Answer:
4.9%
Explanation:
The computation of the annual average rate of return over the three years is shown below:
Given that
Positive return in 1st year is 12.5%
The Negative return in 2nd year is 3.3%
And, the positive return in 3rd year is 5.5%
So, the annual average rate of return is
= (12.5% - 3.3% + 5.5%) ÷ (3 years)
= 4.9%
The Gamebox system normally sells for $250 and comes pre-packaged with one game. The average price for games is $30. The company also sells its online game subscription package, which allows members to download and play one new game per month, for $240. During the holiday season, the company provides a package deal which includes the gaming system with two games and a free one-year game subscription for $400. The company should allocate $192.31of the $400 package purchase price to the gaming system.
A. True
B. False
Answer:
The answer is "Option A"
Explanation:
The given statement is true because it uses the transaction price method. In this process, the amount of evaluation for the company entity continues to earn for the client to convert products or services.
Its quantity may also be fixed, changeable, or coupled, and the price of the payment shall be allocated to its fair value recognized throughout the contract, that's why in this question two gaming system includes with a 1-year free subscription in $400, and the organizations should make the gaming system $192.31 of a $400 bundle sales price.
Kresley Co. has provided the following 20X5 current account balances for the preparation of the annual Statement of Cash Flows: January 1 December 31 Accounts receivable $11,500 $14,500 Allowance for uncollectible accounts 400 500 Prepaid rent expense 6,200 4,100 Accounts payable 9,700 11,200 Kresley's 20X5 net income is $75,000. Net cash provided by operating activities in the Statement of Cash Flows should be
Answer:
Net cash provided by operating activities in the Statement of Cash Flows should be $75,700.
Explanation:
Prepare the Cash Flow from Operating Activities Section of the Cash Flow Statement using the Indirect method as follows :
Cash Flow from Operating Activities
Net Income for the year $75,000
Adjustment for non-cash items :
Increase in Allowance for uncollectible accounts $100
Adjustment for changes in working capital :
Increase in Accounts receivable ($3,000)
Decrease in Prepaid rent expense $2,100
Increase in Accounts payable $1,500
Net Cash from Operating Activities $75,700
Which of the following functions does not require financial markets?
a. Retention of cash by corporations
b. Provision of liquidity
c. Risk reduction by investment in diversified portfolios
d. Provision of pricing information
Answer:
The answer is A.
Explanation:
Financial markets do all of the options except retention of cash by corporations. Financial market does not have thr ability to determine the amount of cash that corporation keeps.
Financial markets provides liquidity by making sure corporations are able to access loans/bonds at every time .
It reduces risk by engaging in diversified portfolio.
Answer:
A. Retention of cash by Corporations.
Explanation:
The financial market, as the name depicts, is a marketplace that gives a platform for the sale and purchase of financial assets and commodities, such as stocks, bonds, derivatives, and foreign exchange. Liquidity, risk reduction, and pricing information are all functions of financial markets. But the option Retention of cash by corporation does not require the financial markets.
Hugh has the choice between investing in a City of Heflin bond at 4.95 percent or investing in a Surething Inc. bond at 7.60 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, what interest rate does Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds? (Round your answer to 2 decimal places.)
Answer:
8.25%
Explanation:
Hugh will pay tax on its interest income and hence teh after tax rate of income shall be = Interest rate * (1- tax) . City of Heflin bond is offering a rate of 4.95% after tax rate of return, hence Surething should offer a interest rate that given Hugh after tax rate of 4.95%.
Tax rate is given 40% = 0.40
So , Interest rate * (1 - tax) = 4.95%
Interest rate * (1 - 0.40) = 0.0495
Interest rate * 0.60 = 0.0495
Interest rate = 0.0495 / 0.60
Interest rate = 0.0825
Interest rate = 8.25%
Hence Surething should offer 8.25% interest rate.
Which federal agency protects bank deposits up to $250,000 per institution?
Office of the Comptroller of the Currency
Federal Deposit Insurance Corporation
Securities and Exchange Commission
Bureau of Consumer Protection
Answer:
Federal Deposit Insurance Corporation
Explanation:
Answer:
Federal Deposit Insurance Corporation
The Constitution gives the federal government the power to regulate _____?
