Answer:
cash flow provided by operation 260,000
Explanation:
net income 200,000
adjustment for non-monetary terms: (A)
depreciation expense 60,000
loss on sale of land 15,000
adjusted net income 275,000
Change in working capital:
decrease in AR 30,000
Decrease in AP (45,000) (B)
net change in WC: (15,000) (C)
cash flow provided by operation 260,000
(A) we must focus on cahs movement so the depreciation and loss on sale which are non-mentary term. This are not related to cash
(B) the decrease in account receivable means we colelct from our customer more.
(C) the decrease in accounts payable represent we use more cash to pay up the suppliers
Suppose that you are president of the student government, and you have to decide how to allocate a $20,000 fund for guest speakers for the year. Conan O’Brien and Will Ferrell each cost $10,000 per appearance, Stephen Colbert costs $20,000 per appearance, and former economic advisers to the government charge $1,000 per lecture. Explain the economic problem of choice and scarcity in this case. What issues would you consider in arriving at a decision?
Economic resources are scarce, making each consumer face an individual budget constraint. So consumers should make choices that maximize their satisfaction in the face of their budget constraints. To make the choices, consumers use their preferences. In this matter, the student organization resources available for hiring speakers is $ 20,000. That means their budget constraint is $ 20,000. Then, they should choose, from the speakers that cost up to this value, the one that generates the greatest benefit for the student group. This is a choice based on group preferences.
Which of the following activities would be most useful in an efficient market.A) buying and holding a diversified portfolioB) searching for patterns in charts based on stock price movementsC) analyzing financial ratios based on accounting dataD) buying only securities that have performed well in the recent past
Answer: C) analyzing financial ratios based on accounting ratios
Explanation:
Match each of the financial statement items to its proper balance sheet classification. If the item would not appear on a balance sheet, use "Not Applicable." select a proper balance sheet classification Trademarks select a proper balance sheet classification Notes payable (current) select a proper balance sheet classification Interest revenue select a proper balance sheet classification Income taxes payable select a proper balance sheet classification Debt investments (long-term) select a proper balance sheet classification Unearned sales revenue select a proper balance sheet classification Inventory select a proper balance sheet classification Accumulated depreciation select a proper balance sheet classification Land select a proper balance sheet classification Common stock select a proper balance sheet classification Advertising expense select a proper balance sheet classification Mortgage payable (due in 3 years)
Answer:
The list is as follows:
Trademarks - Intangible Assets
Notes Payable (Current) - Current Liabilities
Interest Revenue - Not Applicable
Income Taxes Payable - Current Liabilities
Debt Investments (Long Term) - Long Term Investments
Unearned Sales Revenue - Current Liabilities
Inventory - Current Assets
Accumulated Depreciation - Property, Plant & Equipment
Land - Property, Plant & Equipment
Common Stock - Stockholders' Equity
Advertising Expense - Not Applicable
Mortgage Payable (due in 3 years) - Long Term Liabilities
Trademarks are classified as Intangible Assets, Notes payable (current) and Income taxes payable fit under Current Liabilities, while Common stock falls under Owners’ Equity on a balance sheet. Interest revenue and Advertising expense would not appear on a balance sheet, instead being listed on an Income Statement.
Explanation:The items on financial statements can be classified on a balance sheet as follows:
Trademarks - Intangible Assets Notes payable (current) - Current Liabilities Interest revenue - Not Applicable (it would be on an Income Statement) Income taxes payable - Current Liabilities Debt investments (long-term) - Long-Term Investments Unearned sales revenue - Current Liabilities Inventory - Current Assets Accumulated depreciation - Shown as a reduction to Property, Plant, and Equipment under Non-current Assets Land - Non-current Assets Common stock - Owners’ Equity Advertising expense - Not Applicable (it would be on an Income Statement) Mortgage payable (due in 3 years) - Non-current Liabilities Learn more about Balance Sheet Classification here:
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If Shawn can produce donuts at a lower opportunity cost than Sue, then ____
(A) Shawn has a comparative advantage in the production of donuts.
(B) Sue has a comparative advantage in the production of donuts.
(C) Shawn should not produce donuts.
(D) Shawn is capable of producing more donuts than Sue in a given amount of time
Answer:
(A) Shawn has a comparative advantage in the production of donuts.
Explanation:
Shawn renounce to less goods than Sue when producing donuts.
This meas, Shawn has a comparative advantage in the production of donuts as their cost from the economic point of view are lower.
