Answer: Global citizens
Explanation: In simple words, those individuals who have a wider understanding of the world than others are called global citizens. These are the citizens who take active participation in all those activities that connect world globally and in a more equal and sustainable manner.
In the given case, Jane is purchasing the product because it has a global acceptance, despite of its high price.
Hence from the above we can conclude that the she is a global citizen.
If an entry to adjust depreciation is not recorded at the end of the period, Depreciation Expense on the income statement will be a. overstated. b. understated. c. unaffected because the omitted entry affects two accounts that cancel each other out. d. unaffected because Depreciation Expense is reported on the balance sheet, not on the income statement.
Answer:
Understated
Explanation:
In accounting, long-term assets are said to be subject to wear and tear. This results from their constant use in business operations. This wear and tear is also known as depreciation. Depreciation thus, is the loss of value of the long-term assets that are used in business operations. In accounting, depreciation is recorded as an expense although no cash transactions are involved. Failure to record depreciation incurred in a financial year will amount to undervaluing or understating the depreciation expense for the year.
Answer:
The answer is (B)- Understated.
Explanation:
Depreciation is charged on depreciable assets to match depreciation expenses which represent economic benefit consumed with the revenue generated for the period under consideration. It is an accounting estimate which involved alot of discretion from the users to determine which method to use for the computation i.e either straight line or reducing balance method or any other methods considered suitable.
Option A-False. It can only be overstated if more than one adjustment is posted on the same asset
Option B- True.
Option C- False. The omitted entry affects depreciation expense(DR) and Accumulated Depreciation (CR)
Option D-False. It is reported on balance sheet as accumulated depreciation and on Income statement as depreciation expense
Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers. Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year?
The average length of the firm's short-term operating cycle is 50 days.
Operating cycle
Operating cycle=Days inventory outstanding+Days sales outstanding
Operating cycle=15 days+35 days
Operating cycle=50 days
Cycle over a year=365 days/50 days
Cycle over a year=7.3 times
Inconclusion the average length of the firm's short-term operating cycle is 50 days.
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The average length of the firm's short-term operating cycle is 90 days, and the cycle would turn over approximately 4 times in a year.
Explanation:The average length of the firm's short-term operating cycle can be estimated by adding the average production process time, the average time finished goods are kept on hand, and the average accounts receivable outstanding. In this case, the average length of the short-term operating cycle would be 40 days (production process time) + 15 days (goods on hand) + 35 days (accounts receivable) = 90 days.
To calculate how often the cycle would turn over in a year, we divide 365 (the number of days in a year) by the average length of the operating cycle. In this case, 365 / 90 = 4.06. So, the cycle would turn over approximately 4 times in a year.
MAVERICK COMPANY Trial Balance Before Adjustment December 31, 20X1 Debit Credit Cash $ 51,000 Accounts Receivable 7,500 Supplies 2,000 Note Payable $ 10,000 Unearned Revenues 21,000 Common Stock 18,000 Retained Earnings 15,000 Dividends 2,000 Revenues 14,000 Salary & Wage Expense 6,500 Rent Expense 9,000 TOTALS $ 78,000 $ 78,000 Additional Information: Supplies on hand at the end of December were $800 Of the unearned revenues, 60% of the work had been completed during the year. On Nov. 1, 20X1, Maverick paid 6-months of rent in advance for a total of $9,000. The bookkeeper debited rent expense when recording this payment. As of December 31st, accrued salaries were $400. Payday is January 2, 20X2. The Note Payable is a one-year, 8% note, issued on October 1, 20x1 Required: To record the necessary Adjusting Journal Entry for #3 above, you would:
Answer:
rent expense 3,000 debit
prepaid rent 3,000 credit
Explanation:
To record the necessary Adjusting Journal Entry for #3
Being #3:
On Nov. 1, 20X1, Maverick paid 6-months of rent in advance for a total of $9,000.
We will calculate the value of a single month by dividing the 9,000 prepaid payment over the six month paid
9,000/6 = 1,500
Now we multiply by the months past:
1,500 x 2 (November and December) = 3,000
the entry will recognize an expense for 3,000 and decrease the prepaid for the same ammount.
Midstate University is trying to decide whether to allow 100 more students into the university. Tuition is $5000 per year. The controller has determined the following schedule of costs to educate students: Number of Students Total Costs 4000 $30,000,000 4100 30,300,000 4200 30,600,000 4300 30,900,000The current enrollment is 4200 students. The president of the university has calculated the cost per student in the following manner: $30,600,000/4200 students = $7286 per student. The president was wondering why the university should accept more students if the tuition is only $5000.a. What is wrong with the president's calculation? b. What are the fixed and variable costs of operating the university?
Answer:
A) The presidents' calculation is wrong because he is dividing the total cost by the number of students. He is not taking into account the effect of fixed cost in the cost structure. The university should accept more students so the fixed costs will distribute in a larger number of students.
B) Fixed costs= $18000000
Explanation:
Giving the following information:
Midstate University is trying to decide whether to allow 100 more students to the university.
Tuition is $5000 per year.
The controller has determined the following schedule of costs:
- 4000 students= $30,000,000
- 4100students= $30,300,000
- 4200 students= $30,600,000
- 4300 students= $30,900,000
The current enrollment is 4200 students.
A) The presidents' calculation is wrong because he is dividing the total cost by the number of students. He is not taking into account the effect of fixed cost in the cost structure. The university should accept more students so the fixed costs will distribute in a larger number of students.
B) Every 100 students the costs increase by $300000. This means that each student increase costs by $3000.
Fixed costs= Total cost - variable cost* number of students
Fixed costs= 30600000 - 4200*3000= $18000000
Final answer:
The president's calculation is wrong because it includes fixed costs in the calculation of cost per student. The fixed costs of operating the university are $30,000,000 and the variable costs per student are $3000.
Explanation:
The president's calculation is wrong because the calculation only considers the total cost and divides it by the current enrollment, which includes fixed costs and variable costs. However, in order to accurately determine the cost per student, only the variable costs should be divided by the number of students. In this case, the fixed costs should be excluded as they do not change with the number of students.
