Answer:
Debit Cash and credit Deferred Revenue for $2,500.
Explanation:
Deferred revenue can be described as an advance payment thta is received a business for services to be performed or goods to be delivered in the future.
This type of revenue will not be reported in the income statement but it will be reported as a liability under the current liabilities in the balance sheet, after debiting the cash account, until when the services are performed or goods are delivered.
For this question, $2,500 deposits received in 2018 from customers for advertising services to be performed in 2020 will not be reported in the 2018 income statement but it will continue to be reported as a liability under the current liabilities in the balance sheet till 2020 when the services are performed.
Thereofe, the correct journal entry that will be used to record activity #3 is Debit Cash and credit Deferred Revenue for $2,500.
You have $ 69 comma 000 69,000. You put 25 25% of your money in a stock with an expected return of 10 10%, $ 39 comma 000 39,000 in a stock with an expected return of 14 14%, and the rest in a stock with an expected return of 18 18%. What is the expected return of your portfolio? brainly
Answer: 13.72%
Explanation:
Here is the complete question:
You have 69,000. You put 25% of your money in a stock with an expected return of 10%, 39,000 in a stock with an expected return of 14%, and the rest in a stock with an expected return of 18%. What is the expected return of your portfolio?
The weight of the investment in stock with the expected return of 10% = 25% = 25/100 = 0.25
The weight of investment in the stock with an expected return of 14% = 39000/69000 = 0.57
Therefore, the weight of the investment in stock with an expected return of 18% = 1-(0.25+0.57) = 1 - 0.82 = 0.18
Expected return of the portfolio:
= (10 × 0.25) + (14 × 0.57) + (18 × 0.18)
= 2.5 + 7.98 + 3.24
= 13.72%
Identify each of the following types of businesses as either job-order or process costing. a. Hospital services b. Custom cabinet making c. Toy manufacturing d. Soft-drink bottling e. Airplane manufacturing (e.g., 767s) f. Personal computer assembly g. Furniture making (e.g., computer desks sold at discount stores) h. Custom furniture making i. Dental services j. Paper manufacturing k. Nut and bolt manufacturing l. Auto repair m. Architectural services n. Landscape design services o. Flashlight manufacturing
Answer:
The answer to the question above is given below:
Explanation:
First, for a better understanding of the type of business to be categorized as job-order or process costing, explanation would be made on what job-order and process costing are.
Job-order costing is used when items produced differ such that each carries a significant cost. Job-order costing systems track costs by job and are used by companies to calculate costs of unique products been produced.
Process costing assigns product costs to departments and is used by companies that produce similar products this ensures a continuous style of production employed. No difference in the products been produced in process costing.
Going by the definition above one can categorize the businesses:
a. Hospital services are a Job-order costing type of business
b. Custom cabinet making is a Job-order costing type of business
c. Toy manufacturing is a Process costing type of business
d. Soft-drink bottling is a Process costing type of business
e. Airplane manufacturing (e.g., 767s) is a Process costing type of business because they produce similar products (767s) that translate to a consistent process. But if the model of the airplane is not specified then it is a Job-order costing type of business.
f. Personal computer assembly is a Job-order costing type of business
g. Furniture making (e.g., computer desks sold at discount stores)
h. Custom furniture making is a Job-order costing type of business
i. Dental services are a Job-order costing type of business
j. Paper manufacturing is a Process costing type of business
k. Nut and bolt manufacturing is a Process costing type of business
l. Auto repair is a Job-order costing type of business
m. Architectural services are a Job-order costing type of business
n. Landscape design services are a Job-order costing type of business
o. Flashlight manufacturing is a Process costing type of business
Rebecca Reyher wrote (and copyrighted) a children’s book entitled My Mother Is the Most Beautiful Woman in the World. The story was based on a Russian folktale told to her by her own mother. Years later, the children’s TV show Sesame Street televised a skit entitled "The Most Beautiful Woman in the World." The Sesame Street version took place in a different locale and had fewer frills, but the sequence of events in both stories was identical. Has Sesame Street infringed Reyher’s copyright?
