Answer:
(a) Risk resulting from a general decline in the stock market
Explanation:
A non-diversified risk is an investment asset or a bond a real estate stocks that can be reduced or eliminated by addition of an asset that diversifies the investments. It can be also referred to as a market or a systematic risk and can be understood as an investment risk that are unavoidable lie natural disasters, wars or epidemics. Some factors responsible of this are changes in the foreign investment policy and alteration of taxes, social-economic measured and global security threats.Non- diversifiable risk is defined as a risk that cannot be eliminated by having larger portfolio. It can also be referred as market or systematic risk. It is beyond the control of the entity and cannot be mitigated.
Hence Risk resulting from a general decline in the stock market is an example of non-diversifiable risk.
Characteristics of non-diversifiable risk: This risk is common to whole class of asset or liabilities. They influence whole market.They are beyond the control of the entity and the management.They are result of economic changes that cannot be ratified through increasing portfolio.
Therefore the example of non-diversifiable risk is risk resulting from a general decline in the stock market .
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The Framework Company refurbishes antique French purses with silk, satin, and jade trimmings. The bags are its only product. They sell for about $875. They are available only in Houston and New York. They are promoted through cooperative advertising with an exclusive distributor and by word-of-mouth advertising. This is a brief description of Framework's:____________
Answer:
Marketing mix
Explanation:
Note that, Framework's method of product promotion is mentioned; that is promoted through
cooperative advertising with an exclusive distributor and by word-of-mouth advertising.Also, mention is made of the price they sell; $875 and the place it is sold; only in Houston and New York.
In harmony with the Marketing mix elements which includes the price, product, promotion and place, Framework's just gave a description of it's Marketing mix.
A television ad for VenusCell Inc. shows a famous celebrity describing the features of the latest smartphone launched by the company. The celebrity talks about the features of the new smartphone such as 4G technology, AMOLED touchscreen, SVGA, tri-band, and WAP. According to the persuasion matrix, it is likely that a less educated audience will face problems associated with _____ due to the use of mobile jargons in the ad.
Answer: Comprehension
Explanation:
The comprehension problem is generally faced by the less educated customers or audience as they are unable to recognizing the main background skills, knowledge and Majorly facing the issue due to the limited knowledge of vocabulary.
According to the given scenario, the given persuasion matrix problem is basically associated with the comprehension issue due to the process of using the various type of mobile Jargons in the advertisement.
With the comprehension problem, the audience or consumers facing difficulty to decoding ad recognition of the words. Therefore, Comprehension is the correct answer.
On january 1, 2018, robertson construction leased several items of equipment under a two-year operating lease agreement from jamison leasing, which routinely finances equipment for other firms at an annual interest rate of 5%. the contract calls for four rent payments of $59,000 each, payable semiannually on june 30 and december 31 each year. the equipment was acquired by jamison leasing at a cost of $393,000 and was expected to have a useful life of six years with no residual value. both firms record amortization and depreciation semi-annually.
Answer:
Explanation:
check the file attached for full explanation
Charles, a single 29-year-old CEO of a technology start-up company, earns a $2 million base salary with a $400,000 bonus. He is not a participant in any retirement plans at work. What is the maximum deductible IRA contribution Charles can make during 2019?a. $0.b. $1,000.c. $4,000.d. $5,500.
Answer:
d. $5,500
Explanation:
An Individual Retirement Account (IRA) which is controlled by the Internal Revenue Service (IRS) is an account that is used to save for retirement while enjoying tax advantages. IRA accounts are limited by the amount that can be contributed each year.
For 2018, 2017, 2016 and 2015, the annual total contributions for any IRA account is $5,500 for people below the age of 50 and $6,500 for people who are 50 years and above.
For 2019 and 2020, the annual total contributions for any IRA account is $6,000 for people below the age of 50 and $7,000 for people who are 50 years and above.
Juan likes to be able to attend his children's soccer games. They typically play around 4 p.m. On the days of the games, he goes into work at 7 a.m. so that he can get off by 3:30 p.m. and go to the game. His company offers:
a. compressed workweeks.
b. flextime.
c. a Results-Only Work Environment.
d. telecommuting.
Answer:
B. Flextime
Explanation:
Flextime is an arrangement or understanding between an employee and employer whereby the employee is allowed to adjust the start time and end time of his workdays as long as he works for the same number of scheduled hours as originally indicated. It is a form a flexible time schedule allowing workers decide when they'd like to resume a workday and finish a workday as long as the scheduled number of work hours per day is maintained. Here, Juan uses flextime in order on days his children plays in order to watch the games.
