Yes, a home equity loan can be risky because if payments are not made, the lender can foreclose. This risk was exacerbated by the securitization process, leading to reckless lending like subprime and NINJA loans.
Explanation:The statement is true that a home equity loan can be a risky move for borrowers because the lender has the power to foreclose if you do not make payments. A major factor responsible for this is the securitization process. The process, initially intended to redistribute risk and make lending more fluid, lost its direction when banks, not bearing the brunt of bad loans, began to lend carelessly. In the midst of this reckless lending, loans with little borrower appraisal, like subprime loans and NINJA loans, proliferated. These are loans made without sufficient regard for the borrower's ability to repay. Consequently, they became part of the complex puzzle leading to the global financial crisis, affecting home ownership adversely.
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An investor just purchased an office building for $100,000. He knows for certain that he can sell the building for $110,000 in five years. Approximately how much does he need to charge in annual rent in order to achieve a 15% annual return on the deal (rounded to the nearest hundred dollars)?
Answer:
$13,000 per year
Explanation:
The annual return on the deal will needs to be 15%
the return would be:
[tex]\frac{Gain On Sale + 5YearsRent}{Adquisition Value} = $Return On Investment[/tex]
Because we are asked to fullfil an annual rate and this is a 5 years project:
the return would be 0.15 * 5 years
Now posting the know values on the formula
[tex]\frac{10,000 + Rent }{100,000} = 0.15 * 5[/tex]
We have to sovle for the rent
So 10,000 + 5YearsRent = 0.15*5*100,000
5YearsRent = 75,000 - 10,000
5YearsRent = 65,000
Now we have to divide by 5 year, because that would be the return for 5 years.
Rent = $65,000/5 years = $13,000 per year
$13,000 per year is need to charge in annual rent in order to achieve a 15% annual return on the deal.
What is annual return?The annual return is the return that an investment provides over time, expressed as a time-weighted annual percentage. Returns may come from dividends, capital gains, or capital returns.
The yearly rate of return is calculated by dividing the overall gain or loss at the end of the year by the initial investment made at the beginning of the year. This strategy is also known as the annual rate of return or nominal annual rate.
An investment has generated a 15% yearly return, for instance, if a $1,000 original investment increases by $100 in the instrument's market value and pays a $50 dividend.
Thus, it is $13,000 per year.
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Which of the following statements is false? A. Healing is one characteristic of a servant leader. B. Servant leaders place the good of followers over their own self-interests. C. Servant leadership emphasizes that leaders be attentive to the concerns of their followers.D. Servant leadership is most effective in situations where subordinates are not open to being guided.
D is the correct answer.
Servant leaders can't lead if subordinates are not open to being guided.
Please vote my answer brainliest. thanks!
Servant leadership is most effective in situations where subordinates are not open to being guided: statement is false. Thus, option D is the correct option.
What is servant leadership?A leader's main objective in a servant leadership style is to serve others. This differs from traditional leadership, in which the success of the firm or organization is the leader's top priority. A servant leader shares authority, prioritizes the needs of the workforce, and supports staff members' growth and best performance. The people don't work for the leader; rather, the leader exists to serve the people.
A Servant Leader should concentrate on these things, according to its originator Robert K. Greenleaf: "Do those being served change as people? Do those who receive service improvements in health, wisdom, freedom, independence, and likelihood to serve others?" When leaders adopt a different perspective and put their teams first, both they and their staff grow personally, and the organization grows as a result of the staff's increasing dedication and engagement.
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On December 1, 20X1, Money Co. gave Home Co. a $200,000, 11% loan. Money paid proceeds of $194,000 after the deduction of a $6,000 nonrefundable loan origination fee. Principal and interest are due in 60 monthly installments of $4,310, beginning January 1, 20X2. The repayments yield an effective interest rate of 11% at a present value of $200,000 and 12.4% at a present value of $194,000. What amount of income from this loan should Money report in its 20X1 income statement?A. $0B. $1,833C. $2,005D. $7,833
Answer: (C.) $2,005
Explanation:
Given :
Money Co. made a cash outflow of $194,000 for the $200,000 loan Money gave to Home Co.
The book value of the loan is $194,000.
The stated rate is 11%.
Hence they will receive an effective interest rate of 12.4% on cash outflow.
