Answer:
Given that,
On august 5,
Firm charged = 200 hours of lawyer time
Rate per hour = $340
Therefore,
Salaries payable = Number of hours × Rate per hour
= 200 hours × $340 per hour
= $68,000
Hence, the journal entry for this transaction is as follows:
Work in process A/c Dr. $68,000
To Salaries payable A/c $68,000
In 2014, Wire Corp. had sales of $740,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $550,000, $90,000, and $95,000, respectively. In addition, the company had an interest expense of $94,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.)
What is the company's operating cash flow?
Answer:
The company's operating cash flow is $100,000
Explanation:
The computation of the operating cash flow is shown below:
= EBIT + Depreciation - Income tax expense
where,
EBIT = Sales - cost of good sold - depreciation expense - administrative and selling expenses
= $740,000 - $550,000 - $95,000 - $90,000
= $5,000
The income tax expense equals to
= (Sales - cost of good sold - depreciation expense - administrative and selling expenses - interest rate) × tax rate
= ( $740,000 - $550,000 - $95,000 - $90,000 - $94,000) × 35%
The amount comes in negative so we cannot compute the tax expense as corporation is suffering from the net loss
And all other items would remain same
Now put these values to the above formula
So, the value would equal to
= $5,000 + $95,000 - $0
= $100,000
The Model for Improvement begins with three questions designed to clarify the following concepts: (A) Plan, do, act (B) Mission, goal, strategy (C) Aims, measures, changes (D) Will, ideas, and execution
Answer:
The correct answer is C.
Explanation:
The Improvement Model is mainly based on three fundamental questions about any type of improvement that is sought. These questions pursue the following topics: address the aim, achieving understanding that it is to achieve, the measures to use, both to implement and to know if the change will represent a real improvement, and finally the changes to use to result in an improvement.
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In 2017, Wagner Industries purchased a piece of equipment with an estimated useful life of 10 years. Each year, Wagner expenses 1/10 of the equipment’s cost. This is an example of A : depreciation. B : goodwill. C : unethical accounting practices. D : an operating cycle
Answer:
This is an example of A : depreciation
Explanation:
Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value.
Keisha owns a house worth $275,000 with a mortgage of $195,000. She owns a car worth $12,000 and has $7,500 in car loans. She has $3,000 in investments, $2,700 in a bank account, and owes $1,500 on a credit card. What is Keisha’s net worth?
Answer: $88,700
Explanation:
Given that,
House value = $275,000
Mortgage = $195,000
Car value = $12,000
Car loans = $7,500
Investments = $3,000
Bank account = $2,700
Owes on a credit card = $1,500
Keisha’s net worth:
= House value - Mortgage + Car value - Car loans + Investments + Bank account - Owes on a credit card
= $275,000 - $195,000 + $12,000 - $7,500 + $3,000 + $2,700 - $1,500
= $88,700
Keisha owns a house worth $275,000 with a mortgage of $195,000. She owns a car worth $12,000 and has $7,500 in car loans. She has $3,000 in investments, $2,700 in a bank account, and owes $1,500 on a credit card. Keisha's net worth is $88,700.
To calculate Keisha's net worth, we need to subtract her liabilities (debts) from her assets (what she owns). Let's break it down:
Assets:
- House worth $275,000
- Car worth $12,000
- Investments totaling $3,000
- Bank account balance of $2,700
Total Assets: $275,000 + $12,000 + $3,000 + $2,700 = $292,700
Liabilities:
- Mortgage of $195,000
- Car loans totaling $7,500
- Credit card debt of $1,500
Total Liabilities: $195,000 + $7,500 + $1,500 = $204,000
Net Worth:
Net Worth = Total Assets - Total Liabilities
Net Worth = $292,700 - $204,000
Net Worth = $88,700
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Billie Jean has $120 to spend and wants to buy either a new amplifier for her guitar or a new mp3 player to listen to music while working out. Both the amplifier and the mp3 player cost $120, so she can only buy one. This illustrates the basic concept that- trade can make everyone better off.- people face trade-offs.- rational people think at the margin.- decisions made at the margin are not particularly important.
