Answer:
utilities payable 230
cash 230
to record payment of November bill
Computer 9,800
Cash 400
Account payable 9,400
to record purchase of computers
Explanation:
we will credit cash for the amount paid to cancel the tlephone invoice.
We will write-off the payable recognize in Novemeber when the invoice was received.
We will debit the acquired assets (computer)
credit the amount of cash given
and then credit the remainder to recognize the obligation to pay these computers in the near future.
Which of the following statements are true with regards to asset accounts? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Assets are on the left-side of the accounting equation. unanswered Assets are on the right-side of the accounting equation. unanswered Assets are increased with debits. unanswered Assets are increased with credits. unanswered Assets are decreased with debits. unanswered Assets are decreased with credits. unanswered
Answer:
True Statements are as follows:
Assets are on the left-side of the accounting equation.
As the accounting equation is as follows:
Assets = Liabilities + Stockholder's Equity.
Assets are increased with debits.
All the assets have debit balance and therefore, it increases with debit balance and decreases with credit balance.
Assets are decreased with credits.
As assets have debit balance, it increases with a debit and decreases with each credit, as for example with depreciation balance of fixed assets are decreased.
The correct statements about Assets are:
Assets are on the left-side of the accounting equation.Assets are increased with debits.Assets are decreased with credits.Therefore, options, A, C, and F are correct.
Assets encompass a diverse spectrum of tangible and intangible resources held by individuals, businesses, or entities, serving as the bedrock of economic value. These encompass physical properties such as cash, real estate, and machinery, along with intangibles like patents and goodwill.
Assets embody economic potential, capable of generating future benefits or yielding financial returns. Their classification as current or non-current aids in gauging liquidity and long-term viability.
In the intricate mosaic of financial analysis, assets represent the building blocks (Assets = Liabilities + Equity) upon which financial health, investment decisions, and economic prosperity are intricately woven.
Therefore, options, A, C, and F are correct.
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JWS Transport Company’s employees earn vacation time at the rate of 1 hour per 30-hour work period. The vacation pay vests immediately (that is, an employee is entitled to the pay even if employment terminates). During 2018, total wages paid to employees equaled $415,000, including $5,500 for vacations actually taken in 2018 but not including vacations related to 2018 that will be taken in 2019. All vacations earned before 2018 were taken before January 1, 2018. No accrual entries have been made for the vacations. No overtime premium and no bonuses were paid during the period. Required:Prepare the appropriate adjusting entry for vacations earned but not taken in 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Wage Expense ............ $8,150 Dr
Liability ..................................................... $8,150 Cr
Explanation:
If employees earn 1 hour of vacation per 30 hours of work, then vacation earned in 2018 would be 1/30 of wages, that is
($415,000 - $5,500) x 1/30 = $409,500 x 1/30 = $13,650
Of that amount, $5,500 has been paid so
$13,650 - $5,500 = $8,150
The appropriate adjusting entry for vacations earned but not taken in 2018 is
Wage Expense ............ $8,150 Dr
Liability ..................................................... $8,150 Cr
Hope this helps!
To prepare the appropriate adjusting entry for vacations earned but not taken in 2018, calculate the number of vacation hours earned but not taken based on the information provided. Then, prepare the adjusting entry by debiting the Vacation Expense account and crediting the Vacation Pay Liability account.
Explanation:In order to prepare the appropriate adjusting entry for vacations earned but not taken in 2018, you need to calculate the number of vacation hours earned but not taken in 2018 based on the information provided. The employees earn vacation time at the rate of 1 hour per 30-hour work period. Therefore, you need to divide the total wages paid to employees in 2018 ($415,000) by the hourly wage rate ($415,000 / $2.13) to determine the total number of work hours. Then, divide the total work hours by 30 to find the number of vacation hours earned but not taken. Finally, you can prepare the adjusting entry by debiting the Vacation Expense account and crediting the Vacation Pay Liability account for the amount of vacation pay earned but not taken in 2018.
Marcie frequently requests meetings between her team and counterparts in Portland. She often spots issues that will affect both groups and wants to work openly on coordination so there are no surprises for anyone. Marci plays a ______ role for her team.-maintenance-leadership-task-cohesiveness-relationship
Answer:
leadership role
Explanation:
Leadership -
It is the action of the leading people of the organization for achieving goals .
The leaders influence and motivates and build up the morale of the other employees to attain a goal and success .
In the question , Marcie plays a role of a Team Leader , and motivates her team to work hard for the organization .
Andrew, a poor college student, drinks coffee late at night. He has no income and is buying cheap coffee, such as Beanlightened, that he grinds and then brews. The coffee tastes bad but its enough caffeine. He goes to Starbucks occasionally. After he graduates, he gets a job at a database firm as a prgrammer. His income is $75,000 a year. He ends up buying coffee daily at SB. This helps him get a Gold Star Reward Card, which allows him to get free refills. In economic terms, SB coffee is a(n) ____, while Beanlightened coffee is a(n) _____.
