The student’s question is related to the recording of adjusting entries for supplies, prepaid services, and unpaid salaries. The adjusting entries would record expenses or recognize revenue if services were provided and increase liabilities for unpaid salaries.
The question involves the recording of adjusting entries at the end of the month for a business's accounting records. The adjustments pertain to expired rent, remaining supplies, advanced payment for services, and unpaid salaries.
Adjusting Entries on January 31
Expired Rent: Rent expense should be recorded in the period which it relates, but since the question doesn't mention the rent amount, we can't record it.
Supplies: If the beginning balance was higher than $4,100, record the difference as a Supplies Expense and decrease Supplies. Without the beginning balance, we only note the current Supplies balance.
Advanced Payment for Services: $4,175 received in advance is recognized as unearned revenue at the time of payment. Upon providing the services, this unearned revenue is adjusted to earned revenue. The entry would be a debit to Unearned Revenue and a credit to Service Revenue for $4,175.
Unpaid Salaries: Salaries payable will increase by $4,890. The entry is a debit to Salary Expense and a credit to Salaries Payable for $4,890.
Customer management in international contracts includes all of the following except
the customer's internal organizational structure.
the vendor's organizational structure.
governmental organizational structure.
how the customer's and vendor's two structures will interact.
Answer: governmental organizational structure.
Explanation: When two parties with different nationality made a contract regarding taking care of the seller and customer relationship then such contract will be termed as international customer management contract.
Such contracts are usually written in formal manner and includes obligations to be performed and rights of both parties in case of any default. The government organizational culture affects it indirectly but is not a part of it.
Hence, from the above we can conclude that the correct option is c.
Answer:
governmental organizational structure.
If firms in a competitive market are not identical, then an increase in cost for all firms will A. push the most inefficient firms out of the market. B. Need more information. C. shift marginal cost to the right. D. push the most efficient firms out of the market.
Answer:
A. push the most inefficient firms out of the market
Explanation:
The most effecient firms will offer their product at better price than the inefficient firms. Therefore they will be push-out from the market. That's because in a competitive market firms cannot set the price. Their profit are related to his cost and quantity produced:
[tex]Profit = Sales\times Q - C\times Q[/tex]
So a perfectly competitive and efficient firm will be able to sold more quantity than inefficient firm as their average cost will be lower. Therefore, making more profit at better price pushing the less efficient firm out.
Also, an increase in cost shift the marginal cost to the left, not to the right.
A share of stock with a beta of 0.76 now sells for $51. Investors expect the stock to pay a year-end dividend of $3. The T-bill rate is 3%, and the market risk premium is 6%. If the stock is perceived to be fairly priced today, what must be investors’ expectation of the price of the stock at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
This question is about calculating expected year-end stock price based on certain financial indicators. The Capital Asset Pricing Model (CAPM) formula is used to derive the expected return of the stock. Once this is calculated, it is used to solve for the expected stock price at the end of the year.
Explanation:The subject of this question relates to stock pricing and the expected returns by investors based on certain known financial indicators such as the beta of a stock, the current or purchase price, the expected year-end dividend, the risk-free rate (T-bill rate), and the market risk premium.
To calculate investor's expectation of the stock price at the end of the year, we need to use the Capital Asset Pricing Model (CAPM). Here is the formula: Expected Return = Risk-free rate + Beta*(Market Return - Risk-free rate). First, calculate the expected return: Expected Return = 3% + 0.76*(6% - 3%) = 5.28%. Then, find out the total expected return including dividends: Total Expected Return = (Expected price end of year - Current price + expected annual Dividend) / Current price. Given that the Total Expected Return is equal to the expected return calculated using CAPM, you can solve for the Expected price at end of year.
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Ana’s team was reorganized to be cross-functional, and each member is now expected to collaborate on every step of the process for updating her company’s website, including generating content, encouraging traffic through SEO optimization, and tracking the website’s hits.
(A) Increasingly diverse workforce
(B) Self-directed work groups and virtual teams
(C) New work environments
Answer:
Self-directed work groups and virtual teams
Explanation:
The groups are usually people with diverse skills that work together into a project without the classic managerial structure since the team is capable enough to understand when and how to generate value.
Final answer:
Ana's team transition to a cross-functional, team-based approach is a reflection of modern organizational trends where diverse skills and collaboration are emphasized to adapt to rapid changes in technology and work dynamics.
