Answer:
Most auctions are without reserve and therefore the auctioneer cannot withdraw the lamp.
Explanation:
Every auction seems to be either "of-reserve" versus "without-reserve." So the reaction to whether an auction house manages higher bids depends on that form of bidding being carried out. In an offering with reserves, the auction house may reject a higher offer (retain the privilege to reject ...) in which any better bid should be approved in an offering without deposit.
Put differently, the auction house is not obliged to deliver to the top purchaser in a with reserved sale. Essentially, the next bigger raise reflects the minimum price.
John Jones has both a cash account and an IRA account at your firm. Mr. Jones calls and asks that 2,000 shares of DEF stock be purchased at the market in his IRA account. The trade is executed, however the transaction was recorded in Mr. Jones' cash account. The proper procedure to correct this is to:
Answer:
FINRA requires that whenever there is a change of account name or designation relating to an executed order, this said change has to be put into writing. The process is called a "Cancel-Rebill" record. The branch manager or compliance officer in charge must be made aware of the reasons for the change and must tender an approval for the change in writing. This said record must be developed for any change of account designation - even for something as little as moving a trade from a customer's cash account to the same customer's IRA account.
The model of competitive markets relies on these three core assumptions: 1. There must be many buyers and sellers—a few players can't dominate the market. 2. Firms must produce an identical product—buyers must regard all sellers' products as equivalent. 3. Firms and resources must be fully mobile, allowing free entry into and exit from the industry.
Answer:
A Perfectly competitive market
Explanation:
To answer the question above, the model of competitive market is called A Perfectly competitive market.
A perfectly competitive market is a hypothetical market where competition is at it's greatest possible level. Neo-classical economist argued that perfect competition would produce the best possible outcomes for consumers, and society.
An industry structure in which there are many firms, none large enough to influence the industry, producing homogeneous products. Firms are price takers. There are no barriers to entry . Agriculture comes close to being perfectly competitive.
General Food Stuffs packages a variety of breakfast cereals and snack bars, which it aggregates as simply units of sale when doing medium-term planning. General Food Stuffs has created the following aggregate plan for the next 3 months: Month 1 Month 2 Month 3 Beginning Inventory 5,000 Forecast (units of sale) 28,000 29,000 30,000 Overall Production 30,000 30,000 30,000 Ending Inventory Regular Production ($2/unit) Overtime Production ($3/unit) General Food Stuffs can produce up to 20,000 units of sale a month in regular time, when production costs are only $2 per unit of sale. When General Food Stuffs has to exceed 20,000 units of sale in a single month, all units of sale in excess of 20,000 must be produced in overtime production at a cost of $3 per unit of sale. What is the cost of overtime production for Month 3?
Answer:
$30,000
Explanation:
Month 1 Month 2 Month 3
Beginning Inventory 5,000 7,000 8,000
Forecast (units of sale) 28,000 29,000 30,000
Overall Production 30,000 30,000 30,000
Ending Inventory 7,000 8,000 8,000
since the company can produce 20,000 units during regular time, and all excess units will count as overtime, then the overtime costs for any of the three months = (overall production - regular production) x overtime costs = (30,000 - 20,000) x $3 = 10,000 x $3 = $30,000.
The overtime production is the same for the three months since budgeted total production is 30,000 units which exceeds the regular production by 10,000 each month.
The owner of a car wash wants to see if the arrival rate of cars follows a Poisson distribution. In order to test the assumption of a Poisson distribution, a random sample of 150 ten-minute intervals was taken. You are given the following observed frequencies:
Number of Cars Arriving in a 10-Minute Interval Frequency
0 3
1 10
2 15
3 23
4 30
5 24
6 20
7 13
8 8
9 or more 4
150
The calculated value for the test statistic equals:_______
Answer:
4.832
Explanation:
See attached file
Mountain Sports, Inc., is a retailer that has engaged you to assist in the preparation of its financial statements at December 31, 2018. Following are the correct adjusted account balances, in alphabetical order, as of that date. Each balance is the "normal" balance for that account. (Hint: The "normal" balance is the same as the debit or credit side that increases the account.) Accounts payable $ 13,450 Accounts receivable 2,700 Accumulated depreciation: office equipment 12,100 Additional paid-in capital (common stock) 7,300 Bonds payable (due December 31, 2021) 23,400 Cash 14,400 Common stock (2,600 shares, $10 par value) 26,000 Cost of goods sold 109,000 Deferred income taxes 6,150 Depreciation expense: office equipment 2,600 Dividends declared 4,400 Income tax expense 7,990 Insurance expense 830 Land 39,200 Merchandise inventory 20,300 Notes payable (due December 31, 2019) 2,600 Office equipment 42,300 Office supplies 840 Office supplies expense 470 Preferred stock (300 shares, $20 par value) 6,000 Premium on bonds payable 2,100 Prepaid rent 1,200 Rent expense 5,800 Retained earnings (January 2018) 21,300 Salaries expense 87,620 Sales 226,500 Sales returns and allowances 1,900 Sales taxes payable 3,200 Treasury stock (400 common shares at cost) 4,500 Utilities expense 4,050 b. Prepare a statement of retained earnings for the year ending December 31, 2018.
