The standard deviation from investing in the asset is: (Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.))

Answers

Answer 1

Here is the complete question.

State of the Economy            Probability of                  Percentage Returns

                                                the States

Economic recession                        25%                           5%

Moderate economic growth           55%                           10%

Strong economic growth                20%                           13%

The standard deviation from investing in the asset is: (Round to the nearest hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.))

Answer:

standard deviation from investing in the asset is: 2.76

Explanation:

From the information given above; the main task to do is to calculate for the standard deviation from investing in the asset ,but in order to do that; we must first determine the expected return value and the variance.

The expected return can either be the profit or loss the investor predict to get after investing on an instrument. It can be determined by multiplying the potential outcomes by the chances of them occurring and then totaling these results.

Here;

the potential outcome = Probability of the States

chances of them occurring = Percentage Returns

Expected return = (0.25 × 5%) + (0.55 ×  10%) + (0.20 × 13%)

Expected return = (1.25 + 5.5 + 2.6)%

Expected return = 9.35%

Variance = 0.25 × (5% - 9.35%)² + 0.55 × (10% - 9.35%)² + 0.20 × (13% - 9.35%)²

Variance = 0.25 ( -4.35%)² + 0.55 (0.3575%)² + 0.20 (3.65%)²

Variance = 0.0473 + 0.0023 + 0.0266

Variance = 0.0763

Finally; the standard deviation = [tex]\sqrt{variance}[/tex]

standard deviation = [tex]\sqrt {0.0763[/tex]

standard deviation = 0.276

To the nearest hundredth percent and by answering in the percent format without including the % sign ; we have

standard deviation = 2.76


Related Questions

Kinds of managers
An example of a position that a team leader would hold is:_______
a. vice president.
b. department manager.
c. group facilitator.
d. divisional manager
Using your knowledge of the different levels of management in organizations, indicate whether each statement is most likely to apply to first-level, middle-level, or top-level managers.

Answers

Answer:

Option C

group facilitator.

Explanation:

A team leader would most likely be a group facilitator. This is because a team is usually a small unit assigned with the task of achieving a specific goal. Most of the time, teams are given small and well defined tasks which are not usually as complex as that of the whole organization.

A team leader would be a group facilitator because he is expected to coordinate the efforts of a small group of people to achieve a set goal.  His scope of authority and influence is only limited to that of the group.

Ratio proficiency McDougal​ Printing, Inc., had sales totaling $ 41 comma 000 comma 000 in fiscal year 2019. Some ratios for the company are listed below. Use this information to determine the dollar values of various income statement and balance sheet accounts as requested. Assume a​ 365-day year. Calculate values for the​ following: a. Gross profits b. Cost of goods sold c. Operating profits d. Operating expenses e. Earnings available for common stockholders f. Total assets g. Total common stock equity h. Accounts receivable McDougal​ Printing, Inc. Year Ended December​ 31, 2019 Sales $ 41 comma 000 comma 000 Gross profit margin 76​% Operating profit margin 39​% Net profit margin 7​% Return on total assets 13.3​% Return on common equity 24​% Total asset turnover 1.9 Average collection period 64.3 days

Answers

Answer:

a) Gross Profit is $31,160,000      

b) Cost of goods sold is $9,840,000      

c) Operating profits is $15,990,000    

d) Operating Expenses is $15,170,000    

e) Earnings available to common stockholders is $2,870,000    

f) Total assets is $21,581,947.37      

g)Total common stock equity is $11,958,333.33  

h) Accounts Receivable is $7,222,739.73

Explanation:

McDougal​ Printing, Inc.

Year Ended December​ 31, 2019

Sales = $ 41,000,000

Gross profit margin = 76​%

Operating profit margin = 39​%

Net profit margin = 7​%

Return on total assets = 13.3​%

Return on common equity = 24​%

Total asset turnover = 1.9

Average collection period = 64.3 days

Calculation of the dollar values of various income statement and balance sheet accounts    

a) Gross Profit = Sales × Gross Profit margin

= $41,000,000 × 76%

= $31,160,000      

b) Cost of goods sold = Sales - Gross profit

= $41,000,000 - $31,160,000

= $9,840,000      

c) Operating profits = Sales × Operating profit margin

= $41,000,000 × 39% = $15,990,000    

d) Operating Expenses = Gross profit - Operating profit

= $31,160,000 - $15,990,000

= $15,170,000    

e) Earnings available to common stockholders = Sales × Net profit margin

= $41,000,000 × 7%

= $2,870,000    

f) Total assets = Sales ÷ Total asset turnover ratio

= $41,000,000 ÷ 1.9

= $21,581,947.37      

g)Total common stock equity = Earnings available to common stockholders ÷ Return on common equity %

= $2,870,000 ÷ 24%

= $11,958,333.33  

h) Accounts Receivable = (Sales ÷ 365 days) × Average collection period

= ($41,000,000 ÷ 365 days) × 64.3 days

= $7,222,739.73

Bob, proprietor of Bob's Burgers, would like to retire in 20 years. He plans to deposit $6500 at the end of each year for the next 20 years into an account expected to earn 7.5% compounded annually. How much will Bob have in his retirement account in 20 years immediately after making his last deposit

Answers

Answer:

$281,480

Explanation:

we need to find the future value of the annuity payments, we can use the future value of annuity formula (I couldn't find an annuity table for 7.5%):  

future value = annual payment x [(1 + r)ⁿ  - 1] / r

annual payment = $6,500r = 7.5%n = 20 years

future value = $6,500 x [(1 + 0.075)²⁰ - 1] / 0.075 = $6,500 x 43.30468 = $281,480

The amount that Bob have in his retirement account in 20 years immediately after making his last deposit is $281,480.

