Calculate the values for each of the questions. Assume that in each country there are no taxes, international trade, or inflation and that interest rates are fixed. The Italian government decides to stimulate the economy by sending checks worth $70 billion to Italian consumers. If the government spending multiplier is 1.5 , calculate the MPC to determine the final change in Italy's real GDP due to the transfer. Please give your answer as a whole number in billions of dollars. $ billion The Greek government decides to introduce new austerity measures, which reduce government direct spending by $16 billion. Greece has a marginal propensity to consume of 0.6 . What will be the final change in real GDP as a result of this decreased spending

Answers

Answer 1

Answer:

The answer is:

For italy: $35 billion

For Greece: -$40 billion

Explanation:

Injection into the economy = $70 billion.

Government spending multiplier is 1.5.

MPC = $70billion x 1.5

=$105 billion.

Change in Italy's real GDP due to the transfer = $105 billion - $70 billion

= $35 billion.

Greek Government.

Multiplier effect = 1 ÷ (1-MPC)

1 ÷ (1-0.6)

1÷ 0.4

-2.5.

It is negative because it is a reduction in government spending.

Therefore, the final change in real GDP as a result of this decreased spending is

-2.5 x $16 billion

= -$40 billion


Related Questions

Personal selling: A. Is indirect written communication between buyers and sellers. B. Is indirect spoken communication between buyers and sellers. C. Is not usually combined with other aspects of promotion in the total marketing mix. D. Gets immediate feedback from consumers. E. Is one of the least expensive components of the communications program.

Answers

Answer:

The correct answer is letter "D": Gets immediate feedback from consumers.

Explanation:

Personal selling refers to the most traditional type of offering goods and services. It implies having a salesperson in front of a consumer who might be willing to purchase a product. Sellers then, using diverse strategies, try to persuade customers. In some cases, those strategies require clerks to interview the clients to obtain feedback from them and find out what exactly they are looking for. Under such a scenario, salespeople match what the company offer and what consumers want.

Financial markets and _______ channel _______ to_______ . They also channel money from individuals who want to _______ for the future to those who need cash to spend today. A third function of financial markets is to allow individuals and businesses to adjust their risk. For example, _______ , such as the Vanguard Index fund, and _______ , such as SPDR's or "spiders," allow individuals to spread their risk across a large number of stocks. Financial markets provide other mechanisms for sharing risks. For example, a wheat farmer and a baker may use the _______ to reduce their exposure to wheat prices. Financial markets and intermediaries allow investors to turn an investment into cash when needed. For example, the _______ of public companies are _______ because they are traded in huge volumes on the _______ . _______ are the main providers of payment services by offering checking accounts and electronic transfers. Finally, financial markets provide information. For example, the _______ of a company that is contemplating an issue of debt can look at the yields on existing _______ to gauge how much interest the company will need to pay.a. financial intermediaries; b. savings; c. real investments; d. save; e. mutual funds; f. ETFs; g. commodity markets; h. shares; i.liquid; j.stock market; k.banks; l. CFO; m. bonds

Answers

Answer:

Financial intermediaries; savings; real investments; save; mutual funds; ETFs; commodity markets; shares; liquid; stock market; banks; CFO; bonds

Explanation:

Financial markets and FINANCIAL INTERMEDIARIES channel SAVINGS to REAL INVESTMENTS . They also channel money from individuals who want to SAVE for the future to those who need cash to spend today. A third function of financial markets is to allow individuals and businesses to adjust their risk. For example, MUTUAL FUNDS, such as the Vanguard Index fund, and ETF( educational trust funds) , such as SPDR's or "spiders," allow individuals to spread their risk across a large number of stocks. Financial markets provide other mechanisms for sharing risks. For example, a wheat farmer and a baker may use the COMMODITY MARKETS to reduce their exposure to wheat prices. Financial markets and intermediaries allow investors to turn an investment into cash when needed. For example, the SHARES of public companies are LIQUID because they are traded in huge volumes on the STOCK MARKET .

BANKS are the main providers of payment services by offering checking accounts and electronic transfers. Finally, financial markets provide information. For example, the CFO of a company that is contemplating an issue of debt can look at the yields on existing BONDS to gauge how much interest the company will need to pay.

Final answer:

Financial markets channel money, allow risk management, provide liquidity and payment services, and offer valuable information.

Explanation:

Financial Markets and their Functions

Financial markets play a crucial role in channeling money to individuals, businesses, and governments. They facilitate the transfer of savings from individuals who want to save for the future to those who need cash to spend today. Financial markets also allow investors to adjust their risk by offering various investment options like mutual funds and exchange-traded funds (ETFs). These investment vehicles help individuals spread their risk across a diversified portfolio of stocks.

