Answer:
What journal entry did Pincus record to write off uncollectible accounts during 2021
Dr Allowance for Uncollectible Accounts $ 6,300
Cr Accounts receivable $ 6,300
What journal entry did Pincus record to recognize bad debt expense for 2021?
Dr Bad Debt Expense $ 8,040
Cr Allowance for Uncollectible Accounts $ 8,040
Explanation:
Pincus provided a total of $156,000 of services on account.
Dr Accounts receivable $ 156,000
Cr Sales $ 156,000
In 2021, the company wrote off uncollectible accounts of $6,300
Dr Allowance for Uncollectible Accounts $ 6,300
Cr Accounts receivable $ 6,300
By the end of 2021, cash collections on accounts receivable totaled $132,300.
Dr Cash $ 132,300
Cr Accounts receivable $ 132,300
Balances on Accounts 31.12.2012 before adjustment
Accounts receivable CREDIT $ 17,400
Allowance for Uncollectible Accounts DEBIT $ 6,300
Pincus estimates that 10% of the accounts receivable balance at 12/31/2021 will prove uncollectible.
Dr Bad Debt Expense $ 8,040
Cr Allowance for Uncollectible Accounts $ 8,040
If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of estimated value.
Because the company already has a DEBIT balance ($6,300) in the Allowance for Doubtful Accounts it's necessary to register an entry that COMPLEMENT ($8,040) the existing value and reflect the value estimated as bad debts ($1,740).
Bad Debt Expense = $8,040 - $6,300 = $1,740
It's necessary to reflect $1,740 in the Allowance for Uncollectible Accounts as Credit, so we need an entry of $8,040.
Which of the following variables is/are not required input(s) for parsimonious multiyear forecasting? Select one:
A. Net operating asset turnover (NOAT)
B. Net operating profits margin (NOPM)
C. Sales growth
D. Net nonoperating obligations (NNO)
E. All of the above are required inputs
Option(D) For parsimonious multiyear forecasting, variables such as NOAT, NOPM, and Sales Growth are commonly used, whereas NNO might not be essential. Off-balance sheet activities also influence financial analysis but are not typically considered in this type of forecasting.
When considering parsimonious multiyear forecasting, not all variables are essential inputs. Specifically, variables such as Net Operating Asset Turnover (NOAT), Net Operating Profits Margin (NOPM), and Sales Growth tend to be critical as they directly relate to a company's operational efficiency and market performance.
However, Net Nonoperating Obligations (NNO), while important in broader financial analysis, may not be as crucial for a compact multiyear forecast focused on the core operations of the firm. Additionally, other factors like banking activities taking place off the balance sheet can affect a firm's financial outlook but are not typically included in a parsimonious forecasting model.
Today, Jennifer earns $55000 at her first job. Her mom used to make $15,000 at her first job in 1975. Jennifer is of the opinion that she makes more than her mom would have made if she started working today. Her mom thinks Jennifer would have earned less than she if Jennifer had started working in 1975. If the CPI today is 237 and the CPI in 1975 was 82, then
Answer:
Jennifer makes more.
Explanation:
($15,000/82) x 237= $43,354
($55,000/237) x 82 = $19,030
Jennifer makes more.
Patrick, an attorney, is the sole shareholder of Gander Corporation, a C corporation. Gander is a personal service corporation with a fiscal year ending November 30 (pursuant to a § 444 election). The corporation paid Patrick a salary of $180,000 during its fiscal year ending November 30, 2018. How much salary must Gander pay Patrick during the period December 1 through December 31, 2018, to permit the corporation to continue to use its fiscal year without negative tax effects?
Answer:
Therefore, the Salary that Gander Corporation Pay Patrick during the Period without Negative Tax effects is $15,000.
Explanation:
Calculation of the Salary that Gander Corporation Pay Patrick during the Period:
December 1 through December 31 of the Current Year is One Month, They have to Pay 1/12 of the following year tax:
The salary for the deferral period (December 1 through December 31) must be at least proportionate to the employee’s salary received for the fiscal year.
Gander Corporation must pay the amount to Patrick during the Period December 1 through December 31, to permit the continued use of its fiscal year without negative tax effects is as follows,
$180,000 *1/12 = $15,000
The Fed’s control of the money supply is not precise because a. Congress can also make changes to the money supply. b. there are not always government bonds available for purchase when the Fed wants to perform open-market operations. c. the Fed does not know where all U.S. currency is located. d. the amount of money in the economy depends in part on the behavior of depositors and bankers.