The fixed costs of operating the university are the costs that remain the same regardless of the number of students. In this scenario, the fixed costs would be the costs when there are 4000 students, which is $30,000,000. The variable costs are the costs that change with the number of students. In this scenario, the variable costs would be the additional costs incurred for each additional student. By analyzing the schedule of costs, we can see that with every increment of 100 students, the total costs increase by $300,000. Therefore, the variable cost per student is $300,000 divided by 100, which is $3000.
Kenji is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Because his pool sessions are helping him swim more quickly, Kenji plans to reduce by 1 hour per week the time he spends training on the bike and increase by 1 hour the time he spends in the swimming pool; however, his wife says that he should stop doing any biking and running and spend all 20 hours per week in the pool. Which basic principle of individual choice does Kenji's plan illustrate that his wife's advice does not? Resources are scarce. Many decisions are made on the margin. All costs are opportunity costs. People usually exploit opportunities to make themselves better off
Answer: Option(b) is correct.
Explanation:
According to this principle, many of the economics decision are based on the cost incurred and benefit obtained from that decision. It also includes the utility or benefit obtained from an additional unit of consumption or production. In our case, Kenji wants to spend an extra hour on swimming because pool sessions are so good that would increase his chances of winning triathlon.
Therefore, Many decisions are made on the margin.
Final answer:
Kenji's plan to reallocate his training hours represents the principle of making decisions on the margin, considering the scarcity of time and opportunity costs, unlike his wife's suggestion.
Explanation:
Kenji's plan to adjust his training time for a triathlon by reallocating time between swimming and cycling illustrates the economic principle that many decisions are made on the margin. This principle acknowledges that resources, including time, are scarce, and thus we must make decisions that marginally adjust our allocations to maximize utility. Kenji is choosing to slightly increase his investment in the area where he sees greater marginal gains, swimming, instead of dropping other activities completely as suggested by his wife. Conversely, his wife's advice disregards this marginal decision-making and lacks consideration of the opportunity costs associated with forsaking biking and running training completely.
n electric utility is considering a new power plant in northern Arizona. Power from the plant would be sold in the Phoenix area, where it is badly needed. Because the firm has received a permit, the plant would be legal; but it would cause some air pollution. The company could spend an additional $40 million at Year 0 to mitigate the environmental problem, but it would not be required to do so. The plant without mitigation would cost $270.34 million, and the expected cash inflows would be $90 million per year for 5 years. If the firm does invest in mitigation, the annual inflows would be $94.34 million. Unemployment in the area where the plant would be built is high, and the plant would provide about 350 good jobs. The risk adjusted WACC is 16%. Calculate the NPV and IRR with mitigation. Round your answers to two decimal places. Enter your answer for NPV in millions. For example, an answer of $10,550,000 should be entered as 10.55. NPV $ million IRR % Calculate the NPV and IRR without mitigation. Round your answers to two decimal places. Enter your answer for NPV in millions. For example, an answer of $10,550,000 should be entered as 10.55. NPV $ million IRR %
Answer:
Ans.
Without Mitigation: NPV=$24.35 ; IRR=19.80%
With Mitigation: NPV= -$1.04 ; IRR=15.80%
Explanation:
Hi, as you can see, this project without mitigation is financially better than the option of investing on the environmental mitigation, but since the "mitigation" alternative is so close NPV=0, do consider to implement the mitigation option, this is because it would only take some adjustments (I think) to get the NPV = 0 and you will avoid future lawsuits, this is always something to be consider in this type of projects. Now, the math to this, in the case of the NPV, is as follows.
[tex]Without M.=-270.34+\frac{90((1+0.16)^{5} -1)}{0.16(1+0.16)^{5} } =24.35[/tex]
[tex]With M.=-310.34+\frac{94.34((1+0.16)^{5} -1)}{0.16(1+0.16)^{5} } =-1.44[/tex]
The IRR of both options is also something to be consider, in the case of this project without mitigation actions the IRR=19.80%, this means that if our discount rate was 19.80% instead of 16%, this option would provide a NPV=0 (therefore this project is suitable for investing). If the project is to implement the environmental actions the IRR=15.80%, this means that if our WACC was 15.80% instead of 16%, this option is worth considering since it is returning to the investors exactly what they ask for their money. I really don´t think this project should use the same WACC due to the legal risk of not taking environmental actions. (this is just something to consider, my opinion).
The way to find IRR is with a calculator or MS Excel with its fuction "IRR". For further clarification on this, please download the Excel sheet attached to this answer.
Best of luck.
The calculation of NPV and IRR with and without mitigation involves using the initial outlay (which includes the mitigation outlay for the with mitigation scenario) and the annual cash inflows. These figures are used in the formulas for NPV and IRR, with the 16% WACC acting as the discounting factor. When considering this investment, the firm should also bear in mind marginal and potential external costs.
Explanation:In order to calculate the NPV and IRR with or without environmental mitigation, we need to understand these financial concepts. The NPV or Net Present Value is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. IRR or Internal Rate of Return is the discount rate that makes the NPV of all cash flows equal to zero.
First, calculate the NPV with mitigation. The initial cash outflow is the cost of the plant plus the mitigation cost, which is $270.34 million + $40 million. The annual inflow is given as $94.34 million for 5 years. Using the given WACC of 16%, we use the formula of NPV = ∑ [(Cash inflow) / (1 + r)^n] - Cash outflow. After doing the calculations, we can get a value for NPV however due to the lack of certain key information, we cannot compute a specific value. IRR can be calculated using a financial calculator or Excel function IRR.
For the NPV and IRR without mitigation, we follow the same process. The only difference is we only consider the cost of the power plant which is $270.34 million and the annual inflows are $90 million. The calculation of NPV and IRR follows in the same fashion.
While considering these investments, the firm should also consider marginal costs, marginal benefits and potential external costs, which can have significant effects in the long term.
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legal capital is best defined as
a. the amount of capital the state of incorporation allows the company to accumulate
a corporate form of business organization, legal capital is best defined as
over its existence.
b. the par value of all capital stock issued.
c. the amount of capital the federal government allows a corporation to generate.
d. the total capital raised by a corporation within the limits set by the Securities and
Exchange Commission.
