Answer:
Correct option is (a)
Explanation:
Current earnings and profits represent current year's earnings and accumulated E&P represent earnings after making distributions in the form of dividends to the shareholders. The level of accumulated E&P shows the ability of organizations to make cash distributions to its shareholders.
A distribution made by the corporation is considered dividend if current year E&P is positive irrespective of whether accumulated E&P is positive or negative.
In this case, current E&P is $500, which is more than distribution of $400, so it is considered as dividends.
Sarah, a manager at a consulting firm, has been keenly analyzing the performance of a new recruit, Tom, who turns out to be extremely intelligent. Given Tom's performance and intelligence, Sarah concludes that he will be a good manager in the future even though his interpersonal skills are not half as impressive. This conclusion on Sarah's part seems to be the result of ________.
Answer:
the halo effect.
Explanation:
Based on the information provided within the question it can be said that this conclusion on Sarah's part seems to be the result of the halo effect. This effect refers to the situation in which an individuals positive impression on another person or company positively affects that person/company's feelings in other aspects of the individual in question. Which is exactly what happened in this scenario as Sarah was impressed with his performance and intelligence which made up for his lack of interpersonal skills.
__________ would use the present value of an annuity due for which of the following transactions?
a. Noel Inc. rents a warehouse for 7 years with annual rental payments of $120,000 to be made at the end of each year.
b. Noel, Inc. borrows $20,000 and has agreed to pay back the principal plus interest in three years.
c. Noel, Inc. wants to deposit a lump sum to accumulate $50,000 for the construction of a new parking lot in 4 years.
d. Noel, Inc. rents a truck for 5 years with annual rental payments of $20,000 to be made at the beginning of each year.
Answer:
A and D
Explanation:
If a periodic sum is to be paid or received, an annuity must be used since this means a series of uniform payments, therefore in addition to this and the time an interest rate is required to find the present value of the payments you must use in excel PV (present value) function and you need aside these data an interest rate.
Gold Coast Health System just paid an annual dividend of $1.50, which is expected to grow at a constant rate of 5 percent per year. If the current required rate of return is 15 percent, what is the value of Gold Coast’s stock?
A) $15.75
B) $15.50
C) $15.25
D) $15.00
E) $14.75
Answer: Po = Do(1+g )/ke-g
Po = $1.50(1+0.05)/0.15-0.05
Po = $1.50(1.05)/0.10
Po = $1.575/0.10
Po = $ 15.75
The correct answer is A
Explanation: In this question, there is need to calculate the value of the company's stock on the ground that dividend has been paid. The value of the stock is a function of current divided paid, growth rate and the required rate of return on the stock.
An advantage of the fixed-period inventory system is that______.
A) safety stock will be lower than it would be under a fixed-quantity inventory system.
B) there is no physical count of inventory items when an item is withdrawn.
C) no inventory records are required.
D) orders usually are for smaller order quantities.
E) the average inventory level is reduced.
Answer:
The correct answer is (B)
Explanation:
There are various advantages of fixed inventory stock. The fixed-period stock and inventory framework requires more safety stock than a fixed-amount framework. A stock out can happen during the audit time just as during the lead time. A significant advantage of fixed period stock is that, there is no physical check of stock when products are withdrawn.It helps to save time and money.
Final answer:
The advantage of a fixed-period inventory system is that it typically involves orders for smaller quantities, helping with cash flow and storage space. The correct answer is D.
Explanation:
An advantage of the fixed-period inventory system is that orders usually are for smaller order quantities. This inventory management approach is characterized by ordering at the end of a fixed period, which could be weekly, monthly, or by any other set time frame.
The amount ordered varies and depends on the inventory levels at the time of order, often resulting in smaller quantities compared to a fixed-quantity system where a constant amount is ordered whenever inventory drops to a particular level. Smaller order quantities can help businesses with cash flow and storage space management.
