Answer:
d. $1,000
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP = Consumption spending by households on durable and non durable goods and services + Investment spending by businesses + Government Spending + Net Export
Consumption spending = $200 + $200 + $100 = $500
Investment spending = $200 + $(500 - 400) = $300
Government spending = $200 + $100 = $300
Transfer payments aren't included in the calculation of GDP. So, the $200 spent on welfare and unemployment benefits and $300 on social security payments isn't included in the calculation of GDP.
Net export = Export- Import = $400 - $500 = $-100
GDP = $500 + $300 + $300 - $100 = $1000
I hope my answer helps you
Heartsong LLC is a designer and manufacturer of replacement heart valves based in Peoria, Illinois. While it is a relatively small company in the medical devices field, it has established a worldwide reputation as the provider of choice for high-quality, leading-edge artificial heart valves. Most of its products are sold to large regional hospital systems and research hospitals. Specialty heart centers are another emerging but fast-growing market for its valves. While Heartsong would like to grow quickly, its growth is constrained by the need to finance larger production runs and then carry this additional inventory. For products like those of Heartsong, vendors typically do not collect payment until the unit is actually used in surgery. Moreover, heart valves are usually required on short notice, which means that they must be either onsite or inventoried at a nearby location. If they are nearby, then the transport of the unit to a hospital or heart center occurs within a matter of hours, and sometimes minutes. For this reason, accelerated growth would require Heartsong to both finance increased production of its heart valves and carry increased levels of inventory that are sitting on their customers' shelves. In fact, inventory-carrying cost is the company's single largest cost outside of research and development. While profitable growth is necessary, if Heartsong is to continue extending its competitive advantage through increasingly greater investments in basic heart valve R&D, it is not clear that the company can internally support all these increased financial commitments (R&D, manufacturing, and inventory). Doc Watson, the CEO of Heartsong, is considering an outside contractor, EdFex, to handle the inventorying, warehousing, and delivery of its valves. EdFex has secure, high-tech warehouses in most major population centers around the country and can ensure delivery of a product to these markets from its warehouses in less than one hour.
Discuss Heartsong's competitive advantage, including the value-chain activities that appear to underlie this advantage, and the implications of an EdFex outsourcing arrangement to support the competitive advantage that make it attractive to Heartsong.
Answer:
Explanation:
Competitive advantages are those factor that put a manufacturer in a better position over rivals in the market and gives her the benefit of higher pricing and brand loyalty.
In this scenario , the competitive advantage that Heartsong has in the industry is her world wide reputation as a provider of choice for high-quality leading -edge artificial heart valves.
However, she has fund limitation to enhance research and development , larger production and maintain additional inventory as demanded by the market . The sales on account pattern as vendors are not paid immediately and short lead time for ordering due to the nature of the heart valve was not helping the situation.
The outsourcing arrangement to Edfex will ease the stress on delivery as it has hightech warehouses in most major population centers around the country. The focus will now be on research and development and increased production capacity.
Final answer:
Heartsong LLC's competitive advantage includes high-quality artificial heart valves supported by robust R&D. Financial constraints on growing inventory and production can be mitigated by outsourcing logistics to EdFex, allowing Heartsong to continue its R&D focus and maintain its competitive edge.
Explanation:
Heartsong LLC's competitive advantage is derived from its reputation for providing high-quality, leading-edge artificial heart valves that are in demand globally. This reputation, fueled by their commitment to research and development, positions them as a preferred provider for regional hospital systems and specialty heart centers. The value-chain activities contributing to this advantage include rigorous R&D, efficient manufacturing, and effective inventory management to ensure rapid delivery to customers. However, given the financial constraints of accelerating production and managing increased inventory levels, partnering with EdFex could offer a strategic benefit. EdFex's ability to warehouse and deliver products swiftly aligns with Heartsong's need for quick delivery to medical facilities, and it could potentially reduce the inventory-carrying costs that burden Heartsong. This outsourcing arrangement with EdFex could support Heartsong's competitive advantage by allowing them to focus more resources on their core competencies such as R&D while relying on EdFex's logistics expertise to manage inventory and fulfill deliveries efficiently.
Based on your analysis of the "IBISWorld Industry Report OD6038: Online Tutoring Services in the US", the websites of the competitors listed in the IBISWorld report, and other research, what factors would you suggest your client consider CREATING as they develop their online tutoring solution? Select one answer. Offer small group online tutoring sessions at a lower price than individual tutoring. Create online whiteboard capabilities for students and tutors to solve problems visually. Guarantee satisfaction for students by allowing them a free make-up session if they are unsatisfied with a tutor.
Answer:
Guarantee satisfaction for students by allowing them a free make-up session if they are unsatisfied with a tutor.
Explanation:
Online tutoring is gaining significance in the technological world. Tutors can teach students from distant places and help them with their home works. The best way to create online tutoring is through websites. The new entree in the online tutoring should offer their customers free trial basis classes or introduce a free makeup class if a student is unsatisfied with a tutor. This will create a sense among students that if a tutor is unable to teach them properly they will be able to select another tutor for free and their money is not wasted.
Based on the information provided, the most likely factor your client should consider creating as they develop their online tutoring solution is: b. Create online whiteboard capabilities for students and tutors to solve problems visually.
Here's why:
Competitor analysis: While offering small group sessions (a) might be a good feature, it's not necessarily unique or a "creation." Many competitors already do this. Similarly, satisfaction guarantees (c) are becoming more common. Focusing on a unique and valuable feature like an interactive whiteboard sets you apart.