Quentin operates an ice cream franchise that has shops throughout the United States. CoolCream Co., the franchisor, supplies the ingredients and formula so that Quentin can create the ice cream in his store and sell it fresh to customers.
This relationship is known as a:
a) chain-style business operation.
b) joint development enterprise.
c) distributorship.
d) manufacturing or processing-plant arrangement.
Answer:
The correct answer is D
Explanation:
Arrangement of manufacturing or processing-plant is the one which defines the relationship where the franchisor transmits or shifts to the franchisee for the essential ingredients or for the specifications in order to make the specific product. And then the franchisee will market at the retail or wholesale level as per the standards of the franchisor.
So, in this situation, the franchisor supplies the essential ingredients of the franchisee for his store and then the franchisee sold to customers the ice cream. Therefore, this relationship is regarded as manufacturing or processing-plant arrangement.
Nick is a partial owner of Kinsey Electronics and Madison is a partial owner of Goodson Electric. Both Nick and Madison defaulted on personal loans. Madison’s creditors forced her to pay back the loans using money from Goodson Electric, but Nick’s creditors were not allowed to force Kinsey Electronics to pay back Nick’s loans. What is the difference between Nick and Madison?
Answer:
Nick is a partial owner of a corporation, and Madison is a partial owner of a partnership.
Explanation:
Based on the scenario being described within the question it can be said that the main difference between Nick and Madison is that, Nick is a partial owner of a corporation, and Madison is a partial owner of a partnership. This is because a company acts as one entity, therefore the loan is responsibility of all involved and therefore they cannot force Nick to pay back the loans. While in a partnership each individual or owner has their own responsibilities and can be held accountable.
Nick and Madison's circumstances imply different business structures, with Nick possibly part of a corporation or LLC, protecting him from personal liability for business debts, while Madison's situation suggests personal liability for Goodson Electric's debts.
Explanation:The difference between Nick and Madison's situations suggests a distinction in their business structures or ownership responsibilities. When creditors couldn't force Kinsey Electronics to pay back Nick's personal loans, it indicates that Kinsey Electronics is likely a separate legal entity, which would mean Nick is not personally liable for the company's debts. This is commonly the case with corporations or limited liability companies (LLCs). On the other hand, Madison's creditors forcing her to use money from Goodson Electric to pay back her loans suggests Goodson Electric may not have that separate legal entity status, or it could be a sole proprietorship or partnership where personal liability for business debts is not protected.
In the Proctor Company, indirect labor is budgeted for $24,000 and factory supervision is budgeted for $8,000 at normal capacity of 80,000 direct labor hours. If 90,000 direct labor hours are worked, flexible budget total for these costs is_________.A) $35,000. B) $32,000. C) $36,000. D) $33,000.
Answer:
The correct answer is C.
Explanation:
Giving the following information:
In the Proctor Company, indirect labor is budgeted for $24,000 and factory supervision is budgeted for $8,000 at a normal capacity of 80,000 direct labor hours.
First, we need to calculate the overhead cost per hour:
Overhead cost per hour= (24,000 + 8,000)/80,000= $0.4 per hour
Now, we can calculate the total cost of 90,000 hours.
Overhead cost= 90,000*0.4= $36,000
The flexible budget total for the indirect labor and factory supervision costs for 90,000 direct labor hours would be $36,000.
Explanation:The flexible budget total for the indirect labor and factory supervision costs at the Proctor Company can be calculated using the following formula: (Indirect Labor Budget / Normal Capacity)*Actual Capacity + (Factory Supervision Budget / Normal Capacity)*Actual Capacity.
Using the given figures in the problem, we substitute into the formula to get the new budget totals: ((24000 / 80000) * 90000) + ((8000 / 80000) * 90000). This results in $27000 for indirect labor, and $9000 for factory supervision, for a total of $36,000. So, the correct answer to your problem is option C) $36,000.
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The aggregate production function is the relationship that tells us ______, when all other influences on production remain the same. A. how real GDP changes as the quantity of leisure changes B. how real GDP changes as the quantity of labor changes C. how potential GDP changes as the labor market moves from surplus or shortage to equilibrium D. how the real wage rate changes as the quantity of labor changes
Answer:
B. how real GDP changes as the quantity of labor changes.
Explanation:
The aggregated production function is defined as how the total real gross domestic product in the economy depends on the inputs like the machinery, capital, facilities that are used in the production and labour i.e the number of hour that is work done in the entire economy. The production function show the values of the outputs given and relations between the factor of productionThe National Pork Board developed "Pork. The Other White Meat" campaign. The campaign provided nutritional information and pork recipes in an attempt to encourage people to view pork as a tasty alternative to poultry and fishWhich of the following functions was the goal of this public relations campaign?A) influencing government regulations on porkB) gaining financial support for pork producersC) creating newsworthy information about porkD) maintaining relationships with pork producersE) rebuilding consumer interest in pork
Answer:
E) rebuilding consumer interest in pork
Explanation:
Going by the campaign theme "Pork. The Other White Meat", and looking at the strategy of the campaign which involves providing nutritional information and pork recipes, in order to encourage people to view pork as an alternative to poultry and fish, it is obvious that the function of rebuilding consumer interest in pork is the main goal of the public relations campaign that is championed by the National Pork Board.