Future value:

Using this formula

Future value =Annual payment x [(1 + Interest rate)^Number of years  - 1] / Interest rate

Where:

Annual payment = $6,500

Interest rate = 7.5% or 0.075

Number of years= 20 years

Let plug in the formula

Future value = $6,500 x [(1 + 0.075)²⁰ - 1] / 0.075

Future value=$6,500 x [(1 .075)²⁰ - 1] / 0.075

Future value=$6,500 x [(4.24785) - 1] / 0.075

Future value=$6,500 x [3.24785]/ 0.075

Future value = $6,500 x 43.30467

Future value= $281,480

Inconclusion the amount that Bob have in his retirement account in 20 years immediately after making his last deposit is $281,480.

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Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure has a 20% weight in equity, 10% in preferred stock, and 70% in debt. The cost of equity capital is 14%, the cost of preferred stock is 10%, and the pretax cost of debt is 9%. What is the weighted average cost of capital for Ford if its marginal tax rate is 30%?

Answers

Answer: 8.21%

Explanation:

The Weighted Average Cost of Capital(WACC) simply put, is the rate at which a company pays those who have invested in it and financed it be it debt holders or equity holders.

The rates in question are averaged according to the proportion by which the company uses the said capital. This results in the following formula,

WACC= [(Wd*Rd) * (1-Tax) + (We * Re) +(Wp * Rp )]

Where,

Wd is the Weight of debt

We is the weight of common Equity

Wp is the weight of preferred Equity

Rd is the Pre-tax cost of debt

Re is the cost of common Equity

Rp is the cost of Preferred equity.

Note: Sometimes you will be given the After - tax cost of debt. In which case you will not need to include the tax adjustment of (1 - tax).

Calculating,

= [( 70% * 9%) * ( 1 - 30%) + (20% * 14%) + (10% * 10%) ]

= 0.0441 + 0.028 + 0.01

= 0.0821

= 8.21%

At December 31, Idaho Company had the following ending account balances:
Retained Earnings $250,000
Preferred Stock ($100 par, 7% cumulative, 10,000 authorized,
5,000 issued and outstanding) 500,000
Treasury Stock 40,000
Paid-In Capital in Excess of Par—Common Stock 625,000
Paid-In Capital in Excess of Par—Preferred Stock 50,000
Common Stock ($5 par value, 500,000 shares authorized,
105,000 issued) 525,000
Required:
Prepare the Stockholders' equity section of the balance sheet in good form with all of the required disclosures.

Answers

Answer:

Balance of Stockholder's Equity at December 31 is $1,910,000.

Explanation:

This will appear as follows

Idaho Company

Details                                                                         $      

Stockholder's Equity:

Common Stock                                                       525,000

Preferred Stock                                                      500,000

Additional Paid-In Cap. - Common Stock             625,000

Additional Paid-In Cap. - Preferred Stock              50,000

Treasury Stock                                                        (40,000 )

Retained Earnings                                                  250,000  

Balance at December 31                                       1,910,000  

The stockholders' equity or the share capital of the company is the amount of capital that is the ownership of investors of shareholders of the company over the assets and debts of the company.

The equity shareholder's are the true owners of the company as they are legible for decision making and voting's.

The stockholders' equity section of the balance sheet includes: common shares, preferred shares, retained earnings, and treasury stock.

The stockholders' equity section of the balance sheet is prepared in the image attached below.

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The phone bill for a corporation consists of both fixed and variable costs. Refer to the fourminusmonth data below and apply the highminuslow method to answer the question. Minutes Total Bill January 470 $ 4 comma 500 February 200 $ 2 comma 695 March 180 $ 2 comma 650 April 320 $ 2 comma 830 If the company uses 390 minutes in​ May, how much will the total bill​ be? (Round any intermediate calculations to the nearest cent and your final answer to the nearest​ dollar.)

Answers

Answer:

Total cost= $3,989.65

Explanation:

Giving the following information:

Minutes Total Bill

January 470 $4,500

February 200 $2,695

March 180 $2,650

April 320 $2,830

First, we need to calculate the unitary variable cost and fixed costs:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (4,500 - 2,650) / (470 - 180)

Variable cost per unit= $6.37931

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 4,500 - (6.37931*470)

Fixed costs= $1,501.72

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 2,650 - (6.37931*180)

Fixed costs= $1,501.72

If the company uses 390 minutes in​ May:

Total cost= 1,501.72 + 6.37931*390

Total cost= $3,989.65

House A has an ocean view and House B does not. In all other respects, the two houses are the same. The market price of house A is $2,800,000; the market price of house B is $2,600,000. The ocean view is therefore valued at a. $1,950,000. b. $2,700,000. c. $200,000. d. -$700,000.

