when ups invested in a foreign tech startup , ally commerce inc ., to give ups greater access to online sales,it was exemplifying

Answers

Answer 1

Answer:

Direct Investment is the correct answer to the given question .

Explanation:

The Direct investment is also known as direct foreign investment. In the Direct investment People invested the money into the company that operates in the some other country.

The main objective of direct investment to get the powerful presence in the business processes also the lengthy-term existence in the different nation.As the UPS participated in the Ally Commerce Inc i.e a global tech startup, to offer it better exposure to online purchasing it is example of direct investment .

Related Questions

The City Transit Authority (CTA) is trying to decide between railcars manufactured by French Corp and Japan Rail Car. The French Corp cars cost more to buy initially, but they are expected to last for 10 years. The Japan Rail Car cars are cheaper initially, but they will wear out in 6 years. The cash flows related to each of the choices are presented below. If the CTA’s cost of capital is 8 percent, which type of car should the CTA buy? Support your answer.

Answers

Answer: The Japan Rail Car should be purchased

Explanation:

To find the answer we can use the Net Present Cost. By calculating the total net present value of the total costs involved in both projects, the cheaper alternative can then be chosen.

The cash-flows for both projects are constant so an annuity can be used to calculate them.

Please refer to the annuity table attached.

The French Corp Car

It will cost $275,000 originally and then $10,000 every year after that. The cost of capital is 8%. The goal is to find the present value of all the cost. That can be done by,

= (275,000) + PV of Annuity of $10,000 for 10 year and cost of capital 8% p.a. (look at the table for the intersection of 10 years and 8%)

= 275,000 + 10,000 (6.710)

= 275,000 + 67,100

= $342,100

The Japan Rail Car

It will cost $195,000 originally and then $15,000 every year after that. The cost of capital is 8%. Using the same method,

= (195,000) + PV of Annuity of $15,000 for 6 year and cost of capital 8% p.a. (look at the table for the intersection of 6 years and 8%)

= 195,000 + 15,000(4.623)

=195,000 + 69,345

= $264,345

The Japan Rail Car costs less in terms of total cost over its period of operation and so should be the one purchased by the CTA.

A perfectly elastic demand function A. shows that a consumer is willing to pay any amount for the product. B. has a marginal revenue that is always decreasing. C. is characteristic of an individual firm operating in a perfectly competitive market. D. shows that the individual firm can increase sales by lowering the price of output.

Answers

Answer:

C. is characteristic of an individual firm operating in a perfectly competitive market.

Explanation:

Demand is perfectly elastic if the coefficient of elasticity is infinite. It means thay consumers would only buy at one price. Once that price changes, demand falls to zero.

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply.

If a seller decides to increase the price of his good in a perfect competition, demand falls to zero and reducing price woild lead to losses.

I hope my answer helps you

Solve accepted a 60-day, 9 percent note from Pete Houghton in settlement of his past-due account for $6,000. On April 9, Westwood Company discounted the note at the First National Bank. The bank charged a discount rate of 12 percent. What is the amount of the proceeds

Answers

Missing information:

The note was accepted on March 10

Answer:

$6,029.10

Explanation:

in order to answer the question, I assumed a 360 day year, so 60 days = 2/12 of a year

the note's value on maturity date = principal + accrued interest = $6,000 + ($6,000 x 9% x 2/12) = $6,000 + $90 = $6,090

bank charges = note's value on maturity date x discount rate x 30 days = $6,090 x 12% x 1/12 = $60.90

net proceeds = $6,090 - $60.90 = $6,029.10

What is fixed and variable cost?

Answers

Answer:

Okay, so fixed costs are costs that are consistant in their price (buildings, rent, machinery, etc.). Variable costs are costs that change based on production (wages, materials, utilities, etc.).

Hope this helps :)

Explanation:

Explained above.

Pennewell Publishing Inc. (PP) is a zero growth company. It currently has zero debt and its earnings before interest and taxes (EBIT) are $80,000. PP's current cost of equity is 10%, and its tax rate is 40%. The firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. Refer to the data for Pennewell Publishing Inc. (PP). Assume that PP is considering changing from its original capital structure to a new capital structure with 35% debt and 65% equity. This results in a weighted average cost of capital equal to 9.4% and a new value of operations of $510,638. Assume PP raises $178,723 in new debt and purchases T-bills to hold until it makes the stock repurchase. PP then sells the T-bills and uses the proceeds to repurchase stock. How many shares remain after the repurchase, and what is the stock price per share immediately after the repurchase?