This do not imply that Sue cannot outproduce Shawn, it means it cost her more than Shawn
For example, if Sue produce 10 Donuts, but to produce donuts resing to produce 20 of other goods, each donut has an opportunity cost of 2
While Shawn can produce 8 donuts and resing to produce 8 of other goods:
each donut has an opportunity cost of 1
Therefore, is better for the overall economy to Shawn produce donuts and trade with Sue for the other good.
Classify each cost of a paper manufacturer as either a product cost or a period cost: a. Salaries of scientists studying ways to speed forest growth. b. Cost of computer software to tract WIP Inventory. c. Cost of electricity at the paper mill. d. Salaries of the company's top executives. e. Cost of chemicals to treat the paper. f. Cost of TV ads. g. Depreciation on the manufacturing plant. h. Cost to purchase wood pulp. i. Life insurance on the CEO.
Answer:
Explanation:
Period costs and product costs are two classes of costs that are incurred in producing and selling a product or service.
Product costs are the direct costs involved in producing a product. A manufacturer, for example, would have production costs that include: Direct labor, Raw materials, Manufacturing supplies Overhead that's directly tied to the production facility such as electricity.
Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business. Period costs are not attached to one particular product or the cost of inventory like product costs.
In this exercise:
Product cost:
Cost of electricity at the paper mill.
Cost of chemicals to treat the paper.
Depreciation on the manufacturing plant.
Cost to purchase wood pulp.
Period cost:
Salaries of scientists studying ways to speed forest growth.
Cost of computer software to track WIP Inventory.
Salaries of the company's top executives.
Cost of TV ads.
Life insurance on the CEO.
Which of the following statements is true of international premium?
a. It is a pay raise for domestic employees.
b. It is the money paid to domestic firms by foreign firms.
c. It is the amount of money paid by international firms to government.
d. It is a significant pay raise a manager gets when working overseas.
Answer:
The correct option is (d)
Explanation:
Multinational corporations have operations across the globe. They send domestic employees to other locations for various purposes like providing training to the employees in the foreign location.
Sometimes, domestic employees have to stay and work in foreign companies for an indefinite period. In such cases, these employees are given significant raise in pay which is termed as international premium. It is a kind of incentive for working away from home country.
Final answer:
The true statement about international premium is that it's a significant pay raise given to a manager working overseas due to the extra challenges and costs associated with international assignments. Hence, the correct option is D.
Explanation:
The statement d. It is a significant pay raise a manager gets when working overseas is true of international premium. An international premium accounts for the additional compensation that managers or employees receive for taking on assignments in foreign countries, typically because of the added challenges and costs associated with living and working abroad. This may include, but is not limited to, the higher cost of living in the foreign country, cultural adjustments, and separation from family and friends.
Multinational corporations might find themselves in a position where they need to offer these premiums to attract managers and ensure that operations in other countries are run by competent individuals with the right skills and experience. Furthermore, managing overseas might involve dealing with different business practices, legal environments, and political risk, which justifies the higher pay.
Requirement 1. Record the foregoing transactions in the journal of BoldBold Interiors using the gross method. (You do not need to make the cost of sales journal entries; assume that these entries will be made by the company when it makes its other adjusting entries at period end.) (Record debits first, then credits. Exclude explanations from any journal entries.) MarMar 2: Sold merchandise on account to Toby BothwellToby Bothwell, $ 1 comma 000$1,000, terms 22/10, n/30.
Answer:
account receivables 1,000 debit
sales revenues 1,000 credit
Explanation:
We will recognize the revenue as the sales is performed we can conclude the transfer of goods had occurred so it is correct to recognize revenue.
Because this sales were on account, we have a right to claim the invoice to Mr. Bothwell so we will debit an asset account, which represent this: account receivable
On January 1, 2017, Leo paid $15,000 for 5 percent of the stock in BLS, an S corporation. In November, he loaned $8,000 to BLS in return for a promissory note. BLS generated a $600,000 operating loss in 2017. BLS generated $408,000 ordinary business income in 2018. How much of Leo’s share of this income is included in his 2018 taxable income?
Final answer:
Leo's share of the ordinary business income from BLS as a 5 percent shareholder would be 5 percent of the $408,000, resulting in $20,400 potentially included in his 2018 taxable income.