Explanation:
Team-Based Approach in Modern Work Environments
The question describes a scenario where Ana's team has been reorganized into a cross-functional team. It outlines a shift in the company's organizational structure that now requires the team members to collaborate on all processes related to updating the company's website, indicating a move towards a more integrated and team-based approach. This modern work environment demands diversified skills and collective efforts in tasks such as content generation, SEO optimization, and tracking website performance.
The shift towards a team-based organization is a response to the changing dynamics of the workplace influenced by rapid advancements in technology, the need for a diverse skill set due to complex systems, and the drive for higher productivity. This business strategy has led organizations to abandon the traditional vertical hierarchy in favor of creating teams capable of synergistic collaboration. However, such team structures also present new challenges in management, particularly in terms of member engagement and the evaluation of virtual team performance.
Moreover, cross-functional teams like Ana's are empowered to manage various aspects of a project, reflecting a shift from individual to collective accountability. Effective communication, especially in virtual settings, and the empowerment of teams have been identified as critical factors for the success of this new paradigm.
Alpha has $40,000 of capital per worker, while Beta has $5,000 of capital per worker. According to the principle of diminishing returns to capital, an additional unit of capital will increase output ____ in Alpha compared to Beta, holding other factors constant.
A. more
B. less
C. not at all
D. by the same amount
"Students in a Science lab are working in groups to build both a small and a large electrical circuit. A large circuit uses 4 resistors and 2 capacitors, and a small circuit using 3 resistors and 1 capacitor. There are 100 resistors and 70 capacitors available, and each group must have enough resistors and capacitors to make one large and one small circuit. What is the maximum number of groups that could work on this lab project?"
To find the number of groups that can work on the lab project, calculate how many sets of circuit components can be made from 100 resistors and 70 capacitors. Its found that 14 sets can be made from resistors and 23 sets from capacitors. But since both are needed per group, the maximum number of groups is limited by resistors, giving 14 groups.
Explanation:In order to find the maximum number of groups that can work on the lab project, we need to calculate how many complete sets of 7 resistors (4 for the large circuit and 3 for the small circuit) and 3 capacitors (2 for the large circuit and 1 for the small circuit) can be made using the available resources - 100 resistors and 70 capacitors.
You divide the total number of each component by the number required per set. You should find that 100 resistors divided by 7 resistors/set gives about 14 sets (since you can't have a fraction of a set) and 70 capacitors divided by 3 capacitors/set gives about 23 sets.
This means that while there are enough capacitors for 23 groups, there are only enough resistors for 14 groups. Since each group needs resources for both a large and a small circuit, the limiting factor here is the resistors. Therefore, the maximum number of groups that can work on this lab is 14.
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We have a separate country known as Lezette-ville. The GDP per capita in 2010 was $18,000 in 2010 dollars. While in 2018, the GDP per capita was $20,725 in 2018 dollars. The CPI in 2010 is 218 while the CPI in 2018 is 251. How would you characterize the growth in GDP per capita from 2010 to 2018?
Answer:
It will be a nominal increase. Not a real increase in the purchase power of the persons
Explanation:
We will check for the effect of inflation:
18,000 x 251/218 = 20.724,77
18,000 dollars in 2010 have aprroximate the same purchase power of 20,725 dollars in 2018
Therefore, there was no real wroth in the GDP per capita from this time period.
It was all nominal increase, there was no improve in the purchase power of the consumer.
Which of the following is an ad hominem fallacy? Select one: a. Other brands of toothpaste might promise you "dazzling white teeth," but those corporations are deceiving you. Only Lima Bean Green Toothpaste will give you the smile you desire. b. Join the millions of trendy tooth brushers who have discovered the whitening, brightening, cavity fighting power of new and improved Lima Bean Green Toothpaste! c. The time the two of you spend together is perfect because of your dazzling white teeth. d. Try it for yourself, and you will see the difference.
Answer:
A.
Explanation:
Ad hominem is a logical fallacy that involves a personal attack. An argument based on the perceived failings of an adversary rather than on the merits of the case.
The only argument that is attacking the adversary is the option A, where it is implied that other companies are deceiving you. That is not relevant to how Lima Bean Green Toothpaste can give you a better smile. So that's why it's defined as a ad hominem fallacy.