Andrew's demand for SB changed as a result of....
Answer:
According to the situation,
Starbucks coffee is a normal good and Bean-lightened coffee is an inferior good.
A normal good refers to a good whose demand is directly related with the income of an individual. So, an increase in the income of an individual will results in more demand for normal good.
A inferior good refers to a good whose demand is inversely related with the level of income of an individual. So, an increase in the income of an individual will results in less demand for inferior good.
Therefore, when Andrew was a college student, there is no income sources, so he prefer to drink Bean-lightened coffee that is an inferior good. But once he started earning then he prefer Starbucks coffee that is a normal good.
Hence, Andrew's demand for SB changed as a result of Increase in income.
Which of the following is NOT one of the strategies incorporated in the Sarbanes-Oxley Act of 2002?
(A) Establish compliance programs
(B) Establish ethics programs
(C) Dictate maximum compensation levels
(D) Attain greater board independence
Answer: Option (C) is correct.
Explanation:
Sarbanes-Oxley Act was ratified under the assumption that it will bring down organization fraud. It is also responsible for creation of PCAOB also known as Public Company Accounting Oversight Board which was created to oversee accounting industry. It also denied organization loans to executive and also gave employment protection to so called whistle-blowers. This Act is thoroughly responsible for strengthening independence and the financial literacy of organizations boards.
Johnny Appleseed Brewing Company (JABC) has a quick ratio of 2.00; $38,250 in cash; $21,250 in accounts receivable; some inventory; total current assets of $85,000; and total current liabilities of $29,750. In its most recent annual report, JABC reported annual sales of $100,000 and a cost of goods sold equal to 65% of annual sales. How many times is Johnny Appleseed Brewing Company (JABC) selling and replacing its inventory? 0.35x 2.805x 3.92x 2.55x
Final answer:
Henry's accounting profits would be $55,000, while his economic profits would be $38,000 after considering opportunity costs. He should open the microbrewery as the economic profit is positive. The indifference rate of return is 38%, making the microbrewery a favorable investment compared to a 7% return on savings.
Explanation:
Accounting profits are the net income of a business, calculated as total revenues minus explicit costs. In Henry's case, accounting profits can be calculated by subtracting all costs from the total sales revenues. If we consider his salary as part of his costs, the accounting profit would be:
Total Sales Revenue: $55,000 (surplus) + $40,000 (salary) = $95,000
Accounting Profits: $95,000 total revenue - $40,000 salary = $55,000
Calculation of Economic Profits
Economic profits take into account both explicit and implicit costs. Implicit costs include the opportunity cost of the owner's investment and forgone salary. To calculate the economic profits, subtract the opportunity cost of the savings and the forgone salary from Henry's accounting profits.
Opportunity Cost of Savings: 7% of $100,000 = $7,000
Forgone Salary: $50,000 - $40,000 = $10,000
Economic Profits: $55,000 - $7,000 - $10,000 = $38,000
Decision on Opening the Microbrewery
To determine if Henry should open the microbrewery, we compare his economic profit to his current situation. If the economic profit is positive, it indicates that he's better off opening the microbrewery compared to his current job. In this case, Henry's economic profit is $38,000, which is positive, suggesting that it would be beneficial for him to open the microbrewery.
Indifference Rate of Return
To find the rate of return that would make Henry indifferent between opening the microbrewery and not, we need to find the rate at which the opportunity cost of his savings equals the economic profit estimated from the microbrewery.
Indifference Rate of Return: Economic profit / Investment = $38,000 / $100,000 = 38%.
This rate is substantially higher than the current 7%, suggesting that at any rate below 38%, the microbrewery would be the more attractive option.
Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a 6% interest rate to invest in the stock market. You invest the entire $20,000 in an exchange-traded fund (ETF) with a 12% expected return and a 20% volatility. The volatility of your investment is closest to:
Answer:
0.40
Explanation:
(2) SD( Rxp) = βSD(Rp)= 2(0.20) = 0.40
A cable company spends, on average, $ 600 to acquire a customer. Annual maintenance costs per customer are $ 45. Annual record-keeping and billing costs are $ 30 per customer. While the price of the basic service to customers is $ 30/month, 40% of customers buys the premium package at $ j50/month and 10% buy the superpremium package at $ 80/month. Over time, 80% of all customers remains with the company in the long run. The firm uses a discount rate of 8%. What is the average CLV for all customers?
Answer:
Average customer life value
CLV = 1260
Explanation:
[tex]Gross Margin \times\frac{retention}{1+discount-retention} )= CLV[/tex]
Fis, we will calcualteteh gross margin.