∴
Income from the loan = Book value × Effective interest rate × No. of months of the year
= $194,000 × 0.124 × [tex]\frac{1}{2}[/tex]
= $2,004.67
First Simple Bank pays 8.6 percent simple interest on its investment accounts. If First Complex Bank pays interest on its accounts compounded annually, what rate should the bank set if it wants to match First Simple Bank over an investment horizon of 8 years? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer with Explanations:
Given:
Simple bank pays 8.6 percent simple interest.
Compound bank pays x percent interest compounded annually.
Assume an equal amount deposited in an account of each bank.
Find x such that at the end of 8 year the future values are equal.
Solution:
Assume an initial deposit of P in either account.
We calculate the future value after 8 years.
Simple bank:
future value, Fs = P(1+8*0.086) = 1.688P (8.6% simple interest)
Compound bank:
future value, Fc = P(1+x)^8 ( x% compounded annually)
In order that both future values are the same, we equate Fc and Fs
Fc = Fs
P(1+x)^8 = 1.688P
simplify
(1+x)^8 = 1.688
Take 8th root on both sides
(1+x)^(8*(1/8)) = 1.688^(1/8)
simplify
(1+x)^(1) = 1.688^(1/8)
take 8th root on right and simplify
1+x = 1.0676319
x = 1.0676319-1 = 0.0676319
Therefore the Compound Bank would offer an interest of 6.76%, rounded to 2 decimal places.
The rate that the bank should set if it wants to match First Simple Bank over an investment horizon of 8 years is 6.76%.
First step is to calculate the total interest using this formula
Total interest=Interest rate per period× Number of periods
Let plug in the formula
Total interest=.086×8
Total interest= .688
Now let calculate the bank rate using this formula
(1 + r)^n - 1
Set the two equal
(.086)(8) = (1 + r)^8 - 1
Hence:
r=(1+.688)^(1/8) - 1
r = 1.688^(1/8) - 1
r = .0676×100
r= 6.76%
Inconclusion the rate that the bank should set if it wants to match First Simple Bank over an investment horizon of 8 years is 6.76%.
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Knowledge Check 01 Chao, Inc., a service provider, has two divisions. The firm’s most recent annual contribution format segmented income statement appears below. Total Company Eastern Division Western Division Sales $ 450,000 $ 90,000 $ 360,000 Variable expenses 243,000 27,000 216,000 Contribution margin 207,000 63,000 144,000 Traceable fixed expenses 100,800 46,800 54,000 Division segment margin 106,200 $ 16,200 $ 90,000 Common fixed expenses 72,000 Net operating income $ 34,200 If the company eliminates the Western Division and the Eastern Division sales increase by 10% as a result, how much will the company’s net operating income decrease? $83,700 $88,380 $90,000 $137,700 $144,000
Answer:
It will decrease for $83,700
Explanation:
[tex]\left[\begin{array}{cccc}-&East&West&Total\\Sakes&90,000&360,000&450,000\\Var.Exp&27,000&216,000&243,000\\CM&63,000&144,000&207,000\\Fixed Cost&46,800&54,000&100,800\\Fixed&&&72,000\\Inome&16,200&90,000&34,200\\\end{array}\right][/tex]
IF West Discontinued
-90,000 Income from Western Division
+10% CM East = 6,300
83,700
The traceable fixed cost will be eliminated if wester division is closed.
There is no data about unavoidable fixed cost, so it should be assumed all are eliminated.
If Chao, Inc. eliminates the Western Division and increases the Eastern Division's sales by 10%, the company's net operating income decreases by $83,700.
Explanation:Given the problem, if Chao Inc. eliminates the Western Division, it will lose its contribution to the total company's net operating income, which is currently $90,000. However, it's also mentioned that the Eastern Division's sales would increase by 10% as a result. Currently, the Eastern Division's contribution margin ratio (Contribution Margin / Sales) is 70% ($63,000/$90,000). So, a 10% increase in sales for the Eastern Division, which is $9,000 ($90,000 * 10%), will generate an additional contribution of $6,300 (70% * $9,000), hence a net decrease in operating income of $83,700 ($90,000 - $6,300).