Answer:
b. the par value of all capital stock issued.
Explanation:
As per the business format, capital of a company is the value of share capital.
Now, also legal capital means the share capital issued as this reflects the legal share of individual investors in the company.
Authorized capital is the value of maximum capital that can be issued by the company in the form of equity shares.
Issued capital is that part of authorized capital that is actually issued.
And therefore, the par value that is the face value of shares issued, that is equity issued is the legal capital of the company.
See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased additional equipment for $ 12.8 million at the end of 2016, and this equipment was depreciated by $ 4.3 million per year in 2017, 2018, and 2019. Given Mydeco's tax rate of 35 %, what impact would this additional purchase have had on Mydeco's net income in years 2016dash2019? (Assume the equipment is paid for out of cash and that Mydeco earns no interest on its cash balances.)
The additional purchase of equipment for $12.8 million and its subsequent depreciation of $4.3 million per year in the years 2017-2019 would decrease Mydeco's net income and potentially lower the taxes paid.
Explanation:The additional purchase of equipment for $12.8 million at the end of 2016 would have an impact on Mydeco's net income in years 2016-2019 due to depreciation expenses. The depreciation expense of $4.3 million per year would reduce Mydeco's net income, resulting in lower profits and potentially lower taxes paid.
Depreciation is the allocation of the cost of an asset over its useful life, and it is deducted as an expense on the income statement. The higher the depreciation expense, the lower the net income. In this case, the additional purchase of equipment and its subsequent depreciation would decrease Mydeco's net income by $4.3 million per year in 2017, 2018, and 2019.
With a tax rate of 35%, the lower net income would result in lower taxable income and therefore potentially lower taxes paid by Mydeco. However, the impact on net income and taxes paid would also depend on other factors such as Mydeco's overall financial position and other income and expenses during those additional .
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In January 2012, Finley Corporation, a newly formed company, issued 10,000 shares of its $10 par common stock for $15 per share. On July 1, 2012, Finley Corporation reacquired 1,000 shares of its outstanding stock for $12 per share. The acquisition of these treasury shares
a. decreased total stockholders' equity.
b. increased total stockholders' equity.
c. did not change total stockholders' equity.
d. decreased the number of issued shares.
Answer:
a. decreased total stockholders' equity
Explanation:
Treasury shares are the shares which are bought back by the issuing company, reducing the number of shares outstanding (not the number of issued shares).
The effect will be a decrease in the total stockholders' equity since the company is paying the withdrawing investment and this decreases the value "equity" of the company.
Final answer:
Reacquiring shares decreased Finley Corporation's total stockholders' equity but did not change the number of issued shares as those become treasury shares. Hence, the correct option is A.
Explanation:
When Finley Corporation reacquired 1,000 shares of its stock for $12 per share, the total stockholders' equity decreased. This is because the company used its assets, such as cash, to buy back the stock, reducing the equity that is reported on the balance sheet. This transaction did not, however, change the number of issued shares, as reacquired stocks become treasury shares and are not considered in the number of outstanding shares, but are still part of the issued shares.
osh Smith has compiled some of his personal financial data in order to determine his liquidity position. The data are as follows: Account Amount Cash $ 3 comma 150 Marketable securities 1 comma 050 Checking account 840 Credit card payables 1 comma 270 Short-term notes payable 850 a. Calculate Josh's liquidity ratio. b. Several of Josh's friends have told him that they have liquidity ratios of about 1.8. How would you analyze Josh's liquidity relative to his friends?
Answer:
a. The Josh's liquidity ratio is 2.38 times
b. Higher
Explanation:
a. The formula to compute the liquidity ratio is shown below:
Liquidity ratio = Quick assets ÷ Current liabilities
where,
Quick assets = Cash + Marketable securities + Checking account
= $3,150 + $1,050 + $840
= $5,040
And, the current liabilities equal to
= Credit card payable + Short-term notes payable
= $1,270 + $850
= $2,120
Now put these values to the above formula
So, the answer would be equal to
= $5,040 ÷ $2,120
= 2.38 times
b. The josh liquidity ratio is higher then his friend told him about the liquidity ratio. It is increased by 0.58 times which means that he is able to meet his short term obligations.
Josh's liquidity ratio is 2.38, which is higher than his friends' average of 1.8. This suggests he is in a slightly better position to cover his short-term obligations.
Explanation:The liquidity ratio is calculated as the total liquid assets divided by total short term liabilities. In Josh's case, his liquid assets sum up to (cash + marketable securities + checking account): $3,150 + $1,050 + $840 = $5,040. His short-term liabilities are (Credit card payables + short term notes payable): $1,270 + $850 = $2,120.
So, Josh's liquidity ratio is $5,040/$2,120 = 2.38.
Josh's liquidity ratio bigger than his friends, which implies that Josh has a comparatively better liquidity position. This means he has more liquid assets available per dollar of current liabilities, which suggests he is better positioned to cover his short-term obligations, assuming the value of his liquid assets doesn't fall significantly.
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The following transactions pertain to the operations of Ewing company for year 2.
1.Acquired $30,000 cash from the issue of common stock
2.Provided $65,000 of services on account
3.Paid $22,000 cash on accounts payable
4.Performed services for $8000 cash
5.Collected $51,000 cash from accounts receivable
6.Incurred $37,000 of operating expenses on account
7.Paid $6500 cash for one years rent in advance
8.Paid a $4000 cash dividend to the stockholders
9.Paid $1200 cash for supplies to be used in the future
10.Recognize $3100 of accrued salary expense
Prepare a statement of cash flow‘s. The beginning cash balance was $6700.
Answer:
ending cash balance 62,000
Explanation:
operating activities:
services on cash 8,000
collected from AR 51,000
paid to supplies (22,000)
rent paid (6,500)
supplies paid (1,200)
cash generated from operating: 29,300
financing activities:
issuance of stock 30,000
cash dividends paid (4,000)
cash generated from financing: 26,000
cash generated during the year: 55,300
beginning cash balance 6, 700
ending cash balance 62,000
The statement of cash flows shows the cash inflows and outflows of a company. Based on the provided transactions, the statement of cash flows for Ewing Company in year 2 can be prepared. The transactions are categorized into operating, investing, and financing activities.