Assume a supply equation:
Q = 0.1p - 0.02pi + 0.01N + 0.01T - 0.1w
where:
p = own price
pi = price of an input = $50
Q = quantity supplied (thousands of units)
N = number of firms = 100
T = index of technology = 300
w = wage rate = $30
The quantity supplied asa function as the price can be written: ____
If the price of the good is $16, what would be the quantity supplied? (in thousands units)
Answer:
The quantity supplied as a function of the price is:
Q= 0.1p-0.02(50)+0.01(100)+0.01(300)-0.1(30)
Q= 0.1p-1+1+3-3
Q=0.1 p
If the price of the good is $16, the quantity supplied is:
Q=0.1 (16)
Q= 1.6 (thousands of units)
Economic questions always deal with:
A. financial matters.
B. political matters.
C. insufficient resources.
D. choice in the face of limited resources.
Answer:
D. choice in the face of limited resources.
Explanation:
Economic question always deal with the choice in the face of limited resources, since resources are limited and humans needs are unlimited. Resources are always limited, and economics deals with the choice to administrate the resources the best way possible.
When a person decides to assign a resource to a specific use, he is discarding its use for another purpose. This is known as the opportunity cost.
Your credit card company charges a monthly compound interest rate of 2.5%. If you have an outstanding balance (money that you owe) of $2500, how much would it cost you to pay off this debt 2 years later? (Assuming no additional charges on the credit card.) You can round the answer to the nearest integer.
Answer:
FV= $4521.81
Explanation:
Giving the following information:
Your credit card company charges a monthly compound interest rate of 2.5%.
Debt= $2500
n= 24 (monthly)
We need to use the following formula to calculate the final value of this debt.
FV= PV*(1+i)^n
PV= present value
FV= 2500*(1+0.025)^24
FV= $4521.81
Carbondale Casting produces cast bronze valves on a 10-person assembly line. On a recent day, 160 valves were produced during an 8-hour shift. a) Calculate the labor productivity of the line. b ) John Goodale, the manager at Carbondale, changed the layout and was able to increase production to 180 units per 8-hour shift. What is the new labor productivity per labor-hour? c) What is the percentage of productivity increase?
Answer:
(a) 2
(b) 2.25
(c) 12.5%
Explanation:
To solve this question we need to remember that
[tex]Total \, Productivity = \frac{Total\,Ouput}{Total \, Man \, Hours}[/tex]
(a) 10 persons produce 160 valves in 8 hours, this implies a productivity of 2=160/(8x10)
(b) 2.25= 180/(8x10)
(c) Percentage change is given by (2.25-2)/2=.125
If ideal weather conditions result in a bumper crop of Florida oranges, then the a. supply of oranges will increase and the price of oranges will fall. b. supply of oranges will decrease and the price of oranges will rise. c. demand curve for oranges will decrease and the price of oranges will fall. d. demand curve for oranges will increase and the price of oranges will rise.
Answer:
a. supply of oranges will increase and the price of oranges will fall.
Explanation:
The crop will have impact on the producer of oranges, their field will have a better yields so, more orange supply. The supplier fixed cost will be distribute among more orange thus, her average cost will be lower.
If the cost is lower, then the price will decrease as well. This will generate an equilibrium cost at more quantity with a lower price.
Answer:
a. supply of oranges will increase and the price of oranges will fall.
Explanation:
equirement 1. Post the journal entries to the T-accounts. Use the dates as posting references in the T-accounts. We will post to the accounts one transaction at a time. Begin by posting the event from the 2nd. Received $ 14 comma 000 contribution from Brett Lawrence, owner, in exchange for capital. (We will post to the accounts one transaction at a time. Post only the transaction from July 2 in this step.)
Final answer:
To post the journal entry for the transaction on July 2, where the owner contributed $14,000, debit the cash account and credit the owner's equity account in the T-accounts.
Explanation:
The student is asking how to post a journal entry to a T-account for a business transaction that occurred on July 2, wherein Brett Lawrence contributed $14,000 to the business in exchange for capital. This transaction will impact the balance sheet by increasing both the business's assets and owner's equity. To post the transaction on the T-account, you would debit the Cash account (asset) and credit the Brett Lawrence, Capital account (owner's equity) to record the owner’s contribution.
Journal Entry:
Debit: Cash $14,000 (to record the increase in assets due to the owner's contribution)
Credit: Brett Lawrence, Capital $14,000 (to record the increase in owner's equity)
After this transaction, the business’s T-account would show a balance of $14,000 in the Cash account on the assets side and $14,000 in the Brett Lawrence, Capital account on the liabilities and equity side, reflecting the owner’s equity.
