Answer and explanation:
2)
Date Account title Debit credit
Jan 31
1 Depreciation expense 525
Accumulated
depreciation -equipment 525
2
Bad debt expense 11160
Allowance for uncollectible account 11160
3 interest expense 255
Interest payable (51000*.06*1/12] 255
4 Income tax expense 13100
Income tax payable 13100
5 Deferred revenue 3100
sales revenue 3100
**Depreciation on equipment =[cost-residual value]/useful life
[16000-4300]/2
= 5850
Depreciation for one month = 5850*1/12= 487.5
**Accounts receivable at end = 46400 beginning+136000-125500-4900+134000=186000
Estimated uncollectible account at end =[12000*30%]+[(186000-12000)*.04]
= 3600+ 6960
= 10560
Unadjusted balance in allowance account =4300-4900=-600 debit
Bad debt expense= estimated uncollectible account at end- unadjusted balance in allowance account
= 10560 - (-600)
= 10560+600
= 11160
Zeta Gaming Company has an opportunity to purchase a video game phone app that will cost $150,000. Zeta expects the demand for the app to start strong but to diminish as people tire of the game. The expected cash inflows are as follows: Year 1 Year 2 Year 3 Year 4 Year 5 $60,000 $50,000 $40,000 $30,000 $20,000 If Zeta uses the cumulative approach the payback period for this investment is
Answer:
Payback period for this invest = 3 years
Explanation:
According to the scenario, computation of the given data are as follows:
Cost = $150,000
So, cumulative cash flow can be calculated as follows:
Year Cash flows Cumulative cash flows
0 ($150,000) ($150,000 )
1 $60,000 ($90,000 )
2 $50,000 ($40,000 )
3 $40,000 $0
4 $30,000 -$30,000
5 $20,000 -$50,000
As this shows in year 3 the cumulative cash flow becomes 0.
Hence, the payback period is 3 years.
= 3 years
Jeremy, an HR manager, has received an employee requisition for a data analyst job at his firm. Which of the following would most likely help Jeremy determine the qualifications the recruited person needs for the data analyst job? job identifier job description job posting job-knowledge test
Answer: Job description
Explanation:
The thing that will mostly be helpful to Jeremy is a job description. In that way, Jeremy can compare job description with the qualifications of the recruited person and he will be able to see if he is ready to take that job and do everything that data analyst will be obliged to do.
Data analyst job is considering cleaning, transforming and more, of modeling data. A recruited person must be able to discover useful information and inform others about it.
When Crossett Corporation was organized in January 2018, it immediately issued 4,000 shares of $50 par, 6 percent, cumulative preferred stock and 50,000 shares of $20 par common stock. Its earnings history is as follows: 2018, net loss of $35,000; 2019, net income of $125,000; 2020, net income of $215,000. The corporation did not pay a dividend in 2018. Required How much is the dividend arrearage as of January 1, 2019
Answer:
The correct answer is $12,000.
Explanation:
According to the scenario, computation of the given data are as follow:-
Issued Shares = 4,000
Shares Per Value = $50
Percentage of Cumulative Preferred Stock = 6%
We can calculate the Required Dividend Arrearage by using following formula:-
As Of January 1,2019 Arrearage Dividend = Issued Share × Value Of Per Share × % Of Cumulative Preferred Stock
By putting the value, we get
= 4000 × $50 × 6%
= $200,000 × 6/100
= $12,000
Rhonda has an adjusted basis and an at-risk amount of $23,600 in a passive activity at the beginning of the year. She also has a suspended passive activity loss of $4,720 carried over from the prior year. During the current year, she has a loss of $37,760 from the passive activity. Rhonda has no passive activity income from other sources this year. Determine the following items relating to Rhonda's passive activity as of the end of the year.At year-end, Rhonda has the following:
a. Adjusted basis in the passive activity: $0
b. Loss suspended under the at-risk rules: $4500
c. Suspended passive activity loss: $______
(I got A & B but im stuck on C...its not zero) help please..
Answer:
Explanation:
At risk amount = $23,600
Suspended loss at beginning of year = $4,720
Total loss under passive activity = $37,760
a. Adjusted basis in the passive activity: $0
b. Loss suspended under the at-risk rules: $14,1600
Loss suspended under the at risk rules :Total loss under passive activity - At risk amount
= $37,760 - 23,600 = $14,160
c. Suspended passive activity loss: $18880
Suspended loss at beginning of year + loss suspended under the risk rules = 4720 + 14160 = $18880
During 2021, its first year of operations, Hollis Industries recorded sales of $10,500,000 and experienced returns of $750,000. Cost of goods sold totaled $7,350,000 (70% of sales). The company estimates that 9% of all sales will be returned. Prepare the year-end adjusting journal entries to account for anticipated sales returns under the assumption that all sales are made for cash (no accounts receivable are outstanding).
Answer:
The adjusting entries are as follows
Explanation:
The adjusting entries are as follows
1. Sales return Dr $195,000
To Refund liabilities $195,000
(Being the sales return is recorded)
It is computed below:
= $10,500,000 × 9% - $750,000
= $195,000
2. Inventory estimated returns Dr $136,500
To Cost of goods sold $136,500
(Being the inventory estimated return is recorded)
It is computed below:
= $195,000 × 70%
= $136,500
Final answer:
To account for the anticipated sales returns, an adjusting journal entry is made. This involves debiting the Sales Returns and Allowances account and crediting the Sales Revenue account by the estimated return amount.
