Answer:
Land $434,696
Land improvements $108,609
Building $1,720,600
To Cash $2,263,905
(Being the amount paid in cash is recorded)
Explanation:
The journal entry is shown below:
Land $434,696
Land improvements $108,609
Building $1,720,600
To Cash $2,263,905
(Being the amount paid in cash is recorded)
The land, land improvements and the building increases the assets so it is debited while the cash is credited as the cash is paid
The computation of the land is shown below:
= Purchase price of the land + purchase price for the old building + paid amount for tear down the old building + cost to fill and level the lot
= $224,000 + $119,000 + $37,000 + $54,696
= $434,696
First National Bank (FNB) has a reserve ratio of 20 percent, a required reserve ratio of 10 percent, and deposits of $1,000. If FNB receives an additional deposit of $100, Group of answer choices then it has required reserves of $210 and holds excess reserves of $10. then it has required reserves of $10 and holds excess reserves of $20. then it has required reserves of $110 and holds excess reserves of $190. then it has required reserves of $110 and holds excess reserves of $0.
Answer:
The correct answer is then it has required reserves of $110 and holds excess reserves of $190.
Explanation:
According to the scenario, computation of the given data are as follows:
Total deposit = $1,000 + $100 = $1,100
So, we can calculate the total reserve required by using following formula:
Total reserve required = 10% × Total deposit
= 10% × $1,100 = $110
And Previous excess = $100
Current access = $90
So, Excess reserve = Previous excess + Current access
= $100 + $90
= $190
The corporate charter of Llama Co. authorized the issuance of 10 million, $1 par common shares. During 2016, its first year of operations, Llama had the following transactions:January 1 sold 8 million shares at $15 per shareJune 3 purchased 2 million shares of treasury stock at $18 per shareDecember 28 sold the 2 million shares of treasury stock at $20 per shareWhat amount should Llama report as additional paid-in capital in its December 31, 2016, balance sheet?$122 million$116 million$112 million$74 million
Answer:
$116 million
Explanation:
January 1 8,000,000*(15-1) =$112,000,000
December 28 Treasury stock sold 2,000,000*(20-18)=$4,000,000
Paid in Capital At December 31,2016 $116,000,000
Sandstone, Inc. is considering a fourminusyear project that has an initial afterminustax outlay or afterminustax cost of $80,000. The future cash inflows from its project are $40,000, $40,000, $30,000 and $30,000 for years 1, 2, 3 and 4, respectively. Sandstone uses the net present value method and has a discount rate of 12%. Will Sandstone accept the project?
Answer:
NPV = $28020.99
so he accept the this project as NPV value is positive
Explanation:
given data
CF 0 = $80000
CF 1 = $40000
CF 2 = $40000
CF 3 = $30000
CF 4 = $30000
discount rate r = 12%
solution
we get here Net present value (NPV) of the project that is total sum of the current value of all flow that is express as
NPV = [tex]- CF 0 + \frac{CF1}{(1 + r)} + \frac{CF 2}{(1 + r)^2} + \frac{CF3}{( 1+ r)^3} + \frac{CF4}{(1+r)^4}[/tex] ...........................1
put here value and we get
NPV = [tex]- 80000 + \frac{40000}{(1+ 0.12)} + \frac{40000}{(1+ 0.12)^2} + \frac{30000}{( 1 + 0.12)^3} + \frac{30000}{(1+ 0.12)^4}[/tex]
solve it we get
NPV = - 80000 + 35714.29 + 31887.76 + 21353.41 + 19065.54
NPV = $28020.99
so he accept the this project as NPV value is positive
The Consumer Price Index A. is the ratio of the average price of a typical basket of goods to the cost of producing those goods B. compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2 C. measures the average of the prices paid by urban consumers for a fixed basket of goods and services D. measures the increase in the prices of the goods included in GDP
Answer:
compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period.
Explanation:
The consumer price index refers to the price change with related to the goods and services consumed by the consumer or purchased i.e foods, medicine, clothing, etc
Moreover, it also determines the changes in the price level as compare to the base year
And, there is a negative relationship between the price level and the money value.
Which of the statements below is TRUE? A. The increase in working capital accounts necessary to support a project also provides for cost increases at the end of the project. B. Decreases in accounts payable constitute a source of cash flow because you are using your suppliers to help finance your business operations. C. An increase in working capital can be brought about by an increase in inventory. D. Decreases in accounts receivables constitute a use of cash flow because you are helping your customers finance their purchases.
Answer:
C. An increase in working capital can be brought about by an increase in inventory.
Explanation:
A. The increase in working capital accounts necessary to support a project also provides for cost increases at the end of the project. False
If a project begins, the working capital is increased at the beginning due to additional resources and operations and are realized at termination of assets.
B. Decreases in accounts payable constitute a source of cash flow because you are using your suppliers to help finance your business operations. False
Decrease in the Accounts payable balance means that the company has paid more of its credit purchases than the purchases made for the month
Therefore, decrease in accounts payable is a source of cash outflow. Therefore, dues are paid back using cash in hand.
C. An increase in working capital can be brought about by an increase in inventory. True
Working capital is the capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities. Therefore, an increase in working capital can be brought about by an increase in the amount of assets which is inventory.
D. Decreases in accounts receivables constitute a use of cash flow because you are helping your customers finance their purchases. False
The accounts receivable asset shows how much money customers who bought products on credit still owe the business; this asset is a promise of cash that the business will receive. Cash doesn’t increase until the business collects money from its customers. Therefore, decrease in accounts receivables is a source of cash flow with better ways of recovering cash from your customers.