Answer:
The correct answer is (d)
Explanation:
The Fed doesn't have exact power over the cash supply on the grounds that the multiplier connecting the fiscal base and the cash supply isn't exceptionally steady or unsurprising, particularly in the short run. The cash supply is at last constrained by people in general, the banks, and the Fed. People in general chooses the amount of the fiscal base they will store in banks and the amount they will hold as money in the hands of the general population.
If actual output exceeds potential output, the economy
A. is in neither a short-run nor long-run equilibrium.
B. is experiencing a recessionary gap.
C. may be in a long-run equilibrium but is not in a short-run equilibrium.
D. is experiencing an inflationary gap.
Answer:
D. Is experiencing an inflationary gap.
Explanation:
The potential output is the highest level of gross domestic product that can be sustained in the long term using full employment. If the actual output exceeds the potential output, then the output gap (the difference between the actual and the potential output) is positive, which means that the gross domestic product exceeds the trend. This implies that there will be inflationary pressures if we try to keep the gross domestic product in the new actual output level, since there would need to be an overtime employment of the workforce and all the resources would be fully used, so any expansion above that level would imply pressures on the economy.
Last year, Kurt invested $1,000 in ABC stock, $1,000 in long-term government bonds, and $1,000 in U.S. Treasury bills. Over the course of the year, he earned returns of 10.3 percent, 8.8 percent, and 4.3 percent, respectively. What is the risk premium that Kurt received on his ABC stock investment?
Answer:
6%
Explanation:
Loaded-Up Fund charges a 12b-1 fee of 1.0% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of 2% but has no 12b-1 fee and an expense ratio of 0.25%. Assume the rate of return on both funds’ portfolios (before any fees) is 6% per year. How much will an investment of $1,000 in each fund grow to after: (Round your answers to 2 decimal places.)
Answer:
Please see attachment
Explanation:
Please see attachment
Final answer:
The question requires a comparison of the future values of investments in two mutual funds with different fee structures, considering a 6% annual return rate and subtracting the respective fees to find the growth of a $1,000 investment.
Explanation:
The question is about calculating the future value of investments in two mutual funds with different fees. Loaded-Up Fund charges a 12b-1 fee of 1.0% and has an expense ratio of 0.75%, while Economy Fund charges a front-end load of 2% and has an expense ratio of 0.25%. Both funds yield a 6% annual return before fees. To determine the future value of a $1,000 investment in each, we will subtract the respective fees from the annual return rate and then apply the adjusted rate to the initial investment to find the potential growth over time.
Sensible Insurance Company collected a premium of $18,000 for a 1-year insurance policy on April 1. What amount should Sensible report as a current liability for Unearned Insurance Revenue at December 31?
Answer:
Current liability for 3 months will be $4500
Explanation:
We have given that
Sensible insurance company has collected a premium of $18000
We have given time = 1 year = 12 months
So the premium collected per month [tex]=\frac{$1800}{12}=$1500[/tex
Now, the company has collected the revenue on April 1 and now it is December 31
So number of months from April to December = 9
So total premium earned in 9 months = 9× $1500 = $13500
So current liability for 3 months will be = 3×$1500 = $4500
One of the least desirable and routine tasks members of your team must do is taking minutes (notes) at team meetings. Proof that this task is disagreeable can be seen in the repeated arguments among team members before every meeting about who should take the minutes. Which of the following would be the most effective way for the team to address this stuation? Sellect 1- Save Answer ts ■ Ask your manager to decide in order to minimize any personal bias among team members. [] Randomly assign a person to bé the official note taker at the beginig of each meeting
Answer:
This question is incomplete, here is the complete question:
One of the least desirable and routine tasks members of your team must do is taking minutes (notes) at team meetings. Proof that this task is disagreeable can be seen in the repeated arguments among team members before every meeting about who should take the minutes. Which of the following would be the most effective way for the team to address this situation? Select: 1
a) Assign note-taking to whichever person enters last at each meeting.
b) Ask your manager to decide in order to minimize any personal bias among team members.
c) Randomly assign a person to be the official note-taker at the beginning of each meeting.
d) Create a rotating assignment so each team member shares note-taking
The answer is d)
Explanation:
Since bias and routine can be a big culprit for team effectiveness, it is up to the manager to control the level of uniformity and objectivity. Teams are all about equality and there is no reason why a particular team member should engage with a monotonous task more frequently than others.
Therefore, a rotating assignment is the way to get every team member engaged with the troublesome task.
