Answer: a. Decrease in Net Exports
b. Increase in Net Capital
c. Decrease in Net Capital.
d. Increase in Net Exports
Explanation:
a. A Decrease in Net Exports
Net Exports is Exports - Imports. In buying a Television from a foreign company, the American has imported the good. This will reduce Net Exports by the aforementioned formula.
b. An INCREASE in NET CAPITAL OUTFLOW
This is essentially Capital being invested in other countries. It increases when more is invested in other countries as opposed to less.
c. A DECREASE in NET CAPITAL OUTFLOW.
As previously stated, Net Capital Outflow increases when a country invests more in another country. Since we are looking at it from the perspective of the USA, Sony, which is not an American company, buying into such capital is considered a Decrease in Net Capital Outflow as money is coming into the US.
d. An INCREASE in NET EXPORTS
Here, a foreigner is buying goods in the USA. That translates to Export. And by the Net Export Equation, Net Exports will rise.
If you need any clarification do react or comment.
Net exports decrease when an American buys a Sony TV, while it increases when a South Korean tourist buys Sunkist oranges. Net capital outflow increases with purchase of a share in a South Korean company by an American and decreases when Sony pension fund buys a U.S. Treasury bond.
Explanation:Here are the transactions and their impact:
An American buys a Sony TV. This is an import and would decrease net exports for the United States.An American investor buys a controlling share in a South Korean electronics firm. This would increase net capital outflow as money is leaving the U.S and going to South Korea.The Sony pension fund buys a bond from the U.S. Treasury. This would decrease net capital outflow, as money is entering the U.S. from abroad.A South Korean tourist buys some Sunkist oranges from an American farmer. This would increase net exports as this is an export from the U.S to South Korea.Learn more about Net Exports and Net Capital Outflow here:https://brainly.com/question/37531629
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The welding department supplies parts to the final assembly line. Management decides to implement a kanban system and has collected the following data: • The daily demand is 2000 units. • The production lead time is 4 days (this includes processing time, transport time, and waiting time). • Management has decided to have 1 day of safety stock. • One container fits 400 units. How many kanban containers will be needed to support this system?
Answer:
25 containers
Explanation:
The computation of the number of kanban containers required is shown below:
= (Lead time demand + Safety stock) ÷ Container size
where,
Lead time demand is
= 2,000 units × 4 days
= 8,000 units
Container size = 400 units
Safety Stock is
= 1 day × 2,000 units
= 2,000 units
So, the number of kanban containers required is
= (8,000 units + 2,000 units) ÷ (400 units)
= 25 containers
We simply applied the above formula
Miles Company, a wholesaler, budgeted the following sales for the indicated months: June July August Sales on account $2700000 $2760000 $2850000 Cash sales 270000 300000 390000 Total sales $2970000 $3060000 $3240000 All merchandise is marked up to sell at its invoice cost plus 20%. Merchandise inventories at the beginning of each month are at 30% of that month's projected cost of goods sold. The cost of goods sold for the month of June is anticipated to be $2079000. $2376000. $2475000. $2284615.
Answer:
$2475000
Explanation:
The computation of the cost of goods sold for the June month is shown below:
As it is given that total sales of June is $2,970,000
And, the marked up is cost plus 20%
So based on the above information, the cost of goods sold is
= $2,970,000 × 100 ÷ 120
= $2,475,000
Therefore, all the other information which is given is not relevant. Hence, ignored it
The cost of goods sold for the month of June can be calculated by finding 70% of the projected cost of goods sold. The projected cost of goods sold for June is $2079000, so 70% of that is $1455300.
Explanation:The cost of goods sold for the month of June can be calculated by finding 70% of the projected cost of goods sold. The projected cost of goods sold for June is $2079000, so 70% of that is $2079000 x 0.7 = $1455300. This is the cost of goods sold for the month of June.
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How would you define the geographic and product markets of large healthcare organizations such as the Mayo Clinic, Cleveland Clinic, Kaiser Permanente, and Johns Hopkins? What are the barriers that keep new competitors from entering those markets? (Showalter, 20170222, p. 496) Showalter, S. (20170222). The Law of Healthcare Administration, Eighth Edition, 8th Edition [VitalSource Bookshelf version]. Retrieved from vbk://9781567938791 Always check citation for accuracy before use.
Geographic markets for products are limited to a greater or lesser extent by the cost of transporting the product and legal barriers, such as those imposed by entry regulation that may prohibit trade among jurisdictions. Transportation costs of shipment between two areas may create a differential in prices in the two areas.