Statz Company had sales of $1,800,000 and related cost of goods sold of $1,150,000 for its first year of operations ending December 31, 20Y1. Statz provides customers a refund for any returned or damaged merchandise. At the end of 20Y1, Statz Company estimates that customers will request refunds for 1.5% of sales and estimates that merchandise costing $16,000 will be returned. Assume that on February 3, 20Y2, Buck Co. returned merchandise with an invoice amount of $5,000 for a cash refund. The returned merchandise originally cost Statz Company $3,100.
Answer and Explanation:
Journal Entry Statz Company
a) 31-Dec-2021
Dr Sales (1,800,000*1.5%) $27,000.00
Cr Refunds Payable to Customer $27,000.00
Dr Estimated Returns Inventory $16,000.00
Cr Cost Of Merchandise Sold $16,000.00
b) 3-Feb-2022
Dr Refunds Payable to Customer$5,000.00
Cr Cash $5,000.00
Dr Merchandise Inventory $3,100.00
Cr Estimated Returns Inventory $3,100.00
Martinez, Inc. acquired a patent on January 1, 2017 for $41,800 cash. The patent was estimated to have a useful life of 10 years with no residual value. On December 31, 2018, before any adjustments were recorded for the year, management determined that the remaining useful life was 6 years (with that new estimate being effective as of January 1, 2018). On June 30, 2019, the patent was sold for $26,800.
Answer:
Martinez, Inc. acquired a patent on January 1, 2017 for $41,800 cash. The patent was estimated to have a useful life of 10 years with no residual value. On December 31, 2018, before any adjustments were recorded for the year, management determined that the remaining useful life was 6 years (with that new estimate being effective as of January 1, 2018). On June 30, 2019, the patent was sold for $26,800. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Required:
a. Prepare the journal entry to record the acquisition of the patent on January 1, 2017.
b. Prepare the journal entry to record the annual amortization for 2017.
c. Compute the amount of amortization that would be recorded in 2018. (Round your final answer to the nearest whole dollar.)
d. Determine the gain (loss) on sale on June 30, 2019. (Round your intermediate calculations and final answer to the nearest whole dollar.)
e. Prepare the journal entry to record the sale of the patent on June 30, 2019. (Round your intermediate calculations and final answer to the nearest whole dollar.)
a) Journal Entry to record acquisition of patent:
January 1, 2017:
Debit Patent Account with $41,800
Credit Cash Account with $41,800
Being acquisition of patent with cash
b. Prepare the journal entry to record the annual amortization for 2017.
Annual amortization = $41,800/10 years = $4,180
Journal entry to record the annual amortization for 2017:
December 31, 2017
Debit Amortization Expenses with $4,180
Credit Accumulated Patent Amortization with $4,180
Being 2017 amortization expense.
c. Compute the amount of amortization that would be recorded in 2018. (Round your final answer to the nearest whole dollar.)
New amortization for 2018 would be ($41,800 - $4,180) /6 years = $6,270
d. Determine the gain (loss) on sale on June 30, 2019. (Round your intermediate calculations and final answer to the nearest whole dollar.)
Loss on sale on June 30, 2019:
Patent Account minus accumulated amortization to date
2019 Amortization up to June 30, 2019 = $6,270/2 = $3,135
Accumulated amortization = 2017 + 2018 + 2019 amortizations
= $(4,180 + 6,270 + 3,135) = $13,585
Patent Book Value = $41,800 -$13,585 = $28,215
Loss on sale = Sales minus book value = $(26,800 - 28,215) = ($1,415)
e. Prepare the journal entry to record the sale of the patent on June 30, 2019. (Round your intermediate calculations and final answer to the nearest whole dollar.)
Journal entries to record the sale of the patent on June 30, 2019:
June 30, 2019:
Debit Cash with $26,800
Debit Loss on Sale with $1,415
Credit Patent Account with $ $28,215
Being cash and loss realized on sale of patent.
Debit Amortization with $3,135
Credit Accumulated Amortization with $3,135
Being amortization expense for 6 months.
Debit Accumulated Amortization with $13,585
Credit Patent Account with $13,585
Being entries to close the accounts.
Explanation:
Amortization is the depreciation term for intangible assets. While tangible assets are depreciated over their useful life, intangible assets are amortized.
The essence is to match revenue over the periods for which the cost was incurred in accordance with GAAP.
Similar treatments are given to amortization like depreciation, including annual expensing, accumulation, and loss and gain on sale or retirement of the intangible.
he following information is available for Jacqui's Jewelry and Gift Store: Net Income $5,000 Depreciation Expense 2,500 Increase in Deferred Tax Liabilities 500 Decrease in accounts receivable 2, 000 Increase in inventories 9,000 Decrease in accounts payable 5,000 Increase in accrued liabilities 1,000 Increase in property and equipment 14,000 Increase in short-term notes payable 19,000 Decrease in long-term bonds payable 4,000 What is net cash flow from Financing Acti
Answer:
$15,000
Explanation:
This can be calculated as follows:
Details Amount ($)
Increase in short-term notes payable 19,000
Decrease in long-term bonds payable (4,000)
Net cash flow from Financing Activities 15,000
Therefor, net cash flow from Financing Activities $15,000.
Based on the information given the net cash flow from Financing Activities is $15,000.
Cash flow from financing activities
Increase in short-term notes payable $19,000
Less Decrease in long-term bonds payable ($4,000)
Net cash flow from Financing Activities $15,000
($19,000-$4,000)
Inconclusion the net cash flow from Financing Activities is $15,000.
