Answer: To include diversity within the work environment, the following actions can be developed:
1- Establish a policy at the level of human resources to hire a specific number of women, mens, nationals and foreigners.
2- Dedicate one or several days a year to show the different cultures that remain in the company.
3- Place signs in the work area such as walls, wallpapers on the work site inherent in diversity.
Shelley is employed in Texas and recently attended a two-day business conference at the request of her employer. Shelley spent the entire time at the conference and documented her expenditures (described below). What amount can Shelley deduct if she is not reimbursed by her employer?
Airfare to New Jersey $2,000
Meals $220
Lodging in New Jersey $450
Rental car $180
(A) $2,850
(B) $2,740
(C) $1,850 if Shelley's AGI is $50,000
(D) All of these expenses are deductible if Shelley attends a conference in Texas.
(E) None of the expenses are deductible by an employee.
Answer:
(E) None of the expenses are deductible by an employee.
Explanation:
Given:
Airfare to New Jersey = $2,000
Meals = $220
Lodging in New Jersey = $450
Rental car = $180
Since, all the expenses here are linked to the activities that are done on the business trip i.e expenses not occurred for the personal benefit or for the personal use.
also, the employees cannot deduct the business expenses.
hence, option (E) is correct
In the JK partnership, Jacob's capital is $140,000, and Katy's is $40,000. They share income in a 3:2 ratio, respectively. They decide to admit Erin to the partnership. Each of the following questions is independent of the others.
Refer to the information provided above. Jacob and Katy agree that some of the inventory is obsolete. The inventory account is decreased before Erin is admitted. Erin invests $38,000 for a one-fifth interest. What are the capital balances of Jacob and Katy after Erin is admitted into the partnership?
Jacob Katy
A. $140,000 $40,000
B. $134,000 $36,000
C. $123,200 $28,800
D. $118,400 $25,600
Answer:
C. $123,200 $28,800
Explanation:
Provided information, we have:
Existing capital = $140,000 + $40,000 = $180,000
Admission of Erin for 1/5th share = $38,000
Total capital as per Erin share = $38,000 [tex]\times[/tex] 5 = $190,000
But actual total capital = $180,000 + $38,000 = $218,000
Therefore, inventory written off = $218,000 - $190,000 = $28,000
Jacob = $28,000 [tex]\times[/tex] 3/5 = $16,800
Katy = $28,000 [tex]\times[/tex] 2/5 = $11,200
Therefore,
Jacob's balance = $140,000 - $16,800 = $123,200
Katy's Balance = $40,000 - $11,200 = $28,800
In its second year of business, a company has a net income of $120,000. The following table provides year-end account information. Account Year 1 Year 2 Accounts payable $5,000 $4,000 Accumulated depreciation $65,000 $85,000 Prepaid expenses $20,000 $15,000 Fixed assets $250,000 $255,000 The company uses the indirect method to prepare a statement of cash flows for Year 2. How much should the company report as net cash provided by operating activities
Answer:
Net cash provided by operating activities is 149.000
Explanation:
The indirect method involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.
First we have to see if each account increase o decrease by resting value of year 1 to the year 2
Decrease/ Increase =year 2 - year 1
For example Accounts payable
year 1 $5,000
year 2 $4,000
Accounts payable decrease 1000 ($4,000-$5,000 )
Once we have this information we make the adjustments.
It depends on the account if it is added or subtracted to net income. Below you will find the added account with a plus (+) and the subtracted ones with a minus (-)
Notice the amounts of any decreases are in parentheses.
Net income 120.000
Adjustment to reconcile the net income to cash
- Decrease in accounts payable (1.000)
+ Depreciation expense 20000
+ Decrease Prepaid expenses 5.000
+ Decrease in Fixed assets 32.400
Net cash 149.000
Mr. E, a petroleum engineer, earns an $72,500 annual salary, while Mrs. E, a homemaker, has no earned income. Under current law, the couple pays 20 percent in state and federal income tax. Because of recent tax law changes, the couple’s future tax rate will increase to 28 percent. If Mrs. E decides to take a part-time job because of the rate increase, how much income must she earn to maintain the couple’s after-tax disposable income? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Answer:
It will require an income for 80,556 before taxes
Explanation:
Fiorst, we will calculate the current tafter tax income:
72,500 x 20% = 14,500 tax expense
72,500 - 14,500 = 58,000 after-tax income
Now, we will calculate the pre-tax income to keep the same after-tax income with the new rate:
pretax income x ( 1 - new tax rate) = 58,000
pretax income x ( 1 - 0.28) = 58,000
pretax income = 58,000/0.72 = 80,555.56
At this level, Mr E will obtain the same after-tax income
Final answer:
To maintain the couple's disposable income after the tax rate change from 20% to 28%, Mrs. E must earn an additional $8,056 based on the calculation of their current after-tax income and the shortfall created by the increased tax rate.
