Answer:
Standard direct labor rate per hour $14
Standard direct labor hours per pound hours 1.5 hours
Standard cost per pound $21
Explanation:
The computation is shown below:
For Standard direct labor rate per hour:
= Price-hourly wage rate + payroll taxes + fringe benefits
= $11 + $1.80 + $1.20
= $14
For Standard direct labor hours per pound hours:
= Quantity-actual production time hours + rest periods and clean up hours + setup and downtime hours
= 1.1 + 0.25 + 0.15
= 1.5 hours
For Standard cost per pound:
= Standard direct labor rate per hour × Standard direct labor hours per pound hours
= $14 × 1.5 hours
= $21
The SP Corporation makes 40,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is:
Direct materials $ 9.90
Direct labor $ 8.90
Variable manufacturing overhead $ 3.65
Fixed manufacturing overhead $ 4.60
An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporation for this motor is $25.15. If SP Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be:
Multiple Choice
($76,000)
$254,000
108,000
$184,000
Answer:
c) 108,000 dollars
Explanation:
Buy option:
Purchase: 40,000 motors at 25.15 = 1,006,000
unavoidable fixed cost: 40,000 x 4.60 = 184,000
1,190,000.00
Produce option:
Manufacturing Cost (9.9 + 8.9 + 3.65) x 40,000 = 898,000.00
Fixed cost: 184,000.00
Total Cost 1,082,000.00
Differential: 1,190,000 - 1,082,000.00 = 108,000.00
It is advantageous to continue the production as the unavoidable cost will make the buy option a worse deal
Prepare the journal entry to record Jevonte Company's issuance of 36,000 shares of its common stock assuming the shares have a:
a. $2 par value and sell for $18 cash per share.
b. $2 stated value and sell for $18 cash per share.
Final answer:
To record Jevonte Company's issuance of 36,000 shares of its common stock, the journal entry would be different depending on whether the shares have a par value or a stated value.
Explanation:
To record Jevonte Company's issuance of 36,000 shares of its common stock, both the par value and the stated value of the shares need to be considered.
a. If the shares have a $2 par value and sell for $18 cash per share, the journal entry would be:
Common Stock
Cash
(36,000 x $2)
(36,000 x $18)
72,000
648,000
b. If the shares have a $2 stated value and sell for $18 cash per share, the journal entry would be:
Common Stock ($36,000 x $2)
Paid-in Capital in Excess of Stated Value
Additional Paid-in Capital ($18 - $2) x 36,000
Cash
72,000
576,000
216,000
(Loan amortization) Mr. Bill S. Preston, Esq., purchased a new house for $170,000. He paid $25,000 down and agreed to pay the rest over the next 30 years in 30 equal end-of-year payments plus 11 percent compound interest on the unpaid balance. What will these equal payments be
Answer:
The equal payments amount is $16,678.57
Explanation:
Hi, first we need to determine what the loan amount is, we can do that by substracting $25,000 (down payment) from the cost of the new house, that would be $170,000 - $25,000 = $145,000.
Now, we need to solve for "A" the following equation, given a rate of 11% compounded annually, number of yearly payments equals 30 and a present value of $145,000
[tex]PresentValue=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }[/tex]
Everything should look like this.
[tex]145,000=\frac{A((1+0.11)^{30}-1) }{0.11(1+0.11)^{30} }[/tex]
[tex]145,000=A(8.693792573)[/tex]
Therefore, A = $16,678.57
Best of luck.
Darnell wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacation is priced at $800. He has only $1,574 in his checking account, so he cannot afford to purchase both. After much thought, Darnell buys the computer and writes a check for $1,299. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Medium of Exchange Unit of Account Store of Value Darnell can easily determine that the price of the computer is more than the price of the vacation. Darnell has $1,574 in his checking account. Darnell writes a check for $1,299.
Answer:
Unit of Account
Store of Value
Medium of Exchange
Explanation:
Money can be exchanged for goods and services. Darnell exchanged money ($1299) for a computer. For money to be used as a medium of exchange, it should be generally recognised and accepted.
Money is a unit of account. Darnell compared the value of a vacation with that of a computer using their prices.
Money functions as a store of value. Money can be used to store wealth. Darnell kept his wealth (value) as money in his checking account. For money to be used as a store of value, it should be able to retain its value for a long time.