Explanation:
To account for the anticipated sales returns, we need to make an adjusting journal entry at the end of the year. Since the company estimates that 9% of sales will be returned, we need to calculate the estimated return amount. In this case, the estimated return amount is $10,500,000 * 9% = $945,000.
Now, let's make the adjusting journal entry. The first step is to debit the Sales Returns and Allowances account for the estimated return amount of $945,000. The offsetting credit entry is made to the Sales Revenue account, reducing it by the same amount. So, we credit the Sales Revenue account for $945,000.
The journal entry would be:
Debit: Sales Returns and Allowances - $945,000Credit: Sales Revenue - $945,000Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Digby has obtained a productivity index of 109.4%. This means that Digby's labor costs would be increased by 9.4% if it did not have these productivity improvements. This is a competitive advantage that Digby can sustain or even widen further if its competitors have no HR initiatives. Now, refer to the Income Statement in Digby's Annual Report. How much did Digby's productivity improvements save it in direct labor costs (in thousands) last year
Answer:
$ 3,063.
Explanation:
Saving in labor cost last year = Labor cost during current year * Increase in labor cost during current year.
= 32584 * 9.4 %
= $ 3,063
Conclusion :- Option a). $ 3,063. (This amount of $ 3063 increase in labor costs during current year as compared to last year represents to saving in labor costs during the last year i.e., Labor costs were less / short by $ 3063 during the last year).
Kindly note that this solution was arrived at based on the information that is available to me.
The direct labor cost is the cost incurred over the labor or employees for producing the goods or providing the services. There is a direct relationship between the productivity and direct labor cost.
The saving amount of direct labor cost for improving the productivity is $3,063.
Computation:
Given:
Labor cost of current year =$32,584
Percentage increase in labor cost =9.4%
[tex]\begin{aligned}\rm{Saving in labor cost last year}& = \rm{Labor \;cost\; during\; current\; year}\times\\& \rm{Increase \;in \;labor \;cost \;during \;current \;year}\\&= \$32,584 \times9.4 \%\\&= \$ 3,063\end{aligned}[/tex]
Therefore, $3,063 is the in the direct labor cost as compared to the previous year. Thus, last year the labor cost was short by $3,063.
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Crew Clothing (CC) sells women’s resort casual clothing to high-end department stores and in its own retail boutiques. CC expects sales for January, February, and March to be $510,000, $570,000, and $590,000, respectively. Twenty percent of CC’s sales are cash, with the remainder collected evenly over two months. During December, CC’s total sales were $820,000. CC is beginning its budget process and has asked for your help in preparing the cash budget.
-Compute CC’s expected cash receipts from customers for each month. (January, Febuary, March)
CC's expected cash receipts for January, February, and March are $430,000, $318,000, and $346,000 respectively, calculated based on a mixture of immediate cash sales and the collection of sales made on credit.
To calculate Crew Clothing's (CC) expected cash receipts from customers for each month, we must consider both the cash sales that occur in the month and the credit sales that are collected over the following two months. According to the information provided, 20% of CC's sales are cash, and the remainder is collected evenly over two months.
January Cash Receipts
For January, we consider December's credit sales and January's sales:
December sales (to be collected in January): $820,000 x 80% = $656,000January cash sales: $510,000 x 20% = $102,000Credit sales from December divided evenly over January and February: $656,000 / 2 = $328,000January total cash receipts: $102,000 (January cash sales) + $328,000 (December credit sales collected in January) = $430,000February Cash Receipts
For February, we include January's credit sales and February's sales:
January credit sales (to be collected in February): $510,000 x 80% = $408,000February cash sales: $570,000 x 20% = $114,000Credit sales from January divided evenly over February and March: $408,000 / 2 = $204,000February total cash receipts: $114,000 (February cash sales) + $204,000 (January credit sales collected in February) = $318,000March Cash Receipts
For March, we calculate using February's credit sales and March's sales:
February credit sales (collected in March): $570,000 x 80% = $456,000March cash sales: $590,000 x 20% = $118,000Credit sales from February divided evenly over March and April: $456,000 / 2 = $228,000March total cash receipts: $118,000 (March cash sales) + $228,000 (February credit sales collected in March) = $346,000
Complete the statements about the following three theories for the upward slope of the short-run aggregate-supply curve.
According to the sticky-wage theory, the economy is in a recession because the price level has declined so that real wages are too_____ , thus labor demand is too______ .
According to the sticky-price theory, the economy is in a recession because______ .
According to the misperceptions theory, the economy is in a recession when the price level is_______ what was expected. (fill in the blanks).
Answer:
high,high
not all prices adjust quickly
below
Explanation:
According to the sticky-wage theory, the economy is in a recession because the price level has declined so that real wages are too high, thus labor demand is too high.
Real wages decline as nominal wages are adjusted. As a result, the economy returns to full employment
According to the sticky-price theory, the economy is in a recession because not all prices adjust quickly.
As people observe the lower price level, the economy returns to the long-run aggregate supply curve.
According to the misperceptions theory, the economy is in a recession when the price level is below what was expected.