Answer:
A clause of the U.S. Constitution that grants Congress the power "to regulate commerce with foreign nations, and among the several states, and with Indian tribes." This clause also gives the federal government the authority to regulate interstate commerce.
Explanation:
One major concern with restricted ownership of major media outlets is that Question 8 options: the incentives for quality media programs will be reduced as competition declines. fewer entertainment options will be available, as competition for audiences declines. fewer people will be able to consume media products, threatening the industry's viability. de facto censorship may occur because it becomes easier to suppress messages that media owners don't support.
Answer:
de facto censorship may occur because it becomes easier to suppress messages that media owners don't support.
Explanation:
Suppose there are 10 individuals with values as follows: {10, 8, 8, 8, 8, 8, 8, 4, 0, 0}. Construct a demand schedule (table), and calculate the marginal revenue of the second unit sold.
Answer:
so basically what you would do is
Explanation:
i have no clue
Which term refers to the possibility of an investor losing some or all of an investment?
O risk
0 likelihood
O probability
O chance
Answer:
The answer is Risk because every time a stock holder or/and investor puts money into someone else company/business, it's not promising that they'll get their profit back because the company/business may not expand as they intended too.
The term investment risk refers to the possibility of an investor losing some or all of an investment. Hence, option A holds true.
What is an investment risk?An investment risk is the term that relates to the chances that determine the status of an investment in such class where there is no certainty in gaining good or substantial amount of returns.
Risks of an investor cannot be predicted, however, there are steps to divide the risks by investing in different classes of assets or debts as per the risk profile of an individual investor. A risk is directly related to the effect of profitability of an investment.
Hence, option A holds true regarding investment risk.
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Golf Guide sells imprinted clothing and accessories for golfers through a catalog. To find new customers, Golf Guide sends a small catalog to names selected from mailing lists. The company mails out catalogs at a cost of $3,100 per thousand pieces mailed, and can expect a response rate of 6%. All responders become customers. Calculate the cost per customer acquired implied by these numbers. Round to the nearest penny.
Answer:
Cost per customer acquired = $51.67
Explanation:
Customer acquired per thousand pieces mailed = 1000*6% = 60
Total cost per thousand pieces mailed A $3,100
Divide by Customers acquired B 60
Cost per customer acquired A/B $51.67
Jessica owns a small trading company. The company buys small vending machines from a manufacturer and sells them to the a retailer, thus making a profit. Why are these vending machines a part of the trading firm’s current assets?
A.
the vending machines market value is lower than their original cost
B.
the vending machines are a part of the company’s income
C.
the vending machines are a part of the company’s expenses
D.
the vending machines are to be sold and converted into cash within the normal period of operation
E.
the vending machines could be sold at a loss
Answer:
is the letters B
Explanation:
A customer long 100 shares of XYZ stock who wishes to reduce risk and generate income should:_________.
a. sell a car.
b. buy a call.
c. buy a put.
d. sell a put.
Answer:
C
Explanation:
A customer long 100 shares of XYZ buys 100 shares of XYZ
A put is an option which gives an investor the right but not the obligation to sell an underlying asset at a predetermined price within a particular period.
To reduce the risk of buying an asset, a customer can buy a put. This gives the customer the right to sell the stock at a set price.
For example, the investor can state in the put contract that we would sell the stock at $4 / unit. So, even if prices of the shares fall to $1. the investor would still sell his share for $4 / unit
The main goal of monetary policy is to shift:____.a. long-run aggregate supply.b. aggregate demand. c. short-run aggregate supply.
Answer:
b. aggregate demand.
Explanation:
Monetary policy are policies taken by the central bank of a country to shift aggregate demand.
There are two types of monetary policy :
Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy
Contractionary monetary policy : these are policies taken to reduce money supply. When money supply decreases, aggregate demand falls. Increasing interest rate and open market sales are ways of carrying out contractionary monetary policy
Which one of the following is a real asset? Explain
A. A Patent
B. A personal IOU
C. A checking account balance
D. A share of stock
What is the most important thing to remember when writing a draft (apex)
A. Use the spelling and grammar checks
B. Write quickly without over thinking
C. Write in phrases, not in sentences
D. Look for mistakes in subject-verb agreement
Answer:
B. Write quickly without over thinking
Explanation:
(APEX)
just took the quiz
Write quickly without over thinking is the most important thing to remember when writing a draft.