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When observation employs standardized procedures, trained observers, schedules for recording, and other devices that reflect the scientific procedures of other primary data methods, it is said to be _____ observation. A. simpleB. systematicC. organizedD. structuredE. semistructured
Answer: Option B
Explanation: Under systematic sampling the intent of the analyst is to make sure that all the observers get the same results when the given circumstances are same thus scientific procedures and methods are used in the data analyzing for utmost accuracy in the results.
A. simple sampling means a subset chosen from larger data.
C. Organized sampling means the data is grouped in various sets.
D. Structured sampling involves combination of sampling and using different models to compute results.
E. Semi structured sampling involves sampling involves sapling in which data is flexible and has loose ends.
Mitchell has a cause: He loves cats. As an economist, he could earn $100,000 as a faculty member, but instead he decides to devote his time to the Humane Society as its chief economist. Knowing nothing else, you would expect that he would receive
a.higher pay at the Humane Society because of the difference in skill levels.
b.lower pay at the Humane Society because of signal theory.
c.lower pay at the Humane Society because of the compensating differential theory.
d.higher pay at the Humane Society because of signal theory.
e.the same pay as either a professor or as a chief economist at the Humane Society.
Answer: (e.) The same pay as either a professor or as a chief economist at the Humane Society.
Explanation:
The correct answer would be option (e) because in this case there lies an ambiguity i.e. we are uncertain about skillets that an economists should be endowed with or for being a faculty member.
Therefore , it can be concluded that he would get at least as good pay as being faculty. In both cases he'll be better off.
Houston Pumps recently reported $220,000 of sales, $140,500 of operating costs other than depreciation, and $9,250 of depreciation. The company had $35,250 of outstanding bonds that carry a 6.75% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $15,250 to buy new fixed assets and to invest $6,850 in net operating working capital. What was the firm's free cash flow?
Answer:
The free cash flow for the firm would be $32,812
Explanation:
In this question we have been given the
total sales = $220,000
operating cost ( without deprecation) = $140,500
depreciation cost = $9250
income tax rate = 35%
capital expenditure(amount invested in fixed asset) = $15,250
investment made in net working capital = $6850
Here our first step should be to calculate the EBIT which is the earnings before interest and tax, for calculating this we will subtract the operating and depreciation cost from the total sales of the company,
EBIT = total sales - operating cost - depreciation
= $220,000 - $140,500 - $9250
= $70,250
After this we will subtract the federal plus income tax from this EBIT to get EBAT,
EBAT = $70,250 - 35% x $70,250
= $70,250 - $24,588 ( the original amount was $24587.5 but we
took approximate)
= $ 45,662
Now we will add back the depreciation in it and subtract the investment made in capital expenditure and net operating working capital cost(OWCC)
FREE CASH FLOW = EBAT + Depreciation - Capital expenditure - OWCC
= $45,662 + $9250 - $15,250 - $ 6850
= $32,812
Answer: $32,813
Explanation: The amount of funds available in a corporate entity for distribution to all of its security holders is termed as free cash flow to the firm. It is used as a measure of company's profitability after all expenses are paid.
formula :-
free cash flow = EBIT + Depreciation- capital expenditure - working capital
where,
EBIT= sales - operating cost- depreciation
= 220,000 - 140,500 - 9,250
= 70,250
now putting values into equation :-
free cash flow = 70,250(1-35%) + 9,250 -15,250 - 6,850 = $32,813
Two divisions of the Oregano Company (Divisions TX and OY) have the same profit margins. Division TX's investment turnover is larger than that of Division OY (1.2 to 1.0). Income from operations for Division TX is $55,000, and income from operations for Division OY is $43,000. Division TX has a higher return on investment than Division OY by a. applying a negotiated price measure b. using its assets more efficiently in generating sales c. using income from operations as a performance measure d. comparing the profit margins
Answer:
b. using its assets more efficiently in generating sales
Explanation:
The investment turnover reflect the use of the resources available.
Return on Investment/Investment = TO investment
A higher Investment TO means the investment amount had a higher yield.
The TX division was more efficient with the resource given.
The standard quantity per unit defines the ________. price that should be paid for each unit of direct materials. total cost of direct materials that should be used for each unit of finished product. amount of direct materials that should be used for each unit of finished product including an allowance for normal inefficiencies, such as scrap and spoilage. amount of direct labor-hours that should be used to produce one unit of finished goods.