Explanation:
To calculate how much income Mrs. E must earn to maintain the couple's after-tax disposable income after the tax rate increase from 20% to 28%, we must first determine their current after-tax income. With Mr. E's current salary of $72,500 and a tax rate of 20%, the after-tax income is calculated as follows:
Calculate the total tax paid: $72,500 * 20% = $14,500.Determine after-tax income: $72,500 - $14,500 = $58,000.Next, we calculate the new after-tax income with the increased tax rate of 28%:
Calculate the total tax paid under the new rate: $72,500 * 28% = $20,300.Determine after-tax income with the new tax rate: $72,500 - $20,300 = $52,200.Now, to maintain their original after-tax income of $58,000, we need to find out how much Mrs. E needs to earn:
Calculate the shortfall due to the new tax rate: $58,000 - $52,200 = $5,800.Find out how much gross income is needed to cover the shortfall, considering the new 28% tax rate. If $X is the income needed, then $X - ($X * 28%) = $5,800.Solve for $X: $X = $5,800 / (1 - 0.28) = $5,800 / 0.72 = $8,055.55, which when rounded to the nearest whole dollar is $8,056.Therefore, Mrs. E must earn an additional $8,056 to maintain the couple's after-tax disposable income at the current level, accounting for the tax rate increase to 28%.
Company G, which has a 30 percent marginal tax rate, owns a controlling interest in Company J, which has a 21 percent marginal tax rate. Both companies perform engineering services. Company G is negotiating a contract to provide services for a client. Upon satisfactory completion of the services, the client will pay $85,000 cash. Compute the after-tax cash from the contract assuming that Company G is the party to the contract and provides the services to the client. Compute the after-tax cash from the contract assuming that Company J is the party to the contract and provides the services to the client. Compute the after-tax cash from the contract assuming that Company J is the party to the contract, but Company G actually provides the services to the client.
The after-tax cash for Company G and Company J, given the contract value of $85,000 and their respective tax rates, are $59,500 and $67,150. Even if Company G performs the service under the contract of J, the tax is accounted based on J's rate, thus the after-tax cash remains the same for both companies.
Explanation:The after-tax cash that the two companies will get is computed by subtracting the taxes from the total contract value. Company G has a 30 percent marginal tax rate. If it is the party to the contract and provides the services to the client, the tax will be $85,000 * 0.3 = $25,500. Therefore, the after-tax cash for Company G will be $85,000 - $25,500 = $59,500.
Now, let's consider Company J. It has a 21 percent marginal tax rate. If it is the party to the contract and provides the services, the tax will be $85,000 * 0.21 = $17,850. Therefore, the after-tax cash for Company J will be $85,000 - $17,850 = $67,150.
If Company J is the party to the contract, but Company G actually provides the services, the tax will still be calculated based on Company J's marginal tax rate. Thus, the after-tax cash from the contract for these companies remains the same at $67,150.
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If the money supply exceeds money demand, people will ____ bonds which will cause bond prices to ____ and the nominal interest rate to _____ until money demand equals money supply. A. buy; rise; fall
B. sell; fall; fall
C. sell; rise; fall
D. buy; fall; rise
Answer:
A. buy; rise; fall
Explanation:
As for the provided information, we know,
As the supply of money exceeds the demand people will have more investing power, accordingly people will buy more bonds,
as more and more people will try to buy the bonds the price for bond because of high demand will automatically due to demand and supply proportion will rise,
and then to control the demand of bond, and control the purchase of bond, the nominal interest rate provided on bonds will fall.
Which capital budgeting method is most useful for evaluating a project that has an initial after-tax cost of $5,000,000 and is expected to provide after-tax operating cash flows of $1,800,000 in year 1, ($2,900,000) in year 2, $2,700,000 in year 3, and $2,300,000 in year 4?
Answer:
NPV discounted at cost of capital
Explanation:
Internal Rate of Return: As there are 2 negative cash flow, the IRR will have two different values, so it would not be a good idea to use it.
The best way will be the net present value with the discounted cash flow at the cost of capital, that way all the cash inflow and outflow are discounted at the same rate and can be compare to know the net value of the investment.
Final answer:
The most useful capital budgeting method for evaluating a project with irregular cash flows, such as those described, is the Net Present Value (NPV) method. NPV accounts for the timing and magnitude of cash flows by discounting them back to their present value, helping to decide if the project is financially viable.
Explanation:
The capital budgeting method most useful for evaluating a project with mixed cash flows over several years is the Net Present Value (NPV) method. This method involves discounting future cash flows back to their present value using a discount rate that reflects the cost of capital or required rate of return. The NPV calculation will accumulate all cash flows, taking into account costs and revenues, and adjust them for the time value of money.
To evaluate the given project, you calculate the NPV of the after-tax operating cash flows, including the initial cost of $5,000,000. The NPV should be compared to zero, allowing you to determine if the project adds value. A positive NPV indicates that the project is expected to generate more money than it costs, thus being a potentially sound investment.
Cash flows for this project are quite irregular, including a negative cash flow in year 2, which makes the NPV method particularly suitable for this evaluation. The NPV allows for an accurate appraisal of such projects by considering each cash flow on an individual basis and incorporating the specifics of the project's timing and magnitude of cash flows.