Answers

Answer:

Price per share after repurchase = $51.064

Shares remaining after repurchase = 6500

Explanation:

Given the following :

Value of operations = $510,638

Value of T-bills = value of debt = $178,723

Therefore, value of equity = $510,638

Number of common shares = 10,000

Price per share = Value of equity / Number of shares

Price per share = $510,638 / 10,000 = $51.064

Price per share prior to repurchase is the same as price per share after repurchase.

However, number of shares repurchased equals;

$178,723 / $51.064 = 3499.99 = 3500 shares

Number of shares left after repurchase :

Totals shares - shares repurchased

10,000 - 3500 = 6,500

Clemens Cars’s job cost sheet for Job A40 shows that the cost to add security features to a car was $23,500. The car was delivered to the customer, who paid $28,200 in cash for the added features. What journal entries should Clemens record for the completion and delivery of Job A40?

Answers

Answer:

Finished Goods

Dr Working in progress $23,500

Cr Transfer from Work in progress to Finished goods $23,500

Cost of goods sold

Dr Finished Goods $23,500

Cr Transfer from Finished Goods to Cost of goods sold $23,500

CASH

Dr Sales $ 28,200

Cr Sale of car after job was completed $28,200

Explanation:

Clemens Cars’s Journal entries

Finished Goods

Dr Working in progress $23,500

Cr Transfer from Work in progress to Finished goods $23,500

Cost of goods sold

Dr Finished Goods $23,500

Cr Transfer from Finished Goods to Cost of goods sold $23,500

CASH

Dr Sales $ 28,200

Cr Sale of car after job was completed $28,200

ak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Work in Process Balance on 3/1 Job 33 $ 7,500 Job 34 6,000 $ 13,500 Source documents revealed the following during March: Materials Requisitions Forms Labor Time Tickets Status of Job at Month-End Job 33 $ 3,500 $ 6,500 Completed and sold Job 34 6,000 7,800 Completed, but not sold Job 35 4,200 3,250 In process Indirect 1,300 2,140 $ 15,000 $ 19,690 The company applies overhead to products at a rate of 150 percent of direct labor cost. Required: 1. Compute the cost of Jobs 33, 34, and 35 at the end of the month. 2. Calculate the balance in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts at month-end.

Answers

Answer:

Job 33 $ 27250

Job 34 $ 31500

Job 35 $ 12325

Cost of Goods Sold Job 33 $ 27250

Finished Goods Inventory Job 34 $ 31500

Work in Process Inventory Job 35 $ 12325

Explanation:

Work in Process Balance on 3/1

Job 33 $ 7,500

Job 34 6,000

Total $ 13,500

Job 33

Direct Materials $3500

Direct Labor 6500

Overheads (150%) 9750

Add Opening WIP 7500

Total Cost $ 27250

We add the Direct Material Direct Labor and Mfg overheads with the opening balance of WIP to get the total cost of given jobs.

Job 34

Direct Materials $6000

Direct Labor 7800

Overheads (150%) 11700

Add Opening WIP 6000

Total Cost $ 31500

Job 35

Direct Materials $4200

Direct Labor 3250

Overheads (150%) 4875

Add Opening WIP ------

Total Cost $ 12325

Cost of Goods Sold Job 33 (given) $ 27250

Finished Goods Inventory Job 34 (given) $ 31500

Work in Process Inventory Job 35 (given)$ 12325

It is given in the question that Job 34 is transferred to Finished Goods , Job 35 is still in process and Job 33 is cost of goods sold.

Jeanie acquires an apartment building in 2008 for $280,000 and sells it for $480,000 in 2019. At the time of sale there is $60,000 of accumulated straight-line depreciation on the apartment building. Assuming Jeanie is in the highest tax bracket for ordinary income and the Medicare tax on net investment income applies, how much of her gain is taxed at 28.8 percent?

Answers

Answer:

$60,000

Explanation:

According to section 1250 of the Internal Revenue Service, the depreciation previously allowed as a deduction would now be taxed in the case of ordinary income at the highest tax level.

And, For this, the asset should be depreciated real property.