Explanation:
The student is asking how much of Leo's share of the ordinary business income from BLS in 2018 will be included in his 2018 taxable income. To calculate this, we first determine Leo's share of the income based on his ownership percentage in BLS. Since Leo owns 5 percent of the stock, his share of the $408,000 income would be 5 percent of that amount, which is $20,400. However, it is also necessary to ascertain whether the company's operating loss from 2017 affects the amount that could be included in Leo's taxable income for 2018. This would depend on the specific tax regulations regarding loss carryforwards for S corporations and Leo's basis, which could potentially change the amount that is taxable. Without specific rules on loss carryforwards and assuming Leo has enough basis, the entire $20,400 would be included in his taxable income for 2018.
Bank 1 lends funds at a nominal rate of 8% with payments to be made semiannually. Bank 2 requires payments to be made quarterly. If Bank 2 would like to charge the same effective annual rate as Bank 1, what nominal annual rate will they charge their customers? Round your answer to three decimal places. Do not round intermediate calculations.
Answer: 7.922%
Explanation:
Bank 1 lends at nominal rate of 8% and payments made is semiannually,
So,
Semiannual rate of bank 1 = 4%
Effective annual rate of Bank 1:
[tex]EAR=(1+half\ yearly\ rate)^{2}-1[/tex]
[tex]EAR=(1+0.04)^{2}-1[/tex]
= 8.16%
If Bank 2 wants to maintain the same level of EAR at quarterly compounding:
[tex](1+quarterly\ rate)^{4} =EAR+1[/tex]
[tex](1+quarterly\ rate)^{4} =8.16\ percent+1[/tex]
[tex](1+quarterly\ rate)^{4} =1.0816[/tex]
[tex](1+quarterly\ rate) =(1.0816)^{\frac{1}{4} }[/tex]
[tex](1+quarterly\ rate) =1.01980390271[/tex]
Quarterly rate = 1.01980390271 - 1
= 1.980390%
Nominal annual rate for Bank 2 = Quarterly rate × 4
= 1.980390% × 4
= 7.9215% or 7.922%
Final answer:
To have the same effective annual rate as Bank 1, Bank 2 needs to charge a nominal annual rate of approximately 8.243% with quarterly compounding.
Explanation:
The question asks how to find the nominal annual rate that Bank 2 should charge to have the same effective annual rate as Bank 1, which lends funds at a nominal rate of 8% with semiannual compounding. First, we calculate the effective annual rate (EAR) for Bank 1 using the formula [tex]EAR = (1 + i/n)^n - 1[/tex], where i is the nominal interest rate and n is the number of compounding periods per year. For Bank 1, [tex]EAR = (1 + 0.08/2)^2 - 1 = 0.0816 or 8.16%.[/tex] To find the nominal annual rate for Bank 2 with quarterly compounding that results in the same EAR, we rearrange the EAR formula to solve for [tex]i: i = n*((EAR + 1)^{(1/n)} - 1)[/tex]. Substituting the values for Bank 2, we get [tex]i = 4*((1.0816 + 1)^{(1/4)} - 1),[/tex] which calculates to approximately 8.243% as the nominal annual rate Bank 2 should charge.
Here are incomplete financial statements for BLOSSOM, Inc. Calculate the missing amounts
BLOSSOM, INC. Balance Sheet
Assets
Cash $ 7,000
Inventory 10,000
Buildings 45,000
Total assets $62,000
Liabilities and Stockholders' Equity
Liabilities
Accounts payable $ 5,000
Stockholders' Equity
Common stock
Retained earnings
Total liabilities and stockholders' equity $62,000
BLOSSOM, INC. Income Statement
Revenues $85,000
Dost of goods sold
Salaries and wages expense 10,000
Net Income
DONAVAN, INC. Retained Earnings Statement
Beginning retained earnings $12,000
Add: Net income
Less: Dividends 5,000
Ending retained earnings $27,000
Financial statements
Financial statements are compiled at the end of accounting periods to report on the performance on the company over the period and the state its assets and liabilities at the end of the period.
Answer:
(A) net income: 20,000
(B) COGS = 55,000
(C) Common Stock = 30,000
Explanation:
(A) with the RE statemtn we sovle for RE
net income = ending RE - beginning RE + dividends
net income = 27,000 - 12,000 + 5,000 = 20,000
(B) With the net income we solve for COGS
COGS= revenues - net income - salaries and wages
COGS = 85,000 - 20,000 - 10,000 = 55,000
(C) now we solve for common stock
liab + equity = total liab and stockholders equity
account payable + common stock + RE = total liab and stockholders equity
5,000 + CS + 27,000 = 62,000
CS = 62,000 - 27,000 - 5,000 = 30,000
Which of the following factors does not contribute to the development of trust between negotiators? Select one: a. We are more likely to trust someone we perceive as similar to us or as holding a positive attitude toward us. b. We often mistrust people who are dependent upon us because we are in a position to help or hurt them. c. We are more likely to trust people who initiate cooperative, trusting behavior. d. We are more likely to trust negotiators who make concessions. e. All of the above contribute to the development of trust between negotiators.