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Suppose that Larimer Company sells a product for $20. Unit costs are as follows: Direct materials $2.10 Direct labor 1.25 Variable factory overhead 2.00 Variable selling and administrative expense 1.05 Total fixed factory overhead is $56,590 per year, and total fixed selling and administrative expense is $38,610. Required: 1. Calculate the variable cost per unit and the contribution margin per unit. 2. Calculate the contribution margin ratio and the variable cost ratio. 3. Calculate the break-even units. 4. Prepare a contribution margin income statement at the break-even number of units. Enter all amounts as positive numbers.
Answer:
1. $ 6.40
2. 68% and 32%
3. 7,000
4. a contribution margin income statement at the break-even number of units
Sales (7,000×$20.00) 140,000
Less Variable Costs (7,000×$6.40) (44,800)
Contribution 95,200
Less Fixed Costs ($56,590+$38,610) (95,200)
Net Income 0
Explanation:
the variable cost per unit and the contribution margin per unit.
variable cost per unit
Direct materials 2.10
Direct labor 1.25
Variable factory overhead 2.00
Variable selling and administrative expense 1.05
Total 6.40
contribution margin per unit
contribution margin per unit = Sales - Variable Cost
= $20.00 - $ 6.40
= $13,60
the contribution margin ratio and the variable cost ratio
contribution margin ratio
contribution margin ratio = Contribution / sales × 100
= $13,60/$20.00× 100
= 68%
variable cost ratio
variable cost ratio = variable cost / sales × 100
= $6.40/$20.00× 100
= 32%
the break-even units
break-even units = fixed costs / contribution margin per unit
= ($56,590+$38,610)/ $13,60
= 7,000
a contribution margin income statement at the break-even number of units
Sales (7,000×$20.00) 140,000
Less Variable Costs (7,000×$6.40) (44,800)
Contribution 95,200
Less Fixed Costs ($56,590+$38,610) (95,200)
Net Income 0
Bannister Motors Corporation reported the following variances for the period just ended: Variable-overhead spending variance: $50,000U Variable-overhead efficiency variance: $28,000U Fixed-overhead budget variance: $70,000U Fixed-overhead volume variance: $30,000U If Bannister desires to analyze variances that arose primarily from managers' expenditures in excess of anticipated amounts, the company should focus on variances that total:
Answer:
Company should focus on variances that total is $120,000 U
Explanation:
Given:
Variable-overhead spending variance = $50,000 U
Variable-overhead efficiency variance = $28,000 U
Fixed-overhead budget variance = $70,000 U
Fixed-overhead volume variance = $30,000 U
Computation:
The company should pay initial attention to its expenses whether it is a fixed or variable expense.
Company should focus on variances = Variable-overhead spending variance + Fixed-overhead budget variance
Company should focus on variances = $50,000 U + $70,000 U
Company should focus on variances = $120,000 U
In this year's fair, you want to emphasize preventative health care. You have found that few employees take advantage of preventative health care options provided by the company. Which of the following statements is most likely to encourage employees to take action? Multiple Choice A. Most people don't take action until it's too late. This presentation will show you the many preventative health care options available to you that have lasting and positive impacts now and in the future. B. Most people don't take action until it's too late. This presentation will show you the many preventative health care options that help you avoid health crises now and in the future. C. Feel better in less than 30 days and focus on your long-term wellness. This presentation will show you the many cost-free preventative health care options available to you that make a difference now and in the future.
Answer:
The Answer is A .
Most people don't take action until it's too late. This presentation will show you the many prevetative health care options available to you that have lasting positive impacts now and in the future.
Explanation:
Statement C is most likely to encourage employees as it offers immediate results, emphasizes long-term wellness, and appeals to cost considerations; qualities that align with the principles of preventative healthcare.
Explanation:The objective here is to convince employees to consider preventative healthcare options, and while all statements emphasize the value of preventative measures in some way, they differ in the approach taken. Statement
C
gets my vote as the most encouraging one. It takes a positive approach, offering a quick result ('Feel better in less than 30 days') and focuses on the benefit of long-term wellness. The inclusion of '
cost-free
' is crucial since many employees shy away from such options fearing hidden costs. This statement aligns with the shift to health maintenance organizations (HMOs), who focus on preventative care. According to the U.S healthcare system model, these organizations aim to provide care to prevent future health problems, which, in principle, is what preventative health care should do.
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Karen and Mike currently insure their cars with separate companies, paying $400 and $600 a year. If they insured both cars with the same company, they would save 15 percent on the annual premiums. What would be the future value of the annual savings over 10 years based on an annual interest rate of 3 percent
Answer:
$1,720
Explanation:
Total annual premium for both Karen and Mike = $400 + $600 = $1,000
If they insured both cars with the same company, they would save 15% on the annual premiums -> the annual saving = 15% * $1,000 = $150
We use formula FV to calculate the future value of annual payment:
= FV(rate, number of payment, - payment) = FV(3%,10,-150) = $1,720
Karen and Mike's combined annual savings of $150 on automobile insurance, invested at a 3 percent interest rate over 10 years, will have a future value of $1,721.93.
Karen and Mike are looking to save money on their automobile insurance by insuring their cars with the same company. To calculate their annual savings, we'll first determine the total cost of insuring their cars separately and then the cost when they're combined with a 15 percent discount. After that, we can calculate the future value of these annual savings over a period of 10 years at an interest rate of 3 percent.
