Answer:
The classified list of items is as follows:
(a) Issuance of ownership shares - Common stock
(b) Land purchased - Asset
(c) Amounts owed to suppliers - Liability
(d) Bonds payable - Liability
(e) Amount earned from selling a product - Revenue
(f) Cost of advertising - Expense
Hence, all the items are classified as asset, liability, revenue, common stock and expense.
Daniel is a baker who has decided to create his own brand of chain restaurants, Short and Sweet. He negotiates with three suppliers for weeks and ultimately signs contracts with these suppliers. Francis, who owns a new sugar plantation, agrees to sell Daniel freshly refined sugar on the condition that Daniel helps him advertise his brand of sugar. Diana runs an orchard and provides Daniel with fruit. She enters into the partnership knowing that she can dramatically increase her profits if she can sell fruit to Daniel. Lastly, Ryan, who owns a mill, decides to purchase a new piece of machinery so that he can sell Daniel flour at a lower price than his competitor. The end result of Daniel\'s interactions with his suppliers is that folks in his neighborhood have a chance to buy delicious baked goods at reasonable prices. This is an example of:
A) Market Failure
B) A command economy
C) The invisible Hand
D) A recession
Answer:
C) The invisible hand
Explanation:
Daniel here seeking to produce and increase his welfare is "led by an invisible hand" to negotiate with his suppliers and to sell goods to his neighbors in a way that everybody is better off as a result from these transactions.
This is also a clear example to what Adam Smith was referring to the invisible hand:
"in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was not part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. " Adam Smith, The Wealth of Nations, Book 4, Chapter 2
Suppose that a country increased its saving rate. In the long run it would have
a. higher productivity, and another unit of capital would increase output by more than before.
b. higher productivity, but another unit of capital would increase output by less than before.
c. lower productivity, and another unit of capital would increase output by more than before.
d. lower productivity, but another unit of capital would increase output by less than before.
Answer:
a. higher productivity, and another unit of capital would increase output by more than before.
Explanation:
The productivity will be higher as more saving will increase investment.
Therefore, the economy will be more productive as there is more capital per worker.
Is important to comment that due to diminished return theory each additional unit of capital would increase this productivity by a fewer amount. But, this applies on the short run, when the other factors don't change.
Therefore, option a is the correct as the capital increase is not faced agains a bottleneck of the other factor (labor, business and land)
Increasing a country's saving rate leads to higher productivity due to increase in capital stock. However, due to the law of diminishing returns, each additional unit of capital increases output less than the previous unit.
Explanation:In economic terms, if a country increases its saving rate, it suggests that more of the citizens' income is being put in savings rather than being spent on consumption. In the long run, this increased saving will lead to a rise in the capital stock, as resources that might have been used for consumption can now be invested in physical capital or human capital. This results in higher productivity as the increase in capital stock improves the ability to produce goods and services.
However, as the country accumulates more capital, it experiences what's known as the law of diminishing returns. In other words, each additional unit of capital results in less and less additional output. This is because as capital increases while keeping other factors same (like labor), it becomes more difficult to efficiently utilize the additional pieces of capitals. So, the correct answer should be: b. higher productivity, but another unit of capital would increase output by less than before.
https://brainly.com/question/32478230
#SPJ3
Service revenue $ 78,500 Rent expense 21,000 Postage expense 1,500 Salaries expense 22,000 Legal fees expense 2,600 Supplies expense 20,000 In addition, the balance of common stock at the beginning of the year was $175,000, and the balance of retained earnings was $36,000. During the year, the company issued additional shares of common stock for $30,000 and paid dividends of $20,000. Required: Prepare an income statement. Prepare a statement of stockholders’ equity.
Answer:
statement of stockholders' equity
for the year ended 31th December 20XX
Common Stock Retained Earings Total
Balance Jan 1 175,000 36,000 211, 000
Net Earnings 30,900 30,900
Dividends -20,000 -20,000
Stock issued 30,000 30,000
Balance, Dec 31 205,000 46,900 251,900
Explanation:
The first step, will be to calculate the net incoem:
Revenue 78,000
Rent expense 21,000
postage expense 1 ,500
salaries expenses 22,000
legal fees expense 2,600
Total expense (47,100)
Net earnings 30,900
And now we can build the statement of Stockholders equity
You’re on a product development team for Kard Foods. Your team’s mission is to develop new products targeted at the Hispanic/Latino market. You’re in your fourth meeting with the team, and you’re beginning to wonder whether you’ll ever manage to settle on a product. Two of your teammates are proposing an enchilada kit. Another team member thinks Kard should get into the dessert market and suggests churros. You believe that a Mexican-style sauce, mole perhaps, would be a more versatile option. You and your teammates are going around and around in circles while the leader attempts to refocus the team on its purpose and review the group’s ground rules for discussion. Which phase of team development does this situation describe?