Explanation
The health costs in these organisations are also too high which can only be borne by the elite class, thereby giving them a position of monopoly power in the healthcare market.One must define first the market for the product of interest and second, the geographic market in which trade in the product occurs.
For both product and geographic market definitions, two types of substitutability are relevant:
Demand substitutability
Supply substitutability
Demand substitutability depends upon the extent to which consumers of the good or service are able to switch to substitutes for that good or service in response to a price increase.
In contrast, supply substitutability depends upon the extent to which existing providers could expand output, and/or firms not currently producing the good or service could enter the market for that good or service. In specific applications, the product market is defined first.
Then, given a definition of product, the geographic area over which commerce in the product takes place is examined.
When the cost of transportation is high relative to cost of production, geographic markets tend to be small; the converse holds true when relative transportation cost is low.
Choosing which percent rule to apply depends on the comparative risks of under- or overstating the size of the market.
Barriers for new competitors are:
Price: A successful company with a large market share may be able to charge prices substantially higher than what customers would be willing to pay if they had more options. If a competitor tries to enter the market, the established company can often afford to lower its own prices below what the competitor can match.
Contractual: Some barriers to entry may be illegal and may violate antitrust regulation. A new competitor entering the same market could find it difficult or impossible to get its products into any stores and negotiation with existing distributors for prices.
Location: Companies with the ability to operate in any part of the world can create a barrier to competition by locating manufacturing facilities in places with much lower labor costs or regulatory requirements.
Regulatory: Regulations are intended to serve the public good by promoting better safety and environmental standards or promoting competition.
The geographic market of large healthcare organizations refers to their operational regions, while the product market includes the range of healthcare services they offer. Barriers to entry for new competitors include high start-up costs, regulatory requirements, and established reputations.
Explanation:The geographic market of large healthcare organizations like the Mayo Clinic, Cleveland Clinic, Kaiser Permanente, and Johns Hopkins can be defined as the region or area in which these organizations operate and provide healthcare services. These organizations usually have a national or even international presence, serving patients from different parts of the country or even around the world.
The product market of these healthcare organizations refers to the range of healthcare services and products they offer. This can include medical treatments, surgeries, diagnostic services, preventive care, specialized clinics, and research initiatives.
Barriers that keep new competitors from entering these markets include:
High start-up costs and capital requirements: Establishing large healthcare organizations requires significant financial investments in infrastructure, technology, equipment, and skilled personnel.Regulatory requirements and compliance: Healthcare organizations need to comply with various regulations and licensing requirements imposed by government agencies at local, state, and national levels.Established reputation and brand recognition: Large healthcare organizations like Mayo Clinic, Cleveland Clinic, Kaiser Permanente, and Johns Hopkins have built strong reputations and brand recognition over the years, making it difficult for new competitors to gain trust and attract patients.Learn more about Barriers to Entry here:https://brainly.com/question/35090304
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Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 1,800 units):
Direct materials $25
Direct labor 53
Variable overhead 16
Fixed overhead 47
Total $141
Trailblazers offered to sell the assembly to Mobility for $110 each. The total order would amount to 2,000 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $10,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $40,000.
Required:
a. Prepare a schedule that shows the differential costs on the 2,000 rear wheel assemblies order.
b. Should Mobility make rear wheel assemblies or buy them from Trailblazers?
Answer:
a. The preparation of schedule that shows the differential costs is shown below:-
b. Decision : Make
Explanation:
Particulars Make the Buy from Differential
Wheels trailblazers cost
Offer of
trailblazer $220,000 $220,000 Higher
(2,000 × $110)
Material cost $50,000 $50,000 Lower
($25 × 2,000)
Labor cost $106,000 $106,000 Lower
($53 × 2,000)
Variable
overhead $32,000 $32,000 Lower
($16 × 2,000)
Fixed
overhead $94,000 $54,000 $40,000 Lower
($47 × 2,000) ($94,000 - $40,000)
Total cost $282,000 $274,000 ($8,000) Lower
Working Note:-
1) Fixed overhead applied = $47 × 2,000 = $94000
Decision : Make
Total saving from accepting the accepting the offer of trailblazer = $8,000
Cost saving required to accept the offer of trailblazer = $10,000
Decision - Make (Since actual savings are less than savings required by $2,000)
Exercise 24-3 Payback period computation; straight-line depreciation LO P1 A machine can be purchased for $140,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied, using a five-year life and a zero salvage value. Year 1 Year 2 Year 3 Year 4 Year 5 Net income $ 9,500 $ 23,500 $ 64,000 $ 35,500 $ 94,000
Answer:
Year 1 Year 2 Year 3 Year 4 Year 5 Net income $ 9,500 $ 23,500 $ 64,000 $ 35,500 $ 94,000
Explanation:
look p1 a machine
McGregor argues that ___ is self-fulfilling. If management expects little from its workers, little is what they’ll get.