Answers

Answer:

$200,000

Explanation:

The value of the ocean is the price difference between the two houses

$2,800,000 - $2,600,000 = $200,000

I hope my answer helps you

Spicewood Stables, Inc. was established in Dripping Springs, Texas, on April 1. The company provides stables, care for animals, and grounds for riding and showing horses. You have been hired as the new Assistant Controller. The following transactions for April are provided for your review.1. Received contributions from investors and issued $330,000 of common stock on April 1.2. Built a barn and other buildings for $165,000. On April 2, the company paid half the amount in cash on April 1 and signed a three-year note payable for the balance.3. Provided $24,900 in animal care services for customers on April 3, all on credit.4. Rented stables to customers who cared for their own animals; received cash of $11,500 on April 4.5. On April 5, received $3,900 cash from a customer to board her horse in May, June, and July (record as Unearned Revenue).6. Purchased hay and feed supplies on account on April 6 for $4,700.7. Paid $2,860 on accounts payable on April 7 for previous purchases.8. Received $1,240 from customers on April 8 on accounts receivable.9. On April 9, prepaid a two-year insurance policy for $5,700. for coverage starting in May.10. On April 28, paid $960 in cash for water utilities incurred in the month.11. Paid $15,800 in wages on April 29 for work done this month.12. Received an electric utility bill on April 30 for $1,940 for usage in April; the bill will be paid next month.1. Prepare the journal entry for each of the above transactions.

Answers

Answer:

1. Received contributions from investors and issued $330,000 of common stock on April 1.

Dr Cash 330,000

    Cr Common stock 330,000

2. Built a barn and other buildings for $165,000. On April 2, the company paid half the amount in cash on April 1 and signed a three-year note payable for the balance.

Dr Barn and Buildings 165,000

    Cr Cash 82,500

    Cr Notes payable 82,500

3. Provided $24,900 in animal care services for customers on April 3, all on credit.

Dr Accounts receivable 24,900

    Cr Service revenue 24,900

4. Rented stables to customers who cared for their own animals; received cash of $11,500 on April 4.

Dr Cash 11,500

    Cr Rent revenue 11,500

5. On April 5, received $3,900 cash from a customer to board her horse in May, June, and July (record as Unearned Revenue).

Dr Cash 3,900

    Cr Unearned revenue 3,900

6. Purchased hay and feed supplies on account on April 6 for $4,700.

Dr Supplies 4,700

    Cr Accounts payable 4,700

7. Paid $2,860 on accounts payable on April 7 for previous purchases.

Dr Accounts payable 2,860

    Cr Cash 2,860

8. Received $1,240 from customers on April 8 on accounts receivable.

Dr Cash 1,240

    Cr Accounts receivable 1,240

9. On April 9, prepaid a two-year insurance policy for $5,700. for coverage starting in May.

Dr Prepaid insurance 5,700

    Cr Cash 5,700

10. On April 28, paid $960 in cash for water utilities incurred in the month.

Dr Utilities expense 960

    Cr Cash 960

11. Paid $15,800 in wages on April 29 for work done this month.

Dr Wages expense 15,800

    Cr Cash 15,800

12. Received an electric utility bill on April 30 for $1,940 for usage in April; the bill will be paid next month.

Dr Utilities expense 1,940

    Cr Accounts payable 1,940

A Journal entry is a systematic record of the transactions with the debit and credit columns, and it helps in identifying the transactions of a particular business in various heads and Accounting procedure starts from the journal entries.

Refer to the image given below for journal entries of the given transactions.

Various types of journal entries are:

Purchase of goods

Sale of goods

Payment of wages

Payment of insurance premium

Receiving of cash

Bad debts occurred, etc.

Learn more about journal entries, refer:

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Each of the following is a method by which to allocate joint costs except: Group of answer choices a. Chemical analysis. b. Relative sales value. c. Relative weight, volume, or linear measure. d. Relative marketing costs. g

Answers

Answer:

The correct answer is the option A: Chemical analysis.

Explanation:

To begin with, a chemical analysis consists in the study of chemical composition and structure of substances and it refers to the field of chemistry as its name indicates so therefore that it does not implicate the allocation of joint costs as all of the other methods. Moreover, this type of analysis is considered to be the principal basis technique by which every chemical information is obtanied and there are also two main brances in it, the qualitative and quantitative analysis.

One person owns a company's bond, and another owns a share of stock. The company makes a profit of $50 during a certain year. The bondholder is owed a coupon payment of $50, and the stockholder is promised a dividend of $50.