Workers and management agree on a contract that gives a 5% wage increase for each of the next three years. Everyone expected 3% inflation but inflation turned out to be 5% per year. Then at the end of three years...
a. real wages will be higher than was expected.
b. real wages will have fallen
c. nominal and real wages will have changed by the same percentage.
d. real wages will be lower than was expected.
Answer:
The correct option is (d)
Explanation:
Real wages are nominal wages less inflation. Nominal wage is not adjusted for inflation. Everyone had expected an inflation of 3% per year while increase in wages per year is 5%. This implied that they will expect real wage of 2% (5% - 3%) per year.
However, it turned out that inflation was 5% per year. This means that real wages were actually 0% (5% - 5%). There was no increase in real wages at all. So, they received lower real wage (actually nil) as against expected real wage of 3% per year.
On May 20, 2019, when the spot rate is $1.28/€, a U.S. company buys merchandise from a supplier in Italy, at a cost of €100,000. The spot rate is $1.25/€ on June 30, the company’s year-end. Payment of €100,000 is made on July 30, 2019, when the spot rate is $1.32/€. What is the effect on fiscal 2019 and fiscal 2020 income?
Fiscal 2019 Fiscal 2020
(a) No effect $4,000 exchange loss
(b) $3,000 exchange loss $7,000 exchane gain
(c) No effect $4,000 exchange gain
(d) $3,000 exchange gain $7,000 exchange loss
Answer:
The effect on fiscal 2019 is $3,000 exchange gain and $7,000 exchange loss on fiscal 2020
Explanation: At the company year end on june 30, as it is a debt in foreign currency, the company must account for the exchange difference, that is $100,000 * $1.25/€ (year end) - $100,000 * $1.28/€ (date of purchase)= $125,000-$128,000. So the american company owes less money ($3,000) at year end (it is an exchange gain).
But when the debt is cancelled the spot rate is $1.32/€, and the debt was accounted at $125,000 so for fiscal year 2020 the exchange loss is $7,000
$100,000 * $1.32/€= $132,000-$125,000=$7,000 loss.
On January 1, 2016, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of $8,000. On December 31, 2018, Jacob Inc. sold the truck for $30,000. What amount of gain or loss should Jacob Inc. record on December 31, 2018?
A.Loss, $3,000.
B.Loss, $18,000.
C.Gain, $22,000.
D.Gain, $5,000.
Answer:
Gain= $5000
Explanation:
Giving the following information:
On January 1, 2016, commercial truck for $48,00
Straight-line depreciation method.
Useful life of eight years.
Residual value of $8,000.
On December 31, 2018, Jacob Inc. sold the truck for $30,000.
Annual depretiation= (purchase value-residual value)/useful years
Annual depretiation= (48000-8000)/8=5000
Accumulated depreciation= 5000*2 years= 10000
Book value at second year= purchase value-accumulated depreciation= 38000
Gain/Loss= Sell price- book value= 43000-38000= $5000
Profits and losses play an important role in helping a. to signal to government which businesses are suffering losses so that they can be subsidized. b. consumers decide which products they value the most by looking at each firm's profit. c. direct businesses toward productive projects and away from ones that are productive. d. ensure that the total profits in the economy exactly equal the total losses.
Profits and losses signal to businesses which ventures are most productive, driving them to invest in successful areas, while losses encourage firms to leave or improve. This effective resource allocation contributes to innovation and economic gains as firms compete to meet consumer needs.
Explanation:Profits and losses play a key role in the market economy and can indicate the health of a firm as well as influence resource allocation. When a business generates profits, it suggests that consumers value its products or services, which can lead to expansion and investment in that area. On the contrary, consistent losses signal that resources may be better used elsewhere, and can lead to firms exiting the market. This process of profit and loss serves to direct businesses towards the most productive projects and away from less productive ones. It does not solely signal to government which businesses to subsidize, dictate consumer preferences, or balance total profits with losses across the economy.
Comparison with Market Competition and Firm DecisionsMoreover, competition leads to innovation, better and cheaper products, and overall gains for the economy. Firms that are unable to keep up may suffer losses, and potentially cease to exist. This competitive environment helps to ensure that only businesses that efficiently meet consumer needs survive in the long run. Government intervention may be considered to balance benefits of scale against loss of competition.
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Various financial data for the past two years follow. LAST YEAR THIS YEAR Output: Sales $ 200,100 $ 202,100 Input: Labor 30,100 40,100 Raw materials 35,100 45,100 Energy 5,010 6,050 Capital 50,010 49,750 Other 2,010 2,875 (a) Calculate the total productivity measure for this company for both years
Answer: $1.637; $1.404
Explanation:
Given that,
Last year:
Output - Sales = $200,100
Input:
Labor = 30,100
Raw materials = 35,100
Energy = 5,010
Capital = 50,010
Other = 2,010
Input = 30,100 + 35,100 + 5,010 + 50,010 + 2,010
= 122,230
Total Productivity = [tex]\frac{output}{input}[/tex]
= [tex]\frac{200,100}{122,230}[/tex]
= $1.637
This year:
Output - Sales = $202,100
Input:
Labor = 40,100
Raw materials = 45,100
Energy = 6,050
Capital = 49,750
Other = 2,875
Input = 40,100 + 45,100 + 6,050 + 49,750 + 2,875
= 143,875
Total Productivity = [tex]\frac{output}{input}[/tex]
= [tex]\frac{202,100}{143,875}[/tex]
= $1.404
Final answer:
Total productivity measure is calculated by dividing total sales by total input costs for each year. For Last Year, total productivity is approximately 1.64, and for This Year, it is approximately 1.40, indicating the efficiency of resource use over time.