Theory X
Theory Y
Theory A
Theory B
McGregor argues that theory Y is self fulfilling. If management expects little from its workers, little is what they will get.
Explanation:
The Theory Y states that most of the people wants to work and they are self sirected and motivated , creative in undergoing their individual goals. These people use their full potential to make decisions. This theory is mainly applied to small business owners, and independent professionals.
The managers are often self fulfilling. These employees take full responsibility for their work and to create a quality product. They perform the task and wait for the managers approval. The work is efficient and productive based on company standards.
During 2013, Company A has the following transactions involving its common and preferred stock:
Issued 20,000 shares of $8 par common stock for $26 a share; brings total shares outstanding to 50,000 shares
Issued 6,000 shares of $100 par, 6%, cumulative preferred stock for $150 per share
When market value of the common stock reached $15 a share, Company A declared a 3-for-1 stock split, reducing the par value to $188 per share
The following is required:
Prepare a journal entry for each transaction.
Answer:
Explanation:
Issued 20,000 shares of $8 par common stock for $26 a share; brings total shares outstanding to 50,000 shares
Bank A/c………Dr. 520000
To Share Capital A/c. 160000
To Paid in excess of par 360000
Issued 6,000 shares of $100 par, 6%, cumulative preferred stock for $150 per share
Bank A/c………Dr. 900000
To Preferred Stock A/c. 600000
To Paid in excess of par. 300000
When the market value of the common stock reached $15 a share, company A declared a 3-for-1 stock split reducing the par value to $188 per share.
Share Capital (par value at 8) 400000
To Share Capital (par value at 2.67)
400000
Free Corporation had the following transactions occur in the current year: 1. Cash sale of merchandise inventory. 2. Sale of delivery truck at book value. 3. Sale of Xanthe common stock for cash. 4. Issuance of a note payable to a bank for cash. 5. Sale of a security held as an available-for-sale investment. 6. Collection of loan receivable.
Answer:
The requirement was to determine of the listed items would feature under investing activities in cash flows Statement
The correct option is A,3
Explanation:
Sales of truck at book value is a cash inflow under the investing activities the same way purchase of truck would a cash outflow under investing activities.
The sale of security held a an available-for-sale investment is an investing activities inflow same way purchase of such investment would be an investing activities outflow.
Collection of loan receivable is also an investing activities inflow,the loan would have been treated as an outflow when it was made initially.
The following inventory information was taken from the records of Kleinfeld Inc.: Historical cost $12,000 Replacement cost $7,000 Expected selling Price $9,000 Expected selling cost $500 Normal profit margin 50% of price Assume that subsequent to your adjustment the expected selling price increases to $13,000 (all the rest of the facts are the same). What adjustment to inventory should be made under IAS 2 after this event? Question 37 options: Inventory should be increased (debited) by $3,500. Inventory should be increased (debited) by $4,000. No adjustment should be made to inventory once it is written down. Inventory should be increased (debited) by $1,000.
Answer:
Inventory should be increased (debited) by $3,500.
Explanation:
According to the IAS 2, the inventory value should be lower of historical cost or net realizable value
The historical cost is $12,000
And, the net realizable value is
= $9,000 - $500
= $8,500
Since as we can see the lower value is $8,500 but due to increase in realizable value, the historical cost would remain the same i.e $12,000
So the inventory should be increased or debited by $3,500 i.e
= $12,000 - $8,500
= $3,500
Plan B: Produce at a constant rate of 1 comma 300 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $80 per unit. Subcontracting capacity is limited to 900 units per month. Evaluate this plan by computing the costs for January through August.
Answer:
The complete question has been attached for proper cross reference
Subcontracting costs amounts to $210,000 for the 8 months
Volumes subcontracted are
Mar 400
Apr 509
May 700
Jun 700
July 400
Aug 100
Total 2,800
Inventory holding cost is $4,000. Only inventory in hand was 200 units in January
Explanation:
Kindly refer to the attached document for a complete presentation of results
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $ 1 comma 000, and a coupon rate of 7.7 % (annual payments). The yield to maturity on this bond when it was issued was 5.7 %. What was the price of this bond when it was issued?
Answer:
The correct answer is $1,149.32.
Explanation:
According to the scenario, the computation of the given data are as follows:
Face value FV = $1,000
Coupon rate = 7.7%
So, Payment = 7.7% × $1,000 = $77
YTM (rate ) = 5.7%
Time period = 10 years
So, we can calculate the present value by using financial calculator:
The attachment is attached.