Separately, Karen and Mike pay $400 and $600, respectively, amounting to $1,000 together. If they combine their insurance with a 15 percent discount, they'll pay $850 ($1,000 - $150). Their annual savings will therefore be $150. Using the future value formula for an annual investment, which is Future Value = Savings x [(1 + interest_rate) ^ number_of_years - 1] / interest_rate, we'll calculate the future value of saving $150 each year for 10 years at a 3 percent interest rate.
Their future savings can be calculated as follows: Future Value = $150 x [(1 + 0.03) ^ 10 - 1] / 0.03 = $150 x [1.343916379 - 1] / 0.03 = $150 x 11.4795638 = $1721.93 (rounded to two decimal places). So, the future value of Karen and Mike's annual savings over 10 years is $1,721.93.
XYZ Inc. is planning on increasing its annual dividend by 10 percent a year for the next 4 years and then decreasing the growth rate to 5 percent per year. The company just paid its annual dividend in the amount of $0.20 per share. What is the current value of one share of this stock if the required rate of return is 15 percent
Answer:
The current value of this stock is $2.74
Explanation:
The two stage growth model of Dividend discount model approach will be used to calculate the price of the stock today. This model bases the price of the stock on the expected future dividend payments from the stock. The price per share of such a stock will be calculated as follows,
Taking the 10% growth as g1.
Taking the constant growth of 5% as g2.
P0 = 0.2 * (1+0.1) / (1+0.15) + 0.2 * (1+0.1)^2 / *1+0.15)^2 +
0.2 * (1+0.1)^3 / (1+0.15)^3 + 0.2 * (1+0.1)^4 / (1+0.15)^4 +
[(0.2 * (1+0.1)^4 * (1+0.05) / (0.15 - 0.05)) / (1+0.15)^4 ]
P0 = $2.474 rounded off to $2.47
CASE: CHARTING A COURSE FOR CONFLICT RESOLUTION—"IT’S A POLICY" Background The setting is an 82-bed hospital located in a small city. One day an employee of the maintenance department asked the supervisor, George Mann, for an hour or two off to take care of some per-sonal business. Mann agreed, and he asked the employee to stop at the garden equipment dealer-ship and buy several small lawnmower parts that the department required. While transacting business at a local bank, the employee was seen by Sally Carter, the supervisor of both human resources and payroll, who was in the bank on hospital business. Carter asked the employee what he was doing there and was told the visit was personal.On returning to the hospital, Sally Carter examined the employee’s time card. The employee had not punched out to indicate when he had left the hospital. Carter noted the time the employee returned, and after the normal working day she marked the card to indicate an absence of 2 hours on personal business. Carter advised the chief executive officer (CEO), Jane Arnold, of what she had done, citing a long-standing policy (in their dusty, and some would say infrequently used, policy manual) requiring an employee to punch out when leaving the premises on personal busi-ness. The CEO agreed with Sally Carter’s action.Carter advised Mann of the action and stated that the employee would not be paid for the 2 hours he was gone.Mann was angry. He said he had told the employee not to punch out because he had asked him to pick up some parts on his trip; however, he conceded that the employee’s personal business was probably the greater part of the trip. Carter replied that Mann had no business doing what he had done and that it was his—Mann’s—poor management that had caused the employee to suffer.Mann appealed to the CEO to reopen the matter based on his claim that there was an important side to the story that she had not yet heard. Jane Arnold agreed to hear both managers state their position.
Instructions
1. In either paragraph form or as a list of points, develop the argument you would be advanc-ing if you were in George Mann’s position.
2. In similar fashion, thoroughly develop the argument you would advance if you were in Sally Carter’s position.
3. Assuming the position of the CEO, Jane Arnold, render a decision. Document your deci-sion in whatever detail may be necessary, complete with explanation of why you decided in this fashion.
4. Based on your responses to Questions 1 to 3, outline whatever steps—policy changes, guidelines, payroll requirements, or something else—you believe should be considered to minimize the chances of similar conflict in the future.
Answer:
Explanation:
Find attached my decisions
George Mann would highlight the dual nature of the errand, arguing it wasn't wholly for personal purposes. Sally Carter would emphasize the importance of policy adherence. Jane Arnold, mediating the disagreement, would decide on a compromise adjustment of the employee's time card.
George Mann's Position
If I were in George Mann's position, my argument would focus on the context of the situation. I would assert that while the employee did engage in personal business, they also completed a work-related task by picking up lawnmower parts needed by the maintenance department, as instructed by me. Despite the policy referenced by Sally Carter, I would argue that the employee's time should not be wholly classified as personal absence because work was also done on behalf of the hospital. I would present my directive as a decision in the interest of efficiency and possibly suggest that I should have better communicated the mixed nature of the employee's errand.
Sally Carter's Position
Arguing from Sally Carter's standpoint, I would maintain that policies are in place to ensure fairness and transparency. They must be applied consistently to prevent instances of preferential treatment and potential abuse. Since the policy clearly states that an employee must punch out when taking care of personal business, and the employee failed to do so, corrective action was warranted. I would stress the importance of following established procedures to protect the institution and its employees.
Jane Arnold's Decision
As CEO Jane Arnold, after considering both sides, I would decide to partially uphold Carter's action, but also acknowledge Mann's valid point. The employee's time card would be adjusted to reflect the time spent on hospital business, for which the employee will be compensated, and the remaining time as personal, for which they will not be paid. This compromise respects the policy, but also recognizes the dual nature of the errand. The decision emphasizes the need for clear communication and a review of policies to avoid future misunderstandings.