Although team member bias would be avoided in the b) case, manager bias would still be present and unavoidable. The a) case is highly unprofessional and is an over-the-top gamification element in team management.
While c) may be a reasonable answer, random assignment can "favor" one person over the other at certain times, as the random algorithm doesn't always have to abide with the uniform distribution.
Having all of that in mind, d) is the best answer possible.
Ivanhoe company purchased machinery with a list price of $88000. They were given a 7% discount by the manufacturer. They paid $400 for shipping and sales tax of $4700. Ivanhoe estimates that the machinery will have a useful life of 10 years and a residual value of $25000. If Ivanhoe uses straight-line depreciation, annual depreciation will be
A) $6194
B) $5684
C) $8694
D) $6152
Answer:
A) $6194
Explanation:
Price before discount = $88,000
discount rate = 7%
Amount of discount = 7% *$88,000 = $6,160
Price after discount = Price before discount - Amount of discount
= $88,000 - $6,160
Price after discount = $81,840 (this is the price included in depreciation)
Items included in total cost of machinery;
Price of machinery after discount = $81,840
Shipping cost = $400
Sales tax = $4,700
Therefore, total cost is therefore = $81,840 + $400 + $4,700 = $86,940
Depreciation per year = (Total cost of the machinery - salvage value) / useful life
= (86,940 - 25,000)/ 10
= 61,940/10
= 6,194
Therefore annual depreciation = $6,194
The short-term scheduling activity called "loading": Select one:
a. assigns workers to jobs.
b. assigns jobs to work centers
c. assigns workers to machines.
d. assigns dates to specific jobs or operations steps.
e. specifies the order in which jobs should be done at each center.
Answer:
b. assigns jobs to work centers
Explanation:
Initially an aggregate plan is prepared and then there is a master plan, accordingly with that master plan divided into smaller sections some short term schedules are prepared.
Under the short term scheduling the term loading is done which refers to assignment of jobs to work centers.
This provides for the segregation of duties and work in between different work centers as in which work center will perform which job.
The company jointly performs all activities in order to meet the aggregate plan, by performing duties of each work center properly the goal can be achieved.
Consider an industry in which chief executive ocers (CEOs) run rms. There are two types of CEOs: exceptinal and average. There is a fixed supply of 100 exceptional CEOs and an unlimited supply of average CEOs. Any individual capable of being a CEO in this industry is willing to work for a salary of $144,000 per year.
The long-run total cost of a rm that hires an exceptional CEO at
this salary is
CE(Q) =(144 + 1/2Q^2 if Q > 0
0 if Q = 0
where Q is annual output. The long-run total cost for a firm that hires an average CEO for $144,000 per year is CA(Q) = 144 + Q^2 of Q > 0 and 0 otherwise. The market demand curve in this market is D(P) = 7, 200 - 100P. Let n be the number of firms run by average CEOs in the industry.
a) What is the minimum e efficient scale for a firm run by an average CEO? What is the minimum level of long-run average cost for such a firm?
b) What is the long-run equilibrium price in this industry, assuming that it consists of firms with both exceptional and average CEOs?
c) At this price, how much output will a firm with an average CEO produce? How much output will a firm with an exceptional CEO produce?
d) At this price, how much output will be demanded?
e) Using your answers to parts (c) and (d), determine how many firms with average CEOs will be in this industry at a long-run equilibrium.
f) Assuming that firms bid against each other for the services of exceptional CEOs, what would you expect their salaries to be in a long-run competitive equilibrium?
Answer
The answer and procedures of the exercise are attached in the following 3 images.
Explanation
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Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with two years to maturity has a coupon rate of 6%. The yield to maturity (YTM) of the bond is 9.90%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note:
The current value of the U.S. Treasury note is calculated by discounting its semiannual interest payments and face value by its yield to maturity. The value of treasury note is $30,000 every six months.
Explanation:The value of a $1,000,000 par value, semiannual coupon U.S. Treasury note with two years to maturity and a coupon rate of 6% can be calculated by discounting its future cash flows by its yield to maturity (YTM) of 9.90%. The Treasury note will pay semiannual interest payments based on the coupon rate, which in this case is $1,000,000 * 6% / 2 = $30,000 every six months.
To find the present value (PV) of these payments, we need to discount each payment by the YTM using the formula for PV of an annuity. Additionally, the $1,000,000 face value due at maturity must be discounted back to the present value as well. By doing this, we will find the current market value of the Treasury note.
To clarify the effect of interest rates on the bond's price: When interest rates rise, bonds issued at lower interest rates will sell for less than face value, while bonds issued at higher rates will sell more than face value.