In the question, there is depreciation charged for apartment building so the same is eligible

The eligibility is allowed up to $60,000 and the same is to be considered

Paul Sabin organized Sabin Electronics 10 years ago to produceand sell several electronic devices on which he had securedpatents. Although the company has been fairly profitable, it is nowexperiencing a severe cash shortage. For this reason, it isrequesting a $620,000 long-term loan from Gulfport State Bank,$160,000 of which will be used to bolster the Cash account and$460,000 of which will be used to modernize equipment. The company's financial statements for the two most recent years follow:
Sabin Electronics
Comparative Balance Sheet
This Year Last Year
Assets
Current assets:
Cash $ 118,000 $ 270,000
Marketable securities 0 30,000
Accounts receivable, net 633,000 420,000
Inventory 1,065,000 715,000
Prepaidexpenses 30,000 34,000
Total currentassets 1,846,000 1,469,000
Plant and equipment,net 1,969,200 1,490,000
Total assets $ 3,815,200 $ 2,959,000
Liabilitiesand Stockholders Equity
Liabilities:
Currentliabilities $ 820,000 $ 420,000
Bondspayable, 12% 850,000 850,000
Totalliabilities 1,670,000 1,270,000
Stockholders'equity:
Commonstock, $15 par 630,000 630,000
Retained earnings 1,515,200 1,059,000
Total stockholders equity 2,145,200 1,689,000
Total liabilitiesand equity $ 3,815,200 $ 2,959,000
Sabin Electronics
Comparative Income Statement and Reconciliation
This Year Last Year
Sales $ 5,600,000 $ 4,710,000
Cost of goodssold 3,995,000 3,570,000
Gross margin 1,605,000 1,140,000
Selling andadministrative expenses 677,000 572,000
Net operatingincome 928,000 568,000
Interestexpense 102,000 102,000
Net income beforetaxes 826,000 466,000
Income taxes(30%) 247,800 139,800
Net income 578,200 326,200
Commondividends 122,000 101,000
Net incomeretained 456,200 225,200
Beginning retainedearnings 1,059,000 833,800
Ending retainedearnings $ 1,515,200 $ 1,059,000
During the past year, the companyintroduced several new product lines and raised the selling priceson a number of old product lines in order to improve its profitmargin. The company also hired a new sales manager, who hasexpanded sales into several new territories. Sales terms are 2/10,n/30. All sales are on account.
e. The average sale period. (Theinventory at the beginning of last year totaled$620,000.)(Round your intermediate calculations and finalanswers to 1 decimal place. Use 365 days in a year.)
f. The operating cycle.(Round your intermediate calculations and final answer to 1decimal place.)
g. The total asset turnover. (The total assets at the beginning oflast year were $2,919,000.) (Round your answers to 2decimal places.)
h. The debt-to-equity ratio.(Round your answers to 3 decimal places.)
i. The times interest earned ratio.(Round your answers to 1 decimal place.)
j. The equity multiplier. (Thetotal stockholdersâ equity at the beginning of last year totaled$1,679,000.) (Round your answers to 2 decimalplaces.)

Answers

Answer:

e. The average sales period = (average balance inventory / COGS) x 365 days = {[($1,065,000 + $715,000)/2] / $3,995,000} x 365 days = 81.3 days

f. The operating cycle = average sales period + (average accounts receivable / total credit sales) x 365 days = 81.3 + {[($633,000 + $420,000)/2] / $5,600,000} x 365 days = 81.3 + 34.3 = 115.6 days

g. The total asset turnover = total sales / average assets = $5,600,000 / [($3,815,200 + $2,959,000)/2 = 1.66 times

h. The debt-to-equity ratio = total liabilities / total equity = $1,670,000 / $2,145,200 = 0.778 or 77.8%

i. The times interest earned ratio = EBIT / interest expense = $928,000 / $102,000 = 9.1

j. The equity multiplier = total assets / total equity = $3,815,200 / $2,145,200 = 1.78

You are upgrading to better production equipment for your firm's only product. The new equipment will allow you to make more of your product in the same amount of time. Thus, you forecast that total sales will increase next year by 16 % over the current amount of 102 comma 000 units. If your sales price is $ 19 per unit, what are the incremental revenues next year from the upgrade?

Answers

Answer:

$310,080

Explanation:

Incremental revenue refers to the additional revenue generated by a certain project or activity. In this case, your sales should increase by 16% from 102,000 units to 118,320 units. Total revenue will increase from $1,938,000 (= 102,000 x $19) to $2,248,080 (= 118,320 x $19).

The incremental revenue = $2,248,080 - $1,938,000 = $310,080

Mr. Isaac is lending Gh₵20000 to Mr. Hayford, to be repaid over five years. Mr. Isaac would like to effect a policy on Mr. Hayford’s life to cover the loan should Mr. Hayford die. Mr. Hayford would like to insure Mr. Isaac’s life just in case he dies and the beneficiaries of his will insist that the loan be repaid early.

Answers

Question:

Mr. Isaac is lending Gh₵20000 to Mr Hayford, to be repaid over five years. Mr Isaac would like to effect a policy on Mr Hayford’s life to cover the loan should Mr Hayford die. Mr Hayford would like to insure Mr Isaac’s life just in case he dies and the beneficiaries of his will insist that the loan be repaid early.