As people observe the lower price level, their expectations adjust.
MakerMan Manufacturing creates heavy-duty hand tools. It produces a new collapsible hammer called the SmackN’Stash. One of the first purchasers of the hammer, Rob, is using it at a construction site when the hammer’s head flies off and injures his coworker Cliff. How does the concept of strict liability apply to this situation?
Answer:
Anyone who is injured by a defective product may sue the manufacturer, merchants and all others who handled the product.
Explanation:
Strict liability is a legal doctrine that holds a person responsible for the damages or loss caused by his or her acts or omissions. In torts, strict liability is the doctrine that imposes liability on a party or person without a finding of fault. A finding of fault would be negligence or tortious intent.
Strict liability is an important factor in maintaining safety in high-risk environments by encouraging individuals, employers, and other parties to implement the means to prevent injuries and damages. Construction, manufacturing, and other potentially dangerous work settings are typically subject to strict liability.
Strict liability holds manufacturers like MakerMan Manufacturing responsible for injuries caused by defective products like the SmackN’Stash hammer, regardless of intent or negligence. This legal principle places the onus on manufacturers to ensure the safety of their products, as they are better equipped to mitigate potential risks. In cases of product defects that result in injury, manufacturers can be required to compensate for damages without the injured party proving fault.
Strict Liability in Product Defect Cases
The concept of strict liability applies to situations where a party can be held legally responsible for damages or injuries caused by its products or activities, regardless of whether there was any intent to harm or negligence. In the case of MakerMan Manufacturing and the incident with the SmackN’Stash hammer, under strict liability, the company could be held liable for the coworker's injury simply because their product malfunctioned and caused harm. Strict liability is important in product liability cases because it ensures manufacturers are accountable for the safety of their products. If a product is found to be defective and causes injury, the manufacturer can be required to pay for damages without the injured party having to prove negligence or fault.
Strict liability is based on the principle that some activities or products inherently come with certain risks, and those who engage in manufacturing or selling such products are in the best position to prevent harm. Therefore, they are held responsible when their products fail to be safe for their intended use. Factors such as the manufacturer's quality control processes, design decisions, or how clear the instructions or warnings were could be considered in determining if the product was defective.
Pamela is also a saver. She sets aside $200 per month during her 40 year career. She invests in the US stock market* through an index fund that averages a 7% return over this 40 year period. How much is her retirement account worth?
Answer:
$32,183.77
Explanation:
The value of her investment at the end of the 40th year will be equal to the accumulated sum pf the monthly payment compounded at the 7% rate of return.
This is given as follows:
FV = A × (1 -(1+r)^(-n))/r
A- monthly payment, r- monthly interest rate, n- number of months
A- 200, r- 7%/12 =0.583%, n = 40 × 12 = 480
FV = 200× (1- (1.00583)^(-480))/0.00583
=32,183.767
= $32,183.77
Using the future value of a series formula, the estimated value of Pamela's retirement account after 40 years with a $200 monthly investment and a 7% return rate is approximately $1,068,481.
Explanation:Pamela's investment can be calculated using the future value of a series formula. This formula is FV = P * [(1 + r)^nt - 1] / r, where:
P = $200 (the amount she sets aside per month) r = 7% or 0.07 annual rate (divided by 12 to get a monthly rate, or 0.07 / 12 = 0.005833), n = 12 (number of times the interest is compounded per year), t = 40 (number of years she is saving).
Substitute these values into the formula, it becomes: FV = $200 * [(1 + 0.005833)^(12*40) - 1] / 0.005833. After doing the math, the value of Pamela's retirement account is approximately $1,068,481.
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A company wants to set up operations in a country with the following corporate tax rate structure: Taxable Income Tax Rate <$50,000 15% $50,000 - $75,000 25% $75,000 - $100,000 34% >$100,000 39% Therefore, a taxable income of $60,000 would result in taxes due of $50,000*0.15 + ($60,000-$50,000)*0.25 = $50,000*0.15 + $10,000*0.25 = $10,000 If the compay expects gross revenues of $400,000, $100,000 in total costs, $60,000 in allowable tax deductions and $12,000 in a one-time business start-up credit, how much should the company expect to pay in taxes?
Answer:
Taxable income = $240,000
Amount payable = $64,850
Explanation:
As per the data given in the question,
Taxable income :
Gross revenue = $400,000
Total cost = $100,000
Net profit = $400,000 - $100,000 = $300,000
Allowable tax deduction = $60,000
Taxable income = $300,000 - $60,000
= $240,000
Tax to be paid :
Computation of tax Amount to be taxed Rate Tax
$50,000 $50,000 15% $7,500
$50,000 to $75,000 $25,000 25% $6,250
$75,000 to $100,000 $25,000 34% $8,500
More than $100,000 $140,000 39% $54,600
Total tax $76,850
Amount payable = Total tax - Tax credit
= $76,850 - $12,000
=$64,850
Footsteps Co. has a bond outstanding with a coupon rate of 6.4 percent and annual payments. The bond currently sells for $956.08, matures in 20 years, and has a par value of $1,000. What is the YTM of the bond? a. 6.81% b. 6.69% c. 6.13% d. 5.67% e. 6.40%
Answer:
The answer is A.