Answer:
The financial statement of an enterprise consists usually of:
An income statement
A statement of retained earnings
A cash flow statement
And a statement of financial position.
This has been fully presented in the attached documents
To prepare a statement of retained earnings, start with the opening balance then adjust it for the net income or loss during the year and any dividends declared. Create the statement in three steps: sum up the revenue and expenses to determine net income, and then subtract any dividends from this.
Explanation:To create a statement of retained earnings for Mountain Sports Inc., we need to consider the opening balance in the retained earnings account, then adjust this for the net income or loss during the year and any dividends paid out.
Start with the retained earnings at the beginning of the year, which is $21,300. Then, determine the net income. The net income is calculated as sales of $226,500 minus expenses (cost of goods sold of $109,000, depreciation expense on office equipment of $2,600, insurance expense of $830, rent expense of $5,800, utilities expense of $4,050, office supplies expense of $470, and salaries expense of $87,620) and the income tax expense of $7,990. Sierra sales returns and allowances of $1,900 will also be subtracted from sales.
The final step is to subtract dividends declared of $4,400 to arrive at the retained earnings at year-end.
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The data given below are from the accounting records of the Kuhn Corporation:
Net Income (accrual basis) $61,000
Depreciation Expense $17,000
Decrease in Accounts Payable $3,300
Decrease in Inventory $3,800
Increase in Bonds Payable $18,000
Sale of Common Stock for cash $31,600
Increase in Accounts Receivable $6,100
Based on this information, the net cash provided by (used in) operating activities using the indirect method would be:________
Answer:
$72,400
Explanation:
The preparation of the Cash Flows from Operating Activities - Indirect Method is presented below:
Cash flow from Operating activities - Indirect method
Net income $61,000
Adjustment made:
Add : Depreciation expense $17,000
Less: Increase in accounts receivable -$6,100
Add: Decrease in inventory $3,800
Less: Decrease in accounts payable -$3,300
Total of Adjustments $11,400
Net Cash flow provided Operating activities $72,400
The items in minus sign reflects the cash outflow and the items in plus sign shows the cash inflow
Tasty Subs acquired a delivery truck on October 1, 2021, for $18,500. The company estimates a residual value of $1,700 and a six-year service life. It expects to drive the truck 140,000 miles. Actual mileage was 4,400 miles in 2021 and 17,800 miles in 2022. Required: Calculate depreciation expense using the activity-based method for 2021 and 2022, assuming a December 31 year-end. (Do not round your intermediate calculations.)
Answer:
2021 Depreciation expense is $528
2022 Depreciation expense is $2,136
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset .
Depreciable value = $18,500 - $1,700
= $16,800
Depreciation expense using the activity-based method for
2021
= 4,400/140,000 * $16,800
= $528
2022
= 17,800/140,000 * $16,800
= $2,136
Larry recorded the following donations this year: $510 cash to a family in need $2,410 to a church $510 cash to a political campaign To the Salvation Army household items that originally cost $1,210 but are worth $310. What is Larry's maximum allowable charitable contribution if his AGI is $60,100?
Answer:
$2,720
Explanation:
A charitable contribution can be defined as the way in which a person or an individual
try to donate his or her own money , goods or services to an organization thereby deducting the market value of this contribution from the person income tax return.
$2,410 to a church
Household items worth of $310
Total $2,720
Therefore Larry maximum allowable charitable contribution if his AGI is $60,100 is $2,720
Hypothetical Country has $120 in currency, $280 in reserves, and $900 in deposits. There are no excess reserves. Use this information to answer the questions. Enter your answers in decimal form rounded to two decimal places. Calculate the money multiplier. money multiplier: Calculate the reserve ratio. reserve ratio: Calculate the currency drain ratio. currency drain ratio:
Answer:
Reserve ratio = 31.11%
Currency drain ratio = 13.33%.
Explanation:
Reserve ratio = Reserves/Deposits = $280/$900 = 0.3111, or 31.11%
Currency drain ratio = Currency/Deposits = $120/$900 = 0.1333, or 13.33%
Therefore, reserve ratio is 31.11%, and currency drain ratio is 13.33%.
The current controllable margin for Henry Division is $138000. Its current operating assets are $300000. The division is considering purchasing equipment for $90000 that will increase annual controllable margin by an estimated $5000. If the equipment is purchased, what will happen to the return on investment for Henry Division
Answer:
The correct answer is Decrease ROI by 9.33%.
Explanation:
According to the scenario, the computation of the given data are as follows:
First we calculate return on investment before purchase:
Return on investment = (Controllable Margin ÷ Operating assets ) × 100
= ($138,000 ÷ $300,000) × 100
= 46%
Controllable margin (New) = $138,000 + $5,000 = $143,000
Operating assets = $300,000 + $90,000 = $390,000
Return on investment (New) = ($143,000 ÷ $390,000) × 100
= 36.67%
So, change in ROI = 36.67 % - 46%
= - 9.33% ( Negative shows decrease )
Hence, Decrease ROI by 9.33%.
