significant post-balance-sheet events are disclosed. select an option (g) Revenue is recorded when the product is delivered. select an option (h) All important aspects of bond indentures are presented in financial statements. select an option (i) Rationale for accrual accounting. select an option (j) The use of consolidated statements is justified. select an option (k) Reporting must be done at defined time intervals. select an option (l) An allowance for doubtful accounts is established. select an option (m) Goodwill is recorded only at time of purchase. select an option (n) A company charges its sales commission costs to expense. select an option
Answer:
(a) Measurement (historical cost) principle.
(b) Full disclosure principle.
(c) Expense recognition principle.
(d) Measurement (fair value) principle.
(e) Economic entity assumption.
(f) Full disclosure principle.
(g) Revenue recognition principle.
(h) Full disclosure principle.
(i) Expense recognition and
revenue recognition principles.
(j) Economic entity assumption.
(k) Periodicity assumption.
(l) Expense recognition principle.
(m) Measurement (historical cost) principle.
(n) Expense recognition principle.
Explanation:
A full disclosure in financial statements is an accounting principle which states that businesses should give a well detailed information or description about their financial statements for interested public view.Economic entity assumption is an accounting principle which states that economic activities can be identified with a particular unit of accountability.Historical cost principle is an accounting principle which states that assets should be recorded at the cost at which they were acquired i.e their acquisition cost.Periodicity assumption states that the economic life of a business can be divided into artificial time periods. It is also known as the Time period assumption.The expense recognition principle is an accounting principle which is typically used on accrual basis accounts and it states that expenses incurred by an individual or business entity should be recognized and matched in the same period with respect to the revenues they are related to.a) Fair value changes are not recognized in the accounting records: Measurement (historical cost) principle.
(b) Financial information is presented so that investors will not be misled: Full disclosure principle.
(c) Intangible assets are amortized over periods benefited: Expense recognition principle.
(d) Agricultural companies use fair value for purposes of valuing crops: Measurement (fair value) principle.
(e) Each enterprise is kept as a unit distinct from its owner or owners: Economic entity assumption.
(f) All significant post-balance-sheet events are disclosed: Full disclosure principle.
(g) Revenue is recorded when the product is delivered: Revenue recognition principle.
(h) All important aspects of bond indentures are presented in financial statements: Full disclosure principle.
(i) Rationale for accrual accounting: Expense recognition and
revenue recognition principles.
(j) The use of consolidated statements is justified: Economic entity assumption.
(k) Reporting must be done at defined time intervals: Periodicity assumption.
(l) An allowance for doubtful accounts is established: Expense recognition principle.
(m) Goodwill is recorded only at time of purchase: Measurement (historical cost) principle.
(n) A company charges its sales commission costs to expense: Expense recognition principle.
Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices. (Do not use qualitative characteristics.) that is "Fair value changes are not recognized in the accounting records". The correct option is A.
The fair value is referred to the term in the accounting which is a rational and unbiased estimate of the potential, market price of a good, service and asset.
The example of the fair value is the actual value of the asset like the product, stock, and the security that is agreed upon by both the seller and the buyer.
Therefore, the correct option is A.
To know more about Fair value here,
https://brainly.com/question/30564619
#SPJ6
Probability ideas, including joint probability distributions, play a major role in financial activities. For example, portfolio managers must allocate funds among competing assets. Suppose there are two assets: Microsoft (M) stock and Starbucks (S) stock. For Microsoft stock, the following returns are possible: −10%, 10%, 20%, and 30%. For Starbucks stock, the following returns are possible: 0% and 20%. The joint probability distribution of the returns of the two assets is
Answer:
kindly check explanatio0n section.
Explanation:
PS: The joint probability distribution of the returns of the two assets is given in the attached picture. Also, both stocks are not independent.
So, let us delve straight into the solution to this particular question or problem. From the question, we are given two assets that is, Microsoft (M) stock and Starbucks (S) stock.
Thus, the expected return on Microsoft stock can be determined and the expected return on Starbucks stock can also be determined.