For that we need the revenue:
We will calculate the average revenue per year:
50% 30 dollars per month = 180
40% 50 dollars per month = 240
10% 80 dollars per month = 96
average annual revenue per customer: 516
now we ill calcualte the gross margin:
revenue 516
maintenance (45)
administrative (30)
gross margin 441
[tex]441 \times\frac{0.8}{1+0.08-0.80} )= CLV[/tex]
CLV = 1260
The labor force is comprised of those who are working for any number of hours (the employed) and those who are out of work but actively looking for a job (the unemployed). Calculate the size of the labor force. The size of the adult population is 30,000. The number working is 17,700 and the number of unemployed actively looking for work is 1,600. a. Labor Force: people A commonly reported labor statistic is the Labor Force Participation Rate 'LFPR':
Answer:
Labor force 19,300
Labor Force participation Rate: 64.33%
Explanation:
working population 17,700
unemployed actively looking for work 1,600
Total Labor Force 19,300
Labor Force Participation Rate (LFPR):
It is the quotient between the Labor force and the total number of people eligible for a job
19,300/30,000 = 0.6433 = 64.33%
This will be the percentage of the population over 16 year which, are actively looking for a job or are already hired in one.
B Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 4,000 units in its beginning work in process inventory. An additional 66,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 28,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?
Answer:
W-A equivalent units for conversion cost: 58,800
Explanation:
Under weighted average we will calculate equivalent untis as follows:
the complete units + completion in ending WIP
Calculations for complete units:
beginning WIP: 4, 000
transferred-in: 66, 000
Total 70, 000
Ending WIP (28,000)
Complete units 42,000
Calculation for completion of WIP
ending WIP x percentage of completion
28,000 x 60% = 16,800
Equivalent units
42,000 + 16,800 = 58,800
Which of the following is an example of physical capital?
a. bulldozers, backhoes and other construction equipment
b. a taxi-cab driver's knowledge of the fastest routes to take
c. the available knowledge on how to make semiconductors
d. All of the above are correct.
A track dozer cost $165,500 to purchase. Fuel, oil, grease, and minor maintenance are estimated to cost $35.00 per operating hour. A major engine repair costing $26,000 will probably be required after 7,200 hr of use. The expected resale price (salvage value) is 21% of the original purchase price. The machine is expected to have a useful life of 10,800 hr. How much should the owner of the machine charge per hour of use, if it is expected that the machine will operate 1,800 hr per year? The company's cost- of-capital rate is 7.3%.
Answer:
It will charge 54.22 per hour to obtain a yield of 7.3% on the track dozer.
Explanation:
purchase cost 165,500
repair costing 26,000 at year 4
annual cost: 1,800 x 35 = 63,000
salvage value at end of useful life:
21% of purchase cost :
21% of 165,500 = 34,755
We will calculate the present value of the salvage value and the overhaul, to know how much does the company need to generate per year:
165,000 + pv of overhaul + pv of salvage value = present value of the cash inflow
pv of the overhaul
[tex]\frac{overhaul}{(1 + rate)^{time} } = PV[/tex]
overhaul: 26,000
time 4
rate 0.073
[tex]\frac{26000}{(1 + 0.073)^{4} } = PV[/tex]
PV $19,614.3744
Then, the PV of the salvage value:
[tex]\frac{salvage}{(1 + rate)^{time} } = PV[/tex]
salvage 34,755
time 6
rate 0.073
[tex]\frac{34755}{(1 + 0.073)^{6} } = PV[/tex]
PV $22,772.9326
165,500 + 19,614.3744-22,772.9326 = 163,341.4418
The present value of the contribution per hour at 7.3% discount rate should equal this amount
So we will set up the formula for the cuota of an annuity:
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV $163,341.44
time 6
rate 0.073
[tex]-34586.3538411519 \div \frac{1-(1+0.073)^{-6} }{0.073} = PV\\[/tex]
C 34,586.35
The contribution per year should be 34,586.35
each hour contribution should be: 34,586.35/1,800 = 19.2146
After the operating cost it should net 19.2146
hourly rate - 35 = 19.2146
hourly rate = 19.2146 + 35 = 54.2146 = 54.22
The owner of the track dozer should charge about $49.5 per hour to cover all associated costs and maintain the company's cost of capital rate of 7.3%.
Explanation:First, you need to calculate the total costs associated with the dozer over its expected life. The initial cost is $165,500. The ongoing costs are $35/hour for 10,800 hours, which equals $378,000. Now, the major maintenance cost of $26,000 should be included. So, the total cost at this point is $569,500 ($165,500 + $378,000 + $26,000).
However, at the end of its life, expect to be able to sell (salvage) the dozer for 21% of its original value, which is $34,755. So, subtract the salvage value from the total costs, producing a figure of $534,745. The owner needs to recover this cost over the life of the dozer.
