On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:
Accounts Debit Credit
Cash $ 43,200
Accounts Receivable 45,500
Supplies 8,000
Equipment 69,000
Accumulated Depreciation $ 9,500
Accounts Payable 15,100
Common Stock, $1 par value 15,000
Additional Paid-in Capital 85,000
Retained Earnings 41,100
Totals $ 165,700 $ 165,700
During January 2018, the following transactions occur:
January 2 Issue an additional 2,000 shares of $1 par value common stock for $40,000.
January 9 Provide services to customers on account, $15,600.
January 10 Purchase additional supplies on account, $5,400.
January 12 Repurchase 1,200 shares of treasury stock for $17 per share.
January 15 Pay cash on accounts payable, $17,000.
January 21 Provide services to customers for cash, $49,600.
January 22 Receive cash on accounts receivable, $17,100.
January 29 Declare a cash dividend of $0.30 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Grand Finale Fireworks had 15,000 shares outstanding on January 1, 2018 and dividends are not paid on treasury stock.)
January 30 Reissue 800 shares of treasury stock for $19 per share.
January 31 Pay cash for salaries during January, $42,500.
1. Record each of the transactions listed above.
a. Unpaid utilities for the month of January are $6,700.
b. Supplies at the end of January total $5,600.
c. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a service life of three years and a residual value of $10,500.
d. Accrued income taxes at the end of January are $2,500.
2. Record the adjusting entries on January 31, 2018 for the above transactions.
3. Prepare an adjusted trial balance as of January 31, 2018.
4. Prepare a multiple-step income statement for the period ended January 31, 2018.
5. Prepare a classified balance sheet as of January 31, 2018.
On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Debit Credit Cash $ 43,200 Accounts Receivable 45,500 Supplies 8,000 Equipment 69,000 Accumulated Depreciation $ 9,500 Accounts Payable 15,100 Common Stock, $1 par value 15,000 Additional Paid-in Capital 85,000 Retained Earnings 41,100 Totals $ 165,700 $ 165,700
Answers
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
The journal record is attached.
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.
The question requires an understanding of business accounting, transaction recording, creation of adjusting entries, and the preparation of financial statements. The application of double-entry system, accrual concepts, and financial statement structuring play a critical role in effectively answering this question.
Explanation:This question pertains to the analysis of business transactions related to accounts in a ledger, execution of transactions, adjusting entries, preparation of an adjusted trial balance, multiple-step income statement, and a classified balance sheet. Given the initial account balances and the series of transactions and adjustments that took place within the month of January, you are tasked with reflecting these in the company's accounts, preparing the trial balance, income statement, and balance sheet. This involves dealing with a variety of accounting concepts such as accumulated depreciation, accounts payable and receivable, treasury stock, dividends, etc.
The completion of these tasks requires an understanding of the double-entry system, accrual accounting concepts, as well as the proper structuring of financial statements. To give an example, for a transaction like 'Purchase additional supplies on account, $5,400', you would need to debit 'Supplies' and credit 'Accounts Payable', thus increasing both accounts.
On the other hand, for adjusting entries such as 'Unpaid utilities for the month of January are $6,700', you would need to debit 'Utilities Expense' and credit 'Utilities Payable' therefore recognizing the incurred expense and the liability. This entails following the accrual accounting concept where expenses are recognized when they are incurred rather than when they are paid.
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Related Questions
Lindsey exchanges investment real estate parcels with Donna. Her adjusted basis in the property is $400,000, and it is encumbered by a mortgage liability of $200,000. Donna assumes the mortgage. Donna's property is appraised at $1,000,000 and is subject to a $100,000 liability. Lindsey assumes the liability. If no cash is exchanged, what is the amount of gain recognized by Lindsey?