Answer:
The correct answer is: Initially, yes it did violated the law. But it depends.
Explanation:
To begin with, we need to understand that when it comes to the law of copyright the consequences of violating it depends on the particulary situation that the parties shared. Therefore that initially, Sesame Street would have violated the copyright law if they did not establish a contract that can allow them to use that story. However again, if in a first place the Reyher violated the law then Sesame Street will be out of charges becuase the first violation was caused by the writter and in other case it could also be seen as therewas no violation due to the fact that is a russian folktale and those stories have no copyright.
Phionia Phelps has developed a gourmet cat food. Not only is this food eagerly eaten by the most finicky felines, but it is specially formulated to prevent the many health problems of aging cats. Phionia has been making the food on her kitchen range and selling it at $250 per case only to close acquaintances who are also cat lovers. One of her wealthy acquaintances has now offered to invest in her business if Phionia will begin selling the product through her website. However, the investor wants Phionia to produce a budget for the first six months of operation. Based on her experience to date, Phionia predicts the following sales in cases:
Each case of Finicky Feline Gourmet Cat Dinner requires 5 pounds of prime lamb meat, 10 pounds of short grain Chinese rice, 2 pounds of wild caught Alaskan salmon, and 1 pound of secret vitamins and supplements. Phionia plans to maintain end-of-month inventories equal to 10 percent of the next month's projected sales, to meet expected sales growth. All the ingredients inventories are to be maintained at 5 percent of the production needs for the next month, but not to exceed 1,000 pounds of any one ingredient. January will begin with all inventories at the projected levels. Phionia has the following price quotes good for the following year:
The production process requires direct labor at two skill levels: (1) ingredient preparation, $18 per hour, and (2) cooking and canning, $24 per hour. Two workers are willing to work part days if there is not enough demand for them to work full time. lt takes one hour to process one batch. Because of preparation and cleanup time, only six batches can be produced per day. Each batch produces enough food to fill 100 cases. Manufacturing overhead is $6,000 fixed per month plus $15 per case.
Item $ per pound
Lamb 15
Rice 1,20
Saimon 24
Viamlns 45
1. Prepare the following budgets for the period. January through June:________.
a. Sales budget in dollars.
b. Production budget in units.
c. Direct materials purchases budget in pounds.
d. Direct materials purchases budget in dollars.
e. Direct manufacturing labor budget in dollars.
2. Comment on the viability of this business and the advisability of the investor making a $50,000 investment to get it started.
Answer:
Explanation:
a.
Sales budget = $ 250 per case * 100 cases per batch * 6 batches per day * 20 days a month * 6 months
= $ 18,000,000
b. Production budget in units = 100 cases per batch * 6 batches per day * 20 days a month * 6 months
= 72,000 cases
Production budget including 10 percent inventories
= 72000 + 100*6*20*10%
= 73200 cases
c. Direct materials purchases budget in pounds including 5% inventories
Lamb = 5 pounds per case * (73200 cases + 100*6*20*5% cases )
= 369,000 pounds
Rice Lamb = 10 pounds per case * (73200 cases + 100*6*20*5% cases )
= 738,000 pounds
Salmon = 2 pounds per case * (73200 cases + 100*6*20*5% cases )
= 147,600 pounds
Vitamins = 1 pound per case * (73200 cases + 100*6*20*5% cases )
= 73,800 pounds
d. Direct materials purchases budget in dollars = 369000*15 + 738000*1.2 + 147600*24 + 73800*45
= $ 1,328,400
e. Manufacturing labor budget in dollars = 1 hours per batch * 6 batches per day * 20 days per month * 6 months * ($ 18 per hour for ingredient preparation + $ 24 per hour for cooking and canning ) * 2 workers
= $ 60,480
2. The business requires an investment of $ 1,328,400 + 60,480
= $ 1,388,880 over six months.
This translates to monthly investment of $ 231,480
Therefore $ 50,000 investment is too small to begin with.