Answer:
amount of direct materials that should be used for each unit of finished product including an allowance for normal inefficiencies, such as scrap and spoilage.
Explanation:
the first statement refers to price
and the third to labor
direct Labor hours per unit is called efficiency rate. it is a labor measurement.
stabdard quantity: pounds, liters or units of raw materials including waste to get 1 finished product
A restaurant has annual sales of $424000, an average inventory of $6400, and an annual cost of goods sold of $252000. (Round your answer to 1 decimal place.) What is the restaurant's days-of-supply of inventory
Answer:
It has supply for 9 complete days
Explanation:
[tex]\frac{cogs}{360} = inventory \: used \: per \: day[/tex]
252,000/360=700
this division tell us how much inventory we use per day total. COGS is an annual figure. Dividing this by 360 we get COGS per day or supply request per day
[tex] \frac{inventory}{use \: per \: day} = days \: of \: supply[/tex]
6400/700 = 9 days
in this division we check how many complete days our inventory stands for
Policies and standards are a collection of concrete definitions that describe acceptable and unacceptable human behavior. The questions related to_______________ are more appropriate for procedures or guidelines than policies or standards, which require detail that is more at the level of________________. A. where, when and how; what and why B. how; what C. where and when; what, who and why D. where, when, and how; what, who, and why
Answer:
The questions related to where, when and how are more appropriate for procedures or guidelines than policies or standards, which require detail that is more at the level of what, who and why .
Explanation:
In the first part of the question, the importance is given for procedure or guidelines. That's why where, when and how is used whereas what, who and why shows the policies or standard as it require more detailing at each level.
The where, when and how shows the vital importance of the particular thing whereas the what, who and why show the impacts of the events.
Thus, The questions related to where, when and how are more appropriate for procedures or guidelines than policies or standards, which require detail that is more at the level of what, who and why
Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $10,000 from sales $200,000, variable costs $180,000, and fixed costs $30,000. If the Big Bart line is eliminated, $20,000 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated.
Answer:
It should be continued.
Explanation:
[tex]\left[\begin{array}{ccc}-&continued&discontinued&Sales&200,000&0&Variable Costing&-180,000&0&Contribution&20,000&0&Fixed Cost&-30,000&-20,000&Net Loss&-10,000&-20,000\end{array}\right][/tex]
It is better to continue with the Big Bart Line, because the net loss would increase by 10,000 if eliminated
Answer:
Please see attachment
Explanation:
Please see attachment
A certain product costs $200 to order. The cost per unit is $25 and the cost to carry one unit in inventory for 1 year is 20% of the value of the product. Monthly demand is 1,000 units. The company operates 5 days a week, 4 weeks per month. What is the EOQ?
Answer:
The EOQ will be 980 units
Explanation:
Cost of inventory $25 x 20% = $5
order cost = $200
Monthly demand = 1,000
Annual Demand = 12,000
[tex]\sqrt{\frac{2*12000*200}{5} } = EOQ = 979,79 = 980[/tex]
We have to round up to a complete number because we cannot order 0,79 or 0,80 units If this was a material that could be a measurement in pounds it may be possible.
The Economic Order Quantity (EOQ) is the number of units a company should order to minimize its total inventory costs. Given the stated variables, this company's EOQ would be approximately 775 units.
Explanation:The subject of your question is the Economic Order Quantity (EOQ), a principle used in inventory management that determines the optimal order quantity that minimizes total inventory costs. The EOQ formula is √[(2DS)/H], where:
D is the annual demandS is the order cost per orderH is the annual holding cost per unitIn this case, D is 12,000 units per year (1,000 units per month x 12 months), S is $200, and H is $5 (20% of $25). Therefore, the EOQ in this case is √[(2*12000*200)/5] = 774.60. Thus, the company should order approximately 775 units at a time to minimize their total inventory costs.
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Brown Fashions Inc.'s December 31, 2018 balance sheet showed total common equity of $3,750,000 and 250,000 shares of stock outstanding. During 2019, the firm had $750,000 of net income, and it paid out $500,000 as dividends. What was the book value per share at 12/31/19, assuming no common stock was either issued or retired during 2019?