Answers
Answer:
$500,000
Explanation:
For Lindsey, the cost incurred in the acquisition of Donna's property via the exchange is
= $400,000 + $200,000
= $600,000
For Donna, the cost incurred in the acquisition of Lindsey's property via the exchange is
= $1,000,000 + $100,000
= $1,100,000
If no cash is exchanged, amount of gain recognized by Lindsey
= $1,100,000 - $600,000
= $500,000
Sunland Company had these transactions during the current period. June 12 Issued 84,000 shares of $1 par value common stock for cash of $315,000. July 11 Issued 4,000 shares of $105 par value preferred stock for cash at $113 per share. Nov. 28 Purchased 3,100 shares of treasury stock for $7,700.
Prepare the journal entries.
Answers
Answer:
Please see attachment
Explanation:
Please see attachment
Marigold Company estimates that 2017 sales will be $42,500 in quarter 1, $53,700 in quarter 2, and $65,700 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending finished goods inventory equal to 22% of the next quarter’s expected cost of goods sold. Prepare a merchandise purchases budget by quarter for the first 6 months of 2017.
Answers
Answer:
Prepare a merchandise purchases budget by quarter for the first 6 months of 2017.$ 50.652
Explanation:
Each month the company has to purchase the inventory to the next quarter and cover the cost of goods of the current quarter which is the costo of good of the months minus the initial inventory.
Quarter 1 - Quarter 2 - Quarter 3
$42,500 - $53,700 - $65,700 - Sales
$21,250 - $26,850 - $32,850 - Cost of Goods
$4,675 - $5,907 - $7,227 - Initial Inventory
$22,482 - $28,170 - ------------- Merchandises Purchases
Total Merchandise purchases for the first two quarters :
$50,562 = $22,482 + $28,170
$22,482 = $21,250 - $4,675 + $5,907
$28,170 = $26,850 - $5,907 + $7,227
To carefully integrate and coordinate the company's many communications channels and produce greater sales impact, some companies appoint a(n) ________.
A) idea champion
B) marketing communications director
C) sales representative
D) business analyst
E) media planner
Answers
Answer: E - Media Planner
Explanation: Media Planners are tasked with the objective of maximising returns on advertisement and company's promotional activities for an improved sales.
Media planners are responsible for creatively thinking of different marketing strategies to get to their target customers.
They make use of different marketing communications such as radio, television, hand bills, online articles, billboards etc to communicate with their target customers.
Selected data taken from a recent year’s financial statements of trading card company Topps Company, Inc. are as follows (in millions). Net sales $326.7 Current liabilities, beginning of year 41.1 Current liabilities, end of year 62.4 Net cash provided by operating activities 10.4 Total liabilities, beginning of year 65.2 Total liabilities, end of year 73.2 Capital expenditures 3.7 Cash dividends 6.2 Compute the free cash flow
Answers
Answer:
$0.5 million
Explanation:
Given: Net sales= $326.7 million
Current liabilities, beginning of year $41.1 million
Current liabilities, end of year $62.4 million
Net cash provided by operating activities $10.4 million
Total liabilities, beginning of year $65.2 million
Total liabilities, end of year $73.2 million
Capital expenditures $3.7 million
Cash dividends $6.2 million
Now, compute free cash flow.
Formula: Free cash flow= [tex](\textrm{ Net cash provided by operating activities - capital expenditure - cash dividend})[/tex]
Free cash flow= [tex](10.4 - 3.7 - 6.2) = 10.4 - 9.9[/tex]
∴ Free cash flow= $0.5 million
Free cash flow of firm is useful to know the profitability of company excluding all non cash expense from firm´s income statement.
Calculating Economic Value Added East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $630,000 Cost of goods sold 380,000 Gross margin $250,000 Selling and administrative expense 174,400 Operating income $ 75,600 Less: Income taxes (@ 40%) 30,240 Net income $ 45,360 Total capital employed equaled $381,000. East Mullett's actual cost of capital is 8 percent. Required: Calculate the EVA for East Mullett Manufacturing. $
Answers
Answer:
$14,880
Explanation:
The formula to compute EVA is shown below:
= Net operating income or earnings after taxes - (Total capital employed × cost)
= $45,360 - ($381,000 × 8%)
= $45,360 - $30,480
= $14,880
We simply applied the economic value added formula so that the accurate value can come.