Answer:
The situation fits well in the storming stage of the team development process.
Explanation:
Team development is based on five stages and storming is the second phase. The chances of conflicts and personality clashes is high during this stage as members tend to disagree with each other view points. The disagreements are also caused due to the fact that the team is newly formed and members are in the process making peace with each other.
Larcker Manufacturing's cost accountant has provided you with the following information for January operations. Direct materials $ 34 per unit Fixed manufacturing overhead costs $ 230,000 Sales price $ 190 per unit Variable manufacturing overhead $ 18 per unit Direct labor $ 30 per unit Fixed marketing and administrative costs $ 205,000 Units produced and sold $ 6,000 Variable marketing and administrative costs $ 8 per unit Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement.
Answer:
Please see details below
Explanation:
Gross Margin income statement
Sales $ 1.140.000
Direct Labor -$ 180.000
Direct Materials -$ 204.000
Variable Manuf. Overhead -$ 204.000
Gross Profit $ 552.000
Manufacturing Overhead -$ 230.000
Fixed Mktg Costs -$ 205.000
Operating Expenses -$ 35.000
Variable Mktg Cost -$ 48.000
Net Income $ 34.000
Contribution Margin Inc. statement.
Sales $ 1.140.000
Direct Labor -$ 180.000
Direct Materials -$ 204.000
Variable Manuf. Overhead -$ 204.000
Gross Contribution Margin $ 552.000
Variable Mktg Cost -$ 48.000
Fixed Mktg Costs -$ 205.000
Operating Expenses -$ 35.000
Contribution Margin $ 264.000
Manufacturing Overhead -$ 230.000
Net Income $ 34.000
Financial data for Joel de Paris, Inc., for last year follow:
Joel de Paris, Inc.
Balance Sheet
Beginning
Balance Ending
Balance
Assets
Cash $ 129,000 $ 132,000
Accounts receivable 344,000 471,000
Inventory 568,000 471,000
Plant and equipment, net 819,000 826,000
Investment in Buisson, S.A. 392,000 434,000
Land (undeveloped) 253,000 251,000
Total assets $ 2,505,000 $ 2,585,000
Liabilities and Stockholders' Equity
Accounts payable $ 386,000 $ 349,000
Long-term debt 1,027,000 1,027,000
Stockholders' equity 1,092,000 1,209,000
Total liabilities and stockholders' equity $ 2,505,000 $ 2,585,000
Joel de Paris, Inc.
Income Statement
Sales $ 4,700,000
Operating expenses 4,042,000
Net operating income 658,000
Interest and taxes:
Interest expense $ 121,000
Tax expense 204,000 325,000
Net income $ 333,000
The company paid dividends of $216,000 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company.
Required:
1.
Compute the company’s margin, turnover, and return on investment (ROI) for last year. (Round your answers to 2 decimal places.)
2.
The board of directors of Joel de Paris, Inc., has set a minimum required rate of return of 21%. What was the company’s residual income last year?
Final answer:
1. Margin: 7.1%, Turnover: 714%, ROI: 12.8%. 2. Residual income: $138,180
Explanation:
1. Compute the company’s margin, turnover, and return on investment (ROI) for last year:
Margin: Margin is calculated by dividing net income by sales. In this case, the net income is $333,000 and the sales are $4,700,000. Therefore, the margin is 0.071 or 7.1%.Turnover: Turnover is calculated by dividing the cost of goods sold by the average inventory. The cost of goods sold can be calculated by subtracting the gross profit from the operating expenses. In this case, the cost of goods sold is $3,711,000 and the average inventory is ($568,000 + $471,000)/2 = $519,500. Therefore, the turnover is 7.14 or 714%.Return on Investment (ROI): ROI is calculated by dividing the net income by the total assets. In this case, the net income is $333,000 and the total assets are $2,585,000. Therefore, the ROI is 0.128 or 12.8%.2. The company’s residual income last year:
Residual income is calculated by subtracting the minimum required rate of return from the net operating income. In this case, the net operating income is $658,000 and the minimum required rate of return is 21%. Therefore, the residual income is $138,180 ([$658,000 - (0.21 * $2,505,000)].
At what amount will accounts receivable be reported on the balance sheet if the gross receivable balance is $35,000 and the allowance for uncollectible accounts is estimated at 18% of gross receivables? (Do not include a comma or dollar sign in your answer.)
Answer:
Accounts Recevable will be reported with same gross value 35000
Explanation:
The accounts receivable keep the same balance, the difference is that you have to add an assets current account named allowance for uncollectible accounts with a credit balance for the amount indicated 6300, and the net value of accounts receivable it's 28700.