[1]. The expected return on Microsoft stock = - 10 × 0.15 + 30 × 0.20 + 10 × 0.35 + 20 ×0.30 = 14%.
Using excel, Standard deviation on Microsoft stock = 12.4[ from [tex]\sqrt{(100 * 0.35 + 100 * 0.15 + 900 * 0.20 + 400 * 0.30}[/tex] - √[14]² ]
[2]. The expected return on starbucks stock= 20 × 0.15 + 20 × 0.10 + 20 × 0.2 = 12%.
Using excel, Standard deviation on Starbucks stock = √( 400 × 0.15 + 400 × 0.20 + 400 × 0.15 + 400 × 0.10) - √(12)²
= 9.8
The following financial information was taken from the books of Zone Health Club, a small spa and fitness club: Account Balances as of December 31, Year 2 Accounts receivable $ 12,450 Accounts payable 6,200 Salaries payable 3,150 Cash 36,750 Dividends 2,000 Operating expense 35,300 Prepaid rent 1,200 Rent expense 8,400 Retained Earnings 1/1/Year 2 41,250 Salaries expense 14,500 Service revenue 65,400 Supplies 650 Supplies expense 3,150 Common stock 7,000 Unearned revenue 6,400 Land 15,000 Required a. Prepare the journal entries necessary to close the temporary accounts at December 31, Year 2, for Zone Health Club. b. What is the balance in the Retained Earnings account after the closing entries are posted?
Answer:
A. 1. Dr Service revenue65,400
Cr Retained Earnings 65,400
2. D Retained earnings61,350
Cr Operating expense35,300
Cr Rent expense8,400
Cr Salaries expense14,500
Cr Supplies expense3,150
3. Dr Retained earnings2,000
Cr Dividends2,000
B. $43,300
Explanation:
A. Preparation of the journal entries to close the temporary accounts
1. Dr Service revenue65,400
Cr Retained Earnings 65,400
2. D Retained earnings61,350
(35,300+8,400+14,500+3,150)
Cr Operating expense35,300
Cr Rent expense8,400
Cr Salaries expense14,500
Cr Supplies expense3,150
3. Dr Retained earnings2,000
Cr Dividends2,000
B. Calculation for the balance in the Retained Earnings account
Retained Earnings Balance
Beginning retained earnings$41,250
Add: Revenue65,400
Less: Expenses(61,350)
Less: Dividends(2,000)
Ending retained earnings$43,300
Therefore the balance in the Retained Earnings account will be $43,300
Which of these credit card payback strategies would result in your paying the HIGHEST amount of interest?
A. Paying 20% of your credit card balance every month on time
B. Paying off your credit card in full every month
C. Making the minimum payment (3% credit card balance) every month on time
D. Making the minimum payment (3% credit card balance) every month with an occasional late payment
Answer:
D. Making the minimum payment (3% credit card balance) every month with an occasional late payment
Explanation:
Credit card debts attract a very high-interest rate. By design, the interest on uncleared balances increases rapidly. Credit cards calculate interest monthly. Any uncleared balance and the interest incurred is rolled over to the next month, where it continues attracting more interest.
The best strategy is to clear credit card debts in the month they are incurred. Late payment attracts heavy penalties. A combination of late payments and outstanding balances will make interest charges grow exponentially.
The credit card payback strategies that would result in your paying the HIGHEST amount of interest is:
D. Making the minimum payment (3% credit card balance) every month with an occasional late paymentCredit card debt has to do with the overdraft which a customer has collected from the company and is yet to make repayment. As a result of this, when it becomes overdue, there would be certain extra charges which would definitely hurt the customer.
As a result of this, we can see the method that would result in the highest interest rate is the fourth option.
In this method, there would be a 3% overcharge every month.
Therefore, the correct answer is option D
Read more here:
https://brainly.com/question/20295036
What is the United Nations Convention on Contracts for the International Sale of Goods rule with regard to cure?It requires that the seller apply to the International Court of Justice for the right to cure, and the court will evaluate each case individually.It follows the same cure rules as stated in the UCC.It does not recognize cover as a seller's remedy.It allows an absolute right and obligation for a seller to cure, and the buyer must allow the seller to cure even if the time for performance is past due.