Visual learning: Many students learn best through visual representations. An online whiteboard allows for real-time collaboration on diagrams, equations, graphs, and other visual aids, making complex topics more engaging and understandable.
Differentiation factor: This feature isn't mentioned in the competitor websites or IBISWorld report, so it would be a unique selling proposition for your client's solution.
Technological feasibility: Implementing a whiteboard feature is technically achievable with existing online learning platforms and tools.
Therefore, while all three options have merit, creating online whiteboard capabilities offers the best potential for differentiation and value creation in your client's online tutoring solution.
Complete Question:
Based on your analysis of the "IBISWorld Industry Report OD6038: Online Tutoring Services in the US", the websites of the competitors listed in the IBISWorld report, and other research, what factors would you suggest your client consider CREATING as they develop their online tutoring solution?
Select one answer.
a. Offer small group online tutoring sessions at a lower price than individual tutoring.
b. Create online whiteboard capabilities for students and tutors to solve problems visually.
c. Guarantee satisfaction for students by allowing them a free make-up session if they are unsatisfied with a tutor.
4- You are purchasing a 20-year, semi-annual bond with a current market price of $973.64. If the yield to maturity is 8.68 percent and the face value is $1,000, what must the coupon payment be on the bond?
Answer:
Annual coupon payment = $84
Coupon payment in percentage = 8.4%
Explanation:
Coupon payment amount is calculated using the PMT function in excel as follows:
=PMT(8.68%/2,20*2,-973.64,1000)
=42
Annual coupon payment =42*2 = $84
Coupon payment in percentage = 84/1000 = 8.4%
This year Jack intends to file a married-joint return. Jack received $180,000 of salary, and paid $6,450 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $5,750 and $34,500 of alimony to his ex-wife, Diane, who divorced him in 2012. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Final answer:
Jack's taxable income for this year is $201,600, calculated by subtracting his deductions from his adjusted gross income.
Explanation:
To calculate Jack's taxable income, we need to subtract his deductions from his adjusted gross income. Let's break it down:
Jack's adjusted gross income is the sum of his salary, interest on loans used for tuition costs, moving expenses, and alimony. So, AGI = $180,000 + $6,450 + $5,750 + $34,500 = $226,700.
Next, we calculate Jack's deductions. The standard deduction for a married couple filing jointly in 2022 is $25,100.
Finally, we subtract the deductions from the AGI to get the taxable income. Taxable income = AGI - deductions = $226,700 - $25,100 = $201,600.
Therefore, Jack's taxable income for this year is $201,600. Please note that this is a simplified calculation, and Jack should consult a tax professional for accurate advice based on his specific situation.
Tom works for a large payroll outsourcing firm. One of his key customer’s contracts is set to expire in one month. Competition has heated up in this industry and Tom’s customer asked him to make a presentation to the top management team about his firm’s services. In his presentation, he thanked the customers for their loyalty, talked about industry trends, highlighted how his firm has been successfully serving firms for decades (unlike the new players in the market), and then asked them to renew their business again by showing them pricing options. Tom didn’t get the contract renewed and wonders if his presentation had anything to do with it. Which of the following actions should Tom do in order to IMPROVE his future presentations?
a. Spend less presentation time thanking the customer for his/her loyalty.
b. Provide arguments that his firm can meet the customer’s specific needs.
c. Assume the customer will renew and present pricing options upfront.
d. Spend more time talking about the competitions’ low quality services.
Answer:
b. Provide arguments that his firm can meet the customer’s specific needs.
Explanation:
According to the statement, Tom talked about the industry trends, how the firm has been successful and presented price options. However, there is an important point that Tom didn't address and that is crucial in these cases: it is to explain why your firm is the best option for the customer in terms of what you can do to fulfill the customer's needs and help them achieve their goals. This because you can find different competitors offering the same services and what would set your company apart is how it can better address the customer's needs. According to that, the answer is that to IMPROVE his future presentations Tom should provide arguments that his firm can meet the customer’s specific needs.
The other options are not right because spending less presentation time thanking the customer for his/her loyalty won't have an impact in the customer's decision. Also, assuming the customer will renew and present pricing options upfront and spending more time talking about the competitions’ low quality services can have a negative impact.
All other things being equal, a company that sells multiple products should attempt to structure its sales mix so the greatest portion of the mix is composed of those products with the highest _______.
Answer: contribution margin
Explanation:
The contribution margin is the incremental money that is generated for each product or unit sold after the variable portion of the costs of the firm's has been deducted. The contribution margin is calculated as the subtraction of the variable cost per unit from the selling price per unit.
The contribution margin shows how the contribution of a particular product to the profit of the company. It shows the profit potential of a product that is offered by a company and also shows the number of sales that can help to cover the fixed cost of the company. The remaining revenue gotten after the fixed cost has been covered is the profit generated.
Contribution margin= Sales revenue - Variable cost
"Competition in quality and service may be just as effective as price competition in giving buyers more for their money." Do you agree? Explain why monopolistically competitive firms frequently prefer non-price competition to price competition.
Answer:
Yes, I agree that Competition in quality and service may be just as effective as price competition in giving buyers more for their money.
Explanation:
Price competition is one of many ways that a product or service can compete in the marketplace with consumers choosing affordability over quality. Consumers make purchases mostly on the basis of which is cheaper.