Explanation:
To calculate the total productivity measure for the company, we must first sum up all the inputs (labor, raw materials, energy, capital, and other costs) for each year and then divide the total sales output by this sum. For Last Year, the total input costs are $30,100 (labor) + $35,100 (raw materials) + $5,010 (energy) + $50,010 (capital) + $2,010 (other) = $122,230. Total productivity is hence $200,100 (sales) ÷ $122,230 (total inputs) = 1.64 approx. For This Year, the total input costs are $40,100 (labor) + $45,100 (raw materials) + $6,050 (energy) + $49,750 (capital) + $2,875 (other) = $143,875. The total productivity for This Year is thus $202,100 (sales) ÷ $143,875 (total inputs) = 1.40 approx. These calculations allow us to understand the total efficiency with which resources are being transformed into sales revenue over time.
Compute the future value of $2,000 compounded annually for 20 years at 6 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Compute the future value of $2,000 compounded annually for 15 years at 9 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
A) FV= 6414.27
B) FV=2000*(1.09^15)= 7284.97
Explanation:
Giving the following information:
A) Present value= $2,000
Compounded annually for 20 years at 6 percent.
n= 20
i=0.06
B) Present value= $2,000
Compounded annually for 15 years at 9 percent.
n=15
i= 0.09
To calculate the Final Value we need to use the following formula:
FV= Present value*(1+interest rate)^n
A) FV= 2000*(1.06^20)
FV= 6414.27
B) FV=2000*(1.09^15)= 7284.97
The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed long-term debt of $2.5 million, and the 2015 balance sheet showed long-term debt of $2.65 million. The 2015 income statement showed an interest expense of $100,000. What was the firm’s cash flow to creditors during 2015?The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed long-term debt of $2.5 million, and the 2015 balance sheet showed long-term debt of $2.65 million. The 2015 income statement showed an interest expense of $100,000. What was the firm’s cash flow to creditors during 2015?
Answer:
Total CashFlow to creditors : ($50.000).
Explanation:
Total Cash flow to creditors it's = I - E + B, where I it's Interest, E it's Ending Long Term Debt and B it's Beginning Long Term Debt.
With this, it means we get money from creditors instead of a payment to them.
Answer:
50000
Explanation;
The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed long-term debt of $2.5 million, and the 2015 balance sheet showed long-term debt of $2.65 million. The 2015 income statement showed an interest expense of $100,000. What was the firm’s cash flow to creditors during 2015?
Particulars Amount$
Interest Paid(a) 100,000
Less
Net new borrowings
Long Term debt at the end Of 2015 2650000
Less:Long Term debts in the beginning 2500000
Net new borrowings(b) 150000
Cash flow to creditors(a)-(b) 50000
cash flow to credits during 2015 is 50000
For June, Gold Corp. estimated sales revenue at $400,000. It pays sales commissionsthat are 4% of sales. The sales manager's salary is $190,000, estimated shippingexpenses total 1% of sales, and miscellaneous selling expenses are $10,000. How muchare budgeted selling expenses for the month of July if sales are expected to be$360,000?
Answer:
The budgeted selling expenses for the month of July is $220,000
Explanation:
The computation of the budgeted selling expenses are shown below:
= Sales commission + sales manager's salary + shipping expenses + miscellaneous selling expenses
where,
Sales commission = Sales × commission percentage
= $400,000 × 4%
= $16,000
Shipping expenses = Sales × expenses percentage
= $400,000 × 1%
= $4,000
The other expenses amount would remain the same
Now put these values to the above formula
So, the value would equal to
= $16,000 + $190,000 + $4,000 + $10,000
= $220,000
Adam is a 25-year old Millennial who is considered a super-star manager at a technology company. He has been asked to hire a team of IT specialists to launch a new product. While reviewing the stack of applications, he noted only one candidate, Jason, who has work experience of over 20 years. Adam realizes that this candidate is probably his dad's age and he considers his dad outdated, with poor IT skills, and slow to learn new skills. All the other candidates cite 1 to 3 years of work experience after college. Adam decides not to interview Jason. What is the likely basis for Adam's decision?
Answer:
The correct answer would be, Stereotyping is the likely basis for Adam's decision.
Explanation:
Adam is a young adult of age 25. He is a successful manager in a technology firm. He is asked to hire a team of IT specialists. When reviewing the stack of applications for the desired post, he notices only one candidate who has an experience of over 20 years. He realizes that this person is almost the age of his father. And because he considers his father's IT and other learning skills as slow and outdated, he applies the same thinking and concept to that person and decides not to interview that person, just on the basis of his age and his thinking about old people. His thinking that old people are slow in learning and are not aware of the new IT trends and are outdated is called as Stereotyping, which means the image of someone or something based upon some own's assumption.