This is because investors demand a higher yield for taking on the risk of a bond with lower relative interest payments. Conversely, when interest rates fall, bonds with higher coupon rates become more attractive because they offer higher interest payments than newly issued bonds.
In each of the following scenarios, explain and categorize the cost of inflation.a) Because inflation has risen, the J.Crew clothing company decides to issue a new catalog monthly rather than quarterly.b) Grandpa buys an annuity for $100,000 from an insurance company, which promises to pay him $10,000 a year for the rest of his life. After buying it, he is surprised that high inflation triples the price level over the next few years.c) Maria lives in an economy with hyperinflation. Each day after being paid, she runs to the store as quickly as possible so she can spend her money before it loses value.d) Gita lives in an economy with an inflation rate of 10%. Over the past year, she earned a return of $50,000 on her million-dollar portfolio of stocks and bonds. Because her tax rate is 20%, she paid $10,000 to the government.e) Your father tells you that when he was your age, he worked for only $4 an hour. He suggests that you are lucky to have a job that pays $9 an hour.
Answer:
Consider the following explanation
Explanation:
a) J. Crew is issuing its catalogs monthly in response to inflation. This will incur cost and it is known as 'Menu Cost'.
b) Grandpa has bought annuity which has promised $10,000 a year for the rest of his life. However, higher than expected inflation means grandpa has lesser purchasing power. This is loss of purchasing power and also 'redistribution cost'. In higher inflation borrower tends to get benefit. Here insurance company is at the gain.
c) Maria is witnessing loss of purchasing power because of hyper inflation. In such scenario, cost keeps rising and product's price could be higher a few hours later. This was witnessed in Germany as well as in Zimbabwe. People run to the stores as soon as they get cash or salary. It is known as 'shoe leather cost'. People make frequent trips to banks or stores but do not keep cash in fear of losing value.
d) Gita actually earned only 5% on her portfolio but as her income is in taxable bracket so she has to pay 20% tax. Her income from portfolio not even compensated inflation. This is a redistribution cost and also known as fiscal drag. More people fall into bracket because higher nominal income but real income is neglected which makes people worse off.
e) Father thinks that son is earning far more than him but inflation over the period of time erodes purchasing power and it could be possible that current income might be lower, same or higher comparing to inflation data. However, if it is lower then it is obviously loss of purchasing power.
Final answer:
The provided scenarios illustrate various impacts of inflation, including increased operational costs for businesses, erosion of purchasing power, particularly for fixed-income investments, rapid loss of money value in hyperinflation, and the nuanced effects on nominal wages and investment returns.
Explanation:
In understanding the scenarios provided, we see different manifestations of the cost of inflation. Inflation impacts the economy and individuals in various ways, reflected in the following examples:
J.Crew's decision to issue a new catalog monthly rather than quarterly is an example of a business absorbing higher operational costs due to inflation. This scenario highlights the cost of menu changes, where businesses must update and communicate price changes more frequently due to rising inflation.
Grandpa's annuity losing purchasing power illustrates the inflation risk to fixed-income investors. Inflation erodes the real value of money over time, leaving recipients of fixed payments, like annuities, at a disadvantage as the cost of living increases.
Maria's rush to spend her money in a hyperinflation scenario reflects the loss of purchasing power. Hyperinflation causes money to lose value rapidly, compelling individuals to spend it quickly before prices rise further.
Gita's investment earnings show how inflation can impact investment returns. Even with a 5% return on her portfolio, after factoring in a 10% inflation rate and 20% tax, the real, post-tax return is negative, illustrating the inflation-tax interaction.
The comparison of wage rates over time, like the one between your father's and your wage, showcases inflation's impact on nominal wages. Even if nominal wages increase, the important measure is the purchasing power of these wages, which can be eroded by inflation.
These scenarios collectively demonstrate how inflation affects both the economy and individual financial situations in different contexts.
Divine Apparel has 2,600 shares of common stock outstanding. On October 1, the company declares a $0.25 per share dividend to stockholders of record on October 15. The dividend is paid on October 31. Record all transactions on the appropriate dates for cash dividends.
Answer:
Explanation:
The journal entries are shown below:
On October 1
Dividend Declared A/c Dr $650 (2,600 shares × $0.25)
To Dividend payable A/c $650
(Being dividend is declared)
On October 15
No entry is required
On October 31
Dividend payable A/c Dr $650
To Cash A/c $650
(Being dividend is paid for cash)
The company Divine Apparel declares a dividend of $0.25 on October 1, subsequently on October 31, the company pays out these dividends to all registered shareholders as of October 15. The total dividend payout would be $650.