A house is to be purchased for $480,000 with a 10 percent down payment. A conventional 30-yr loan is used at 7.5 percent, rresulting in monthly payments of $3,020.61 . The interest portion of the first monthly payment will be what?
Answer:
Please see attachment
Explanation:
Please see attachment
The marginal propensity to consume (MPC) is 0.8 and government spending decreases by $1 trillion. In this case, the real GDP will decrease by $_____ trillion from the initial effect of the decrease in government spending, and $_____ trillion from the decrease in consumption.
Answer:
The correct answer is: $1 trillion; $4 trillion.
Explanation:
The marginal propensity to consume is 0.8.
Government spending decreases by $1 trillion.
The real GDP will initially decline by the amount of decline in government spending.
So the decline in the real GDP will initially be $1 trillion.
The overall decrease in the real GDP will be by the size of the spending multiplier.
Total decrease in real GDP
= [tex]\Delta G \times \frac{1}{1-MPC}[/tex]
= [tex]\$ 1\times\frac{1}{1-0.8}[/tex]
= [tex]\$1 \times \frac{1}{0.2}[/tex]
= $5 trillion
Out of this $5 trillion decrease, $1 was initially decreased.
So decline in real GDP due to reduced consumption will be
= $5 trillion - $1 trillion
= $4 trillion
Weisbro and Sons common stock sells for $24 a share and pays an annual dividend that increases by 4.9 percent annually. The market rate of return on this stock is 10.6 percent. What is the amount of the last dividend paid by Weisbro and Sons
Answer:
The amount of the last dividend paid by this company was $1.30/share.
Explanation:
Hi, in order to find the last dividend paid by the company, we need to use the following equation.
[tex]Do=\frac{Price(r-g)}{(1+g)}[/tex]
Where:
Do = Last dividend paid
r = Market rate of return
g = annual growth rate
So, everything should look like this.
[tex]Do=\frac{24(0.106-0.049)}{(1+0.049)} =1.304099[/tex]
Therefore, the last dividend paid by the company was $1.30/Share.
Best of luck
Lars runs a cookie factory. His cookies are made with sugar, peanut oil, and soybean oil. The number of boxes of cookies that he produces is y = min{su, po+2so}, where su is the number of bags of sugar, po the number of canisters of peanut oil, and so the number of canisters of soybean oil that he uses. The price of a bag of sugar is $5. The price of a canister of peanut oil is $9. The price of a canister of soybean oil is $19. (a) If Lars makes 24 boxes of cookies, how many bags of sugar will he use? Will he use peanut or soybean oil? How many canisters? Calculate the minimum cost of producing 24 boxes of cookies. (b) Suppose the price of soybean oil decreases by $1 and the price of peanut oil increases by $1. How will these changes affect the minimum cost of producing 24 boxes of cookies?
Answer:
Check the following calculations
Explanation:
If Lars makes 24 boxes of cookies,
how many bags of sugar will he use? Answer- Lars will use 24 bags of of suger.
Will he use peanut or soybean oil ? Answer - Yes. He will use peanut & soybean oil
How many canisters - 24 number of canisters of peanut oil & 48 number of canisters of soybean oil
The minimum cost of producing 24 boxes of cookies. = 24(5+9+2x19) = 24(52) = $1,248
(b) Suppose the price of soybean oil decreases by $1 and the price of peanut oil increases by $1. How will these changes affect the ?
minimum cost of producing 24 boxes of cookies = 24[5+(9+1)+2x(19-1)] = 24 [51]= $ 1,224.
Lars's cookie production employs a mathematical model to determine the number of ingredients needed to make 24 boxes of cookies, considering the costs of sugar, peanut oil, and soybean oil. A price change in peanut and soybean oil will impact the minimum cost of production. The calculation involves finding the minimum of two functions and adjusting for price changes.
Explanation:To solve Lars's cookie production cost, we must find the minimum of two expressions: su (bags of sugar), and po + 2so (canisters of peanut oil and twice the canisters of soybean oil). Given that Lars wants to make 24 boxes of cookies, we have y = min{su, po + 2so} = 24. Assuming he uses only one type of oil for simplicity, and that oil is either peanut oil (po) or soybean oil (so), we can write two separate equations: su = 24 and po + 2so = 24.