So, PV = $1,149.32
Company H345's cost formula for its wages and salaries is $2,280 per month plus $348 per birth. For the month of August, the company planned for activity of 118 births, but the actual level of activity was 116 births. The actual wages and salaries for the month was $44,120. The wages and salaries in the planning budget for August would be closest to:
Answer:
The wages and salaries in the planning budget for August would be closest to: $46,824
Explanation:
The planning Budget is Based on the Actual level of Activity for this question,This is known as flexing the budget.
Calculation of Planning budget for August based on 116 births
Wages and Salaries = $2,280 + $348×116 births
= $46,824
Many people have argued that an income tax should be "marriage neutral," that is, two people should pay the same total tax whether they are married or they are single. Suppose Amanda earns nothing, Ben earns $60,000, and Cathy and Dylan each earn $30,000. They are all single. Amanda pays no tax because she has no income. If they all live in a country that has a progressive income tax, which will be higher: the tax that Ben pays or the sum of the taxes Cathy and Dylan pay?
Answer:
Ben would pay more in taxes.
Explanation:
A progressive income tax increases the tax rate as the taxpayer earns more money.
In this case, Ben would be taxed as earnings $60,000 which is probably a much higher tax rate than the applicable one for $30,000. If we use the current tax brackets for 2020, Ben would fall under the 22% tax bracket while both Cathy and Dylan would fall under the 12% tax bracket. Obviously Ben would pay much more in taxes.
Lopez Company has a single employee, who earns a salary of $192,000 per year. That employee is paid on the 15th and last day of each month. On January 15, Lopez is subject to the following payroll taxes: FICA–Social Security Taxes (at 6.2% of the first $118,500 each employee earns in the calendar year), FICA–Medicare Taxes (at 1.45%), FUTA (at 0.6% of the first $7,000 each employee earns in the calendar year), and SUTA (at 5.4% of the first $7,000 each employee earns in the calendar year). The journal entry to record the employer's payroll tax expense and related liabilities would include a debit to:
The employer's payroll tax expense on January 15th would include the monthly allocation of the annual FICA-Social Security Tax, the single month's FICA-Medicare Tax, and the single month's FUTA and SUTA taxes.
Explanation:The employee's annual salary at Lopez Company is $192,000, which means the monthly salary is $192,000/12 = $16,000. Given that Social Security tax applies to the first $118,500 of an employee's annual earnings, the Social Security tax for this employee would be $118,500 * 6.2% = $7,347 for the year, or $612.25 per month. The Medicare tax rate is applied to all earnings, so it is $16,000 * 1.45% = $232 per month. In terms of FUTA and SUTA, both taxes only apply to the first $7,000 of an employee's annual earnings, so the employer's liability for these taxes will be entirely covered in the first month of the year at rates of 0.6% (FUTA) and 5.4% (SUTA). Therefore, on January 15th, the employer's payroll tax expense would incur a debit to Payroll Tax Expense of the sum of all these monthly taxes.
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If Negan Corp. common stock is valued at $40 per share, dividends are paid quarterly and expected to grow quarterly by 1.2% forever, and the next dividend is due in 3 months and expected to be $3, then what is the expected annual return on Negan Corp. stock?
Answer:
= 33.37%
Explanation:
The computation of expected annual return is given below:-
Price of common stock today = Dividend next year ÷ (Required rate of return - Growth rate)
= $42 = $3 ÷ (required rate of return - 1.2%)
= (required rate of return -1.2%) = 0.071429
= (required rate of return - 1.2%) = 7.1429%
Required rate of return = 8.3429%
Expected of Annual Return = Required rate of return × Quarterly
= 8.3429% × 4
= 33.3716%
or
= 33.37%
So, for computing the expected of annual return we simply multiply the required rate of return with quarterly.
"In the economy of OKC in 2008, consumption was $3000, GDP was $5500, government purchases were $1000, imports were $2000, and investment was $1000. What were OKC’s exports in 2008?"
Answer:
Expert will be equal to $2500
Explanation:
We have given consumption = $3000
GDP is given $5500
Government purchase = $1000
Import = $2000
There is an investment of $1000
We have to find the export
We know that GDP is given by
GDP = consumption + investment + government purchase + export- import
5500 = 3000+1000+1000+export - 1000
Export = $2500
So expert will be equal to $2500
Ivanhoe, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021. 1/1/21 12/31/21 Accumulated benefit obligation 3600000 1660000 Net (gains) and losses $ 6670000 $ 148000 Projected benefit obligation 1450000 6855000 Pension assets (at fair value) 0 4036000 The service cost component of pension expense for 2021 is $523000 and the amortization of prior service cost due to an increase in benefits is $113000. The settlement rate is 11% and the expected rate of return is 7%. What is the amount of pension expense for 2021
Final answer:
The amount of pension expense for 2021 is $795,500.