Suppose a firm produces a PERISHABLE good: produces $10 million worth of final goods only sells $9 million worth $1 million worth of final goods spoils Does this violate the expenditure = output identity?
Answer:
No
Explanation:
This does not violate the expenditure = output identity because this idenity says that goods-in-stock /unsold goods produced and ready for sale but not yet sold (inventory) are also a part of output, which if sold in the next accounting period, would still be calculated as sale in the current period, since it is the sale of output produced in the current year.
The scenario does not violate the expenditure = output identity because the value of spoiled goods is included in the output but not in the expenditures.
In national accounting, the total value of final goods produced (output) includes both sold and unsold goods. Thus, the firm produces $10 million worth of goods, of which $9 million is sold, and $1 million spoils. The spoiled goods are part of the output but are not reflected in the expenditure, maintaining the identity.
Output includes all produced final goods, sold or not.Expenditure accounts for the actual sales.Spoiled goods are counted in output but not in expenditure.This ensures that the accounting identity holds true as output still equals the sum of expenditures and unsold (including spoiled) goods.
Assume Italy and Niger can both produce grain and dates, and that the only limited resource is the farming labor force, meaning that land, water, and all other resources are plentiful in both countries.
Each farmer in Italy can produce 10 tons of grain or 5 tons of dates in a season. In Niger they can produce 10 tons of grain of due to the climate 25 tons of dates.
Which country has the absolute advantage in producing dates?
Which country has comparative advantage in producing dates?
Which country has the absolute advantage in producing grain?
Which country has the comparative advantage in producing grain?
Answer:
absolute on grain: neither, both produce 10
comparative grain: Italy as renounce to less tonds of dates: 0.5 to 2.5
absolute dates: Niger 25 to 5
comparative dates: Niger as it cost 0.4 tonds of grain to produce 1 ton of dates.
Explanation:
For the absolute, we will check which yield the better number.
Fot the comparative, we will check the opportunity cost:
output/potential output of another product
opp cost grain in Italy: 5/10 = 0.5 tons of dates
opp cost grain in Niger: 25/10 = 2.5 tonds of dates
opp cost dates in Italy: 10/5 = 2 tonds of grain
opp cost dates in Niger 10/25 = 0.4 tonds of grain
Nonconstant Growth Stock Valuation Assume that the average firm in your company's industry is expected to grow at a constant rate of 5% and that its dividend yield is 6%. Your company is about as risky as the average firm in the industry and just paid a dividend (D0) of $3. You expect that the growth rate of dividends will be 50% during the first year (g0,1 = 50%) and 25% during the second year (g1,2 = 25%). After Year 2, dividend growth will be constant at 5%. What is the required rate of return on your company’s stock? What is the estimated value per share of your firm’s stock? Do not round intermediate calculations. Round the monetary value to the nearest cent and percentage value to the nearest whole number.
Answer:
Rate of return of the company 8.15%
Explanation:
"Do not round intermediate calculations." We will work with as many decimal as needed to provide the most accurate answer.
From the dividends yield we will calculate the Stock market price:
dividends/market price = 0.06
3/market price = 0.06
3/0.06 = market price = 100
100 is the value of the PV of all the dividends inflow
Now we will calcualte the grow in the market prce:
100 x 1.5 in the first year x 1.25 in the second = 187.5
Then, we can solve for rate using the gordon model:
D2 will be the D0 of the model
So we use Dividends for the third year.
D0 = $3
D1 = D0 x 1.5 = 3 x 1.5 = 4.5
D2 = D1 x 1.25 = 4.5x 1.25 = 5.625
D3 = 5.625 x 1.05 =5,90625
We set up the gordon formula
[tex]\frac{divends}{return-growth} = Intrinsic \: Value[/tex]
[tex]\frac{5.90625}{return-0.05} = 187.5[/tex]
[tex]\frac{5.90625}{187.5} = return - 0.05[/tex]
[tex]\frac{5.90625}{187.5} + 0.05 = return[/tex]
rate of return: 0.0815 = 8.15%
MaltHanks Inc., a leading American firm, starts its operations in China. It incurs a lot of additional costs in comparison to the local firms. These costs originate in limited local knowledge and local stakeholders' discriminatory attitudes. Which of the following best describes the problem faced by MaltHanks?
a. Foreign premium
b. Liability of foreignness
c. Liability of localization
d. International premium
Answer: Liability of foreignness
Explanation: In simple words, the extra cost incurred by a company operating in a foreign country as compared to the local companies over there is called the liability of foreignness.