We then calculate the minimum cost of producing 24 boxes of cookies using the given ingredient prices: $5 per bag of sugar, $9 per canister of peanut oil, and $19 per canister of soybean oil.
If the price of soybean oil decreases by $1 (to $18) and the price of peanut oil increases by $1 (to $10), these changes will affect the minimum cost of producing 24 boxes of cookies. The new costs for oils will potentially make soybean oil a more attractive option, depending on the quantities needed, hence, adjusting the formula for calculating the minimum cost.
A donor pledged $500,000 to a not-for-profit hospital in 2016 to conduct medical research, conditional on the hospital raising $500,000 from other donors. The other donors met the condition in 2016. The donor transferred the funds to the hospital in 2017. In which year would the revenue be recognized?
A) 2004
B) 2005.
C) 2003.
D) None of the above
Answer:
A) 2004
Explanation: A pledge with no restrictions, however conditional on receiving matching pledges will not be recognized in the year pledge was made. The correct answer is A) 2004
The balance sheet for Sandhill Co. reports the following information on July 1, 2022. SANDHILL CO. Balance Sheet (partial) Long-term liabilities Bonds payable $2,100,000 Less: Discount on bonds payable 47,250 $2,052,750 Sandhill decides to redeem these bonds at 105 after paying annual interest. Prepare the journal entry to record the redemption on July 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
Dr Bond Payable 2,100,000
Dr Loss on bond redemption 152,250
Cr Discount on bond 47,250
Cr Cash 2,205,000
(to record the redemption on bond as at Jul 1st 2022 at 105%)
Explanation:
As Bond redemption takes place, the Bond payable account ( which has the Credit side) and Discount on bonds payable ( which has the Debit side) should be fully lifted out of the Balance Sheet. Thus, we Debit Bond redemption by the recorded amount of $2,100,000 and Credit Discount on bonds at the recorded amount of $47,250.
The Cash paid out for bond redemption is 2,100,000 x 105% = $2,205,000 which is credited as cash decreases.
The difference between Debit and Credit side of the 03 entries described above ( 2,205,000 - 2,100,000 - 47,250 = 152,250) will be recorded as Debit to Loss on bond redemption account.
Final answer:
You need to make a journal entry to record the redemption of bonds payable at 105 by Sandhill Co. on July 1, 2022.
Explanation:
The journal entry to record the redemption of bonds payable at 105 by Sandhill Co. on July 1, 2022, would be:
Bonds Payable $2,052,750Discount on Bonds Payable $47,250Cash $2,205,375To record the redemption of bonds payable at 105.Waymire Company sells a motor that carries a 60-day unconditional warranty against product failure. From prior years' experience, Waymire estimates that 3% of units sold each period will require repair at an average cost of $100 per unit. During the current period, Waymire sold 73,000 units and repaired 1,000 units.
(a) How much warranty expense must Waymire report in its current period income statement?(b) What warranty liability related to current period sales will Waymire report on its current period-end balance sheet?
Answer: Income statement $100,000
Balance sheet warranty liability $Nill
Explanation:
Since we are at the end of the period and all activities has been concluded with no expectation of claim of repairs. The firm will only record the cost incurred for current period on repairs which is $100,00 ( $100*1000) . The liability will be zero since the company has taken care of all repairs for the period.
Final answer:
Waymire must report a warranty expense of $219,000 on its income statement. The warranty liability related to current period sales to be reported on the balance sheet is $216,000, covering the estimated repairs for units still under warranty.
Explanation:
Waymire Company Warranty Expenses and Liabilities
To calculate the warranty expense Waymire must report in its current period income statement, we will use the information that Waymire estimates a 3% failure rate with an average repair cost of $100 per unit. Waymire sold 73,000 units during the current period. Therefore, the estimated warranty expense is 73,000 units imes 3% imes $100 = $219,000. This is the amount that should be recognized in the income statement as an expense.