Explanation:
The amount of pension expense for 2021 can be calculated using the following formula:
Pension Expense = Service Cost + Interest Cost - Actual Return on Plan Assets + Amortization of Prior Service Cost
Given the information provided, the service cost component of pension expense for 2021 is $523,000 and the amortization of prior service cost is $113,000. The interest cost can be calculated by multiplying the projected benefit obligation at the beginning of the year by the settlement rate. The actual return on plan assets can be calculated by multiplying the pension assets at the beginning of the year by the expected rate of return.
Let's calculate each component:
Interest Cost = 1,450,000 * 0.11 = $159,500
Actual Return on Plan Assets = 0 * 0.07 = $0
Substituting the values into the formula:
Pension Expense = $523,000 + $159,500 - $0 + $113,000 = $795,500
The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Sarasota Corp. at December 31, 2022.
Common Stock ($2 stated value) $2,400,000
Paid-in Capital in Excess of Par Value—Preferred Stock 67,500
Paid-in Capital in Excess of Stated Value—Common Stock 1,575,000
Preferred Stock (5%, $100 par, noncumulative) 900,000
Retained Earnings 2,001,000
Treasury Stock (18,000 common shares) 108,000
Prepare the stockholders’ equity section of the balance sheet at December 31, 2022.
Answer and Explanation:
The preparation of the stockholder equity section of the balance sheet is presented below:
Stockholders' equity
Paid in capital
Capital stock
5% preferred stock, $100 par value, noncumulative, 9,000 shares are issued and outstanding $900,000
Common stock, no par, $2 stated value, $2,400,000
Total capital stock $3,300,000 (A)
Additional paid in capital
Paid-in Capital in Excess of Par Value $67,500
Paid-in Capital in Excess of Stated Value - Common Stock $1,575,000
Total additional paid in capital $1,642,500 (B)
Total paid in capital $4,942,500 (A + B)
Add: Retained earnings $ 2,001,000
Total paid in capital and retained earnings $6,943,000
Less: Treasury stock (18,000 common shares) $(108,000)
Total stockholders' equity $6,835,500
Stockholders' equity
Paid in capital
Capital stock
5% preferred stock, $100 par value, noncumulative, 9,000 shares are issued and outstanding $900,000
Common stock, no par, $2 stated value, $2,400,000
Total capital stock $3,300,000 (A)
Additional paid-in capital
Paid-in Capital - in Excess of Par Value $67,500
Paid-in Capital in Excess of Stated Value - Common Stock $1,575,000
Total additional paid in capital $1,642,500 (B)
Total paid in capital $4,942,500 (A + B)
Add: Retained earnings $ 2,001,000
Total paid in capital & retained earnings $6,943,000
Less: Treasury stock (18,000 common shares) $(108,000)
Total stockholders' equity $6,835,500
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A company is considering the following alternatives:
Revenues: Alternative 1 $240,000 & Alternative 2 $240,000
Variable costs: Alternative 1 $120,000 & Alternative 2 $140,000
Fixed costs: Alternative 1 $70,000 & Alternative 2 $70,000
Required:
1. Which of the following are relevant in choosing between the alternatives?
A) Revenues
B) Variable costs and fixed costs
C) variable costs
D) Fixed costs
Answer:
The answer is C.
Explanation:
Variable cost is a relevant cost. Variable cost varies with the output i.e the total number of units produced. For example in a perfect competitive market, for a firm to be able to operate its revenue/profit must cover variable costs. Also, its revenue is dependent on the number of units produced which is directly proportional to variable cost.
Fixed cost is fixed and it is not a relevant cost in making decision. It is a sunk cost. Whether a business produces or not, fixed cost will be incurred.
As of December 31, 2021, Warner Corporation reported the following:
Cash dividends payable $20,000
Treasury stock 600,000
Paid-in capital—share repurchase 20,000
Common stock and other paid-in capital accounts 4,000,000
Retained earnings 3,000,000
What was shareholders' equity as of December 31, 2021?
Answer:
$6,240,000
Explanation:
Stockholders Equity Includes the Add-in-capital par value, Add-in-capital excess value of Common and Preferred, Net income accumulated value and dividends.