Minimizing Future Conflicts
To minimize the chances of similar conflicts in the future, several steps should be taken:
Create clear guidelines specifying how to handle situations where an employee carries out both personal and professional tasks during one trip.
Implement a system for pre-approvals of mixed-nature errands, including methods for verifying completion of professional tasks.
Conduct regular policy training sessions to ensure all managers and employees understand existing policies and procedures.
Establish clear communication channels and protocols between departments to manage approvals and reporting of off-site tasks.
The objective of causal research is to ________. A. predict the effect of a random event on unrelated entities B. describe things, such as the market potential for a product C. test hypotheses about cause-and-effect relationships D. assign a cause to a seemingly random event E. gather preliminary information that will help suggest
Answer:
The correct answer is letter "C": test hypotheses about cause-and-effect relationships.
Explanation:
Cause-and-effect relationships are analyzed by Causal Research. At first, there must be a change in a variable so later the researcher studies the possible reasons for the fluctuations in that behavior. This is believed to happen because the independent variable of the study has been manipulated.
Final answer:
Causal research aims to test hypotheses about cause-and-effect relationships through methodical experimentation and control, differentiating it from purely correlational studies.
Explanation:
The objective of causal research is to test hypotheses about cause-and-effect relationships. This form of research design is essential when researchers wish to understand the impact that changes in one variable may have on another. By manipulating one or more independent variables, researchers observe the effects on the dependent variables, controlling for extraneous factors to establish a causal connection. Causal research is distinct from correlational research, which only identifies associations rather than causation, and is typified by the use of controlled experimental designs that allow for the determination of causality.
Furthermore, ideal experimental research involves random selection and random assignment of participants to different conditions, with controls in place to prevent the influence of expectations on the results, such as blind or double-blind protocols. This rigor in methodology provides the ability to infer cause-and-effect relationships from observed behaviors, distinguishing it from other forms of qualitative or exploratory research that may be more descriptive or foundational.
Which of the following statements about the statement of retained earnings and the statement of stockholders' equity are true? A statement of retained earnings shows how net income increased and dividends decreased the retained earnings balance during the period. Both statements show the increase in Retained Earnings that occurs when dividends are declared Public companies report a more comprehensive version of the statement of retained earnings called the statement of stockholders' equity to show the causes of changes in all stockholders' equity accounts. The statement of stockholders' equity has a column for each stockholders' equity account and shows the increases and decreases in each account balance during the period.
The statement of retained earnings shows how net income and dividends affect the retained earnings balance, while the statement of stockholders' equity provides a comprehensive view of all stockholders' equity accounts.
Explanation:Statement of Retained Earnings:The statement of retained earnings shows how net income increased and dividends decreased the retained earnings balance during the period. It is a financial statement that summarizes the changes in retained earnings over a specific period of time, usually a year. It begins with the beginning balance of retained earnings, adds net income, and deducts dividends to arrive at the ending balance of retained earnings.
Statement of Stockholders' Equity:Public companies report a more comprehensive version of the statement of retained earnings called the statement of stockholders' equity. This statement shows the causes of changes in all stockholders' equity accounts, not just retained earnings. It has a column for each stockholders' equity account and shows the increases and decreases in each account balance during the period.
In summary, the statement of retained earnings focuses solely on the changes in retained earnings, while the statement of stockholders' equity provides a broader overview of the changes in all stockholders' equity accounts.
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Step 1 Do some research that can enable you to develop a perceptual map based on High/Low Quality and High/Low Price including the 13 candy bars just identified. How could this information be helpful for Hershey? Which company’s products do you prefer? Why? Step 2 Do some research that can enable you to develop a perceptual map based on High/Low Calories and High/Low Nutrition including the 13 candy bars just identified. How could this information be helpful for Hershey?
Answer:
1) The attached perceptual guide will be helpful for Hershey to position another item. Note that the principal quadrant of this perceptual guide is relatively vacant while the second and the third quadrants are swarmed with numerous players including Hershey's own particular items. There is use to position an item in the fourth quadrant which is High Price however low Quality. In the event that Hershey can position its item in the principal quadrant i.e. High caliber and High Price, it should confront a lesser rivalry and because of the high value, it can have higher edge per unit of offers.
2) It is important for Hershey to research in depth about the ingredients and nutrition value of each of the candy bars made by their competitors. It will then help Hershey to identify one unique selling point which can help them produce and market a unique product in the market, using an innovative pricing structure. This will help to formulate a future strategy to counter competition and position themselves well in the global market.
Explanation:
A new highway is to be constructed. Design A calls for a concrete pavement costing $90 per foot with a 20- year life; two paved ditches costing $3 per foot each; and three box culverts every mile, each costing $9,000 and having a 20- year life. Annual maintenance will cost $1,800 per mil e; the culverts must be cleaned every five years at a cost of $450 each per mile.
Design B calls for a bituminous pavement costing $45 per foot with a 10- year life; two sodded ditches costing $1.50 per foot each; and three pipe culverts every mile, each costing $2,250 and having a 10 -year life. The replacement culverts will cost $2,400 each. Annual maintenance will cost $2,700 per mile; the culverts must be cleaned yearly at a cost of $225 each per mile; and the annual ditch maintenance will cost $1.50 per foot per ditch.
Compare the two designs on the basis of equivalent worth per mile for a 20- year period. Find the most economical design on the basis of AW and PW if the MARR is 6% per year. (Note: assuming cleaning also occurs at the end of the life time)
note ;
1:comparision is based on 1 mile.