Competitive pricing is used more by businesses selling similar products, since services can vary from business to business, while the attributes of a product remain similar.
monopolistically competitive firms such as hotels frequently prefer non-price competition because they do not want consumers to choose affordability over quality which is usually more expensive.
Competition in quality and service can be as effective as price competition in giving buyers more for their money. Monopolistically competitive firms prefer non-price competition to differentiate their products and attract customers.
Explanation:Non-price competition is a strategy in which businesses compete by factors other than price, such as quality, innovation, branding, or customer service. Instead of lowering prices, they seek to differentiate their products or services to attract and retain customers.
Yes, I agree that competition in quality and service can be just as effective as price competition in providing value to buyers. In monopolistically competitive industries, firms often prefer to compete through non-price competition because they can differentiate their products and services. This allows them to attract customers based on factors other than price, such as product features, customer service, and brand reputation.
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The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 5 YTM 4.98 % 5.54 % 5.78 % 5.91 % 6.03 % What is the price per $ 100 face value of a two-year, zero-coupon, risk-free bond?
Answer:
The Current Value of Zero-Coupon Bond $89.78
Explanation:
Face Value = $100
Yield to Maturity = 5.54%
Maturity Years = 2 Years
The Current Value of Zero-Coupon Bond = Present Value of Face Value
= $100 x [PVIF 5.54%, 2 Years]
= $100 / (1 + r)ⁿ
= $100 / (1 + 0.0554)²
= $100 / 1.11387
= $89.78
Elmer received the following distributions from Virginiana Mutual Fund for the calendar year 2019: Ordinary dividends $250 Capital gain distributions $170 Nontaxable distributions $80 Elsie, Elmer's wife, did not own any of the Virginiana Mutual Fund shares, but she did receive $1,475 in interest on a savings account at the Moss National Bank and $175 in interest on California Municipal Bonds. Elmer and Elsie filed a joint income tax return for 2019. What amount is reportable as taxable interest income? a. $175 b. $0 c. $1,650 d. $1,475 e. None of these choices are correct.
Answer:
d. $1,475
Explanation:
The computation of the taxable interest income is shown below:
Since it is given that the Elmer received the interest on a saving account for $1,475 and the same is considered for taxable interest income because the interest on California Municipal Bonds i.e $175 is not considered as a taxable income
So in this case only $1,475 is relevant and held for taxable interest income
The amount that is reportable as taxable interest income on a joint tax return for Elmer and Elsie for 2019 is $1,475. This is because only the interest collected from Moss National Bank counts towards taxable interests. The interest from California Municipal Bonds is tax free.
Explanation:To calculate the taxable interest income of Elmer and Elsie, we need to identify the amounts provided that fall under taxable interest. The Ordinary dividends of $250 and Capital gain distributions of $170 received from Virginiana Mutual Fund by Elmer are taxable but not considered as 'interest income', but rather as 'dividend income' or 'capital gain'. On the other hand, the interest Elsie received from her savings account at the Moss National Bank of $1,475 is considered as taxable interest income. The interest on California Municipal Bonds, however, are typically exempt from federal as well as state income taxes in the state of issuance - in this case, California - and would not count towards taxable interest income. Therefore, the amount reportable as taxable interest income in Elmer and Elsie's joint income tax return for 2019 would be $1,475.
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Blossom Company purchased equipment for $303,200 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $15,200. Estimated production is 45,000 units and estimated working hours are 20,000. During 2020, Blossom uses the equipment for 530 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Blossom is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.)
Answer:
Answer A = $9,000
Answer B = $6,400
Answer C = $7,632
Answer D = $54,000
Answer E = $71,063
Explanation:
[ find attachments for complete solutions]
Note: Complete question is attached to the attachment section
Final answer:
Depreciation expense for Blossom Company's equipment is calculated under the straight-line, units of production, and hours of use methods. For the year 2020, the expenses are $9,000, $6,400, and $7,632, respectively.
Explanation:
To calculate the depreciation expense for Blossom Company's equipment under different methods, we take into account the cost of the equipment, its estimated useful life, salvage value, estimated production in units, and estimated working hours. The equipment was purchased for $303,200 on October 1, 2020, with a useful life of 8 years, a salvage value of $15,200, estimated production of 45,000 units, and estimated working hours of 20,000.
Straight-Line Method
Using the straight-line method, the annual depreciation expense is calculated as follows:
(($303,200 - $15,200) / 8 years) = $36,000 per full year. Since the equipment was used for 3 months in 2020, the depreciation expense for that year would be 1/4 of the annual amount, which is $9,000.
Units of Production Method
To calculate depreciation using the units of production method, we need the rate per unit, which is:
(($303,200 - $15,200) / 45,000 units) = $6.40 per unit (rounded to two decimal places). For 1,000 units produced in 2020, the depreciation expense is 1,000 units× $6.40 per unit = $6,400.
Hours of Use Method
Under the hours of use method, the rate per hour is:
(($303,200 - $15,200) / 20,000 hours) = $14.40 per hour (rounded to two decimal places). For 530 hours of use in 2020, the depreciation expense is 530 hours ×$14.40 per hour = $7,632.
Sales mix is: Multiple Choice important to sales managers but not to accountants. easier to analyze on absorption costing income statements. a measure of the relative percentage of a company's variable costs to its fixed costs. a measure of the relative percentage in which a company's products are sold.
Answer:
The correct answer is letter "D": a measure of the relative percentage in which a company's products are sold.