Which of the following is the likeliest outcome of this situation?

a) The bondholder is paid $50

b) The stockholder is paid $50

c) Each investor is paid $25

d) The company keeps the $50 as retained earnings

e) None of these outcomes are likely to happen

2) Assume you bought a share of stock a year ago at a certain price, and today you need the money, so are forced to sell it even though the price has decreased.

Which of the following statements is true?

a) The stock's dividend yield is negative.

b) The stock's dividend yield is positive.

c) The stock's capital gains yield is negative.

d) The stock's capital gains yield is positive.

e) The stock's current yield is negative.

Answers

Answer:

The correct option for the first question is A,the bondholder is paid $50

The correct option for the second question is C,the stock's capital gains yield is negative

Explanation:

The company has to pay the $50 owed to bondholder as payment of coupon payment takes precedence over payment of dividends.

It would be inappropriate to keep the $50 in retained earnings since there is a covenant in the agreement signed with bondholders that their coupon payment annually is mandatory.

The correct answer to the second question is that the stock's capital gains yield is negative.

Capital gains yield =the price now(which is lower)-original price/original price

Since the numerator would give a negative figure,overall yield is negative

Select the best closing paragraph of a bad-news letter. a. Once again, we want to express how sorry we are that we are not able to offer you the position. b. We wish you the best in your job search. c. If you have further questions about this decision, please feel free to call me immediately. d. We regret that we are unable to consider your application

Answers

Answer:b

Explanation:

Pickup Company acquired 100 percent of the voting common shares of Sedan Corporation by issuing bonds with a par value and fair value of $200,000. Immediately prior to the acquisition, Pickup reported total assets of $600,000, liabilities of $370,000, and stockholders’ equity of $230,000. At that date, Sedan reported total assets of $500,000, liabilities of $300,000, and stockholders’ equity of $200,000. Included in Sedan’s liabilities was an account payable to Pickup in the amount of $50,000, which Pickup included in its accounts receivable.
Based on the preceding information, what amount of total assets did Pickup report in its balance sheet immediately after the acquisition?
a. 1,100,000
b. 1,000,000
c. 800,000
d. 1,600,000

Answers

Answer:

c. $800,000

Explanation:

Relevant data provided

Beta reported total assets = $600,000

Fair value of investment = $200,000

The computation of total assets is shown below:-

Total assets did beta report = Beta reported total assets + Fair value of investment

= $600,000 + $200,000

= $800,000

Therefore for computing the total assets did beta report we simply added the beta reported total assets with fair value of investment.

How many years would it take for Jughead to save an adequate amount for retirement if he deposits $2,000 per month into an account beginning today that pays 12 percent per year if he wishes to have a total of $1,000,000 at retirement

Answers

Answer:

The number of year needed to save the amount = 36.2739

Explanation:

The annual deposit amount (A) = $2000

Annual interest rate (r ) = 12 %

The retirement amount or the expected amount at the time of retirement (FV)  = $1000000

Number of years = n

So if the Jughead want the retirement amount $1000000 that has interest rate 12 percent then we need to calculate the number  of years.

Below is the calculation of number of years.

[tex]FV = A \frac{(1 + r)^{n}}{r} \\1000000 = 2000 \frac{(1 + 12 \ percent )^{n} - 1}{12 \ percent} \\\frac {1000000}{2000} = \frac{(1 + 12 \ percent )^{n} - 1}{12 \ percent} \\500 = \frac{(1 + 0.12)^{n} - 1}{0.12} \\ n = 36.2739 \ years[/tex]

You are seeking a bank loan for $12000 and go to Prosper Bank and to Skyline Bank to see which loan has a lower rate. Your plan is to open a restaurant, which is quite risky. Prosper Bank expects that it could recover $10,000 if you defaulted while Skyline thinks it would only recoup $9000. However, Skyline puts your probability of repayment at 97% while Prosper only has it at 96%. Which loan has the lower interest rate? Assume both banks are aiming to earn 6%.

Answers

Answer:

SKYLINE = 6.96%, PROSPER = 6.94%.

Explanation:

So, in the question above we are given the following parameters or information or data as;

=> Amount of bank loan been seeked for = $12000.

=> "Prosper Bank expects that it could recover $10,000 if you defaulted while Skyline thinks it would only recoup $9000."

=> " Skyline puts the probability of repayment at 97% while Prosper only has it at 96%."

=>" both banks are aiming to earn 6%."

So, for both banks we will be making use of the formula below:

L × (1 + RER) = POR × L × (1 + IRCr) + (1 - POR) × RCD.

Where L = loan, RER = required earning rate, POR = probability of repayment, IRCr = interest rate charged and RCD = Recovery in case of default.

(A). FOR PROSPER BANK:

12000 × ( 1 + 6%) = 96% × 12000 × (1 + IRCr) + (1 - 96% ) × 10000.

SOLVING FOR IRCr, we have;

interest rate charged = 6.94%.

(B). FOR SKYLINE BANK;

12000 × (1 + 6%) = 97% × 12000 × (1 + IRcr ) + (1 - 97%) × 9000.

IRCr =6.96%.

An adjusted trial balance is given below.