1) Decide whether you would expect relationship between the following pairs of dependent and independent variables (respectively) to be positive, negative, or ambiguous. Explain your reasoning. a. Aggregate net investment in the United States in a given year and GDP in that year. b. The number of acres of wheat planted in a season and the price of wheat at the beginning of that season. c. Aggregate net investment and the real rate of interest in the same year and country. d. The quantity of canned tuna demanded and the real price of a can of tuna. e. The growth rate of GDP in a year and the average hair length in that year.
Answer:
(a) GDP is a dependent variable and aggregate net investment is a independent variable. There is a positive relationship between the variables which means that an increase in the net investment will lead to increase GDP.
(b) There is a negative relationship between the variables which means that as the supply of wheat increases, as a result price of wheat falls. So, as the number of acres of wheat planted in a season increases as a result price of wheat decline.
(c) There is a negative relationship between the variables which means that an increase in the interest rate in an economy will lead to increase the cost of borrowings and hence, net investment falls.
(d) There is a negative relationship between the variables because of the law of demand. It states that an increase in the price of a commodity will lead to reduce the quantity demanded for that commodity.
(e) There is no relationship between these variables. Both the variables are totally uncorrelated.
As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report: JAN FEB MAR APR Units produced 2,175 1,675 2,675 2,875 Hours per machine 307 186 382 307 Number of machines 4 6 5 6 Find the average of the monthly productivity figures (units per machine hour). (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
The average of the monthly productivity figure is 1.51 units per machine hour
Explanation:
For computing the average of the monthly productivity, first we have to compute the total hours, and then units per machine hours
So, the formula to compute the total hours equals to
= Hours per machine × Number of machines
For JAN = 307 × 4 = 1,228 hours
For FEB = 186 × 6 = 1,116 hours
For MAR = 382 × 5 = 1,910 hours
For APR = 307 × 6 = 1,842 hours
Now, the units per machine hours equals to
= Units produced ÷ total hours
For JAN = 2,175 units ÷ 1,228 hours = 1.77
For FEB = 2,175 units ÷ 1,116 hours = 1.94
For MAR = 2,175 units ÷ 1,910 hours = 1.13
For APR = 2,175 units ÷ 1,842 hours = 1.18
Now, the average of the monthly productivity equals to
= ( 1.77 + 1.94 + 1.13 + 1.18) ÷ 4
= 1.51 units per machine hour
The average monthly productivity, measured in units per machine per hour, is calculated by dividing the total units produced each month by the number of machines and by the number of hours per machine. Then the overall average is calculated from these monthly averages. The average productivity based on the provided data is 1.56 units/machine/hour.
Explanation:The average monthly productivity, measured in units per machines per hour, can be found by taking total production for each month, dividing by number of machines, then dividing by hours per machine. This gives the productivity figure in units per machine per hour for each month. Then you can calculate the average of these figures.
Let's compute productivity figures for each month:
January: 2175 units / 4 machines / 307 hours = 1.77 units/machine/hourFebruary: 1675 units / 6 machines / 186 hours = 1.51 units/machine/hourMarch: 2675 units / 5 machines / 382 hours = 1.40 units/machine/hourApril: 2875 units / 6 machines / 307 hours = 1.56 units/machine/hourNow we compute the average of these monthly productivity figures: (1.77 + 1.51 + 1.40 + 1.56) / 4 = 1.56 units/machine/hour (rounded to 2 decimal places).
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You’ve decided to buy a house that is valued at $1 million. You have $100,000 to use as a down payment on the house, and want to take out a mortgage for the remainder of the purchase price. Your bank has approved your $900,000 mortgage, and is offering a standard 30-year mortgage at a 10% fixed nominal interest rate (called the loan’s annual percentage rate or APR). Under this loan proposal, your mortgage payment will be per month. (Note: Round the final value of any interest rate used to four decimal places.)
Answer:
Ans. Your mortgage payment will be $7,898.14 per month.
Explanation:
Hi, first, we need to find the equivalent effective monthly rate for 10% APR, that is 10% / 12= 0.8333% effective monthly.
After that, we have to present the periods of the loan in months, that is 30 years * 12 = 360 months
Now, we are ready to find the answer, we need to use the following equation and solve for "A"
[tex]Present Value=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }[/tex]
Where:
A= our answer
r= interest rate (0.8333% effective monthly)
n= periods of periodic payment (in our case 360 months)
The math to this is as follows.