Explanation:The actions you described pertain to what is often referred to in the world of stocks and finance as dividend declaration and payment. On October 1, Divine Apparel declares a dividend of $0.25. This declaration doesn't result in a financial transaction just yet, but rather it promises a future cash outflow to shareholders.
To calculate this, we multiply the number of shares - 2,600 shares in this case - by the declared dividend of $0.25. This calculation would result in a total dividend of $650.
October 15 marks the 'record date', this is the date when the company looks at its records to see who the shareholders are. An investor must be listed as a holder of record to ensure the right of a dividend payout. It's important to note that there are no accounting entries to be made on this date, this is purely an administrative date.
Finally, October 31 is the 'payment date'. Every shareholder of record as of October 15 will receive the stipulated dividend. In this case, Divine Apparel pays out $650 in total dividends to the shareholders it had registered on October 15.
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A 4-year project has an annual operating cash flow of $53,500. At the beginning of the project, $4,450 in net working capital was required, which will be recovered at the end of the project. The firm also spent $22,800 on equipment to start the project. This equipment will have a book value of $4,820 at the end of the project, but can be sold for $5,790. The tax rate is 35 percent. What is the Year 4 cash flow?
A. $61,714
B. $54,501
C. $20,633
D. $64,080
E. $63,401
Answer:
E. $63,401
Explanation:
gain on disposal = salvage value of plant - book value on date of sale
= $5,790 - $4,820
= $970
tax on disposal = $970*35%
= $339.50
after tax salvage value = $5,790 - $339.50
= $5,450.50
total cash flow in 4 years
= annual operating cash flow + net working capital + after tax salvage value
= $53,500 + $4,450 + $5,450.50
= $63,401
Therefore, The Year 4 cash flow is $63,401.
Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States?
Check all that apply.
A. The variety of goods available to consumers Funds spent by city governments to renovate their buildings
B. The loss of enjoyment people incur when scenic land is converted to commercial use
C. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
D. When a U.S. company purchases and imports automotive parts from Canada to use to build cars within the United States, this purchase increases the component of GDP while also net exports by the same amount.
E. Therefore, the purchase of automotive parts from Canada causes in US GDP.
Answer
The answer and procedures of the exercise are attached in the image below.
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.
On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 77,000 shares of $50 par common stock at $53, and on February 27, it issued for cash 17,040 shares of preferred stock, $10 par at $11. Required: a. Journalize the entries for January 22 and February 27. Refer to the Chart of Accounts for exact wording of account titles. b. What is the total amount invested (total paid-in capital) by all stockholders as of February 27?
Answer:
A) Journal Entries are in the explanation section
B) Total amount invested by stockholders - $4,268,440
Explanation:
Requirement - A)
Date Account Titles & Explanation Debit ($) Credit ($)
For common stock -
Jan-22 Cash (77,000 stocks*$53) 4,081,000
Common stock
($50 par value, 77,000 shares) 3,850,000
Paid-in Capital in excess of par value
($53 - $50 = $3; 77,000 shares) 231,000
As the market value of a stock price is more than par value, there will be additional paid-in capital of $3 per stock. The above journal is made to record the issuance of common stock.
For preferred stock -
Feb-27 Cash (17,040 stocks*$11) 187,440
Preferred stock
($10 par value, 17,040 shares) 170,400
Paid-in Capital in excess of par value - Preferred stock
($11 - $10 = $1; 17,040 shares) 17,040
As the market value of the preferred stock is more than par value, there will be additional paid-in capital of $1 per stock. The above journal is made to record the issuance of preferred stock.
Requirement - B)
Particulars Amount ($)
Common Stock ($50 x 77,000) 3,850,000
Paid-in Capital in excess of par value-Common Stock 231,000
[($53-$50)*77,000]
Preferred stock ($10*17,040) 170,400
Paid-in Capital in excess of par value - Preferred stock 17,040
[($11 - $10)*17,040 shares]
Total invested amount $4,268,440
Therefore, the shareholders invested the par value as well as additional value in order to continue the company's operation.
Sunland Company has 10,000 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2022. No dividends were declared in 2020 or 2021. If Sunland wants to pay $395,000 of dividends in 2022, what amount of dividends will common stockholders receive?