Additionally, financial markets provide mechanisms for managing risks. For instance, commodity markets enable entities like farmers and bakers to reduce their exposure to price fluctuations by engaging in futures contracts. Furthermore, financial markets and intermediaries such as banks offer liquidity and payment services, allowing investors to convert their investments into cash when needed. Lastly, financial markets provide valuable information to participants. For example, potential bond issuers can assess prevailing market interest rates by examining yields on existing bonds.

Assume Sarah is a cash-method, calendar-year taxpayer, and she is considering making the following cash payments related to her business. Calculate the after-tax cost of each payment assuming she is subject to a 37 percent marginal tax rate. (Do not round intermediate calculation.)

Answers

Answer:

a. $1260

b. $652

c. $978

d. No after-tax cost is calculated since it is not deductible.

Details of Remaining Part of the Question

The following are payments that were supposed to be listed for the question:

 a. $2000 payment for next year's property taxes on her place of business.

b. $800 to reimburse the cost of meals incurred by employees while traveling for the business.

c. $1200 for football tickets to entertain out-of-town clients during contract negotiations.

d. $500 contribution to the mayor's re-election campaign

Explanation:

Calculation of after tax cost equation

a. After tax cost = Payment Due × (1 - Marginal rate)

After tax cost  = $2000×(1 - 0.37) = $1260

After tax cost for Sarah is $1260. Since it is property tax, the entire amount will be tax deductible according to the 12 month rule.

b. Calculation of after tax cost equation for reimbursement

After tax cost = Reimbursement cost  × (1 - (Reduction on meals×Marginal rate))

After tax cost  = $800×(1 - (0.5×0.37)) = $652

Only half the cost of meals is deductible.

c. Calculation of after tax cost equation for Football ticket

After tax cost = Football ticket cost  × (1 - (Tax exemption×Marginal rate))

After tax cost  = $1200×(1 - (0.5×0.37)) = $978.

Only half the cost of entertainment is deductible.

d. Since the cost here is not directly related with the business, this will not be tax deductible. So the $500 contribution to the mayor's re-election campaign is not tax deductible, therefore no after-tax cost is calculated.

Beech Company produced and sold 105,000 units of its product in May. For the level of production achieved in May, the budgeted amounts were: sales. $1,300,000; variable costs. $750,000: and fixed costs. $300,000. The following actual financial results are available for May.

Actual
Sales (105,000 units) $1,275,000
Variable costs 712,500
Fixed costs 300,000
*Prepare a flexible budget performance report for May.

BEECH COMPANY
Flexible Budget Performance Report
For the Month Ended May 31
Flexible Budget Actual Results Variance Favorable/Unfavorable
Contribution margin

Answers

Answer:

Contribution margin       12,500  Fav

Explanation:

Beech Company

Flexible Budget Performance Report

For the Month Ended May 31

                       Flexible Budget         Actual Results              Variance

Sales                  $1,300,000;                  $1,275,000             25,000  Unfav

Variable costs      $750,000:                     712,500               37,500    Fav  

Fixed costs.          $300,000                     300,000              -                    

Contribution margin  250,000                262,500            12,500  Fav

We calculate the Variance by subtracting the actual and the flexible budget amounts. Because actual sales are less the variance is unfavorable and actual costs are also less the variance is favorable.

Dear Ms. Gonzalez: Although I am disappointed to hear that you have selected another candidate for the marketing position, I appreciate your prompt and courteous communication. Because I believe I have the organizational and technical skills needed to work in a growing company like EdCo., I hope you will keep my résumé in your active file. My desire to work for your company remains strong. I enjoyed meeting with you, and I appreciate your thorough explanation of your company’s growth and future goals. To enhance my qualifications, I have enrolled in a course on Intercultural Communication in the Workplace at ZSU. If you have an opening for a position I am qualified for, please contact me at (555) 555-3532. I will contact you in the next month to discuss employment possibilities. Sincerely, Janet Havasu What is effective about the message? It asks specific questions about the position. It uses memo format. It refers to specifics in the applicant’s interview. What should be included in your job acceptance message? A review of salary and benefits A review of your strengths and qualifications A summary of the interview

Answers

Final answer:

Janet Havasu's message to Ms. Gonzalez is effective because it refers to specifics discussed during the interview and demonstrates a proactive approach to enhancing qualifications. A job acceptance message should include a summary of the interview process.

Explanation:

The message from Janet Havasu to Ms. Gonzalez is effective because it refers to specifics in the applicant’s interview, demonstrating attention to detail and a strong understanding of the company's needs. Janet expresses her continued interest in the company by mentioning her enrollment in a relevant course, highlighting her proactive approach to enhancing her qualifications. In a job acceptance message, you should include a concise summary of the interview process to acknowledge the mutual understanding achieved during the meeting, reiterate your enthusiasm for the role, acknowledge the offer, and confirm your acceptance without necessarily reviewing salary and benefits as those terms should have been addressed prior to acceptance.