Answer:
$16
Explanation:
Book Value of Equity = Value of complete equity/no of equity shares
Value of equity share as on 31 Dec 2019 = $3,750,000 + Net income - Dividend
= $3,750,000 + $750,000 - $500,000 = $4,000,000
Net income is a part of common equity, but dividend paid is not part of common equity as dividend paid reduces company's assets as cash or bank balance is reduced.
Provided there is no further issue of common stock and also no common stock is retired. Therefore number of shares = 250,000
Book value per share = $4,000,000/250,000 = $16
$16
Jing Company was started on January 1, Year 1 when it issued common stock for $28,000 cash. Also, on January 1, Year 1 the company purchased office equipment that cost $15,200 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $1300. The equipment had a five-year useful life and a $5700 expected salvage value. Assume that Jing Company earned $17,400 cash revenue and incurred $11,000 in cash expenses in Year 3. Using straight-line depreciation and assuming that the office equipment was sold on December 31, Year 3 for $8900, the amount of net income or (loss) appearing on the December 31, Year 3 income statement would be:
Answer:
5,280 net income for the Year 3
Explanation:
This would be the situation:
17,400 revenue
11,000 expenses
gain/loss on sale of equipment
= net income year 3
To know the result of the sale of equipment we have to do
sales price - book value = gain/loss on sale of equipment
8900 - book value = gain/loss
We have to determinate the book value.
book value = adquisition cost - acumulated depreciation
The equipment cost 15,200 + 1,300 transportation cost = 16,500 Adquisition Cost
acumulated depreciation = depreciation per year * 3 years
and depreciation per year is:
[tex]\ $ depreciation per year $= \frac{Adquisition Value - Salvage Value }{Useful Life}[/tex]
Here we have all the values, so we stop digging and start solving.
depreciation = (16,500-5,700)/5 = 2,160acumulated depreciation = 2,160 * 3 = 6,480book value = 16,500 - 6,480 = 10,020gain/loss = 8,900 - 10,020 = -1,120 LOSS on sale of Equipmentnet income = 17,400 - 11,000 - 1,120 = 5,280 net income for the Year 3
The net income of Jing Company that would appear on the December 31, Year 3, income statement would be $5,280.
Explanation:First, let's calculate the depreciation expense for Jing Company over the three years. The initial cost of the office equipment is $15,200 plus $1,300 transportation cost (since it's FOB shipping point), totaling $16,500. The salvage value is expected to be $5,700.
With a useful life of 5 years, we have (Cost - Salvage Value) / Useful life = Depreciation expense per year, so ($16,500 - $5,700) / 5 = $2,160 per year. Over three years, the accumulated depreciation is thus $2,160 × 3 = $6,480.
The book value on December 31, Year 3 is Cost - Accumulated Depreciation = $16,500 - $6,480 = $10,020. When the equipment was sold, there was a loss of Book Value - Selling Price = $10,020 - $8,900 = $1,120.
By the end of Year 3, Jing Company earned $17,400 revenue and incurred $11,000 of expenses, in addition to the $1,120 loss from selling the equipment. As a result, the net income for Year 3 is Revenue - Expenses - Loss = $17,400 - $11,000 - $1,120 = $5,280.
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Exercise 23-5 Partially correct answer. Your answer is partially correct. Try again. The standard cost of Product B manufactured by Pharrell Company includes 3.1 units of direct materials at $6.1 per unit. During June, 26,900 units of direct materials are purchased at a cost of $5.85 per unit, and 26,900 units of direct materials are used to produce 8,500 units of Product B. (a) Compute the total materials variance and the price and quantity variances.
Answer:
price variance 6,725 favorable
quantity variance 3,355 unfavorable
Explanation:
Materials variance:
price:
actual units x (std - actual price)
26,900 (6.1-5.85) =6,725
quantity
(standard quantity - actual quantity) x std price
(8,500 x 3.1 - 26,900) x 6.1 = -3,355
Hochberg Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 50,000 machine-hours Order processing 625 orders Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries $ 433,000 Depreciation 160,000 Occupancy 169,000 Total $ 762,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabricating Order Processing Other Total Wages and salaries 20% 70% 10% 100% Depreciation 10% 30% 60% 100% Occupancy 10% 70% 20% 100% The activity rate for the Fabrication activity cost pool is closest to:
Answer:
The correct answer is 2.39
Explanation:
TOTAL WAGES AND SALARIES = $433,000
DEPRECIATION = $160,000
OCCUPANCY = $169,000
TOTAL = $762,000
here for calculating the activity rate for activity cost pool , we will only use the given percentages of wages and salaries, depreciation and occupancy in the activity cost pool -
Amount Activity cost pool Amount allocated
Wages $433,000 20% $86,600
Depreciation $160,000 10% $16,000
Occupancy $169,000 10% $16,900
TOTAL $119,500
Cost driver machine hours 50,000
Rate per machine hour $119,500 / 50,000
2.39
Therefore the activity rate for activity cost pool is 2.39
X-Tel budgets sales of $60,000 for April, $100,000 for May, and $80,000 for June. In addition, sales are 40% cash and 60% on credit. All credit sales are collected in the month following the sale. The April 1 balance in accounts receivable is $15,000. Prepare a schedule of budgeted cash receipts for April, May, and June.