All other information which is given is not relevant. Hence, ignored it
Kincaid Company's Retained Earnings balance on January 1 was $9,000. During the current year, Kincaid earned $3,100 in revenues and incurred $4,300 in expenses. Kincaid declared and paid $3,000 in dividends, all in cash. After the closing entries are made, Kincaid's Retained Earnings balance on December 31 will be:
A) $7,800.
B) $9,100.
C) $9,000.
D) $4,800.
Answers
Answer:
D) $4,800
Explanation:
Previous Retained Earnings + Revenue - Expenses - Dividends = Current Retained Earnings
Old Retained Earnings - $9,000
Revenue - $3,100
Expenses - ($4,300)
Dividends - ($3,000)
Current Retained Earnings = $4,800
Final answer:
Kincaid's Retained Earnings balance on December 31 will be $4,800 after accounting for the year's net loss and dividends paid.
Explanation:
After the closing entries are made, Kincaid's Retained Earnings balance on December 31 will be calculated based on the beginning balance, plus net income, and minus dividends paid. We start with the beginning balance of retained earnings on January 1, which was $9,000. During the year, Kincaid earned revenues of $3,100 and incurred expenses of $4,300, leaving us with a net loss of $1,200 ($3,100 - $4,300). This net loss will decrease retained earnings. Moreover, Kincaid declared and paid $3,000 in dividends, which will further decrease retained earnings.
To find the ending Retained Earnings balance, we subtract both the net loss and dividends from the beginning balance:
Beginning Retained Earnings: $9,000
Net Loss: -$1,200
Dividends Paid: -$3,000
Ending Retained Earnings: $9,000 - $1,200 - $3,000 = $4,800
Therefore, the answer is D) $4,800.
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
Answers
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.
Accounting Fundamentals of Healthcare ManagementWorking capital techniques focus specifically on what aspects of an organization’s finances?What specific task does a manager undertake when handling working capital issues?What are the three primary reasons an organization holds cash or cash equivalents?What is the accounts receivable cycle? Why is this task especially important for health care organizations?What is the goal of the EOQ? How does it differ from JIT inventory?What are the steps in managing the revenue cycle?Should an organization take a discount of 1.5/10 N/ 30 on a $9,000 invoice or simply pay the bill when due?
Answers
Answer:
Check the following calculations
Explanation:
1. Working capital techniques focuses on short term borrowings of an organisation. An organisations meet its working capital needs by borrowing the funds for short term and meet the funds it requires to manage the operational requirements. This is the reason why short term borrowing limits of any organisation is linked directly to the value of its working capital ie., Inventories, receivables etc.,
2. A manager typically focusses on reducing the receivables by improving the collections from overdue debtors and on evaluating whether the inventories are procured optimally or purchased in bulk more than the requirement and negotiates with vendors for increased credit terms. He also works on ensuring that the short term borrowings are represented by the drawing power available from its current assets. If there is any gap, he would work on borrowing long term funds and utilise it to meet the shortfall in working capital with necessary approvals.
3.Accounts receivable cycle represents the no of days between the date of invoicing to a customer to the date of realisation of billed amount from the customer. In health care industry, most of the revenues are settled through insurance claim process. Insurance companies typically delay the settlement stating deficiencies in the documents submitted. This would result in increased ageing of receivables. Unless closely monitored and followed up, the realisation of dues would be a concern in this industry.
4. Goal of Economic Order Quantity (EOQ) is to minimise the inventory holding costs and the costs of ordering a product by optimally assessing the quantity to order .Here , the key assumption is the demand quantity would be certain and constant throughout the period. Just in Time (JIT) inventory is a manufacturing system which focuses to produce or procure products only when the demand arise. Hence, the focus is mainly on time reduction between the time of order and time of sourcing the material. JIT doesnt assume any static demand.