2:1 mile = 5280feet
for this problem:
a: Develop the cash flow table for each design
b:set up the cash flow equation but do not perform the numerical computations.
To compare the two highway designs, a cash flow table for each design should be developed, which includes costs for construction, maintenance, and cleaning or replacement of culverts over 20 years. Then, a cash flow equation for each design should be set up to calculate Present Worth, factoring in the provided Minimum Attractive Rate of Return (MARR). This will help determine the most economical design.
Explanation:Cash Flow and Cost AnalysisThe question is asking to compare two different highway designs, Design A and Design B, based on their conjectured costs over a 20-year period. These costs include initial construction, annual maintenance, and the cleaning and replacement of culverts.
To determine the most economical design, we'll need to factor in not just the upfront costs, but also the continuing costs of maintenance, as indicated by the term 'equivalent worth'. The 'Minimum Attractive Rate of Return (MARR)' is given as 6%, which is the minimum return the project is expected to yield over its lifetime. It's used to calculate the 'Present Worth (PW)' and 'Annual Worth (AW)', key indicators in cost comparison and investment decisions.
a. For the cash flow table, we'll need to document outflows (costs) and inflows (returns) per year for each design. For Design A, the costs include pavement, ditches, culverts, their cleaning, and annual maintenance; similarly for Design B, apart from variations in the type of construction and maintenance.
b. To set up the cash flow equation, it's important to take into account the MARR. Without doing the actual computations, for Design A, the cash flow equation would look something like this: PWA = (cost of pavement + cost of ditches + cost of culverts - MARR)/(1 + MARR)20. Likewise, we'll have a similar equation for Design B, which will help compare the two designs’ equivalent worth.
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7) The capital asset pricing model: (a) Provides a risk return trade off in which risk is measured in terms of beta (b) Measures risk as the correlation coefficient between a security and market rates of return (c) Provides a risk return trade off in which risk is measured in terms of yield to maturity (d) None of the above
Answer: Provides a risk return trade off in which risk is measured in terms of beta (A)
Explanation:
The Capital Asset Pricing Model (CAPM) describes the relationship that exist between systematic risk and the expected return for assets, particularly stocks. The Capital Asset Pricing Model is widely used in finance for pricing risky securities and also for generating expected returns for an asset given the cost of capital and the risk of those assets.
The Capital Asset Pricing Model Formula is:
Expected Return= Risk-Free Rate+Beta( Market Return – Risk Free Rate).
For example, if the risk free rate is 10%, the market return is 15%, and the stock's beta is 3, then the expected return on the stock would be 25%
= 10% + 3 (15% – 10%)
= 10% + 3(5%)
= 10% + 15%
= 25%
It should be noted that the capital asset pricing model Provides a risk return trade off in which risk is measured in terms of beta.
According to the question, we are to discuss capital asset pricing model as regards to the business organization.As a result of this we can see that business can use a variety of pricing strategies in a situation where they need to sell their products because it Provides a risk return trade off in which risk is measured in terms of beta.
Therefore, option A is correct because, capital asset pricing model Provides a risk return trade off in which risk is measured in terms of beta..
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On August 5, 2021, Blossom Furniture shipped 30 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $450 each. The cost of shipping the dining sets amounted to $4600 and was paid for by Blossom Furniture. On December 30, 2021, the consignee reported the sale of 20 dining sets at $950 each. The consignee remitted payment for the amount due after deducting a 7% commission, advertising expense of $700, and installation and setup costs of $880. The amount cash received by Blossom furniture is_________
Answer:
$16,280
Explanation:
The computation of Cash received is shown below:-
Sale of Dining Set - 20 Nos × $950 $19,000
Less: Deduction by Consignee
Commission - 6% $1,140
($19,000 × 6%)
Less: Advertisement expenses $700
Less: Installation and setup costs $880
Cash received $16,280
Therefore for computing the cash received we simply deduct the all expenses from Sale of Dining set
The cash received by Blossom Furniture after selling 20 dining sets on consignment, accounting for commission, advertising, and installation expenses, is $16,090.
To calculate the amount of cash received by Blossom furniture, we need to consider the sale of 20 dining sets at $950 each, the consignee commission, and the additional expenses reported, as follows:
Total sales: 20 sets[tex]\times[/tex] $950 = $19,000
Commission (7% of total sales): 0.07 [tex]\times[/tex] $19,000 = $1,330
Advertising expense: $700
Installation and setup costs: $880
Total deductions: $1,330 (Commission) + $700 (Advertising) + $880 (Installation) = $2,910
Amount remitted to Blossom Furniture: Total Sales - Total Deductions = $19,000 - $2,910
Therefore, the cash received by Blossom furniture is $16,090.
a warranty is an example of a
Answer:
For example, when you buy a new car from a car dealer, the warranty states that the car works. If the car doesn't work, the warranty gives the owner the right to have the dealer fix the car under certain conditions (length of time, cause of damage, etc.). These conditions are typically spelled out in the warranty.
Explanation:
Answer:
im not sure if this is the answer your looking for its my first time here but a warranty is an example of a contingent liability. :)
Explanation:
Annual depreciation $ 3,000 Annual mileage 14,640 Current year's loan interest $ 710 Miles per gallon 24 Insurance $ 860 License and registration fees $ 125 Average gasoline price $ 3.50 per gallon Oil changes/repairs $ 730 Parking/tolls $ 660 a. Calculate total annual operating cost of the motor vehicle.