Explanation:The statement of cash flows reports the cash inflows and cash outflows of a company during a specific period. It categorizes cash flows into three main sections: operating activities, investing activities, and financing activities.
Based on the provided transactions, here is the statement of cash flows for Ewing Company for year 2:
Cash flows from operating activities:Received $65,000 from accounts receivablePaid $22,000 on accounts payableIncurred $37,000 of operating expenses on accountRecognized $3,100 of accrued salary expenseCash flows from investing activities:Paid $1,200 for suppliesCash flows from financing activities:Acquired $30,000 cash from the issue of common stockPaid $6,500 for one year's rent in advancePaid $4,000 cash dividend to stockholdersBy considering the cash flows from each activity, you can determine the net change in cash for the period, which you can add to the beginning cash balance to obtain the ending cash balance.
The difference between training and development is: Developmental opportunities are not limited to improving employee's current job performance. Training is mainly for the benefit of the individual, while development is mainly for the benefit of the organization. Development is typically conducted onsite, while training is usually conducted off-site. Development refers to any attempt to improve employees' performance on their current jobs. Training is typically conducted on-site, while development is usually held off-site.
Answer:
Development refers to any attempt to improve employees' performance on their current jobs.
Explanation:
Training is a learning process in which employees get an opportunity to develop skill, competency and knowledge as per the job requirement. Development is an educational process which is concerned with the overall growth of the employees. To improve the work performances of the employees
"The correct statement regarding the difference between training and development is: Development is not limited to improving employee's current job performance.
Training and development are two distinct but related aspects of human resource management. Training is a program that is designed to improve the performance of employees on their current job. It is often specific, short-term, and focused on the development of particular skills or knowledge that can be immediately applied to the job. Training is typically conducted on-site, where employees can practice and apply new skills in a controlled environment that closely resembles their actual work setting.
Development, on the other hand, is a broader concept that encompasses not only the current job but also prepares employees for future roles and responsibilities. It is more about the growth and advancement of the individual within the organization. Development opportunities may include mentoring, coaching, job rotation, and participation in projects or task forces. These activities are designed to enhance the individual's capabilities, leadership skills, and understanding of the organization, which in turn can benefit the organization in the long run.
Development is not necessarily limited to on-the-job activities; it can also include off-site educational programs, workshops, and seminars that are aimed at personal growth and long-term career development. It is typically a continuous process and may not have immediate application to the current job but is crucial for the individual's and organization's future success.
In summary, while training is primarily focused on enhancing the skills required for an employee's current job, development is a more comprehensive approach that aims to prepare individuals for future challenges and roles within the organization. The statement that development is not limited to improving an employee's current job performance accurately captures this key difference between the two concepts."
The direct labor rate for Brent Corporation is $9.00 per hour, and manufacturing overhead is applied to products using a predetermined overhead rate of $6.00 per direct labor-hour. During May, the company purchased $60,000 in raw materials (all direct materials) and worked 3,200 direct laborhours. The Raw Materials inventory (all direct materials) decreased by $3,000 between the beginning and end of May. The Work in Process inventory on May 1 consisted of one job which had been charged with $4,000 in direct materials and on which 300 hours of direct labor time had been worked. There was no Work in Process inventory on May 31. 36. (93) The balance in the Work in Process inventory account on May 1 was: A. $0 B. $6,700 C. $4,500 D. $8,500 37. (94) The debit to Work in Process for the cost of direct materials used during May was: A. $63,000 B. $61,000 C. $57,000 D. $67,000 38. (95) The debit to Work in Process for direct labor cost during May was: A. $21,000 B. $26,100 C. $28,800 D. $31,500 39. (96) If overhead was underapplied by $2,500 during May, the actual overhead cost for the month must have been: A. $16,700 B. $21,700 C. $18,500 D. $23,500
Answer:
1.- first question D. Beginning WIP: $8,500
2.- second question A raw materials used. $63,000
3.- third quesion B. $21,700 actual overhead
Explanation:
Balance in May 1st
4,000 direct materials
300 hours x $9 labor rate = 2,700
300 hours x $6 overhead rate = 1,800
Total 8,500
We have to calculate the total cost for materials added for the month
beginning + purchase - used into production = ending
We are given the fact that balance decrease by 3,000 so
ending - beginning = -3,000
we post that into the formula:
purchase - used into production = ending - beginning
60,000 - production = -3,000
production = 63,000
applied overhead:
3,200 hours x 6 = 19,200
If underapplied by 2,500 then:
applied - actual = -2,500
so
19,200 - actual = -2,500
19,200 + 2500 = actual
actual overhead = 21,700
The Work in Process Inventory on May 1 was $8,500, the cost of direct materials used in May was $57,000, the direct labor cost was $28,800, and if overhead was underapplied by $2,500 then the actual overhead cost was $21,700.
Explanation:The balance in the Work in Process Inventory account on May 1 can be calculated by adding the cost of direct labor and the applied manufacturing overhead. For 300 labor hours at $9 per hour, the labor cost is $2,700. The manufacturing overhead is $6 per labor hour, totaling $1,800 ($6 * 300). Therefore, the total Work in Process Inventory is $4,000 (direct materials) + $2,700 (labor) + $1,800 (overhead) = $8,500. That is Option D.
The cost of direct materials used during May can be calculated as follows: The beginning inventory was $60,000 and the ending inventory decreased by $3,000, therefore the cost of direct materials used is $60,000 - $3,000 = $57,000. That is Option C.
The labor cost for May is calculated by multiplying the hours worked by the cost per hour: 3,200 hours * $9/hour = $28,800. That is Option C.
If overhead was underapplied by $2,500 that means the actual overhead costs were greater than what was applied. The applied overhead was calculated as 3,200 labor hours * $6/hour = $19,200. So, the actual overhead costs must be $19,200 + $2,500 = $21,700. That is Option B.
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Derek's new office is undergoing a minor renovation and he cannot conduct business in the location for approximately six months. He decided to lease a temporary office in Samantha's building from June 1 to December 30. Which type of lease has Derek signed? An Estate for Years
Answer: An Estate for years.