Thus, the correct option is B.
What is a draft?An initial version of a piece of writing or written document that is frequently reviewed before verification is referred to as a "draft."
A written order of payment from one party (the drawer) to another (the drawee) instructing them to pay a specific amount to a third party (the payee) on or before a specific date is an example.
You can rethink and rewrite your thoughts after you draft them by putting them on paper. You will be able to determine where further information and supporting proof are needed by doing this.
It will also help you determine whether the concepts you are providing appear logical and whether your argument is clear.
The full paper will be sent along with the final draft. Your writing ought to appear polished by the time you complete the final draft. Grammar and spelling mistakes, fragmented sentences, weak or nonexistent paragraph transitions, and other first draft flaws should all be eliminated.
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Rhode, Inc., began business in Year 1. Inventory reported in the Year 3 year-end balance sheet, determined using the average cost method, was $170,000. In Year 4, the company decided to change its inventory method to FIFO. If the company had used the FIFO method in Year 3, ending inventory would have been $220,000. Prepare the appropriate journal entry to record this change.
Answer:
Dr Inventory 50,000
Cr Retained Earnings 50,000
Explanation:
Preparation of Journal entry
Based on the information given we were told that in Year 3 the inventory was determined using the average cost method at the amount of $170,000 while in Year 4, the company change the inventory method to FIFO. Therefore if the company used the FIFO method in Year 3 the company ending inventory would have been the amount of $220,000 which means that the Journal entry will be recorded as :
Dr Inventory 50,000
Cr Retained Earnings 50,000
(220,000-170,000)
(To record change in inventory from average cost method to FIFO method )
Dunkin’ Donuts made a strategic decision to make its business about the coffee, not just the donuts. What are the risks when a company that is so closely identified with one product (it’s in their name!) decides to change its focus to a different product? What marketing strategies can help reduce the risks and increase the probability of success?
Answer:
.
Explanation:
What are the steps to strategic management?
Answer:
The process of strategic management includes goal setting, analysis, strategy formation, strategy implementation, and strategy monitoring. Let's take a look at how each of these steps ties into the overall strategic management process. The first part of strategic management is to plan and set your goals.Nov
Identify a few examples of incentives that someone might encounter in his or her daily life. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Receiving five cents for recycling glass bottles checked Going grocery shopping unanswered Parking fines for illegal parking checked Meeting friends unanswered Tax breaks for 401(k) retirement contributions checked
Answer:
Receiving five cents for recycling glass bottles Parking fines for illegal parking Tax breaks for 401(k) retirement contributions checkedExplanation:
Recycling is good for the environment and also means companies spending less because they wouldn't have to reproduce the recycle material from scratch. Paying a person money for recycling the glass bottles is an incentive that is meant to encourage them to do it more.
Not all incentives are positive however. Some are negative and aimed at reducing a behavior. Fining people for illegal parking is an example as the logic is that the offending party will think of the fines the next time they want to park illegally and refrain from it.
Offering tax breaks to a person in order to get them to save is an incentive because they are being offered to keep more of their money if they save more.
In our day to day live we encounter many incentives, some of them are mentioned in the options such as A, C, and D.
Incentives
Incentives are something which influence us to do something. In the given question we are asked to write things which are encountered on daily basis, these are as follows:
Receiving five cents for recycling glass bottlesParking fines for illegal parkingTax breaks for 401(k) retirement contributions checkedTherefore the option A, C and D are correct.
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Crane Flight Services contributes $25 a week to Helen's retirement plan starting immediately. Assuming she works for Crane for another twenty-two years and the applicable discount rate is 4 3/4%. Given these assumptions, the value of this employee benefit today is closest to: (state your answer to 2 decimal places)
Answer:
The value of this employee benefit today is closest to $17,758.66
Explanation:
Crane Flight services per week contribution C = $25
Discount rate per r=4.75%
Discount rate per week r= 4.75% / 52 =0.0913%
Total Payment N = $52 * 22 years = $1,144
Current value of employee benefit P = C*(1+r)*(1-(1+r)^-N)/r
P=25*(1+0.0913%)*(1-(1+0.0913%)^-1144)/0.0913%
P = 25 * (1.000913) * (1 - (1.000913)^-1144)/0.000913
P = 25 * (1.000913) * 1 - 0.3520453/0.000913
P = 25 * (1.000913) * 709.6985
P = 17758.661368
P = $17,758.66
Receiving a payment from a customer on account would:
A) increase stockholders' equity.