Answer:
b. We often mistrust people who are dependent upon us because we are in a position to help or hurt them.
Explanation:
There is a normal tendency in humans, to respect someone and agree to the opinion of an individual, having more knowledge and have a positive outlook, towards us, and to normal life.
Whenever there is an individual who is junior to us, or in any manner moves under our leadership, and we have a strong influence on such person, then there are major chances that we will not build a strong trust with them.
As because that person is influenced by us and does not put his own opinion, and accordingly, it will negatively impact us, as no decision would be agreed based on his opinion.
A relatively steep demand curve indicates that a. quantity demanded will not adjust to a price change. b. quantity demanded will adjust only slightly to a price change. c. quantity demanded will adjust significantly to a price change. d. the change in quantity demanded will exactly equal a change in price.
Answer:
there were extreme changes to their lives
Explanation:
When computing the opportunity cost of attending a concert you should include Select one: a. the price you pay for the ticket and the value of your time. b. the price you pay for the ticket, but not the value of your time. c. the value of your time, but not the price you pay for the ticket. d. neither the price of the ticket nor the value of your time.
Answer: c. the value of your time, but not the price you pay for the ticket.
Explanation: The opportunity cost is the alternative cost we waive when we make a decision, including the benefits we could have obtained from choosing the alternative option. Saying this, the opportunity cost would be the time invested in the concert, since we could have gone to do other activities at that time.
Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 295 per day, and it uses these subcomponents at a rate of 12 comma 700 per year (of 250 working days). Holding costs are $2 per item per year, and ordering costs are $29 per order. a) What is the economic production quantity? nothing units (round your response to two decimal places).
Answer: 666.13 units
Explanation:
Given that,
Production Per day (P) = 295
Usage rate of sub-components (D) = 12,700 per year (250 working days)
Holding cost (H) = $2 per item
Ordering costs (S) = $29 per order
[tex]d = \frac{D}{250}[/tex]
[tex]d = \frac{12,700}{250}[/tex]
= $50.8
[tex][1-\frac{d}{P}]=[1-\frac{50.8}{295}][/tex]
= 1 - 0.1722
= 0.8278
= 0.83
[tex]Economic\ production\ Quantity=\sqrt{\frac{2\times D\times S}{H\times[1-\frac{d}{P}] }}[/tex]
[tex]Economic\ production\ Quantity=\sqrt{\frac{2\times 12,700\times 29}{2\times 0.83 }}[/tex]
[tex]=\sqrt{443,734.94}[/tex]
= 666.13 units
The Economic Production Quantity (EPQ) for Race One Motors, given the provided variables for demand rate, setup cost, annual holding cost, and production rate, is approximately 1517.87 units.
Explanation:The economic production quantity (EPQ) is calculated to determine the quantity of an item that should be produced in a single batch. This allows manufacturers to minimize the total cost of production, which commonly includes holding and setup costs. In the case of Race One Motors, we will consider the demand rate (D) to be 12,700 units per year, the setup cost (S) as $29 per order, annual holding cost (H) as $2 per item, and production rate (P) as 295 per day multiplied by 250 working days.
The formula for EPQ is: √[(2DS/H)(P/(P-D))]. Inserting the provided variables, we get: √[(2*12700*29/2)*(295*250/(295*250-12700))] = 1517.87 units. Rounded to two decimal places, we find that the economic production quantity is 1517.87 units.
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in 2 hrs, Whitney can make 4 dozen cookies or 2 peach tarts. Her friend, Amy, can make 7 dozen cookies or 1 peach tart.
If Whitney, specializes in cookies and Amy specializes in peach tarts, total production of cookies will be __ dozen cookies , and total production of peach tarts will be __ peach tart.