The machine is expected to operate 1,800 hr per year. Then, divide the total cost ($534,745) by the total number of operating hours (10,800 hours). Thus, the owner should charge about $49.5 per hour to cover the total costs and maintain the company's cost of capital rate of 7.3%.
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The stated purposed of NAFTA is to A. gain membership in the WTO. B. reduce the outsourcing of jobs to foreign countries. C. phase out all trade and tariff barriers among Canada, Mexico, and the U.S. D. increase product innovation in the wireless communication sector.
Answer:
C. phase out all trade and tariff barriers among Canada, Mexico, and the U.S
Explanation:
The North American Free Trade Agreement (NAFTA)
This agreement creates a bloc of trade for the region, Canada, Mexico and the US.
As state on "C" It result in the elimination or reduction of barriers to trade and investment between the countries.
It will be replaced in the following year by the United States–Mexico–Canada Agreement (USMCA)
But NAFTA will keep working until this new agreement is finished.
For each account, identify whether the changes would be recorded as a debit (DR) or credit (CR). a. Increase to Accounts Receivable b. Decrease to Unearned Revenue c. Decrease to Cash d. Increase to Interest Expense e. Increase to Salaries Payable f. Decrease to Prepaid Rent g. Increase to Proudfoot, Capital h. Increase to Notes Receivable i. Decrease to Accounts Payable j. Increase to Interest Revenue
Answer:
(a) DR ,(b) DR ,(c) CR ,(d) DR, (e) CR, (f) CR, (g) CR, (h) DR ,(i) DR, (j) CR
Explanation:
(a) DR-This is an increase in current asset.
(b) DR-This is a decrease in deferred income i.e currently a liability.
(c) CR -This is an outflow of cash
(d) DR-
(e) CR-This represents increase in current liabilities.
(f) CR-Prepaid rent is a current asset item. This represents decrease in current assets.
(g) CR-
(h) DR-Notes Receivable is a current asset item. Increase represents increase in current asset.
(i) DR-Account payable is a current liability item.This represents decrease in current liability.
(j) CR-Interest revenue is an income item. This represents increase increase in income
In accounting, increases in Accounts Receivable, Unearned Revenue, Interest Expense, Prepaid Rent, Notes Receivable and Accounts Payable are recorded as debits (DR), while decreases in Cash, Salaries Payable, Proudfoot, Capital, and increases in Interest Revenue are recorded as credits (CR).
Explanation:In the field of accounting, certain rules are followed while recording changes in different accounts. These changes are usually recorded in the form of debits (DR) and credits (CR).
a. An increase to Accounts Receivable would be a Debit (DR).
b. A decrease to Unearned Revenue would be a Debit (DR).
c. A decrease to Cash would be a Credit (CR).
d. An increase to Interest Expense would be a Debit (DR).
e. An increase to Salaries Payable would be a Credit (CR).
f. A decrease to Prepaid Rent would be a Debit (DR).
g. An increase to Proudfoot, Capital would be a Credit (CR).
h. An increase to Notes Receivable would be a Debit (DR).
i. A decrease to Accounts Payable would be a Debit (DR).
j. An increase to Interest Revenue would be a Credit (CR).
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Which of the following statements is true? Free trade causes contraction of the export-oriented sector. Free trade causes contraction in the import-competing sector. Free trade restricts consumption choices of the domestic consumers. All the domestic producers benefit when a country engages in free trade.
Answer:
The correct answer is: Free trade causes contraction in the import-competing sector.
Explanation:
Free trade implies no or very low restrictions on trade between countries. These restrictions may be tariffs, quotas, permits, licenses, etc.
Free trade means that foreign producers will be able to sell their products in the domestic market easily. So it will increase competition in the sector that is competing with foreign producers. Or in other words, we can say that it will lead to a contraction in the import-competing sector.
This happens because domestic producers have to face competition from foreign producers. We are aware that a country exports the good it specializes in producing. So obviously foreign producers specialize in that product. This will lead to a contraction in the domestic market for the good.
Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Addison deposited $1,000 in a savings account at her bank. Her account will earn an annual simple interest rate of 5.8%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 9 years?
Answer:
FV= $1661
Explanation:
Giving the following information we need to calculate the money at the final:
PV= $1000
i=0,058
n=9 years.