B) have no effect on total assets.
C) increase stockholders' equity.
Answer:
Option B, have no effect on total assets, is the right answer.
Explanation:
Option “B” is correct because if the payment is received from the customer then it will increase the cash account or it will increase the stockholders’ equity but will have no effect on the total assets. The total assets account gets affected when there are sale and purchase of assets or there is any loss of gain of assets. But in the given case there is no relation with the assets account so it will have no effect.
is a retail chain specializing in salon-quality hair-care products. During the year, had sales of . The company began the year with of merchandise inventory and ended the year with of inventory. During the year, purchased of merchandise inventory. The company's selling, general, and administrative expenses totaled for the year. Prepare income statement for the year.
Answer:
.................................................Big Fuzzy Spider.................................................
.....................................Income Statement for the year.....................................
Sales............................................................................................ $39,150,000
Cost of Goods sold:
Opening Inventory ............................................$3,500,000
Add: Purchases...................................................$23,350,000
Less: Closing Inventory.................................... $4,445,000
Less: Cost of Goods Sold .........................................................($22,405,000)
Gross Profit....................................................................................$16,745,000
Less: Operating Expenses ........................................................($7,225,000)
Net Profit ................................................................................$9,520,000
Jackie has a margin account with $150,000 of his own money. The initial margin deposit required is 60 percent and Turtle Industries is currently selling at $50 per share. What is the maximum number of Turtle Industries shares Jackie can purchase meeting the initial margin requirement
Answer:
The maximum number of shares is 5,000 shares
Explanation:
The computation of the maximum number of shares is shown below:
= Margin account amount ÷ initial margin deposit required ÷ current selling price per share
= $150,000 ÷ 0.60 ÷ $50 per share
= 5,000 shares
hence, the maximum number of shares is 5,000 shares
We simply applied the above formula so that accurate shares could come
On December 31, 20x9, Pathos Food Service’s management decided to sell the Baclava division which has book value of $810,000. Management believes the division can be sold for $705,000 after spending $101,000 in sales costs. Baclava reported a monthly income of $29,000 in 20X9 and a monthly loss of $11,000 in 2x10. The division meets the rules to be classified as an asset held for sale as well as qualifying as a discontinued operation. The division sold for $692,000 on March 31, 2x10. Ignore income taxes. What does the company report as discontinued operations in 2x10?
Answer:
$11000
Explanation:
In general terms, assets held for sale are not depreciated, are measured at the lower of carrying amount and fair value fewer costs to selling, and are presented separately in the statement of financial position The company will report $11000 in 2x10 despite meeting criteria to be classified as held for sale, a loss is still elgibe to count down in the period in which it occurs. In this case, only one-month loss is counted.
1. New equipment costing $85,000 was purchased for cash during the year. 2. Old equipment having an original cost of $57,500 was sold for $1,500 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $40,350 was declared and paid during the year. Prepare a statement of cash flows using the indirect method.
Answer:
Cash flow from Operating Activities
Loss on Sale of Equipment ($57,500 - $1,500) $56,000
Net Cash flow from Operating Activities $56,000
Cash flow from Investing Activities
Purchase of New Equipment - $85,000
Proceeds from Sale of Equipment $1,500
Net Cash flow from Investing Activities - $83,500
Cash flow from Financing Activities
Dividend Paid - $40,350
Net Cash flow from Financing Activities - $40,350
Explanation:
The Indirect method, reconciles the Net Income or Operating Profit to Cash flow from Operating Activities by adjusting the following items : (1) Non-Cash items previously added or deducted from Operating Profit and (2) Changes to Working Capital items that need to be adjusted on the Operating Profit.
You are a member of the senior management staff at XYZ Corporation. You have historically been using a functional structure set up with five departments: finance, human resources, marketing, production, and engineering. Create a drawing of your simplified functional structure, identifying the five departments. Assume you have decided to move to a project structure. What might be some of the environmental pressures that would contribute to your belief that it is necessary to alter the structure? With the project structure, you have four projects currently ongoing: stereo equipment, instrumentation and testing equipment, optical scanners, and defense communications. Draw the new structure that creates these four projects as part of the organizational chart.