(a) What is the extent of insurable interest in each case?

(b) Consider any necessary action if the loan was later repaid earlier than anticipated what happens to the policy?

Answer:

To answer the question (a), one must first understand the concept of Insurable Interest.

A policyholder is said to have an insurable interest in a subject matter whenever the subject matter of a contract provides some financial gain to them and would lead to a financial loss if damaged, destroyed, stolen or lost.

For example, if I purchase a car for my use for $10,000, theft of or damage to that car will translate to financial loss to me. Therefore, I have an insurance interest in the car. This qualified me to Insure the car against loss arising from any form of insurable damage, or theft.

In question (a) there are two cases.

Case I - Mr Isaac would like to effect a policy on Mr Hayford’s life to cover the loan should Mr Hayford die.

Mr Isaac, in this case, has full insurable interest on Mr Hayfords life. If Mr Hayford dies, Mr Isaac will be put in a financial loss to the tune of Gh₵20000.

Case II - Mr Hayford would like to insure Mr Isaac’s life just in case he dies and the beneficiaries of his will insist that the loan be repaid early.

Mr Hayford does an insurable interest on Mr Isaac's life. This insurable interest arises due to the possibility (as given in the question) that Isaacs family have the power to request for the loan earlier than it ought to have been paid.

The insurable interest arises because paying back the loan earlier than anticipated, may put Mr Hayford in financial distress and may lead to financial and economic loss. If the loan is meant for the running of his business, the business may fold up, and he may forfeit all the assets of the business.

In a real-life scenario, this can all be prevented by ensuring that the terms of the loan are documented in a contract which must be ratified by both parties. In this contract, clauses preventing the lender from cutting short the tenure of the loan can be inserted. This is less expensive and easier to administer.

(b) In each of the cases above, if the loan is paid back earlier than anticipated:

i. Under duress from the family: The provision of the policy protecting the interest of Mr. Hayford kicks in and makes good the loss to mitigate it and terminates afterwards.

ii. By volition by Mr Hayford: The policy terminates immediately as the insurable interest he has on Mr Isaac's life becomes extinct.

Cheers!

Problem 15-10 The term structure for zero-coupon bonds is currently: Maturity (Years) YTM (%) 1 4.1 % 2 5.1 3 6.1 Next year at this time, you expect it to be: Maturity (Years) YTM (%) 1 5.1 % 2 6.1 3 7.1 a. What do you expect the rate of return to be over the coming year on a 3-year zero-coupon bond? (Round your answer to 1 decimal place.) b-1. Under the expectations theory, what yields to maturity does the market expect to observe on 1- and 2-year zeros at the end of the year? (Round your answers to 2 decimal places.) b-2. Is the market's expectation of the return on the 3-year bond greater or less than yours? Greater Less rev: 09_14_2018_QC_CS-134332

Answers

Answer:

Explanation:

a.) What do you expect the rate of return to be over the coming year on a 3-year zero-coupon bond? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Expect the rate of return to be over the coming year on a 3-year zero-coupon bond = 6.1%

b) Under the expectations theory, what yields to maturity does the market expect to observe on 1- and 2-year zeros at the end of the year?(Round your answers to 2 decimal places. Omit the "%" sign in your response

Yields to maturity does the market expect to observe on 1-year at the end of the year = (1+5.1%)^2/(1+4.1%) - 1 = 6.11%

Yields to maturity does the market expect to observe on 1-year at the end of the year = 6.11%

Yields to maturity does the market expect to observe on 2-year at the end of the year = ((1+6.1%)^3/(1+4.1%))^(1/2) - 1

= 7.11%

Yields to maturity does the market expect to observe on 2-year at the end of the year = 7.11%

2b) Is the market's expectation of the return on the 3-year bond greater or less than yours?

Greater

You have $13,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 13 percent and Stock Y with an expected return of 8 percent. Assume your goal is to create a portfolio with an expected return of 11.45 percent. How much money will you invest in Stock X and Stock Y

Answers

Answer:

You should invest $8,970 in stock X and $4,030 in stock Y.

Explanation:

These can be estimated as follows:

PER = (ERX * wX) + (ERY * wY) ....................... (1)

Where,

PER = Portfolio expected return = 11.45%, or 0.1145

ERX = Expected return of X = 13%, or 0.13

ERY = Expected retun of Y = 8%, or 0.08

wX = Weight of X = ?

wY = Weight of Y = 1 - wX = ?