[tex]900,000=\frac{A((1+0.008333)^{360}-1) }{0.008333(1+0.008333)^{360} }[/tex]
[tex]900,000=A(113.95082)[/tex]
[tex]\frac{900,000}{113.95082} =A[/tex]
[tex]A=7,898.14[/tex]
Best of luck.
Wildhorse Co. uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows:
Units Per unit price Total
Balance, 1/1/2017 320 $5.00 $1600
Purchase, 1/15/2017 160 ..5.70 912
Purchase, 1/28/2017 160 ..5.90 944
An end of the month (1/31/2017) inventory showed that 260 units were on hand. If the company uses FIFO, what is the value of the ending inventory?
Answer:
Ending inventory= $1514
Explanation:
Giving the following information:
Beginning inventory: 320u*$5.00= $1600
Purchase, (1/15/2017)= 160u*5.70= $912
Purchase, (1/28/2017)= 160u*5.90= $944
Ending inventory= 260u
The company uses FIFO (first in, first out).
What is the value of ending inventory?
Ending inventory= 160u*5.90 + 100u*5.70= $1514
Final answer:
To calculate the ending inventory value using the FIFO method for Wildhorse Co., all available 260 units are considered from the initial stock at $5 each, totaling $1300.
Explanation:
The question involves calculating the value of the ending inventory for Wildhorse Co. using the FIFO (First-In, First-Out) method under a periodic inventory system. With FIFO, we allocate the oldest costs to cost of goods sold (COGS) and the most recent costs to ending inventory.
Here's how to calculate it:
Starting balance on 1/1/2017: 320 units at $5.00 eachPurchase on 1/15/2017: 160 units at $5.70 eachPurchase on 1/28/2017: 160 units at $5.90 eachAt the end of the month, 260 units were on hand. Using FIFO, we'll use up the oldest inventory first. Thus,
The first 320 units of ending inventory would come from the starting balance, but since we only have 260 units on hand, we use all 260 units at the starting balance price of $5.00, totaling $1300.Therefore, under FIFO, the value of the ending inventory is $1300.
Cheyenne Corp. had the following records:
2017 2016
Ending inventory $34150
$30390
Cost of goods sold 211600 222040
What is Cheyenne inventory turnover ratio for 2017? (rounded)
Answer:
Ans. Inventory turnover ratio (2017) = 7
Explanation:
Hi, the formula to find the inventory turnover ratio is as follows.
[tex]Inventory TurnoverRatio=\frac{COGS}{Average Invetory}[/tex]
Where:
COGS= Cost of Goods Sold
If we need to find the inventory turnover ratio, first we need to find the average inventory, that is:
[tex]AverageInventory=\frac{(34150+30390)}{2} =32270[/tex]
Since we already know the COGS for 2017, the answer is as follows.
[tex]InventoryTurnoverRatio(2017)=\frac{211600}{32270} =7[/tex]
That is 7 times a year (rounded).
Best of luck.
At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $309,000 and $600 (credit) in Allowance for Uncollectible Accounts. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. Bad debt expense for the year should be:
Answer:
Bad debt expense $ 14.850
Explanation:
Initial Balance
Accounts Receivable $ 309.000
Allowance for Uncollectible Accounts $ 600
Should be 5% of the Accounts Receivables
Allowance for Uncollectible Accounts $ 15.450
We must calculate the difference between the actual balance and the must be balance.
Adjustment entry
Bad debt expense $ 14.850
Allowance for Uncollectible Accounts $ 14.850
END Balance
Accounts Receivable $ 309.000
Allowance for Uncollectible Accounts $ 15.450
At the beginning of 2018, Calston Incorporated reports inventory of $10,000. During 2018, the company purchases additional inventory for $27,000. At the end of 2018, the cost of inventory remaining is $7,700.
Calculate cost of goods sold for 2018.
Answer:
COGS for 2018 : 119,300
Explanation:
We use the inventory identity to solve for Cost of Goods Sold:
[tex]$$Beginning Inventory + Purchase = Ending Inventory + COGS[/tex]
The right side are the input of inventory: it can be from previous prior and purchase from the period. And the left side are the destination, it can be on stock or sold.