Answer:
The amount of dividends received by common stockholders is $155,000
Explanation:
The dividends to preferred shareholders is computed as:
Dividends to preferred shareholders = Shares × Price per share × 8% × Number of years
where
Shares are 10,000
Price per share is $100
Number of years is 3 (2020,2021 and 2022)
Putting the values above:
= 10,000 × $100 × 8% × 3
= $80,000 × 3
= $240,000
Now,
The amount of dividends received by common stockholders is computed as:
Amount = Dividends to be paid in year 2022 -Dividends to preferred shareholders
$395,000 - $240,000
= $155,000
The payment given by a corporation to its shareholders who are entitled to it is known as dividends. The board of directors (BODs) of a firm decides on dividend quantities and distributions.
[tex]\text{The amount of dividends received by common stockholders is} =[/tex] $[tex]155,000[/tex]
[tex]\text{The dividends to preferred shareholders is computed as:}[/tex]
[tex]\text{Dividends to preferred shareholders = Shares}[/tex] × [tex]\text{Price per share}[/tex] × [tex]8[/tex]% × [tex]\text{Number of years}[/tex]
[tex]\text{Where,}[/tex]
[tex]\text{Shares} = 10,000[/tex]
[tex]\text{Price per share} = $100[/tex]
[tex]\text{Number of years} = 3[/tex]
[tex]\text{ Substituting the values to the formula:}[/tex]
[tex]= 10,000[/tex] × [tex]100[/tex] × [tex]8[/tex]%
[tex]= 80,000[/tex] × [tex]3[/tex]
[tex]= 240,000[/tex]
[tex]\text{Now,}\\\\\text{The amount of dividends received by common stockholders is computed as:}[/tex]
[tex]\text{Amount} = 395,000 - 240,000\\\\\text{Amount = 155,000}[/tex]
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XYZ Company is in the process of issuing bonds. The bonds have a stated interest rate of 4%, which is 2% below the current market rate. What effect will the two interest rates have on the bond issue price?
A. The issue price will be above the bond's face value.
B. The issue price will equal the bond's face value.
C. The issue price will be below the bond's face value.
Answer:
C. The issue price will be below the bond's face value
Explanation:
Issuing new bonds with a stated interest rate of 2% below the market rate means that the issuing company will pay investors(bondholders) a coupon amount that is less than what the market is currently offering. Due to this reason, investors will not be willing to pay a higher price to receive lower coupon payments for the life of the bond. Therefore, the issuing price will be below the bond's face value.
The equation represents the savings and investment identity for the country of Moonzealand (all values are in billions of DolurMoonZees). Private savings+Inflow of foreign savings=Private investment+Government deficit 85.0+45.0=130.0+0.0a.What is the total financial capital demanded?b.What is the total quantity supplied of financial capital?
Answer:
$130 billions, $130 billions
Explanation:
We know that
Private savings + Inflow of foreign savings = Private investment + Government deficit
The right hand side reflect the total financial capital demanded and the left hand side reflect the total quantity supplied of financial capital
So, in the given case
Total financial capital demanded = $130 billions
And, the Total quantity supplied of financial capital would be
= $85 billion + $45 billions
= $130 billions
Hence, the demand and supply are equal
Hello Please help me with the following
Johnson Corporation began 2016 with inventory of 17,000 units of its only product. The units cost $9 each. The company uses a periodic inventory system and the LIFO cost method. The following transactions occurred during 2016:
a.
Purchased 85,000 additional units at a cost of $10 per unit. Terms of the purchases were 2/10, n/30, and 100% of the purchases were paid for within the 10-day discount period. The company uses the gross method to record purchase discounts. The merchandise was purchased f.o.b. shipping point and freight charges of $0.40 per unit were paid by Johnson.
Answer:
You didn´t post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.
Explanation:
Determination of the cost of the ending inventory (LIFO cost method):
Beginning inventory (17,000 x$9) $153,000
Add: Purchases
Purchases (85,000 x$10) $850,000
Less: Returns (1,700 x $10.40) -$17,680
Less: Discount [2% of $10 x (85,000 -1,700)] -$16,660
Add: Freight-in (85,000 x $0.40) $34,000 $849,660
Cost of goods available for sale (17,000 + 83,300) $1,002,660
Less: Ending inventory $186,660
Cost of Goods Sold $816,000
Note: The 5,700 units purchased on December 28, 2016 were not included as the shipment (FOB destination) did not reach the warehouse before December 31, 2016.