Answer: 4 dozen cookies and 1 peach tart
Explanation:
Whitney can make:
4 dozen cookies or 2 peach tarts in 2 hours
Amy can make:
7 dozen cookies or 1 peach tart in 2 hours
Here, we assume that there is only 2 hours of production
Cookies:
If Whitney specialize in cookies and there is no production of tart but only the production of cookies by Whitney, then,
Total production of cookies = 4 dozen cookies
Tart:
If Amy specialize in peach tart and there is no production of cookies but only the production of peach tart by Amy, then,
Total production of peach tart = 1 peach tart
Jean’s Vegetable Market had the following transactions during 2017: Issued $50,000 of par value common stock for cash. Repaid a 6-year note payable in the amount of $22,000. Acquired land by issuing common stock of par value $100,000. Declared and paid a cash dividend of $2,000. Sold a long-term investment (cost $3,000) for cash of $8,000. Acquired an investment in IBM stock for cash of $15,000. What is the net cash provided used by investing activities?
Answer:
net cash used by investing activities 7,000
Explanation:
investing activities:
proceeds from sale of investment 8,000
purchase of investment (15,000)
net cash used by investing activities 7,000
notes:
While the purhcase of land can be considered an investing activity notice it was paid with stocks not cash so it is ignored in the cash flow statement.
Same occurs with the gain on the investment as we have the atention on cash movement we record the cash inflow for 8,000 regardless of the amount loss or earned in the transaction.
The stock related transactions and the cash dividends are part of the financing activities.
In 2017, Jean’s Vegetable Market has a net cash of -$7,000 from investing activities. The transactions relating to investing activities include selling a long-term investment and acquiring an investment in IBM stock.
Explanation:The concept of financial cash flows can be divided into three categories: operating, financing, and investing activities. To find the net cash provided by investing activities, we need to focus on the transactions that involve long-term assets.
Jean's Vegetable Market's investing activities are: Selling a long-term investment (cash gain $8,000), acquiring an investment in IBM stock (cash loss $15,000). So, Net cash = $8,000 - $15,000 = -$7,000. This means $7,000 cash was used or lost in investing activities during 2017.
Please note, the other transactions are not direct investing activities. For example, issuing common stock and dividends are financing activities, not investing ones. And the repayment of a note payable is also a financing activity.
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The following data were taken from the financial statements of The Amphlett Corporation, which is all equity financed. 2012 2013 Net sales $147,860 $163,585 Net income 26,765 30,340 Total assets 191,225 212,440 Shareholders' equity 101,975 121,165 Required Calculate the following ratios for 2012 and 2013: 2012 2013 a. Return on equity (round to one decimal place) Answer 0 % Answer 0 % b. Return on assets (round to one decimal place) Answer 0 % Answer 0 % c. Return on sales (round to one decimal place) Answer 0 % Answer 0 % d. Total assets to shareholders' equity (financial leverage) (round to two decimal places) Answer 0 Answer 0 e. Asset turnover (round to two decimal places) Answer 0 Answer 0
Answer:
2012 - 2013
a. Return on equity 26,2% - 25,0%
b. Return on assets 14,0% - 14,3%
c. Return on sales 18,1% - 18,5%
d. Total assets to shareholders' equity 1,88 - 1,75
e. Asset turnover 0,77 - 0,77
Explanation:
2012 2013
TOTAL ASSETS $191.225 $212.440
TOTAL EQUITY $101.975 $121.165
Income Statement 2012 2013
Sales $147.860 163.585
Net Income after Taxes $26.765 30.340
The Smelting Department of Kiner Company has the following production data for November. Production: Beginning work in process 3,700 units that are 100% complete as to materials and 29% complete as to conversion costs; units transferred out 9,300 units; and ending work in process 9,100 units that are 100% complete as to materials and 40% complete as to conversion costs. Compute the equivalent units of production for (a) materials and (b) conversion costs for the month of Novomber.
Answer:
(A) 18,400 units
(B) 12,940 units
Explanation:
The computation of the equivalent units of production for
(A) Material = Units transferred out + Ending work in process
= 9,300 units + 9,100 units
= 18,400 units
(B) Conversion = Units transferred out + (Ending work in process × conversion percentage)
= 9,300 units + 9,100 units × 40%
= 9,300 units + 3,640 units
= 12,940 units
The equivalent units of production are the number of units a manufacturing unit must produce to meet up the set criteria by the managers. It takes into consideration the cost of raw material, direct labor, and manufacturing overhead cost that is incurred during the specified period of time.
A. the equivalent units of production for material is 18,400 units.
B. the equivalent units of production for conversion costs for the month of November is 12,940 units.
Computation:
A.