Dalton presents an uncertified check for payment more than six months after its date. The check was drawn by Emma on her account in First City Bank. First bank may do all of the following except a. ask Dalton what he would prefer. b. cash the check. c. refuse to cash the check. d. consult Emma.

Answers

Answer:

The correct answer is letter "A": ask Dalton what he would prefer.

Explanation:

Checks must be endorsed so they can be cashed. Otherwise, anyone who finds the check can write his or her information at the back of the check and have it cashed. When checks are uncertified but the issuer is known, banks usually make the confirmation with the account holder. Based on the information provided by that person, the cash may or may not be cashed. Typically, until the confirmation is made, the bank holds the check.

Therefore, First City Bank is unlikely to ask Dalton what he prefers to do. Instead, they would just hold the check until the confirmation is made with Emma.

Baxter desires to purchase an annuity on January 1, 2019, that yields him five annual cash flows of $19,000 each, with the first cash flow to be received on January 1, 2022. The interest rate is 10% compounded annually. The cost (present value) of the annuity on January 1, 2019, is ________. (Use spreadsheet software or a financial calculator to calculate your answer.

Answers

Answer:

$72,025

Explanation:

P=R (1-(1+i)^-n)/i

P=$19,000(1-(1+.1)^-5/.1

P=$72,025

"Which of the following statements is FALSE? A. Total return equals earnings multiplied by the dividend payout rate. B. Cutting the firm's dividend to increase investment will raise the stock price if, and only if, the return of new investments is higher than the cost of capital. C. As firms mature, their earnings exceed their investment needs and they begin to pay dividends. D. We cannot use the constant dividend growth model to value the stock of a firm with rapid or changing growth."

Answers

Answer:

A. Total return equals earnings multiplied by the dividend payout rate.

Explanation:

The payout ratio is a financial metric that shows the proportions of the earnings a company pays the shareholders in the forms of dividends. They are expressed as a percentage of the total earnings and some occasion refers top the percentage of the cash flows. Thus is called the dividend payment ratio. And is calculated by the dividend payout ratio equal to the total dividend upon the net income as  

DPR =  Total dividends  ÷ Net income.

It shows the company's earnings paid out as dividends to shareholders. A low payout ratio means a signal that the company is reinvesting bulk earnings into the expanding operations.

zzy Division of Marine Boats Corporation had the following results last year​ (in thousands). Sales $ 4 comma 700 comma 000 Operating income $ 600 comma 000 Total assets $ 3 comma 600 comma 000 Current liabilities $ 220 comma 000 ​Management's target rate of return is 12​% and the weighted average cost of capital is 5​%. What is the Izzy​ Division's Residual Income​ (RI)? A. $ 72 comma 000 B. $ 432 comma 000 C. $ 168 comma 000 D. $ 600 comma 000

Answers

Answer:

C. $ 168 comma 000

Explanation:

The computation of the residual income is shown below:

= Operating income - minimum return

where,  

Operating income is $600,000

And, the minimum return equal to

= Invested asset amount × minimum rate of return

= $3,600,000 × 12%

= $432,000

Now put these values to the above formula  

So, the value would equal to  

= $600,000 - $432,000

= $168,000

We simply applied the above formula

Fusion, Inc. introduced a new line of circuits in 2016 that carry a four-year warranty against manufacturer's defects. Based on experience with previous product introductions, warranty costs are expected to approximate 3% of sales. Sales and actual warranty expenditures for the first year of selling the product were:


Actual warrantySales Expenditures$15 million $200,000Does this situation represent a loss contingency? Why or why not? How should it be accounted for?

Answers

Answer:

Explanation:

For Fusion inc.

Actual warranty in 2016:

Expenditure = $200,000

Sales = $15,000,000

Warranty provision at 3% of sales = (3/100)*$15,000,000 = $450,000.  

Due to the possibility of future liability depending on some future possible events, the situation represents a loss contingency.  

Nevertheless, as the amount of liability can be estimated and the liability is probable, the liability needs to be recognized in the financial statements.

Client response: "I think I see what you're saying. There is a big incongruity there. I want to stop, but I was abused and hit by my parents. I think I'm doing better than they did — at least I don't strike Amie. But perhaps I can do something different next week. I'll try your new idea about disciplining her." This client is where on the CCS?

Answers

Answer:

d. Development of new constructs, patterns, or behaviors

Explanation:

The available multiple choice response for the question is as below:

a. Partial examination

b. Full examination, no change

c. Decision to live with incongruity

d. Development of new constructs, patterns, or behaviors

Further explanation:

The stages of Client Change Scale (CCS) are 1 - denial, 2 - Partial Examination, 3 - Full Examination, 4 - Decides to Live with Incongruity, 5 - Decides change from incongurity  6 - Development of new constructs, patterns, or behaviors.

So when the client realized that there is a big incongruity and decides that henceforth, they will try something different the following week in their method of disciplining Amie, the client is therefore at the stage of development of new constructs, patterns, or behaviors.