Answer:
D. It allows an absolute right and obligation for a seller to cure, and the buyer must allow the seller to cure even if the time for performance is past due.
Explanation:
The United Nations Convention on Contracts for the International Sale of Goods rule with regard to cure allows an absolute right and obligation for a seller to cure, and the buyer must allow the seller to cure even if the time for performance is past due.
Way Cool produces two different models of air conditioners. The company produces mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow.Process Activity Overhead Cost Driver QuantityComponents Changeover $ 500,000 Number of batches 800 Machining 279,000 Machine hours 6,000 Setups 225,000 Number of setups 120 $1,004,000 Finishing Welding $ 180,300 Welding hours 3,000 Inspecting 210,000 Number of inspections 700 Rework 75,000 Rework orders 300 $ 465,300 Support Purchasing $ 135,000 Purchase orders 450 Providing space 32,000 Number of units 5,000 Providing utilities 65,000 Number of units 5,000 $ 232,000 Additional production information concerning its two product lines follows. Model 145 Model 212Units produced 1,500 3,500Welding hours 800 2,200Batches 400 400Number of inspections 400 300Machine hours 1,800 4,200Setups 60 60Rework orders 160 140Purchase orders 300 150a. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on the number of purchase orders.b. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $250 for Model 145 and $180 for Model 212.c. Assum if the market price for Model 145 is $820 and the market price for Model 212 is $480, determine the profit or loss per unit for each model.
Answer:
I used an excel spreadsheet because there is not enough room here.
For each situation, determine the date for which the company recognizes the revenue under accrual-basis accounting.
1. American Airlines collects cash on June 12 from the sale of a ticket to a customer. The flight occurs on August 16.
2. A customer purchases sunglasses from Eddie Bauer on January 27 on account. Eddie Bauer receives payment from the customer on February 2.
3. On March 30, a customer preorders 10 supreme pizzas (without onions) from Pizza Hut for a birthday party. The pizzas are prepared and delivered on April 2. The company receives cash at the time of delivery.
4. A customer pays in advance for a three-month subscription to Sports Illustrated on July 1. Issues are scheduled for delivery each week from July 1 through September 30.
__________________________________________
1. American Airlines operates a flight from Dallas to Los Angeles on August 16. The pilots' salaries associated with the flight are paid on September 2.
2. Eddie Bauer pays cash on January 6 to purchase sunglasses from a wholesale distributor. The sunglasses are sold to customers on January 27.
3. On January 1, Pizza Hut pays for a one-year property insurance policy with coverage starting immediately.
4. Sports Illustrated signs an agreement with CBS on January 12 to provide television advertisements during the Super Bowl. Payment is due within 3 weeks after February 4, the day of the Super Bowl. Sports Illustrated makes the payment on February 23.
Answer:
1. American Airlines collects cash on June 12 from the sale of a ticket to a customer. The flight occurs on August 16.
Revenue is recognized on August 16.2. A customer purchases sunglasses from Eddie Bauer on January 27 on account. Eddie Bauer receives payment from the customer on February 2.
Revenue is recognized on January 27.3. On March 30, a customer pre-orders 10 supreme pizzas (without onions) from Pizza Hut for a birthday party. The pizzas are prepared and delivered on April 2. The company receives cash at the time of delivery.
Revenue is recognized on April 2.4. A customer pays in advance for a three-month subscription to Sports Illustrated on July 1. Issues are scheduled for delivery each week from July 1 through September 30.
Revenue is recognized on an equal monthly rate during July, August and September.1. American Airlines operates a flight from Dallas to Los Angeles on August 16. The pilots' salaries associated with the flight are paid on September 2.
Expenses are recognized on August 16 (generally wages expense is recognized at the end of the month, but it should be recognized on a day that the employee performed).2. Eddie Bauer pays cash on January 6 to purchase sunglasses from a wholesale distributor. The sunglasses are sold to customers on January 27.