Answer:
People face trade-offs.
Explanation:
A trade off is a giving up of one thing in return for another. All of the alternatives that we give up when we choose one course of action over the other.
Is a sacrifice of one good to purchase or produce another good. Must be maid because when a resource is used to produce one good, that same resource cannot be used to produce another.
Is an alternative that you face if you decide to do one thing rather than other. There is a choose to use resources in one way and not the other.
On January 1,2013, James Company reported total current assets of $658,000 and total current liabilities of $365,000. During the year, James purchased $2,000 worth of equipment for cash, paid $560 towards salaries, and borrowed $80,000 from its bank to be repaid after 5 years. Compute James' working capital as of December 31, 2013.
A. $293,000
B. $335,400
C. $370,440
D. $290,440
Answer: Option (C) is correct.
Explanation:
Total current assets = $658,000
Current Assets = total current assets - purchased equipment - salaries paid + Borrowings
= $658,000 - $2000 - $560 + $80000
= $735,440
Total current liabilities = $365,000
Working Capital of James as on December 31, 2013:
= Current Assets - Current Liabilities
= $735,440 - $365,000
= $370,440
You are the manager of the public transit system. You are informed that the system faces a deficit, but you cannot cut service, which means you cannot cut costs. Your only hope is to increase revenue by increasing fares. You are advised that the estimated price elasticity of demand for the first few months after a price change is about −0.3. Select the statement that best describes the results of raising the fare in the short run.a. Total revenue falls, since demand changes and becomes price inelastic. b. Total revenue will rise incrementally as the demand fuctuates and price moves back and forth between being elastic and inelastic. c. Total revenue rises immedately after the fare increase, since demand over the immediate period is price Inelastic.
Answer:
Total revenue rises immedately after the fare increase, since demand over the immediate period is price Inelastic.
Explanation:
Elasticity in the price demand measures the porcentage in the change of the quantity demanded as a response to a change in the price. If the elasticity is more than 0 but less than 1 it means that the price demand is inelastic. So when the price is rised the quantity demand will decrease in a minor porcentage than the rise in the price so it will represent a bigger revenue.
If import restrictions remain in effect after an infant industry becomes competitive in the domestic market, consumers in this domestic market will pay a price which is ________ the world price for the product.
A. higher than
B. lower than
C. the same as
D. All of the above are equally likely.
Answer: higher than
Explanation: The stockholders of companies in the infant industry gain when they are protected from world competition
-Consumes in that country will therefore pay a price higher than the world price.
ABC Company's preferred stock pays a constant dividend of $2 per share in perpetuity (Zero Growth). If the required return is 8%, what price should you be willing to pay for the stock?
Answer:
Price per share of preference share = $25
Explanation:
Preference dividend is generally fixed, and does not change as there is a standard rate prescribed at the time of issue of preference shares.
Provided here is, dividend for preference shares = $2
Expected return each year = 8%
Expected growth = 0%
Thus, cost or price per share of preference stock = Dividend/Expected Return = $2/8% = $25 each share.
Rico’s Taqueria had cash inflows from operating activities of $35,000; cash outflows from investing activities of $30,000, and cash outflows from financing activities of $20,000. Calculate the net increase or decrease in cash.
Answer:
$15,000 decrease
Explanation:
The formula for calculating the net increase or the decrease in the cash is:
[tex]Net\ change\ in\ the\ cash\ =\ Cash\ inflows\ from\ operations\ -\ Cash\ outflows \from\ investing\ +\ Cash\ inflows\ from\ financing[/tex]
Given that:
Cash inflows from the operations = $35,000
Cash Flows from the Investing Activities = $30,000
Cash Flows from the Financing Activities = $20,000
Net Increase/Decrease in Cash = $35,000 - $ 30,000 + $ 20,000
Net Increase/Decrease in Cash = - $15,000
Since, negative sign signifies decrease.