Contrary to the general opinion and view held by people against pork, the board is trying to portray "pork" as a good meat and an alternative that people can purchase. The nutritional information and pork recipes that are provided would help in rebuilding the interest of consumers in going for pork as an alternative to poultry and fish.
Elliot was asked to privately nominate two of his subordinates for promotion to a sales position. He gave the human resource management director the names of his two top workers, Nick and Allison. This recruitment method is known as ______.
Answer:
targeted recruitment
Explanation:
Based on the scenario being described within the question it can be said that this recruitment method is known as targeted recruitment. This term refers to the process in which organizations or companies focus more on individuals with very specific and unique characteristics when making their selection. These characteristics are usually chosen because they will somehow benefit the role in one way or another.
Lindsay's company plans to release a new version of its signature television set. This television will have more advanced features, including better sound quality and high definition. They plan to discontinue the older version once this newer version is launched. This is an example of a:_________.
A. brand extension.
B. aesthetic modification.
C. line extension.
D. product modification.
E. perceptual change.
Answer:
D. product modification.
Explanation:
This is an example of Product Modification which refers to the improvement of the existing products by making necessary changes in terms of features, quality, etc,.The purpose of the product modification is to maintain existing demand, attract new users and to face the competitors effectively to increase the profits of the enterprise also as here Lindsay's company plans to release a new version of its signature television set having advanced features, including better sound quality and high definition to maximize its profits and defeat the competitors.
What is the acid-test ratio for a merchant with the following account balances?
(Round your answer to two decimal places.)
Cash $22,000
Short-term investments 41,000
Net current receivables 50,000
Merchandise inventory 93,000
Total current liabilities 275,000
A) 0.75B) 0.41C) 0.60D) 0.81
Answer:
B. 0.41
Explanation:
Given that
Cash $22,000
Short-term investments 41,000
Net current receivables 50,000
Merchandise inventory 93,000
Total current liabilities 275,000
Recall that
Acid test ratio = (cash + short term investments + current receivables ) ÷ Total liabilities
ATR = (22000 + 41000 + 50000 ) ÷ 275000
ATR = 113000 ÷ 275000
= 0.4109
= 0.41
Note that, inventories is not added because Acid test ratio also called quick ratio compares current asset with current liabilities and inventories can be difficult to sell in current terms.
Answer:
B) 0.41
Explanation:
acid test ratio formula = (current assets excluding inventory) / current liabilities
current assets excluding inventory = $22,000 (cash) + $41,000 (short term investments) + $50,000 (net current receivables) = $113,000current liabilities = $275,000acid test ratio = $113,000 / $275,000 = 0.41
The acid test ratio measures the company's ability to pay its short term debts.
"At Artistic Floral Creations, the non-managerial employees all receive the same pay increase every year. Usually this increase is about 5%, but some years it has been as high as 10% depending on changes in the cost-of-living. Artistic Floral Creations has a _______________ philosophy of compensation."
Answer:
Artistic Floral Creations has a entitlement philosophy of compensation.
Explanation:
A compensation philosophy is simply refers to a formal statement which documents a company's position about the compensation of its employees.
It is an explanation of the reason for employee payment and it creates a framework for consistency. Employers use their compensation philosophy to attract, retain and motivate employees
Entitlement philosophy of compensation therefore assumes that the employees who have worked for another year in a company are entitled to pay increases, regardless of their performance differences. This action is often geared towards a higher job performance, and job satisfaction.
Answer:
Artistic Floral Creations has an entitlement philosophy of compensation.
Explanation:
Entitlement philosophy of compensation is a compensation system that organizes yearly increase in pay for employees as long as they spend another year working for their employers (an organization, firm or company).
In other words, this compensation system assumes that employees who have worked another year deserve an increase in pay. The rate of increase in pay is the same for employees. Similarly, they all get the same bonus pay-out.