In the given case, the American company incurred extra cost in china due to their lack of local knowledge and discrimination from the locals.
Thus, from the above we can conclude that Malt hanks faced liability of foreignness.
Marian Kirk wishes to select the better of two 10-year annuities, C and D. Annuity C is an ordinary annuity of $2,500 per year for 10 years. Annuity D is an annuity due of $2,200 per year for 10 years.
a. Find the future value of both annuities at the end of year 10, assuming that Marian can earn
(1) 10% annual interest and
(2) 20% annual interest.
b. Use your findings in part a to indicate which annuity has the greater future value at the end of year 10 for both the
(1) 10% and
(2) 20% interest rates.
In financial mathematics, the future values of two annuities at the end of year 10 with both 10% and 20% interest rates are calculated. Annuity C has values are $25,937.42 and $38,759.36 respectively, while annuity D's values at these rates are $28,531.16 and $42,635.23. Hence, Annuity D has the greater future value for both interest rates.
Explanation:The subject matter of this particular question involves financial mathematics, and more specifically, annuities. To determine the future value of annuities C and D at the end of year 10 with both 10% and 20% interest rates, we'll use the future value formula for an ordinary annuity and annuity due.
For the ordinary annuity (C), the formula is: FV = P * [ (1 + r)n - 1) / r ] where P = periodic payment, r = interest rate, n = number of periods. Meanwhile, for the annuity due (D), it's: FV = P * [ (1 + r)n - 1) / r ] * (1 + r).
Calculating these for each scenario gives:
At 10% annual interest, annuity C = $25,937.42 and annuity D = $28,531.16.At 20% annual interest, annuity C = $38,759.36 and annuity D = $42,635.23.Therefore, Annuity D has the greater future value at the end of year 10 for both 10% and 20% interest rates.
Learn more about Future Value of Annuities here:https://brainly.com/question/33138987
#SPJ3
An executive from a large merchandising firm has called your vice president for production to get a price quote for an additional 100 units of a given product. The vice president has asked you to prepare a cost estimate. The number of hours required to produce a unit is 8. The average labor rate is $17 per hour. The materials cost $14 per unit. Overhead for an additional 100 units is estimated at 30% of the direct labor cost. If the company wants to have a 40% profit margin, what should be the price to quote for 100 units?
Final answer:
To prepare a cost estimate for an additional 100 units, calculate the total direct costs and overhead, then apply the desired profit margin. The total cost of production for 100 units is $19,080, and to achieve a 40% profit margin, the quoted price for 100 units should be $31,800, or $318 per unit.
Explanation:
To calculate the price quote for 100 units of a product, we begin with the direct costs, which include labor costs and the cost of materials. The labor cost per unit is $17 per hour for 8 hours, totaling $136 per unit. The material cost per unit is $14. Therefore, the total direct cost is $136 (labor) + $14 (materials) = $150 per unit. For 100 units, the direct cost is $150 x 100 = $15,000.
The overhead cost is estimated at 30% of the direct labor cost, which is 0.30 x ($17 x 8 x 100) or $4,080. Adding the direct costs and the overhead cost, the total cost of production for 100 units is $15,000 + $4,080 = $19,080.
To achieve a 40% profit margin, the profit is calculated as a percentage of the total cost. To find the price to quote, we divide the total cost by (1 - profit margin), i.e., $19,080 / (1 - 0.40) = $31,800 for 100 units. This means the price per unit should be $31,800 / 100 = $318.
Heather deposited $1,700 at her local credit union in a savings account at the rate of 9.8% paid as simple interest. She will earn interest once a year for the next 13 years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Heather in 13 years?
Answer: $3865.8
Explanation:
The formula to find the simple interest is given by :-
[tex]I=Prt[/tex], where P is the initial amount deposited , r is the rate of interest in decimal and t is the time period in years.
Given : P= $1700 ; r= 9.8%=0.098 ; t=13 years
Then , the simple interest earned in 13 years will be :-
[tex]I=1700\times0.098\times13=2165.8[/tex]
Now, the combined amount = P+I =$1700+$2165.8= $3865.8
Hence, the credit union would owe Heather $3865.8 in 13 years.
Answer:= $3,865.80
Explanation:
alculate the future value (FV) of the investment in 13 years as follows:
I = Interest Earned in One Year x Number of Years
= (9.8% x $1,700.00) per year x 13 years
= $2,165.80
FV n = Initial Investment (PV 0 ) + Total Interest Earned (I)
FV 13 = $1,700.00 + $2,165.80
= $3,865.80
Windsor, Inc. has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis. Aug. 1 Opens an office as a financial advisor, investing $4,100 in cash in exchange for common stock. 4 Pays insurance in advance for 6 months, $1,850 cash. 16 Receives $400 from clients for services performed. 27 Pays secretary $1,760 salary.