Sam and Sarah, husband and wife, both worked for an aluminum siding firm, doing similar work in production. Their co-worker, Ahmed, who was a Muslim, was systematically harassed by their supervisor, who called him a terrorist, denied him the right to pray, and generally made his life at work very difficult. Sarah spoke up on his behalf, and the supervisor demoted Sam, her husband. Which of the following statements is most correct
a. Ahmed has a cause of action against the employer for retaliation, but Sam does not
b. Sarah has a cause of action against the employer for retaliation, but Sam does not
c. Sam has a cause of action against the employer for retaliation
d. There are no causes of action arising from this set of facts
Answer:
Answer is C
Explanation:
Sam has a cause of action against the employer for retaliation.
Answer:
give this answer a "thanks " or i wont help
Explanation:
Assume the supply curve for cigars is a typical, upward-sloping straight line, and the demand curve for cigars is a typical, downward-sloping straight line. Suppose the equilibrium quantity in the market for cigars is 1,000 per month when there is no tax. Then a tax of $0.50 per cigar is imposed. The effective price paid by buyers increases from $1.50 to $1.90 and the effective price received by sellers falls from $1.50 to $1.40. The government's tax revenue amounts to $475 per month. Which of the following statements is correct? O The deadweight loss of the tax is $12.50. The demand for cigars is less elastic than the supply of cigars.O The tax causes a decrease in consumer surplus of $390 and a decrease in producer surplus of $97.50. All of the above are correct.
Answer:
The correct answer is The deadweight loss of the tax is $12.50.
Explanation:
According to the scenario, the computation of the given data are as follows:
First we calculate the quantity sold after tax
So, Quantity sold after tax = Tax revenue ÷ Tax
Quantity sold after tax= $475 ÷ 0.50
= 950 units
Equilibrium quantity before tax = 1,000 units.
After tax, the price to buyers increases from 1.50 to 1.90
And, the price which sellers receive decrease from 1.50 to 1.40.
So, we can calculate the dead weight loss by using following formula:
Dead weight loss= 1/2 × Change to buyers × Change to sellers
=0.5 × (1.90 - 1.40)×( $1000 - $950)
=0.5 × 0.50 × $50
=$12.50
The correct statement is that the deadweight loss of the tax is $12.50 and that the demand for cigars is less elastic than the supply of cigars.
Explanation:The correct statement is that the deadweight loss of the tax is $12.50 and that the demand for cigars is less elastic than the supply of cigars.
When a tax of $0.50 per cigar is imposed, the effective price paid by buyers increases from $1.50 to $1.90, while the effective price received by sellers falls from $1.50 to $1.40. The tax revenue is $475 per month. The deadweight loss of the tax is the difference between the quantity sold in the absence of the tax and the actual quantity sold after the tax is imposed, multiplied by the difference in the price received by sellers and the price paid by buyers. In this case, the deadweight loss is equivalent to (1,000 - 475) x (1.50 - 1.40) = $12.50.
In addition, the demand for cigars is less elastic than the supply because the increase in price for buyers is greater than the decrease in price for sellers. This means that buyers are less responsive to the change in price compared to sellers. The demand curve is steeper than the supply curve, indicating a less elastic demand.
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Obj. 2Waylander Coatings Company purchased waterproofing equipment on January 6 for $320,000. The equipment was expected to have a useful life 3 years or of four years, or 20,000 operating hours, and a residual value of $35,000. The equipment was used for 7,200 hours during Year 1, 6,400 hours in Year 2, 4,400 hours in Year 3, and 2,000 hours in Year 4. Instructions Show Me Now Excel Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (A) the straight-line method, (B) the units-of-activity method, and (C) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. The following columnar headings are suggested for recording the depreciation expense amounts:
Answer:
Depreciation expense for Year 1 Year 2 Year 3 Year 4
Method: Straight-line $71,250 $71,250 $71,250 $71,250
unit-of-production $102,600 $91,200 $62,700 $28,500
Double-declining $160,000 $80,000 $40,000 $20,000
Total depreciation for the four years under:
straight-line is $285,000unit-of-production is $285,000double-declining is $300,000Explanation:
(A) Under straight-line method, depreciation expense is (cost - residual value) / Estimated useful life = ($320,000 - $35,000) / 4 years = $71,250 yearly depreciation expense.
Accumulated depreciation for 4 years is $71,250 x 4 years $285,000.
The net book value (NBV) of the asset (cost - accumulated depreciation) is at the end of Year 4: $320,000 - $285,000 = $35,000.