Substituting the values into equation (1), we have:

0.1145 = [0.13 * wX] + [0.08 * (1 - wX)]

0.1145 = 0.13wX + [0.08 - 0.08wX]

0.1145 = 0.13wX + 0.08 - 0.08wX

0.1145 - 0.08 = 0.13wX - 0.08wX

0.0345 = 0.05wX

wX = 0.0345 / 0.05

wX = 0.69

Since wY = 1 - wX

Therefore,

wY = 1 - 0.69

wY = 0.31

Total amount to invest = $13,000

Investment in stock X = Amount to invest * 0.69 = $13,000 * 0.69 = $8,970

Investment in stock Y = Amount to invest * 0.31 = $13,000 * 0.31 = $4.030

Therefore, you should invest $8,970 in stock X and $4,030 in stock Y.

Gena Manufacturing Company has a fixed cost of $259,000 for the production of tubes. Estimated sales are 153,400 units. A before tax profit of $126,034 is desired by the controller. If the tubes sell for $22 each, what unit contribution margin is required to attain the profit target?

Answers

Answer:

$2.51

Explanation:

Gena Manufacturing Company calculation for contribution margin unit

Using this formula

Fixed cost + Tax profit/Estimated sales units

Let plug in the formula

Where:

Fixed cost =$259,000

Tax profit=$126,034

Estimated sales units=153,400

Hence:

(259,000 + 126,034) / 153,400

=$385,034/153,400

= $2.51

Therefore the contribution margin that is required to attain the profit target will be $2.51

On June 30, 2011, Cole Inc., exchanged 3,000 shares of Stone Corp. $30 par value common stock for a patent owned by Gore Co. The Stone stock was acquired in 2009 at a cost of $80,000. At the exchange date, Stone common stock had a fair value of $45 per share, and the patent had a net carrying value of $160,000 on Gore's books. Cole should record the patent at:

Answers

Answer:

$135000

Explanation:

Cole should record the patent at $135000. The intangible asset is recorded at the price at which it was purchased. Net carrying value of $160000 in the books of seller is not useful.

At the time of purchase of intangible asset, the fair value of stone stock exchanged was $45.

So the patent cost is =

3000 shares × $45 per share = $135000.

Cole should record the patent at this value.

Concord Corporation had a 1/1/20 balance in the Allowance for Doubtful Accounts of $36500. During 2020, it wrote off $30500 of accounts and collected $8600 on accounts previously written off. The balance in Accounts Receivable was $780000 at 1/1 and $940000 at 12/31. At 12/31/20, Concord estimates that 5% of accounts receivable will prove to be uncollectible. What should Concord report as its Allowance for Doubtful Accounts at 12/31/20

Answers

Answer:

$32,400

Explanation:

According to the situation for computation of Allowance for Doubtful Accounts at 12/31/20 first we need to find out the actual balance which is shown below:-

Actual balance = Beginning Balance of Allowance + Amount reinstated - Amount written off + Uncollectible account expenses

= $36,500 + $8,600 - $30,500

= $14,600

Ending balance of Allowance = Balance of accounts receivables × Accounts receivable percentage at 12/31 - Actual balance

= $940,000 × 5% - $14,600

= $47,000 - $14,600

= $32,400

Therefore for reaching the ending balance of allowance we simply applied the above formula.

The W.C. Pruett Corp. has $200,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 11%. In addition, it has $700,000 of common stock on its balance sheet. It finances with only debt and common equity, so it has no preferred stock. Its annual sales are $1 million, its average tax rate is 35%, and its profit margin is 8%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two decimal places.

Answers

Answer:

a. Times Interest Earned (TIE) Ratio = 6.59 times

b. Return on invested capital (ROIC) = 10.48%

Explanation:

To estimate these, we have to first calculate the following:

Interest expenses = $200,000 * 11% = $22,000

Net income = Profit margin * Annual sales = 8% * $1,000,000 = $80,000

Income before tax = Net income / (1 - Average tax rate) = $80,000 / (1 - 35%) = 123,076.92

Tax = Income before tax * Tax rate = $123,076.92 * 35% = $43,076.92

Earning before interest and tax (EBIT) = Net income + Interest expenses + Tax = $80,000 + $22,000 + $43,076.92 = $145,076.92

Net operating profit after tax (NOPAT) = EBIT * (1 - Average tax rate) = $145,076.92 * (1 - 35%) = $94,300

Invested capital = Common stock + Interest-bearing debt outstanding = $200,000 + $700,000 = $900,000

a. What are its TIE ratio?