During step 3 of activity-based costing, activity overhead cost pool rates are used to assign overhead costs to final cost objects. Proper determination of activity rates depends on all of the following: proper calculation of total overhead costs proper assignment of costs to cost objects proper determination of factors which drive costs proper measurement of activities Rate your confidence to submit your answer.
Answer:
HEY
Explanation:
During the fiscal year ended June 30, 20X9, the city of Moorhead constructed a new courthouse that was budgeted to cost $5,000,000. Moorhead used a capital projects fund to account for the construction activities. In July of 20X8, a bid was accepted from Diamond Construction to build the courthouse for $4,800,000. On June 15, 20X9, Diamond completed construction and submitted a bill to the city for $4,900,000. The city accepted the bill and paid Diamond the entire amount owed, except for a 10 percentage retainage. On the statement of revenues, expenditures, and changes in fund balance prepared for the capital projects fund for the year ended June 30, 20X9, expenditures should be reported at
Answer:
Expenditures should be reported at $4,900,000
Explanation:
According to the given data On June 15, 20X9, Diamond completed construction and submitted a bill to the city for $4,900,000.
As city already accepted the bill and identified the liability, which they have to pay in case construction meets all the agreed requirement. 10% is just retention to deduct only if work not as per agreed terms and requirement
Hence, The expenditure will be recorded at actual amount spent for construction irrrespective of budget or retention amount.
So, so expenditures will be $4,900,000
Screening Model. Assume that the following criteria relevant to the process of screening various project opportunities are weighted in importance as follows:
• Quality (5)
• Cost (3)
• Speed to Market (7)
• Visibility (5)
• Reliability (1)
Our company has four project alternatives that satisfy these key feature as follows:
Alpha Bete Gamma Delta
Quality 1 3 3 5
Cost 7 7 5 3
Speed 5 5 3 5
Visibility 3 1 5 1
Reliability 5 5 7 7
Construct a project screening matrix to identify among these four projects the most likely candidates to be implemented.
Answer:
Project Alpha 81
Project Beta 81
Project Gamma 83
Project Delta 81
Among the four projects the most likely candidates to be implemented will
be Project Gamma .
Explanation:
Screening Model
1.Calculation for Project Alpha
Important Weight×Weight Score = Weighted Score
Quality 5 × 1 =5
Cost 3 ×7 =21
Speed 7 ×5 =35
Visibility 5 ×3= 15
Reliability 1× 5 =5
Total Score =81
2.Important Weight ×Weight Score = Weighted Score
Calculation for Project Beta
Quality 5 × 3 =15
Cost 3 ×7 =21
Speed 7× 5 =35
Visibility 5×1 =5
Reliability 1 ×5 =5
Total Score =81
3.Important Weight ×Weight Score = Weighted Score
Calculation for Project Gamma
Quality 5 ×3 =15
Cost 3 ×5 =15
Speed 7× 3= 21
Visibility 5×5 =25
Reliability 1×7 =7
Total Score=83
4.Important Weight ×Weight Score = Weighted Score
Calculation for project Delta
Quality 5 ×5 =25
Cost 3 ×3 =9
Speed 7× 5 =35
Visibility 5×1 =5
Reliability 1 ×7 =7
Total Score =81
Therefore among the four projects the most likely candidates to be implemented will
be Project Gamma because it has the highest
score with a score of 83.
A high-end clothing manufacturer has a policy to inspect each article of clothing before it is shipped to customers. Recently, the number of finished items that are failing this final inspection has more than doubled from 3% six months ago to 7% last month. This company would benefit from a strategy designed to:
Answer:
Examine the reliability of the process.
Explanation:
As a high end clothing company, it is a very good initiative and welcoming to have clothes that possibly posses global version and global value so it is good for such routine checks to be done. This could be tedious and cost the company more than usual.
In this case where there are a reasonable amount of such clothes failing these routine checks, it is not too good for the company as more re-evaluations are to be done in order to cub the rate at which this is in the last six months. This process of examining the reliability process is the company's best bet to tackle the issue they have at hand.