As for the warranty liability, Waymire repaired 1,000 units. The cost for these repairs would already have been accounted for, so we need to determine the liability for units sold that have not yet failed but are still under warranty. Since 1,000 repairs have already been made, the remaining estimated repairs are for the units sold minus those repaired: 73,000 units - 1,000 repaired units = 72,000 units. The liability for these remaining units is 72,000 units imes 3% imes $100 = $216,000. This is the amount that Waymire should report on its balance sheet as a liability related to the current period sales.
A firm recently issued $1,000 par value, 20-year bonds with a coupon rate of 6% and semi-annual payments. The bonds sold at par value, but flotation costs amounted to 5% of par value. The firm has a marginal tax rate of 21%. What is the firm's cost of debt for these bonds?
a) 5.09%
b) 6.00%
c) 4.74%
d) 9.48%
e) 6.45%
Answer:
e) 6.45%
Explanation:
Since the coupons are paid semiannually, adjust the coupon payment(PMT), the time (N) of the bond.
You can solve for cost of debt using financial calculator with the following inputs;
Maturity of the bond; N = 20 *2 = 40
Face value; FV = 1000
Coupon payment; PMT = (6%/2) *1000 = 30
Price ; PV = -(1000 - floatation cost) = -(1000 - (5%*1000) = -950
then compute semiannual interest rate; CPT I/Y = 3.224%
Convert semiannual interest rate to annual rate to find the cost of debt;
3.224% *2 = 6.45%
Premier Steel, Inc. is considering the purchase of a new machine for $100,000 that has a useful life of 3 years. The firm’s cost of capital is 11.0% and the tax rate is 40%. This machine will be sold for its salvage value of $20,000 at the end of 3-years. The machine will require an investment of $2,500 in spare parts inventory upon installation. The machine will cost $8,000 to ship and $4,000 to install and modify it. Sales are as follows: year 1 = $90,000; year 2 = $97,500; year 3 = $105,000. Operating expenses are year 1 = $25,000; year 2 = $27,000; year 3 = $29,000. The investment in working capital will be liquidated at termination of the project at the end of year 3. MACRS Rates 33% 45% 15% 7% Using MACRS, what is the operating cash flow in year 1?
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Final answer:
The operating cash flow in year 1 using MACRS is $85,800.
Explanation:
To calculate the operating cash flow in year 1 using MACRS, we need to determine the depreciation expense for year 1. The machine has a useful life of 3 years, so we will use the MACRS rates: 33% for year 1, 45% for year 2, 15% for year 3, and 7% for year 4 and beyond.
First, we calculate the depreciation expense for year 1: $100,000 * 33% = $33,000.
Next, we calculate the operating income for year 1 by subtracting the operating expenses from the sales:
$90,000 - $25,000 = $65,000.
Finally, we calculate the operating cash flow by adding back the depreciation expense and subtracting the taxes:
$65,000 + $33,000(1-0.4) = $85,800.
Mandarin Company is authorized to issue 1,250,000 shares of $15 par value common stock. By November 15, 2019, the company had issued 60,000 shares at $36 per share. On November 15, 2019, the company declared a 50% stock dividend when the market price was $45 per share. What amount would be debited to the Stock Dividends account as a result of the stock dividend? Select one: a. 1,350,000 b. 450,000 c. 1,875,000 d. 900,000
Answer:
a. 1,350,000
Explanation:
The computation of the amount which is debited to the stock dividend account is shown below:
= Issued Number of shares × stock dividend percentage × market price
= 60,000 shares × 50% × $45
= $1,350,000
Simply we multiplied the issued number of shares with the stock dividend percentage and the market price so that the accurate amount can come.
All other information which is given is not relevant. Hence, ignored it
On July 15, Piper Co. sold $10,000 of merchandise (costing $5,000) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. Record entries for the July 15 and August 1 transactions.
On November 3, the Milwaukee Bucks sold a six game pack of advance tickets for $300 cash. On November 20, the Bucks played the first game of the six game pack (this represented one-sixth of the advance ticket sales). Record the entries for the November 3 and November 20 transactions.
Answer:
A journal entry is used to record financial transactions of the business operations in a company's accounting records. The journal entries of Piper Co. is recorded below:
Explanation:
The screenshot of the journal entries is attached below for a clear understanding of the narration.