Explanation: An estate for years is a type of leasehold estate that lasts for a specific period of time. The beginning and ending dates are specified in the lease, along with the amount paid in rent. No notice is required to vacate, as the tenant is expected to vacate at the end of the lease. In real estate, one type of leasehold estate is the "estate for years," or "estate for term." this type of lease, there is a defined specific beginning date and an ending date for a specific term. This means that no notice to vacate is required, as the ending date of the lease is when the tenant should vacate the property. The lease cannot be terminated before expiration unless both parties agree. The rights and obligations of the owner or landlord and the tenant are spelled out in the lease. Real estate lease agreements consist of numerous elements that set out the rights and obligations of the lessor/landlord and the lessee/tenant. In the absence of restrictions on use, the tenant can normally utilize the property for any lawful purpose.
Derek signed an Estate for Years lease, which is for a specific, fixed period and requires clear notice for termination after the lease period ends.
Explanation:Derek has signed an Estate for Years lease for his temporary office in Samantha's building. This type of lease refers to a tenancy for a specific, fixed period of time, which in this case is from June 1 to December 30. The termination clause of Derek's lease agreement indicates that after the lease period expires, it converts to a month-to-month tenancy until either party provides a 30-day written notice of intention to terminate. Moreover, it requires the tenant to clear all possessions and return keys and property to the owner upon vacating.
1. GDP is calculated by summing ________. consumption, investment, and exports of all final goods and services produced within the borders of a given country during a specific period the dollar value of all final goods and services produced within the borders of a given country during a specific period government expenditures within the borders of a given country during a specific period the quantity of all final goods and services produced within the borders of a given country during a specific perio
Answer:
The correct answer is: the dollar value of all final goods and services produced within the borders of a given country during a specific period
Explanation:
Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. It is an indicator to measure the economic health of a country. Most of the individual data sets will also be given in real terms, meaning that the data is adjusted for price changes, and is, therefore, net of inflation.
The money measurement concept underlines the fact that every recorded event or transaction is measured in terms of money, the local currency monetary unit of measure.
It counts all of the output generated within the borders of a country. GDP is composed of goods and services produced for sale in the market and also includes some nonmarket production, such as defense or education services provided by the government.
GDP can be determined via three methods. All, when correctly calculated, should generate the same figure. These three approaches are often termed the expenditure approach, the output (or production) approach, and the income approach.
GDP is calculated by summing up the dollar value of all final goods and services produced within a country during a specific period. It includes consumption, investment, government expenditures, and net exports.
Explanation:The Gross Domestic Product (GDP) is calculated by summing the dollar value of all final goods and services produced within the borders of a given country during a specific period.
This includes everything produced by all the people and companies in the country, regardless if they are domestic or foreign-owned. Moreover, GDP considers consumption, investment, government expenditures, and the net exports (exports minus imports) of a country.
For instance, if consumers buy more goods and services, businesses invest more in capital goods, the government spends more, or the country increases its exports, the GDP of that country increases.
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A partially amortizing loan for $90,000 for 10 years is made at 6 percent interest. The lender and borrower agree that payments will be monthly and that a balance of $20,000 will remain and be repaid at the end of year 10. Assuming 2 points are charged by the lender, what will be the yield if the loan is repaid at the end of year 10? What must the loan balance be if it is repaid after year 4? What will be the yield to the lender if the loan is repaid at the end of year 4?
Answer:
Ans.
A) The yield if the loan is repaid at the end of year 10 will be 6.3816%
B) The loan balance be if it is repaid after year 4 will be $66,767.48
C) The yield to the lender if the loan is repaid at the end of year 4 will be 6.6416%
Explanation:
Hi, in order to find the yield of the loan, for a 10 year period at 6% for $90,000, we would have to use MS Excel to find the cash flow and then use the "IRR" function. Please relate to the attached file to this answer for further details in the calculations.
Ans. 6.3816%
In the case of the loan balance at the end of year 4, all we need to do is to bring to year 4 all future cashflows, since there are 6 left to pay, we can use the following equation.
[tex]PresentValue(4)=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }[/tex]
Before we do that, we have to find the annual payment of the loan taking into account that the balance at the end of year 10 has to be $20,000, so we solve the following equiation for "A" before we find the present value(4). This is as follows.
[tex]90,000=\frac{A((1+0.06)^{10}-1) }{0.06(1+0.06)^{10} }+\frac{20,000}{(1+0.06)^{10} }[/tex]
[tex]90,000-\frac{20,000}{(1+0.06)^{10} }=\frac{A((1+0.06)^{10}-1) }{0.06(1+0.06)^{10}}[/tex]
[tex]78,832.10=A(7.360087051)[/tex]
[tex]A=\frac{78,832.10}{7,360087051} = 10,710.76[/tex]
Ok, now that we know this value, we use the formula to find the present value of the 6 remaining payments plus 20,000 6 periods away.
[tex]PresentValue=\frac{10,710.76((1+0.06)^{6}-1) }{0.06(1+0.06)^{6} } +\frac{20,000}{(1+0.06)^{6} }[/tex]
[tex]PresentValue=66,767.48[/tex]
As in the case of the first question, we have to use MS Excel to find out the yield to the lender if the loan is repaid at the end of year 4. So please check out the attached document.
Ans. 6.6416%
Best of luck
Final answer:
Calculating the yield of a partially amortizing loan, as well as the loan balance and yield if the loan is repaid after year 4, involves complex financial calculations, including the effects of points on loan cost and yield, amortization schedules, and the distinction between principal and interest payments over time.
Explanation:
To calculate the yield of a partially amortizing loan and determine the loan balance and yield if repaid after year 4, we need to understand several concepts related to loan amortization, interest rates, and yield calculations. This question involves a complex financial calculation that requires understanding of present value, interest rates, and loan amortization schedules.
Calculating Yield on a Partially Amortizing Loan
Yield, in the context of this question, refers to the lender's return on the loan, taking into account the initial loan amount, any fees or points charged, monthly repayments, and the final balloon payment. Calculating this requires detailed financial formulae not provided in the summary, including the use of present value of annuity formulas and understanding of how points affect the effective cost of the loan and yield to the lender. Points charged upfront effectively reduce the amount of the loan disbursed and increase the lender's yield because they represent prepaid interest.