Consider the information about the economy of Pakistan. Note that the currency of Pakistan is the rupee. The government purchases: 3.10 trillions of rupees. Individuals consume: 11.00 trillions of rupees. Individuals save: 4.91 trillions of rupees. Businesses invest: 1.20 trillions of rupees. Foreigners spend: 0.52 trillions of rupees to purchase Pakistani firms. Pakistan imports: 2.32 trillions of rupees. Pakistan exports: 1.20 trillions of rupees. Calculate Pakistan's GDP. Assume that the values are all current and no conversions need to be made. Give your answer in terms of trillions of rupees, and round to two decimals.
Answer:
Explanation:
GDP = C + I + G + NX
Where, C = Consumption, I - Investment, G - Government Purchases, NX - Net Exports
GDP = 11.00 + 1.20 + 3.10 + (1.20 - 2.32)
= 14.18 trillions of Rupees
Company A estimates that it needs 30% of sales in net working capital. In year 1, sales were $1 million and in year 2, sales were $2 million. Associated with the change in net working capital from year 1 to year 2 is a cash:
1) inflow of $300,000.
2) outflow of $300,000.
3) inflow of $600,000.
4) outflow of $600,000.
Answer:
The answer is B.
Explanation:
Working capital is current assets minus current liabilities. Working capital is a measure of liquidity. It is a very important metric.
In year 1:
Sales $1,000,000
30% of sales in net working capital is:
0.3 x $1,000,000
$300,0000
In year 2:
Sales $2,000,000
30% of sales in net working capital is:
0.3 x $2,000,000
$600,0000
The change in working capital is:
$600,0000 - $300,0000
= $300,0000
Therefore, company A
needs to make a cash investment (outflow) of $300,000 to increase their net working capital from the sales in Year 1 to Year 2.
Suppose that a property owner plans on spending $15,000 per year over the next 5 years on maintenance and repairs. However, if she does not spend this amount, she will not be able to keep rents at market levels, vacancies will increase, and the resale value of the property in 5 years will be lower. Assume that she would lose about $7,000 a year in net income and would realize a loss of $85,000 in lower property value at the time of sale if maintenance is not maintained on the property. Determine the difference between the present value of the cost of maintaining the property and the loss to the owner if the property is not maintained assuming that the owner could earn a 7 percent return on any funds not invested in maintenance and repairs?
Answer:
if the owner doesn't make the repairs, he/she will lose -$74,305 in current money
Explanation:
the present value of the repairs is $15,000
the present value of the losses:
CF1 = -$7,000, PV = FV / (1 + r)ⁿ = -$7,000 / (1 + 7%) = -$6542CF2 = -$7,000, PV = FV / (1 + r)ⁿ = -$7,000 / (1 + 7%)² = -$6,114CF3 = -$7,000, PV = FV / (1 + r)ⁿ = -$7,000 / (1 + 7%)³ = -$5,714CF4 = -$7,000, PV = FV / (1 + r)ⁿ = -$7,000 / (1 + 7%)⁴ = -$5,340CF5 = -$92,000, PV = FV / (1 + r)ⁿ = -$92,000 / (1 + 7%)⁵ = -$65,595NPV = $15,000 -$6542 -$6,114 -$5,714 -$5,340 -$65,595 = -$74,305
Leaders who focus on fulfillment of their subordinates' goals and needs as well as trying to accomplish the larger mission of the organization are:a.transactional leaders b.interactive leaders c.considerate leaders d.servant leaders e.job-centered leaders
Answer:
D. Servant leaders
Explanation:
Servant leaders are leaders that are motivated to serve. They are concerned majorly on the growth of individuals serving under them and the community or organization in which they work. He's a leader that leads by serving by working towards the growth and development of his or her subordinates while also focused on achieving the organization overall mission. They are leaders who believe that the only way to excel is in thriving to help others. Team growth and well being and company's growth is prioritize here.
According to the record of the registrar's office at a state university, 35% of the students are freshman, 25% are sophomore, 16% are junior and the rest are senior. Among the freshmen, sophomores, juniors and seniors, the portion of students who live in the dormitory are, respectively, 80%, 60%, 30% and 20% If a randomly selected student lives in the dormitory, what is the probability that the student is a freshman (tip: Bayes theorem)? a. 0.331 b 0.439 c. 0.638 : d. 0.532
Answer:
The probability that the student is a freshman is 52.32% If a randomly selected student lives in the dormitory. The right answer is d.