The client is on the Contemplation stage of behavior change, considering making a change but facing challenges due to past experiences with abuse.

This client is on the Contemplation stage of the Transtheoretical Model (TTM) of behavior change. In this stage, individuals are aware of the problem and are considering making a change, but they may still have mixed feelings or uncertainties about taking action. This is reflected in the client's response, as they acknowledge the need for change but also express challenges related to their past experiences with abuse.

The client's willingness to try a new idea about disciplining their child indicates a readiness to take action, which is a positive step towards behavior change. It is important to provide support and resources to help the client in their journey towards healthier discipline practices and breaking the cycle of abuse.

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On December 31, Patterson Company had the following list of account balances.

Accounts Payable $42,300

Dividends $17,300

Accounts Receivable 44,000

Equipment 50,800

Accumulated Depreciation, Buildings 63,900

Prepaid Rent 14,700

Accumulated Depreciation, Equipment 10,700

Rent Expense 11,000

Beginning Retained Earnings 31,100

Salaries Expense 6,100

Buildings 119,000

Salaries Payable 8,900

Capital Stock 57,000

Service Revenue 121,600

Cash 39,900

Supplies 10,800

Depreciation Expense, Buildings 8,300

Supplies Expense 9,000

Depreciation Expense, Equipment 4,600

Required:

Prepare a balance sheet on December 31.

Answers

Answer:

Patterson Company

Balance sheet as at December 31

Fixed Assets:

Equipment $50,800

Less: Accumulated Depreciation, Equipment $10,700

Buildings $119,000

Less: Accumulated Depreciation, Buildings $63,900

Total Fixed Assets $95,200

Current Assets:

Accounts Receivable $44,000

Prepaid Rent $14,700

Cash $39,900

Supplies $10,800

Total current Assets $109,400

Current Liabilities:

Accounts Payable $42,300

Salaries Payable $8,900

Total current liabilities $51,200

Total Net Assets = $153,400

Shareholders Equity:

Capital Stock $57,000

Retained earnings $96,400

Shareholders equity $153,400

Income statement.

Service Revenue 121,600

Supplies Expense 9,000

Gross Profit 112,600

Less expenses:

Depreciation Expense, Equipment 4,600

Depreciation Expense, Buildings 8,300

Rent Expense 11,000

Salaries Expense 6,100

Net income $82,600

Dividends $17,300

Transfer to retain earnings $65,300

Beginning Retained Earnings 31,100

Closing retained earnings $96,400

On April 1, Jackson Company purchased $2,440 of supplies on account. On April 1, Jackson Company debited Supplies Expense, which is an alternate way of recording the initial expenditure. By the end of the calendar year, $390 of supplies was used.


Required:


Journalize the adjusting entry on December 31.

Answers

Answer:

The answer is given below;

Explanation:

Supplies (2,440-390)            Dr.$2,050

Supplies Expense/Retained Earnings      Cr.$2,050

The correct entry on April 1 should have been

Supplies        Dr.$2,440

Accounts Payable   Cr.$2,440

But erroneously instead of debiting supplies,the supplies expense was debited and as result supplies expense was overstated and supplies understated.The entry made was;

Supplies expense Dr.$2,440

Accounts Payable Cr.$2,440

As at December 31, $390 supplies have been expense out,therefore by the difference amount (2,440-390),the expense and supplies will be reinstated to their actual values

. Thesecost $870,000 which the company pays upfront and it lasts about 3 years before it needs to be replaced. The annual operating cost per oven is $11,000. What is the equivalent total average annual cost of an oven if the required rate of return is 9 percent? (Round your answer to whole dollars)

Answers

Answer: $354,738.94

Explanation:

Okay so for the 3 years this machine took up about $11,000 per annum in costs.

And it had an original cost of $870,000.

And we need to find the equivalent total annual average cost.

Cool.

Here's what we'll do.

We'll present value all the costs add them up so that we find the total cost TODAY. Then we will divide by the present value annuity factor for the period since the payments are equal.

Calculating that therefore we have,

Present Value of Total Cost = 870,000 + (11,000/1.09) + (11,000/1.09^2) + (11,000/1.09^3)

= $897,844.24 is the Total Cost.

Now we divide that total cost by the Present Value Interest factor for an annuity of,

PVIFA = ( 1 - ( 1 + r) ^-n )/r

= (1 - (1 + 0.09) ^ -3) / 0.09

= 2.53129466599

= 2.531

Now we divide the total cost by the PVIFA to get,

= 897,844.24/2.531

= 354738.937179

= $354,738.94

$354,738.94 is the equivalent total average annual cost of the oven if the required rate of return is 9 percent.

If you need any clarification do react or comment.