Explanation:
Yield-to-maturity is the rate of return an investor is expecting from his bonds.
Number of years (N) - 20 years
Yield-to-maturity(YTM) - ?
Present Value(price of bond) = $956.08
Future Value(FV) = $1,000
Payment Coupon(PMT) = $64(6.4% x $1000)
Using a Financial calculator, the Yield-to-maturity (YTM)
= 6.81%
Corporations today are operating in an environment in which exchange rate changes may adversely affect their competitive positions in the marketplace. This situation, in turn, makes it necessary for many firms toa) carefully manage their exchange risk exposure.
b) carefully measure their exchange risk exposure.
c) both a) and b)
Answer:
C) Both a) and b)
Explanation:
Exchange rate risk is a type of risk which is now present in mostly the emerging or the developing countries. If a company is operating in an emerging economy and suddenly the local currency of that country depreciates than it can favor the company as the exports will now be more cheap than before and will give competitive advantage to that firm. The vice versa will happen when the currency appreciates.
Hence, it is now important for every company to carefully manage their exchange rate risk as well as measure the risk associated with that.
Thank You.
On July 1, 2010, Ellison Company granted Sam Wine, an employee, an option to buy 400 shares of Ellison Co. stock for $30 per share, the option exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $1,800. Wine exercised his option on October 1, 2010 and sold his 400 shares on December 1, 2010. Quoted market prices of Ellison Co. stock in 2010 were:
July 1 $30 per share
October 1 $36 per share
December 1 $40 per share
The service period is for three years beginning January 1, 2010. As a result of the option granted to Wine, using the fair value method, Ellison should recognize compensation expense on its books in the amount of
a. $1,800.
b. $600.
c. $450.
d. $0.
Answer:
Ellison Company should recognize compensation expense on its books in the amount of $600
Explanation:
Solution
The transaction in the books of Ellison Company during the period of July 1st 2010 to December 31st 2010
On July 1st the share value was $30 *400 = 12000
On October 1st 2010 sold at $ 36 * 400 = 14400
The gain on this transaction was = $2,400
31st July 2010, less compensation expenses =$ 1,800
The fair vale to be recorded as a gain = $ 600
Suppose that a cafe enjoys a large increase in customers whenever the jazz club next door features a band playing appealing music because it can be easily heard from the cafe. The jazz club owner decides to purchase the cafe so that he can internalize this positive externality. Which of the following types of private solutions to the externality of appealing music has occurred in this case?
a. Contracts
b. Charities
c. Moral codes and social sanctions
d. Integration of different types of businesses through merger or acquisition
Answer:
D. Integration of different types of businesses through merger or acquisition
Explanation:
Externalities occur when the production or consumption of a particular good or service affects a third-party who is not related to the transaction. A positive externality is one that is favorable and beneficial to the third party and a negative externality is one that is unfavorable and creates a cost to the third party. In this case, the third party is the owner of the cafe and it is a positive externality because the music creates an increase in the number of customers to his/her business.
When the jazz club owner purchases/acquires the cafe, the cafe becomes his. Hence, the benefit felt to the cafe by the music from the jazz club is a benefit that his own new business incurs. Thus, the integration of these two businesses into one helps internalize the positive externality since now the main party involved in the transaction is also the one feeling the positive externality and not a third-party as used to be.
The jazz club owner has internalized the positive externality by purchasing the cafe, representing a private solution of integration through merger or acquisition.
Explanation:In the scenario provided, the cafe experiences a positive externality from the jazz club's music, which leads to an increase in customers when appealing music is played. The jazz club owner decides to internalize this positive externality by purchasing the cafe, so that he can benefit directly from the increased customer flow that the music provides to the cafe. This type of private solution to the externality of appealing music is an example of integration of different types of businesses through merger or acquisition. This move ensures that the benefits associated with the music are fully captured by the jazz club owner, now owner of both establishments, and is a textbook example of a business solution to manage externalities.
Suppose that the Dallas School District wants to achieve Six Sigma quality levels of performance in delivering students to school. They have established a 20-minute window as an acceptable range within which buses carrying students should arrive at school. a. What is the maximum allowable standard deviation of arrival times required in order to achieve this standard of quality? (Round your answer to 2 decimal places.) b. If they achieve this standard, about how many times out of a million deliveries will a bus deliver students either too early or too late? (Round your answer to 1 decimal place.)
Answer:
a) 1.66 minutes
b) 3.4 out of million deliveries
Explanation:
So, it is a six sigma quality question, we first need to understand little bit about six sigma and how it is to achieve six sigma level.
Six Sigma:
It is the process or technique used by many organizations through out the world to achieve maximum quality in a product or in a service they are providing. It helps to indicate root causes of the process or you can say waste steps which first need to be identified then rectified to bring that top-notch quality in the system. So in this case, in order to calculate part a) we will calculate six sigma control limits.
a) So, for six sigma control limits, the maximum allowable standard deviation is 12 or you can say +6 + (-6) = ±6 = 12. It means all deviations must lie in all 12 standard deviations.
Please refer to the table shown in the attachment. This bell curve represent six sigma concept. In this 3 sigma quality level means all deviations must lie in 6 standard deviations.
So, here we have been given that mean = 20, so with mean we can calculate standard deviation in six sigma control limits.