Times Interest Earned (TIE) Ratio = EBIT / Interest expenses = $145,076.92 / $22,000 = 6.59 times

This indicates that the income of the W.C. Pruett Corp. is 6.59 times greater than its annual interest expense.

b. What are its return on invested capital (ROIC)?

ROIC = NOPAT / Invested capital = $94,300 / $900,000 = 0.1048, or 10.48%

Assume the Macro Islands can produce 25 fishing boats or 150 jars of guava jelly in one hour. The Micro Islands can produce 30 fishing boats or 300 jars of guava jelly in the same time period. This data tells an economist that:________. a. the Macro Islands have an absolute advantage in producing fishing boats and the Micro Islands have an absolute advantage in producing guava jelly. b. the Micro Islands have an absolute advantage in producing fishing boats and the Macro Islands have an absolute advantage in producing guava jelly. c. the Macro Islands have a comparative advantage in producing fishing boats and the Micro Islands have a comparative advantage in producing guava jelly. d. the Micro Islands have a comparative in producing fishing boats and the Macro Islands have a comparative advantage in producing guava jelly. the Micro Islands have a comparative and absolute advantage in producing fishing boats.

Answers

Answer:

The correct answer is the option C: the Macro Islands have a comparative advantage in producing fishing boats and the Micro Islands have a comparative advantage in producing guava jelly.

Explanation:

To begin with the term of ''comparative advantage'' is refer to the quality of one country in comparison with another to produce in a better way, a more eficient way, a good. Therefore that when a country has a comparative advantage over another country it means that the first country can produce more of a good with less resources that the second country.

That is why, that the Macro Islands have a comparative advantage in producing fishing boats over the Micro islands due to the fact that there is a very little difference with the other country meanwhile the Micro Islands have a comparative advatange in the production of guava jelly due to the amount of goods that it can produce in the same amount of time with the great amount difference in comparison with the Macro Islands. Therefore that one country chooses to produce the good in which it is better in comparison with the other.

You recently received a letter from Cut-to-the-Chase National Bank that offers you a new credit card that has no annual fee. It states that the annual percentage rate (APR) is 16 percent on outstanding balances. What is the effective annual interest rate?

Answers

Answer:

Effect Annual rate of return =17.22%

Explanation:

The Effective annual rate of return is the equivalent rate earned where compounding is done frequently at period or interval less than a year.

EAR = (1+r/m)^n× m - 1

EAR - Equivalent annual rate of return, r- annul rate of return, n-number of years

r= 16/12 =1.333%, n= 1 m= 12 (note there are 12 months in a year)

EAR = (1+0.16/12)^(1×12) - 1

EAR = 1.0133^12 - 1 = 0.1722

EAR 0.1722 × 100 = 17.22%

Effect Annual rate of return =17.22%

Read the scenario. Yuri has $100 to spend at the store. He spots a pair of designer jeans with a $98 price tag on them but knows that he can buy three pairs of $30 jeans for about the same price. He still decides to buy the $98 pair. What is most likely Yuri’s motivation behind buying the pricier pair? emotional spending confused sense of needs and wants greedy spending conspicuous consumption

Answers

Answer:

Explanation:

Conspicuous consumption

Conspicuous consumption is the spending of money on and the acquiring of luxury goods and services to publicly display economic power of the income or of the accumulated wealth of the buyer.

Yuri’s motivation behind buying the pricier pair is conspicuous consumption.

What is conspicuous consumption?

Conspicuous consumption can be defined as the way in which a person or individual decide to buy luxury items or costly items so as to display or showcase their wealth.

Based on the given scenario Yuri is buying the costly designers jeans instead of the cheaper pair as to showcase his wealth.

Inconclusion Yuri’s motivation behind buying the pricier pair is conspicuous consumption.

Learn more about conspicuous consumption here:https://brainly.com/question/4384035

Statement of Cash Flows A summary of cash flows for Paradise Travel Service for the year ended May 31, 2018, follows: Cash receipts: Cash received from customers $880,000 Cash received from issuing common stock 40,000 Cash payments: Cash paid for operating expenses 758,000 Cash paid for land 150,000 Cash paid as dividends 10,000 The cash balance as of June 1, 2017, was $50,000. Prepare a statement of cash flows for Paradise Travel Service for the year ended May 31, 2018. Use the minus sign to indicate cash outflows, cash payments and decreases in cash. Paradise Travel Service Statement of Cash Flows For the Year Ended May 31, 2018 Cash flows from operating activities: Cash received from customers $ 880,000 Cash payments for operating expenses 758,000 $ Cash flows used for investing activities: Cash flows from financing activities: $ $ Cash as of June 1, 2017 Cash as of May 31, 2018 $