[tex]\text{Material} = \text{Units transferred out + Ending work in process} = 9,300 units + 9,100 units = 18,400 units[/tex]
B.
[tex]\begin{aligned}\text{Conversion}&= \text{Units transferred out}\\&+\text{(Ending work in process}\times\text{conversion percentage)}\\&= 9,300\;\text{units} + (9,100 \; \text{units} \times40\%)\\&=9,300 \; \text{units} + 3,640 \;\text{units}\\&= 12,940\; \text{units}\end{aligned}[/tex]
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Advanced Health determines that services for $1,800 had been provided and the client had not paid at the time the services were performed. The transaction was not recorded during the year. Record the required adjusting entry related to the external journal entry.
Answer:
Debit to Accounts Receivable $1,800; Credit to Service Revenue $1,800
Explanation:
The debit is "Accounts Receivable" since Advanced Health is yet to collect payment from the client.
Now, the credit would be "Service Revenue" since Advanced Health had already provided the services.
In accrual accounting, whenever services have already been rendered, regardless of when it is collected, we have to record the revenue.
In this case it will be called "Service Revenue" since the company is rendering services.
Concord Corporation had the following records:
2017 2016
Ending inventory $37650
$39490
Cost of goods sold 235600 226490
What is Concord average days in inventory for 2017? (rounded) (Use 365 days for calculation.)
Answer:
Inventory days for 2017 = 60 days
Explanation:
Inventory days = [tex]\frac{365}{Inventory\ Turnover}[/tex]
For this, firstly we will calculate average inventory.
Average Inventory = [tex]\frac{Starting\ Inventory + Closing\ Inventory}{2}[/tex]
Here, starting inventory = $39,490
Closing inventory = $37,650
Average Inventory = [tex]\frac{39,940 + 37,650}{2} = 38,795[/tex]
Inventory Turnover = [tex]\frac{Cost\ of\ goods\ sold}{Average\ Inventory}[/tex]
= [tex]\frac{235,600}{38,795} = 6.0729[/tex]
Inventory days = [tex]\frac{365}{6.0729} = 60.10[/tex]
Rounded inventory days = 60 days.
You wish to buy a cabin in 15 years. TODAY, the cabin costs $150,000. You believe the price of the cabin will inflate at 4% annually. You want to invest a single amount of money (lump sum) today and have the money grow to equal the future purchase price of the cabin 15 years from now. If you can earn 10% annually on your investments, how much do you need to invest NOW, in order to be able to purchase the cabin?
Answer:
I will need to invest 64,669.73 dollars now.
Explanation:
We will calcualte the future value of the cabin considering the inflation:
[tex]Principal \: (1+ inflation )^{time} = Amount[/tex]
Principal 150,000.00
time 15 years
inflation 0.04000
[tex]150000 \: (1+ 0.04)^{15} = Amount[/tex]
Amount 270,141.53
Then we calculate the present value of the lump sum at 15 years discounted at 10% which is the yield of the funds
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 270,141.53
time 15 years
rate 0.10
[tex]\frac{270141.53}{(1 + 0.1)^{15} } = PV[/tex]
PV 64,669.73
we would need to deposit 64,669.73 today to get enough cash to purchase the bcabin in 15 years.
In the JK partnership, Jacob's capital is $140,000, and Katy's is $40,000. They share income in a 3:2 ratio, respectively. They decide to admit Erin to the partnership. Each of the following questions is independent of the others.
Refer to the information provided above. Erin directly purchases a one-fifth interest by paying Jacob $33,000 and Katy $9,000. The land account is increased for its implied increase in value before Erin is admitted. By what amount is the land account increased?
A. $20,000
B. $24,000
C. $30,000
D. $36,000
Answer:
C. $ 30,000
Explanation:
The total amount Erin paid = $ 33000 + $ 9000
= $ 42000
for a one-fifth stake in the partnership, the capital increases to:
5* 42000 = $ 210000
the land account increased by = final capital - initial capital
= $ 210000 - ($ 140000 + $ 40000)
= $ 30000
Therefore, the land account increased by $ 30000.
An analysis and aging of Jay Co.’s accounts receivable at December 31 disclosed the following:Accounts receivable $900,000 Allowance for uncollectible accounts, per books 50,000 Amounts deemed uncollectible 64,000 The net realizable value of the accounts receivable at December 31 should be _____
Answer:
Net Realizable balance of accounts receivables = $836,000
Explanation:
As for the provided information, we have:
Balance of accounts receivables = $900,000
This balance represents the total amount which is to be received by the company from the debtors as debtors owe this amount to company.