Answer:
a) the accounting equations keeps equals
b) in the explanation at the bottom
Explanation:
Agu 1.
a)the effect on the accounting equation
1. Opens an office as a financial advisor, investing $4,100 in cash in exchange for common stock.
the asset keeps the same
Pays insurance in advance for 6 months, $1,850 cash
the asset keeps the same
Receives $400 from clients for services performed
the asset increase because the cash increase +$400 and the accounts receivable decreased
Pays secretary $1,760 salary.
The cash decrease because paid -$1,760 and the account of the salaries to pay decrease -$1.760
b) the debit-credit analysis
debit credit
Cash -$4.100 assets account
investing +4100 assets account
Cash -$1.850 assets account
Pays insurance +1.850 assets account
Cash +400 assets account
Acc receivable -400 assets account
cash -1.760 assets account
wages to pay -1.760 liabilities account
Income Statement Talbot Enterprises recently reported an EBITDA of $7.5 million and net income of $1.875 million. It had $1.95 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.
Answer:
D&A= 2425000
Explanation:
Giving the following information, we need to find the charge for depreciation and amortization:
EBITDA= 7500000
Interest=1950000
Net income= 1875000
t=0,40
We know that:
EBITDA
Depreciation & Amortization Expense (-)
=Operating Income or EBIT
Interest (-)
Other Expenses (-)
=EBT (Pre-Tax Income)
Income Taxes (-)
=Net Income
First, we need to calculate the amount of tax:
Tax= [net income/(1-t)]- net income= 1250000
EBIT= Net profit + Tax + Interest= 1875000 + 1250000+ 1950000= 5075000
Now we can calculate the amount of depreciation and amortization:
D&A= EBITDA- EBIT= 7500000 - 5075000= 2425000
You work as an assistant coach on the university basketball team and earn $11 per hour. One day, you decide to skip the hour-long practice and go to the local carnival instead, which has an admission fee of $8. The total cost (valued in dollars) of skipping practice and going to the carnival (including the opportunity cost of time) is
Answer:
$19 plus additional $11 per hour if you decide to stay longer in the carnival.
Explanation:
The initial cost of this decision would be the 8 dollars that the entrance to the carnival costs. But because an opportunity cost was incurred (failing to receive the income generated as a coach in the basketball team) so the opportunity cost is 11 dollars, this added to the cost of entry gives us a Total cost of $ 19 for the decision made.
564/5000
The initial cost of this decision would be the 8 dollars that the entrance to the carnival costs. But because an opportunity cost was incurred (failing to receive the income generated as a coach in the basketball team) so the opportunity cost is 11 dollars, this added to the cost of entry gives us a total cost of $ 19 for the decision made
Note: This only if you are in the carnival for an hour, if you are longer, the opportunity cost will increase $11 for each hour of income not perceived as a basketball coach
Billy’s Exterminators, Inc., has sales of $592,000, costs of $284,000, depreciation expense of $36,000, interest expense of $28,000, a tax rate of 35 percent, and paid out $40,000 in cash dividends. The firm has 80,000 shares of common stock outstanding. What are the earnings per share?
Answer:
EPS = $1.9825
Explanation:
EPS (earnings per share) = Net Income / shares of common stock outstanding
Income before taxes = $592,000 - $284,000 - $36,000 - $28,000 = $244,000
Tax = $244,000 x 35% = $85,400
Net Income = $244,000 - $85,400 = $158,600
EPS = $158,600 / 80,000 = $1.9825
Hope this helps!
Which of the following statements regarding the exercise of options contracts are TRUE? The exercise of equity options settles the next business day. The exercise of equity options settles in 2 business days. The exercise of index options settles next business day. The exercise of index options settles in 2 business days.
Equity options settle in 2 business days, while index options settle the next business day.
Explanation:The statement that is true regarding the exercise of options contracts is that the exercise of equity options settles in 2 business days.
Equity options are options contracts that give the holder the right to buy or sell shares of a specific company's stock at a predetermined price within a specified time period. When an equity option is exercised, the settlement process takes 2 business days for the transfer of ownership to occur.
On the other hand, index options settle the next business day. Index options are options contracts based on the performance of a financial index, such as the S&P 500. When an index option is exercised, the settlement occurs on the next business day.