Maximum Allowable Standard Deviation for 6 sigma = Mean/12
= 20/12
= 1.66
So, 1.66 is the maximum allowable standard deviation of arrival times required in order to achieve 6 sigma quality level.
b) In this part, we are asked that, out of million deliveries about how many times bus deliver students too early or too late at this 6 sigma quality level.
For this answer, please refer to attachment again. and notice at the left bottom with the arrow of 6 sigma, we have a number 3.4 ppm means 3.4 part per million.
So, it 3.4 times in a million deliveries bus will deliver students either too early or too late.
Final answer:
To achieve Six Sigma quality, the Dallas School District's maximum allowable standard deviation for bus arrival times is approximately 4.44 minutes. If this standard is met, there would be about 3.4 late or early deliveries out of a million.
Explanation:
To achieve Six Sigma quality levels of performance, Dallas School District must determine the maximum allowable standard deviation for the arrival times of school buses. With a 20-minute window and the goal of Six Sigma, we understand that 4.5 standard deviations should fit within the acceptable range. This can be mathematically approached by dividing the total range by the number of standard deviations that fit within it, i.e., 20 minutes divided by 4.5.
a. The maximum allowable standard deviation for arrival times is:
Maximum allowable standard deviation = Total range / 4.5Maximum allowable standard deviation = 20 / 4.5Maximum allowable standard deviation = 4.44 minutes (rounded to two decimal places)b. Achieving Six Sigma quality implies that there would be only 3.4 defects per million opportunities or deliveries. Hence, if they achieve this standard, about 3.4 times out of a million deliveries a bus delivers students either too early or too late.
Tresnan Brothers is expected to pay a $1.60 per share dividend at the end of the year (i.e., D1 = $1.60). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 5%. What is the stock's current value per share? Round your answer to the nearest cent.
Answer:
The price of the stock today is $80.00
Explanation:
The price of a stock whose dividends are expected to grow at a constant rate is calculated by the constant growth model of the DDM. The price of a stock under DDM is based on the present value of the expected future dividends that the stock will pay. The formula for price under this model is,
P0 = D1 / r - g
Where,
D1 is the dividend expected for the next periodr is the required rate of returng is the growth rate in dividendsP0 = 1.6 / (0.05 - 0.03)
P0 = $80.00
he manager of the student center cafeteria, has added pizza to the menu. The pizza is ordered frozen from a local pizza establishment and baked at the cafeteria. She anticipates a weekly demand of 10 pizzas. The cafeteria is open 45 weeks per year. The ordering cost if $15 and the holding cost is $0.40 per pizza per year. The pizza vendor has a one week lead-time and the manager wants to maintain 1 pizza for safety stock. What is the optimal reorder point
Answer:
The correct answer is 11 pizza.
Explanation:
According to the scenario, computation of the given data are as follows:
Weekly demand = 10 pizzas
Safety stock = 1 pizza
Let cafeteria works 5 days a week, then daily demands = 10 ÷ 5 = 2 pizza per day
Lead time = one week = 5 days working.
So, we can calculate the optimal reorder point by using following formula:
Optimal reorder point = (Daily demand × Lead time) + Safety stock
By putting the value, we get
Optimal reorder point = ( 2 × 5) + 1
= 10 + 1
= 11 pizzas.
The Connors Company's last dividend was $1.00. Its dividend growth rate is expected to be constant at 15% for 2 years, after which dividends are expected to grow at a rate of 10% forever. Connors' required return (rs) is 12%. What is Connors' current stock price?
a. $56.82
b. $58.15
c. $62.87
d. $60.07
e. $54.91
Answer:
The price of the Stock today is $60.07. So option D is the correct answer.
Explanation:
The stock price of a company's stock whose dividends grow at two different growth rates can be calculated using the two stage Gordon growth model also known as the two stage DDM.
The short term growth rate or the growth rate that is for a limited time period is taken as g1. So, g1 is 15%
The sustainable growth rate which is the growth rate that will prevail forever is taken as g2. So, g2 is 10%
The price of the stock today is,
P0 = 1 * (1+0.15) / (1+0.12) + 1 * (1+0.150^2 / (1+0.12)^2 +
[ (1 * (1+0.15)^2 * (1+0.1) / (0.12 - 0.1)) / (1+0.12)^2 ]
P0 = $60.067 rounded off to $60.07
One of the most important activities of entrepreneurs is identifying their customers. This includes understanding when consumers are most likely to adopt new goods, and how consumers are classified. 1. The five basic types of consumers are listed below. Identify the order in which people adopt new goods by ranking the consumer types from 1 (first adopters) to 5 (last adopters). Early adopters Early majority Laggards Innovators Late majority 2. Choose the appropriate consumer type that corresponds with the following descriptions. High-income people who have inherited their wealth. Future oriented Below-average-income wage earners Present (security) oriented High-income people who have incomes from salary and investment Highest professionals, including merchants and financiers Present oriented Average-income wage earners Middle managers and owners of medium-sized businesses Above-average-income wage earners Present oriented, but worried about the impact of time Unskilled labor Skilled labor Owners of small businesses; non-managerial office and union managers Tradition-oriented people who often live in the past
Answer:
Explanation:
First we have to understand what is a consumer. A consumer is that person who purchases a goods or services for personal use.