Allowance for un-collectible receivables = $50,000
This balance clearly represents the amount which the company will not be able to collected and this is now accounted for, through a credit account allowance for un-collectible receivables.
Further it is provided that, the deeming amount of un-collectibles = $64,000.
Now this shall clearly represent the net and final amount which the company would not be able to collect. The above balance of $50,000 is un-adjusted balance.
Therefore, net collectible or we can say realizable balance of accounts receivables = $900,000 - $64,000 = $836,000.
Final answer:
Explaining how to calculate the net realizable value of accounts receivable by considering the allowance for uncollectible accounts.
Explanation:
Allowance for uncollectible accounts is a reserve set up by businesses to reflect the amount of accounts receivable that will likely not be collected. In this case, with an accounts receivable of $900,000 and deemed uncollectible amounts of $64,000, the net realizable value would be $836,000 ($900,000 - $64,000).
What would be the net annual cost of the following checking accounts?
a. Monthly fee, $4.25; processing fee, 50 cents per check; assume checks written average to 16 per month.
b. Interest earnings of 5 percent with a $500 minimum balance; average monthly balance, $8000; monthly service charge of $12 for falling below the minimum balance, which occurs five times a year (no interest earned in these months).
Answer:
Option B is the better as it generates cash for 173 dollars rather than generating a cost $12.25
Explanation:
option A
monthly fee: 4.25
50 cent per check
total cost: 0.50x + 4.25
if 16 check are written per month:
0.50 (16) + 4.25 = 8 + 4.25 = 12.25
option b
the year has 12 months, during five months we will pay the service charge:
$12 x 5 month = $60
during the other 7 months, we accrued (earn) interest:
8,000 x 7 months x 5%
8,000 x 7/12 x 5% = 233,33
We receive 233 interest - 60 serive charge: 173 dollars
Option B is the better as it generates cash for 173 dollars rather than generating a cost $12.25
In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Each of the following questions is independent of the others.
Refer to the information provided above. Allen and Daniel agree that some of the inventory is obsolete. The inventory account is decreased before David is admitted. David invests $40,000 for a one-fifth interest. What is the amount of inventory written down?
A. $4,000
B. $20,000
C. $15,000
D. $10,000
Answer:
B. $20,000
Explanation:
40,000 = a fifth
so ther parthnership capital should equal to
40,000 / (1/5) = 200,000
But the current sum of the capital without adjustment is:
Capital 140,000 + 40,000 + 40,000 = 220,00
to make it balance, the inventory must has been written down by 20,000
this difference was taken by the prevous partner Allen and Daniel.
Which of the following statements is true of the second tier of the global economy pyramid?
a. It consists of a billion people making $2,000 to $20,000 a year.
b. It mostly consists of people who live in the developed economies.
c. It mostly consists of people who live in North America, Western Europe, and Japan.
d. It consists of the vast majority of the people who make less than $2,000 a year.
Answer:
a. It consists of a billion people making $2,000 to $20,000 a year.
Explanation:
The global economy pyramid is divided into three levels, which are called three tiers.
Under tier 1 only people having income more than $20,000 are present, and generally they live in developed economies, like: Western Europe, Japan, etc:
Under tier 2 people having income more than $2,000 and less than $20,000 are found, these are around 1 billion in population.
Under tier 3 maximum population lives, which is approximately 4 billion people.
Therefore, the correct statement is :
a. It consists of a billion people making $2,000 to $20,000 a year.
Sally purchased a log-splitter five years ago. This year, she purchases some new parts, gasoline, oil, and spends 2 hours repairing the log-splitter. Which of the following is included in this year's GDP?
a. the amount she paid to buy the new parts
b. the amount she paid to buy new parts and gasoline
c. the amount she paid to buy new parts, gasoline, and oil.
d. the amount she paid to buy new parts, gasoline, oil, and the market value of the 2 hours spent to repair the log-splitter.
Answer:
C
Explanation:
The GDP or gross domestic product measures the market value of all goods and services produced in country in a specific period of time. This year GDP should not include the log-splitter because Sally purchased it five years ago. We should include this year purchases: new parts, gasoline, oil. Also, we should include the market value of the 2 hours she spent repairing the log-splitter if she paid someone to do it or if someone paid her to do it, because this is a service. But the problem suggests that she repaired her own log-splitter, then we should not include it this year GDP.