Island Home Goods pursues a related diversification strategy, deriving less that 70 percent of revenues from its original business unit, Island Furniture, and maintaining several related units including Island Lighting and Island Hardware. Which of the following structures is most likely to support this strategy?
A. M-Form with centralized decision-making power (cooperative multidivisional)
B. M-Form with centralized decentralized decision-making power (competitive multidivisional)
C. functional with centralized decision-making power
D. functional with decentralized decision-making power
Answer:
A. M-Form with centralized decision-making power (cooperative multidivisional)
Explanation:
For the firms which perform related or unrelated diversification, they always use the M-form organization structure and the power the take decisions is always centralized. This allows high level of integration of authority.
A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. On the reset date, the composite rate is 6%. What would the Year 3 monthly payment be?
a. $955
b. $1,067
c. $1,003
d. $1,186
e. Because of the payment cap, the payment would not change.
Answer:
1003
Explanation:
Given:
Period= 30 years, Loan amount= $200,000,
Payments- Monthly,
Teaser rate for first 2 years = 4%,
Annual payment cap=5%, Composite rate on reset date= 6%
Annual rate for 2 years =4%
Monthly rate will be 4/12 = 0.3333% = 0.003333
n=30years=360 months
Monthly payment for first 2 years = [tex]Pr(1+r)^n/((1+r)^n-1)[/tex]
= [tex]200000\times0.0033\times1.033^{360}/(1.033^{360}-1)[/tex]
= 954.83
or by Excel function = PMT(0.003333,360,200000,0) = 954.83
Loan balance after 2 years = PV(0.003333,336,-954.83,0) = 192,812.36 or
Balance=[tex]A(1+r)^n-PMT\times(1+r)^n-1)/i[/tex]
=[tex]200000(1.0033)^{24}-954.83(1+0.003333)^{24}-1)/0.003333[/tex]
= 192,812.36
Composite rate is 6% but payment is capped at 5%. So new payment from year 3 is 954.83×1.05=1002.57=1003
After she was promoted to a high-level executive position in the large company for which she worked, Jorana developed more pro-business political attitudes. This best illustrates the impact of ________ on attitudes.
A)deindividuation
B)social facilitation
C)role-playing
D)mirror-image perceptions
E)the bystander effect
Answer: Role playing
Explanation: Role playing is a situation where an individual changes his/her original character to match a certain behavior either intentionally or not.
In the question Jorana is trying to switch from her original behavior to the behavior required of her new official position.
Steve and Grace know that their nephew loves to travel. Steve and Grace find a great deal on a timeshare and tell Mike they are negotiating to buy the timeshare to give to Mike as a wedding gift. Steve and Grace continue to negotiate with Bob, the timeshare owner, for the purchase of the timeshare. If there is any dispute with the negotiations or a resulting contract, does Mike have any rights in that case
Answer:
Explanation:
That depens of the red tape, if there is one, Mike can claim rigths over the good depending on the negotiation, but if there is no a signed deal it is impossible to claim according to the law.
Final answer:
Explaining Mike's potential rights in a timeshare dispute arising from a gift promise.
Explanation:
Mike would have rights in case of a dispute arising from the negotiations or resulting contract if Steve and Grace intended to give the timeshare to Mike as a wedding gift. This intention could create a legal interest or expectation for Mike in the transaction, granting him standing to pursue legal action if necessary.
Additionally, if Mike can demonstrate that he had a legitimate expectation or reliance on receiving the timeshare as a gift, he may have rights under promissory estoppel or constructive trust theories, depending on the jurisdiction and specific circumstances of the case.
In some legal systems, such as the United States, courts may consider the concept of a 'gift promise' in situations like this, where a promise of a gift can be legally enforceable if certain conditions are met.
When Kimberly begins working for Pharmco Industries the company tells her that at a future after so many years of employment with the company she can receive retirement pay. Her rights to receive pay upon retirement would be considereda. vested.b. accrued.c. sheltered.d. inferred.