Answers

Answer:

Paradise Travel Service

Cash Flow Statement

For the Year Ended May 31, 2018

Cash flows from operating activities:

Cash received from customers $880,000

Cash paid for operating expenses -$758,000

Net cash provided by operating activities $122,000

Cash flows from investing activities:

Cash paid for land -$150,000

Net cash provided by investing activities -$150,000

Cash flows from financing activities:

Cash received from issuing common stock $40,000

Cash paid as dividends -$10,000

Net cash provided by financing activities $30,000

Net increase in cash $2,000

Cash balance June 1, 2017 $50,000

Cash balance May 31, 2017 $52,000

The following data relate to the accounts of LIK Cooperation. Prepare the necessary adjusting journal entries indicated by each item for the year ended December 31, 2018.
A. A four-year insurance policy was purchased on April 1, 2018. The $96,000 insurance premium was fulaid on that date and a debit to prepaid insurance was recorded.
B. Unpaid salaries at year-end amount to $200,550.
C. Pruitt Corp. rents out some of its office space to Alliance Corp at $2,400 per month. On November 1, 2018, Pruitt Corp. recorded a credit to Rent Revenue for receipt of a rent payment of $7,200 from Alliance Corp. to cover rent from November 1, 2018 to January 31, 2019.
D. Pruitt Corporation holds bonds of another corporation. The bonds were purchased by Pruitt on June 30, 2018. Interest in the amount of $1,100 is received each year every June 30th.
1. Prepare any necessary adjusting entries on December 31, 2018.
2. Prepare the journal entry to record the receipt of interest on June 30, 2019.

Answers

Answer:

See the entries for (1) and (2) below.

Explanation:

1. Prepare any necessary adjusting entries on December 31, 2018.

SN Details Dr ($) Cr ($)

A. Insurance expenses (W. 1) 18,000

Prepaid Insurance 18,000

(To record insurance expenses for 2018.)

B. Salaries expenses 200,550

Accrued expenses - Salaries 200,550

(To record unpaid salaries).

C. Rent revenue 2,400

Advance revenue - Rent 2,400

(To record liability for rent received for Jan. 31, 2019)

D. Accrued interest income (W.2) 550

Interest income 550

(To record accrued interest income for 2018).

2. Prepare the journal entry to record the receipt of interest on June 30, 2019.

SN Details Dr ($) Cr ($)

A. Cash 1,100

Interest income 550

Accrued interest income (W.2) 550

(To record the receipt of interest income.)

Workings:

W.1. Insurance expenses for 2018 (9 months: April 1 - December 31 = $96,000 * [9 months /(4 years * 12 months) = $18,000

W.1 Accrued interest revenue (July 1 to December 31) = $1,100 * (6 months / 12 months) = $550

A well diversified portfolio needs about 3 to 5 stocks from different categories.

True

False

Answers

Answer:

This is false.

Explanation:

Diversification is An investment strategy that includes a mixture of a wide variety of investments from different categories within a portfolio.

A well diversified portfolio does not need 3 to 5 stocks from different categories instead A well-diversified portfolio needs about 20-25 stocks from various categories.

Elegant Limited sells restored classic cars. Most of its customers are private buyers who buy cars for
themselves. However, some of them are investors who buy multiple cars and hold them for resale. All
sales of Elegant Limited are for cash.
Depict the association and cardinality for the sales of cars at Elegant Limited based on REA mode

Answers

Answer:

Elegant Limited

a) Association for the sales of cars based on the REA model:

The association indicates the relationships that exist between economic agents in the sales of cars. The relationships are between the seller (Elegant Limited) and the buyers or customers (private buyers and investors). The association based on the REA model is that each economic agent exchanges some economic resources during an economic event. Elegant Limited will give cars to customers in exchange for cash or initially and in some cases, a promise to pay cash later. This is an economic event. When the customer pays, another economic event takes place, and resources are also exchanged.

b) Cardinality of the sales of cars: The cardinality defines the elements involved in the sales of cars based on the REA model. The elements are the economic resources (cars and cash), the economic events or business transactions that take place (sales of cars and payment of cash), and the economic agents (Elegant Limited and customers) who make the events and the exchange of resources to happen.

Explanation:

The REA model is a framework for defining business processes. It was originally proposed in 1982 by William E. McCarthy as a generalized accounting model, and contained the concepts of resources, events, and agents. It proposed to replace accounting objects like assets and liabilities with real-life objects, including:

1) goods, services or money, or resources

2) business transactions or agreements that affect resources, events

3) people or other human agencies (other companies, etc.), agents.