Answer:
Stereotyping
Explanation:
Since Adam is considered a super-star manager he might suffer from over confidence and he might not actually contemplate others into what he is doing or ask for second opinions, since he is stereotyping Jason inot the category of old and not easy adaptable because that is how his dad is and he thinks that all older people are like that, that is a huge mistake on behalf of Adam, who should know that talent and abilities come in very different packages.
It is election day and 1800 voters vote in their precinct’s library during the 10 hours the polls are open. On average, there are 15 voters in the library and they spend on average 5 minutes in the library to complete their voting. What is the inventory of voters, the flow rate, and the flow time for each voter?
Answer:
Inventory = 15 voters
Flow rate = 3 voters per minute
Flow Time = 5 minutes
Explanation:
Flow rate is defined as the flow of units for each minute, or the minutes or each unit.
Here, number of voters is the units = 1,800 voters
Also provided number of hours = 10
Thus, flow rate shall be: 1,800/10 = 180 voters each hour
Now [tex]\frac{180}{60\ minutes}[/tex] = 3 voters per minute.
Flow time is the average time by each unit, that is time taken for each unit.
Flow time = 5 minutes
Now, that we know what flow rate and flow time is:
Inventory of voters = Flow rate [tex]\times[/tex] Flow time = 3 voters [tex]\times[/tex] 5 minutes = 15 voters.
The inventory (average number of voters at any one time) is 15 voters, the flow rate (average number of voters per hour) is 180 voters per hour, and the flow time (average time spent by each voter) is 5 minutes.
Explanation:In this question, you are looking to find out the inventory of voters, the flow rate, and the flow time for each voter. Let's define these terms first:
Inventory: This is the average number of voters present in the library at any given time.Flow rate: This is the average number of voters that flow through the library per hour.Flow time: This is the average time a voter spends in the library.From the problem, we are provided with the following information:
There are 1800 voters in total for the 10-hour voting window.On average, there are 15 voters in the library at any one time.Each voter spends an average of 5 minutes in the library.Now to calculate the specifications:
The inventory of voters is 15 (given in the question).The flow rate of voters is 1800 voters divided by 10 hours, which gives 180 voters per hour.The flow time for each voter is 5 minutes (also given in the question).Learn more about Flow Rate & Time Calculation here:https://brainly.com/question/29784120
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You recently invested $18,000 of your savings in a security issued by a large company. The security agreement pays you 6 percent per year and has a maturity three years from the day you purchased it. What is the total cash flow you expect to receive from this investment over the next three years?
Answer:
At the end of the three years period, the amount to recieve will be for $7,146.1
Explanation:
18,000 savings at 6% during three years.
we will calcualte the future value of a lump sum:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal 6,000.00
time 3.00
rate 0.06000
[tex]6000 \: (1+ 0.06)^{3} = Amount[/tex]
Amount 7,146.10
The total cash flow expected from a $18,000 security at a 6 percent annual interest over three years is $21,240, combining both the interest earned over the period and the returned principal amount at maturity.
The student is asking about the total cash flow expected from an investment in a security that pays a 6 percent annual interest over a period of three years. To determine the total cash flow, we need to calculate the interest received each year and the principal amount returned at the end of the maturity period.
Calculation of Total Cash Flow
The annual interest can be calculated as $18,000 × 6\% = $1,080. Over three years, the interest payments received will be $1,080 × 3 = $3,240. At the end of the third year, the principal amount of $18,000 will also be returned. Thus, the total cash flow from this investment over three years will be $3,240 (interest) + $18,000 (principal) = $21,240.
Honda Motor Company is considering offering a $ 1 comma 800 rebate on its minivan, lowering the vehicle's price from $ 30 comma 200 to $ 28 comma 400. The marketing group estimates that this rebate will increase sales over the next year from 42 comma 000 to 53 comma 900 vehicles. Suppose Honda's profit margin with the rebate is $ 5 comma 650 per vehicle. If the change in sales is the only consequence of this decision, what are its costs and benefits? Is it a good idea?
Answer:
Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.
Explanation:
Giving the following information:
Honda Motor Company is considering offering an $1800 rebate on its minivan
New price $30200
Old price $28400.
The marketing group estimates that this rebate will increase sales over the next year from 42000 to 53900 vehicles.
Honda's profit margin with the rebate is $5650 per vehicle.
Normal price:
Income= (5650+1800)*42000= $312,900,000
New price:
Income= 5650* 53900= $304,535,000
Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.
Chang, Inc.'s balance sheet shows a stockholders' equity-book value (total common equity) of $750 comma 500. The firm's earnings per share is $3.00, resulting in a price/earnings ratio of 12.25X. There are 50 comma 000 shares of common stock outstanding. What is the price/book ratio? What does this indicate about how shareholders view Chang, Inc.?