We need to use the following formula:
FV= PV*[(1+i)^n]
In this exercise:
FV= 1000*[(1+0,058)^9]
FV= $1661
At the end of year 9, she will have $1661
Lori borrows 10,000 for 10 years at an annual e ective interest rate of 9%. At the end of each year, she pays the interest on the loan and deposits the level amount necessary to repay the principal to a sinking fund earning an annual e ective interest rate of 8%. The total payments made by Lori over the 10-year period is X: Calculate X:
Answer: $15,903
Explanation:
Given that,
Lori borrows = 10,000
Time period = 10 years
Interest rate = 9%
Sinking fund (Interest rate) = 8%
Two payments are involved;
(i) the interest payment on the loan
(ii) the payment to the sinking fund
Annual interest payment = 10000 × 9%
= $900
Payment to the sinking fund:
Amount to be accumulated by the end of the 10th year along with interest = $10000
Amount to be deposited at the end of each year:
= [tex]10,000\times\frac{0.08}{(1.08^{10}-1) }[/tex]
= $690.29
Total payment per annum = $1,590.29
Total payment for the 10 year period = 1590.29 × 10
= $15,903
How should a "gain" from the sale of treasury stock be reflected when using the cost method of recording treasury stock transactions?
a. As ordinary earnings shown on the income statement.
b. As paid-in capital from treasury stock transactions.
c. As an increase in the amount shown for common stock.
d. As an extraordinary item shown on the income statement.
Answer:
b. As paid-in capital from treasury stock transactions.
Explanation:
No gain is recognize when selling stock, as this represent contribution to the company from the stockholders. This is not a gain for the company is just a contribution.
The treasury stock will be write-off, cash will be debited for the amount received and then, any difference will be settle by debiting or crediting the paid-in capital from Treasury Stock.
Woodcarving Co. incurred the following costs during May: Conversion costs $ 476,500 Prime costs 403,750 Manufacturing overhead 320,500 What was the amount of direct materials and direct labor used in May? Direct materials Direct labor A. $ 111,000 $ 292,750 B. $ 116,000 $ 209,500 C. $ 247,750 $ 156,000 D. $ 81,000 $ 86,000
Answer:
The correct answer is C
Explanation:
With the following information, we need to calculate the direct materials and direct labor:
Woodcarving Co. incurred the following costs during May:
Conversion costs $ 476,500
Prime costs 403,750
Manufacturing overhead 320,500
We know that:
Conversion cost= direct labor + Manufacturing overhead
476500= direct labor + 320500
direct labor= $156000
Prime costs= direct materials + direct labor
403750= direct materials + 156000
direct labor= $247750
Final answer:
The amount of direct materials used by Woodcarving Co. in May was $247,750, and the amount of direct labor was $156,000. These were calculated by using the given prime costs and conversion costs, and deducting the value of manufacturing overhead.
Explanation:
The question asks to find the amount of direct materials and direct labor used by Woodcarving Co. in May, given the costs of conversion, prime, and manufacturing overhead. To find these amounts, we need to understand that prime costs consist of direct materials plus direct labor, and conversion costs consist of direct labor plus manufacturing overhead.
If we denote direct materials as DM, direct labor as DL, and manufacturing overhead as MO, then we have the following relationships:
Prime costs (PC) = DM + DLConversion costs (CC) = DL + MOManufacturing Overhead (MO) is given as $320,500Using the provided numbers:
PC = $403,750CC = $476,500MO = $320,500We can calculate direct labor (DL) by rearranging the conversion costs equation:
DL = CC - MO
DL = $476,500 - $320,500
DL = $156,000
Now plug in the value of DL into the prime costs equation to find DM:
DM = PC - DL
DM = $403,750 - $156,000
DM = $247,750
So, the amount of direct materials used in May was $247,750 and the amount of direct labor was $156,000.
The Computer Store had the following revenue and expenses during the month ended July 31. Fees for computer repairs $ 41,600 Advertising expense 5,700 Salaries expense 18,500 Telephone expense 850 Fees for printer repairs 5,950 Utilities expense 1,300 Did the firm earn a net income or incur a net loss for the period? What was the amount?
The firm earned a net income of $21,200 for the period.
Explanation:The firm earned a net income for the period. To determine the net income, we need to calculate the total revenue and total expenses. The total revenue is obtained by adding the fees for computer repairs and fees for printer repairs, which gives us -
= $41,600 + $5,950
= $47,550.
The total expenses are obtained by adding the advertising expense, salaries expense, telephone expense, and utility expense, which gives us -
$5,700 + $18,500 + $850 + $1,300 = $26,350.
Net income is calculated by subtracting total expenses from total revenue, so -
= $47,550 - $26,350
= $21,200.
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Blossom Company's accounting records show the following for the year ending on December 31, 2017.
Purchase Discounts $ 11000
Freight-in 15300
Purchases 689020
Beginning Inventory 55000
Ending Inventory 45600
Purchase Returns and Allowances 15100
Using the periodic system, the cost of goods purchased is
Answer: $678,220
Explanation:
Given that,
Purchase Discounts = $ 11,000
Freight-in = $15,300
Purchases = $689,020
Beginning Inventory = $55,000
Ending Inventory = $45,600
Purchase Returns and Allowances = $15,100
Cost of goods purchased:
= Purchases + Freight in - Purchase discounts - Purchase returns and allowances
= $689,020 + $15,300 - $ 11,000 - $15,100
= $678,220
The cost of goods purchased can be calculated by adding the beginning inventory to the purchases and then subtracting the ending inventory.