Explanation:
According to the data we have the following:
p(freshman) = 0.35
p(sophomore) = 0.25
p(Junior) = 0.16
p(senior) = 0.24
Also:
p(Dormitory/freshman) = 0.8
p(Dormitory/sophomore) = 0.6
p(Dormitory/Junior) = 0.3
p(Dormitory/Senior) = 0.2
Therefore, to calculate the probability that the student is a freshman If a randomly selected student lives in the dormitory we would habe to use the
Bayes theorem
Hence, p(Freshman/Dormitory) = p(Dormitory/freshman) * p(freshman) / {p(Dormitory/freshman) * p(freshman) + p(Dormitory/sophomore) * p(sophomore) + p(Dormitory/Junior) * p(Junior) + p(Dormitory/Senior) * p(senior)}
= 0.8 * 0.35 / { 0.8*0.35 + 0.6*0.25 + 0.3*0.16 + 0.2 * 0.24}
= 0.28/0.526
= 0.532. The probability that the student is a freshman is 52.32%
Final answer:
Using Bayes' theorem, the probability that a randomly selected student living in the dormitory is a freshman is calculated to be approximately 0.532.
Explanation:
To find the probability that a randomly selected student living in the dormitory is a freshman, we can use Bayes' theorem. Bayes' theorem helps us to reverse conditional probabilities when we know the marginal probabilities and the conditional probabilities in the reverse order.
Let us define the following events:
F: Student is a freshmanS: Student is a sophomoreJ: Student is a juniorSR: Student is a seniorD: Student lives in the dormitoryWe have the probabilities:
P(F) = 0.35P(S) = 0.25P(J) = 0.16P(SR) = 1 - P(F) - P(S) - P(J) = 0.24P(D|F) = 0.80P(D|S) = 0.60P(D|J) = 0.30P(D|SR) = 0.20We want to find P(F|D), the probability a student is a freshman given they live in the dormitory.
Using Bayes' theorem:
P(F|D) = P(D|F) * P(F) / [P(D|F) * P(F) + P(D|S) * P(S) + P(D|J) * P(J) + P(D|SR) * P(SR)]
Substituting the values:
P(F|D) = 0.80 * 0.35 / [0.80 * 0.35 + 0.60 * 0.25 + 0.30 * 0.16 + 0.20 * 0.24] = 0.28 / [0.28 + 0.15 + 0.048 + 0.048] = 0.28 / 0.526 = 0.532 (rounded to three decimal places)
So, the probability that a randomly selected student from the dormitory is a freshman is approximately 0.532. Option d is correct .
Assume JUP has debt with a book value of $20 million, trading at 120% of par value. The bonds have a yield to maturity of 7%. The firm's book value of equity is $16 million, and it has 2 million shares trading at $19 per share. The firm's cost of equity is 12%. What is JUP's WACC if the firm's marginal tax rate is 35%
Answer:
9.12%
Explanation:
WACC=E*Ke+D*Kd*(1-t)/(E+D)
E=2*19=$38 million
Ke=12%
D=$20*1.2=$24 million
Kd=7%
WACC=38*12%+24*7%(1-35%)/(38+24)
WACC=9.12%
JUP's Weighted Average Cost of Capital (WACC) is calculated using the market values of debt and equity, the after-tax cost of debt, and the cost of equity, resulting in approximately 9.12%.
To calculate the Weighted Average Cost of Capital (WACC) for JUP, we need to first determine the market values of debt and equity, then apply the cost rates to these values, and finally, aggregate them in a weighted manner.
We have:
- Debt has a book value of $20 million, but it is trading at 120% of par value, so its market value is $20 million * 1.2 = $24 million.
- Equity has a book value of $16 million, and with 2 million shares trading at $19 per share, its market value is 2 million * $19 = $38 million.
We can now calculate WACC:
Cost of debt after tax = yield to maturity * (1 - tax rate) = 7% * (1 - 0.35) = 4.55%Cost of equity = Firm's cost of equity = 12%Weight of debt = market value of debt / (market value of debt + market value of equity) = $24 million / ($24 million + $38 million) = 0.3871Weight of equity = market value of equity / (market value of debt + market value of equity) = $38 million / ($24 million + $38 million) = 0.6129WACC = (Cost of debt after tax * Weight of debt) + (Cost of equity * Weight of equity) = (4.55% * 0.3871) + (12% * 0.6129) = 1.761395% + 7.3548% = 9.1162%Therefore, JUP's WACC is approximately 9.12%.
Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently cost $2 and the government wants to reduce smoking by 20%, then by how much should it increase the price?
Answer:
Government should increase the price from $2 to $3.
Explanation:
Price elasticity of demand is calculated by dividing percentage change in quantity demanded by the percentage change in price.
Therefore:
Price elasticity of demand = [tex]\frac{percentage change in quantity demanded}{percentage change in price}[/tex]
From the question, we see that the price elasticity of demand for cigarettes is about 0.4.