1. Early adopters. (first adopters)
2. Innovators. (first adopters)
3. Early Majority. (first adopters)
4. Late majority. ( Last adopters)
5. Laggard. ( Last adopters)
2. a. High-income people who have inherited their wealth. ( Laggard)
b. Future oriented Below-average-income wage earners ( Innovators)
c. Present (security) oriented High-income people who have incomes from salary and investment. ( Late majority)
d. Highest professionals, including merchants and financiers. ( Last majority )
e. Present oriented Average-income wage earners. ( Early adopters)
f. Middle managers and owners of medium-sized businesses. ( Early Majority)
g. Above-average-income wage earners. ( early adopters)
h. Present oriented, but worried about the impact of time. (Late majority)
I. Unskilled labor Skilled labor. (Innovators)
J. Owners of small businesses; non-managerial office and union managers. ( early adopters)
K. Tradition-oriented people who often live in the past. (Laggard)
Presented here are selected transactions for the Leiss Company during April. Leiss uses the perpetual inventory system.
April 1 Sold merchandise to Mann Company for $5,500, terms 2/10, n/30. The merchandise sold had a cost of $2,500.
April 2 Purchased merchandise from Wild Corporation for $9,000, terms 1/10, n/30.
April 4 Purchased merchandise from Ryan Company for $1,000, n/30.
April 10 Received payment from Mann Company for purchase of April 1 less appropriate discount.
April 11 Paid Wild Corporation for April 2 purchase.
Journalize the April transactions for Leiss Company.
Answer:
April 1
J1
Trade Receivable - Mann Company $5,500 (debit)
Revenue $5,500 (credit)
J2
Cost of Goods Sold $2,500 (debit)
Merchandise $2,500 (credit)
April 2
Merchandise $9,000 (debit)
Trade Payable - Wild Corporation $9,000 (credit)
April 4
Merchandise $1,000 (debit)
Trade Payable - Ryan Company $1,000 (credit)
April 10
J1
Discount Allowed $110 (debit)
Trade Receivable - Mann Company $110 (credit)
J2
Cash $5,390 (debit)
Trade Receivable - Mann Company $5,390 (credit)
April 11
Trade Payable - Wild Corporation $9,000 (debit)
Cash $9,000 (credit)
Explanation:
Note : Leiss uses the perpetual inventory system
Therefore,
Recognize the Cost of Goods Sold with each sale that is made.
On January 1, 2019, the Bonds Payable account has a balance of $730,000. On December 31, 2019, the Bonds Payable account has a balance of $820,000. During 2019, one bond of $9,000 was retired. No discounts or premiums were amortized in 2019. What amount of new bonds were issued in 2019?
Answer: $99,000
Explanation:
Given the opening Balance of the Bond Payable account as well as the Closing Balance and the bonds that were retired for the year, we can deduce the amount of new bonds issued using the following formula,
Opening Balance + Bonds Issued - Retired bonds = Closing Balance
Making Bonds Issued the subject we have,
Bonds Issued = Closing Balance - Opening Balance + Retired bonds
Bonds issued is therefore,
= 820,000 - 730,000 + 9,000
= $99,000
$99,000 was the Amount of new bonds issued in 2019.
Answer:
ez ez ez pz pz pzp z
Explanation:
Mequon Inc. wishes to lease machinery to Thiensville Company. Thiensville wants the machinery for 4 years, although it has a useful life of 10 years. The machinery has a fair value at the commencement of the lease of $47,000, and Mequon expects the machinery to have a residual value at the end of the lease term of $30,000. However, Thiensville does not guarantee any part of the residual value. Thiensville does expect that the residual value will be $45,000 instead of $30,000.What would be the amount of the annual rental payments Mequon demands of Thiensville, assuming each payment will be made at the end of each year and Mequon wishes to earn a rate of return on the lease of 6%?
The annual lease payment that Mequon Inc. should charge Thiensville Company, given a machine's fair value of $47,000, residual value of $30,000, z desire for a 6% return, and a 4 year lease term, is approximately $6,700.
Explanation:The subject of the question pertains to the calculation of annual rental payments based on a desired rate of return. Mequon Inc. is leasing equipment to Thiensville Company and desires a 6% return on the lease. The lease period is four years. To calculate the annual rental payment, we need to differentiate the actual monetary value of the machinery at the start of the lease versus the end which is the residual value. The present value of the lease payments is equal to the fair value of the asset minus the present value of the residual value at the desired return rate.
Here are the steps:
Determine the present value of the residual value, which is $30,000. At a 6% interest rate over 4 years, it equates to $30,000/(1+0.06)^4 = $23,770.Subtract this value from the initial fair value of the asset: $47,000 - $23,770 = $23,230.This remaining amount is what Thiensville Company will pay in lease payments over the four year period. As such, to determine the annual lease payment, we divide this amount by the present value annuity factor for a 6% rate of return over 4 years: $23,230 / 3.465 = $6,700 approximately.Learn more about Lease Payments here:
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Court Enterprises Inc. would like to prepare a summary cash budget for March. The following information is available:
• The cash balance at March 1 was estimated to be $3,000.