All of the following are techniques being used to make data centers more "green" except:________.
a) use of hydropower.
b) air-cooling.
c) use of wind power.
d) use of backup generators.
e) virtualization.

Answers

Answer:

d) use of backup generators.

Explanation:

Going green is a term used for practices that protect the environment by reducing, reusing and recycling resources. It involves engaging in ecologically friendly decisions and lifestyles with a view of preserving natural resources for future generations.

The use of backup generator causes production of green house gases like carbon dioxide. Green house gases erode the ozone layer and increases global warming.

The other options like use of hydropower, air cooling, use of wind power, and virtualisation do not have adverse effect on the environment.

Copper Corporation, a calendar year C corporation, owns stock in Bronze Corporation and has net operating income of $900,000 for the current year. Bronze Corporation pays Copper a dividend of $150,000. What amount of dividends received deduction may Copper claim if it owns 85% of Bronze stock (and the two corporations are members of the same affiliated group)? (Assume Copper's dividends received deduction is not limited by its taxable income.)

Answers

Answer:

$150,000

Explanation:

Copper Corporation

The amount of dividends received deduction will tend to depends upon the ownership percentage by the corporate shareholder.

Therefore in a situation where Copper Corporation is said to owns only 85% of what Bronze Corporation had, Copper Corporation definitely qualify for a percentage of 100 deduction or a total amount of $150,000.if we have to based on the above information given because Bronze Corporation pays Copper Corporation a dividend of $150,000.

The December 31, 2018, balance sheet of Whelan, Inc., showed $154,000 in the common stock account and $2,790,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed $164,000 and $3,090,000 in the same two accounts, respectively. The company paid out $159,000 in cash dividends during 2019 14.28 points What was the cash flow to stockholders for the year? (A negative answer should be indicated by a minus sign.

Answers

Answer:

Whelan, Inc.

The cash flow to stockholders for the year is $159,000, representing the cash dividends paid during 2019.

Explanation:

Cash flow to stockholders is the amount of cash that a company pays out to its shareholders, usually in the form of cash dividends. Mainly, cash flows to stockholders in two major ways: dividends and stock price increases when shares are sold. Dividends are cash flows to stockholders from the company. These are usually determined by the board of directors. Stock price increases are cash flows to stockholders from the stock exchange market. They are determined by the company's performance and the sentiments of the investors in an open market with reference to the company's financial performance and position.

Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:

1. Andrea invested $13,500 cash in the business.
2. Andrea contributed $20,000 of photography equipment to the business.
3. The company paid $2,100 cash for an insurance policy covering the next 24 months.
4. The company received $5,700 cash for services provided during January.
5. The company purchased $6,200 of office equipment on credit.
6. The company provided $2,750 of services to customers on account.
7. The company paid cash of $1,500 for monthly rent.
8. The company paid $3,100 on the office equipment purchased in transaction #5 above.
9. Paid $275 cash for January utilities.

Based on this information, the balance in the A. Apple, Capital account reported on the Statement of Owner's Equity at the end of the month would be:

A. $31,400.
B. $39,200.
C. $31,150.
D. $40,175.
E. $30,875.

Answers

Answer: D. $40,175

Explanation:

The balance in the Capital account reported on the Statement of Owner's Equity will include the Capital contributions of Andrea Apple to the business as well as the Net income from operations also known as Retained Earnings.

The Net Income for the month will be revenue less expenses.

Revenue

$5,700 cash and $2,750 on account for services provided in January.

Revenue is therefore,

= 5,700 + 2,750

= $8,450

Expenses

Expenses include the rent paid of $1,500 and the $275 paid for January Utilities.

= 1,500 + 275

= $1,775

Net Income = Revenue - Expenses

Net Income = 8,450 - 1,775

Net Income = $6,675

The Capital that Mr. Apple brought into the business refers to anything he contributed to the business whether in cash or otherwise.

The Capital therefore is,

- The $13,500 cash and the $20,000 worth of equipment.

The Capital Mr. Apple brought into the business is therefore,

= 13,500 + 20,000

= $33,500

The balance on the capital account will therefore be,

= Capital + Net Income

= 33,500 + 6,675

= $40,175

Option D. is correct.

Sundance systems has the following transactions during July.
July 5- Purchases 58 LCD televisions on account from Red River Supplies for $3,400 each, terms 2/10. n/30.
July 8- Returns to Red RIver two televisions that had detective sound.
July 13- Pays the full amount due to Red River.
July 28- Sells remaining 56 televisions purchased on July 5 fpr $3,900 each on account.Record the transactions of Sundance systems, assuming the company uses a perpetual inventory system.