For more information, refer to the link:
https://brainly.com/question/13963559?__cf_chl_captcha_tk__=pmd_4Y9coDrTxgZaRHzxPnReg9affMcqsCzyjqDpyxeY0sI-1633779752-0-gqNtZGzNAyWjcnBszRGl
The transactions for Piper Co. and Milwaukee Bucks involve recognizing sales and cost of goods sold, collecting and remitting sales tax, and recognizing unearned and actual revenue for advance ticket sales.
Explanation:On July 15, Piper Co. would make two entries: one for the cash received and one for the cost of the goods sold. The sales would amount to $10,000 and the sales tax collected would be $400 (4% of $10,000). The cost of goods sold is $5,000 so the first entry would debit Cash for $10,400, credit Sales for $10,000, and credit Sales Tax Payable for $400. The second entry would debit the Cost of Goods Sold and credit Inventory for $5,000.
On August 1, Piper Co. would record the sending of the sales tax to the government by debiting Sales Tax Payable for $400 and crediting Cash for $400.
On November 3, the Milwaukee Bucks would recognize the cash from the advance ticket sales but would record this as Unearned Revenue as the service (the games) have not yet been performed. So they would debit Cash for $300 and credit Unearned Revenue for $300.
On November 20, with the first game played, they would recognize one-sixth of the unearned revenue as actual revenue. They would debit Unearned Revenue for $50 and credit Game Revenue for $50.
Learn more about Accounting for Transactions here:https://brainly.com/question/28627936
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Beginning in 2011, the Dodd-Frank Wall Street Reform and Consumer Protection Act requires corporations with a market value over ________ to allow a nonbinding shareholder vote on executive pay.
A. $25,000,000
B. $50,000,000
C. $75,000,000
D. $100,000
E. $750,000
Answer:
The correct answer is letter "C": $75,000,000.
Explanation:
The Dodd-Frank Wall Street Reform and Consumer Protection Act is a federal law of the United States enacted in July 2010. The law revised financial regulation following the 2007–2008 financial crisis. It established that it is mandatory for companies with values over $75,000,000 to allow shareholder votes on matters such us executive payments.
The Dodd-Frank Act requires corporations with a market value over $75,000,000 to allow nonbinding shareholder votes on executive pay. This regulation, implemented in 2011, aims to increase transparency and shareholder influence in executive compensation. thus the correct answer is c.
The Dodd-Frank Wall Street Reform and Consumer Protection Act passed in response to the financial crisis of 2008, includes numerous regulations aimed at increasing the oversight of financial institutions. One specific provision, beginning in 2011, mandates that corporations with a market value over $75,000,000 must allow a nonbinding shareholder vote on executive pay. This was an effort to increase transparency and give shareholders a voice in executive compensation decisions.
Many firms include on their employment applications a box that job seekers are asked to check if they have ever been convicted of a crime. Some firms automatically reject applicants who check the box. As a result, some people with criminal convictions have difficulty finding a job, which may increase the likelihood that they will commit another crime. Some states and cities have enacted "ban the box" legislation that forbids firms from asking about criminal histories on job applications, although typically the firms are allowed to ask such questions in job interviews. A study by Jennifer L. Doleac of Texas A&M University and Benjamin Hansen of the University of Oregon found that ban the box legislation significantly reduces the probability of employment among young male African-American job applicants. The economists note that ban the box legislation: "does not address employers' concerns about hiring those with criminal records, and so could increase discrimination against groups that are more likely to include recently-incarcerated ex-offenders..." Source: Jennifer L. Doleac and Benjamin Hansen, "Does 'Ban The Box' Help or Hurt Low-Skilled Workers? Statistical Discrimination and Employment Outcomes When Criminal Histories Are Hidden," National Bureau of Economic Research Working Paper 22469 , July 2016. Briefly explain why this result might have occurred. Relate your answer to the reasons firms might be more likely to interview an applicant with a white-sounding name even if the applicant's resume was identical to that of an applicant with a black-sounding name. A. Potential employers may have believed that those with black-sounding names had completed less education. B. Those firms in the study probably believed that differing preferences for jobs exist between blacks and whites. C. They may have believed that those with a black-sounding name had higher marginal productivities. D.Hiring firms may have believed that those with black-sounding names were more likely to have a criminal conviction.
Answer:
These two statements are correct:
A. Potential employers may have believed that those with black-sounding names had completed less education.
African Americans on average have less rates of graduation from tertirary education than White Americans.