We plug our values into the formula and solve for COGS
100,000 + 27,000 = 7,700 + COGS
COGS = 100,000 + 27,000 - 7,700 = 119,300
Answer: COGS for 2018 : 119,300
Explanation:
Which of the following statements is true of service facilities? Select one: a. They store their services as physical inventory. b. They need to be in close proximity to customers. c. They rely more on hard technology than soft technology to perform work. d. They require employees with stronger technical skills than behavioral skills.
Answer: Option B
Explanation: Service facilities refers to those companies that have business of providing services such as emergency medical care, automobile repair etc.
These firms belongs to service industry in which every customer might need a little bit different work from the others. Thus, in order to know their customers specific wants and preference they must have a close relationship with them.
Hence from the above we can conclude that the right option is B.
3. Individual Problems 8-3 Suppose that due to the outbreak of a new flu, known as H14N9, the demand for hand sanitizer has tripled. Smith & Smith, a company that produces and sells hand sanitizer, should production of its hand sanitizer. Suppose there is no vaccine for H14N9, and that a vaccine will not be developed for several decades. True or False: Smith & Smith should increase its productive capacity by leasing new plant and equipment.
Answer:
True
Explanation:
As for the provided information, the flu is new in market and has serious issues involved, and now since no remedy or cure is possible and will not be possible even in near future,
The hand sanitizer will help as a preventive action from getting infected to the Flu. Thus, people will buy the sanitizer at huge level.
Thereby, the demand for such product will increase in market in huge, and accordingly even if the company has to increase production capacity through lease it shall do so.
As with huge turnover break even will be realized and there will be profits.
Final answer:
Smith & Smith should indeed consider increasing their productive capacity for hand sanitizer due to the tripling demand resulting from an H14N9 flu outbreak, given the prolonged absence of a vaccine and the consistent economic principle that demand encourages supply, which also justifies the action as a social benefit.
Explanation:
Given that due to the outbreak of H14N9, the demand for hand sanitizer has tripled, it would be a strategic business decision for Smith & Smith to consider increasing production. If we assume that there is no vaccine for H14N9 and that a vaccine will not be available for decades, the sustained high demand for sanitizers seems likely. Therefore, true: Smith & Smith should consider increasing productive capacity by leasing new plant and equipment. This action aligns with the economic principle that demand usually encourages supply, as seen in the pharmaceutical industry when new drugs are developed due to consumer need despite the lengthy and costly process.
Furthermore, maintaining excess production capacity can be partially seen as a social cost. In a pandemic, society benefits from the availability of critical healthcare products, suggesting that the increase in production capacity is also a public good that benefits society at large.
The Morris Corporation has $300,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are $1.5 million, its average tax rate is 40%, and its net profit margin on sales is 4%. If the company does not maintain a TIE ratio of at least 4 to 1, then its bank will refuse to renew the loan, and bankruptcy will result. What is Morris's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places.
Answer: 1.41
Explanation:
Given that,
Debt outstanding = $300,000
interest rate = 8% annually
annual sales = $1.5 million
average tax rate = 40%
net profit margin on sales = 4%
interest amount = 300,000 × 0.08
= $24,000
net profit = 4% of 1.5 million
= $6,000
Profit before tax = [tex]\frac{6,000}{0.60}[/tex]
= $10,000
earning before interest and tax = profit before tax + interest
= $10,000 + $24,000
= $34,000
TIE ratio = [tex]\frac{EBIT}{Interest}[/tex]
= [tex]\frac{34,000}{24,000}[/tex]
= 1.41
You are the manager of Local Electronics Shop (LES), a small brick-and-mortar retail camera and electronics store. One of your employees proposed a new online strategy whereby LES lists its products at Pricesearch – a price comparison Web site that allows consumers to view the prices of dozens of retailers selling the same items. Would you expect his strategy to enable LES to achieve sustainable economic profits?
Answer:
The correct answer is No, because due to intense producer-producer rivalry.
Explanation:
In economics, competition means rivalry of competition between companies that participate in a market that apply better strategies so that they can minimize their costs, maximize their profits and thus remain active and innovative vis-à-vis other companies.
With this, it seeks that the economic agents strive to improve the use of resources to produce goods and services, and to improve and innovate in the quality and variety of these, with the purpose that results in improvements in competitiveness and more benefit for the consumer , all this to achieve greater economic growth and social welfare.
Listing LES's products on a price comparison website can increase visibility and potential sales, but it also introduces more competition. Over time, this might negatively impact sales if competitors offer better or cheaper products, as customers often value price over store loyalty on such platforms.