Answer:
The correct answer is a. vested.
Explanation:
Retirement is the administrative act by which an active worker, whether self-employed or employed, goes into a passive or inactive situation, after reaching the maximum age, or due to serious chronic illness or disability. He then obtains a monetary benefit for the rest of his life. The labor legislation of each country stipulates different conditions in this regard.
In order to compensate for the loss of income that derives from the work termination, the beneficiary of the retirement is recognized an economic benefit that usually consists of a monthly income. The benefit is for life and only ends with the death of the interested party. The amount of the benefit can be based on different criteria: for example, with the actuarial criteria, it is established in relation to the amount and amount of the contributions made; with a substitution criterion, it is established from a certain percentage of the amount of income during working life.
In public retirement systems, to access a retirement it is necessary to meet age requirements (generally around 60-65 years) or access an early retirement for reasons of disability. On the other hand, in the case of a contributory system, access usually depends on having fulfilled a minimum of years of social security contributions.
Allen bought a warehouse to hold his excess inventory for $3,220,000 four years ago. Allen would have to pay $3,979,000 to buy a similar warehouse now. At which amount should Allen report the warehouse on a Balance Sheet prepared in accordance with GAAP (Generally Accepted Accounting Principles)?
Answer:
$3,220,000
Explanation:
All assets have to be recorded at their cost basis, not their current fair market value.
Allen should have depreciated the value of the warehouse using a 39 year straight line depreciation for nonresidential real property = $82,564 depreciation expense per year x 4 years = $330,256.
Apparently Allen didn't record any depreciation expense for the warehouse, so he should use the cost basis.
At the end of a company's first year of operations, 2,000 units of inventory are on hand. Variable costs are $100 per unit and fixed manufacturing costs are $30 per unit. The use of absorption costing, rather than variable costing, would result in a higher net income of what amount?
Answer:
absorption income higher by $60000
Explanation:
given data
inventory on hand = 2,000 units
Variable costs = $100 per unit
fixed manufacturing costs = $30 per unit
to find out
higher net income of what amount
solution
we know that Absorption cost and variable cost are different in their treatment of the fixed manufacturing costing
so we use of absorption cost that carry over in fix cost into ending inventory is here
absorption cost that carry over = fixed manufacturing costs × inventory on hand
absorption cost that carry over = $30 × 2000
absorption cost that carry over = $60000
so that here this amount is use for variable costing and absorption income higher by $60000
DiskSan has to order flash transistors ($5 each) to create USB flash memory drives. Their monthly demand is 10,000 units, their holding cost (which is mostly comprised of obsolescence costs) is 10% per month per dollar in inventory, and the setup costs for an order is $5 (mostly paperwork etc.). Determine the economic order quantity for these flash transistors.
Answer
Economic order quantity will be 447.21
Explanation:
We have given monthly demand = 10000 units
We know that 1 year = 12 month
So Annual demand (D) = monthly demand × 12 months = 10000 × 12 = 120000 units
Cost of transistor = $5 per unit
Monthly Holding cost = 10% of cost = 10% of $5 = $0.50
So annual holding cost (H) = monthly holding cost × 12 = $0.50 × 12 = $6
Setup cost(S) = $5
We know that economic order quantity is given by
Economic order quantity = [tex]\sqrt{\frac{2DS}{H}}=\sqrt{\frac{2\times 12000\times 5}{6}}=447.21[/tex]
Final answer:
The Economic Order Quantity (EOQ) for DiskSan, given a monthly demand of 10,000 units, setup costs of $5, and a holding cost of 10% per month, is determined to be 1,000 units. This calculation is based on converting the monthly demand to yearly, applying the EOQ formula, and calculating the holding costs on a yearly basis.
Explanation:
The question asks to determine the Economic Order Quantity (EOQ) for DiskSan, a company that orders flash transistors to create USB flash memory drives. The EOQ model is essential for minimizing the total cost associated with the ordering and holding of inventory. To calculate EOQ, we use the formula: \(EOQ = \sqrt{\frac{2DS}{H}}\), where D is the yearly demand, S is the setup cost per order, and H is the holding cost per unit per year.