Fred contributes cash of $350,000 to Strumble Partnership for his 50% interest in the partnership. For his 50% interest Gary contibutes a building with a fairmarket value of $550,000 and a basis of $250,000. The building is subject to a mortgage of $200,000. Net income for Strumble for 2019 is $100,000, Strumble borrows an additional $50,000 during 2019 and makes a distribution to each partner of $20,000. Assuming that the partners share profits and losses equally what is Gary's basis in his partnership interest at the end of 2019.

Answers

Final answer:

Gary's basis in his partnership interest at the end of 2019 is $215,000.

Explanation:

To calculate Gary's basis in his partnership interest at the end of 2019, we need to take into account his initial contribution, share of profits and losses, additional borrowing, and distributions made.

Initially, Gary contributed a building with a fair market value of $550,000 and a basis of $250,000. However, the building is subject to a mortgage of $200,000. So, his net contribution is $350,000 - $200,000 = $150,000.

Next, we calculate the share of profits and losses. Since the partners share profits and losses equally, Gary's share of the net income of $100,000 for 2019 is $100,000 / 2 = $50,000.

Then, we consider the additional borrowing of $50,000. Gary's share of this borrowing is $50,000 / 2 = $25,000.

Finally, we subtract the distributions made to each partner, which is $20,000. Gary's share of the distribution is $20,000 / 2 = $10,000.

To calculate Gary's basis in his partnership interest at the end of 2019, we add up all these amounts:

Net contribution: $150,000
Share of profits: $50,000
Share of additional borrowing: $25,000
Minus distribution: -$10,000

Overall, Gary's basis in his partnership interest at the end of 2019 is $150,000 + $50,000 + $25,000 - $10,000 = $215,000.

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Martinez Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $166,900 to $198,400. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 5%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,300, depreciation on delivery equipment $6,600, and insurance on delivery equipment $1,000.

Prepare a monthly flexible budget for each $11,100 increment of sales within the relevant range for the year ending December 31, 2017.

Answers

Answer:

monthly flexible budget for each $11,100 increment

Sales                                                               $11,100

Less Sales Commissions ( $11,100 × 6%)       ($666)

Net Sales                                                       $10,434

advertising ( $11,100 × 5%)                              ($555)

traveling ( $11,100 × 4%)                                  ($444)

delivery ( $11,100 × 2%)                                   ($222)

Net Income                                                     $9,213

Explanation:

Consider Only the incremental costs and revenues.Fixed costs are not relevant for the $11,100 increment

The stockholders’ equity section of Bramble Corp.’s balance sheet at December 31 is presented here.


BRAMBLE CORP.
Balance Sheet (partial)
Stockholders’ equity
Paid-in capital
Preferred stock, cumulative, 12,500 shares authorized, 7,500 shares issued and outstanding $ 787,500

Common stock, no par, 735,000 shares authorized, 565,000 shares issued 2,260,000
Total paid-in capital 3,047,500
Retained earnings 1,158,000
Total paid-in capital and retained earnings 4,205,500
Less: Treasury stock (6,900 common shares) 36,800
Total stockholders’ equity $4,168,700

(a) How many shares of common stock are outstanding?
(b) Assuming there is a stated value, what is the stated value of the common stock?
(c) What is the par value of the preferred stock?
(d) If the annual dividend on preferred stock is $47,250, what is the dividend rate on preferred stock?
(e) If dividends of $73,800 were in arrears on preferred stock, what would be the balance reported for retained earnings?

Answers

Answer:

Common stock outstanding is 558,100

Stated value of common stock is $4.00  per share

Par value of preferred stock is $105 per share

Dividend rate on preferred stock is 6%

The arrears of $73,800 would not impact the retained earnings,they are to be declared before the impact is felt in retained earnings.

Explanation:

Common stock outstanding =issued common stock -treasury stock

                                              =565,000-6,900

                                              ==558,100

Stated value of common stock=value of shares issued/shares issued

                                                   =$2,260,000/565,000

                                                    =$4.00  per share

Par value of preferred stock=value of shares issued/shares issued

                                              =$787,500/7500

                                              =$105 per share

preferred dividends=Preferred share capital *Dividend rate on preferred stock

preferred dividends is $47,250

preferred share capital is $787,500

dividend rate on preferred stock is unknown

$47,250=$787,500*Dividend rate on preferred stock

Dividend rate on preferred stock=$47,250/$787,500

                                                       =6%

The arrears of $73,800 would not impact the retained earnings,they are to be declared before the impact is felt in retained earnings.

The answers to all the parts of the question are as follows:

a) Common stock outstanding is 558,100

b) Stated value of the common stock is $4 per share

c) Par value of the preferred stock is $105 per share

d) Dividend rate is 6%

e) The arrear of $73,800 will not affect the balance of retained earnings recorded under the balance sheet.