Answer:
The price/book ratio is 2.45
This price/book ratio indicates that the Chang, Inc company has 2.45 higher market value of the stock than the book value of the equity
Explanation:
For computing the price/book ratio, we have to apply the formula which is shown below:
= Market price of equity ÷ book value of equity
where,
the market value of equity = firm's earnings per share × price/earnings ratio × number of outstanding common stock shares
= $3.00 × 12.25 × 50,000 shares
= $1,837,500
And, the book value of equity is $750,500
Now put these values to the above formula
So, the answer would be equal to
= $1,837,500 ÷ $750,500
= 2.45
This price/book ratio indicates that the Chang, Inc company has 2.45 higher market value of the stock than the book value of the equity
On January 1, 2018, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of $8,000. On December 31, 2019, the truck was exchanged for a new truck valued at $60,000. Jacob received a trade allowance of $35,000 on the exchange with the remaining $25,000 paid in cash. What amount of gain or loss should Jacob Inc. record on December 31, 2019?
A. Loss, $18,000.
B. Gain, $5,000.
C. Loss, $38,000.
D. Loss, $3,000.
Answer:
option (D) loss, $3,000
Explanation:
Given:
price of the truck = $48,000
estimated residual value = $8,000
Exchange price of the truck = $60,000
Trade allowance = $35,000
Since, straight line depreciation is given, thus,
Total depreciation = [tex]\frac{\textup{48,000−8,000}}{\textup{8}}[/tex]
or
Total depreciation = $5,000 per year
Therefore,
the book value after two years
= Price of truck - total depreciation in two years
or
= $48,000 − ($5,000 × 2 years)
= $38,000
Now,
a trade allowance received ( i.e $35,000 ) is less than the book value
therefore a loss is recorded
The amount of loss = (Book value - trade allowance received)
or
The amount of loss = $38,000 - $35,000 = $3,000
Hence, correct answer is option (D) loss, $3,000
⌛ Plan to spend approximately 30 minutes to complete this activity. The market value of the equity of Ginger, Inc., is $635,000. The balance sheet shows $39,000 in cash and $215,000 in debt, while the income statement has EBIT of $96,400 and a total of $168,000 in depreciation and amortization. What is the enterprise value–EBITDA multiple for this company? The market value of the equity of Ginger, Inc., is $635,000. The balance sheet shows $39,000 in cash and $215,000 in debt, while the income statement has EBIT of $96,400 and a total of $168,000 in depreciation and amortization. What is the enterprise value–EBITDA multiple for this company
Answer:
EBITDA Multiple = 3,067
Explanation:
The EBITDA multiple is a financial ratio that compares a company’s Enterprise Value to its annual EBITDA. This multiple is used to determine the value of a company and compare it to the value of other, similar businesses. The ratio takes a company’s enterprise value (which represents market capitalization plus net debt) and compares it to the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for a given period.
Formula:
EBITDA Multiple = Enterprise Value / EBITDA
To Determine the Enterprise Value and EBITDA:
Enterprise Value = (market capitalization + value of debt + minority interest + preferred shares) – (cash and cash equivalents)
EBITDA = Earnings Before Tax + Interest + Depreciation + Amortization
In this exercise:
Enterprise Value= market value + value of debt - cash= 635000+ 215000 - 39000=$811000
Ebitda= ebit + depreciation and amortization = 96400+168000= $264400
EBITDA Multiple = Enterprise Value / EBITDA=811000/264400=3,067
Cornerstone, Inc. has $125,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods "as is" for $45,000; alternatively, the goods can be cleaned and shipped to the firm's outlet center at a cost of $23,000. There the goods could be sold for $80,000. What alternative is more desirable and what is the relevant cost for that alternative? A. Sell "as is," $125,000. B. Clean and ship to outlet center, $23,000. C. Clean and ship to outlet center, $103,000. D. Clean and ship to outlet center, $148,000. E. Neither alternative is desirable, as both produce a loss for the firm
Answer:
It is better to cleaned and shipped to the firm's outlet center at a cost of $23,000 to be sold at $80,000
Explanation: In alternative A) the firm loss is $80,000 ($125,000-$45,000)
In alternative E) all $125,000 is lost
In alternative B, C and D) the loss is $68,000 ($125,000-$80,000+$23,000)
Relevant costs are those evitable, that are cause of a manager decision related to an specific business decision.
The only cost that can be avoided in these example is the cost of $23,000 so the goods can be cleaned and shipped to the firm's outlet center
To determine the more desirable alternative, we compare costs and revenues for each option. Option B is more desirable with a relevant cost of $23,000. The correct option is B.
Explanation:To determine which alternative is more desirable, we need to compare the costs and revenues associated with each option. Option A is to sell the inventory 'as is' for $45,000. Option B is to clean and ship the goods to the outlet center at a cost of $23,000 and sell them for $80,000.
For option A, the relevant cost is the cost of carrying the inventory, which is $125,000.
For option B, the relevant cost is the cost of cleaning and shipping, which is $23,000.
Comparing the relevant costs, option B is more desirable. The relevant cost for option B is $23,000. The correct option is B.