(B) The unit-of-production method is used when the asset value closely relates to the units of output it is able to produce. It is expressed with the formula below:
(Original Cost - Salvage value) / Estimated production capacity x Units/year
At Year 1, depreciation expense (DE) is: ($320,000 - $35,000) / 20,000 operating hours x 7,200 hours = $102,600/year
At Year 2, depreciation expense (DE) is: ($320,000 - $35,000) / 20,000 operating hours x 6,400 hours = $91,200/year
At Year 3, depreciation expense (DE) is: ($320,000 - $35,000) / 20,000 operating hours x 4,400 hours = $62,700/year
At Year 4, depreciation expense (DE) is: ($320,000 - $35,000) / 20,000 operating hours x 2,000 hours = $28,500/year
Accumulated depreciation for 4 years is $102,600 + $91,200 + $62,700 + $28,500 = $285,000.
Note that this depreciation method results in higher depreciation charge when the asset is heavily used, at this time, it was in Year 1.
The NBV under this method is is: $320,000 - $285,000 = $35,000.
(C) The double-declining method is otherwise known as the reducing balance method and is given by the formula below:
Double declining method = 2 X SLDP X BV
SLDP = straight-line depreciation percentage
BV = Book value
SLDP is 100%/4 years = 25%, then 25% multiplied by 2 to give 50%
At Year 1, 50% X $320,000 = $160,000
At Year 2, 50% X $160,000 ($320,000 - $160,000) = $80,000
At Year 3, 50% X $80,000 ($160,000 - $80,000) = $40,000
At Year 4, 50% X $40,000 ($80,000 - $40,000) = $20,000
Accumulated depreciation for 4 years is $160,000 + $80,000 + $40,000 + $20,000 = $300,000.
The NBV under this method is is: $320,000 - $300,000 = $20,000.
Calculator Production Budget and Direct Materials Purchases Budgets Peanut Land Inc. produces all-natural organic peanut butter. The peanut butter is sold in 12-ounce jars. The sales budget for the first four months of the year is as follows: Unit Sales Dollar Sales ($) January 80,000 176,000 February 50,000 110,000 March 40,000 88,000 April 46,000 101,200 Company policy requires that ending inventories for each month be 25% of next month's sales. At the beginning of January, the inventory of peanut butter is 33,000 jars. Each jar of peanut butter needs two raw materials: 24 ounces of peanuts and one jar. Company policy requires that ending inventories of raw materials for each month be 20% of the next month's production needs. That policy was met on January 1. Required: 1. Prepare a production budget for the first quarter of the year. Show the number of jars that should be produced each month as well as for the quarter in total.
Answer:
Explanation:
Sales budget
$Revenue Unit
January 176,000 80,000
February 110,000 50,000
March 88,000 40,000
April 101,200 46,000
Ending inventory = 25% of next month sales
Ending inventory in December = 25% of next month sales.
Opening inventory in January = 33,000 units
January (80000-33000)+25% *50000 = 59,500 units
February = (50000 -12500) + 25%*40000 = 47,500 units
March = (40,000-10,000) +25%*46,000 = 41,500 units
April =46000-11,500= 34,500 units
Raw materials Peanut Jars
January 59,500 * 24 1,428,000 59,500
February 47,500*24 1,140,000 47,500
March 41,500 *24 996,000 41,500
April 34,500 *24 828,000 34,500
Company policy for production requires that ending inventory is 20% of next month production
Peanut production
January 1428000 + (20%* 1140000) = 1,656,000
February = (1140000-228000) + (20%*996,000) = 1,111,200
March = (996,000-199,200 ) + (20% * 828,000) =962,400
April 828,000- 165,500 = 662,400
Total peanut production = 4,392,000
Jars production
January = 59500 + (20% * 47,500)= 69,000
February = (47,500-9500) + (20% * 41,500) = 46,300
March = (41,500 - 8,300) + (20% * 34,500) 40,100
April = 34,500-6900 =27600
Total = 183,000
The production budget for Peanut Land Inc. for the first quarter requires producing 59,500 jars in January, 47,500 jars in February, and 41,500 jars in March, totaling 148,500 jars for the quarter.
Production Budget Calculation
To prepare a production budget for Peanut Land Inc., we'll need to calculate the required production to meet sales demands while maintaining the company's inventory policy. The policy states that ending inventory should be 25% of the next month's sales. The production budget can be calculated by adding the budgeted sales in units for each month to the desired ending inventory and then subtracting the beginning inventory.
For January, the company has an initial inventory of 33,000 jars and a sales forecast of 80,000 jars. February's sales forecast is 50,000 jars, meaning January's ending inventory must be 25% of this, which is 12,500 jars. Hence, January's required production is 80,000 (sales) + 12,500 (ending inventory) - 33,000 (beginning inventory) = 59,500 jars.
For February, the beginning inventory is January's ending inventory (12,500 jars). With a sales forecast of 50,000 jars and March's sales forecast at 40,000 jars, February's ending inventory should be 25% of March's sales, which is 10,000 jars. Therefore, production for February is 50,000 (sales) + 10,000 (ending inventory) - 12,500 (beginning inventory) = 47,500 jars.