Explanation:In the periodic system, the cost of goods purchased can be calculated by adding the beginning inventory to the purchases and then subtracting the ending inventory. So, the formula to calculate the cost of goods purchased is:
Cost of Goods Purchased = Beginning Inventory + Purchases - Ending Inventory
Using the given information:
Plug in the values into the formula:
Cost of Goods Purchased = $55,000 + $689,020 - $45,600 = $698,420
Therefore, the cost of goods purchased is $698,420.
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You want to endow a scholarship that will pay $ 11 comma 000 per year forever, starting one year from now. If the school's endowment discount rate is 9 %, what amount must you donate to endow the scholarship? How would your answer change if you endow it now, but it makes the first award to a student 10 years from today?
Answer:
You must donate $ 123455.5556 to endow the scholarship.
If the endow it now but it makes the first award to a student 10 years from today, then the amount to donate will be $ 56842.36731.
Explanation:
if the scholarship one year from now, the donation amount would be:
present fund amount = (scholarship amount)/(discount rate)
= $11,000/9%
= $ 123455.5556
Therefore, you must donate $ 123455.5556 to endow the scholarship.
if the scholarship start in 10 years from today, the amount is:
scholarship amount in 10 years = (amount of scholarship today)/[(1+9%)^9]
= $ 123455.5556/(1+9%)^9
= $ 56842.36731
Therefore, if the endow it now but it makes the first award to a student 10 years from today, then the amount to donate will be $ 56842.36731.
Inventory records for Dunbar Incorporated revealed the following:
Date Transaction Number of Units Unit Cost
Apr. 1 Beginning inventory 410 $2.33
Apr. 20 Purchase 380 2.74
Dunbar sold 640 units of inventory during the month. Ending inventory assuming FIFO would be (Do not round your intermediate calculations. Round your answer to the nearest dollar amount):
A. $349.
B. $955.
C. $411.
D. $1,123.
Answer:
Ending inventory assuming FIFO would be $411
Explanation:
Date Q U.cost Cost Sold Inventory Cost
april 1 410 2,33 955,3 410 0 0
apri 20 380 2,74 1041,2 230 150 411
640
he cost for producing a certain product is $37 each. The fixed costs are $70,000. The selling price for each product is $72. 1. What is the revenue function? a. R(x) = 37x – 70,000 b. R(x) = 37x c. R(x) = 72x + 70,000 d. R(x) = 72x – 70,000 e. R(x) = 72x 2. What is the profit function? a. P(x) = 72x – 70,000 b. P(x) = 35x – 70,000 c. P(x) = 37x + 70,000 d. P(x) = 35x + 70,000 e. P(x) = 72x + 70,000 . 3. What is the break-even quantity? a. 2,500 b. 4,800 c. 1,846 d. 2,000 e. 4,500 4. What is the break-even point
Answer:
Instructions are listed below
Explanation:
Giving the following information:
The Variable unitary cost= $37 each.
The fixed costs are $70,000.
The selling price for each product is $72.
1) revenue function= P*X
Revenue function= 72*x
Option E
2) Profit function= (P-Vc)*X-Fc
Profit function= 35*x-70000
Option B
3) break-even quantity= fixed costs/contribution margin
break-even quantity= 70000/35= 2000 units
Option D
4) break-even point ($)=fixed costs/contribution margin ratio
Contribution margin ratio= contribution margin/P= 0,49
break-even point ($)=70000/0,4861111= $144000
The revenue function is R(x) = 72x, the profit function is P(x) = (72x - 70,000) - (37x), the break-even quantity is 2,000 units, and the break-even point is $144,000.
Explanation:1. What is the revenue function?
The revenue function can be calculated by multiplying the selling price per product by the quantity sold. In this case, the selling price is $72, so the revenue function is R(x) = 72x, where x represents the quantity sold.
2. What is the profit function?
The profit function is calculated by subtracting the total cost from the total revenue. The total cost includes both the fixed cost and the variable cost per product. In this case, the profit function is P(x) = (72x - 70,000) - (37x).
3. What is the break-even quantity?
The break-even quantity is the point at which the total revenue equals the total cost, resulting in zero profit. To calculate the break-even quantity, set the profit function equal to zero and solve for x. In this case, the break-even quantity is 2,000 units.
4. What is the break-even point?
The break-even point is the value of total revenue and total cost at the break-even quantity. At this point, the firm is neither making a profit nor incurring a loss. In this case, the break-even point is $144,000.