Answer:
$8,220
Explanation:
The computation of the total annual operating cost is shown below:
= Fixed cost + variable cost
where,
Fixed cost = Annual depreciation + Annual loan interest + insurance + license and registration fees
= $3,000 + $710 + $860 + $125
= $4,695
And, the variable cost
= Gasoline expense + Parking or tolls + Oil changes or repairs
where,
Gasoline expense is
= (Annual mileage ÷ miles per gallon) × average price per gallon
= ($14,640 ÷ 24) × $3.50 per gallon
= $2,135
Parking or tolls = $660
And, the Oil changes or repairs is $730
So, the variable cost is
= $2,135 + $660 + $730
= $3,525
So, the total annual operating cost is
= $4,695 + $3,525
= $8,220
Therefore, The total annual operating cost is a mix of fixed cost and the variable cost
Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $7,200 and sell its old washer for $2,500. The new washer will last for 6 years and save $1,700 a year in expenses. The opportunity cost of capital is 15%, and the firm’s tax rate is 40%.
a. If the firm uses straight-line depreciation to an assumed salvage value of zero over a 6-year life, what is the annual operating cash flow of the project in years 0 to 6? The new washer will in fact have zero salvage value after 6 years, and the old washer is fully depreciated. (Negative amount should be indicated by a minus sign.)
b. What is project NPV? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
Annual operating cash flow of the project in year 1 through 6 is $ 1,500 NPV of the project is - $ 23.25Explanation:
a.
Cost of new washer = $ 7,200
After tax sales value of old washer = $ 2,500 – ($ 2,500 x 0.4)
= $ 2,500 x 0.6 = $ 1,500
Initial investment = Cost of new washer - After tax sales value of old washer
= $ 7,200 - $ 1,500 = $ 5,700
Straight line annual depreciation of washer = Purchase cost/useful life
= $ 7,200/6 = $ 1,200
Annual operating cash flow = (Revenue as cost savings) x (1 – tax rate) + (tax rate x Depreciation)
= $ 1,700 x (1 – 0.4) + (0.4 x $ 1,200)
= $ 1,700 x 0.6 + 0.4 x $ 1,200
= $ 1,020 + $ 480 = $1,500
Cash flow in year 0 is - $ 5,700.
Annual operating cash flow of the project in year 1 through 6 is $ 1,500
b.
NPV = C x PVIFA (i, n) – initial investment
C = Annual cash flow = $ 1,500
i = Rate of interest = 15 %
n = No. of periods = 6
NPV = $ 15,000 x PVIFA (15 %, 6) - $ 5,700
= $ 15,000 x 3.7845 - $ 5,700 = $ 5,676.75 - $ 5,700
= - $ 23.25
NPV of the project is - $ 23.25
Based on the information given, the NPV will be - $ 23.25.
The following information can be gotten from the question:
Cost of new washer = $ 7,200
After tax sales value of old washer will be:
= $2,500 – ($ 2,500 x 0.4)
= $2,500 x 0.6
= $1,500
Initial investment = $ 7,200 - $ 1,500 = $5,700
Straight line annual depreciation of washer will be:
= $7,200/6
= $1,200
Annual operating cash flow will be:
= (Revenue as cost savings) x (1 – tax rate) + (tax rate x Depreciation)
= $ 1,700 x (1 – 0.4) + (0.4 x $ 1,200)
= $ 1,020 + $ 480
= $1,500
The NPV will be:
= C x PVIFA (i, n) – initial investment
NPV = $ 15,000 x PVIFA (15 %, 6) - $ 5,700
= $ 15,000 x 3.7845 - $ 5,700
= $ 5,676.75 - $ 5,700
= - $ 23.25
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The roles of money Darnell is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Darnell decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Medium of Exchange Unit of Account Store of Value Darnell buys his lunch with a $10 bill. Darnell can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. Darnell accumulates money in his savings account for future purchases. Grade It Now Save
Answer:
In the first case Darnell esteem the merchandise in quite a while of cash so for this situation cash assumes a job as unit of record (Unit of record is something which can be utilized to esteem the products and ventures).
In the event that Darnell stores the cash to use in future, at that point it very well may be said that Sean is putting away his cash to utilize it in future. So for the second case cash assumes third job for example store of worth.
In third case Darnell purchased nourishment by taking care of tab of $10 so actually Darnell is trading nourishment with his cash. In third case cash assumes first job that is vehicle of trade.
Answer:
Value Darnell buys his lunch with a $10 bill. MEDIUM OF EXCHANGE
Darnell can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. UNIT OF ACCOUNT
Darnell accumulates money in his savings account for future purchases. STORE OF VALUE
Explanation:
The four functions our roles of money are:
unit of account: serves as a common measure of the value of products and servicesstore of value: money is able to hold its value over time, so it can store value medium of exchange: you are able to buy and sell different products or services using money standard of deferred payment: money enables you to lend or borrow, and interest can be charged on itConcord Company had the following department information about physical units and percentage of completion: Physical Units Work in process, May 1 (65%) 60800 Completed and transferred out 181000 Work in process, May 31 (35%) 50000 If all materials are added at the beginning of the production process, what is the total number of equivalent units for materials during May
Answer:
the total number of equivalent units for materials during May are 231,000
Explanation:
Note : all materials are added at the beginning of the production process.
This means that Both the Units in Closing Work In Process and the Units Completed and Transferred to Finished Goods are 100% complete in terms of Material input.