Given that DiskSan's monthly demand is 10,000 units, the calculation must first convert this to a yearly demand (D = 120,000 units/year). The setup costs (S) are $5, and the holding cost (H) is calculated as 10% of the cost per transistor per month, translating to 120% per year of $5, which is $6 per unit per year.
Plugging these values into the formula gives us: \(EOQ = \sqrt{\frac{2 \cdot 120,000 \cdot 5}{6}} = \sqrt{1,000,000} = 1,000 \). Therefore, the Economic Order Quantity for DiskSan is 1,000 units.
4. Treasury bills, notes, and bonds Suppose you purchase a corporate bond that is due in one year, with a face value of $100 and an annual coupon rate of 6.5%. Coupons are paid at the end of each year. The annual coupon payment is . If the current yield is 5.0%, then the price paid for the bond is . Suppose interest rates increase. The price of your existing corporate bond will .
Answer:
1) $6.50
2) $130
3) Decrease
Explanation:
Answer:
The answers are as follows:
Annual coupon payment: $6.50
Bond Price: $101.43 (rounded to 2 decimal places).
If interest rates rise, the price of your existing corporate bond will fall.
Explanation:
A bond is a fixed income security. The issuer of the bond has to pay a fixed amount to the holder of the bond every period. These payments are known as coupon payments and calculated based on the contractual coupon rate and the face value of the bond. In this case, the coupon payments amount to 6.5% (0.065) * $100 = $6.05.
A bond's price is the present value of all future anticipated cash flows. To calculate this, the prevailing market interest rate or yield (5%) is used to discount the cash flows. Since the period is only one year and the coupon rate is annual, the repayment of the face value of the bond will coincide with the coupon payment. At the end of the year $106.5 ($100 (face value) + $6.5(coupon) will be paid out. The discounting of this amount is as follows:
Present value (bond price) = Future Value/(1 + yield)^1
$101.4285714 = $106.5/(1+0.05)^1 where the numerator is the total amount paid at year end and the denominator is the discounting factor raised to the power of 1 to signify the duration of one time period or a year.
Interest rates and bond prices have an inverse relationship. The higher the interest rate, the lower the bond price and vice versa. Using the formula above, if the yield was lower than 5%, say 3% then the bond price would be $103.4 but if the yield was higher than 5%, say 7% then the bond price would be $99.53
At 9,000 direct labor hours, the flexible budget for indirect materials is $27,000. If $28,000 of indirect materials costs are incurred at 9,200 direct labor hours, the flexible budget report should show the following difference for indirect materials_______.
Answer:
Variance will be $400
Explanation:
We have given number of labor hour = 9000
Budget for indirect material = $27000
Indirect material cost [tex]=\frac{27000}{9000}=3\ per\ direct\ labor\ hour[/tex]
We have given that there are 9200 direct labor hours
So budgeted cost = 9200×3 = $27600
We have given indirect material cost = $28000
So variance = $28000-$27600 = $400
For indirect materials, the flexible budget report should show an unfavorable variance of $400 since actual costs ($28,000) exceeded the flexible budgeted costs ($27,600) at 9,200 direct labor hours.
Explanation:The question pertains to the calculation of a variance in a flexible budget report for indirect materials. When actual hours worked (9,200) exceed the hours in the flexible budget (9,000), we need to adjust the budget to reflect what the indirect materials cost should have been at that level of activity. The flexible budget for indirect materials was $27,000 at 9,000 hours, which gives us a rate of $3 per hour ($27,000 / 9,000 hours). At 9,200 hours, the adjusted flexible budget for indirect materials would be 9,200 hours x $3 per hour = $27,600. With the actual cost being $28,000, the variance is $28,000 - $27,600 = $400 unfavorable, because the actual cost exceeded the flexible budget amount.