Bella is 23 years old and wants to invest money for her retirement. She wants to have $2,000,000 saved up when she retires at age 65. a) If she can earn 10% per year in an equity mutual fund, calculate the amount of money she would have to invest in equal annual amounts to achieve her retirement goal. be) Alternatively, how much would she have to invest in equal monthly amounts starting at the end of the current year or month respectively. c) Looking at these numbers, most people would think this is affordable. Why do you think most Americans are not saving for their retirement
Answer:
A) If Bella contributes 3,719.98 per year during 42 years it will get 2,000,000
B) 258.25 if the payment are monthly
C) Because, the retirement is a long-run reward while spending the income in the younger years may be seens as better deal for most americans n my humble opinion.
Explanation:
we will calculate which annuity will equal a future value 2,000,000 at 10% in the period of time from 23 years to 65 years:
[tex]FV \div \frac{(1+r)^{time} -1}{rate} = C\\[/tex]
PV $2,000,000.00
time 42 (65 years - 23 years )
rate 10% = 10/100 = 0.1
[tex]2000000 \times \frac{(1+0.1)^{42} -1}{0.1} = C\\[/tex]
C $ 3,719.98
If Bella contributes 3,719.98 per year during 42 years it will get 2,000,000
IF the payment are monthly, we will increase time and adjust the rate:
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV $2,000,000.00
time 504 (42 years x 12 months per year)
rate 0.008333333 (0.1 / 12 months per year)
[tex]2000000 \times \frac{1-(1+0.008333)^{-504} }{0.008333} = C\\[/tex]
C $ 258.25
Which of the following is an example of frictional unemployment? A. Dora lost her job when the textile mill closed. She does not have skills to work in another industry and has been unemployed for over a year. B. Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. C. George is an unskilled worker who mows lawns in the summer, but is unemployed the rest of the year. D. Hector looked for a job for five weeks after finishing college. He turned down several jobs that didn't use his skills, but now has a job requiring the expertise he gained in college.
Answer:
The correct answer is D
Explanation:
Frictional unemployment is the time period between jobs when a worker is searching for or transitioning from one job to another. It can be voluntary based on the circumstances of the unemployed individual. Frictional unemployment exists because both jobs and workers are heterogeneous, and a mismatch can result between the characteristics of supply and demand. Such a mismatch can be related to skills, payment, work-time, location, seasonal industries, attitude, taste, and a multitude of other factors.
Answers A, B, C are examples of structural unemployment. Hector is unemployed because the jobs offering doesn't satisfy his requirements.
George is an unskilled worker who mows lawns in the summer but is unemployed the rest of the year. This is an example of frictional unemployment, which occurs when individuals are temporarily unemployed while transitioning between jobs or searching for new employment opportunities. Therefore, option C is correct.
Frictional unemployment refers to the temporary unemployment that occurs when individuals are between jobs or actively seeking new employment. It is a natural part of the labor market as workers transition and search for better job opportunities that match their skills and preferences.
Frictional unemployment can arise due to various factors such as job changes, layoffs, voluntary job separations, or recent entry into the labor force. It is considered relatively short-term and often occurs in a healthy and dynamic labor market where individuals have mobility and opportunities for job transitions.
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Some persons are counted as out of the labor force because they have made no serious or recent effort to look for work. However, some of these individuals may want to work even though they are too discouraged to make a serious effort to look for work. If these individuals were counted as unemployed instead of out of the labor force, then
a. both the unemployment rate and labor-force participation rate would be higher.
b. the unemployment rate would be higher ,and the labor-force participation rate would be lower.
c. the unemployment rate would be lower, and the labor-force participation rate would be higher.
d. both the unemployment rate and labor-force participation rate would be lower.
Answer:
The correct answer is A: both the unemployment rate and labor-force participation rate would be higher.
Explanation:
The unemployment rate is the share of the labor force that is jobless, expressed as a percentage. To calculate the unemployment rate, the number of unemployed people is divided by the number of people in the labor force, which consists of all employed and unemployed people. It defines unemployed people as those who are willing and available to work, and who have actively sought work.
By increasing the number of people unemployed, the number of employed people is now divided by a larger base. Meaning that the unemployment rate increases.
The labor force participation rate measures an economy's active labor force and is the sum of all employed workers divided by the working-age population. It refers to the number of people who are either employed or are actively looking for work. The number of people who are no longer actively searching for work would not be included in the participation rate.
By increasing the number of people of unemployed people, they will be considered as people that are actively looking for work. Meaning that labor force participation increases.
All discouraged workers are counted as unemployed, both the unemployment rate and the labor-force participation rate would increase because these individuals are added both to the unemployed count and the total labor force count.
Explanation:The correct answer to this question is (a). If individuals who are too discouraged to make a serious effort to look for work were counted as unemployed instead of out of the labor force, both the unemployment rate and the labor-force participation rate would be higher. This is because the unemployment rate is a ratio that compares the number of unemployed individuals to the total labor force. Meanwhile, the labor-force participation rate measures the total number of individuals who are either employed or actively looking for work, as a percentage of the working-age population. Therefore, counting these discouraged workers as unemployed would add to both the number of people counted as unemployed and those considered as part of the labor force, raising both rates.