Stockholders' equity
Common Stock and Paid-in-capital common $4,000,000
Retained Earning $3,000,000
Treasury Stock ($600,000)
Paid-in capital—share repurchase $20,000
Total stockholders' equity $6,420,000
Treasury stock is the repurchased stock, which is a contra equity account. It need to be deducted from the equity
Final answer:
Shareholders' equity for Warner Corporation as of December 31, 2021, was calculated by adding common stock and other paid-in capital accounts to retained earnings and then subtracting treasury stock and cash dividends payable, resulting in total equity of $6,380,000.
Explanation:
To calculate the shareholders' equity of Warner Corporation as of December 31, 2021, we need to sum up the common stock, additional paid-in capital, and retained earnings, and then subtract any treasury stock and dividends payable. Cash dividends payable and treasury stock are subtracted because they represent obligations of the company and are not part of equity. Paid-in capital related to share repurchases would typically already be included in the treasury stock figure and would also not be part of equity.
Here is the calculation:
Common stock and other paid-in capital accounts: $4,000,000Retained earnings: $3,000,000Treasury stock: -$600,000Cash dividends payable: -$20,000Shareholders' Equity = (Common stock and other paid-in capital accounts) + (Retained earnings) - (Treasury stock) - (Cash dividends payable).
Shareholders' Equity = $4,000,000 + $3,000,000 - $600,000 - $20,000 = $6,380,000.
Thus, the shareholders' equity for Warner Corporation as of December 31, 2021, was $6,380,000.
In a general partnership: no partner can be held legally responsible for decisions since the partnership itself is a legal entity. each partner is held responsible for an agreement/decision made by any one of the partners. partners can be held responsible only for decisions they make personally. no decision is binding unless all partners agree to it in writing.
Answer:
Each partner is held responsible for an agreement/decision made by any one of the partner.
Explanation:
Partnership can be defined as a business agreement between two or more individuals. This individuals share ownership of the business and as such are responsible for managing the activities of the company. The profit gotten from the company are shared among the business partners.
General partnership is a form of partnership in which all the partners involved contribute significantly to the daily activities of the organization.
General partnership is very easy to establish and it does not require any form of taxes on profits generated from the business.
Three critical factors have combined to accelerate the ecological crisis facing the world community and to make sustainable development more difficult. Explain and discuss these three factors.
Answer:
1-population explosion
2- world poverty and income inequality
3- rapid growth of many development nations
Explanation:
This is an issue that must be analyzed according to a historical context in the world.
The industrial revolution was a milestone in the world with regard to the population explosion, this was due to technological innovations that occurred after the industrial revolution, as there were different labor relations, difference in the way of man producing and greater availability of food.
From then on, the rural exodus begins, with people migrating from the countryside to urban areas, in order to obtain greater job opportunities.
The industrial revolution has revolutionized the world until today, since then a capitalist context has emerged, where there is the enrichment of entrepreneurs and the insertion of large companies in developing countries and consequently the increase in income inequality and poverty.
So these are the three factors that integrated were combined to accelerate the ecological crisis of the global community and hinder sustainable development, because in the eagerness of industrial development and income generation, combined with the population's desire for production, sustainable development was a factor that could mean a barrier to production and rampant consumerism.
Oaktree Company purchased new equipment and made the following expenditures: Purchase price $ 45,000 Sales tax 2,200 Freight charges for shipment of equipment 700 Insurance on the equipment for the first year 900 Installation of equipment 1,000 The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer and Explanation:
The journal entries are shown below:
1. Equipment($45,000 + $2,200 + $700 + $1,000) $48,900
To Accounts payable $47,200 ($45,000 + $2,200)
To Cash $1,700
(Being the equipment is purchased on cash and credit)
Since the equipment is purchased so it would be debited and the other two accounts i.e account payable and the cash is credited
2.Prepaid insurance $900
To Cash $900
(Being the payment is recorded)
Since there is a prepaid insurance and the same is increased in assets so it would be debited and the cash is paid so it would be credited
You were hired by a small business as the project manager of a project involving a market analysis. This project will determine whether the company goes ahead with the large scale manufacturing of a brand new product. The activities of the project are described below, with their respective durations:
ID Description Duration (2 weeks) Predecessor
A Survey designed 2 None
B Pilot 1 A
C Data collection 3 A
D Data Processing 1 B, C
E Analyze survey Results 2 D
F Analyze market trends 3 D
G Demographics 2 E
H Report and Presentation 2 F, G
Draw a project network with this information.
Answer:
Explanation:
check the attached files
On December 31, 2020, Dow Steel Corporation had 670,000 shares of common stock and 37,000 shares of 7%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $470,000 and $76,000 to common and preferred shareholders, respectively, on December 15, 2021.
On February 28, 2021, Dow sold 51,000 common shares. In keeping with its long-term share repurchase plan, 4,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2021, was $2,450,000. The income tax rate is 25%.