Loan Balance Repayment After Year 4
Determining the loan balance if repaid after year 4 requires calculating the amount of principal repaid by that time, factoring in monthly payments and how they are split between paying off interest and reducing the principal. This involves generating an amortization schedule for the loan.
Yield to the lender if the loan is repaid at the end of year 4 again involves complex calculations similar to those described above, adapting them to a shorter timeframe and the remaining loan balance at that time.
Deborah and Carlos need to decide which one of them will take time off from work to complete the rather urgent task of pruning their trees. Deborah is pretty good with a pole saw; she can prune the trees in 30 minutes. Carlos is somewhat slow; it takes him 5 hours to prune the trees. Deborah earns $130 per hour as a psychiatrist, while Carlos earns $25 per hour as a cobbler.
Keeping in mind that either Deborah or Carlos must take time off from work to prune the trees, who has the lowest opportunity cost of completing the task?
Answer:
Deborah has the lowest opportunity cost.
Explanation:
The opportunity cost of completing the task is the income they stop to earn meanwhile they are pruning their trees.
Deborah earns $130 per hour with her job of psychiatrist. If she prunes the trees, she will spend 30 minutes in doing so. Then, she will have an opportunity cost from those 30 minutes, and it is equal to 130:2 = $65.
Carlos earns $25 per hour with his job of cobbler. If he prunes the trees, he will spend 5 hours of his job. Then, he will have an opportunity cost of 5*25 = $125.
So, Deborah has the lowest opportunity cost.
An individual is now 50 years old, that he plans to retire in 10 years, and that he expects to live for 25 years after he retires, that is, until he is 85. He wants a fixed annual retirement income of $65,156. His retirement income will begin the day he retires, 10 years from today, and he will then get 24 additional annual payments. He currently has $100,000 saved up; and he expects to earn a return on his savings of 8 percent per year, annual compounding. To the nearest dollar, how much must he save during each of the next 10 years (with deposits being made at the end of each year) to meet his retirement goal?
Answer:
Ans. He must save during each of the following 10 years, at the end of each year $32,452.
Explanation:
Hi, in order to find the amount of money that he should have in ten years so he can receive an annual payment of $65,156 for 25 more years (24 payments), we need to bring to present value all 24 payments to year 10. Let me show you the formula.
[tex]PresentValue_{10} =\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }[/tex]
Where:
A= $65,156
n= 24
r= 0.08
Therefore the present value in year 10 is:
[tex]PresentValue_{10} =\frac{65,156((1+0.08)^{24}-1) }{0.08(1+0.08)^{24} }=686,012[/tex]
So that is our present value in year 10, or to put it in other words, our future value (if we look at it from year 0). Now we need to find the annuity (amount to save) that with account for $686,012, plus that $100,000 that he already has saved.
Every should look like this.
[tex]686,012=100,000*(1+0.08)^{10} +\frac{A((1+0.08)^{10}-1) }{0.08(1+0.08)^{10} }[/tex]
And we solve this equation for "A".
[tex]686,012=A(14.4865625)+215,892[/tex]
[tex]A=\frac{(686,012-215,892)}{14.4865625} =32,452[/tex]
Best of luck.
The Bank of Key West is not going to have enough reserves at the end of the business day to meet its reserve requirement of 10%. It currently has two options to borrow money overnight in order to meet the requirement. First, it could borrow money from the Federal Reserve at a rate of 1.15% . Second, it could borrow money from other banks at a rate of 0.25% . What is the federal funds rate, and what is the discount rate? federal funds rate:
The Discount rate is the interest rate charged by the Federal Reserve for loans, while the Federal funds rate is the interest rate charged by banks to one another for overnight loans. Banks typically borrow from each other first due to the lower Federal funds rate before turning to the Federal Reserve.
Explanation:The Federal funds rate is the interest rate at which one bank lends funds to another bank overnight. In this case, the Bank of Key West could borrow money from other banks at a rate of 0.25%, which is lower than the rate to borrow from the Federal Reserve.
On the other hand, the Discount rate is the interest rate charged to commercial banks by the Federal Reserve for loans. In your situation, borrowing directly from the Federal Reserve at a rate of 1.15% would be utilizing the discount rate.
The Bank of Key West would typically explore borrowing from other banks first, due to the lower federal funds rate, before turning to the Federal Reserve, which charges a higher discount rate. This is a common practice by banks to fulfill their reserve requirement at a lower cost.
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The federal funds rate is 0.25%, and the discount rate is 1.15%.
The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight. In the context of the given scenario, the federal funds rate is the rate at which the Bank of Key West can borrow money from other banks, which is 0.25%.
The discount rate, on the other hand, is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility, the discount window. In this scenario, the discount rate is the rate at which the Bank of Key West can borrow directly from the Federal Reserve, which is 1.15%.
Please label the statements as true or false regarding economic booms and busts. With enough careful planning, fiscal and monetary policy can prevent recessions. Had the U.S. government used fiscal and monetary policy more effectively, many economists believe that the Great Depression would not have been as severe. At the time of the Great Depression, fiscal and monetary policy were not well understood. Booms and busts are natural responses to ever‐changing economic conditions.
Answer:
With enough careful planning, fiscal and monetary policy can prevent recessions. = False
There is a normal economic cycle, which includes recession and boom accordingly, therefore, no policy can prevent such phase of an economic cycle, as the cycle is bound to happen and all the changes are inevitable.
Had the U.S. government used fiscal and monetary policy more effectively, many economists believe that the Great Depression would not have been as severe. = True
Although, there is standard economic cycle which includes recession, but with the correct formation and implementation of policies the tendency of such phases can be controlled up-to an extent, thereby, the policies if applied more effectively then, the economy had not face such huge depression.
At the time of the Great Depression, fiscal and monetary policy were not well understood. = True
As said in above point the policy if was properly implemented the tendency of depression would have been low, and accordingly it concludes that the policy was not properly understood, and thus, not implemented properly at the time of great depression.