Explanation:
The sales mix refers to the percentage that represents the sales of a product compared to the total sales of all products the firm offers. The sales mix allows managers to find out what products are underperforming so their production is dropped or adjusted, according to what provides more benefits to the institution. The sales mix analysis is carried out to determine what products are more profitable for the corporation.
n investor is considering a $10,000 investment in a start-up company. She estimates that she has probability 0.39 of a $23,000 loss, probability 0.24 of a $8700 profit, probability 0.12 of a $31,000 profit, and probability 0.25 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? Part: 0 / 20 of 2 Parts Complete
Answer:
The expected profit is -$13,162.
I would not recomend the investor to make this investment.
Explanation:
The expected profit can be calculated multypling the probabilities of every outcome and the profit of each outcome, and substracting the total invevstment.
The outcomes are:
1) probability 0.39 of a $23,000 loss,
2) probability 0.24 of a $8700 profit,
3) probability 0.12 of a $31,000 profit, and
4) probability 0.25 of breaking even
NOTE: It is assumed that the outcomes does not include the initial investment.
Then, the expected profit of this investment is:
[tex]E(P)=[0.39*(-23,000)+0.24*8,700+0.12*31,000+0.25*0]-10,000\\\\E(P)=[-8,970+2,088+3,720+0]-10,000\\\\E(P)=-3,162-10,000\\\\E(P)=-13,162[/tex]
Answer:
company b
Explanation:
Consider three mutually exclusive projects (A, B, and C)
Cash Flows A B C
First Cost 1,850.00 $1,850.00 $1,900.00
Uniform annual benefit $90.00 315.00 325.00
Salvage value 135.00 405.00 $360.00
Useful life, in years 6 7 8
When each project reached the end of its useful life, it would be sold for its salvage value and there would be no replacement. Plot the net present worth (NPW) of each project on the same chart with interest rates ranging from 0% to 25%
Answer:
Assuming a range of interest rates 0%, 5%, 10%, 15%, 20%, 25%
The below listed are the Net present Values
Project A
1,175
1292
1382
1451
1505
1549
Project B
760
261
-100
-387
-602
-769
Project C
1,110
494
52
-274
-519
-708
The Net Present Value of a project is the evaluation of a project Net Cash flows based on time value of money and bench-marked against the required rate of return the business considers minimum.
The attached document shows the detailed answer for your review
+
+
Analysis of Receivables Method:
At the end of the current year, Accounts Receivable has a balance of $3,750,000, Allowance for Doubtful Accounts has a credit balance of $22,750, and sales for the year total $48,400,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $390,000.
Required:
a. Determine the amount of the adjusting entry for uncollectible accounts.
Answer:
$367,250
Explanation:
Data provided
Allowance for Doubtful Accounts = $390,000
Credit balance = $22,750
The computation of the amount of the adjusting entry is shown below:-
Amount of adjusting entry = Allowance for Doubtful Accounts - Credit balance
= $390,000 - $22,750
=$367,250
Therefore for computing the amount of adjusting entry we simply subtract credit balance from allowance for doubtful accounts.
Good corporate citizens Multiple Choice go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all. identify up-and-coming managers who have a future in local- or state-level politics. provide work-from-home options to working mothers residing in distant locations. create a democratic workplace whereby the voices of lower-level employees are heard through representation on the board of directors. develop and market products that are solely environmentally friendly.
Complete question:
Good corporate citizens
A. go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all.
B. are active participants in the political process.
C. identify up-and-coming managers who have a future in local- or state-level politics.
D. create a democratic workplace whereby the voices of lower-level employees are heard through representation on the board of directors.
E. All of these.
Answer:
Good corporate citizens : go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all.
Explanation:
Economic obligations are focused on the assumption that strong and legitimate standards are met; that they are completely consistent with all local, regional, federal and foreign regulations; and that they are a decent, law-abiding business citizen who does not merely comply with the moral requirements of society.
Corporate responsibility or sustainability, businesses are two out the of three respondents required corporations to move outside their conventional is sometimes used to express the notion that fulfilling society's standards is part of a business that creates a difference, a business that does amazing things around the world.
Final answer:
Good corporate citizenship involves companies going beyond just meeting ethical standards to actively foster social and environmental benefits, balancing various stakeholder interests. It encompasses employee well-being, social responsibility, and sustainable environmental practices.
Explanation:
The question centers on the concept of good corporate citizenship, which involves companies going beyond the minimum requirements of ethical strategies and business behavior to foster social benefit and balance the interests of all stakeholders. Genuine corporate citizenship touches on various areas such as ethical business practices, social responsibility, employee well-being, and environmental stewardship. In the context of today's multifaceted business landscape, this is a critical part of business ethics that examines the moral implications of corporate decisions and actions.
Modern corporations must navigate the challenges of addressing social, economic, and environmental issues within their strategies. This can include implementing policies that support work-family balance, as evidenced by companies like IBM and Lucent Technologies, and engaging in practices that advocate for environmental sustainability, as done by corporations like Amazon and Samsung. The moral obligations of corporations might also include ensuring ethicality in emerging technologies, as embodied by the IEEE-CS's Software Engineering Code of Ethics for software engineers.
Involving all stakeholders, from employees to the broader community, in the corporate decision-making process and fulfilling corporate responsibility are fundamental to becoming exceptional corporate citizens. Corporations have a responsibility not just to their shareholders but also to their customers, employees, and the society at large, including fostering sustainable practices and acting as stewards of the environment.