Explanation:Providing product listings and prices on a comparison website like Pricesearch can indeed boost business visibility and possibly sales. However, sustainable economic profits may not be guaranteed. This is due to the increased competition that such a platform invites. Listing the Local Electronics Shop (LES)'s products along with those of numerous other stores could expose LES to the risk of losing customers who may find better or cheaper products from competitors.
It is also important to remember that customers who shop on such platforms typically value price over loyalty to a particular store. If LES is unable to offer the most competitive prices, it could potentially lose sales. So while there may be a short-term boost in profits due to increased visibility and traffic, in the long term, the risk of increased competition could mitigate these benefits.
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What effect will each of the following have on the supply of auto tires? (Keeping all else constant)
a. A technological advance in the methods of producing tires:
b. A decline in the number of firms in the tire industry:
c. An increase in the prices of rubber used in the production of tires:
d. The expectation that the equilibrium price of auto tires will be lower in the future than currently:
e. A decline in the price of large tires used for semi trucks and earth-hauling rigs, a substitute in production. (with no change in the price of auto tires):
f. The levying of a per-unit tax on each auto tire sold:
g. The granting of a 50-cent-per-unit subsidy for each auto tire produced:
Answer:
Explanation:
a. Total supply of auto tires will increase because firms will produce more. In the Demand and Supply graph the supply curve will shift to the right.
b. Total supply will decrease because there are less tires offered on the market. In the Demand and Supply graph the supply curve will shift to the left.
c. Total supply will decrease because cost of production will increase, then firms will offer less quantity of tires. In the Demand and Supply graph the supply curve will shift to the left.
d. Total supply will decrease because firms will perceive less benefits of selling auto tires in the future. In the Demand and Supply graph the supply curve will shift to the left.
e. The total supply could increase if large tires producers decide to produce auto tires because it is more attractive. In the Demand and Supply graph the supply curve will shift to the right.
f. Total supply will decrease because the tax creates incentives to produce less. In the Demand and Supply graph the supply curve will shift to the left.
g. Total supply will increase because the subsidy creates incentives to produce more. In the Demand and Supply graph the supply curve will shift to the right.
Depending on the factor, the supply of auto tires may increase or decrease. Technological advances and subsidies can increase supply by reducing costs, while decreasing number of firms, increasing raw material costs, expectation of lower future prices and new taxes can decrease supply by increasing costs or reducing profitability.
Explanation:The factors listed in your question will differently affect the supply of auto tires, based on the principles of Economics and our understanding of supply and demand.
Technological advance in the methods of producing tires: this would increase supply, because more efficient production methods reduce the cost of manufacturing, allowing companies to produce more tires. A decline in the number of firms in the tire industry: this would likely decrease supply, as fewer firms in the industry means fewer sources of tires. An increase in the prices of rubber used in the production of tires: this would likely decrease supply because higher raw material costs reduce profit margins, discouraging production. The expectation of a lower equilibrium price for auto tires in the future: this would also decrease supply as companies may hold off on producing tires, anticipating lower returns in the future. A decline in the price of large tires used for semi trucks and earth-hauling rigs: this would likely have no effect on the supply of auto tires as they are different products with different markets. The levying of a per-unit tax on each auto tire sold: this would decrease supply as the added cost would limit the profitability of each unit sold, potentially discouraging production. The granting of a subsidy for each auto tire produced: this would likely increase supply as the subsidy effectively reduces the cost of production, encouraging companies to produce more. Learn more about Supply and Demand here:
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Atlantis Corporation has 12,000 shares of 14%, $78 par noncumulative preferred stock outstanding and 29,000 shares of no-par common stock outstanding. At the end of the current year, the corporation declares a dividend of $188,000. How is the dividend allocated between preferred and common stockholders?
Answer:
The preferred shareholders will be allocated a dividend of $131040 and the common shareholders will be allocated a dividend of $56960.
Explanation:
Total dividend declared =$188000
the allocation of dividends:
Preferred shareholders = (12000×14%)×$ 78
= $ 131040
Common shareholders = Total dividends - preferred shareholders dividend
= $ 188000 - $ 131040
= $ 56960
Therefore, the common shareholders will be allocated dividends of $ 56960 and the preferred shareholders will be allocated dividends of $ 131040.
The total dividend owed to the preferred shareholders is $130,800. The remaining $57,200 is distributed to holders of the common stock.