• March sales, all on account, were estimated to be $50,000. Sales are collected over a two-month period with 65 percent collected in the month of sale and the remainder in the subsequent month. February sales on account were $60,000.
• Inventory purchases are expected to be $20,000 in March. The company pays for one-half of inventory purchases in the month of purchase and the remainder in the subsequent month. February’s purchases were $18,000.
• Cash disbursements for selling and administrative expenses are expected to be $4,000 in March.
• Depreciation expense for March is expected to be $5,000.
• Loan and interest payments for March are expected to be $25,000.
Required:
What is the cash balance at the end of March expected to be?
Answer:
$8,500
Explanation:
The computation of the cash balance at the end of March is shown below:
Opening Cash Balance $3,000
Add: Cash Collection from Sales $53,500 (($50,000 × 65%) +($60,000 × 35%)
Total Cash Available $56,500
Less: Cash Payments
Inventory $19,000 (($20,000 × 50%) + ($18000 × 50%)
S&A Expense $4,000
Loan & Int Payment $25,000
Depreciation - (Non Cash Expense)
Closing Cash Balance $8,500
We simply added the cash receipts and deduct the cash payments to the opening cash balance so that the ending cash balance could come
Destin Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $120,000 in debt. Plan II would result in 11,500 shares of stock and $140,000 in debt. The interest rate on the debt is 6 percent. a. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $70,000. The all-equity plan would result in 15,000 shares of stock outstanding. What is the EPS for each of these plans? (Round your answers to 2 decimal places. (e.g., 32.16))
Answer:
Plan 1= $40 per shares
Plan 2= $40 per shares
Explanation:
We can therefore calculate the price as the value of shares repurchased divided by the number of shares repurchased.
Hence:
Plan I, the value per share will be:
P = $120,000 / (15,000 – 12,000 shares)
P=$120,000/$3,000
P = $40 per share
Plan II, the value per share will be :
P = $140,000 / (15,000 – 11,500 shares)
P=$140,000/$3,500
P = $40 per share
Therefore the EPS for each of these plans is Plan l =$40 per shares and Plan ll=$40 per shares
Training programs which incorporate a variety of delivery modes and techniques tend to be particularly effective because trainees with certain _____________________ may learn better through one training approach than another.
A. training objectives
B. learner characteristics
C. ADDIE traits
D. supervisors
Answer:
The correct answer is letter "B": learner characteristics.
Explanation:
In psychology, there are three main learner's characteristics considered: personal characteristics (demographic information from the learners such as age, gender, language or social-economic status), academic characteristics (type of education and qualifications), and cognitive characteristics (level of intellectual skills and type of operational memory).
These characteristics must be considered by trainers at the moment of creating their programs since they must include a variety of learning approaches suitable for each type of learner in an attempt to ensure they will understand the information the trainer wants to transmit.
You should choose as the more appropriate strategy for managing diversity, since it is an example of . You were unable to attend all of the training, but your coworker has offered to fill you in on the details that you missed. Identify which of the following statements your coworker is likely to indicate as diversity principles discussed during your absence. Check all that apply. Understand you will need feedback from employees on the implementation of the diversity program, both positive and negative. Do not shy away from setting high, but realistic, goals while implementing a diversity program. If necessary, you should lower employee standards to promote diversity.
Answer:
Statement 1 and 2 are correct.
Explanation:
Diversity in the workplace refers to an organization that intentionally employs a workforce comprised of individuals of varying gender, religion, race, age, ethnicity, sexual orientation, education, and other attributes.
Diversity in the workplace leads to a plethora of benefits – both from an internal and external perspective. However, that doesn’t mean implementing diversity initiatives at work isn’t without its unique set of challenges.
Statement 1
Understand you will need feedback from employees on the implementation of the diversity program, both positive and negative.
Statement 2
Do not shy away from setting high, but realistic, goals while implementing a diversity program.
The coworker is likely to indicate the principles of gathering feedback from employees and setting realistic goals, while avoiding lowering employee standards.
Explanation:Based on the given information, the coworker is likely to indicate the following diversity principles:
Understand you will need feedback from employees on the implementation of the diversity program, both positive and negative: This principle emphasizes the importance of gathering feedback from employees to understand their experiences and improve the diversity program.Do not shy away from setting high, but realistic, goals while implementing a diversity program: This principle suggests that ambitious goals should be set, but they should be feasible and attainable within the context of the organization.The statement 'If necessary, you should lower employee standards to promote diversity' is not a valid diversity principle. Lowering employee standards solely to promote diversity can compromise quality and fairness in hiring and may not be the most appropriate strategy for managing diversity.
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Suppose the S&P 500 index is currently 950 and the initial margin is 10%. You wish to enter into 10 S&P 500 futures contracts. a. What is the notional value of your position? What is the margin? b. Suppose you earn a continuously compounded rate of 6% on your margin balance, your position is marked to market weekly, and the maintenance margin is 80% of the initial margin. What is the greatest S&P 500 index futures price 1 week from today at which you will receive a margin call?
Final answer:
The notional value of entering into 10 S&P 500 futures contracts with an index at 950 is $2,375,000, and the initial margin is $237,500. A margin call would occur if the futures price drops significantly in a week, considering a 6% continuously compounded interest rate on the margin balance and an 80% maintenance margin requirement.