Required:
Compute Dow's earnings per share for the year ended December 31, 2021. (Do not round intermediate calculations. Enter your answers in thousands. Round "Earnings per share" answer to 2 decimal places.)
Answer:
Earnings per share is $3.21
Explanation:
The calculation of weighted average number of shares to be used in EPS computation is provided thus:
Initial shares 670,000*1.04*12/12 696,800.00
share issued in February 51,000*1.04*10/12 44,200.00
shares repurchased 4000*6/12 (2,000.00)
Weighted average number of shares 739,000.00
earnings attributable to common stock=net income-preferred shares dividends
net income is $2,450,000
preferred shares dividends is $76,000
earnings attributable to common stock=$2,450,000-$76,000
=$2,374,000.00
Earnings per share =earnings attributable to common stock/Weighted average number of shares
Earnings per share=$2,374,000.00/739,000.00
=$3.21
Dow's earnings per share (EPS) for the year ended December 31, 2021 is $3.44. This was determined by first calculating the weighted average number of shares outstanding throughout the year (including new issues and those retired), adjusting for the stock dividend, and then dividing the company's net income (minus dividends paid to preferred shareholders) by this adjusted count.
Explanation:To calculate Dow's earnings per share (EPS), we first need to compute the weighted average number of shares outstanding for the year. Starting with 670,000 shares, Dow issued 51,000 new shares on February 28th which are thus in circulation for about 10 months (or 10/12 of the year), and retired 4,000 shares on July 1st that are out for about 6 months (or 6/12 of the year).
The weighted average number of outstanding shares is therefore: 670,000+(51,000*10/12)-(4,000*6/12)=717,500.
Now, we also need to account for the 4% common stock dividend issued on May 15. Because a stock dividend does not change the overall value of the company, the number of actual shares increases but the EPS is calculated as if no such dividend was issued.
Thus, our adjusted weighted number of average shares is: 717,500/1.04=689,904.
The net income of the company was $2,450,000, but we need to subtract the dividends paid to the preferred shareholders: $2,450,000 - $76,000 = $2,374,000.
Finally, we can calculate the EPS: $2,374,000 / 689,904 = $3.44 (rounded to two decimals).
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You expect KT industries (KTI) will have earnings per share of $ 6 $6 this year and expect that they will pay out $ 1.25 $1.25 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 13 13% and their equity cost of capital is 14 14%. The value of a share of KTI's stock is closest to:
Answer:
$8.93
Explanation:
The payment made to the stockholders is known as dividend.
Price of the stock can be determined by calculating the present value of all future expected dividends using cost of capital.
In this question $1.25 per share dividend is paid and rate of return / cost of capital is 14%, so price of stock will be calculated as follow.
Price of the share = Dividend / Cost of Capital = $8.93
Price of the share = $1.25 / 14% = $8.93
A company reports basic earnings per share of $5.10, cash dividends per share of $2.05, and a market price per share of $65.55. The company's dividend yield equals:
Answer:
3.13%
Explanation:
The dividend yield refers to the payment by a company to its shareholders for their shareholding divided by current stock price of the company. This is usually expressed as a percentage and can be calculated for this question as follows:
Dividend yield = Dividends per share (DPS) ÷ Market price per share (MPS) = $2.05 ÷ $65.55 = 0.0313, or 3.13%.
Answer:
The company's dividend yield equals: 3.13%
Explanation:
Let's recall the formula of the dividend yield:
Dividend yield = Annual dividend/Current stock price
Replacing with the values provided, we have:
Dividend yield = 2.05/65.55
Dividend yield = 0.0313
Dividend yield = 3.13%
Interpretation:
Dividend yield is a way to compare the level of attractiveness of any dividend-paying stock. It shows an investor the yield he/she can expect on an annual basis by purchasing a stock.
Martinez Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $165,800 Allowance for Doubtful Accounts $3,730 Sales Revenue (all on credit) 840,900 Sales Returns and Allowances 52,650 Prepare the journal entry to record bad debt expense assuming Martinez Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,380 debit balance.
Answer:
a. Debit Bad debt expense $4,560
Credit Allowance for doubtful debt $4,560
Being entries to recognize bad debt expense
b. Debit Bad debt expense $9,670
Credit Allowance for doubtful debt $9,670
Being entries to recognize bad debt expense
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.