Explanation:
Following is the detailed answer of the question.
X-Tel Cash Receipts Budgets For April, May, and June
APRIL MAY JUNE
Sales $60,000$ 100,000 $80,000
Less ending 36,000 60,000 48,000
account receivable (60%)
Cash receipts from 24,000 40,000 32,000
Cash sales (40% of sales)
Collections of 15,000 36,000 60,000
prior month’s receivables
Total cash receipts $39,000 $76,000 $92,000
So total cash receipts at the end of April, May and June are 39000, 76000 and 92000 respectively.
X-Tel's budgeted cash receipts for April, May, and June would be $39,000, $76,000, and $92,000 respectively. These figures are calculated considering both cash sales (40% of monthly sales amount) and collected credit sales (60% of previous month's sales)
Explanation:To determine the schedule of budgeted cash receipts, we need to work out the cash sales for each month and add that to the credit sales collected.
For April, 40% of $60,000 suggests cash sales are $24,000. In addition, the accounts receivables balance of $15,000 is collected giving you total receipts for April as $39,000.
For May, 40% of $100,000 equals $40,000 for cash sales and April's credit sales of $36,000 (60% of $60,000) are collected, to bring the total for May to $76,000.
For June, 40% of $80,000 will be $32,000 in cash sales and credit sales collected from May will be $60,000 (60% of $100,000), providing you with a total of $92,000 for June.
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Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn’s house. At the end of the current period, Emma looks over her inventory and finds that she has 700 units (products) in her basement, 29 of which were damaged by water and cannot be sold. 100 units in her van, ready to deliver per a customer order, terms FOB destination. 100 units out on consignment to a friend who owns a retail store. How many units should Emma include in her company’s period-end inventory?
Answer: 871 units
Explanation: Ending inventory is the amount of inventory a company hazs at the end of a specific period, generally at the end of the year.
.
The number of units in ending inventory can be calculated using following formula :-
Ending inventory = Inventory in hand + inventory ready for sale + invnetory sent on consignment - damaged units
Ending inventory = 700 + 100 + 100 - 29
= 871 units
Which of the following statements is true of managers' communication? a. Surveys show that most managers do not realize the need to improve communication effectiveness. b. Managers' communication is past-oriented, that is, it directs employees' attention to prior mistakes. c. Everything that a manager does and says communicates something to the employees. d. Surveys show that most managers seek continuous feedback from employees and customers. Next
Answer:
The correct option here is C) everything that a manager does and says communicates something to the employees.
Explanation:
Manager's communication is a very important function, which is used in every company where the managers use this function to communicate with each other and with employees so that all the information can pass through to everyone.
Option a) is incorrect because managers don't think that there is no need to improve communication effectiveness, there is always room for improvement and every manager knows it.
Option b) is incorrect because it is not possible that all managers uses past oriented approach for communication and they don't seek employees attention towards the prior mistakes.
Option d) is incorrect because managers don't go around asking employees for their feedback and they might ask customers for feedback a few times but not continuously.
Option c) is correct because every actions of a manager has a message for its employees, every thing that a manger does , he does it in interest of the company and he wants all his employees to follow his lead, understand what he wants from them, understand true motives behind his actions.
Managers' communication is crucial and every action and word from a manager communicates something to the employees.
Explanation:The correct statement regarding managers' communication is option c: Everything that a manager does and says communicates something to the employees. Managers' communication is crucial in conveying information, expectations, and building relationships with their employees. Every action and word from a manager can have an impact on the employees' perception and understanding of their role and responsibilities.