Debit Credit
Cash $12,000
Accounts Receivable 3,000
Prepaid Rent 700
Merchandise Inventory 25, 000
Accounts Payable $4,100
Salaries Payable 1,500
Notes Payable 800
Common Stock 8,000
Retained Earnings 3,500
Dividends 1,000
Sales Revenue 89,500
Cost of Goods Sold 21,000
Salaries Expense 20,000
Rent Expense 14,000
Selling Expense 8,300
Delivery Expense 1,900
Supplies Expenseâââââ 500âââââââââââââââ
Totalâ $107,400â$ 107,400

What will be the final balance in theâ corporation's Retained Earnings account after recording the closingâentries?

Answers

Answer:

$16,400

Explanation:

The formula for Retained Earnings = Total assets - Total Liabilities except Retained Earnings

Under the Balance sheet in accordance with this question, the asset recognizable are Cash Account Receivables Prepaid Rent and Merchandise inventory. The liability recognizable are Account payable, Salary Payable, Notes Payable and Common stocks

Therefore Retained earnings = (12000+3000+700+25000)-(14000+1500+800+8000)

Retained earnings = 40700 - 24300

Retained earnings = $16,400

Stritch Company is trying to decide how many units of merchandise to order each month. The company's policy is to have 20% of the next month's sales in inventory at the end of each month. Projected sales for August, September, and October are 24,000 units, 14,000 units, and 34,000 units, respectively. How many units must be purchased in September

Answers

Answer:

Purchases budget = 18,000 units

Explanation:

Purchases budget = Sales + closing inventory - opening inventory

Closing inventory for September = 20% of august sales = 20% × 34,000=6,800

Opening inventor for September = 20%× September = 20% × 14,000= 2800

Purchases budget for September = 14,000 + 6,800 - 2,800 = 18,000

Purchases budget = 18,000 units

Preston Woods has 17,500 shares of stock outstanding along with $408,000 of interest bearing debt. The market and book values of the debt are the same. The firm has sales of $697,000 and a profit margin of 6.8 percent. The tax rate is 35 percent, the debt-equity ratio is 40 percent, and the price-earnings ratio is 11.8. The firm has $130,000 of current assets of which $41,200 is cash. What is the enterprise value

Answers

Answer:

$ 926,072.80  

Explanation:

The company's market capitalization can be computed using the price-earnings ratio of 11.8.

Net income(earnings after tax)=sales* profit margin=$697,000*6.8%=

$ 47,396.00  

P/E ratio=market capitalization/net income

11.8=market capitalization/$ 47,396.00  

market capitalization=11.8*$47,396.00  

market capitalization=$ 559,272.80  

Enterprise value=market capitalization+debt-cash

enterprise value=$ 559,272.80+$408,000.00-41,200=$ 926,072.80  

Lately the demand for building materials has dropped due to the slowdown in new housing construction. Woods Corp, is thinking of closing its fine wood division that produces mahogany and cherry lumber for building cabinets and other applications. Under the Boston Consulting Group Growth-Share Matrix, the fine wood division would most likely be classified as a:________.
A. dog
B. cash cow
C. top gun
D. star

Answers

Answer:

A. dog

Explanation:

The Boston Consulting Group growth share matrix is a graphical representation used in planning which of a companie's products should be kept, discarded, or invested more in.

Four categories of products are stars, dogs, cash cow, and question mark.

Dogs have low market share and low growth rate. Options for handling such products are selling, repositioning, or liquidation.

Demand for building materials has dropped due to the slowdown in new housing construction and the company is considering bclosing its fine wood division that produces mahogany and cherry lumber for building cabinets and other applications.

This division is most likely a dog

In its first month of operations, Concord Corporation made three purchases of merchandise in the following sequence: (1) 250 units at $6, (2) 350 units at $8, and (3) 450 units at $9. Assuming there are 150 units on hand at the end of the period, compute the cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. Concord Corporation uses a periodic inventory system.

Answers

Answer:

FIFO - $1350

LIFO - $900

Explanation:

Total inventory = 250 + 350 + 450 = 1050

Total inventory sold = 1050 - 150 = 900

FIFO means first in , first out. It means that it is the first purchased inventory that is the first to be sold. So the ending inventory would consist of the last purchased inventory. So the cost of the ending inventory would be allocated to the 3rd purchase of inventory

150 x $9 = $1350

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold. So the ending inventory would consist of the first purchased inventory. So the cost of the ending inventory would be allocated to the 1st purchase of inventory

150 x $6 = $900

I hope my answer helps you

Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year).
May 1 Prepared a company check for $350 to establish the petty cash fund.
15 Prepared a company check to replenish the fund for the following expenditures made since May 1.
a. Paid $109.20 for janitorial services.
b. Paid $89.15 for miscellaneous expenses.
c. Paid postage expenses of $60.90.
d. Paid $80.01 to The County Gazette (the local newspaper) for an advertisement.
e. Counted $26.84 remaining in the petty cashbox.
16 Prepared a company check for $200 to increase the fund to $550.
31 The petty cashier reports that $370.27 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
f. Paid postage expenses of $59.10.
g. Reimbursed the office manager for business mileage, $47.05.
h. Paid $48.58 to deliver merchandise to a customer, terms FOB destination.
31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $500.
Required:
1. Prepare journal entries to establish the fund on May 1, to replenish it on May 15 and on May 31, and to reflect any increase or decrease in the fund balance on May 16 and May 31. (Round your answers to 2 decimal places.)