Net sales
= $840,900 - $ 52,650
= $788,250
Allowance for doubtful debt
= 5% * $165,800
= $8,290
a. the difference to be posted
= $8,290 - $3,730
= $4,560
b. the difference to be posted
= $8,290 + $1,380
= $9,670
Assume again that Andretti Company has sufficient capacity to produce 120,150 Daks each year. A customer in a foreign market wants to purchase 31,150 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $3.70 per unit and an additional $18,690 for permits and licenses. The only selling costs that would be associated with the order would be $2.40 per unit shipping cost. What is the break-even price per unit on this order? (Round your answers to 2 decimal places.)
Final answer:
The break-even price per unit for Andretti Company's order of 31,150 Daks, after accounting for import duties, permits and licenses, and shipping, is $6.70, rounded to two decimal places.
Explanation:
To calculate the break-even price per unit for the Andretti Company's order of 31,150 Daks, we need to consider both fixed costs and variable costs associated with this order. Fixed costs include import duties ($3.70 per unit) and the cost for permits and licenses ($18,690). Variable costs consist of the shipping cost ($2.40 per unit).
The total fixed costs are $18,690 (permits and licenses) + ($3.70 × 31,150 units in import duties) = $18,690 + $115,255 = $133,945. The total variable costs are $2.40 × 31,150 units = $74,760. To find the break-even price per unit, we add the fixed and variable costs and divide by the number of units. So, the break-even price per unit is ($133,945 + $74,760) ÷ 31,150 units = $208,705 ÷ 31,150 units = $6.70 per unit (rounded to two decimal places).
The break-even price per unit for the order is approximately $6.70.
The break-even price per unit for the order is calculated by considering all the additional costs associated with the order and dividing them by the number of units in the order. The additional costs include the import duties and the shipping costs per unit, as well as the fixed costs for permits and licenses.
First, we calculate the total variable costs for the order:
- Import duties: $3.70 per unit for 31,150 units = $3.70 * 31,150
- Shipping costs: $2.40 per unit for 31,150 units = $2.40 * 31,150
Next, we add the fixed costs for permits and licenses:
- Fixed costs: $18,690
Now, we sum the total variable costs and the fixed costs to find the total additional costs:
- Total variable costs = Import duties + Shipping costs
- Total additional costs = Total variable costs + Fixed costs
Finally, we divide the total additional costs by the number of units to find the break-even price per unit:
- Break-even price per unit = Total additional costs / Number of units
Let's perform the calculations:
- Import duties = $3.70 * 31,150 = $115,355
- Shipping costs = $2.40 * 31,150 = $74,760
- Total variable costs = $115,355 + $74,760 = $190,115
- Total additional costs = $190,115 + $18,690 = $208,805
- Break-even price per unit = $208,805 / 31,150 units = $6.70 per unit
During 2020, Kate Holmes Co.'s first year of operations, the company reports pretax financial income at $250,000. Holmes's enacted tax rate is 45% for 2020 and 20% for all later years. Holmes expects to have taxable income in each of the next 5 years.The effects on future tax returns of temporary differences existing at December 31, 2020, are summarized:Future Years 2021 2022 2023 2024 Future taxable- (deductible)amounts:Installment Sales 32,000 ### 32,000 Depreciation 6,000 ### 6,000 6,000 Unearned Rent (50,000) ###Compute Taxable Income for 2020.
Final answer:
Kate Holmes Co.'s taxable income for 2020 is $250,000, the same as the reported pretax financial income, since the future taxable or deductible amounts from installment sales, depreciation, and unearned rent do not affect the current year's taxable income. The income tax expense for the year is calculated at a tax rate of 45%, which equates to $112,500.
Explanation:
To compute taxable income for Kate Holmes Co. for the year 2020, we need to consider the pretax financial income and apply the current tax rate as well as account for any temporary differences that will affect future tax liabilities. The pretax financial income reported by the company is $250,000. The enacted tax rate for 2020 is 45%.
However, there are temporary differences to consider, which consist of future taxable or deductible amounts arising from installment sales, depreciation, and unearned rent. For calculating the current year's taxable income, we look at the temporary differences that will reverse in the current year:
Future taxable amounts from installment sales would add to the taxable income in the future years and not affect the taxable income for 2020.Similarly, additional depreciation expenses would reduce taxable income in future years, but for 2020, we only consider the currently enacted tax rate and reported pretax financial income.Unearned rent represents income received but not earned in 2020, meaning it will be taxable when it is earned in future years.Therefore, the taxable income for Kate Holmes Co. in 2020 is the reported pretax financial income of $250,000, since none of the temporary differences listed will reduce or increase the taxable income for 2020.
The income tax expense at the enacted tax rate of 45% on the taxable income of $250,000 would be:
Income Tax Expense = Taxable income × Tax rate
Income Tax Expense = $250,000 × 0.45
Income Tax Expense = $112,500
This expense would be reported on the company's income statement for 2020.