Computations:

a) The shares of common stock outstanding are:

[tex]\begin{aligned}\text{Outstanding Common stock}&=\text{Common stock issued}-\text{Treasury stock}\\&=565,000-6,900\\&=558,100 \end{aligned}[/tex]

b) Stated value of the common stock:

[tex]\begin{aligned}\text{Stated Value of common stock}&=\frac{\text{Total value of shares issued}}{\text{Common stock issued}}\\&=\frac{\$2,260,000}{565,000}\\&=\$4\;\text{per share} \end{aligned}[/tex]

c) Par value of the preferred stock:

[tex]\begin{aligned}\text{Par value of preferred stock}&=\frac{\text{Total value of shares issued}}{\text{Preferred Shares issued}}\\&=\frac{\$7,87,500}{7,500}\\&=\$105\;\text{per share} \end{aligned}[/tex]

d) Annual dividend rate on preferred stock:

[tex]\begin{aligned}\text{Dividend rate on preferred stock}&=\frac{\text{Preferred dividend}}{\text{Preferred share capital}}\\&=\frac{\$47,250}{\$787,500}\times100\\&=6\% \end{aligned}[/tex]

e) Any amount of preferred dividend whose amount is under arrears then will not affect the balances reported for the retained earnings, this is because the amount of arrear of dividend is already under the note with the balance sheet.

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Vaughn Manufacturing reported the following information for 2016: October November December Budgeted sales $1000000 $940000 $1150000 All sales are on credit. Customer amounts on account are collected 50% in the month of sale and 50% in the following month. How much is the November 30, 2016 budgeted Accounts Receivable?

Answers

Answer:

The answer is : $970,000

Explanation:

To calculate this, we have to calculate the amounts collected from the month of sale(November) and the amount receivable from the other months and add them together. This is shown below as follows:

From October sales ($1000000): 50% is collected in the following month(October)

∴ 50% of 1,000,000 = 0.5 × 1,000,000 = $500,000

From November sales (940,000): 50% receivable in the month of sale

= 50% of 940,000 = $470,000

Therefore Accounts receivable at the end of November

= 470,000 + 500,000 = $970,000

For each of the following service departments, select the activity base listed that is most appropriate for charging service expenses to responsible units. Activity bases to choose from: Number of employees trained Number of payroll checks Number of sales invoices Number of computers Number of conference attendees Number of travel claims Number of purchase requisitions Number of cell phone minutes used Service Department Activity Base a. Accounts Receivable b. Central Purchasing c. Computer Support d. Conferences e. Employee Travel f. Payroll Accounting g. Telecommunications h. Training

Answers

Answer:

Explanation:

A. Accounts Receivable - Number of sales invoices

B. Central Purchasing - Number of purchase requisitions

C. Computer Support - Number of computers

D. Conferences - Number of conference attendees

E. Employee Travel - Number of travel claims

F. Payroll Accounting - Number of payroll checks

G. Telecommunications - Number of cell phone minutes used

H. Training - Number of employees trained.

According to our textbook, a firm creates a(n) _____ by dispersing the stages of its value chain to those locations around the globe where the value added is maximized or where the costs of value creation are minimized. A. integrate circle B. disperse chain C. global web D. international mesh

Answers

Answer:

The correct answer is letter "C": global web.

Explanation:

By outsourcing its activities, companies create a global web where their operations are extended to a network of many different firms that play a role in the production process of a good. This approach attempts to manufacture at lower materials and labor hand costs or where there is a special added value for production. Large entities like Apple have a global web for the manufacturing of their technological devices.

U.S. Bancorp holds a press conference to announce a positive news event that was unexpected to the market. As soon as the announcement is made, the stock price increases $8 per share but then over the next hour the price continues to increase resulting in a total increase of $11.
1. Given this information which of the following statements is correct?
A. This is an example of a market overreaction.
B. This is an example of a market underreaction.
C. This is an example of a semi-strong efficient market.
D. None of these statements is correct.

Answers

Answer:

The correct answer is B. This is an example of a market underreaction.

Explanation:

The term undervalued refers to the state an asset is in when studying its valuation or listing and observing that it is below what could be considered its real or fair value.  In the case of stocks, this phenomenon is experienced when earnings are not expected and therefore the generation of benefits is negatively impacted, taking into account that securities have prices determined by factors such as earnings, benefits and other factors. external social.

Final answer:

The correct statement is C, this is an example of a semi-strong efficient market. The stock price reflected the unexpected positive news quickly, indicating that newly available public information is rapidly incorporated into stock prices, characteristic of market efficiency. The correct option is c.

Explanation:

If U.S. Bancorp holds a press conference to announce unexpected positive news and the stock price immediately increases by $8 per share and continues to rise over the next hour for a total increase of $11, it suggests that the market is incorporating new information into the firm's market price. This situation would be an example of market efficiency, particularly semi-strong efficiency, where publicly available information is quickly reflected in a stock's price.

Traders in large financial firms often make quick moves based on new information, and if the stock continues to rise after the initial jump, it can imply that the initial reaction was not fully reflective of the new information's impact on the firm's profitability, hence the additional increase.