So, there is net decrease of $15,000 in cash.
If a firm's average total cost is less than price where MR = MC,
A. the firm should cut back on its output to lower its cost.
B. the firm should raise its price.
C. the firm should produce if its price exceeds average variable cost.
D. the firm should shut down.
Answer:
C. the firm should produce if its price exceeds average variable cost.
Explanation:
WHen average total cost is less that price, this means you are making a profit, and since they are in the equilibrium sate with Margina revenue being equal to marginal cost, they are in the sweet spot of production, so the only thing left for them is producing if its price exceeds average variable cost, and that would maximize their profits.
What are dividend payments?
A) payments made to a company by investors for a share of the ownership of that company.
B) incremental increases in the value of the stock held by an investor due to rises in share price.
C) the difference between the original cost price of a share and the price an investor receives when that share is sold.
D) a share of the profits paid to each shareholder on the basis of the number of shares they hold.
Answer:
D) a share of the profits paid to each shareholder on the basis of the number of shares they hold.
Explanation:
Dividend: The dividend is distributed when the company is earning profits. If the company is suffering losses, then no dividend is declared. In this, the priority is given to the preference shareholders then equity shareholders.
After distributing the dividend to the shareholders, the balance would be transferred to the retained earnings which is come under shareholder equity in the balance sheet.
So, based on their holding shares, the dividend is paid to each shareholder.
Taylor takes her employees' opinions into consideration via reasoning and discussion when making departmental decisions. Which of the following answers best describe Taylor's experience with her role models, also known as parental authority?A. FlexibleB. AuthoritarianC. DismissiveD. Permissive
Answer:
The correct answer is A. Flexible.
Explanation:
Flexibility allows the leader to adapt their behavior to develop the most appropriate responses to different situations. And leaders are more valuable in an organization when they are able to adapt to the responsibilities of different positions.
Successful managers are flexible and open-minded. Always willing to change and attentive to take advantage of the opportunities that emanate from them. They are risky and easily adapt to new and unknown situations. They are like chameleons. They know how to take advantage of the surrounding conditions.
Regan grows flowers and makes ceramic vases. Jayson also grows flowers and makes ceramic vases. Regan can produce 3 times as many vases in a day as Jayson, and Regan can grow twice as many flowers in a month as Jayson. Who would gain from trade between Regan and Jayson?
Answer:
Both would gain
Explanation:
Regan and Jayson are two people who are in the same business or trades. They both grows flowers and make ceramic vases.
But Regan is better in producing both the items. Regan produces ceramic vases 3 times in a day as many vases Jayson produces and can grow twice as many flowers as Jayson in a month.
Now both Regan and Jayson can do the business and benefit if they try to focus on the comparative advantage of the market.
Hence both Regan and Jayson will gain from the trade.
Answer:
B
Explanation:
its the only obviose answer
Consider a situation in which a utility company emits high levels of sulfur dioxide and the company is not liable for the damages its pollution causes. According to the Coase theorem, government action is _____________ to achieve an __________ amount of pollution.
a) necessary; equitable
b) necessary; efficient
c) not necessary; equitable
d) not necessary; efficient
Answer:
d) not necessary; efficient
Explanation:
Coase theorem focuses on mutual negotiation between the parties in conflict rather than involvement of the third parties that is government in order to increase any utility or services.
Although the pollution in the given instance shall not exceed the maximum acceptable level.
Thus, it shall be efficient amount of pollution.
In that case, no government shall regulate in between.
The contribution margin income statement presents ________ above the contribution margin line.
A. all variable expenses
B. all fixed expenses
C. only fixed expenses relating to selling and administrative activities
D. only variable expenses relating to selling and administrative activities
Answer:
A. all variable expenses
Explanation:
Contribution margin: It is a margin which shows a difference between the sales revenue and the all variable cost/ expenses.