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Pat, a world famous musician and composer, agrees to give ten piano lessons to Quinn in exchange for $1,000. Pat's attempt to delegate his contract to Ruth, an inexperienced pianist, will probably be:
The attempt to delegate the contract to an inexperienced pianist will likely be seen as invalid, as it implies a substantial change in the quality of performance initially contracted.
Explanation:Pat's attempt to delegate his contract to Ruth, an inexperienced pianist, will probably be invalid or unenforceable. In contract law, a party to a contract (the delegator) may transfer their obligations under the contract to another party (the delegatee), however this is usually subject to certain conditions. One such condition is that the delegation does not result in a material change in the performance expected under the contract. In this case, Pat is a world famous musician and composer, implying a certain level of skill and expertise. Ruth, on the other hand, is said to be inexperienced. This suggests that Ruth's performance would not meet the standard expected under the original contract, therefore, the delegation would likely be seen as invalid.
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Consider the following information to calculate the balance of retained earnings at the end of May. Balance in retained earnings on April 30 $69,000 Dividends paid to stockholders during May $1,000 Revenues for the month of May $12,000 Expenses for the month of May 12,500 Select one: a. $43,500 b. $67,500 .$70,000 d. $94,500
Answer:
b. $67,500
Explanation:
[tex]$$Beginning Retained Earnings$$$+/- Net Income/Loss$$$- Dividends$$$Equals Ending Retained Earning[/tex]
notice that you must calculate the net income before working with retained earnings
12000 revenues - 12,500 expenses = -500 net loss
Now we can work out the Retained Earning Ending Balance:
69,000
-500 Net Loss
-1,000 Dividends
67,500
For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 290,000 Permanent difference (14,100 ) 275,900 Temporary difference-depreciation (19,700 ) Taxable income $ 256,200 Tringali's tax rate is 32%. Assume that no estimated taxes have been paid. What should Tringali report as its deferred income tax liability as of the end of its first year of operations?
Answer:
Tringali corporation should report $ 88,288 as the deferred tax liability as of the end of the first year of its operations.
Explanation:
This type of income tax is a liability which a corporation records on its balance sheet because of the difference in revenue recognition between the corporation's accounting practices and the tax laws.
Here for calculating the deferred income tax we will simply calculate the tax rate given on the taxable income of the income and also on the temporary difference in the depreciation.
DEFERRED INCOME TAX LIABILITY =
TAXABLE INCOME X TAX RATE + TEMPORARY DIFFERENCE X TAX RATE
= $256,200 X 32% + $ 19,200 X 32%
= $81,984 + $6,304
= $ 88,288
In the current year, Hanna Company reported quality-assurance warranty expense of $195,000 and the warranty liability account increased by $26,000. What were warranty expenditures during the year?
Answer: the correct answer is $169,000
Explanation: the warranty expenditures during the year is $195,000 minus the increment in the liability account $26,000 equals $169,000.
Bluff purchased equipment for business use for $35,000 and made $1,000 of improvements to the equipment. After deducting depreciation of $5,000, Bluff gave the equipment to Russett for business use. At the time the gift was made, the equipment had a fair market value of $32,000. Ignoring gift tax consequences, what is Russett's basis in the equipment
Answer:
After ignoring the gift tax basis, the Russett's basis in the equipment is equal to $31,000
Explanation:
For answering this question it is important that we have knowledge of the IRS publication 555, according to which we can take out the donee basis in the property ( in this case donee is Russett's ) in the situation when market value of the property is equal to or greater than the donors ( Bluff ) adjusted basis.
Then the donee basis will be equal to the donors adjusted basis of property.
In this case we will first take out donors ( bluff ) adjusted basis for equipment,
= $35,000(purchase value) + $1000(improvement) - $5000 (depreciation)
= $31,000
So here we can say that donors adjusted basis is less than market value , so in this case the russetts basis will be equal to bluff adjusted basis for property which is equal to $31,000.
James and Amanda are brother and sister who still live at home with their parents. Amanda is almost completely finished with her classes and is scheduled to graduate in a few months while James has only completed three courses. Amanda allows James to use her work from all of her past classes and to turn them in as his own. This is, a. not plagiarism because James and Amanda are related. b. a type of plagiarism called sharing work (collusion). c. a type of plagiarism called fabrication. d. not plagiarism because the tuition for both James and Amanda is paid by their parents so they can use the answers.