However, the answer to the student's question is C. This is an example of a semi-strong efficient market, meaning the market efficiently incorporates public information into stock prices, with some traders potentially profiting from acting swiftly on such information.

Gaston owns equipment that cost $17,000 with accumulated depreciation of $3,400. Gaston sells the equipment for $12,200. Which of the following would not be part of the journal entry to record the disposal of the equipment? Multiple Choice Debit Accumulated Depreciation $3,400. Debit Loss on Disposal of Equipment $1,400. Credit Equipment $17,000. Debit Cash $12,200. Credit Gain on Disposal of Equipment $1,400.

Answers

Answer:

Credit gain on disposal of equipment $1400 will not be a part of the journal entry

Explanation:

The carrying value is the value of an asset in books which is net of accumulated depreciation. The equipment of Gaston has a carrying value of = 17000 - 3400 = 13600 on the day of sale.

The gain or loss on disposal is calculated by deducting the carrying value from the sales proceeds of the asset. Thus, the gain/loss on sale of the asset is,

12200 - 13600 = - $1400 or a loss on disposal of $1400

Thus, the entry to record the disposal is,

Cash                                          $12200 Dr

Accumulated depreciation      $3400 Dr

Loss on disposal                       $1400 Dr

             Equipment                               $17000 Cr

Suppose you need to prove a suspect’s illicit income circumstantially. Which of the following methods of tracing assets would yield the best result when the suspect is using his illicit funds to accumulate wealth and acquire assets, thus causing his net worth to increase?

A. The income correlation method
B. The bank deposits method
C. The expenditures method
D. The asset method

Answers

Answer:

The asset method

Explanation:

Illicit funds are defined as monies and capital that moves illegally accross different countries. The funds are illegally earned and transferred.

When a suspect is using illicit funds to acquire wealth and assets a way to trace this will be to use the asset method.

The asset method involves valuation of assets at market value. When the value of an individual's assets is far above his income we can conclude he is involved in illicit financing.

Outstanding stock of the Marin Corporation included 54000 shares of $5 par common stock and 20000 shares of 5%, $10 par non-cumulative preferred stock. In 2016, Marin declared and paid dividends of $2700. In 2017, Marin declared and paid dividends of $27000. How much of the 2017 dividend was distributed to preferred shareholders?

Answers

Answer:

The amount of dividends distributed to preferred stockholders in 2017 is $10000.

Explanation:

The preferred stock is non cumulative which means that if the company is unable to pay dividends on preferred stock in a certain year, the dividend for that year will not be accumulated and will not be paid in the next year.

Thus, the company only paid a dividend of $2700 in 2016 and the remaining dividends will not be payable by the company in year 2017.

The dividend on each share of preferred stock per year is = 10 * 0.05 = $0.5 per share

The number of shares of preferred stock are 20000.

The total dividends that will be paid to preferred stock holders in 2017 is = 0.5 * 20000 = $10000

Thus, out of the $27000 dividends of 2017, $10000 was distributed to preferred stockholders.

The exhibit shows the breakdown of benefits and costs for a five-person community considering whether to purchase a $5,000 statue of Adam Smith to put in the center of the public square. If simple majority voting determines the outcome, the statue _______________ be purchased, and the total costs are ______________ the total benefits of the statue.

Answers

Answer:

B) will; less than

The exhibit shows the breakdown of benefits and costs for a five-person community considering whether to purchase a $5,000 statue of Adam Smith to put in the center of the public square. If simple majority voting determines the outcome, the statue will be purchased, and the total costs are less than the total benefits of the statue.

Explanation:

Attached is the completed question, including the table used for this question;

From the table;

For Milton, Maria and Kenneth the benefits of the statue is more than the cost levied on them(they would be in support)

For Jaime and maynard the benefits of the statue is less than the cost levied on them (not in support)

Since majority voting will determine the outcome, the statue will be purchased (3 in support and 2 against, majority is in support)

Total cost = $5000

Total benefits = $(1525+1315+505+845+1150) = $5340

Therefore, the total cost is less than the total benefits

Working capital cash flow. Cool​ Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 11​% of the monthly projected sales. These plastic bottles cost ​$0.007 each. The monthly sales for the first four months of the coming year are as​ follows: ​January: 1 comma 900 comma 000 ​February: 2 comma 300 comma 000 ​March: 2 comma 900 comma 000 ​April: 3 comma 000 comma 000 What is the monthly increase or decrease in cash flow for inventory given that an increase is a use of cash and a decrease is a source of​ cash? ​Note: Enter a decrease as a negative number. What is the change in working capital for​ January?