In mathematically,
Contribution margin = Sales revenue - variable expenses
It is computed by considering both the things i.e sales revenue and the variable expenses
And, if we want to compute the net income, So we use fixed expenses
Net income = Contribution margin - Fixed expenses
A contribution margin income statement presents all fixed expenses above the contribution margin line because variable costs and revenue are presented below the contribution margin line.
Explanation:In a contribution margin income statement, above the contribution margin line, you will typically find B. all fixed expenses. This is because the contribution margin income statement separates costs into variable and fixed costs. Variable costs are subtracted from sales to calculate the contribution margin. Then, fixed costs are subtracted from the contribution margin to compute net operating income or loss. Hence, variable costs and revenue are presented below the contribution margin line, and fixed costs are presented above it.
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Which of the following choices correctly depicts activities that would be included in a manufacturer's value chain? Research and Development Marketing Distribution A. Yes Yes No B. Yes No Yes C. Yes Yes Yes D. No Yes No E. No Yes Yes
Answer:
c yes yes
Explanation:
Answer:
its C.) yes yes yes
Explanation:
Luka, who owns a small breakfast and salad bar, has a reputation in the community as a tough manager. Many customers have heard Luka yell at his employees because he feels that workers today are lazy, lack ambition, and hate to work. Luka is a(n) ____ manager.
Luka is an authoritarian manager known for closely supervising and controlling employees through directives and disciplinary actions.
Luka, described in the scenario, can be characterized as a traditional or authoritarian manager. This type of management style is evident when a manager believes their employees are inherently unmotivated and thus must be supervised closely and controlled through directives and disciplinary actions.
The described behavior, such as yelling at employees and having a negative view of their work ethic, suggests Luka operates under the assumption that employees need to be pushed to perform their duties.
While this may ensure immediate compliance, it typically does not foster a positive work environment, could lead to high employee turnover, and might adversely affect customer perceptions of the business.
The following passage would be appropriate for a document aimed at a multicultural audience: Two companies found themselves in the financial equivalent of sudden-death overtime. The first to raise the necessary capital would be the one to survive. True or false?
Answer:
True
Explanation:
Sufficient capital and proper investment in different projects helps the companies and organisations to survive in this tough market.
Now the companies that have found themselves in a critical financial situations which is equivalent to sudden-death overtime is very likely to shut down or close if sufficient capital is not generated.
People can make investment or can also buy shares to make the company survive. Thus the company that will be the first to raise certain money or make some necessary capital will be the first to survive in this market.
Thus the answer is true.
The seaport town of New Monopoly has become extremely popular with shipping companies due to its superior location. The port has become so congested that ships must wait hours every day just to dock. This is an example of:1- marginal analysis.2- a private good.3- a recession.4- market failure.B: The mayor of New Monopoly realizes that the congestion at the port costs the shipping companies and his town money. Which decision would NOT move him towards a command economy?1- The mayor orders the port\'s employees to work extra hours.2- The mayor decides to only allow the five most profitable shipping companies to use the port.3- The mayor decides to let individual firms and consumers find a solution for the excessive wait time.
Answer:
The correct answer is option 4.
B. The correct answer is option 3.
Explanation:
The seaport town here became extremely popular with shipping countries due to its location. It increased the demand for docking at the port. As a result, the port became congested and ships must wait for hours. This is an example of market failure.
Here, the market is not able to efficiently allocate the product. The demand for the port is higher than what the market is able to supply efficiently.
A command economy can be defined as the economy in which the activities are controlled by any central agency, generally a government.
The Mayor instead of controlling if tries to solve the problem through the working of the market forces then it would be farthest from a command economy. If Mayor intervenes in any way then it is a command economy.