For March, we use February's ending inventory as the starting inventory (10,000 jars). With sales forecasted at 40,000 jars, and April's sales at 46,000 jars, March's ending inventory should be 25% of April's sales, which is 11,500 jars. Thus, March's production is 40,000 (sales) + 11,500 (ending inventory) - 10,000 (beginning inventory) = 41,500 jars.
The total production for the first quarter is the sum of each month's production: 59,500 (January) + 47,500 (February) + 41,500 (March) = 148,500 jars.
Based on predicted production of 37,000 units, a company anticipates $925,000 of fixed costs and $841,750 of variable costs. The flexible budget amounts of fixed and variable costs for 35,000 units are (Do not round intermediate calculations):
$875,000 fixed and $841,750 variable.
$796,250 fixed and $925,000 variable.
$925,000 fixed and $796,250 variable.
$925,000 fixed and $841,750 variable.
$875,000 fixed and $796,250 variable.
Answer:
Total variable cost= $796,250
Total fixed costs= $925,000
Explanation:
Giving the following information:
Based on predicted production of 37,000 units, a company anticipates $925,000 of fixed costs and $841,750 of variable costs.
The fixed costs does not vary to production, therefore, they will remain the same in the relevant range.
We need to calculate the unitary variable cost:
Unitary variable cost= 841,750/37,000= $22.75
Now, we can calculate the total variable cost for 35,000 units
Total variable cost= 22.75*35,000= $796,250
Total fixed costs= $925,000
Norbury Corporation's net income last year was $27,000. The company did not sell or retire any property, plant, and equipment last year. Changes in selected balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Accounts receivable$14,500 Inventory$(3,800) Prepaid expenses$10,000 Accumulated depreciation$26,000 Liability Accounts: Accounts payable$14,000 Accrued liabilities$(8,300) Income taxes payable$2,900 Based solely on this information, the net cash provided by (used in) operating activities under the indirect method on the statement of cash flows would be:
Final answer:
The net cash provided by (used in) operating activities under the indirect method on the statement of cash flows would be $60,900
Explanation:
The student has asked how to calculate the net cash provided by (used in) operating activities under the indirect method on the statement of cash flows for Norbury Corporation based on the provided changes in balance sheet accounts. Starting with Norbury Corporation's net income of $27,000, we make adjustments for changes in asset and liability accounts as follows:
Add back non-cash expenses such as accumulated depreciation ($26,000)Subtract increases in accounts receivable ($14,500) since this represents income that did not result in cashAdd decreases in inventory ($3,800) which may represent inventory sold and converted into cashSubtract increases in prepaid expenses ($10,000) since this reflects cash paid in advance for future expensesAdd increases in accounts payable ($14,000) which suggest that expenses have been incurred but not yet paid in cashSubtract decreases in accrued liabilities ($8,300) since this might represent cash payments made to settle those liabilitiesAdd increases in income taxes payable ($2,900) as taxes have been recognized but not yet paid in cashThus,
Cash flows from operating activities = Net Income + Non-Cash Expenses + Non-Operating Losses − Non-Operating Gains + Decrease in Current Assets − Increase in Current Assets + Increase in Current Liabilities − Decrease in Current Liabilities
= $27,000 + $26,000 + $10,000 + $3,800 - $14,500 + $14,000 + $2,900 - $8,300
= $60,900
The Fortunato Corp.'s inventory at Dec 31, 2018, was $325,000 based on a physical count priced at cost, and before any necessary adjustment for the following:Merchandise costing $30,000, shipped f.o.b. shipping point from a vendor on Dec 30, 2018, was received on Jan 5, 2019. Merchandise costing $22,000, shipped f.o.b. destination from a vendor on Dec 28, 2018, was received on Jan 3, 2019. Merchandise costing $38,000 was shipped to a customer f.o.b. destination on Dec 28, arrived at the customer's location on Jan 6, 2019. Merchandise costing $12,000 was being held on consignment by Brecht Inc.What amount should Fortunato report as inventory in its Dec 31, 2018, balance sheet
Answer:
$405,000
Explanation:
The computation of the ending inventory reported is shown below:
Inventory on December 31,2018 $325,000
Add: Goods purchased from a vendor i.e shipping point $30,000
Add: Goods sold FOB destination to customer $38,000
Add: consignment by Brecht Inc $12,000
Ending inventory reported $405,000
In the above cases, the added items indicates the ownership is transferred to buyer , received by buyer and remains with the buyer
Michael operates his health food store as a sole proprietorship out of a building he owns. Based on the following information regarding Year 6, compute his net self-employment income (for SE tax purposes) for Year 6.
Gross receipts $100,000
Cost of Goods Sold 49,000
Utilities 6,000
Real estate taxes 1,000
Gain on sale of business truck 2,000
Depreciation expense 5,000
Section 179 expense 1,000
Mortgage interest on building 7,000
Contributions to Keogh retirement plan 2,000
Net operating loss (NOL) from Year 5 10,000
a. $24,000
b. $16,000
c. $31,000
d. $14,000
Answer:
c. $31000
Explanation:
Net self-employment income are gross income gotten from a trade or business, less allowable deductions attributable to the trade or business. When calculating self employment income, capital gains and losses, contributions for retirement, net operating losses are not considered.