Booms and busts are natural responses to ever‐changing economic conditions. = True
There is a standard economic cycle, which includes all the phases, including boom and recession, as normal results of economic change.
With careful planning, fiscal and monetary policy can prevent recessions, and effective use of fiscal and monetary policies could have reduced the severity of the Great Depression. However, at the time of the Great Depression, fiscal and monetary policy were not well understood. Booms and busts are natural responses to changing economic conditions.
Explanation:The statements can be labeled as follows:
True - With careful planning, fiscal (government spending and taxation) and monetary policy (the Federal Reserve's control over interest rates and money supply) can help prevent recessions by stabilizing the economy.True - Many economists believe that if the U.S. government had used fiscal and monetary policies more effectively during the Great Depression, the severity of the depression could have been reduced.False - At the time of the Great Depression, fiscal and monetary policy were not well understood, and the government did not have the tools and knowledge to effectively mitigate the effects of the Depression.True - Booms and busts are natural responses to ever-changing economic conditions as the economy goes through periods of expansion and contraction due to various factors like consumer behavior, business cycles, and global events.The CFO of Green Dating Service, Inc. has just collected the following data for December 31, 2018. Write a balance sheet and an income statement. Accounts Receivable 250,000 Accounts Payable 260,000 Capital Surplus 100,000 Cash 190,000 Common Stock 300,000 Costs 640,000 Depreciation Expense 40,000 Dividends 97,500 Net Furniture & Fixtures 200,000 Goodwill 180,000 Interest Expense 50,000 Inventory 175,000 Land 305,000 Line of Credit (used) 200,000 Long Term Loan 340,000 Retained Earnings ? Sales 980,000 Tax rate 21%
Answer:
Retained Earnings: $ 100.000
Explanation:
Assets
Cash $190.000
Accounts Receivable $250.000
Net Furniture & Fixtures $200.000
Goodwill $180.000
Inventory 175.000
Land 305.000
TOTAL 1.300.000
Liabilities
Accounts Payable 260.000
Long Term Loan 340.000
Short Term Loan 200.000
Equity
Capital Surplus 100.000
Common Stock 300.000
Retained Earnings 100.000
TOTAL 1.300.000
INCOME STATEMENT
Sales 980.000
Costs -640.000
Depreciation Expense -40.000
Interest Expense -50.000
Earnings Before Taxes 250.000
Tax RATE -52.500
Net Income 197.500
Dividends : $ 97.500
Retained Earnings : $ 100.000
The journal entry to record the allocation of factory overhead to work in process is: (A) debit Work in Process Inventory and credit Factory Overhead(B) debit Factory Overhead and credit Work in Process Inventory(C) debit Cash and credit Factory Overhead(D) debit Work in Process Inventory and credit Cash
Answer:
(A) debit Work in Process Inventory and credit Factory Overhead
Explanation:
On cost accounting, the debit is the destination of the cost.
And the credit the origin, to record the allocation of factory overhead, the destination is the work in proces, and the origin, the reason of existence of the cost is the factory ovehead which, will be credited.
Same idea applies when posting the materials used and the direct labor. A debit to work in process(destination) is made and then, a credit to raw materials inventory (origin) or labor payable (origin)
President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that
a. one of them must be lying.
b. both of them could be telling the truth if the labor force, and employment grew at the exact same rate.
c. both of them could be telling the truth if the labor force grew slower than employment.
d. both of them could be telling the truth if the labor force grew faster than employment
Answer:
d. both of them could be telling the truth if the labor force grew faster than employment
Explanation:
The president claims that more people are working, this is a nominal approach, if 5000 people were working at the beginning of his term and now, which is ending it has 5001 people working his statement will be true.
The senator makes a more economic approach, while there are more people employement, we must remember than the labor force grows each day, as more kids finish their studies and jump right into the search of jobs.
So, both statement can be true, example
at beginning
600/6,000 = 10& unemployement
6,000 labor force - 600 unemployee = 5,400 working
leaving the office:
1,100/10,000 = 11% unemployement
10,000 labor force - 1,100 unemployee = 8,900 working
UNder this scenario, both are true.
"An economy produces apples (in kilos) and computers (in units). The quantities of apples in years 2008, 2009 and 2010 are 500, 500 and 550, respectively. The quantities of computers in those same years are 5, 5 and 6, respectively. The prices of a kilo of apples (in dollars) in years 2008, 2009 and 2010 are 1, 2 and 3, respectively. The prices of computers (in dollars) for those same years are 900, 1000 and 1000. The real GDP in 2010 prices for year 2008 is"
Answer: $6,500
Explanation:
Given that,
Quantities of apples in 2008 = 500
Quantities of apples in 2009 = 500
Quantities of apples in 2010 = 550
Quantities of computer in 2008 = 5
Quantities of computer in 2009 = 5
Quantities of computer in 2010 = 6
Prices of apple per kilo:
In 2008 = 1
In 2009 = 2
In 2010 = 3
Prices of computers:
In 2008 = 900
In 2009 = 1000
In 2010 = 1000
Real GDP in 2010 prices for year 2008:
= (Quantities of apple in 2008 × price of apple in 2010) + (Quantities of computers in 2008 × price of computers in 2010)
= (500 × $3) + (5 × $1000)
= $1,500 + $5,000
= $6,500
Baker Mfg Inc. wishes to compare its inventory turnover to those of industry leaders, who have turnover of about 1313 times per year and 88% of their assets invested in inventory. Baker Mfg. Inc. Net Revenue $27 comma 50027,500 Cost of sales $20 comma 05020,050 Inventory $1 comma 2801,280 Total assets $17 comma 02017,020 a) What is Baker's inventory turnover? 15.6615.66 times per year (round your response to two decimal places). b) What is Baker's percentage of assets committed to inventory? 88% (enter your response as a percentage rounded to two decimal places).
Answer:
(A) 156.63 times
(B) 0.75
Explanation:
(A) The computation of the inventory turnover ratio is shown below:
Inventory turnover ratio = (Cost of goods sold) ÷ (Inventory)
= $2,005,020,050 ÷ $12,801,280
= 156.63 times
(B) The computation of the percentage of assets is shown below:
= (Total inventory) ÷ (total assets) × 100
= ($12,801,280) ÷ ($1,702,017,020) × 100
= 0.75
You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. Recently, you saw that StubHub was listing similar seats for $225 apiece. What does it cost you to attend the concert?