5. Revenue cycle in a Health care industry represents the difference between the date of admission of a patient and the date of receipt of fees . Steps involved in managing revenue cycle in a health care industry are provided below:
- Developing a robust system to track and monitor the revenue cycle for each patient
- Agreeing on a clear SOP (Standard operating procedure) with Insurance companies in submission and settlement of claims
- Review of revenue cycle by Top management team and raising relevant queries and actionable points to improve the status
Decision on offering cash discount.
It is prudent to collect after 30 days instead of giving cash discount as shown below
An epidemiologic experiment is performed in which one group is exposed to a suspected factor and the other is not. All individuals with an odd hospital admission number are assigned to the second group. The main purpose of this procedure is to:a. ensure a double-blind study.b. prevent observer bias with respect to the factor.c. prevent observer bias with respect to the outcome.d. improve the likelihood that the two groups will be comparable with regard to known and unknown confounding factors.e. guarantee comparability of the two groups with regard to other relevant factors.
Answers
Answer:
d. improve the likelihood that the two groups will be comparable with regard to known and unknown confounding factors.
Explanation:
Epidemiology is the term that is used to define a study in which the study is done on a defined population for the health related issues, that is about answering the who, when and where related to this study.
In this given question also the experiment focuses on developing two different groups to understand and conduct the study and analysis properly, based on the suspected factor and how they react to it.
Thus, it will lead to compare the groups in order to make the analysis efficient keeping constant factors.
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?
Answers
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
_________ policy involves the decision to pay out earnings to shareholders or to retain and reinvest them in the firm. When distributing income to stockholders there are three key issues to consider: (1) How much should be distributed? (2) Should the distribution be in the form of dividends, or should the cash be passed on to shareholders by _________ stock?
(3) How stable should the distribution be? When deciding how much cash to distribute, a firm's managers must remember that the firm's objective is to_______ shareholder value. The target_______ ratio is defined as the percentage of net income distributed as cash dividends, and it should be based on investors' preferences for dividends versus capital gains. Any change in this ratio will have two opposing effects: (1) If dividends are increased, then taken alone this will cause the firm's stock price to_______ . (2) However, an increase in dividends will also cause the firm's expected growth rate to_______ and this will tend to _______the firm's stock price. The _______dividend policy is the one that strikes a balance between current dividends and future growth _______and the firm's stock price.
Answers
Answer:
The blanks anwers are below
Explanation:
Kindly consider blanks in order:
Payout policy
Repurchasing
Maximize
Payout
Rise/Increase
Decline
Decrease
Sustainaible
maximizes
Some blanks may not match. The answers are correct although.
Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $128,000. The fair market value of the interest is $140,000. In a proportinate nonliquidating distribution, the LLC distributes $30,000 cash and equipment with an adjusted basis of $5,000 and a fair market value of $8,000 to him on that date. How much is Franco's adjusted basis in the LLC interest after the distribution and what is the amount of his basis in the equipment received?
Answers
Answer:
Please see attachment
Explanation:
Please see attachment
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.
Answers
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.
Use this information for Chicks Corporation to answer the question that follow. Chicks Corporation had $1,100,000 in invested assets, sales of $1,210,000, income from operations amounting to $302,500, and a desired minimum return of 15%. The profit margin for Chicks is
a. 15%
b. 25%
c. 27.5%
d. 22%
Answers
Answer:
Option B.
Explanation:
Given information:
Assets = $1,100,000
Sales = $1,210,000
Income or profit = $302,500
Formula for profit margin is
[tex]\text{Profit margin}=\dfrac{Profit}{Sales}\times 100[/tex]
Substitute the given values in the above formula.
[tex]\text{Profit margin}=\dfrac{302500}{1210000}\times 100[/tex]
On simplification we get
[tex]\text{Profit margin}=25\%[/tex]
The profit margin for Chicks is 25%.
Therefore, the correct option is B.