For the item below, determine whether the amount would be disclosed in the cash flow statement under: Operating (CFO), Investing (CFI), or Financing (CFF), as well as if would be a net increase (+) or decrease (-) in cash or cash equivalents:
A. Principal payments on long-term borrowings
B. Decrease in accounts receivable
C. Proceeds from long-term borrowings
D. Increase in deferred income tax net liability
E. Net earnings
F. Increase in prepaid expenses
G. Increase in merchandise inventories
H. Cash dividends paid
I. Proceeds from issuance of common stock
J. Increase in accrued salaries, wages, and related benefits
K. Payments for repurchase of common stock
L. Capital Expenditures
M. Increase in accounts payable
N. Depreciation and amortization expenses
Answer:
Explanation:
Operating Cashflows have to do with the transactions dealing with the day to day activities of the business including calculations of net income and revenue and expenses.
Investing Cashflow has to do with the transactions involving fixed assets such as Property, Land and Equipment since these are Capital Expenditure. Also included are stock ownership and bond holding of other entities.
Financing Cashflows refer to transactions relating to the provision of capital for the business through loans or Equity.
A. Principal payments on long-term borrowings.
FINANCING - decrease (-)
This is a financing transaction that deals with long term loans. It will decrease the cash or cash equivalents held.
B. Decrease in accounts receivable.
OPERATING - Increase +
This is an operating cashflow and it is an increase because Receivables reduce when they pay the business so cash increases.
C. Proceeds from long-term borrowings.
FINANCING - Increase +
This is a financing activity and the increase is due to money from Issuing Bonds or borrowing money coming into the business.
D. Increase in deferred income tax net liability.
OPERATING - Increase +
By reducing the amount that we pay in tax that means that less cash has been paid which also means that more cash is kept in the business which increases the Cash balance.
E. Net earnings.
OPERATING - Increase +
So long as the Net Earnings are positive, they go to the Operating Section and increase the amount of cash and cash equivalents.
F. Increase in prepaid expenses.
OPERATING - Decrease -
By increasing the amount of prepaid expenses, this means that the company used money to pay for expenses it hasn't incurred yet which reduces the cash in hand.
G. Increase in merchandise inventories.
OPERATING - Decrease -
By buying more Inventory, more cash was spent and this therefore reduces the cash and cash equivalents balance.
H. Cash dividends paid.
FINANCING - Decrease -
Dividends relate to equity and Equity is a Financing Cashflow Transaction. Paying Dividends means giving out cash so it reduces the cash and cash equivalents balance.
I. Proceeds from issuance of common stock.
FINANCING - Increase
Similar to proceeds from long term borrowings, Equity is a Financing activity as it finds the business, the proceeds received from here increase the cash and cash equivalents balance.
J. Increase in accrued salaries, wages, and related benefits.
OPERATING - Increase +
These are Operating Cashflow transactions and by withholding them, the business does not spend cash on them. That cash that was not paid is an increase to the cash and cash equivalents balance.
K. Payments for repurchase of common stock.
FINANCING - Decrease -
By repurchasing stock which is an Equity transaction, this goes to the Financing Section. The cash spent to repurchase the stock reduces the amount of cash and cash equivalents on hand.
L. Capital Expenditures.
INVESTING - Decrease -
By buying capital items or spending on Capital Investments, the company makes an investment and as such this goes to the Investment Section. The expenses are a reduction on cash.
M. Increase in accounts payable.
OPERATING - Increase +
Accounts Payable are an Operating Activity and when they are increased that means that the company paid less cash and bought more things on credit. That cash that wasn't paid is an increase in the cash balance.
N. Depreciation and amortization expenses.
OPERATING - Increase +
By including depreciation and amortization in the operating cashflow, these increase the Cashflow because they are non cash items. Even though they are recorded, no physical cash actually flows to them. This cash that was supposed to flow to them is in increase.