Expenses are recognized on January 27 (COGS is recognized only after the goods are sold, before they are part of inventory).3. On January 1, Pizza Hut pays for a one-year property insurance policy with coverage starting immediately.
Expenses are recognized on an equal monthly basis staring on January and ending on December (12 months).4. Sports Illustrated signs an agreement with CBS on January 12 to provide television advertisements during the Super Bowl. Payment is due within 3 weeks after February 4, the day of the Super Bowl. Sports Illustrated makes the payment on February 23.
Expenses are recognized on February 4.Explanation:
According to accrual accounting system, expenses and revenues are recognized only after they actually occur, not necessarily when they are paid or collected.
The date for which the company recognizes the revenue under accrual-basis accounting is :
1. American Airlines collects cash on June 12 from the sale of a ticket to a customer. The flight occurs on August 16.
According to accrual accounting system the Revenue is recognized on August 16.2. A customer purchases sunglasses from Eddie Bauer on January 27 on account. Eddie Bauer receives payment from the customer on February 2.
According to accrual accounting system Revenue is recognized on January 27.3. On March 30, a customer pre-orders 10 supreme pizzas (without onions) from Pizza Hut for a birthday party. The pizzas are prepared and delivered on April 2. The company receives cash at the time of delivery.
According to accrual accounting system Revenue is recognized on April 2.4. A customer pays in advance for a three-month subscription to Sports Illustrated on July 1. Issues are scheduled for delivery each week from July 1 through September 30.
According to accrual accounting system Revenue is recognized on an equal monthly rate during July, August and September.-------------------------------------------------------------------------------------
1. American Airlines operates a flight from Dallas to Los Angeles on August 16. The pilots' salaries associated with the flight are paid on September 2.
According to accrual accounting system Expenses are recognized on August 16.2. Eddie Bauer pays cash on January 6 to purchase sunglasses from a wholesale distributor. The sunglasses are sold to customers on January 27.
According to accrual accounting system Expenses are recognized on January 27 .3. On January 1, Pizza Hut pays for a one-year property insurance policy with coverage starting immediately.
According to accrual accounting system Expenses are recognized on an equal monthly basis staring on January and ending on December (12 months).4. Sports Illustrated signs an agreement with CBS on January 12 to provide television advertisements during the Super Bowl. Payment is due within 3 weeks after February 4, the day of the Super Bowl. Sports Illustrated makes the payment on February 23.
According to accrual accounting system Expenses are recognized on February 4.Learn more :
https://brainly.com/question/14947252?referrer=searchResults
In order to communicate effectively on the job, it is important to do all of the following,
except
adopt an audience-centered approach.
share your personal experiences related to the job.
be sensitive to business etiquette.
minimize distractions.
Answer:
a
Explanation:
adopt an audience centered approach
aker Industries’ net income is $27000, its interest expense is $5000, and its tax rate is 45%. Its notes payable equals $24000, long-term debt equals $80000, and common equity equals $260000. The firm finances with only debt and common equity, so it has no preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet What are the firm’s ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations.
Answer:
ROE = 10.3%
ROE = 10.3%
Explanation:
ROE can be calculated by dividing net income by common equity and ROIC can be calculated by dividing EBIT after tax by the total invested capital.
1) Computation of ROE
ROE = Net Income / Common Equity
ROE = $27,000 / $260,000
ROE = 0.103 or ROE = 10.3%
2) Computation of ROIC
ROIC = [EBIT * (1-tax rate)] / Total Invested capital
ROIC = [$50,000 * (1 - 0.40)] / $365,000
ROIC = 0.0821 or ROIC = 8.21%
EBT = Net income *100 / (100% - T)
EBT = $27,000 x 100% / 60%
EBT = $45,000
EBIT = EBT + interest = $45,000 + $5,000
EBIT = $50,000
Invested capital = Notes payable + Long term Debt + Common stock
Invested capital = $24,000 + $80,000 + $260,000
Invested capital = $365,000