A call option with an exercise price of $30 and four months to expiration has a price of $4.10. The stock is currently priced at $29.80, and the risk-free rate is 4 percent per year, compounded continuously. What is the price of a put option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answers
Answer:
price is $3.90
Explanation:
given data
exercise price = $30
four months to expiration price = $4.10
stock currently priced = $29.80
risk free rate = 4 % per year
to find out
What is the price of a put option with the same exercise price
solution
we know that put call parity that is express as
S + P = C + E × [tex]e^{-rt}[/tex] ........................1
here S is stock price and P is put price and R is risk free rate and C is call price and t is time to maturity and E is exercise price
so put here all these value in equation 1 we get
P = C + E × [tex]e^{-rt}[/tex] - S
P = 4.10 + 30 × [tex]e^{-0.04*\frac{4}{12}}[/tex] - 29.80
P = 3.90
so price is $3.90
The price of a put option with the same exercise price as the call option is $4.30.
Explanation:To find the price of a put option with the same exercise price as the call option, we can use the put-call parity formula. The put-call parity formula states that the price of a call option plus the present value of the exercise price equals the price of a put option plus the current stock price. We can rearrange this formula to solve for the price of the put option:
Put Price = Call Price + Exercise Price - Stock Price
Substituting the given values, we have:
Put Price = $4.10 + $30 - $29.80 = $4.30
Therefore, the price of a put option with the same exercise price is $4.30.
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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.
Answers
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
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?
Answers
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 security analyst is reviewing output from a CVE-based vulnerability scanner. Before
conducting the scan, the analyst was careful to select only Windows-based servers in a specific
datacenter. The scan revealed that the datacenter includes 27 machines running Windows 2003
Server Edition (Win2003SE). In 2015, there were 36 new vulnerabilities discovered in the Win2003SE
environment. Which of the following statements are MOST likely applicable? (Choose two.)
A. Remediation is likely to require some form of compensating control.
B. Microsoft's published schedule for updates and patches for Win2003SE have continued
uninterrupted.
C. Third-party vendors have addressed all of the necessary updates and patches required by
Win2003SE.
D. The resulting report on the vulnerability scan should include some reference that the scan of the
datacenter included 27 Win2003SE machines that should be scheduled for replacement and
deactivation.
E. Remediation of all Win2003SE machines requires changes to configuration settings and
compensating controls to be made through Microsoft Security Center's Win2003SE Advanced
Configuration Toolkit.
Please explain for thumbs up.
Answers
Answer:
The answers are Letters D and E.
Explanation:
The resulting report on the vulnerability scan should include some reference that the scan of the datacenter included 27 Win2003SE machines that should be scheduled for replacement and deactivation.
Remediation of all Win2003SE machines requires changes to configuration settings and compensating controls to be made through Microsoft Security Center's Win2003SE Advanced Configuration Toolkit.
You purchased 1,000 shares of the New Fund at a price of $23 per share at the beginning of the year. You paid a front-end load of 2.5%. The securities in which the fund invests increase in value by 9% during the year. The fund's expense ratio is 1.3%.
What is your rate of return on the fund if you sell your shares at the end of the year?
Answers
Answer:
5%
Explanation:
Front-end load = 2.5%
The cost of 1,000 shares:
= (1,000 × $23) ÷ (1 - 0.025)
= $23,590
NAV at the end of the year = NAV in the beginning × (1 + r - expense ratio)
= $23 × (1 + 0.09 - 0.013)
= $23 × 1.077
= $24.771
Value of 1,000 shares at the end of the year:
= NAV at the end of the year × 1,000 shares
= $24.771 × 1,000
= $24,771
Rate of return:
= (Value of shares at the end ÷ Value of shares in the beginning) - 1
= ($24,771 ÷ $23,590) - 1
= 0.05006 or 5%
Recently, some executives for highway construction companies agreed to stop competing with each other on price and to meet every three months to decide their price for the next quarter.
In this situation:
A. the Sherman Act has been violated.
B. the Robinson-Patman Act has been violated by price discrimination.
C. the executives are exercising their right to free trade.
D. the unfair trade practice acts have been violated.
E. as long as prices don't increase—the executives have done nothing wrong.
Answers
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
Answers
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 are advantages of the corporate form of organization?