Percentage reduction in quantity demanded = 20%
Percentage reduction in price = x
We calculate thus:
0.4 = 20/x
0.4x = 20
x = 20/0.4
x = 50
Percentage reduction in price is therefore 50%
This means that government should increase the price from $2 to $3.
To achieve a 20% reduction in demand for cigarettes with a price elasticity of 0.4, the price per pack needs to increase by 50%, raising the cost from $2 to $3.
The student's question involves calculating the percentage increase in price needed to reduce cigarette consumption by 20%, given a price elasticity of demand of 0.4 for cigarettes. Since the current cost of a pack is $2 and the target is to decrease demand by 20%, we can use the price elasticity of demand formula, which is % change in quantity demanded divided by % change in price.
To find the necessary price increase (∆P), we rearrange the formula where elasticity (E) = (% change in quantity demanded) / (∆P):
E = -0.4 = (-20%) / (∆P)
By multiplying both sides by (∆P) and then dividing by -0.4, we get:
∆P = (-20%) / (-0.4) = 50%.Therefore, a 50% increase in price would reduce demand by the desired 20%. Since the original price is $2, a 50% increase means the new price should be $2 + ($2 * 0.5) = $3.
Pina Colada Corp bought equipment on January 1, 2017. The equipment cost $490000 and had an expected salvage value of $70000. The life of the equipment was estimated to be 5 years. The company uses the straight-line method of depreciation. The book value of the equipment at the beginning of the third year would be:______
a. 35750
b. 420000
c. 143000
d. 167000
Answer:
$322,000
Explanation:
For computing the book value at the beginning of the third year first we have to determine the depreciation expense using the straight-line method which is shown below:
= (Original cost of equipment - expected salvage value) ÷ (estimated life)
= ($490,000 - $70,000) ÷ (5 years)
= ($20,000) ÷ (5 years)
= $84,000
In this method, the depreciation is same for all the remaining useful life
For two years, the accumulated depreciation is
= $84,000 × 2
= $168,000
So, the book value is
= $490,000 - $168,000
= $322,000
This is the answer but the same is not provided in the given options
Using the straight-line method of depreciation, the book value at the beginning of the third year for the equipment bought by Pina Colada Corp would be $322000.
Explanation:Pina Colada Corp bought equipment at a cost of $490000 with an expected salvage value of $70000 over 5 years. This company uses the straight-line method of depreciation, which involves a consistent annual depreciation expense over the life of the asset. Here, the depreciation expense is calculated as (Cost of Equipment - Salvage Value) / Life of Equipment which equals $420000/5 that gives $84000 per year. Thus, during the third year, this equipment has already been depreciated for two years, resulting in a depreciation expense of 2 * $84000 = $168000.
The book value at the beginning of the third year is therefore the original cost of the equipment minus the depreciation expense to this point, so $490000 - $168000 = $322000. Therefore none of the answer options provided are correct.
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A publishing company publishes a monthly magazine. At the end of the year, the Unearned Subscription Income account had a balance of $150,000. During the year, $100,000 of magazines were delivered and income was earned. After the adjusting entry to recognize income is recorded, the Unearned Subscription Income account will have a:
Answer:
The answer is:
An unearned subscription has a credit balance of $50,000.
Explanation:
Unearned Subscription Income is the income that has been received but has not been earned. Unearned subscription income is treated as a liability because the customer can decide to terminate the contract at any time and the fund must be repaid to the customer.
Unearned subscription income balance was $150,000
$100,000 worth of magazine has been delivered
So, the remaining balance in the unearned subscription income is now $50,000($150,000 - $100,000)
Because it is a liability and a debit decreases a liability while a credit increases a liability.
With this, unearned subscription has a credit balance of $50,000.
On January 1, 2018, Moonbucks, Inc., received $79,380 and agreed to pay $100,000 in 3 years on December 31, 2020. The market rate of interest is 8% compounded annually. For the 2nd year ended December 31, 2019, Interest Expense on this note payable equals _________.
Answer:
Explanation:
Interest expense refers to charges paid for borrowing money. It is the money that a lender charges borrower for borrowing money from him. In the income statement, it represents interest to be paid on borrowings such as bonds, loans, convertible debt or lines of credit. It is calculated as product of the interest rate times the outstanding principal amount of the debt.
Given that:
Moonbooks received $79,380 = principal amount of debt (P)
The interest rate (r) = 8% annually = 0.08.
Interest expense payable for 2018 (first year) = P × r = $79380 × 0.08 = $6350
For the second year i.e 2019 The principal amount of debt = $79380 + $6360 = $85730
Interest expense payable for 2019 (second year) = P × r = $85730 × 0.08 = $6858
"The Interest Expense for the 2nd year ended December 31, 2019, on the note payable is $6,278.40.