Given that:
Gross receipts $100,000
Cost of goods sold $49,000
Utilities $6,000
Real estate taxes $1,000
Depreciation expense $5,000
Sec. 179 expense $1,000
Mortgage interest $7,000
Net self-employment income = Gross receipts - Cost of goods sold - Utilities - Real estate taxes - Depreciation expense - Sec 179 expense - Mort-age interest
Therefore, Net self-employment income = $100000 - $49000 - $6000 - $1000 - $5000 - $1000 - $7000 = $31000
You will need to make certain assumptions to complete this discussion and embedded in the scenario below are the assumptions. Scenario: Your company, a US multinational, has just transferred you as a manager of [you choose your position] to the following country [you choose the country]. You are in the industry of [you choose the industry]. To prepare for your departure, you want to get a better feel for the environment you will be in, and you will need to research the following: The political, economic, regulatory, and technical environments of your industry for your country. A few sentences on each are enough. This is to show you understand your new role as a global manager. For your initial post, please include the following for your classmates' review: • Describe the country, industry, and position you have chosen. • Summarize the research your conducted on the industry, outlined above. • Explain what you feel your primary concerns will be in your new position.
Answer:
My position-General Manager
My Country-Japan
Industry-Pharmaceuticals.
Let guess the US based pharmaceutical organization named as XYZ Pvt. Ltd. Similar to a Multinational Corporation it has a few provincial workplaces in various country. As being at a place of General Manager I have moved to Japan to care for the working of XYZ Industry.
Before joining the as General Manager in regarded pharmaceutical industry I might want to experience the accompanying focuses:
1. Accessibility of clinical office, for example, emergency clinics, clinical facilities, clinical camps, Pharmacy store.
2. Financial state of individuals of Japan.
3. Buying example of individuals.
4. Opponent rivals in the market.
5. There creation strategies and cost of item charged.
Along these lines, being a G.M of the referenced MNC it is my prime obligation to take care of the predominant financial and market condition.To think about the economic situation of Japan, I have experienced the ailments, for example, accessibility of clinical offices, emergency clinics, clinical camps which is the most significant piece of overview for a pharmaceutical organization. This exploration has been done through auxiliary source or is optional information based. subsequent to social affair the data about clinical offices I have experienced the financial states of Japanese i.e the amount they are probably going to spend on their clinical prosperity on the grounds that the creation must be done when you are known with the buying example and request of your client. subsequent to getting buying design it is a significant part to take care of the rivals in the market and the value they charge for there item. The benefit might be made when organization is going to offer generally modest cost with viable nature of meds.
In the wake of concerning all the above focuses it is the duty of organization to follow financially savvy system for creation to procure greatest benefit and advantages however being a pharmaceutical organization the significant job is to keep up the nature of medication which ought to never be undermined in any circumstance.
Gray is a 50% partner in Fabco Partnership. Gray's tax basis in Fabco on January 1, year 4, was $5,000. Fabco made no distributions to the partners during year 4 and recorded the following: Ordinary income $20,000 Tax-exempt income 8,000 Portfolio income 4,000 What is Gray's tax basis in Fabco on December 31, year 4?
Answer:
$21000
Explanation:
To determine Gray’s tax basis for a 50% interest in the Fabco Partnership, The interest is increased by the partner’s distributive share of all partnership items of income and decreased by the partner’s distributive share of all loss and deduction items.
Gray’s beginning basis = $5,000
Gray’s 50% distributive share of ordinary income = 50% × $20000 = $10000
Gray’s 50% tax-exempt income= 50% × $8000 = $4,000 and
portfolio income = 50% × $4000 = $2,000
Therefore, the ending basis of Gray’s Fabco partnership interest = $5000 + $10000 + $4000 + $2000 = $21000
Niles Company granted 111 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $22 per share on January 1, 2020, the grant date of the restricted stock award. When calculating diluted EPS at December 31, 2021, what will be the net increase in the weighted-average number of shares outstanding if the market price of the common shares averaged $22 per share during 2021?
Answer:
Net increase in the denominator will be equal to the new shares which Niles will issued to their executives.
Thus, increase in the denominator = 111 million
Shares of common stock of the Samson Co. offer an expected total return of 13.00 percent. The dividend is increasing at a constant 5.40 percent per year. The dividend yield must be: Multiple Choice 2.41% 13.00% 5.40% 7.60% 18.40%
Answer:
7.6%
Explanation:
The formula for calculating the Required return is:
Required return = Dividend yield + Capital Gain Yield
Hence,
13% = Dividend Yield + 5.40%
Dividend Yield = 7.60%.
Hope this helps.
Goodluck.