Answers

Answer:

1-May

Dr Petty cash 350

Cr Cash 350

15-May

Dr Janitorial services 109.20

Dr Miscellaneous 89.15

Dr Postage expense 60.90

Dr Advertisement expense 80.01

Cr Cash over and short 16.1

Cr Cash 323.16

16-May

Dr Petty cash 200

Cr Cash 200

31-May

Dr Postage expense 47.05

Dr Mileage expense 38.5

Dr Delivery expense 48.58

Cr Cash 134.13

31-May

Dr Cash 50

Cr Petty cash 50

Explanation:

Kiona Co Journal entries

1-May

Dr Petty cash 350

Cr Cash 350

15-May

Dr Janitorial services 109.20

Dr Miscellaneous 89.15

Dr Postage expense 60.90

Dr Advertisment expense 80.01

Cr Cash over and short 16.1

Cr Cash 323.16

(350-26.84)

16-May

Dr Petty cash 200

Cr Cash 200

31-May

Dr Postage expense 47.05

Dr Mileage expense 38.5

Dr Delivery expense 48.58

Cr Cash 134.13

31-May

Dr Cash 50

Cr Petty cash 50

A few years back, Dave and Jana bought a new home. They borrowed $230,415 at a fixed rate of 5.49% (15-year term) with monthly payments of $1,881.46. They just made their twenty-fifth payment and the current balance on the loan is $208,555.87.
Interest rates are at an all-time low and Dave and Jana are thinking of refinancing to a new 15-year fixed loan. Their bank has made the
following offer: 15-year term, 3.0%, plus out-of-pocket costs of $2,937. The out-of-pocket costs must be paid in full at the time of refinancing.
Build a spreadsheet model to evaluate this offer. The Excel function:
=PMT(rate, nper, pv, fv, type)
alculates the payment for a loan based on constant payments and a constant interest rate. The arguments of this function are as follows:
rate = the interest rate for the loan
nper = the total number of payments
pv= present value - - the amount borrowed
fv = future value - - the desired cash balance after the last payment (usually 0)
type = payment type (0 = end of period, 1 = beginning of the period)
For example, for Dave and Jana's original loan there will be 180 payments (12*15 = 180), so we would use =PMT( .0549/12, 180, 230415,0,0) = $1881.46. Note that since payments are made monthly, the annual interest rate must be expressed as a monthly rate. Also, for payment calculations, we assume that the payment is made at the end of the month.
Assume that Dave and Jana have accepted the refinance offer, and that there is no pre-payment penalty, so that anything above the beyond the required payment is applied to the principal. Construct a spreadsheet model in Excel so that you may use Goal Seek to determine the monthly payment that will allow Dave and Jana to pay off the loan in 12 years. Do the same for 10 and 11 years. Which option for prepayment if any, would you choose and why?
(Hint: Break each monthly payment up into interest and principal [the amount that gets deducted from the balance owed] Recall that the monthly interest that is charged is just the monthly loan rate multiplied by the remaining loan balance.)
If required, round your answers to two decimal places.
Pay off loan in years Additional Payment
10 Years $
11 Years $
12 Years $
Which option for prepayment if any, would you choose and why?

Answers

Answer:

Explanation:

If required, round your answers to two decimal places.

Pay off loan in years Additional Payment

10 Years $

11 Years $

12 Years $

Which option for prepayment if any, would you choose and why?

New monthly payment

PMT(3%/12, 15*12, 208555.87, 0, 0) = $1,440.25

Now, we need find the additional amount that they need to pay in order to repay their outstanding loan in 10,11 and 12 years. So, using the above formula, we get

10-year installment = PMT(3%/12, 10*12, 208555.87, 0, 0) = $2,013.83

11-year installment = PMT(3%/12, 11*12, 208555.87, 0, 0) = $1,856.93

12-year installment = PMT(3%/12, 12*12, 208555.87, 0, 0) = $1,726.40

Additional Monthly Payment

10-year: $2,013.83 - $1,440.25 = $573.58

11-year: $1,856.93 - $1,440.25 = $416.68

12-year: $1,726.40 - $1,440.25 = $286.15

Refinancing means finance again(object) and, usually with a new loan with a low-interest rate.

What is the term refinancing means?

Refinance, or "refi" briefly, refers to the process of reviewing and replacing existing credit agreement terms, usually as they relate to the loan or mortgage.

Calculation of new monthly payment under refinance model:

New monthly payment:

[tex]PMT(3\%/12, 15\times 12, 208555.87, 0, 0) = \$1,440.25[/tex]

The calculation is shown in the attached image.