Determination of the ending inventory:
Date of purchase units unit cost Total Cost
Beginning inventory 17,000 $9 $153,000
2016 Purchases 3,300 $10.20 $33,660
Total 20,300 --- $186,660
Note:
Inventory available for sale 17,000 + 83,300 =100,300
Sales for the year 80,000 units
Ending inventory in units 20,300
Unit cost of purchases is determined as follows,
$10 less 2% discount + freight-in charges of $0.40
98% of $10 + $0.40 = $9.80 + $0.40 =$10.20
Requirement 2
Sales (80,000 x $18) $1,440,000
Less: Cost of goods sold $816,000
Gross profit $624,000
Less: Other operating expenses $164,000
Income before income taxes $460,000
Hence, income before income taxes for 2016 is $460,000
On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,500,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows: Book Value Fair Value Current assets $ 6,500,000 $ 8,000,000 Property, plant, and equipment 11,500,000 14,500,000 Other assets 1,050,000 1,550,000 Current liabilities 4,500,000 4,500,000 Long-term liabilities 6,500,000 6,000,000
Answer:
Amount paid for goodwill = $3950000
Explanation:
given data
outstanding common stock = $17,500,000
book values fair values
Current assets $6,500,000 $8,000,000
Property plant and equipment 11,500,000 14,500,000
Other assets 1,050,000 1,550,000
Current liabilities 4,500,000 4,500,000
Long-term liabilities 6,500,000 6,000,000
to find out
Calculate the amount paid for goodwill
solution
we get here first Net fair value of assets acquired that is here
Net fair value of assets = Current assets + Property plant and equipment +Other assets - Current liabilities - Long-term liabilities .................1
put here value we get
Net fair value of assets = 8,000,000 + 14,500,000 + 1,550,000 - 4,500,000 - 6,000,000
Net fair value of assets = 13550000
and
Amount paid for goodwill here
Amount paid for goodwill = outstanding common stock - Net fair value of assets .......................2
put here value
Amount paid for goodwill = $17,500,000 - 13550000
Amount paid for goodwill = $3950000
The Goodwill from Wolfson Corporation's acquisition of Barney Corporation is calculated to be $4,000,000. This represents the excess of the purchase price over the fair value of the net identifiable assets and liabilities acquired.
Explanation:When Wolfson Corporation acquired Barney Corporation, a calculation called Goodwill must be performed to account for the difference between the purchase price and net fair value of the identifiable assets and liabilities acquired. The fair values of Barney's assets and liabilities become the basis for Wolfson's balance sheet entries relative to the acquisition.
Goodwill can be calculated as follows:
purchase price: $17,500,000
Fair value of assets acquired: $8,000,000 (current assets) + $14,500,000 (property, plant, and equipment) + $1,550,000 (other assets) = $24,050,000
Fair value of liabilities assumed: $4,500,000 (current liabilities) + $6,000,000 (long-term liabilities) = $10,500,000
Goodwill = Purchase price - (Fair value of assets acquired - Fair value of liabilities assumed) = $17,500,000 - ( $24,050,000 - $10,500,000) = $4,000,000
Thus, Wolfson Corporation would record a Goodwill of $4,000,000 in its balance sheet related to the acquisition of Barney Corporation.
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When Apple first introduced its iPhone in the U.S. market, it priced it at $600. Several months later, Apple reduced the price to $400. And several months after that, it reduced the price again to $200.
What pricing policy was Apple using in its initial price strategy?
A. introductory price
B. skimming price
C. cash discount price
D. penetration price
E. everyday low price
Answer:
B. skimming price
Explanation:
Skimming price -
It is the pricing method , which involves the company uses very high tag for a particular time as soon as it is launched in the market and as it time passes buy , the price of the particular product gets reduced , this process is known as skimming price .
This strategy helps to the product to stay in the market for long run , as time passes , the price of the particular commodity reduces and people can still buy it at a much lower price , in age where new products get launched daily .
At the beginning of his current tax year, David invests $12,000 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $700 in interest ($350 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 5 percent. (Round your intermediate calculations to the nearest whole dollar amount.) How much interest income will he report this year if he elects to amortize the bond premium?
Answer:
$599.
Explanation:
Please see attachment .
The interest income will he report this year if he elects to amortize the bond premium $599
Briefing:-If David decides to amortize the $2,000 bond premium, he will do so semiannually using the constant yield approach, which is analogous to the effective interest method used to amortize bond premium under GAAP. In the end, he will declare $599 in bond interest income.
What is a discount or premium on bonds?A premium bond has a coupon rate that is greater than the going rate for the maturity and credit grade of the bond. In contrast, a discount bond has a coupon rate that is lower than the current rate of interest for bonds of that maturity and credit rating.