This situation might lead some employers to develop streotypes about African Americans being less educated, when it is clearly an error, and unfair, to reject a potential employee because of stereotyping instead of making an individualized analysis of his or her abilities.
D. Hiring firms may have believed that those with black-sounding names were more likely to have a criminal conviction.
African Americans on average are incarcerated more often than other ethnic groups in the US. The reasons for this are complex but poverty and racial discrimination are two big factors. This situation causes some employees to develop streotypes, leading to unfair situations as described in the first answer.
Net income was $470,000. Issued common stock for $72,000 cash. Paid cash dividend of $11,000. Paid $125,000 cash to settle a note payable at its $125,000 maturity value. Paid $121,000 cash to acquire its treasury stock. Purchased equipment for $87,000 cash.Use the above information to determine this company's cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)Statement of Cash FlowsCash flows from financing activities$ ...... ............. ............. ............ ........
Answer:
310500.
Explanation:
Given: Net income= 470000
Issued common stock= 72000
Paid cash dividend= 11000
Paid cash to settle a note payable= 125000
Paid for treasury stock= 121000
Purchased equipment= 87000
Cash flow from financial activities are the cash inflow that are used to fund company. Here we consider all financial activities which involve cash.
We add all cash inflow from issuing debt and equity then deduct all cash outflow from stock repurchase, cash paid in dividend and other financial activities.
Cash flow from financial activities (CFF)= [tex](470000+72000)-11000-125000-121000-87000[/tex]
Cash flow from financial activities (CFF)= [tex](542000)-(231500)= 310500[/tex]
∴ Cash flow from financial activities is 310500.
Chauncey Corporation began business on June 30, 2016. At that time, it issued 20,000 shares of $50 par value, six percent, cumulative preferred stock and 90,000 shares of $10 par value common stock. Through the end of 2018, there had been no change in the number of preferred and common shares outstanding. Required a. Assume that Chauncey declared dividends of $69,000 in 2016, $0 in 2017, and $354,000 in 2018. Calculate the total dividends and the dividends per share paid to each class of stock in 2016, 2017, and 2018. Round to two decimal places.
Answer:
Please see attachment
Explanation:
Please see attachment
Henry Crouch's law office has traditionally ordered ink refills 65 units at a time. The firm estimates that carrying cost is 40% of the $11 unit cost and that annual demand is about 245 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal?
Answer:
The answer is: the ordering cost will be $38
Explanation:
We have the formula for economic order quantity is:
EOQ = Square root of ( 2 x S x D / H)
in which: S ordering cost;
D: Quantity demand
H: carrying cost
For the law office to act at optimal level by ordering EOQ at 65 units a time, The ordering cost will be found be the equation:
65 = square root of ( 2 x S x 245 / 4.4) <=> 4,225 = (2 x S x 245) / 4.4 <=> 4,225 = 1225S/ 11 <=> S = $38
Thus, the ordering cost will be $38.
A major DVD rental chain is considering opening a new store in an area that currently does not have any such stores. The chain will open if there is evidence that more than 5,000 of the 20,000 households in the area are equipped with DVD players. It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have DVD players. The decision on the hypothesis test using a 3% level of significance is
Answer:
Please see attachment
Explanation:
Please see attachment
Final answer:
The student's question involves performing a hypothesis test to determine if more than 5,000 of the 20,000 households in the area have DVD players, using a sample of 300 households where 96 have DVD players and a significance level of 3%. A z-test will be used to compare the sample proportion to the hypothesized population proportion.
Explanation:
The question asks us to decide whether to open a new DVD rental store based on the evidence obtained from a sample. A chain will open a new store if more than 5,000 out of 20,000 households have DVD players. In the sample of 300 households, 96 have DVD players. We need to perform a hypothesis test to make this decision.
To test the hypothesis, define the null hypothesis (H0) as the proportion of households with DVD players being 5,000 out of 20,000, which is 0.25. The alternative hypothesis (H1) is that the proportion is greater than 0.25. The sample proportion with DVD players is 96/300, which is 0.32. We can use a z-test to compare the sample proportion to the population proportion.