Final answer:
Congestion in the seaport town of New Monopoly exemplifies market failure. The decision to let firms and consumers find their own solution to this situation aligns with market principles rather than those of a command economy. Hence, the correct option for part A is 4 and the correct option for part B is 3
Explanation:
The situation described in the seaport town of New Monopoly, where ships must wait hours every day just to dock, is an example of market failure. Market failure occurs when the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss. Congestion is a type of market failure because it indicates that the port's infrastructure cannot handle the volume of traffic being directed towards it, therefore failing to distribute docking access properly and efficiently.
Regarding the decision that would NOT move the mayor towards a command economy, choosing to let individual firms and consumers find a solution for the excessive wait time would be most aligned with free market principles. A command economy implies government control over economic decisions such as resource allocation and production. When the mayor allows market forces to address the port congestion, he is leaning towards market solutions rather than command economy approaches.
Suppose a student has 3 hours of time to spend at her apartment before afternoon classes. She has the option of doing laundry, studying for a test, or watching television. If she decides to do laundry, then her opportunity cost isA) watching televisionB) studying for the testC) watching television and studying for the testD) either watching television or studying for the test, whichever would have been her second choice to doing laundry
Answer:
The correct answer is option D.
Explanation:
The opportunity cost of a decision can be defined as the cost of foregoing the second-best alternative. In other words, the benefit that could have been earned if the alternative was not given up.
Here, time is the scarce resource and its uses are doing laundry, studying for a test or watching television. If the student chooses to do laundry her opportunity cost will be either watching television or studying, whichever was her second-best choice.
Presented below are selected account balances for Homer Winslow Co. as of December 31, 2014.Inventory 12/31/14 $60,180 Cost of Goods Sold $225,870Common Stock 75,870 Selling Expenses 17,400Retained Earnings 48,850 Administrative Expenses 39,150Dividends 19,080 Income Tax Expense 30,180Sales Returns and Allowances 13,650 Sales Discounts 15,290 Sales Revenue 411,940 Prepare closing entries for Homer Winslow Co. on December 31, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer:
Explanation:
The closing entry for the following accounts are shown below:
1. Sales Revenue A/c Dr $411,940
To Income Summary $411,940
(Being revenue account closed)
2. Income summary A/c Dr $341,540
To Cost of Goods Sold $225,870
To Sales Returns and Allowances $13,650
To Sales Discounts $15,290
To Selling Expenses $17,400
To Administrative Expenses $39,150
To Income Tax Expense $30,180
(Being expenses accounts are closed)
3. Income summary A/c Dr $70,400 ( $411,940 - $225,870)
To Retained earning $70,400
(Being the difference is credited to retained earning)
4. Retained earnings A/c Dr $19,080
To Dividend A/c $19,080
(Being dividend account is closed)
One of the largest and most successful growth centers within metropolitan paris is called:
The accounting principle that ensures all expenses are recorded during the period when they are incurred and offsets those expenses against the revenues of the period is called the ________ principle.
Answer:
The correct answer is Congruence.
Explanation:
Any company that makes its financial statements available to the public will conform to GAAP standards. The congruence principle is one of the fundamental lines established by the Financial Accounting Standards Board (FASB) This process is different from the cash accounting principles that the total amount of income or expenses is recorded regardless of when They have an impact on the cash flow of the company. The GAAP congruence principle helps to provide a clear and accurate picture of cash on hand, the revenue generated and expenses incurred at a specific point in time (see Resources below).
In order to minimize errors and provide accurate account information during the accounting period, companies can recognize expenses and revenues that occur within a time-giving period. The GAAP congruence principle recognizes expenses when they are incurred, and when it distinguishes between deferred income and accrued expenses in order to determine its real value of the company at a given time.
The matching principle in accounting ensures that expenses are recorded when incurred and matched with the revenues they help to generate during that period. This is different from tax-related principles like the benefit principle taxation and the ability to pay principle.
Explanation:The accounting principle that ensures all expenses are recorded during the period when they are incurred and offsets those expenses against the revenues of the period is called the matching principle. This principle is central to accrual accounting and requires that companies report expenses at the same time as the revenues they are related to. Expenses are matched to revenues in the financial statements during the period in which the transaction occurs, not necessarily when the cash is paid or received. By doing so, this provides a more accurate picture of a company's financial position and performance for that period.