The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). Sales $ 5 comma 100 comma 000 Operating income $ 510 comma 000 Total assets $ 3 comma 000 comma 000 Current liabilities $ 270 comma 000 Management's target rate of return is 23% and the weighted average cost of capital is 13%. What is the Top Hat Division's capital turnover?
Answer:
1.5
Explanation:
The computation of the capital turnover is shown below:
Capital turnover = Sales ÷ Total assets
where,
Sales is $5,100,000
And, the total assets is $3,000,000
So, the capital turnover is
= $5,100,000 ÷ $3,000,000
= 1.5
By dividing the sales from the total assets we can get the capital turnover and the same is shown above
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 95,000 shares authorized, issued, and outstanding $ 950,000 Paid-in capital in excess of par value, common stock 331,000 Retained earnings 1,048,000 Total stockholders’ equity $ 2,329,000 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 7,300 shares of its own common stock at $48 per share on October 11. Sold 1,575 treasury shares on November 1 for $54 cash per share. Sold all remaining treasury shares on November 25 for $43 cash per share.
Answer:
Date Description DR CR
$ $
Oct 11 Treasury Stock 350,400
Cash 350,400
Being the purchse of teasury stock
Nov 1 Cash 85,050
Paid in Capital from Treasury stock 9,450
Treasury stock 75,600
Being the cash realized on the sales of Treasury
stock above cost
Nov 25 Cash 246,175
Paid in capital from Treasury stock 9,450
Retained earnings 19,175
Treasury Stock 274,800
Being the sales of Treasury stock below the cost
Explanation:
Sherman Systems' stock transactions including purchasing and selling of treasury shares, involve recording the cash flow and changes in the equity accounts such as Treasury Stock and Paid-in Capital from Treasury Stock.
Explanation:Understanding Stock Transactions and Shareholder Equity
The student is seeking to understand how to record journal entries for stock transactions involving treasury shares for Sherman Systems. Treasury shares are the company's own shares that it has reacquired. The transactions include purchasing treasury shares and then selling them at two different prices.
Purchase of Treasury Shares: On October 11, Sherman Systems purchased 7,300 of its own shares at $48 per share. The journal entry will be a debit to Treasury Stock (an equity account) and a credit to Cash, both for the total purchase amount of $350,400 (7,300 shares * $48 per share).
Sale of Treasury Shares: On November 1, 1,575 treasury shares were sold for $54 per share, resulting in a credit to Treasury Stock for the cost of the shares and a debit to Cash for the proceeds received, which is $85,050 (1,575 shares * $54 per share). Additionally, the difference between the proceeds and the cost of the treasury shares is credited to Paid-in Capital from Treasury Stock, assuming the shares were sold at a higher price than the repurchased cost.
On November 25, the remaining treasury shares were sold for $43 per share. Again, a similar journal entry is made with a focus on the cash received and the changes to the Treasury Stock account, along with any excess proceeds or loss being reflected in a separate equity account as appropriate.
Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 6,100 units, but its actual level of activity was 6,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed element per month Variable element per unit Revenue - $ 33.60 Direct labor $ 0 $ 5.60 Direct materials 0 13.20 Manufacturing overhead 31,000 1.10 Selling and administrative expenses 24,900 0.30 Total expenses $ 55,900 $ 20.20 Actual results for May: Revenue $ 204,100 Direct labor $ 33,360 Direct materials $ 81,200 Manufacturing overhead $ 40,500 Selling and administrative expenses $ 30,410 The direct labor in the planning budget for May would be closest to:
Answer:
The correct answer is $33,880.
Explanation:
According to the scenario, the given data are as follows:
Direct labor = $5.60 per unit
Actual level of Activity = 6,050
So, we can calculate the direct labor in planning budget by using following formula:
Direct labor in planning budget = Actual level of Activity × Direct labor
By putting the value, we get
Direct labor in planning budget = 6,050 × $5.60
= $33,880
Hence, The direct labor in the planning budget for May would be closest to $33,880.
Graham Potato Company has projected sales of $6,000 in September, $10,000 in October, $16,000 in November, and $12,000 in December. Of the company’s sales, 20 percent are paid for by cash and 80 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Sales:
September= $6,000
October= $10,000
November= $16,000
December= $12,000
Of the company’s sales, 20 percent are paid for by cash, and 80 percent are sold on credit.
Cash collection November:
Sales in cash= (16,000*0.2)= 3,200
Sales on account October= (10,000*0.8)*0.4= 3,200
Sales on account September= (6,000*0.8)*0.6= 2,880
Total cash collection= $9,280
Cash collection December:
Sales in cash= (12,000*0.2)= 2,400
Sales on account October= (10,000*0.8)*0.6= 4,800
Sales on account November= (16,000*0.8)*0.4= 5,120
Total cash collection= $12,320
The total collections for the Graham Potato Company in November are $6400 and in December are $10400, considering both the cash sales and the collections from receivables.
Explanation:To determine the collections for November and December, we should find out the cash collections and the collections from the receivables each month.
The Graham Potato Company gets 20 percent of its sales in cash, so in November, it collects 0.2 * $16,000 = $3200 in cash. In December, it collects 0.2 * $12,000 = $2400 in cash.
Next, we need to calculate the collections from the receivables. The company sells 80 percent of its sales on credit, and it collects 40 percent of that amount in the month after the sale and the remaining 60 percent two months after. So, the collections from October's sales (0.8 * $10,000) in November would be 0.4 * 0.8 * $10,000 = $3200. In December, it would collect the remaining 60% from October's sales and 40% from November's sales which will be: 0.6 * 0.8 * $10,000 + 0.4 * 0.8 * $16,000 = $8000.