Explanation:To find out how dividends are allocated, we first need to calculate the dividend due to preferred stockholders. Given that the noncumulative preferred stock pays out 14% at a par value of $78, each preferred share receives 0.14 * $78 = $10.92 per share. Multiplying this ratio by the 12,000 preferred shares gives us a total dividend for the preferred stockholders - $130,800.
Now, if the total dividends declared are $188,000, we then subtract the amount allocated to the preferred shareholders from this total. $188,000 - $130,800 = $57,200. So, the remainder of the dividends, $57,200, is distributed amongst the holders of the 29,000 shares of common stock.
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Consider the following balance sheet for Go The Distance Trading Cards. Sales were $1,162,184.00 in the past year. Go The Distance Trading Cards Balance Sheet, 2018: Account Amount Assets: Current Assets $75,000 Net fixed Assets (Net PPE) $225,000 TOTAL ASSETS $300,000 Liabilities and Shareholder Equity Current Liabilities $50,000 Long-term liabilities (Long term debt) $100,000 TOTAL LIABILITIES $150,000 Shareholder equity $150,000 TOTAL LIABILITIES AND EQUITY $300,000 What is the total asset turnover for this firm?
Answer:
Ans. Total assets Turnover= 3.87
Explanation:
Hi, well all we need to do is use the following formula.
[tex]Total AssetsTurnover=\frac{NetSales}{AverageTotal Assets}[/tex]
Since there are no other values for assets (with what to find the average), we should just use $300,000. So the final answer to this question is:
[tex]Total AssetsTurnover=\frac{1,162,184}{300,000} =3.87[/tex]
So, the total assets turnover for this company is 3.87 times a year.
Best of luck
Which of the following are NOT included in the formal financial analysis of a capital budgeting program?
a. quality of the output
b. safety of employees
c. cash flow
d. Neither a nor b are included.
Answer: Option B
Explanation: Capital budgeting refers to the process in which an analyst tries to evaluate whether a long term investment will be profitable for the organisation or not.
In the capital budgeting process, only the quantitative aspects of a project will be taken into consideration and qualitative aspects such as quality and work space safety are not considered.
Hence from the above we can conclude that the right option is B.
In formal financial analysis of a capital budgeting program, factors like quality of the output and safety of employees are typically not included. The focus is primarily on the monetary aspects of a project.
Explanation:The formal financial analysis of a capital budgeting program typically includes the evaluation of all types of cash flows, such as initial investment, operating cash flows, and terminal cash flows. However, it does not take into account factors like the quality of the output or the safety of employees. These are important considerations, but they lie outside the realm of formal financial analysis.
Therefore, amongst the choices given, the correct answer is option (d) Neither a nor b is included. Quality of output (a) and safety of employees (b) don't typically fall within the material scope of a formal financial analysis in a capital budgeting program. The focus is more on the monetary aspects of a project like cash inflow, cash outflow, return on investment, and so on.
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Kristoff Walker operates his own catering service. Summary financial data for February are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in owner's equity, except transaction (5), affects net income..
Assets = Liabilities + Owner's Equity
Cash + Supplies + Land = Accounts Payable + Kristoff Walker, Capital - Kristoff Walker, Drawing + Fees Earned - Expenses
Bal. 34,700 4,500 86,800 9,400 116,600
1. +40,600 +40,600
2. -17,400 +17,400
3. -30,200 -30,200
4. +1,700 +1,700
5. -2,300 -2,300
6. -8,300 -8,300
7. -3,500 -3,500
Bal. 17,100 2,700 104,200 2,800 116,600 -2,300 40,600 -33,700.
What is the amount of the net decrease in cash during the month?
Answer:
- $17,600
Explanation:
The computation of the net decrease in cash during the month is shown below:
= $40,600 - $17,400 - $30,200 - $2,300 - $8,300
= - $17,600
After calculating the items which are presented in the column 1 represent the net decrease in cash for $17,600 amount.
The net decrease in cash represents an outflow of cash. In this, the chances of loss may be higher than the loss.
Answer:
$4,000
Explanation:
Net gross increase = $(40,600 + 40,600 + 1,700 + 1,700) = $84,600
Net gross decrease = - $( 30,200 + 30,200 + 2,300 + 2,300 + 8,300 + 8,300 + 3,500 + 3,500) = -$88,600
∴ Net decrease = -$88,600 + $84,600 = $4,000