I. Ability to raise large sums of equity capital
II. Ease of ownership transfer
III. Profits taxed at the corporate level
IV. Limited liability for all owners
A. I and II only
B.III and IV only
C.II, III, and IV only
D. I, II, and IV only
E. I, II, III, and IV
Answers
Answer:
D. I, II, and IV only
Explanation:
A corporation is a form of business where ownership can be acquired through purchase of shares.
The liability of shareholders also known as owners is limited to the amount invested in the business.
Corporations can raise capital through the issuance of shares, bonds and through borrowing.
The profits of a corporation can be taxed at the corporation and personal level. This is known as double taxation.
I hope my answer helps you
Answer:
A. I and II only
Explanation: don't get caught lackin.
Roger inherited 100 shares of Periwinkle stock when his mother, Emily, died. Emily had acquired the stock for a total of $60,000 on November 15, 2015. She died on August 10, 2019, and the shares were worth a total of $55,000 at that time. Roger sold the shares for $36,000 on December 22, 2019. How much gain or loss does Roger recognize? What is the nature of that gain or loss?
Answers
Answer:
Please see attachment
Explanation:
Please see attachment
On a tropical island there are 100 potential boat builders, numbered 1 through 100. Each can build up to 16 boats a year, but anyone who goes into the boatbuilding business has to pay a fixed cost of $15. Marginal costs differ from person to person. Where y denotes the number of boats built per year, boat builder 1 has a total cost function c(y) = 15 + y. Boat builder 2 has a total cost function c(y) = 15 + 2y, and more generally, for each i, from 1 to 100, boat builder i has a cost function c(y) = 15 +iy. If the price of boats is 40, how many boats will be built per year? a. 624 b. 200 c. 936 d. 400 e. Any number between 640 and 656 is possible.
Answers
Answer:
a. 624
Explanation:
Please see attachment .
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?
Answers
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.
he following information relates to a company’s defined benefit pension plan at December 31:
Accumulated benefit obligation: $1,035,000
Projected benefit obligation: 1,250,000
Prior service cost: 113,000
Net gain on plan assets: 167,000
Plan assets (fair value): 737,000
What amount should the company report as its pension liability at December 31?
Answers
Final answer:
The company should report a pension liability of $513,000 at December 31, calculated by subtracting the fair value of the plan assets ($737,000) from the Projected Benefit Obligation ($1,250,000).
Explanation:
To calculate the company's pension liability at December 31, we need to look at the Projected Benefit Obligation (PBO) and the fair value of the plan assets. The company's PBO is $1,250,000 and the plan assets are valued at $737,000. The pension liability is simply the PBO minus the fair value of plan assets. Therefore, the pension liability equals $1,250,000 - $737,000 = $513,000.
This means the company should report a pension liability of $513,000 at December 31. This is the amount by which the obligations exceed the plan's assets. Note that neither the accumulated benefit obligation, prior service cost, nor the net gain on plan assets affect the calculation of the pension liability.
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?
Answers
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.
The Wall Street Journal reports that the rate on three-year Treasury securities is 4.75 percent and the rate on four-year Treasury securities is 5.00 percent. The one-year interest rate expected in three years is E(4r1), 5.25 percent. According to the liquidity premium theory, what is the liquidity premium on the four-year Treasury security, L4?
0.0375 percent0.504 percent5.01 percent5.04 percent
Answers
Answer:
L4= 0.504%
Explanation:
1 +1R4= {(1 +1R3)(1 + E(4r1) +L4)}1/4
1.0500 = {(1.0475)^3(1 + 0.0525 +L4)}1/4
(1.0500)^4= (1.0475)3^(1 + 0.0525 +L4)
(1.0500)^4/(1.0475)^3= 1 + 0.0525 + L4
(1.0500)4/(1.0475)^3-1.0525
L4= .0050358564 = 0.504%
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.
Answers
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.