Therefore, total collections for November is $3200 (cash) + $3200 (receivables) = $6400 and for December is $2400 (cash) + $8000 (receivables) = $10400.
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FCOJ, Inc., a prominent consumer products firm, is debating whether or not to convert its all-equity capital structure to one that is 35 percent debt. Currently, there are 6,900 shares outstanding and the price per share is $59. EBIT is expected to remain at $26,220 per year forever. The interest rate on new debt is 10 percent, and there are no taxes.
Required:
(a) Melanie, a shareholder of the firm, owns 180 shares of stock. What is her cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
(b) What will Melanie's cash flow be under the proposed capital structure of the firm? Assume that she keeps all 180 of her shares. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
(c) Suppose FCOJ does convert, but Melanie prefers the current all-equity capital structure. Show how she could unlever her shares of stock to recreate the original capital structure.
Answer:
a. $684
b. $480.6
c. 63 shares
Explanation:
a. The calculation of cash flow under the current capital structure is given below:-
Earning per share = Net income ÷ Shares
= $26,220 ÷ 6,900
= $3.8 per share
Cash flow = Earning per share × Stock shares
=$3.8 × 180 shares
= $684
b. The calculation of cash flow be under the proposed capital structure is given below:-
Value = $59 × 6,900
= $407,100
Under the capital structure suggested the company would collect new debt in the amount of:
Debt = 0.35 × $4071,00
= $142,485
Which means the amount of the repurchased shares will be:-
Shares repurchased = $142,485 ÷ $59
= $2,415
The Company will have to make an interest payment on the new debt under the new capital structure. The net income with the interest payment will be:-
Net income = $26,220 - 0.10 × $142,485
=$11,971.5
This means that the EPS will come under the new capital structure
Earning per share = $11,971.5 ÷ 4,485 shares
= $2.67 per share
Since all profits are paid out as dividends, the shareholder receives:-
Shareholder cash flow = Earning per share × Stock shares
= $2.67 × 180 shares
= $480.6
c. The shareholder would sell 35% of their shareholdings
= Shares × Debt percentage
= 180 × 35%
= 63 shares
Any event that increases the supply of British pounds to be exchanged for U.S. dollars should result in a(n) ____ in the value of the British pound with respect to ____, other things being equal. a. decrease; nondollar currencies b. increase; U.S. dollar c. decrease; U.S. dollar d. increase; nondollar currencies
Answer:
Option (C) is correct.
Explanation:
If there is an increase in the supply of British pounds then as a result the demand for British pounds decreases as there are enough supply of British pounds available in the market. So, if any investor wants to exchange US dollars for British pounds then they need to pay more for each dollar obtained as the supply of the British pounds is large.
This will reduce the value of British pounds with respect to the value of United States dollar.
The types of decision making a consumer uses for a product does not necessarily remain constant. Why ?
Answer:
The decision making of a consumer goods does not change because the amount of a good consumer wants at a particular point in time is determined by some factors
Explanation:
The decision of a consumer does not remain constant, this is because, the quantity of a good consumer demand at a particular point in time is determined by several factor
Now, in the place where i am working in an MNC as a contract role. While my working period my consumption of goods increased as i was earning my own money and i did not have think more than once before purchasing any particular kind of goods
Now after that time ends, i have to collect money from my parents and now my thoughts and behavior towards consuming changed greatly.
Answer:
Well in most of the cases the decision making power and quality of the consumer remains constant but again, there are some cases where the the consumer changes the type of his/her decision making and go for another product.
One of the main reasons for this to happen is that, the consumer has or had a negative experience with the same product he.she has been using for a long time, this does not happen very often but when ever it does the consumer switches itself to other alternatives of that product.
Apart from that, there is a possibility that the product that the consumer really wants is sold out and now the consumer has to go with the alternative in order to satisfy his/her needs.
Hope this Helps.
Good luck.
Denise is an editor at Luminescence Films. She is working on an action film for which she is merging several layers of images of an elaborate car chase scene that were shot separately on different days.
What type of technique is Denise employing?
a. Nonlinear editing
b. Rear projection
c. Matting
d. Compositing
Answer:
The correct answer is letter "D": Compositing.
Explanation:
Compositing is an editing technique that consists in obtaining material from different sources and putting them together to create the sensation that they were all collected from the same source. This approach is implemented when certain features of one source want to be implemented in another. Thorugh different computer software designers can add, modify or remove those features to create another new picture.
Create a Crow's Foot ERD for each of the following descriptions. (Note: The word many merely means "more than one" in the database modeling environment.)A. Each of the MegaCo Corporation's divisions is composed of many departments. Each department has many employees assigned to it, but each employee works for only one department. Each department is managed by one employee, and each of those managers can manage only one department at a time.B. During some period of time, a customer can rent many videotapes from the BigVid store. Each of the BigVid's videotapes can be rented to many customers during that period of time.C. An airliner can be assigned to fly many flights, but each flight is flown by only one airliner.D. The KwikTite Corporation operates many factories. Each factory is located in a region. Each region can be "home" to many of KwikTite's factories. Each factory employs many employees, but each of those employees is employed by only one factory.E. An employee may have earned many degrees, and each degree may have been earned by many employees.