At the Millbrook High School cafeteria, students proceed along a series of stations in a single line: (1) get tray and utensils, (2) choose food, (3) select beverage, (4) pay. The school is concerned that students are taking too long to get their meal. The school has analyzed the capacities of each of the four steps in isolation and found there exists sufficient capacity at each resource in isolation. Which of the following is most likely to be causing the congestion?a. The bottleneck is probably at the last station because capacity is reduced the most when the bottleneck is at the end of the process. b. The implied utilization of the bottleneck is too low. c. Due to variability in processing times, both blocking and starving could be occurring. d. The process must be demand-constrained. e. The stations have similar utilizations.
Answer:
c. Due to variability in processing times, both blocking and starving could be occurring.
Explanation:
The problem here is that students take a long time to get their meal. It is understood that at each of the four stations there is ample space and so the most likely cause of delays is different processing times at four stations.
The problem of either blocking or starving arises when the processing times are very small or very large at one or two of the stations, which will significantly increase the cycle time of the operation.
hence, the correct option is c.
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 5.4 pounds $ 3.00 per pound $ 16.20 Direct labor 0.4 hours $ 6.00 per hour $ 2.40 During the most recent month, the following activity was recorded:
a. Ten thousand four hundred pounds of material were purchased at a cost of $2.90 per pound.
b. The company produced only 1,040 units, using 9,360 pounds of material. (The rest of the material purchased remained in raw materials inventory.)
c. Five hundred and sixteen hours of direct labor time were recorded at a total labor cost of $6,192.
Required: Compute the materials price and quantity variances for the month. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct materials 5.4 pounds $ 3.00 per pound.
10,400 pounds of material was purchased at a cost of $2.90 per pound.
The company produced only 1,040 units, using 9,360 pounds of material.
To calculate the direct material price and efficiency variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (3 - 2.9)*10,400
Direct material price variance= $1,040 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Standard quantity= 5.4*1,040= 5,616
Direct material quantity variance= (5,616 - 9,360)*3
Direct material quantity variance= $11,232 unfavorable
Global market channels involve a firm producing goods in:______
A. Their home country and exporting them to other countries.
B. Their home country to sell at home.
C. A foreign country to sell at home.
D. A foreign country to sell abroad.
Answer:
A. Their home country and exporting them to other countries.
Explanation:
A global market channel generally explains the production of commodities by a certain or group of firms and goods by a home country and exporting them to other countries. This is seen generally in the production of phones, laptops, tv brands refrigerators and a whole lot of products amongst tier 1 or tier 2 countries and are been shipped to lowest their countries and other tier countries. This is seen to boost the economy and international trade friendship of either countries though the country at the recieving end is loosing per capital but at the end, we need each other to grow and live.
Privacy:_______.
a. is an absolute value.
b. must be respected if we are to function as complete, self-governing agents.
c. is something that employees today don't care about.
d. is guaranteed by Article 3, section 3, of the Constitution.
Answer: b. must be respected if we are to function as complete, self-governing agents.
Explanation:
Privacy enables humans to be able to figure out who they are and what they want in life. By giving a person the right to privacy instead of interfering in their lives you are essentially giving them the power to make their own decisions and trusting them to do well with this right.
By respecting privacy therefore, humans are better able to function as complete and independent agents who can take charge of their own lives without having to worry about interference with the intent to influence.
You have $6,600 to deposit. Regency Bank offers 12 percent per year compounded monthly (1.0 percent per month), while King Bank offers 12 percent but will only compound annually. How much will your investment be worth in 17 years at each bank
Answer:
Instructions are below.
Explanation:
Giving the following information:
Deposit= $6,600
Regency Bank:
12 percent per year compounded monthly (1.0 percent per month)
King Bank:
12 percent but will only compound annually.
Number of years= 17
To calculate the final value, we need to use the following formula for each bank:
FV= PV*(1+i)^n
Regency Bank:
n=17*12= 204
FV= 6,600*(1.01^204)
FV= $50,246.3
King Bank:
FV= 6,600*(1.12^17)
FV= $45,315.87
The classified balance sheet for a company reported current assets of $1,754,244, total liabilities of $817,540, common stock of $1,180,000, and retained earnings of $148,260. The current ratio was 2.7. What is the total amount of noncurrent assets?