Now, we need to find the additional amount that they need to pay in order to repay their outstanding loan in 10,11, and 12 years.

Using the above formula, we get

[tex]\rm\,10-year \;installment\; = \;PMT(3\%/12, 10\times 12, 208555.87, 0, 0) = \$2,013.83\\\\11-year installment = PMT(3\%/12, 11 \times 12, 208555.87, 0, 0) = \$1,856.93\\\\12-year installment = PMT(3\%/12, 12 \times 12, 208555.87, 0, 0) = \$1,726.40[/tex]

Additional Monthly Payment

[tex]\rm\,10-year \$2,013.83 - \$1,440.25 = \$573.58\\\\11-year: \$1,856.93 - \$1,440.25 = \$416.68\\\\12-year: \$1,726.40 - \$1,440.25 = \$286.15[/tex]

Hence, We can go for 12-year model, as it is cost-effective for Dave and Jana.

To learn more about refinancing, refer:

https://brainly.com/question/22598793

Non-verbal communication influences the way a message is received and functions in at least five different ways. Read the following scenario, and identify the most appropriate form of non-verbal communication to use.
You are meeting with a new customer for the first time in person. This customer had a negative experience with one of your company’s competitors, and you want to communicate to the customer that you are honest and trustworthy.What form of non-verbal communication will serve you best?
A. Smiling
B.Standing far away
C. Sustained eye contact
Non-verbal communication sends powerful messages through body language and facial expressions. Our work space arrangement also sends nonverbal messages to others. In the following situation, consider what the intern is conveying non-verbally.
After preparing a project development agenda, the office manager prepares a conference room for the meeting. She places a circular table in the center of the room and surrounds it with comfortable chairs. What message is the office manager expressing non-verbally?
A. She wishes to promote open communication.
B. She wishes to discourage communication.
C. She wishes to set up a clear hierarchy.
Document appearance can have either positive or negative effects on how an audience receives a message.
In the following situation, consider what message is being conveyed non-verbally through document appearance.
Nathan is hiring a summer intern to assist him in launching a new marketing campaign. He opens a letter of introduction from one applicant and notices three misspellings in the first sentence. Additionally, Nathan notes that while the applicant seems to have the necessary experience, he has not formatted his letter of introduction in a professional manner. What message is the internship applicant expressing non-verbally?
A. He is very interested in the summer internship.
B. He is well qualified but too busy to be bothered with formatting.
C. He is not very professional and is not interested in the job.

Answers

Answer:

A. Smiling

A. She wishes to promote open communication.

C. He is not very professional and is not interested in the job.

Your answer

Explanation:

Non verbal communication is the transmission of information without the use of words.

Non verbal communication can be carried out through eye contact, facial expressions, physical appearance or settings, tone of voice and distance.

Smiling is an example of non verbal communication using facial expressions. It communicates friendliness and honesty.

By arranging the chairs in a certain manner, physical settings is the mode of non verbal communication used.

I hope my answer helps you

Swifty Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.
Instructions:
Set up a schedule of interest expense and discount amortization under the straight-line method.
Set up a schedule of interest expense and discount amortization under the effective-interest method. (Hint: The effective-interest rate must be computed.)

Answers

Answer:

Find attached amortization schedule for the interest expense and discount amortization under both methods.

Explanation:

Under straight line the discount amortization per year is total discount on bonds payable divided by 5 years.

Under effective method, I first of all computed the yield to maturity on the bind using rate formula in excel, the discount amortization each is the interest expense minus the coupon payment.

Which of the following is an expense of this period? Multiple Choice Costs of items paid for in this period but used up next period Repayment of debt from a loan in a prior period Cost of land purchased and paid for this period Costs of items used up this period but paid for next period

Answers

Answer: Costs of items used up this period but paid for next period

Explanation:

Period Expenses for the period are transactions that should be expensed because they were used in the current period.

Therefore if a period cost is not used in the period, it is not considered a period cost even if the company pays for it in the current period which also means that if a period cost for the period is not paid in the current period but in the next one, it is still a period cost for the current period.

From the above therefore, the period cost is the cost of items used up in this period but paid for in the next one.

The land purchased might look like the obvious choice but it is not because Assets are capitalised and not expensed.

Montclair Company earns an average contribution margin ratio of 40% on its sales. The local store manager estimates that he can increase monthly sales volume by $45,000 by spending an additional $7,000 per month for direct mail advertising. Compute the monthly increase in operating income if the manager's estimate about the increased sales volume is accurate.

Answers

Answer:

$11,000

Explanation:

The computation of the monthly increase in operating income is shown below:

= Sales volume × contribution margin ratio - additional spending done on the direct mail advertising

= $45,000 × 40% - $7,000

= $18,000 - $7,000

= $11,000

We simply applied the above formula so that the monthly increase in operating income could be determined.