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Transactions The selected transactions below were completed by Cota Delivery Service during July: Indicate the effect of each transaction on the accounting equation by choosing the appropriate letter from the following list: Increase in an asset, decrease in another asset. Increase in an asset, increase in a liability. Increase in an asset, increase in stockholders' equity. Decrease in an asset, decrease in a liability. Decrease in an asset, decrease in stockholders' equity. 1. Received cash in exchange for common stock, $35,000. c 2. Purchased supplies for cash, $1,100. 3. Paid rent for October, $4,500. b 4. Paid advertising expense, $900. 5. Received cash for providing delivery services, $33,000. 6. Billed customers for delivery services on account, $58,000. 7. Paid creditors on account, $2,900. 8. Received cash from customers on account, $27,500. 9. Determined that the cost of supplies on hand was $300 and $8,600 of supplies had been used during the month. 10. Paid cash dividends, $2,500.
Final answer:
The given transactions impact Cota Delivery Service's accounting equation by affecting its assets, liabilities, and stockholders' equity in various ways, demonstrating basic principles of accounting.
Explanation:
The question involves understanding the effect of various transactions on the accounting equation. It asks for indicating how each transaction affects the accounting elements such as assets, liabilities, and stockholders' equity. Here are the effects of the given transactions:
1. Received cash in exchange for common stock, $35,000. - Increase in an asset, increase in stockholders' equity.2. Purchased supplies for cash, $1,100. - Increase in an asset, decrease in another asset.3. Paid rent for October, $4,500. - Decrease in an asset, decrease in stockholders' equity.4. Paid advertising expense, $900. - Decrease in an asset, decrease in stockholders' equity.5. Received cash for providing delivery services, $33,000. - Increase in an asset, increase in stockholders' equity.6. Billed customers for delivery services on account, $58,000. - Increase in an asset, increase in stockholders' equity.7. Paid creditors on account, $2,900. - Decrease in an asset, decrease in a liability.8. Received cash from customers on account, $27,500. - Increase in an asset, decrease in another asset.9. Determined that the cost of supplies on hand was $300 and $8,600 of supplies had been used during the month. - Decrease in an asset, decrease in stockholders' equity (expense recognition).10. Paid cash dividends, $2,500. - Decrease in an asset, decrease in stockholders' equity.
Saying "the marginal costs are greater than the marginal benefits" is the same as saying the average costs are greater than the average benefits. the total costs are greater than the average benefits. the benefits are greater than the costs. the additional costs are greater than the additional benefits. the costs minus the benefits equal the net costs.
Answer: Saying "the marginal costs are greater than the marginal benefits" is the same as saying "the additional costs are greater than the additional benefits."
Explanation: Marginal benefit refers to the benefit, which the company receives for the production of an additional unit of a good or service.
Therefore a marginal cost is that incurred by a person for the production of an additional unit of a good or service.
A fruit grower estimates that if he harvests his crop of oranges now, he will get 100 pounds per tree, which he can sell for $.25 per pound. For each week he waits, he estimates that the crop will increase by 10 lb. per tree, but the price will decrease by $.01 per week. When should he pick the oranges to obtain the maximum profit? What would his profit be at this time?
Answer:
At 7.5 weeks will bethe best time
it will yield a profit of 30.63 per tree
Explanation:
we will construct the formula:
p = 0.25 -0.01w
q = 100 + 10w
Now, using SOLVER we can determinate the maximum profit point at 7.5 weeks
we construct these formula in excel, we stablish we can change only the "w" and it will look for the answer.
Now we can determinate the profit at this point:
P = 0.25 - 0.01 ( 7.5) = 0.175
Q = 100 x 10 (7.5) = 175
175 x 0.175 = 30.625 = 30.63
The fruit grower should wait 125 weeks to harvest his oranges. At this time, his profit will be maximum, earning him $687.50.
Explanation:In this scenario, we can calculate the profit, P, for any given week, w, with the following equation: P=(100+10w)*($.25-$.01w). The aim is to maximize this function. We could do this by taking the derivative of P with respect to w, setting this equal to zero, and solving for w. However, as this is a quadratic function, it is easier to just find the vertex of the parabola by using the formula -b/(2a) to find the x-coordinate. Here, a = -$.01, b = $2.5. Hence, w = -2.5/.02 = 125 weeks is when he should harvest his oranges to maximize profit. We can now substitute w into the equation for P to find the maximum profit. P=(100+10*125)*($.25-$.01*125) = $687.50.
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When the store hires two workers, they are able to serve 16 customers per hour. When the store hires three workers they are able to serve 22 customers per hour. Each customer spends an average of $4 in the store. What is the marginal benefit of hiring the third worker? Enter a whole number, with no dollar sign.
Answer: $24
Explanation:
Given that,
Two workers serve = 16 customers per hour
Three workers serve = 22 customers per hour
Each customer spends an average of $4 in the store.