Answer:
$391,556
Explanation:
The values given are:
Total liabilities= $817,540
Common stock= $1,180,000
Retained earnings= $148,260
Current assets= $1,754,244
Therefore the non-current assets can be calculated as follows
Total liabilities+Common stock+Retained earnings-Current assets
$817,540+$1,180,000+$148,260-$1,754,244
= $2,145,800-$1,754,244
= $391,556
Hence the total amount of non-current assets is $391,556
Suppose that M = 300, P = 100, and Y = 6. Then the velocity of circulation equals Select one: a. 2.00. b. 3.00. c. 50 d. 0.50. e. 0.02.
Answer:
a. 2.00.
Explanation:
The formula and the computation of the velocity of circulation are shown below:
According to the quantity money theory
M = Total money
V = Velocity
P = Price level
Y = Volume of goods and services
As we know that
Total amount of money in the economy × velocity = Price level × volume of goods and services
300 × velocity = 100 × 6
300 × velocity = 600
So, the velocity is
= 600 ÷ 300
= 2
Hence, the first option is correct
In 2001, President George W. Bush and Federal Reserve Chairman Alan Greenspan were both concerned about a sluggish U.S. economy. They also were concerned about the large U.S. trade balance deficit. To help stimulate the economy, President Bush proposed a tax cut. What are the effects of the proposed policy using the IS-LM model
Answer:
The answer is given below.
Explanation:
The effect of this tax cut would be a resultant shift in the IS curve to the right, resulting in higher interest rates, currency appreciation, and bigger current account deficits. The tax cut would encourage consumers to spend more and, thereby increasing planned expenditure. The tax cut raises both income and the interest rate.
A basic finding of labor economics is that workers who have more experience in the labor force are paid more than workers who have less experience (holding constant the amount of formal education). True or False: This might be the case because more experience decreases the value of the marginal product of labor. True False Some studies have also found that experience at the same job (called job tenure) has an extra positive influence on wages. Job tenure is valuable because people gain that is useful to the firm.
Answer:
A. TRUE
B1. TRUE
B2. Job Specific Knowledge
Explanation:
1. TRUE because more experience will definitely means more on-the-job training because the employee has gain different experience from either same field or different field which will inturn help to increase the worker's value of the marginal product of labor which is why workers who have more experience in the labor force are tend to be paid more than workers who have less experience or no experience.
B1. TRUE because experience gain at the same job will definitely lead to an extra positive influence on wages.
B2. Job tenure is valuable because people will tend to be able to gain JOB SPECIFIC KNOWLEDGE that is useful to the firm.
JOB SPECIFIC KNOWLEDGE: can be defined as the way in which workers or an employee shows his or her abilities, skills and strengths in order to excel in that specific job which is why employers of labour will often include the skill that is required for the employee to be able to perform the job in their job posting.
Answer:
Explanation:
The correct answer to the first question is false, not true. Trust me
How long can foodborne illnesses last
Answer: Symptoms begin 2 to 10 days after becoming infected, and may last 1 to 2 weeks.
Explanation:
SmartTalk, Inc, makes and markets cell phones and related accessories. When problems develop with SmartTalk products or sales, the company may be liable in product liability for any of the following except:___________A) a manufacturing defectB) a design defect.C) an inadequate warning.D) an ineffective marketing plan.
Answer:
D) an ineffective marketing plan.
Explanation:
Product liability is defined as the liability that manufacturer bears when he puts defective product in the hands of the consumer.
Manufacturers are liable for damages that occur from the use of their products. They are also responsible for providing adequate instructions on use of the product and warning of adverse effects a user can experience.
SmartTalk, Inc produces cell phones and related accessories. They have product liability when there is a manufacturing defect, design defect, and inadequate warning on use of the product.
However the company does not have product liability for ineffective marketing as this is related to how well the company sells the product and not if the product is defective.
What are the strengths and weaknesses of the Campbell Soup Company's marketing?