Learn more about Options contract settlement here:https://brainly.com/question/31236291
#SPJ6
"The correct statements regarding the exercise of options contracts are:
1. The exercise of equity options settles in 2 business days.
2. The exercise of index options settles next business day.
To understand the settlement process for options contracts, it is important to distinguish between equity options and index options:
1. Equity Options: These are options contracts on individual stocks. When an equity option is exercised, the transaction is settled in two business days. This means that if an investor decides to exercise an equity call option, they will receive the shares of the underlying stock two business days after the exercise notice is submitted. Conversely, if an equity put option is exercised, the investor will be required to deliver the shares of the underlying stock two business days after exercising the option.
2. Index Options: These are options contracts on stock indices, such as the S P 500. The settlement process for index options is different from that of equity options. When an index option is exercised, it is settled on the next business day. This is because index options are cash-settled rather than settled by the delivery of the underlying asset. Upon exercise, the option holder receives or pays the cash value of the option based on the difference between the strike price and the index level, which is determined on the day following the exercise.
Therefore, the statements "The exercise of equity options settles in 2 business days" and "The exercise of index options settles next business day" are accurate and true. The other two statements, "The exercise of equity options settles the next business day" and "The exercise of index options settles in 2 business days," are incorrect and do not reflect the standard settlement procedures for these types of options contracts."
Consider the following events: A petty cash fund of $200 was established on April 1, Year 1. Employees were reimbursed when they presented petty cash vouchers to the petty cash custodian. On April 30, Year 1, the petty cash fund contained vouchers totaling $196.50 plus $2.20 of currency. Required Answer the following questions: a. How did the establishment of the petty cash fund affect (increase, decrease, or have no effect on) total assets? Increase Decrease No effect
Establishing a petty cash fund results in an increase in a company's total assets. It's considered an asset because it's used to cover minor business expenses. However, it does not provide an overall increase in total assets, as it is a re-allocation from existing assets (e.g. bank account).
Explanation:When the petty cash fund was established, it increased total assets. The establishment of a petty cash fund is a financial transaction involving cash - an asset. When the fund was set up with $200, that amount was taken from another asset account (potentially a bank account) and transferred into the petty cash fund, essentially relocating these assets instead of creating or losing them. However, total assets remain the same because one asset (bank account balance) was reduced while another asset (petty cash) was increased.
The scenario provided about Singleton Bank and Hank's Auto Supply shows that deposits and loans are both assets, deposits for the depositor and loans for the bank. The bank expects to earn interest from the loan, hence, it is an asset. Similarly, the petty cash fund in a company is considered an asset because the company can use it to pay for small business expenses.
Learn more about Petty Cash Fund here:https://brainly.com/question/29574983
#SPJ3
Selected financial information for Allen, Inc. for the month is provided below. Beginning work in process inventory $3,800 Direct materials used 16,300 Direct labor 19,100 Manufacturing overhead Total manufacturing costs 65,800 Total cost of work in process Ending work in process 9,100 Cost of goods manufactured Beginning finished goods Cost of goods available for sale 78,400 Ending finished goods Cost of goods sold 75,200 Compute the total cost of work in process. $69,600 $12,900 $5,300 $65,800
Answer:
$69,600
Explanation:
For computing the total cost of work in process, we need to apply the formula which is shown below:
= Ending work in process inventory + Total manufacturing costs
= $3,800 + 65,800
= $69,600
The other costs which are given in the question are not considered in the computation part. Hence, we ignored that cost.
Consider four different stocks, all of which have a required return of 15 percent and a most recent dividend of $4.20 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent, 0 percent, and –5 percent per year, respectively. Stock Z is a growth stock that will increase its dividend by 20 percent for the next two years and then maintain a constant 10 percent growth rate thereafter. What is the dividend yield for each of these four stocks
Answer:
Dividend yield for W = 5%
Dividend yield for X = 15%
Dividend yield for Y = 20%
Dividend yield for Z = 4.6%
Explanation:
For a constant growth stock [tex]Price =\frac{D1}{r-g}[/tex]
If r is made subject of formula; r=[tex] \frac{D1}{Price}+g[/tex] = div yield + growth rate
For Stock W, given r = 15% and g= 10%; dividend yield = 15%-10%=5%
For Stock X, given r = 15% and g= 0%; dividend yield = 15%-0%=15%
For Stock Y, given r = 15% and g= -5%; dividend yield = 15%-(-5)%=20%
For Stock Z, the price of the stock today is calculated as follows:
Price of the stock today = [tex]\frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{P2}{(1+ke)^2}[/tex].
where P2= [tex] \frac{D3}{ke-g}[/tex]
Price of the stock today = [tex]\frac{4.2(1.2)}{(1+0.15)^1}+\frac{4.2(1.2)^2}{(1+0.15)^2}+\frac{4.2(1.2)^2(1.1)}{(0.15-0.1)(1+0.15)^2}[/tex]=109.57
Therefore dividend yield =[tex]\frac[D1}{Price}[/tex] = [tex]\frac{4.2(1.2)}{109.57}= [/tex]4.6%
The CPI is more commonly used as a gauge of inflation than the GDP deflator is because...
a. the CPI better reflects the goods and services bought by consumers.
b. the GDP deflator cannot be used to gauge inflation.
c. the CPI is calculated more often than the GDP deflator is.
d. the CPI is easier to measure
Answer:
I think answer the gDp deflator cannot be used to gauge inflation
The CPI is favored over the GDP deflator for gauging inflation because it more closely reflects the consumer spending on goods and services, representing the cost of living experienced by individuals.So,option a is correct.