Total revenue from Two workers = 16 × $4
= $64
Total revenue from Three workers = 22 × $4
= $88
Therefore, the marginal benefit of hiring the third worker would be:
= Total revenue from Three workers - Total revenue from Two workers
= $88 - $64
= $24
Exercise 4-4A Recording inventory transactions in the general journal and posting entries to T-accounts: Perpetual system LO 4-1 Milo Clothing experienced the following events during 2016, its first year of operation: 1. Acquired $12,000 cash from the issue of common stock. 2. Purchased inventory for $5,600 cash. 3. Sold inventory costing $3,360 for $5,712 cash. 4. Paid $650 for advertising expense. Required a. Record the general journal entries for the preceding transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Required a. Record the general journal entries for the preceding transactions:
cash 12,000 debit
common stock 12,000 credit
--to record issuance of stocks --
inventory 5,600 debit
cash 5,600 credit
-- to record purhcase of inventory--
cash 5,712 debit
sales revenue 5,712 credit
COGS 3,360 debit
Invenotry 3,360 credit
--to record sale and subsequent cost--
advertizing expense 650 debit
cash 650 credit
Explanation:
We will post baed on the accounting principles:
debit = creidt
1)we debit cash and credit how we obtain the cash
2) we debit inventory and credit cash which is how we acquire the inventory (if it was o naccount it will be account payable)
3) we recognize the gain and the cash which was obtain for it.
also we recognize the expenses, which are the cost of the goods used so decrease inventory
4) we recognize the expense and decrease the cash used to pay for it.
General journal entries for Milo Clothing are provided for its first year of operation transactions under a perpetual inventory system. Additionally, the self-check question on accounting profit is answered, detailing the calculations for determining the profit after subtracting explicit costs from total revenue.
Explanation:Journal Entries and Accounting ProfitFor Milo Clothing's transactions using a perpetual inventory system, the general journal entries would be as follows:
Debit Cash $12,000, Credit Common Stock $12,000 (to record the issuance of common stock for cash).Debit Inventory $5,600, Credit Cash $5,600 (to record the purchase of inventory for cash).Debit Cash $5,712, Credit Sales Revenue $5,712 (to record the sales revenue from inventory sold for cash). Furthermore, Debit Cost of Goods Sold $3,360, Credit Inventory $3,360 (to record the cost of inventory that was sold).Debit Advertising Expense $650, Credit Cash $650 (to record the payment for advertising expense).Regarding the self-check question on accounting profit, if a firm had total revenues of $1,000,000 and explicit costs including $600,000 on labor, $150,000 on capital, and $200,000 on materials, the firm's accounting profit would be calculated as follows:
Accounting Profit = Total Revenues - Explicit Costs = $1,000,000 - ($600,000 + $150,000 + $200,000) = $1,000,000 - $950,000 = $50,000.
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Stimpleton Company engages in the following cash payments:
Purchase equipment $4,000
Pay rent 700
Repay loan to the bank 5,900
Pay workers' salaries 1,050
What is the total amount of cash paid for operating activities?
A.$1,750
B.$4,000
C.$6,950
D.$9,900
Answer: Option A
Explanation: Operating activities refers to those activities which are directly related to the core operations of the business. Such transactions are important for running the business and recorded at the top in cash flow statements.
Thus, only payment of rent and workers salary will be considered operating activities and the company will be having total of $1750 of cash outflow.
Hence the correct option is A.
Identify each of the following accounts of Dispatch Services Co. as asset, liability, owner's equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit: Item Type of Account Debit or Credit a. Accounts Payable Asset b. Accounts Receivable c. Ashley Griffin, Capital d. Ashley Griffin, Drawing e. Cash f. Fees Earned g. Office Equipment h. Rent Expense i. Supplies j. Wages Expense
Answer:
Explanation:
In this question, we apply the golden rule of accounting. There are three accounts which are dealing in it
Real account - It deals with the assets, liabilities, and equity side of the balance sheet
Nominal account - It deals with the expenses, losses and income and gains
Personal account - It deals with the person's needs like - for debtors, creditors, suppliers, etc
a. Account payable - liability - credit side.
b. Account receivables - an asset - debit side
c. Ashley Griffin, capital - owner equity - credit side
d. Ashley Griffin, Drawing - owner equity - debit side
e. Cash - an asset - debit side
f. Fees Earned - revenue - credit side
g. Office Equipment - an asset - debit side
h. Rent Expense - expense - debit side
i. Supplies - asset - debit side
j. Wages Expense - expense - debit side
Accounts of Dispatch Services range across different types including liabilities, assets, owner's equity, revenue, and expenses, each of them carrying a normal balance either as a debit or a credit.
Explanation:The accounts of Dispatch Services Co can be classified as follows: a. Accounts Payable (Liability, Credit), b. Accounts Receivable (Asset, Debit), c. Ashley Griffin, Capital (Owner's Equity, Credit), d. Ashley Griffin, Drawing (Owner's Equity, Debit), e. Cash (Asset, Debit), f. Fees Earned (Revenue, Credit), g. Office Equipment (Asset, Debit), h. Rent Expense (Expense, Debit), i. Supplies (Asset, Debit), j. Wages Expense (Expense, Debit). These classifications help in understanding the entire financial health of the Ashley's Dispatch Services company.
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