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Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division’s return on investment (ROI), which has been above 24% each of the last three years. Casey is considering a capital budgeting project that would require a $6,100,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company’s discount rate is 20%. The project would provide net operating income each year for five years as follows:
Sales $ 5,400,000
Variable expenses 2,400,000
Contribution margin 3,000,000
Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $900,000
Depreciation 1,220,000
Total fixed expenses 2,120,000
Net operating income $ 880,000
Required: 1. What is the project’s net present value? (Round discount factor(s) to 3 decimal places.)
2. What is the project’s internal rate of return to the nearest whole percent?
3. What is the project’s simple rate of return? (Round percentage answer to 1 decimal place. i.e. 0.123 should be considered as 12.3%.)
The question involves computing financial metrics for a capital budgeting project: NPV, IRR, and simple rate of return. NPV and IRR require discounting future cash flows, while the simple rate of return is the incremental net operating income divided by initial investment, which results in 14.4% for this project.
The question asks for an analysis of a capital budgeting project using multiple financial metrics such as net present value (NPV), internal rate of return (IRR), and simple rate of return to determine the project's viability. To compute NPV, we must discount the project's net operating income for each year at the given discount rate of 20% and subtract the initial investment. However, calculating IRR would require trying different rates until the NPV equals zero, which is typically done using financial calculators or software. The simple rate of return can be found by dividing the annual incremental net operating income by the initial investment.
NPV is a valuable tool for assessing the profitability of a project by comparing the value of money today with the value of that same money in the future, taking inflation and returns into account. Given Pigeon Company's discount rate and the provided cash flows, calculating NPV would help Casey determine if the project's earnings exceed anticipated costs. Unfortunately, without being able to perform that calculation here, we cannot provide the exact NPV or IRR values. Still, the simple rate of return is the project's incremental net operating income excluding depreciation, divided by the initial investment, resulting in 14.4%.
Vaughn Manufacturing is a private camping ground near the Mount Miguel Recreation Area. It has compiled the following financial information as of December 31, 2017. Service revenue (from camping fees) $168,960 Dividends $11,520 Sales revenue (from general store) 32,000 Notes payable 64,000 Accounts payable 14,080 Expenses during 2017 161,280 Cash 10,880 Supplies 7,040 Equipment 145,920 Common stock 51,200 Retained earnings (1/1/2017) 6,400 Determine Vaughn Manufacturing’s net income for 2017. Vaughn Manufacturing’s net income for 2017 $enter a net income amount
Answer:
The Vaughn Manufacturing’s net income for 2017 is $39,680
Explanation:
The computation of the net income is shown below:
In simple form, the net income equals to
= Total revenue - total expenditure
= Service revenue (from camping fees) + Sales revenue (from general store) - Expenses during 2017
= $168,960 + $32,000 - $161,280
= $39,680
The other items which are mentioned in the question are irrelevant. Therefore, these are ignored for the computation part
What would be the net annual cost of the following checking accounts? (a) Monthly fee, $3.25; processing fee, $0.35 cents per check; checks written, an average of 20 a month. (Do not round intermediate calculations. Input the answer as a positive value. Round your answer to 2 decimal places.)
Answer:
Total annual cost= $123
Explanation:
Giving the following information we need to calculate the annual cost:
Fixed monthly cost= $3.25
Variable cost= $0.35 per check
Q=20 month
Total annual cost= Fixed monthly cost*12+ (Variable cost*20)*12
Total annual cost= (3,25*12)+(0,35*20)*12= $123
Final answer:
The net annual cost of the checking account with a monthly fee of $3.25 and a processing fee of $0.35 per check, with an average of 20 checks written per month, is $123.00.
Explanation:
To calculate the net annual cost of a checking account with a monthly fee and a per-check processing fee, we need to consider both the fixed monthly cost and the variable cost dependent on the number of checks written. The question specifies a monthly fee of $3.25 and a processing fee of $0.35 per check, with an average of 20 checks written per month.
Calculating the Annual Cost
Monthly Fee: Since the monthly fee is consistent, we multiply it by 12 to find the annual cost from this portion. Monthly fee = $3.25, so Annual fee from monthly charges = $3.25 * 12 months = $39.00.Processing Fee: To find the annual cost from processing fees, we calculate the cost per month and then multiply by 12. The processing fee per check is $0.35, and with 20 checks per month, the monthly cost from processing fees is $0.35 * 20 = $7.00. Therefore, the Annual fee from processing charges = $7.00 * 12 months = $84.00.Total Annual Cost: We sum the annual cost from monthly fees with the annual cost from processing fees to find the net annual cost. Total Annual Cost = $39.00 (from monthly fees) + $84.00 (from processing fees) = $123.00.The net annual cost of the checking account is $123.00.