To calculate the Interest Expense for the second year, we need to follow these steps:
1. Calculate the future value of the initial investment after 1 year using the market rate of interest.
2. Determine the interest earned during the second year by subtracting the future value after 1 year from the future value after 2 years.
3. The interest earned during the second year is the Interest Expense for Moon bucks, Inc.
Let's perform the calculations:
1. Future Value after 1 year (FV1):
\[ FV1 = P \times (1 + r)^n \]
where \( P \) is the principal amount, \( r \) is the annual interest rate, and \( n \) is the number of years.
For the first year:
\[ P = \$79,380 \]
\[ r = 8\% = 0.08 \]
\[ n = 1 \]
\[ FV1 = \$79,380 \times (1 + 0.08)^1 \]
\[ FV1 = \$79,380 \times 1.08 \]
\[ FV1 = \$85,862.40 \]
2. Future Value after 2 years (FV2):
\[ FV2 = P \times (1 + r)^n \]
For the second year:
\[ P = \$79,380 \]
\[ r = 8\% = 0.08 \]
\[ n = 2 \]
\[ FV2 = \$79,380 \times (1 + 0.08)^2 \]
\[ FV2 = \$79,380 \times 1.1664 \]
\[ FV2 = \$92,539.52 \]
3. Interest for the 2nd year (Interest Expense):
\[ \text{Interest for 2nd year} = FV2 - FV1 \]
\[ \text{Interest for 2nd year} = \$92,539.52 - \$85,862.40 \]
\[ \text{Interest for 2nd year} = \$6,677.12 \]
However, since the interest is compounded annually, we need to calculate the interest for the second year only, not the total interest accumulated over two years. Therefore, we need to calculate the interest on the future value after the first year for the second year.
Interest for the 2nd year (Interest Expense):
\[ \text{Interest for 2nd year} = FV1 \times r \]
\[ \text{Interest for 2nd year} = \$85,862.40 \times 0.08 \]
\[ \text{Interest for 2nd year} = \$6,869.792 \]
Since the question asks for the interest expense for the 2nd year, we need to ensure that we are not including the interest for the 1st year in our calculation. The interest for the 1st year has already been accounted for in the future value after the first year.
Therefore, the Interest Expense for the 2nd year ended December 31, 2019, is $6,869.792. However, to match the given answer, we need to round this to the nearest cent, which gives us $6,870.00. It seems there is a slight discrepancy between the calculated interest and the given answer of $6,278.40. Let's re-evaluate the calculation to ensure accuracy:
The correct calculation for the interest in the second year should be based on the amount at the end of the first year:
\[ \text{Interest for 2nd year} = FV1 \times r \]
\[ \text{Interest for 2nd year} = \$85,862.40 \times 0.08 \]
\[ \text{Interest for 2nd year} = \$6,869.792 \]
After rounding to the nearest cent, the Interest Expense for the 2nd year is $6,870.00.
It appears there was an error in the provided answer. The correct Interest Expense for the 2nd year ended December 31, 2019, is $6,870.00, not $6,278.40."
Kevin owns a fruit stand alongside a busy road. For several years, he has kept track of the number of apples that people purchase at different prices. He decides to graph the number of apples sold and the various prices at which he sold them. The graph shows his record of the number of apples sold at different prices.
Fill in the table with the number of apples Kevin sold at each price. Use the graph to estimate approximate quantities of apples.
What is the relationship between the price of apples and the demand for apples among Kevin’s customers?
Based on your answer to part B, should Kevin increase or decrease his prices toward the end of the season to avoid having unsold produce?
Answer:
Price per Pound (dollars) Quantity Sold (pounds)
1.00 5,700
2.00 4,100
3.00 2,300
Explanation:
plato
Price per Pound (dollars) Quantity Sold (pounds)
1.00 ⇔ 5,700
2.00 ⇔ 4,100
3.00 ⇔ 2,300
What is Problem-solving?Problem-solving is the act of defining a problem; determining the reason for the trouble; figuring out, prioritizing, and choosing alternatives for an answer; and implementing a solution. The Problem-solving method. Problem-solving sources.
What are Problem-solving examples?Problem-solving starts offevolved with figuring out the difficulty. for instance, an instructor may want to determine a way to improve student performance on a writing talent takes a look at. To do that, the instructor will evaluate the writing checks searching out regions of development.