Option (d) is included in this year's GDP because it represents the market value of final goods and services. GDP measures the total value of all final goods and services produced within a country's borders during a specified period.
Explanation:Option (d) is included in this year's GDP. GDP (Gross Domestic Product) measures the total value of all final goods and services produced within a country's borders during a specified period. The amount Sally paid to buy new parts, gasoline, oil, and the market value of the 2 hours spent repairing the log-splitter are considered as final goods and services, and therefore, included in GDP.
In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the "terminal" stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.17. The dividends are expected to grow at 12 percent over the next five years. The company has a payout ratio of 40 percent and a benchmark PE of 19. The required return is 12 percent. What is the target stock price in five years?
What is the stock price today?
The target stock price in five years is $51.11. The stock price today is $32.65.
Explanation:To find the target stock price in five years, we need to calculate the future dividends and the terminal stock price. First, we calculate the future dividends using the formula:
Dn = D0(1+g)n, where D₀ is the current dividend, g is the growth rate, and n is the number of years.
Plugging in the values, we get: D₅= 1.17(1+0.12)5 = $2.69.
Next, we calculate the terminal stock price using the formula:
Pt = Dₙ(PE ratio), where Dₙ is the future dividend and the PE ratio is the benchmark.
Plugging in the values, we get Pt = 2.69(19) = $51.11. Therefore, the target stock price in five years is $51.11.
To find the stock price today, we need to discount the future dividends and the terminal stock price back to the present using the required return rate. First, we discount each future dividend using the formula: PV = D/(1+r)n, where PV is the present value, D is the future dividend, r is the required return rate, and n is the number of years. Plugging in the values, we get PV₅ = 2.69/(1+0.12)5 = $1.38.
Next, we discount the terminal stock price using the same formula: PVt = Pt/(1+r)n, where PVt is the present value of the terminal stock price.
Plugging in the values, we get: PVt = 51.11/(1+0.12)5 = $25.03.
Finally, we add up the present values of the dividends and the terminal stock price to get the stock price today: Stock Price Today = PV₁ + PV₂+ PV₃ + PV₄ + PV₅ + PVt = $1.17 + $1.25 + $1.34 + $1.43 + $1.53 + $25.03 = $32.65. Therefore, the stock price today is $32.65.
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To calculate the target stock price in five years, the expected dividends are grown at 12% annually over five years and then multiplied by the benchmark PE ratio of 19 to determine the terminal stock price. The stock price today is found by discounting these future dividends and the terminal price back to present value at the required return rate of 12%.
Explanation:To determine the value of a share of stock when a company pays dividends, we use the Dividend Discount Model (DDM). Given a current dividend of $1.17 that grows at 12% for the next five years, we can calculate the expected dividends for the next five years. To find the terminal stock price, also known as the Price Next Year, we use the specified benchmark PE ratio.
The formula to estimate expected dividends at each year (D1, D2, D3, ..., D5) is:
Once we have the expected dividend for the fifth year (D5), the terminal stock price (P5) is estimated by multiplying D5 by the benchmark PE ratio. Next, to bring these future cash flows back to the present value, we use the required return rate as the discount rate, which is given as 12%.
The present value of dividends (PV) is calculated as follows:
To find the stock price today, we sum the present values of the expected dividends for the next five years, and add to this sum the present value of the terminal stock price.
A supplier's bargaining position is especially strong when: A. many sources of the supply exist. B. other materials can be substituted for their specific supply. C. the supply is vital to the organization. D. the supply is free. E. the supply is not protected by patent.
Answer:
C. the supply is vital to the organization.
Explanation:
Bargaining is the act of exchanging, whether fraudulently or not, an object for another; It is the strength of a person or group when discussing prices, putting pressure and demanding, for example, higher quality at a lower price. A supplier's bargaining position is especially strong when supply is vital to the organization, because the organization will need to buy that supply regardless of the price the supplier requests.
A radio talk show host asked listeners to respond either yes or no to the question, "Is the candidate who spends the most on a campaign the most likely to win?" Fifteen people called in and nine said yes. What is the implied population?(A) all callers(B) all adults(C) all radio listener(D) all listeners of the radio talk show
Answer: All listeners of the radio talk show
Explanation: In simple words, the part of the population that could be used for the research conducted is called the implied population of such research.
In the given case, all the listeners were the implied population as every one had the chance to participate. The callers are the sample of the population. Sample refers to the part of population actually used in the conduct of research.
Hence from the above we can conclude that the correct option is D.