Answers

Answer:

The answer is attached;

Explanation:

Suppose that Billy McGee owns the Internet domain www.ironmaiden.com. Iron Maiden, the legendary British heavy metal band, was given the rights to the name by the World Intellectual Property Organization. Iron Maiden values the domain name at $250,000 and Billy McGee values the domain name at $330,000. The Coase theorem suggests that:
(a) Iron Maiden will buy the domain name from Billy McGee for less than $330,000.(b) Billy McGee will pay Iron Maiden between $250,000 and $330,000 to keep the domain name.(c) Billy McGee will pay Iron Maiden more than $330,000 to keep the domain name.(d) Iron Maiden will take the domain name.

Answers

Answer:

B

Explanation:

Coase theorem states that in a situation of conflicting property right . the trading parties should be able to arrive at a mutually benefiting term that should cover the the  cost and other underlying value of the property involved.

In the scenario above , for  Billy McGee to retain the domain name as the WIPO has already given the right to Iron maiden , he will have to pay iron maiden more than the value to iron maiden and less than the value to him so that the two can mutually benefit from the transaction

Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Culver, Inc. and Larkspur, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. 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.)

Answers

Answer:

Explanation:

Culver, Inc assets

Assets B. 75,000

Accumulated Depreciation

40,000

Asset A96,000

Cash. 15,000. Gain on exchange. 4,000

Larkspur Asset

(Asset B)

Asset A. 60,000. Accumulated Depreciation 47,000.

Cash. 15,000. Asset B. 110,000. Gain on exchange. 12,000. (b) let's say that the exchange of Assets A and B lacks commercial substance, record the exchange for both Culver, Inc. and Larkspur, Inc . in accordance with generally accepted accounting principles.

Culver's Asset (Asset A)

Asset B. 71,000

Accumulated Depreciation

40,000

Asset A.

96,000

Cash. 15,000

Larkspur Asset (Asset B)

Asset A. 50,400

Accumulated Depreciation

47,000

Cash. 15,000

Asset B. 110,000

Gain on exchange. 2,400.

Harrison​ Holdings, Inc.​ (HHI) is publicly​ traded, with a current share price of $ 30 per share. HHI has 25 million shares​ outstanding, as well as $ 66 million in debt. The founder of​ HHI, Harry​ Harrison, made his fortune in the fast food business. He sold off part of his fast food​ empire, and purchased a professional hockey team.​ HHI's only assets are the hockey​ team, together with 50 % of the outstanding shares of​ Harry's Hotdogs restaurant chain.​ Harry's Hotdogs​ (HDG) has a market capitalization of $ 843 ​million, and an enterprise value of $ 1.09 billion. After a little​ research, you find that the average asset beta of other fast food restaurant chains is 0.74. You also find that the debt of HHI and HDG is highly​ rated, and so you decide to estimate the beta of both​ firms' debt as zero.​ Finally, you do a regression analysis on​ HHI's historical stock returns in comparison to the​ S&P 500, and estimate an equity beta of 1.36. Given this​ information, estimate the beta of​ HHI's investment in the hockey team.

Answers

Euity qBeta of Hotdog = 0.9

Answer:

Nos of Equity Share = 25 Million

Current Share Price 30

HHI Equity=25 × 30 = 750  

HHI Debt  = 66 Million

Beta of Equity of HHI = 1.36

Beta of debt of HHI  = 0

HHI Assets Beta   =    Equity Beta × Equity/(Equity + debt) + Debt

                                    Beta + Debt/(Equity + debt)

                             =     1.21

Holdings of hotdogs = 843/2= 421.5

Therefore Value of Hockey Team = (750 + 64) - 421.5= 392.5

Hotdog Equity beta = (843/1090) × Equity beta + (247/1090) × 0 = 0.74

Hotdog Equity beta = 0.96

HHI Assets Beta = 1.21

(421.5/(421.5 + 392.5)) 0.96 + (392.5/(421.5 + 392.5)) × Beta of Hockey team = 1.21

0.4971 + 0.4822 × Beta of Hockey team = 1.21

after solving Beta of Hockey team = 1.48

The early majority group A. tends to have the greatest contact with salespeople. B. tends to cling to the status quo and think it's the safe way. C. prefers to do things the way they have been done in the past and are very suspicious of new ideas. D. tends to avoid risk and waits to consider a new idea after many early adopters have tried it-and liked it. E. can help the promotion effort by spreading word-of-mouth information and advice among other consumers.

Answers

Answer

D. tends to avoid risk and waits to consider a new idea after many early adopters have tried it-and liked it.

Explanation:

The concept of the diffusion of innovation suggests the categories of the adopters as the innovators, early adopters, early majority, later majority, and laggards. The diffusion of technology manifests indifferent depending on the type of adoption. The innovator is the broad category of people that have current knowledge of the unit and are the first ones to try out the new products and give their reviews, they take risks and have high social status, have close contact with the scientific sources. The early adopters are the highest degree of the opinion leaders, whereas the early majority are those that adopt the product after varying degrees of time longer than innovators and adopters.
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