Answer:
The correct option is b) a type of plagiarism called sharing work ( collusion)
Explanation:
Plagiarism is a very unethical and unprofessional thing a person can do. It actually means when take some other persons thought, idea ,or any work and show it as your own, sometimes people do it intentionally and unintentionally.
In the question given above, it is the above it is a case of share working which is also know as collusion, this type of situation arises when a person passes on his or her work to other person willingly, as you can see the same thing has happened in this question as Amanda has allowed James to use her work as her own.
Sue sells authentic Amish quilts on her website. Suppose Sue expects to sell 3 comma 000 quilts during the coming year. Her average sales price per quilt is $ 275, and her average cost per quilt is $ 150. Her fixed expenses total $ 225 comma 000. Compute her margin of safety a. in units (quilts). b. in sales dollars. c. as a percentage of expected sales.
Answer:
(A) 1,200 Margin of Safety_{units}
(B) 330,000 Margin of Safety_{usd}
(C) Margin of Safety 40% of Sales
Explanation:
(A)
[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]
275 - 150 = 125 CM per unit
[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]
[tex]\frac{225,000}{125} = 1,800 = Break\: Even\: Point_{units}[/tex]
[tex]{units \: sold- BEP_{units} = margin \: of \: safety_{units}[/tex]
3,000 - 1,800 = 1,200 Margin of Safety_{units}
HOW? we Calculate the contribution per unit. Then the BEP in units and with that the margin of safety in units.
(B)
[tex]\frac{Contribution Margin}{Sales Revenue} = $Contribution Margin Ratio[/tex]
125/275 = 0.45454545 = 5/11 CM ratio
[tex]\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}[/tex]
225,000/(5/11) = 495,000 BEP USD
[tex]{current \:sales - BEP_{USD} = margin \: of \: safety[/tex]
825,000-495,000 = 330,000 Margin of Safety_{usd}
HOW? we Calculate the contribution ratio by dividing CM over sales. Then the BEP in dollars and with that the margin of safety in dollars.
Important: When posible to avoid rounding errors express as fraction iof posible
(C)
[tex]\frac{current \:sales - BEP_{USD}}{current \:sales} \times 100 = margin \: of \: safety[/tex]
[tex]\frac{330,000}{825,000} \times 100 = margin \: of \: safety[/tex]
Margin of Safety 40%
275-150 = 125
The Break even point225000/125
= 1800
The margin of safety3000-1800
= 1200
The contribution margin125/175 = 0.4545
Break even point225000/0.4545
= $495,049
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After Jeff Bezos read about how the Internet was growing by 2,000 percent a month, he set out to use the Internet as a new distribution channel and founded Amazon, which is now the world's largest online retailer. This is clearly an example of a(n)A. firm that uses closed innovation. B. entrepreneur who commercialized invention into an innovation. C. business that entered the industry during its maturity stage. D. exception to the long tail business model
Answer:
B. entrepreneur who commercialized invention into an innovation
Explanation:
A- there wasn't any firm before
C- the business was growing not at maturity state
D.- his business is a distribution channel it is not relater to find niche markets
B.- He use an invention The Internet to innovate in the ways product are distribute and comercialized. It made an innovation(it didn't exist before) out of the invention
Mary, a restaurant manager for a national chain of restaurants, and the other managers in her district, during weekly conference calls, explain to their district manager the reasons for different decisions; they also explain why certain costs and sales were higher or lower than they were the previous week. ________ is the explanation of their decisions and work results.
Your question asks what would be the best word to describe the decisions and work results explained to the district manager.
Answer: AccountabilityThe reason why "Accountability" would be the correct answer is because this is the word that best describes what the managers are reporting to the district manager.
The managers that are working for a business/company would need to tell or report any work results and decisions to the manager that is a higher rank than them, in this context the district manager would be higher than the restaurant manager.
There are manager positions that are not the highest positions, there is most likely a more higher manager position, and that is represented in this question.
The managers need to be responsible by telling the manager that's a higher rank than them about their plans and the results about their work, in order for the higher manager to know what's going on.
I hope this helps!Best regards,MasterInvestor