Explanation:
The question involves calculating the notional value and initial margin for entering into S&P 500 futures contracts and determining the futures price at which a margin call would occur given certain conditions.
a. Notional Value and Initial Margin
The notional value of a futures contract is the value of the underlying asset represented by the contract. With the S&P 500 index currently at 950 and the intention to enter into 10 contracts, the notional value would be 950 (index value) * 10 (number of contracts) * $250 (standard contract size for S&P 500 futures), totaling $2,375,000. The initial margin, being 10% of this value, equates to $237,500.
b. Margin Call Price
With weekly mark-to-market and a maintenance margin set at 80% of the initial margin, the margin balance would need to be at least $190,000 (80% of $237,500). Assuming a continuously compounded interest rate of 6% on the margin balance, the account value would grow to approximately $240,113.29 in one week. To avoid a margin call, the futures price should not drop to a level where the equity in the account falls below the maintenance margin requirement, considering gains from interest.
Four years ago, Bling Diamond, Inc., paid a dividend of $1.73 per share. The firm paid a dividend of $2.36 per share yesterday. Dividends will grow over the next five years at the same rate they grew over the last four years. Thereafter, dividends will grow at 5% per year. What will the firm’s cash dividend be in seven years?
Answer:
$2.90 approx
Explanation:
The computation of firm’s cash dividend be in seven years
First we need to find out the
Growth Rate = (Last Dividend ÷ Dividend 4 years ago)^(1 ÷ 4) - 1
= ($2.36 ÷ $1.73)^(1 ÷ 4) - 1
= $1.36^0.35 - 1
= 1.113624092 - 1
= 0.113624092
= 11.36%
Now we calculate for 5 years
Dividend in 5 years = $2.36 × 1.113624092
= $2.628
and Dividend in 7 Years = Dividend in 5 years × (1 + 5%)^2
= $2.628 × 1.05^2
= $2.628 × 1.1025
= $2.90 approx
Final answer:
To find the cash dividend paid by Bling Diamond, Inc. in seven years, we first calculate the historical growth rate, project the dividend after five years using this growth rate, and then apply a perpetual growth rate of 5% for the subsequent two years.
Explanation:
The question involves calculating the future value of dividends paid by Bling Diamond, Inc., given an initial growth rate followed by a perpetual growth rate. To determine the cash dividend Bling Diamond, Inc. will pay in seven years, we'll need to calculate the growth rate of the dividends over the last four years, apply this rate to project dividends for the next five years, and then apply the perpetual growth rate of 5% for the two additional years.
Calculation Steps:
Determine the historic growth rate of the dividends over the past four years using the formula for the growth rate (g): g = (D1/D0)^(1/n) - 1, where D0 is the dividend four years ago, D1 is the dividend today, and n is the number of years.Calculate the dividend in five years by compounding the current dividend with this growth rate for five years.Apply the perpetual growth rate of 5% to find the dividend in years six and seven.Let's go through the calculations:
Historic growth rate: g = ($2.36 / $1.73)^(1/4) - 1Dividend in five years: D1 = $2.36 * (1 + g)^5Dividend in seven years: D7 = D5 * (1 + 0.05)^2After these calculations, you'll have the forecasted dividend that Bling Diamond, Inc. will pay in seven years.
Wyatt Oil is contemplating issuing a 20-year bond with semiannual coupons, a coupon rate of 7%, and a face value of $1000. Wyatt Oil believes it can get a BBB rating from Standard and Poor's for this bond issue. If Wyatt Oil is successful in getting a BBB rating, then the issue price for these bonds would be closest to: $800 $891 $901 $1,000 $1,107
Complete question:
Security Term (years) Yield (%)
Treasury 2 0 5.5%
AAA Corporate 2 0 7.0%
BBB Corporate 20 8.0%
B Corporate 2 0 9.6%
Wyatt Oil is contemplating issuing a 20-year bond with semiannual coupons, a coupon rate of 7%, and a face value of $1000. Wyatt Oil believes it can get a BBB rating from Standard and Poor's for this bond issue. If Wyatt Oil is successful in getting a BBB rating, then the issue price for these bonds would be closest to:
A) $891 B) $901 C) $1,000 D) $800
Answer:
If Wyatt Oil is successful in getting a BBB rating, then the issue price for these bonds would be closest to: $901
Solution:
Given,
FV = 1000,
N = 40,
I = 4,
PMT = 35
Compute PV ,
PV = [tex]FV \frac{1}{( 1+r)^{n} }[/tex]
PV = 901.04
If Wyatt Oil is successful in getting a BBB rating, then the issue price for these bonds would be closest to: $901
The issue price for the bond issued by Wyatt Oil is likely to be around $1000, assuming the market interest rate for BBB bonds rates aligns with the 7% coupon rate.
Explanation:The issue price for the bond is typically the same as the face value if the coupon rate equals the market interest rate for bonds of similar risk. Since the bond issued by Wyatt Oil has a BBB rating, we can comprehensively analyze it. However, without knowing the market interest rate, it's difficult to establish the exact price of the bond. If the given options are the only possibilities, and if we assume that the market interest rate for BBB-rated bonds is approximately the same as the 7% coupon rate, then the price would most likely be closest to $1000 as the face value, and the coupon rate are close.
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