Samara interviewed for a management position and was just asked back for a second interview with the head of the department. If she does will in this second interview, she will move on to an interview with the company president. What type of interview format is this?
Answer: This interview is a Sequential interview because Sequential interviews are a series of interviews in which the candidate is evaluated by several supervisors. Sequential interviews are common in large companies and usually a Human Resources specialist, the department head and a senior supervisor are involved.
Which of the following statements is TRUE?A. As the probability of a super-event decreases, the advantage of utilizing multiple suppliers diminishes.B. Large probabilities of a unique event decrease the likelihood of needing more suppliers.C. All suppliers will be disrupted simultaneously if either a super-event occurs or a super-event does not occur but a unique-event occurs for all of the suppliers.D. To compute the probability of all n suppliers being disrupted simultaneously, we assume that the probabilities are all dependent on each other.
Answer:
D
Explanation:
Studying MGMT 4010 Ch S11 on Quizlet: https://quizlet.com/304737596/mgmt-4010-ch-s11-flash-cards/?x=1jqU&i=utx3h
Sunland Company purchases a new delivery truck for $56100. The sales taxes are $4500. The logo of the company is painted on the side of the truck for $1200. The truck license is $180. The truck undergoes safety testing for $280. What does Sunland record as the cost of the new truck?
Answer:
$62,080
Explanation:
The computation of the cost of the new truck is shown below:
Cost of the new truck = Purchase Price of delivery truck + sales taxes + logo painting cost + safety testing costs
= $561,00 + $4,500 + $1,200 + $280
= $62,080
The truck license is a yearly cost so it would not be included while computing the cost of the new truck. Hence, ignored it
Howard Co. had the following first-year amounts for a $7,000,000 construction contract: Actual costs $2,000,000 Estimated costs to complete 6,000,000 Progress billings 1,800,000 Cash collected 1,500,000 What amount should Howard recognize as gross profit (loss) using the percentage-of-completion method?
a. ($1,000,000)b. ($200,000)c. $800,000d. $1,750,000
Answer:
estimated loss from the project is $1,000,000
correct option is a. ($1,000,000)
Explanation:
given data
contract price = $7,000,000
Actual costs = $2,000,000
Estimated costs = 6,000,000
Progress billings = 1,800,000
Cash collected = 1,500,000
to find out
What amount should Howard recognize as gross profit (loss)
solution
we get in the amount to complete the project that is
amount to complete = contract price - Actual costs - Estimated costs
amount to complete = $7,000,000 - $2,000,000 - 6,000,000
amount to complete = - $1000000
so estimated loss on project
so that the total $1,000,000 loss must be recognize
so correct option is a. ($1,000,000)
Final answer:
To determine gross profit (loss) when using the percentage-of-completion method, the formula [(Actual costs - Estimated costs to complete) / Total Estimated costs] x Profit Earned so far is applied. By calculating the values provided in the question, the correct answer is $250,000.
Explanation:
Gross profit (loss) = [(Actual costs - Estimated costs to complete) / Total Estimated costs] x Profit Earned so far
Given:
Actual costs = $2,000,000
Estimated costs to complete = $6,000,000
Progress billings = $1,800,000
Cash collected = $1,500,000
Substitute the values into the formula to calculate:
Gross profit (loss) = [($2,000,000 - $6,000,000) / $6,000,000] x $1,500,000 = ($4,000,000 / $6,000,000) x $1,500,000 = $1,000,000 x 0.25 = $250,000
The correct answer is $250,000.
An auto analyst is conducting a satisfaction survey, sampling from a list of 10,000 new car buyers. The list includes 2,500 Ford buyers, 2,500 GM buyers, 2,500 Honda buyers, and 2,500 Toyota buyers. The analyst selects a sample of 400 car buyers, by randomly sampling 100 buyers of each brand. Is this an example of a simple random sample?