Answer: $450
Explanation:
Total tickets purchased = 2
The cost of one ticket three months ago = $100
Current price of one ticket = $225
Total cost of two tickets = $225 × 2
= $450
The opportunity cost is the benefit that is foregone by selecting some other alternative. So, here two options are available that either attend the concert or resell the ticket at $450. Therefore, the opportunity cost of attending the concert is $450.
(1) Depreciation for the current year includes equipment $2,700(2) The beginning balance of Office Supplies was $ 2,100. During the year, Bookfield purchased office supplies for $ 3,400, and at December 31 the office supplies on hand totaled $ 1,100. (Assume that Bookfield debits an asset account when supplies are purchased.)(3) The company had earned $3,400 of unearned revenueJurnalize the adjusting entry needed on December 31 for each situation.
Answer:
depreciation expense 2,700 debit
accumualted depreciation equipment 2,700 credit
--------------------
supplies expense 4,400 debit
supplies 4,400 credit
----------------
unearned revenue 3,400 debit
service revenue 3,400 credit
Explanation:
(1) we declare the expense and credit the accumualted deperication on the long-term assets
(2)
beginning 2,100 + purchase 3,400 = 5,500 availalbe
if we end up with 1,100 then we use 4,400 this will be the suplies expense we will also adjust supplies account to match the physical count.
(3) from the unearned revenue will will write-off 3,400 and reocgnize revenue for that amount
Assume that you are the owner of Campus Connection, which specializes in items that interest students. At the end of January of the current year, you find (for January only) this information:
a. Sales, per the cash register tapes, of $112,000, plus one sale on credit (a special situation) of $3,100.
b. With the help of a friend (who majored in accounting), you determine that all of the goods sold during January cost $48,000 to purchase.
c. During the month, according to the checkbook, you paid $42,000 for salaries, rent, supplies, advertising, and other expenses; however, you have not yet paid the $1,000 monthly utilities for January on the store and fixtures.
Required:
On the basis of the data given (disregard income taxes), what was the amount of net income for January?. (Hint: A convenient form to use has the following major side captions: Revenue from Sales, Expenses, and the difference—Net Income.)
Answer:
The amount of net income for January was $24,100
Explanation:
Revenues from sales $115,100 (for this analysis is not important if the sales were in cash or on credit)
-
Cost of goods sold $48,000
------------------------------------
Gross profit $67,100
-
Salaries, rent, supplies, advertising, other expenses and monthly utilities (it is not important for this analysis if all the exenses were paid) -$43,000
-----------------------------------
Net income $24,100
The net income for Campus Connection for the month of January is calculated by subtracting the total expenses ($91,000) from the total sales ($115,100), which equals $24,100.
Explanation:To calculate the net income for January for Campus Connection, we need to consider the revenues and expenses for the month.
First, let's calculate the total revenues. Cash sales amount to $112,000 and the credit sales to $3,100. Therefore, the total revenues for the month of January equal $115,100.
Next, we calculate the total expenses. We know from the data given that the cost of goods sold equals $48,000. Also, the other expenses such as salaries, rents, supplies, and advertising total to $42,000. However, the utilities for January have not yet been paid. This adds an additional $1,000 to the expenses. So the total expenses for January are $48,000 (cost of goods sold) + $42,000 (other expenses) + $1,000 (unpaid utilities) = $91,000.
The net income is calculated by subtracting the total expenses from total revenues; thus $115,100 (sales) - $91,000 (expenses) = $24,100. Therefore, the net income for Campus Connection for January is $24,100.
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Marginal costs exist because: A. the decision to engage in one activity means forgoing some other activity. B. wants are scarce relative to resources. C. households and businesses make rational decisions. D. most decisions do not involve sacrifices or tradeoffs. Review
Answer:
A. the decision to engage in one activity means forgoing some other activity
Explanation:
The marginal cost is the cost associated with producing an extra unit of output. It is the differnece in total cost at output k and output k+1
The reason behind cost are that using the input (labor, capital and material) to produce a certain good made them unable to use in other activities.
Marginal costs exist due to the concept of opportunity cost, meaning that when a business engages in one activity, it is forgoing some other activity. The cost incurred by producing one additional unit of a product is considered the marginal cost, taking into account everything that is sacrificed to produce that unit.
Explanation:Marginal costs exist because the decision to engage in one activity means forgoing some other activity. This statement represents the concept of opportunity cost, which is a critical element in the realm of economics and business. Marginal cost is the cost incurred by producing one more unit of a product and takes into consideration everything sacrificed to produce that unit, whether it's financial resources, time, labor etc. As such, whenever a business makes a decision to increase production, it is essentially under the influence of marginal costs.
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Which of the following is an example of cyclical unemployment? A. Dora lost her job when the textile mill closed. She does not have skills to work in another industry and has been unemployed for over a year. B. Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. C. George is an unskilled worker who mows lawns in the summer, but is unemployed the rest of the year. D. Jim had a job as an engineer, but quit when his wife was transferred to another state. He looked for a month before finding a new job that he liked.
Answer: B. Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel.
Explanation: One concrete example of cyclical unemployment is when an automobile worker is laid off during a recession to cut labor costs. During this downturn, people are buying fewer cars or vehicles, so the owner doesn't need as many workers to meet the demand.
I believe this is the answer
Among the given scenarios, Marsha being laid off from her job with the airline due to a recession-induced reduction in travel demand represents cyclical unemployment. Marsha expects to be rehired when the economy and travel demand rebound.
Explanation:The question asks for an example of cyclical unemployment. Cyclical unemployment refers to the type of unemployment that occurs due to downturns or recessions in the economy. It's temporary and dependent on the economic cycle. From the examples given, the instance that best matches cyclical unemployment is when Marsha was laid off from her job with the airline due to reduced demand resulting from a recession. It's cyclical unemployment because Marsha anticipates resume working once the economy recovers and demand for airline travel increases.
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