Answer and Explanation:
Please find diagram attached
Organizational structure can be depicted using the organizational chart showing how the different departments are arranged in such a manner as to suit the organization and be directed firmly towards its goals
B. Different organizational structure exists for different organizations depending on the type of business the company is into. A company would define it's organizational structure based on such things as market changes and competition to enable flexibility and actionable and quick responses to changes. This is done to enable quick and effective decision making for a constantly changing business environment
XYZ Corporation
Finance Human Resources Marketing Production Engineering
XYZ Corporation
Stereo equipment ------> Instrumentation-------> Testing equipment------> Optical Scanners---------> Defense communications
An organizational structure is how an organization is arranged with respect to the hierarchy and their various functions within the organization.
This helps to make sure that the organizational goals and visions are being met as this would help to keep focus of the group to achieve their common goal.
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Royal Bank common shares pay dividends annually. They just paid a $1.50 dividend. Stock holders require a return of 12%. Royal is expected to continue paying dividends that will grow at 3.5% per annum in perpetuity. What is the fair price of a share of Royal Bank stock?
Answer: $18.26
Explanation:
The Dividend discount model can be used to calculate he fair price of the Royal bank stock.
The formula is;
= Next dividend/ ( Required rate of return - growth rate)
= ( 1.5 * ( 1 + 3.5%))/ ( 12% - 3.5%)
= $18.26
Whispering Winds Corp. has the following transactions during August of the current year. Aug. 1 Issues shares of common stock to investors in exchange for $10,800. Aug. 4 Pays insurance in advance for 3 months, $1,200. Aug. 16 Receives $730 from clients for services rendered. Aug. 27 Pays the secretary $580 salary. Indicate the basic analysis and the debit–credit analysis.
Answer:
Aug. 1 Issues shares of common stock to investors in exchange for $10,800.
Accounting equation:
Asset + 10,800
Equity +10,800
Journal entry:
cash 18,000 debit
common stock 18,000 credit
Aug. 4 Pays insurance in advance for 3 months, $1,200.
Accounting equation:
Asset + 1,200
Assets - 1,200
Net 0
Journal entry:
prepaid rent 1,200 debit
cash 1,200 credit
Aug. 16 Receives $730 from clients for services rendered.
Accounting equation:
Asset + 730
Equity +730
Journal entry:
cash 730 debit
revenues 730 credit
Aug. 27 Pays the secretary $580 salary
Accounting equation:
Asset - 580
Equity - 580
Journal entry:
salaries expense 580 debit
cash 580 credit
Explanation:
We need to disclose how the impact in the accounting equation and the journal entry should be done:
Aug 1st the common stock is an equity account that is increasing
we receive cash that is an asset
August 4th we are using our cash to pay in advance the rent.
this gives a right to use the rental space for 3-months thus, it is not an expense is a new asset. There is no change in the accounting equation only the composition of assets changed.
August 16th we recognize earnings through revenues account this increases the equity of the company as well as assets.
August 27th in this case we pay the salaries which are an incurred cost, therefore, expense. This decreases equity.
We also use cash making assets to decrease as well.
One year ago, the Jenkins Center opened an investment account and deposited $4,600. Today, it is depositing another $6,000 and will make a final deposit of $8,500 one year from now. How much will the firm have saved four years from now if it earns an average annual return of 7.5 percent
Answer:$44,600
Explanation: Because that's what it is
Just before the semester starts, you notice that the campus bookstore has a sale on new laptop computers, which is something you have been planning to purchase in the coming months. The campus bookstore is offering 15 percent off on a laptop that normally costs $600. However, you are also considering buying a new TV for your apartment, and you know that the electronics store, Media-ocre Buy, is offering 20 percent off on a TV, which normally costs $400. Assuming you are currently unable to make both purchases due to budget constraints, which product offers the best deal
Answer:
Laptop
Explanation:
Based on the information provided we can calculate the savings of each item by turning the percentages into decimals and multiplying that decimal by the actual cost of the item.
Laptop = 600 * 0.15 = $90
TV = 400 * 0.20 = $80
Therefore after making these calculations, we can see that by buying the Laptop you are saving a total of $90 which would put you at $10 more than if you were to purchase the TV. Therefore, based solely on actual dollar amount saved then the Laptop is the better deal in this scenario.