Answer:
For one - their social media presance for a large corporation is really lacking. A company as well known as Campbell should be current in social media, they have not posted to in over a month.
They rely to heavily on the fact that they are the oldest name in the soup business and I feel like they are a little lazy when it comes to their marketing with other compitors on their heels.
On March 4 of 1999, XYZ Corporation takes out a $1 million loan. The company pays the interest semiannually. The six-month interest rate is six-month LIBOR 80 basis points, with a cap at 9.25%. Assume that LIBOR is at 8.5% on March 4, 1999, and 7.75% on September 4, 1999. What is the second interest payments on the loan
Answer: $85,500
Explanation:
From the question, we are told XYZ Corporation takes out a $1 million loan and the interest on the loan is paid semiannually.
We are also told that the six-month interest rate is six-month LIBOR 80 basis points, with a cap at 9.25%. Assume that LIBOR is at 8.5% on March 4, 1999, and 7.75% on September 4, 1999.
The second interest payments on the loan will be:
The interest rate will be:
Interest rate = LIBOR + 80bps
= 7.75 + 0.8
= 8.55%
Interest paid in the second period
= $1,000,000 × 8.55%
= $1,000,000 × 0.0855
= $85,500
Note that there is no need for using the cap since the interest didn't exceed 9.25%
Wal-Mart's Electronic Data Interchange (EDI) systems automate ordering and payment processes with suppliers, thereby reducing cost and improving order accuracy. Which of the five logistics decisions does this refer to?
A) Location
B) Transportation
C) Information
D) Warehousing
Answer:
Information
Explanation:
The automation capturesthe customer's information and speeds up the ordering process.
I hope my answer helps you
You just won the $87 million Ultimate Lotto jackpot. Your winnings will be paid as $2,900,000 per year for the next 30 years. If the appropriate interest rate is 6.2 percent, what is the value of your windfall
Answer:
Explanation:
In order to calculate the value of your windfall we would have to calculate the following formula:
Value of windall=P×[1-(1÷(1+r)^n)]÷r
According to the given data we have the following:
Interest rate per annum=6.20%
Number of years= 30
Number of compoundings per per annum=1
Payment per period (P)=$2,900,000
Therefore, Value of windall=$2,900,000×(1-(1÷(1+6.2%)^30))÷6.2%
Value of windall=$39,078,091.71
The value of your windfall is $39,078,091.71
Complete the following table by selecting the term that matches each definition on the left.
Definition
1. Market Labor Demand Curve
2. Market Labor Supply Curve
3. Marginal Product of Labor
4. Value of the Marginal Product of Labor
a. The additional revenue the firm receives from selling the output produced from an additional unit of labor.
b. The graphical representation of the relationship between the wage rate and the quantity of labor workers are willing to provide in a market.
c. The graphical representation of the relationship between the wage rate and the quantity of labor firms are willing to hire in a market.
d. The increase in the amount of output from an additional unit of labor.
Answer:
The correct answers are the following:
1 - C
2 - B
3 - D
4 - A
Explanation:
1 - C: The market labor demand curve is represented graphically by the relationship between the wage rate and the quantity of labor firms are willing to hire in a market due to the fact that the firms are the ones who are looking for workers and therefore they demand it.
2 - B: The market labor supply curve is represented graphically by the relationship between the wage rate and the quantity of labor that the workers are willing to provide due to the fact that they are the one who put their work in the market in order to be used.
3 - D: The marginal product of labor represents the increase in the amount of output from an additional unit of labor that an additional worker puts in the firm.
4 - A: The value of the marginal product of labor comprehends the additional revenue the firm receives from selling the output produced from and additional unit of labor that an additional worker put in the firm.