The level of significance is given as 3%. This is the probability of rejecting the null hypothesis if it is actually true. After calculating the z-score for the sample proportion, we would compare it to the critical value from the z-table that corresponds to 3% significance level. If the calculated z-score is greater than the critical value, we reject the null hypothesis.
Which of the following statements is TRUE?
A) On average, smaller stocks have lower volatility than Treasury bills.
B) Portfolios of smaller stocks are typically less volatile than individual small stocks.
C) On average, smaller stocks have lower returns than larger stocks.
D) On average, Treasury bills have higher returns than stocks.
Answer:B. The portfolio of smaller stock are typically less volatile than individual small stock.
C. On average smaller stock have lower return than larger stock.
Explanation:
The larger stock most times have a higher volatility than smaller stock and usually have better records of performance, this therefore makes their returns higher than lower stock.
On an average the volatility of a smaller stock is greater than that of a portfolio of smaller stock for the portfolio stock will compensate for one another to limit the volatility.
A treasury bill has a government guarantee, their return is therefore lower and same applies to their volatility when compared to smaller stock.
When a perfectly competitive firm is in long-run equilibrium, the firm is:
A) producing at maximum average total cost.
B) producing at maximum average variable cost.
C) producing at minimum marginal cost.
D) producing at minimum long-run average total cost.
Answer:
D) producing at minimum long-run average total cost.
Explanation:
In long run equilibrium for a perfectly competitive firm, Price = MC = Minimum ATC.
The long-run equilibrium point for a perfectly competitive market occurs where the demand curve (price) intersects the marginal cost (MC) curve and the minimum point of the average cost (AC) curve.
Sevenbergen Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit $ 92 Budgeted unit sales (all on credit): July 9,000 August 11,300 September 10,400 October 10,800 Raw materials requirement per unit of output 4 pounds Raw materials cost $ 1.00 per pound Direct labor requirement per unit of output 2.8 direct labor-hours Direct labor wage rate $ 22.00 per direct labor-hour Variable selling and administrative expense $ 1.50 per unit sold Fixed selling and administrative expense $ 70,000 per month Credit sales are collected: 40% in the month of the sale 60% in the following month Raw materials purchases are paid: 30% in the month of purchase 70% in the following month The ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 30% of the following month’s raw materials production needs. If 41,920 pounds of raw materials are required for production in September, then the budgeted raw material purchases for August is closest to: Multiple Choice 57,056 pounds 44,480 pounds 43,712 pounds 70,400 pounds
Answer:
The answer is 43,712
Explanation:
We have:
Beginning finished good of August: 20% of budgeted sales in August = 20% x 11,300 = 2,260 units
Ending finished good of August : 20% of budgeted units required in September = 20% x 10,400 = 2,080 units
=> Units of finished goods to be produced in August = Unit sold - Beginning Inventory + Ending Inventory = 11,300 - 2,260 + 2,080 = 11,120 => Raw material for finished good in August = 4 * 11,120 = 44,480
Beginning Raw material for August = Raw material needed for August x 30% = 44,480 * 30% = 13,344
Ending Raw Material for August = Raw material needed for September x 30% = 41,920 x 30% = 12,576
=> Purchases of raw material in August = Raw material for finished good in August - Beginning Raw material for August + Ending Raw Material for August) = 44,480 - 13,344 + 12,576 = 43,712 pounds
A ________ is a separate entity and in that capacity can borrow from banks, bondholders, preferred stockholders, and common shareholders.
A. government organization
B. sole proprietorship
C. public company
D. limited partnership
Answer:
C. public company
Explanation:
Characteristics of a public company includes :
1. A public company is a separate legal entity.
2. Public companies can issue shares. Individuals that purchase shares in a public company are shareholders and are referred to as the owners of the public company. They usually elect board of directors to manage the company.
A preferred stockholder is different from a common shareholder in that a preferred shareholder doesn't have voting rights and he's paid dividends first before the common shareholder.
3. A public company can issue bonds and borrow from banks.
Governments can issue bonds but not shares.
A sole proprietorship is not a separate legal entity and can't issue bonds or shares.
A limited partnership don't issue shares or bonds.
Answer:
C
Explanation:
A public company a corporate sole with the right to borrow from all sources to conduct its business or raise equity from the stock market.