The CPI (Consumer Price Index) is more commonly used as a gauge of inflation than the GDP deflator because a. the CPI better reflects the goods and services bought by consumers. The CPI is designed to measure the average price changes of a basket of goods and services typically purchased by urban consumers, which aligns closely with the general cost of living and consumer spending patterns. Unlike the CPI, the GDP deflator includes all new, domestically produced, final goods and services in an economy, regardless of whether they are purchased by consumers or not, such as investment goods and government services. Therefore, while the GDP deflator can serve as a measure of inflation across the entire economy, the CPI is more representative of the inflation experienced by individual consumers.
Which of the following statements about marketing is TRUE? A) It is of little importance when products are standardized. B) It can help create jobs in the economy by increasing demand for goods and services. C) It helps to build a loyal customer base but has no impact on a firm's intangible assets. D) It is not needed in an Internet-fueled environment. E) It is seldom used by nonprofit organizations.
Answer:
B) It can help create jobs in the economy by increasing demand for goods and services
Explanation:
E) UNICEF and other nonprofit organizatin do marketing do raise funds
D) on internet there are tons of marketing campaing of different company's and styles.
C) if it build loyal customers, it is building a brand name which is an intangible assets
A) no company would spend on activities with no importance.
B) The marketing aims to increase the knowledge of the firm and sales or fund rasing, his will create jobs and therefore, helping the economy.
Marketing plays a crucial role in the economy by stimulating demand for goods and services, creating jobs, and contributing to a firm's intangible assets. Therefore, option B is correct.
Marketing is the process of identifying, anticipating, and satisfying customer needs and wants through the creation, communication, and delivery of valuable offerings.
It involves various activities such as market research, product development, pricing, promotion, and distribution, with the goal of creating and capturing customer value.
Marketing aims to attract, retain, and grow a customer base by understanding their preferences and providing superior value compared to competitors.
It encompasses both strategic planning and tactical execution to effectively reach target markets, build brand awareness, and foster long-term customer relationships.
Therefore, option B is correct.
Learn more about Marketing here:
https://brainly.com/question/14197287
#SPJ6
Phildell Phoenix is paid monthly. For the month of January of the current year, he earned a total of $8,288. The FICA tax rate for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,375.17. What is the total amount of taxes withheld from the Phoenix's earnings?Select one:a. $3,097.17b. $2,443.21c. $2,009.21d. $1,722.00e. $1,495.36
Answer:
Total deduction 2,443.21
Explanation:
8,288
x 6.20% Sccial Security 513.856
x 1.45% Medicate 120.176
x 6.20% FUTA&SUTA (for 7,000) 434
Income tax witheld 1,375.17
Total deduction 2,443.21
We will multiply his taxable wages for period by the tax rate.
We must noticew FUTA and SUTA applies fdor the first 7,000 only so we multiply by 7,000 not by 8,288
Final answer:
The total amount of taxes withheld from Phildell Phoenix's earnings for January is $2,443.21 after calculating the Social Security tax, Medicare tax, FUTA tax, SUTA tax, and adding the federal income tax.
Explanation:
To calculate the total amount of taxes withheld from Phildell Phoenix's earnings for the month of January, we need to consider the following: federal income tax, Social Security, Medicare, FUTA, and SUTA taxes. As specified, the Social Security tax rate is 6.2%, Medicare tax rate is 1.45%, FUTA tax rate is 0.8%, and SUTA tax rate is 5.4%. The federal income tax withheld is given as $1,375.17.
First, calculate the Social Security tax:
$8,288 x 6.2% = $513.86. Next, calculate the Medicare tax: $8,288 x 1.45% = $120.18. The FUTA and SUTA taxes only apply to the first $7,000 of Phoenix's pay. So, the FUTA tax is $7,000 x 0.8% = $56. The SUTA tax is $7,000 x 5.4% = $378.