Answer:
No
Explanation:
Simple random sampling gives each member in the entire population an equal opportunity to be included in the sample. The technique removes bias in the selection procedure. It applies where a small number would adequately represent the entire population.
The procedure described in this case is a deviation of simple random sampling. It is stratified random sampling.
In stratified random sampling, the population is first divided into subgroups based on shared characteristics. The researcher uses simple random sampling to select representatives of each group in the sample population. The techniques ensure each group is fairly represented in the research.
Subdividing vehicles by their make is creating strata or subgroups.
Greensaver Corp. is a company that sells electricity. Greensaver has taken the initiative to generate more power from solar and wind sources and is planting saplings in parks and on roadsides to combat the polluting effects of nonrenewable resources.
Which of the following best describes Greensaver Corp.'s efforts?
a.Sustainability
b.Corporate philanthropy
c.Corporate social responsibility (CSR)
d.Socially responsible investing (SRI)
Answer:
c.Corporate social responsibility (CSR)
Explanation:
Based on the information provided within the question it can be said that Greensaver Corp's efforts are best described as Corporate social responsibility. This refers to the act of a company' charitable nature to contribute to societal goals. Which is exactly what Greensaver Corp is doing by installing saplings in parks and roadsides in order to combat pollution of nonrenewable resources for the good of the planet and society.
Harrison is self-employed. He sells advertising specialty items like calendars, pens, etc., imprinted with the name and advertising message of local businesses who give the items to customers and prospects. He has set for himself a goal of earning $180,000 in sales for this year. Harrison's revenue goal is an example of a(n) _____ goal.
Answer: Performance goals
Explanation: In simple words, performance goals refers to the short term objective that are set by someone for himself or by others, to perform a standard amount of work at a given time period in his or her current job or position in which the individual is working.
It can be seen as the expectations for performance of the work to be done in relation to quality or volume. These standards are based on various factors such as past performances, future trends and image or qualities of the individuals who is going to perform the duties.
Hence the goal of Harrison to make a certain amount of profit at a specified time period is an example of performance goals.
Elegance Bath Products, Inc. (EBP) makes a variety of ceramic sinks and tubs. EBP has just developed a line of sinks and tubs made from a mixture of glass and ceramic. The sinks sell for $150 each and have variable costs of $80. The tubs sell for $600 and have variable cost of $450. The glass and ceramic sinks and tubs require the use of specialized molding equipment. The specialized molding equipment has 4,050 hours of capacity per year. A sink uses an average of 2 hours of specialized molding equipment time; a tub uses an average of 5 hours of specialized molding equipment time.Assume that EBP can sell as many as 1,000 sinks and 500 tubs per year. How many tubs should EBP produce?a.1,000b.500c.410d.675e.zero
Answer:
C) 410 tubs
Explanation:
the contribution margin for sinks is $70 (= $150 - $80) and the contribution margin for tubs is $150 (= $600 - $450).
the molding equipment has 4,050 hours of capacity per year, so it can produce either 2,025 sinks or 810 tubs.
we can determine what product is more profitable if we determine a contribution margin per molding equipment usage ratio:
sink = $70 / 2 hours = $35 per hourtub = $150 / 5 hours = $30 per hourIt is more profitable to produce sinks than tubs, but we can sell only 1,000 sinks per year, so even after we product the 1,000 sinks we will have spare molding equipment capacity which we can use to produce tubs.
The spare molding equipment capacity after producing sinks = 4,050 total hours - 2,000 hours used to produce sinks = 2,050 spare molding hours
We can produce 410 tubs (= 2,050 molding hours / 5 hours per tub)
Which of the following situations would not result in auditors adding an additional paragraph to their report without modifying the introductory, scope, or opinion paragraphs of that report?A. Reference to a change in the method of accounting mandated by the issuance of a new accounting standard.B. Reference to a going-concern uncertainty facing the entity.C. Reference to a departure from GAAP that is material, but not pervasive, to the financial statements.D. Reference to an acquisition made by the entity during the most recent fiscal year.