Crow's Foot Entity Relationship Diagrams (ERDs) represent relationships between entities in a database. For each scenario, an ERD has been constructed: MegaCo with Division, Department and Employee entities; BigVid with Customer and Videotape entities; an airline scenario with Airliner and Flight entities; KwikTite with Factory, Region, and Employee entities; and a degree scenario with Employee and Degree entities.
Explanation:Creating Crow's Foot Entity Relationship Diagrams (ERDs) involves representing the relationships between entities in a database. Below are examples for each scenario presented:
A. For MegaCo Corporation, we'd have a 'Division' entity, 'Department' entity and 'Employee' entity. A Division is made up of many Departments, denoted by the crow's foot on the end towards the Department entity. Each Department has many Employees, but each Employee belongs to one Department, illustrated by the straight line towards the Employee. Also, each Department is managed by one Employee, and a Manager manages one Department at a time.
B. For BigVid, we have a 'Customer' entity and a 'Videotape' entity. A Customer can rent many Videotapes, represented by a crow's foot Videotape. Each Videotape can be rented by many Customers, shown by the crow's foot on the Videotape to the Customer line.
C. For the airliner scenario, we have 'Airliner' and 'Flight' entities. An Airliner can be assigned many Flights, but each Flight is flown by one Airliner.
D. For KwikTite, we have the entities 'Factory', 'Region', and 'Employee'. A Factory is in one Region, but a Region can have many Factories. A Factory employs many Employees, yet an Employee works for only one Factory.
E. For the degree scenario, there's an 'Employee' entity and a 'Degree' entity. An Employee can earn many Degrees and a Degree can be earned by many Employees.
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Gross domestic product requires a. borrowing, which requires sufficiently high interest rates to prevent free riders. b. investment, which requires borrowing, which requires sufficiently low interest rates to prevent free riders. c. investment, which requires borrowing, which requires a functioning loanable funds market. d. inflation equal to the nominal rate of interest, which means lending equals borrowing. e. borrowing, which requires the real rate of interest to be equal to inflation, which requires a functioning loanable funds market.
Answer: C. investment, which requires borrowing, which requires a functioning loanable funds market.
Explanation:
GDP is primarily used to gauge the health of a country's economy. It is the monetary value of all the finished goods and services produced within a country's borders in a specific time period and includes anything produced by the country's citizens and foreigners within its borders.
The Gross Domestic Product measures the value of economic activity within a country. Strictly defined, GDP is the sum of the market values, or prices, of all final goods and services produced in an economy during a period of time. ... GDP is a number that expresses the worth of the output of a country in local currency.
The bank statement contained two bank memoranda:1. A credit of $2,242.00 for the collection for Bogalusa Company of an electronic funds transfer.2 A debit for the printing of additional company checks $85.00.At November 30, the cash balance per books was $11,073.80 and the cash balance per bank statement was $17,712.50. The bank did not make any errors, but Bogalusa Company made two errors.
Answer:
Cash 2,157 debit
bank service expense 85 debit
account receivables 2,242 credit
Explanation:
To record the bank memorand:
The collection in behalf of the firm will increase cash
The new print the checks will be considered either miscellaneuos expense or bank service expense either way, will decrease cash.
Net cash variation: 2,242 - 85 = 2,157
For the Company errors another entry will be made looking for errors between our numebrs and the bank.
The Rialto Theatre purchased a new projector costing $82,000 on January 1, 2018. Because of changing technologies, the projector is estimated to last four years after which it will be obsolete and have a salvage value of $4,000 as a collectors’ item. Compute the depreciation expense for 2018 using: a. The straight-line method b. Double-declining-balance method c Now assume that the asset is sold at the end of the second year (December 31, 2019) for $30,000, while the Double Declining Balance method is used.
Answer:
a. 19,500
b. $20,500
c. Gain of $9,500
Explanation:
a.
Straight Line depreciation is a method of depreciation in which the cost of the asset net of residual value is divided over useful life.
Depreciation rate = ( Cost - Salvage Value ) / useful life = ($82,000 - $4,000) / 4 = $19,500
Depreciation charged in 2018 = $19,500
Depreciation charged in 2019 = $19,500
Accumulate depreciation as on December 31, 2019 = $39,000
b.
In Double Declining method Accelerated depreciation is charged. The depreciation charged in this method is double of the charged in straight-line depreciation method.
Depreciation rate = 2 x (1/useful life) x100 = 2 x (1/4 years) x100 = 50%
50% will be charged to Book value of the projector.
Depreciation charged in 2018 = $82,000 x 50% = $41,000
Depreciation charged in 2019 = ( $82,000 - $41,000 ) x 50% = $20,500
Accumulate depreciation as on December 31, 2019 = $41,000 + $20,500 = $61,500
Book value as on December 31, 2019 = $20,500
c.
Sale proceeds = $30,000
Gain on sale = $30,000 - $20,500 = $9,500
There is a gain of $9,500 based on Double declining method
It recorded as follow
Dr. Cash $30,000
Dr.Accumulated Depreciation $61,500
Cr. Gain on sale $9,500
Cr. Projector $82,000
Depreciation expense for the projector in 2018 using the straight-line method is $19,500. Using the double-declining-balance method, the expense for 2018 is $41,000. If the projector is sold for $30,000 at the end of the second year, the depreciation for 2019 would be $20,500.
To calculate the depreciation expense for 2018 for the Rialto Theatre's new projector using the straight-line method, we follow this formula:
Annual Depreciation Expense = (Cost of the Asset - Salvage Value) / Useful Life
The cost of the asset is $82,000, the salvage value at the end of its useful life is $4,000, and its useful life is estimated at 4 years.