Changes in governments or ruling political parties can affect businesses. The main concern of a multinational corporation is
Multiple Choice
A. change in the economic risk.
B. access to open markets.
C. the continuity of the set of rules, codes of behaviors, and the rule of law.
D. which government is in power.
E. the exchange rate and trade policies.
Answer:
D. which government is in power.
Explanation:
In a democratic system of ruling when one party come into power after getting majority votes the main concern of the corporation unit is to know which government is in power or which political party has a chance to gain majority votes.
Every government that takes oath for next five year or defined year has its own policy on economic or for business. This predefined rules and policy may be differ from exciting government or may be followed the path of previous government. therefore corporation unit are always in a mood to go with coordination with new government to have maximum advantage
Paul, the HR manager, works in the Townsville plant and reports to the plant manager there, but he also reports to the corporate HR director in Cityburg. This reporting structure violates the principle of ________.
A. unity of purpose
B. unity of command
C. chain of command
D. division of authority
Answer:
Letter B is correct. Unity of command.
Explanation:
Unity of command is defined as the importance of respecting hierarchy within an organization. The orders are given by the superiors and the subordinates must comply with them, that is, the orders of those who are at the top of the hierarchy must always be respected and only the superiors are allowed to change them.
When there is a violation of the command unit, several related conflicts can arise, such as lack of consensus among teams, disorganization, failure in the communication process, which negatively impact organizational effectiveness.
Suppose a banking system receives a new deposit of $1,000. If the reserve requirement is 20%, by how much can the total volume of deposits in that banking system ultimately rise as a result, assuming all excess reserves are loaned out and all loan proceeds are re-deposited?
Answer:
Increase in initial deposit will be $4000
Explanation:
We have given initial deposit = $1000
Required reserve ratio = 20 % = 0.2
We have to find the total increase in deposit
We know that total increase in deposit = [tex]\frac{intial\ deposit}{required\ reserve\ ratio}-initial\ deposit[/tex]
So We know that total increase in deposit = [tex]\frac{1000}{0.2}-1000=$4000[/tex]
So increase in initial deposit will be $4000
You recently purchased a stock that is expected to earn 10 percent in a booming economy, 4 percent in a normal economy, and lose 4 percent in a recessionary economy. There is a 15 percent probability of a boom, a 70 percent chance of a normal economy, and a 15 percent chance of a recession. What is your expected rate of return on this stock? a. 1.85 percent b. 3.70 percent c. 10.00 percent d. 4.67 percent e. 3.33 percent
Answer:
b. 3.70 percent
Explanation:
Expected rate of return of a stock, given probabilities, is calculated by summing up the product of probability of each state occurring by the expected return of the stock should that happen.
Expected rate of return = SUM (probability *return)
Boom;(probability* return) = (0.15* 0.10) = 0.015 or 1.5%
Normal ;(probability* return) = (0.70* 0.04) = 0.028 or 2.8%
Recession ; (probability* return) = (0.15* -0.04) = -0.006 or -0.6%
Next, sum up the expected return for each state of the economy to find the expected rate of return on this stock;
= 1.5% + 2.8% -0.6%
= 3.7%
Therefore, the correct answer is choice B.
On September 1, 2020, Pina Corporation acquired Kingbird Enterprises for a cash payment of $690,000. At the time of purchase, Kingbird’s balance sheet showed assets of $570,000, liabilities of $230,000, and owners’ equity of $340,000. The fair value of Kingbird’s assets is estimated to be $880,000.
Final answer:
When Pina Corporation acquired Kingbird Enterprises, the journal entry would be recorded in the balance sheet. The fair value of Kingbird's assets is higher than the book value, resulting in an increase in the total assets of Pina Corporation.
Explanation:
When Pina Corporation acquired Kingbird Enterprises on September 1, 2020, the journal entry would be:
Dr: Assets $570,000
Cr: Cash $690,000
The fair value of Kingbird's assets is $880,000, which is higher than the book value of $570,000. This implies that the total assets of Pina Corporation would increase by $310,000. The entry to record the increase in value would be:
Dr: Fair Value Adjustment $310,000
Cr: Gain on Bargain Purchase $310,000
As a result, the total assets of Pina Corporation will be $880,000 after the acquisition.