Add these tax amounts to the federal income tax withheld:
Federal Income Tax: $1,375.17
Social Security Tax: $513.86
Medicare Tax: $120.18
FUTA Tax: $56
SUTA Tax: $378
Total Taxes Withheld = $1,375.17 + $513.86 + $120.18 + $56 + $378 = $2,443.21
Therefore, the total amount of taxes withheld from Phoenix's earnings is $2,443.21, which corresponds to option b.
In the JK partnership, Jacob's capital is $140,000, and Katy's is $40,000. They share income in a 3:2 ratio, respectively. They decide to admit Erin to the partnership. Each of the following questions is independent of the others.
Refer to the information provided above. What amount will Erin have to invest to give her a one-fourth interest in the capital of the partnership if no goodwill or bonus is recorded?
A. $45,000
B. $50,000
C. $60,000
D. $66,000
Answer:
C. $60,000
Explanation:
For computing the Erin investment, we have to assume the things which is shown below:
Let us assume Erin investment be X
We know that Erin would contributed 1 ÷ 4 investment in partners capital
So, the equation would be
1 ÷ 4 × ( $140,000 + $40,000 + X) = X
1 ÷ 4 × ($180,000 + X) = X
$45,000 + 1 ÷ 4X = X
So, $45,000 = 3 ÷ 4X
So, X = $45,000 × 4 ÷ 3
= $60,000
Perpetuities are also called annuities with an extended or unlimited life. Based on your understanding of perpetuities, answer the following questions. Which of the following are characteristics of a perpetuity? Check all that apply.
(A) The principal amount of a perpetuity is repaid as a lump-sum amount
(B) In a perpetuity, returns-m the form of a series of identical cash flows-are earned.
(C) A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue Indefinitely Into the future.
(D) A perpetuity continues for a fixed time period.
Answer:
(C) A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue Indefinitely Into the future.
Explanation:
a false
the principal is never repaid on a perpetuity
d false the perpetuity is for an indefinite period of time.
definition:
the perpetuity consist in a principal which yield a return over time indefinite. this return do not include any amortization in the principal neither principal installment are done through the investment or loan life
Which of the following statements is true of global agnostics?
a. They are in favor of buying global brands that signal prestige and cachet.
b. They are skeptical about whether global brands deliver higher-quality goods.
c. They are most likely to lead anti-globalization demonstrations.
d. They may not be able to afford, but nevertheless admire, global brands.
Answer:
c. They are most likely to lead anti-globalization demonstrations.
Explanation:
Global agnostics refers to the consumers who do not purchase the products based on global attitude towards the brands. Such consumers evaluate the brands in the same way as they evaluate the local products. In the United States and South Africa, such types of consumers are the maximum. While around the globe there is very less percentage of such consumers.
A mini-calculator company saw its sales decrease over the last year and decided to launch a new marketing mix strategy to boost awareness and sales. One of the company’s implemented tactics was to sell its mini-calculators through Amazon. It spent $5,000 to add new colors to their product offerings and $5,000 launching a video ad campaign. After tracking its online sales metrics, it saw a leap in sales of $20,000 in three months. What is this company's ROI on their marketing efforts?
Answer:
The ROI is 2
Explanation:
For computing the ROI we have to apply the formula which is shown below:
= Return in terms of benefit ÷ investment
where,
Return is in terms of sales which equals to $20,000
And, the investment equals to
= New color cost + video launching cost
= $5,000 + $5,000
= $10,000
Now put these values to the above formula
So, the answer would be equal to
= $20,000 ÷ $10,000
= 2
Final answer:
The Company's invested $10,000 in its marketing strategy. With a $20,000 increase in sales, this leads to a net profit of $10,000 and an ROI of 100%.
Explanation:
To calculate the Return on Investment (ROI) for the mini-calculator company’s marketing efforts, one must look at the net profit from the marketing strategy and compare it to the cost of that strategy. The company spent a total of $10,000 on adding new colors and launching a video ad campaign. It saw an increase in sales of $20,000 over three months as a direct result of these marketing efforts. To calculate ROI, we subtract the total marketing costs from the increased sales to find the net profit, which is then divided by the total marketing costs and multiplied by 100 to get a percentage.
First, we find the net profit from the marketing strategy: $20,000 (increase in sales) - $10,000 (total marketing costs) = $10,000 net profit. Now, we calculate the ROI: ($10,000 net profit / $10,000 total marketing costs) x 100 = 100% ROI.
If the interest rate is 3% and a total of $4,370.91 will be paid to you at the end of 3 years, what is the present value of the sum
Answer:
vp= $1,989.49
Explanation:
To calculate the present value we use the following formula;
[tex]vp = \frac{vf}{1+i^{n} }[/tex]
[tex]vp = \frac{4,370.91}{(1+0.3)^{3} } = 1,989.49[/tex]