Suppose that a small company that makes a standardized product is experiencing an increase in sales even though it has a small geographic footprint. Currently, the founder makes all of the strategic decisions but is beginning to feel overwhelmed. She has decided to pursue a cost-leadership strategy going forward. In order for the firm to achieve its goals, which of the following business-level structures should the firm adopt?

a. an ambidextrous functional structure
b. a centralized functional structurea flexible organic structure
c. a centralized multidivisional structure
d. a simple structure with the founder's imprint

Answers

Answer: b. a centralized functional structure

Explanation:

Cost Leadership refers to a situation where a company is better at cost management that other companies in the industry. If a company can produce at a lower cost, they can capture more market share and be more profitable.

When a company wants to engage in cost Leadership one of the best structures to adopt is the Centralised functional structure. This is when decisions are usually made at a top management level in a company that is divided by functions such as Information Technology, Sales, Marketing etc.

By making the structure centralised, the company can make Standardised products on a company wide basis which is very effective in cost saving as the company is able to plan better and spend less because they will be buying resources and producing in bulk. That advantage from Economies of Scale will keep their costs low.

Charlie the cat stole $20 from his cat mom. He's planning on spending the money he stole on catnip (Q1) and dental treats (Q2). Dental treats are more expensive at $3 per treat, but catnip is pretty cheap at $0.50 per pouch. What will Charlie's budget constraint look like?

Answers

Answer:

$ 20= Q1 (0.5 ) + Q3( 3)

Explanation:

Total Amount = $ 20

Dental treats Q2= $ 3

Catnip Q1= $ 0.50

Maximum no of Dental Treats he can get is = $ 20 /$3= 6.66

If he gets maximum dental treats i.e 6 , $18 will be spent (3*6)

He will be left with = $ 20- $ 18= $ 2

The maximum no of catnip he can get after buying 6 dental treats from $ 2= $ 2/$0.5= 4

Let Q1 denote the catnip and Q3 denote the dental treats then the equation would be like

$ 20= Q1 (0.5 ) + Q3( 3)

So putting the values for q1=0,1,2,3,4,5,6,7,8,9,10

for values 0-4  Q3 will be $ 18

for values 4-6 Q3 will be $ 15

for values 6-8  Q3 will be $ 12

From values Zero on wards the budget constraint will be a slope but after value 4 the change will be after every two points.

The slope will look like the one given in the diagram.

Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash disbursements (excluding cash disbursements for loan principal and interest payments) for the first three months of next year. Cash Receipts Cash DisbursementsJanuary $525,000 $475,000 February 400,000 350,000 March 450,000 525,000
According to a credit agreement with the company’s bank, Kayak promises to have a minimum cash balance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at an annual interest rate of 12%, paid on the last day of each month. The interest is computed. based on the beginning balance of the loan for the month. The company repays loan principal with available cash on the last day of each month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for each of the first three months of next year

Answers

Answer:

                                           Kayak Co.

                                         Cash Budget

                                                January        February         March

Cash inflows:                         $525,000      $400,000     $450,000                  

Cash outflows:                      ($475,000)    ($350,000)    ($525,000)

Monthly cash flow:                  $50,000        $50,000      ($75,000)          

Monthly interests:                       ($600)             ($106)                 $0

Initial cash balance:                $30,000         $30,000        $69,294

Ending cash balance:             $79,400          $79,894        ($5,706)

Required bank loan:                        $0                   $0         $35,706

Payment of bank loan:          ($49,400)        ($10,600)                $0

Total                                        $30,000         $69,294       $30,000          

Explanation:

                               Cash Receipts          Cash Disbursements

January                      $525,000               $475,000

February                    $400,000               $350,000

March                         $450,000               $525,000

A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.

Acitelli Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.
Estimated manufacturing overhead $ 351,960
Estimated machine-hours 8,400
Actual manufacturing overhead $ 352,960
Actual machine-hours 8,460
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
The applied manufacturing overhead for the year is closest to:_________.
A. $357,012
B. $354,474
C. $355,489
D. $352,951

Answers

Answer:

B. $354,474

Explanation:

The Overheads that are initially included in Work In Process before determination of Actual Overheads are called Applied Overheads.

Applied Overheads = Predetermined overhead rate × Actual level of Activity.

Thus said we need to first determine the Predetermined overhead rate :

Predetermined overhead rate = Budgeted Overheads / Budgeted Activity

                                                  = $ 351,960 /  8,400 machine hours

                                                  = $41.90 per machine hour

Therefore,

Applied Overheads = $41.90 × 8,460 machine hours

                                 = $354,474

Conclusion :

The applied manufacturing overhead for the year is closest to: $354,474

Caroline runs her own business selling horse related products (saddles, boots, bridles, etc.). She is considering investing $70,000 into an operating systems for security and data management for online ordering. After 8 years the equipment has a salvage value of $18,000. In the third year a major update is expected to cost $5,000. The operating costs per year are $2,000 for license and IT contracts.
a) Draw the cash flow diagram.
b) What is the present value the expected costs of the new security and data management system (including salvage value) using a 5% interest rate?

Answers

Answer:

The present value the expected costs of the new security and data management system is $-75,062.5

Explanation:

Kindly check attached picture for explanation

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