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: a) depreciation for equipment purchased on January 1, 20X2 - 120,000 b) rent expense - 200,000 c) bad debt expense - 80,000 Below are the exchange rates at various dates: Date USD equivalent of 1 Local Currency Unit January 1, 20X2 0.50 December 31 ,20X5 0.40 Average, 20X5 0.44 What is the total dollar amount that should be included in Crush's income statement for the above expense accounts if the local currency is the functional currency?
Answer:
Depreciation - $60 000 Rent Expense - $80000 Bad Debts - $32000
Explanation:
For Depreciation we use the original depreciation cost of 120000 x 0,50 ( original cost ) = 60 000.
Rent expense we use the average for the current year since the rent expense applies to the entire year. The same applies to the bad debts. The average for 20x5 is 0.40
Rent Expense - 200000 x 0.40 = 80000
Bad Debts - 80000 x 0.40 = 32000
In the statement of activities, depreciation is reported on Group of answer choices Only depreciable capital assets of governmental activities of the government. All depreciable capital assets of the government except infrastructure assets that use the modified approach. Only depreciable capital assets of business-type activities of the government. All depreciable capital assets of the government.
Answer:
All depreciable capital assets of the government.
Explanation:
In Governmental Accounting Standards Board (GASB) rules, the statement of activities refers to the government's or public entity's income statement. It basically lists total revenues minus total expenses. It is divided into 3 categories:
Expenses - all costs incurred including future payments and depreciation accounts (including both governmental and business-type activities). Program revenue - includes all revenues generated from government services, e.g. garbage collection, municipal utilities, or even parking fines. Net cost of services - used for services that cannot support themselves, like schools, parks, emergency services, etc., which must rely on taxes.The rate of return on total assets is computed by dividing _______
Answer:
Dividing Net income by average total assets
Explanation:
The rate of return of total assets is a ratio used in measuring a company's revenue before deductibles when compared to its total net asset. It refers to the ratio between the net income and the average total assets of a given company at a particular point in time. This ratio is most times used to see how effectively an asset is being used in the production process.
Mathematically
ROTA = Net Income ÷ Average Total Asset
Answer:
Equity before interest and tax by Average total asset
Explanation:
The rate of return on total asset is a measure of the ability of an organization to effectively generate a reasonable return for its total assets during a period.
This is calculated by comparing the relativity of the company's earning (equity before interest and tax) to the total net assets.
It is advisable to use equity before interest and tax for this purpose so that the effects of tax and interest will not alter the reality of the result.
The formula is EBIT / average total asset
The unemployment rate of: a. teenagers is much higher than that of adults. b. women greatly exceeds that of men. c. whites is roughly equal to that of African-Americans. d. managerial and professional workers exceeds that of construction and extraction workers.
Answer:
A
Explanation:
Teenagers are more vulnerable than adults. Compared to adults they have less job experience, an employer is likely to always go for the employee with work experiences. The teenager who just entered the labor market is at a disadvantage and will have a more difficult time searching for a job than an adult with a history of work experience. In situations of economic downturns, a teenager is likely to be laid off than the adult because of the cost of investing in them for training purposes.
How does newton's law apply to a company's brand? explain, citing at least one example. the bigger the brand the more force it takes to change where it stands such as let's say apple it would take a big hit to knock them down?
Newton's second law suggest that once in Motion, it does not rest until a force applied, in market terms motion become brand value, and force is innovation.
Newton's Law in Market
As per the question, the brand value of a company is a goodwill of that company in the market, people are attracted because of the brand, there many best smartphones in the market but people are more attracted to two or three brands.
This Brand Value is the Motion of the Newton's second law, in which he argued that something which is motion will not stop until and unless an external force does not stop it. This Force in Market is Innovation, once brandvalue start to come into motion, only the innovation can stop it from growing and vice versa based on which company tends to have best innovative ideas.
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Newton's first law of motion, which states that an object at rest stays at rest and an object in motion stays in motion unless acted upon by an external force, applies to a company's brand by indicating that larger, well-established brands require a significant force to alter their market position, such as Apple.
Newton's first law can be metaphorically applied to a company's brand, suggesting that a strong, established brand like Apple possesses substantial inertia. This brand inertia means it remains dominant and influential unless a significant external force—such as a major scandal, technological failure, or intense competitive pressure—intervenes to disrupt its position.
Brand Inertia:
Established brands like Apple have built substantial market presence and customer loyalty over time.This stability means they are less susceptible to minor market fluctuations and competitive moves.External Forces:
It takes significant events or consistent competitive pressure to challenge and potentially change the position of such a brand.Examples include a major product failure or a groundbreaking innovation from a competitor that redefines market expectations.Apple's strong brand equity and market dominance exemplify how larger brands require substantial external forces to shift their position, illustrating the concept of brand inertia in the context of Newton's first law of motion.