Effect of Omitting Adjustments For the year ending April 30, Mann Medical Services Co. mistakenly omitted adjusting entries for (1) $9,200 of supplies that were used, (2) unearned revenue of $12,000 that was earned, and (3) insurance of $2,500 that expired. Indicate the combined effect of the errors on (a) revenues, (b) expenses, and (c) net income for the year ended April 30. (a) Revenues understated $ (b) Expenses $ (c) Net income $
Answer:
(a) Revenues overstated $12,000
(b) Expenses understated $11,700
(c) Net income overstated $300
Explanation:
First prepare the journal entries pertaining to the omitted adjusting entries as follows;
Entry 1
Supplies Expense $9,200 (debit)
Supplies $9,200 (credit)
Entry 2
Revenue $12,000 (debit)
Unearned Revenue $12,000 (credit)
Entry 3
Insurance Expense $2,500 (debit)
Prepaid Insurance $2,500 (credit)
Then consider the Effects on the named Accounts
Expenses.
Affected by Entry 1 and Entry 3
Expenses are understated by $11,700
Revenues.
Affected by Entry 2.
Revenues are overstated by $12,000
Net Income
Affected by Entries 1, 2, 3 also the net effect of the two items above.
Income is overstated by $300
Valuable Incorporated's stock currently sells for $45 per share. The firm has 20 million share of common outstanding. The firm's total debt equals $600 million and its common equity equals $400 million. What is the firm's market value added
Answer:
The firm's market value added is $500,000,000
Explanation:
According to the given data we have the following:
Stock market price per share= $ 45
No of shares= 20,000,000
Therefore, Market value of equity = MPS * no of shares
$45*20,000,000= $ 900,000,000
Invested capital or common equity = $400,000,000
Therefore, in order to calculate the firm's market value added we would have to make the following calculation:
Market value added = Market value of stock - invested capital
Market value added =$900,000,000 -$400,000,000
Market value added =$500,000,000
The firm's market value added is $500,000,000
an investment that in today's dollars returns 12% of your investment in year 1, 18% in year 2, 11% in year 3, and the remainder in year 4. Rounded to two places, what is the Duration of this investment
Answer:
3.17 years
Explanation:
We can calculate the duration of Investment by duration formula,
Duration= Sum of (PV of each cashflow x year)
PV of each cash flow can be understood as Dolar return % given in the Question.
Year1 Year2 Year3 Year4
Duration= (12% x 1) + (18% x 2) + (11% x 3) + (59% x 4)
Duration= 0.12 + 0.36 + 0.33 + 2.36
Duration= 3.17 years
Note: (100%-12%-18%-11%)59% can be calculated as the remainder of 100% after deducting each year's %.
Sarah signed an agreement to rent an apartment from a landlord who also signed the agreement. During the lease negotiations, the landlord agreed to provide Sarah with extra storage space in the basement of the apartment building but this promise was not included in the agreement. The landlord now tells Sarah that he will not provide the extra space. If the landlord admits making the promise, under the parol evidence rule (select one):
Answer:
He is legally expected to provide the space under the overconfidence trap
Explanation:
The landlord was overconfident about his judgment abilities and was quick to make the promise to provide the extra space without thinking of a wider range of possibilities. Thereby exposing himself to a greater risk than he imagined. The parole evidence is an evidence of oral speech. Since he admitted making the promise to Sarah, he is legally expected to provide the space.
Brief Exercise 10-18 Presented below is the partial bond discount amortization schedule for Whispering Winds Corp., which uses the effective-interest method of amortization. Interest PeriodsInterest to Be PaidInterest Expense to Be Recorded Discount Amortization Unamortized Discount Bond Carrying Value Issue date$67,991$1,350,009 1$70,900$74,250$3,35064,6411,353,359 270,90074,4353,53561,1061,356,894 (a) Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1.
Answer:
interest expense 74,250 debit
discount on bonds payable 3,350 credit
cash 70,900 credit
Explanation:
Adjustment to a better display of the data:
Paid Expense Amortization Unarmotized Carrying Value
Issue Date 67,991 1,356,709
1 70,900 74,250 3,350 64,641 1,353,359
2 70,900 74,435 3,535 61,106 1,349,824
To record the payment of interest and discount we will debit the interst expense
and credit the cash given along with the discount on Bonds Payble for the difference