Answer:
The answer is letter C.
Explanation:
The situation that would not result in auditors adding an additional paragraph to their report is reference to a departure from GAAP that is material, but not pervasive, to the financial statements.
A factory uses 625 tons of steel per year to make reinforced rods. Its ordering costs are $40 per order, and its holding costs are $5 per ton. According to the economic order quantity (EOQ) model, approximately how often does the company have to place an order to maintain optimal order quantity?
Answer:
The company has to place an order approximately once every 59 days to maintain optimal order quantity.
Explanation:
Please find below for the explanations and calculations:
EOQ = square root of [(2* Order Cost per one order * annual demand) / Holding Cost per bracket per year ] = square root of [ (2*40*625)/5] = 100 tons.
Orders made annually give EOQ = Annual demand / EOQ = 625 / 100 = 6.25 orders
Assuming a factor working for 365 days per year, the frequency of the orders made is 365/6.25 days or 59 days.
Eddy Corporation had net credit sales during the year of $800,000 and cost of goods sold of $500,000. The balance in receivables at the beginning of the year was $100,000 and at the end of the year was $150,000. How much is the accounts receivables turnover?a.8.0b.5.3c.6.d.4.0
Answer:
None of the given options.
Accounts turnover ratio is 6.4 times.
Explanation:
Financial Statements depicts the financial position of a firm at a particular point of time or specified date. The users of financial statements use various types of analysis to understand or compare the current financial statements of the company to prior years or with those of the competitors.
‘Ratio Analysis’ is used to analyze the performance of a company. It is used to analyze the liquidity, profitability, solvency and operational efficiency of the company.
Given:
Net credit sales = $800,000
Beginning accounts receivable = $100,000
Ending accounts receivable = $150,000
Accounts receivable turnover is the ratio of net credit sales to average accounts receivable.
It can be calculated as:
Average accounts receivable = [tex]\frac{Beginning accounts receivable + Ending accounts receivable}{2}[/tex]
Average accounts receivable = [tex]\frac{100,000 + 150,000}{2}[/tex]
Average accounts receivable = [tex]\frac{250,000}{2}[/tex]
Average accounts receivable = $125,000
Accounts turnover ratio = [tex]\frac{Net credit sales}{Average accounts receivable}[/tex]
Accounts turnover ratio = [tex]\frac{800,000}{125,000}[/tex]
Accounts turnover ratio =6.4 times
Bunyan Heavy Equipment, a U.S. firm, is investigating expanding into Russia using a greenfield venture. The committee researching this project has delivered a negative report. The main concern of the committee is probably
a. loss of intellectual property due to Russian piracy.b. the fluctuation in the value of the ruble.c. the numerous and conflicting legal authorities in Russia.d. Russia's recent actions to gain state control of private firms' assets.
Answer:
All of these are valid concerns and very relevant indeed, but the most problematic situation would be:
D) Russia's recent actions to gain state control of private firms' assets.
Explanation:
Russia is perceived as a very corrupt state, I don't live in Russia so I can't be 100% sure. Russian leaders are famous for being multi-billionaires that used to be communists, sounds weird.
The problem with Russia is that when their leaders want a private company they just take it away from its rightful owner and many times when the rightful owners complain they are sent to prison and beaten up to death. This may sound crazy but it happened several times including Russia's largest private company Yukos in 2003. Its owner whose last name is Jodorkovski was sent to prison for about 10 years, and its CFO was beaten to death while being held in a Siberian prison.
What is the correct answer Even when competitive firms are unable to calculate marginal revenue product directly,
A) will push wage rates toward the marginal revenue product of labor.
B) planned future investment in physical capital
C) the pressures of competition in the labor market
D) the marginal workers ongoing skills training
E) wages that exceed workers' net revenue product
Answer: The corrects answers are "C) the pressures of competition in the labor market" and A) will push wage rates toward the marginal revenue product of labor.".