Closing Work In Process (50000×100%) = 50,000
Completed and Transferred to Finished Goods (181000×100%) = 181,000
Total number of equivalent units = 231,000
Hirdt Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $401,100 at the end of the year, and the allowance for doubtful accounts has a credit balance of $3,110. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)(a) Prepare the adjusting journal entry to record bad debt expense for the year.(b) If the allowance for doubtful accounts had a debit balance of $890 instead of a credit balance of $3,110, prepare the adjusting journal entry for bad debt expense
Answer:
the answer is given below;
Explanation:
a.Allowance for doubtful accounts $401,100*3%=$12,033
Allowance for doubtful accounts-opening ($3,110)
Bad Debt Expense $8,923
Bad Debt Expense Dr.$8,923
Allowance for doubtful accounts Cr.$8,923
b.Allowance for doubtful Accounts $401,100*3%=$12,033
Allowance for doubtful accounts-opening $890
Bad Debt Expense $12,923
Bad Debt Expense Dr.$12,923
Allowance for doubtful accounts Cr.$12,923
A bond with a face value of $ 90000 and a quoted price of 104 has a selling price of: (Round your final answer to the nearest dollar.) A. $ 93600. B. $ 90000. C. $ 86538. D. $ 99 000.
Answer:
A. $93,600
Explanation:
Data provided as per the question below:-
Face value = $90,000
Quoted price = 104
The computation of selling price is shown below:-
Selling Price = Face value × Quoted price ÷ 100
= $90,000 × 104 ÷ 100
= $90,000 × 1.04
= $93,600
Therefore for computing the selling price we simply applied the above formula.
The selling price of a bond is calculated by multiplying the face value by its quoted price and dividing by 100. In this case, a bond with a face value of $90,000 and a quoted price of 104 has a selling price of $93,600.
Explanation:The selling price of a bond is calculated by multiplying the face value of the bond by its quoted price, and then dividing by 100. The quoted price of bonds is usually expressed in terms of a percentage of the face value of the bond. So in this case, to find the selling price of a bond with a face value of $ 90,000 and a quoted price of 104, you simply multiply $90,000 by 104 then divide by 100.
Therefore, the selling price is calculated as follows: $(90,000 * 104) / 100 = $93,600
This means that a bond with a face value of $90,000 and a quoted price of 104 has a selling price of $93,600, rounded to the nearest dollar. So the correct answer is A. $ 93600.
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According to Laudon and Laudon, which of the following is the most complete technical definition of an "organization"? Group of answer choices informal entity with internal rules and procedures that must abide by laws. collection of social elements. internal rules and procedures that must abide by laws and collection of social elements stable, formal social structure that takes resources from the environment and processes them to produce outputs, formal, legal entity with internal rules and procedures that must abide by laws, and collection of social elements
Answer:
Stable, formal social structure that takes resources from the environment and processes them to produce outputs
Explanation:
The technical definition of an "organization", according to Laudon and Laudon, focused on three elements of an organization which are stable, formal and social structures.
In terms of longevity and routineness, an organization is more stable than an informal group. Organizations are formal legal entities with internal rules and procedures that must abide by laws. Organizations are also social structures because they are a collection of social elements.
At the high and low levels of activity during the month, direct labor hours are 90,000 and 40,000, respectively. The related costs are $165,000 and $100,000. What are the fixed and variable costs at any level of activity? (Round variable cost per unit to 2 decimal places, e.g. 2.25.) Fixed Costs $ per month Variable Costs $ per unit
Answer:
Fixed Costs per month is $48,000, while Variable Costs per unit is $1.30.
Explanation:
Variable cost per unit = ($165,000 - $100,000) ÷ (90,000 - 40,000) = $1.3 per unit
Total cost = Total Fixed Cost + Total Variable Cost ................. (1)
Total Variable Cost = Variable cost per unit × Units at any level of activity
Using high levels of activity and substitute into equation (1), we have:
$165,000 = Total Fixed Cost - ($1.3 × 90,000)
Total Fixed Cost = $165,000 - ($1.3 × 90,000) = $165,000 - $117,000 = $48,000
Therefore, Fixed Costs per month is $48,000, while Variable Costs per unit is $1.30.
Answer:
Fixed cost per month is $48,000
Variable cost per unit is $1.30
Explanation:
Variable cost= cost at higher activity-cost at lower activity/(labor hours at higher activity-labor hours at lower activity)
cost at higher activity is $165,000
cost at lower activity is $100,000
labor hours at higher activity is 90,000 hours
labor hours at lower activity is 40,000
variable cost=($165,000-$100,000)/(90,000-40,000)=$1.30 per hour
Fixed cost=total cost-(variable cost*number of hours)
The fixed cost at higher activity is computed thus:
Fixed cost=$165,000-(90000*$1.3)
fixed cost=$165,000-$117,000=$48,000
Capitalizing on the customer's complaints about the previous detergents she has used, Sheila, a salesperson, explains to the customer why her company's detergent Swish is better and how it can be a one-stop solution for everyday washing In which of the following steps of the selling process is Sheila?
A) follow-up
B) handling objections
C) preapproach
D) presentation
E) prospecting
Answer:
The correct answer is letter "D": presentation.
Explanation:
The selling steps is the process by which consumers are engaged in the purchase of a good or service influenced by a seller. Those steps are prospecting and qualifying, preparation, approach, presentation, overcoming objections, closing the sale, and following up.
In the presentation phase, consumers are given the information about the product portrayed highlighting its benefits over competitors. Sellers have the mission to attract consumers' attention by creating in consumers the need for purchasing the products.