So, the calculation will be ($82,000 - $4,000) / 4 = $19,500 per year.
Therefore, the straight-line depreciation for 2018 is $19,500.
For the double-declining-balance method, the depreciation rate is double that of the straight-line rate, which would be 50% per year for an asset with a useful life of 4 years. However, this method applies the rate to the book value of the asset at the beginning of each year.
So for 2018, the calculation would be $82,000 x 50% = $41,000.
If the asset was sold at the end of the second year (December 31, 2019) for $30,000, we first need to calculate the depreciation for 2019:
Book value at the beginning of 2019 = $82,000 - $41,000 = $41,000
Depreciation for 2019 = $41,000 x 50% = $20,500
Book value at the end of 2019 before sale = $41,000 - $20,500 = $20,500
The sale price of $30,000 is higher than the book value, so the theatre would record a gain on the sale of the asset.
The Medicine Chest Company keeps a small petty cash fund to handle small cash transactions. Because no one wants to volunteer to be the custodian, the business manager has decided that all employees should have access to the petty cash.
Answer and explanation:
Petty cash funds refer to a small number of money companies have, typically in each department, so the department can have immediate resources for the purchase of items with minimal costs such as office supplies. A ticket is usually registered for every expense to keep control of the expenditures until the petty cash fund runs out where the total expense is recorded in the accounting books of the firm.
In the case give, the fact that no representative of the department wants to be in charge of the petty cash fund reflects a weakness since there must be only one person controlling the outflows of the cash instead of having every employee reporting a ticket for each expense which could lead to the misuse of those funds.
At December 31, 2012, Destin Sports Equipment had 200,000 common shares issued and outstanding. On May 31, 2013, Destin issued a 15% stock dividend. Fully vested, incentive stock options issued in 2011 and exercisable for 40,000 shares (adjusted for the stock dividend) were outstanding at the end of 2013, with an exercise price of $40 per share. The market price of Destin’s common stock averaged $50 per share during 2013. Also outstanding since 2007 were $100,000 of 10% bonds issued at face value and convertible into 30,000 common shares. Destin’s tax rate is 40% and 2013 net income was $550,000.
__ 2. What is Destin’s 2013 basic earnings per share? b. $2.39
__ 3. What is Destin’s 2013 diluted earnings per share? a. $2.07
Answer:
2. Basic Earning per share = 2.39
3. Diluted earnings per share = 2.07
Explanation:
2.
Calculation of Weighted Average No. of Equity Shares Outstanding
Particular Portion Shares Calculations Weighted
of year outstanding Average
during time Impact
interval.
Shares 12 months 200000 12/12*200000 200000
Outstanding
1 Jan-31 Dec
15% Stock 12 months 30000 12/12*30000 30000
Total 230000
Basic Earning per share= Income available to common share
holders/Weighted average no of shares
Net Income 550000
Income available to common share holders 550000
Weighted Average no. of shares 230000
Basic Earning per share = 2.39
3.
Diluted Earning Per Share =Earning for Equity share holders after effects of Dilutive Potential Equity Shares/ Weighted
Average No of O/SEquity after effects of Dilutive Potential Equity Shares
Potential Equity Shares= ESOP-(ESOP*(Exercise Price/ Market Price))
ESOP 40000
Exercise Price 40
Market Price 50
Potential Equity Shares 8000
Time Portion Shares Calculations Weighted
Interval of year outstanding Average
during time Impact
interval
Shares 12 months 200000 12/12*200000 200000
Outstanding
1 Jan-31 Dec
15% Stock 12 months 30000 12/12*30000 30000 Dividend
Potential Equity 8000 8000
Shares (ESOP)
Debentures 30000 30000
Total 268000
Diluted EPS
Earning for Equity Share holders 550000
Incremental EPS 100000*10%*(1-0.4) 6000
Total 556,000
Weighted average no of Equity Shares 268000
DEPS 2.07
Samantha is an entrepreneur and her company website has the following links: Home, About Us, Careers, Contact Us. She wishes to vary their appearance whenever they are visited or clicked. Samantha wants the color of Home to turn yellow when she moves the pointer over it. Identify the pseudo-class that should be used to perform this function.A. :link
B. :hover
C. :active
D. :visited
Option B
:hover the pseudo-class that should be used to perform this function.
Explanation:A CSS pseudo-class is a keyword attached to a selector that designates a specific state of the chosen element(s). The :hover pseudo-class is applied to style an element when the user’s pointer is over it. It mustn’t be limited to links, although that is the usual fair use case.
a:hover must appear after a:link and a:visited in the CSS definition to be powerful. It should resemble third in order (subsequent the :visited pseudo-class). Pseudo-class names are not case-sensitive. The syntax is
a:hover {
color: blue;
}
Final answer:
The pseudo-class :hover should be used to change the color of a link when the mouse pointer is over it, such as making the 'Home' link turn yellow on hover.
Explanation:
The correct pseudo-class to use for changing the appearance of a website link when the pointer is over it is :hover. The :hover pseudo-class applies a change in style when a user hovers their mouse over a certain element, without clicking it. So, if Samantha wants the color of the 'Home' link to turn yellow when someone moves the pointer over it, the CSS code would look something like this:
a:hover {
color: yellow;
}
This CSS code signifies that any anchor link (denoted by 'a') will turn yellow when the mouse is over it. The other pseudo-classes like :link is for unvisited links, :visited is for visited links, and :active is used when the link is being clicked.