Regarding the principles around taxes mentioned, these are slightly different concepts. The benefit principle taxation suggests that those who benefit from government services should pay in proportion to the benefits they receive, whereas the ability to pay principle suggests that taxes should be levied on a person according to how well they can shoulder that burden.
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Which of the following terms accurately describes functional strategies that are properly aligned, traceable to the business strategy, and require coordination among multiple functional areas? a. agile strategies
b. supply chain strategies
c. traceable strategies
d. cross-functional strategies. cross-functional strategies.
Answer:
d. cross-functional strategies
Explanation:
In an organisation, for the proper running of all the departments or functions, proper communications and coordination is required. So implementing the cross-functional strategies can succeed when all the functional areas of the organisation are properly coordinated with each other. And by implementing these strategies we can trace out the business strategy with supporting of all functional areas. These are useful to place all functional strategies properly.
Thus the answer is d. cross-functional strategies.
Mayer Inc an advertising firm, has a horizontal structure with simple rules and procedures. It achieves targets by having personal means of coordination. The firm values the existence of informal groups and does not believe in division of labor. Which of the following designs is being used by Mayer Inc.?A. OrganicB. CentralizedC. BureaucraticD. FormalE. Authoritative
Answer:
The answer is A) Organic structure
Explanation:
An organic organizational structure can be described as:
very flexibleextremely flat reporting structure (horizontal), few layers of management a manager usually controls a large number of employees, not much direct supervisionrelies on employees having high interdependence (work as a team)adapts well to changesThe top management of Mayer Inc. probably chose an organic organizational structure in order to foster creativity and team work.
Brain Boost Inc. is a leading educational toy company. Competitors across the globe have failed to imitate Brain Boost's production models, supply chain systems, knowledge systems, and culture. These attributes have remained unique to Brain Boost Inc. for a long time. Which of the following assumptions of the resource-based model of competitive advantage does this scenario best illustrate?
Answer:
Resource Immobility
Explanation:
A critical assumption of the resource-based model—resource immobility—is that resources tend to be "sticky" and don't move easily from firm to firm. Because of that stickiness, the resource differences that exist between firms are difficult to replicate and, therefore, can last for a long time
Christina is an economist who believes that shifts in aggregate demand cause both a change in real output and the price level. She believes that an economic recession will not necessarily self-correct in the long run, and therefore she believes that active fiscal and monetary policy is justified to smooth out the business cycle. Christina is best described as a _____.
A.classical economist.B.Keynesian economist.C.supply-side economist.D.monetarist.E.rational expectations economist.
Answer:
B.Keynesian economist
Explanation:
Keynesian economist -
It was developed in 1930s by John Maynard Keynes , a British economist .
It is the theory of the total spending in the economy and its effect on inflation and output .
It is a demand - side theory which focus on the changes in the economy on short run .
Hence , Christina is best described as a Keynesian economist .
Donna manages the service desk and makes routine decisions related to customer refunds and merchandise returns. Donna also oversees the daily tasks of the cashiers and front desk employees. Donna is a(n) ________ manager.
Answer:
First-Line
Explanation:
According to my research on roles and responsibilities within a business, I can say that based on the information provided within the question Donna is a First-Line manager. This is the management role right above non-managerial floor employees. First-Line managers are responsible supervising the employees, fixing work hour schedules, and solving customer problems that the employees cannot handle.
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Like many consumer products manufacturers, Frito-Lay gives its resellers discounts to encourage them to carry and promote its products. When doing so, Frito-Lay uses a(n) _______ strategy.
Answer:
The correct answer is "push strategy"
Explanation:
The term push strategy or push promotional strategy refers to create or increase the customer demand of a good or services, through promotions or discounts that applied to the resellers and retailers, to promote his products and maintain a reputation on the markets.