What do you earn from interest?income from specific bank accounts or from lending money to others is known as interest income. Income from interest that must be taxed is known as taxable interest income. All interest income, unless specifically excluded, is taxed.
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You own a portfolio of two stocks, A and B. Stock A is valued at $6,500 and has an expected return of 11.2 percent. Stock B has an expected return of 8.1 percent. What is the expected return on the portfolio if the portfolio value is $9,500?
Answer:
he expected return on the portfolio =10.22%
Explanation:
You obviously want to know the expected return of your portfolio. Its projected performance and the overall profit or loss. Anticipated yield is just that it is not guaranteed, as it is based on historic returns and used to generate prospects, but it is not a prediction. Please refer to the formula for “The expected return on the portfolio”
The expected return on the portfolio = 11.2%*6500/9500 + 8.1 %*( 9500-6500)/9500 = 10.22%
An employee starts the execution of an OLAP application that uses a lot of computational resources while executing. Normally, this application runs overnight when resources are not heavily used, but this time it is executed during prime work time. As a result, order-entry transactions are unable to be completed. This type of human error is termed __________.
(A) spoofing
(B) spamming
(C) spoofing
(D) denial of service
(E) hacking
Answer:
(D) denial of service
Explanation:
Denial of service -
It is a type of cyber - attack where offender tries to make the source of network or the machine unavailable for the user via disturbing the service of the of the internet .
The task of denial of service is done by flooding the machine or the source with many requests in a way to overload the system .
Hence , from the question , the example shown in the question is about denial of service .
A company purchased $10,100 of merchandise on June 15 with terms of 2/10, n/45, and FOB shipping point. The freight charge, $550, was added to the invoice amount. On June 20, it returned $880 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:
Answer:
$9,586
Explanation:
The computation of the cash paid is shown below:
= Merchandise amount - returned goods - discount + freight charges
= $10,100 - $880 - $184.40 + $550
= $9,586
The discount = (Merchandise amount - returned goods) × discount rate
= ($10,100 - $880) × 2%
= $184.40
Simply we deduct the returned goods and discount and added the freight charges to the merchandise amount so that the correct amount can come.
Within the marketing concept, a service orientation is an integrated organizational effort that revolves around.
Multiple Choice
O finding out what consumers want and providing it for them.
O making goods and services that will earn the most profit.
O training employees to sell services in unique ways.
O making sure customers are satisfied.
In marketing, service orientation is about focusing entirely on delivering customer satisfaction, which directly aligns with finding out what consumers want and providing it for them.
Explanation:In the context of marketing, service orientation means focusing on creating customer satisfaction. This notion aligns with the first option from the multiple choice question: finding out what consumers want and providing it for them. This lens of operation seeks to enhance the customer experience by discerning their needs and fulfilling them to retain loyalty. Profit, unique sales techniques, or how goods/services are made do not take priority in service orientation, but are, instead, products of successfully creating a satisfied and loyal customer base.
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A service orientation is an integrated effort within a marketing concept that revolves around ensuring customer satisfaction, meeting and exceeding customers' needs and expectations.
Explanation:In the context of the marketing concept, a service orientation is an intrinsic effort by an organization to focus primarily on customer satisfaction. This implies that the correct option is 'making sure customers are satisfied'. A service orientation strives to understand and meet customer needs, placing them at the core of all business decisions. It is not strictly about devising ingenuous ways to sell services or merely creating profitable products but rather delivering services that meet and exceed customer expectations to foster satisfaction and loyalty.
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Suppose you and a classmate are playing a game where your classmate proposes a division of $1.00. Then, you either accept or reject the offer. If you accept, then you and the classmate get the proposed portions of the dollar. However, if you reject theoffer, then you and your classmate receive nothing.
Suppose your classmate offers you $0.12
What is your optimal strategy?
Your optimal strategy is to _________ the proposed division.
A. Accept
B. Reject
Now suppose instead that you propose the division of the dollar. Your classmate will then accept or reject your division. If the classmate accepts, then you each receive the portion of the dollar as you have proposed. However, if your classmate rejects, then you both get nothing.
Your optimal strategy is to offer your classmate $_______. (Enter a numeric response to two decimal places)
Answer:
Your optimal strategy is to accept the proposed division.Your optimal strategy is to offer your classmate $ 0.49.Explanation:
An optimarl strategy is one that maximizes a player’s expected payoff. In this case this is a cooperative game.