Explanation: Because the correct and complete statement would be: Even when competitive companies cannot directly calculate the product of marginal income, the pressures of competition in the labor market will push wage rates towards the product of marginal income from labor.
Making it clear that the strong pressures that are the product of competition in the labor market pushed wage rates towards the product of marginal income.
During the month a company paid $62.75 for office supplies and $71.22 for miscellaneous expenses from the petty cash fund. The entry to replenish the petty cash fund at the end of the month would include:
Answer:
Debit Petty cash fund $133.97
Credit Bank account $133.97
Explanation:
On purchase of office supplies, the following entries are passed;
Dr Office supplies (p/l) $62.75
Cr Petty cash fund $62.75
On incurring the miscellaneous expenses, the following entries are passed;
Dr Miscellaneous expenses (p/l) $71.22
Cr Petty cash fund $71.22
Total credits to petty cash fund
= $62.75 + $71.22
= $133.97
This amount is withdrawn from the bank for the replenishment of the petty cash account. As such, the following entries are passed;
Dr Petty cash fund $133.97
Cr Bank account $133.97
Which of the following statements regarding a SEP is true?
1. The maximum contribution to a SEP is the lesser of 100% of compensation or $53,000 for 2015.
2. A SEP is appropriate for an employer with many part-time employees who want to limit coverage under the SEP.
3. Contributions to a SEP must vest at least as rapidly as a 5 year cliff vesting schedule or 2 to 6 year graduated vesting schedule.
4. If a partnership makes a flat percentage contribution equal to 25% of all employees' salary for the year to a SEP, a partner earning $100,000 during the year would receive a $25,000 contribution.
Answer:
All the statements are false
Explanation:
A simplified employee pension (SEP) retirement plan can be set up by an employer or by someone that is self-employed. The employer benefits from the SEP because his contributions are tax deductible. The employer's contributions to SEP individual retirement accounts is completely discretionary, they don't have to follow a fixed rate or amount. The contributions must be equally proportional to all full time employees. The main advantage of a SEP plan is that it is very simple to set up.
Final answer:
The correct statement about a SEP is that it is suitable for an employer with many part-time employees who want to limit coverage. Contributions do not have to follow a vesting schedule and are immediately vested. The limit for contributions should be confirmed with the IRS as it may change.
Explanation:
Regarding the question on a Simplified Employee Pension (SEP) plan, the correct statement is that a SEP is suitable for an employer with many part-time employees who want to limit coverage under the SEP. This option allows for flexibility in determining which employees are covered under the SEP plan, as coverage requirements can be set to exclude those who work less than a specified number of hours, have not reached a certain age, or have not worked for the employer during a specified number of years.
The first statement about the maximum contribution to a SEP being the lesser of 100% of compensation or $53,000 for 2015 is incorrect, as the SEP contribution limits can change and need to be confirmed with the current IRS guidelines. Contributions to a SEP do not need to follow a vesting schedule and are immediately 100% vested, making the third statement incorrect. Lastly, the fourth statement is correct in that if a partnership contributes a flat percentage to a SEP, a partner with an earning of $100,000 would receive a $25,000 contribution if the percentage is set at 25%
Which of the following statements is FALSE? The variance increases with the magnitude of the deviations from the mean. The variance is the expected squared deviation from the mean. Two common measures of the risk of a probability distribution are its variance and standard deviation. If the return is riskless and never deviates from its mean, the variance is equal to one.
Answer:
FALSE: If the return is riskless and never deviates from its mean, the variance is equal to one.
Explanation:
If the return is riskless and never deviates from its mean, the variance is equal to ZERO.
Variance is calculated by taking the sum of square of deviations from the mean.
Deviations is calculated by subtracting the returns from their mean.
If the return is riskless and never deviates from its mean, the deviations would always be zero, hence the sum of square of them (variance) would also be zero.