The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $50 per share for months, and you believe it is going to stay in that range for the next three months. The price of a 3-month put option with an exercise price of $50 is $4. a. If the risk-free interest rate is 10% per year, what must be the price of a 3-month call option on C.A.L.L. stock at an exercise price of $50 if it is at the money
Answer:
Price of call option = $5.1772
Explanation:
given data
trading x = $50 per share
Current price So = $95
time = 3 month t = [tex]\frac{1}{4}[/tex] year
exercise price of $50, P = $4
risk-free interest rate r = 10%
solution
we use here formula from put-call parity for price of a 3-month call option on C.A.L.L. stock that is
Price of call option = P + So - \frac{x}{(1+r)^t} .....................1
put here value and we will get
Price of call option = $4 + $50 - \frac{50}{(1+0.10)^{1/4}}
Price of call option = $5.1772
The next dividend payment by Savitz, Inc., will be $1.72 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. If the stock currently sells for $33 per share, what is the required return
Answer:
9.21%
Explanation:
To calculate this, we use the formula for the dividend discount model as follows:
P = D/(r - g) ............................ (1)
Where,
P = current stock price = $33
D = Next dividend = $1.72
r = required return = ?
g = growth rate = 4% = 0.04
Substituting the values into equation (1) and solve for r, we have:
33 = 1.72/(r - 0.04)
33(r - 0.04) = 1.72
33r - 1.32 = 1.72
33r = 1.72 + 1.32
33r = 3.04
r = 3.04/33
r = 0.0921, or 9.21%
On September 1, 2017, Revsine Co. approved a plan to dispose of a segment of its business. Revsine expected that the sale would occur on March 31, 2018 , at an estimated gain of $375,000. The segment had actual and estimated operating profits (losses) as follows:
Answer:
Explanation:
Full question:
On September 1, 2011, Revsine Co. approved a plan to dispose of a segment of its business. Revsine expected that the sale would occur on March 31, 2012, at an estimated gain of $375,000. The segment had actual and estimated operating profits (losses) as follows:
Realized loss from 1/1/11 to 8/31/11 $(300,000)
Realized loss from 9/1/11 to 12/31/11 (200,000)
Expected profit from 1/1/12 to 3/30/12 400,000
Assume that the marginal tax rate is 30%
In its 2011 income statement, what should Revsine report as profit or loss from discontinued operations (net of tax effects)?
Answers:
Under, results of operations on an operating segment or component of an entity classified as held for sale are to be reported in discontinued operations in the periods in which they occur (net of tax effects). For Revsine, the loss from operations for the discontinued segment would be $375,000 determined as follows:
Loss from 1/1/11 to 8/31/11 ($300,000)
Loss from 9/1/11 to 12/31/11 ($200,000)
Total pre-tax loss ($500,000)
Tax benefit at 30% 150,000
Operating loss, net of tax effects ($375,000)
None of the expected profit from operating the segment or component for Revsine in 2012 or the estimated gain on sale is recognized in 2011. These amounts will be recognized in 2012 as they occur.
The weighted average cost of capital is ________. A. the cost of capital for the firm as a whole B. made up of three financing components: the cost of debt, the cost of preferred stock, and the cost of equity C. the average of the cost of each financing component, weighted by the proportion of each component D. All of the above
Answer:
The answer is D. All of the above
Explanation:
The Capital structure of most companies comprise equity, debt and/or preference shares. All these that made up capital structure has cost or let's say return. We have cost of capital, cost of debt, cost of preference shares.
Therefore, weighted average cost of capital is average of the cost of each financing component(cost of capital, cost of debt and cost of preference shares), weighted by the proportion of each component
All the options relates to the weighted average cost of capital(WACC).
The weighted average cost of capital (WACC) encompasses the cost of capital for the entire firm, including the cost of debt, equity, and preferred stock, weighted by their proportions in the total capital.
Explanation:The weighted average cost of capital (WACC) is D. All of the above. It is the cost of capital for the firm as a whole, made up of three financing components: the cost of debt, the cost of preferred stock, and the cost of equity. Additionally, it is the average of the cost of each financing component, weighted by the proportion of each component in the overall capital structure. WACC is a crucial metric for firms as it represents the minimum return that a company must earn on its existing asset base to satisfy its creditors, owners, and other providers of capital, or they will invest elsewhere.
Susan starts a new word processing business with $5,000. She pays $450 in rent for the first month, $1000 for wages, and $50 for phone usage. The business in the first month was a success, and she sold $1,800 worth of her word processing services. Given the above determine the following :
What was Susan's initial capital?
How much were her expenses?
What was Susan's revenue for the month?
Using the Income Statement determine what was her Net Income for the month?
Answer:
The initial capital was $5000
The expenses for the first month were $1500
The revenue for the first month was $1800
The Net Income for the month was $300
Explanation:
The initial capital is the money that Susan put in to start the business. Susan starts the business with a capital of $5000 as stated in the question. Thus, the initial capital is $5000
The expenses for the month were of rent, wages and phone bill. The total amount of expenses for the month was = 450 + 1000 + 50 = $1500
The revenue for the first month was $1800 as Susan sold $1800 worth of goods in this month.
The income statement for the first month is as follows,
$ $
Revenue $1800
(-) Expenses
Rent expense 450
Wages Expense 1000
Phone Expense 50 (1500)
Net Income 300
Final answer:
Susan's initial capital was $5,000. Her total expenses for the month were $2,000, and her revenue was $1,800, resulting in a net loss of $200 for the month.
Explanation:
Susan's initial capital for starting her new word processing business was $5,000. To calculate her total expenses for the month, we sum up the costs of rent, wages, phone usage, and potentially utilities:
Rent: $450Wages: $1,000Phone: $50Utilities: $500 (expected average)Therefore, Susan's total expenses for the month were $2,000 (rent + wages + phone + utilities).
Susan's revenue for the month from her word processing services was $1,800.
Using the Income Statement for determining the Net Income for the month, we subtract the total expenses from the revenue:
Net Income = Revenue - Expenses
Net Income = $1,800 - $2,000 = -$200
Thus, Susan's Net Income for the month was a loss of $200.
At the beginning of the month, the Painting Department of Skye Manufacturing had 30,000 units in inventory, 70% complete as to materials, and 20% complete as to conversion. The cost of the beginning inventory, $38,650, consisted of $32,400 of material costs and $6,250 of conversion costs. During the month the department started 125,000 units and transferred 135,000 units to the next manufacturing department. Costs added in the current month consisted of $282,240 of materials costs and $544,700 of conversion costs. At the end of the month, the department had 20,000 units in inventory, 40% complete as to materials and 15% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the costs per equivalent unit of materials and conversion respectively for the Painting Department.
Answer:
Cost per equivalent unit of material = $2.20 per unit
Cost per equivalent unit of conversion = $4 unit
Explanation:
The computation of Cost per equivalent unit of material, Cost per equivalent unit of conversion is shown below:-
For computing the cost per equivalent first we need to find the equivalent unit of material which is below:-
= Transferred units + ( Department units × Material percentage)
= 135,000 + (20,000 × 40%)
= 135,000 + 8,000
= 143,000
So, the Cost per equivalent unit of material = (Beginning material cost + Current month material cost) ÷ Equivalent unit of material
= ($32,400 + $282,240) ÷ 143,000
= $314,640 ÷ 143,000
= $2.20 per unit
Now, For computing the Cost per equivalent unit of conversion first we need to find the equivalent unit of conversion cost which is below:-
= Transferred units + ( Department units × Conversion percentage)
= 135,000 + (20,000 × 15%)
= 135,000 + 3,000
= 138,000
So, the Cost per equivalent unit of conversion = (Beginning conversion cost + Current month conversion cost) ÷ Equivalent unit of conversion cost
= ($6,250 + $544,700) ÷ 138,000
= $550,950 ÷ 138,000
= 3.99
or $4 unit
As a result of a decrease in the demand for U.S. dollars, there has been depreciation in the value of the U.S. dollar relative to South Korean won. The depreciation in the U.S. dollar has benefitted some groups but harmed others. Indicate which of the groups are winners and which are losers from the standpoint of the depreciation of the U.S. dollar.
Answer:
Todd, an American, goes to visit South Korea for spring break - loser
Tood is a loser due to the depreciation of the U.S. dollar, because now he will need more dollars to buy a comparative amount of South Korean wons. His trip will now be more expensive.
An investment bank in South Korea, interested in purchasing U.S. government bonds - winner
The investment bank will exchange less wons for U.S. dollars than before. Buying the government bonds will now be cheaper for them.
Goodyear, a firm based in the United States, sells car tires in South Korea - winner
Goodyear will likely sell more cars because for its South Korean customers, the cars are now cheaper, since the value of the dollar has depreciated against the currency that they hold.
A family from South Korea visits relatives in the United States - winner
The South Korean family will exchange less wons for more U.S. dollars, making their trip cheaper.
A firm from South Korea sells handbags in the United States - loser
The handbags will now be more expensive for their American customers, likely causing a loss in sales revenue for the firm.
An electronics manufacturer in the United States, purchases a high tech company in South Korea - loser
The cost of the high tech South Korean company is now higher for the American manufacturer, because more dollars had to be exchanged for wons before the purchase.
Explanation:
One result of asymmetric information about people's ability to repay a loan is that: a bank could make many loans to people who don't pay them back. lenders are better off than with perfect information. banks will not make loans. loans will only be made to people who don't pay them back.
Answer:
Option (a) is correct.
Explanation:
Asymmetric information refers to the situation in which one of two parties involved in the transaction having more information than the other party.
It is evident that an asymmetric information is associated with all types of economic transaction. It is mostly associated with the insurance industry and banking industry.
In our case, banks have less information about the borrower's loan repaying capability and could make many loans to the people who will be the defaulters.
There are two problems arises from the asymmetric information:
(i) Moral hazard
(ii) Adverse selection