Fox, Greg, and Howe are partners with average capital balances during 20X1 of $120,000, $60,000, and $40,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of $30,000 to Fox and $20,000 to Howe, the residual profit or loss is divided equally. In 20X1 the partnership sustained a $33,000 loss before interest and salaries to partners. By what amount should Fox's capital account change?
A. $7,000 increase
B. $11,000 decrease
C. $35,000 decrease
D. $42,000 increase
Answer:
A. $7,000 increase
Explanation:
-33,000
-30,000
-20,000
-12,000
-6,000
-,4000
-105,000
Distribute equally betwne partner: (35,000)
FOX:
30,000 salary + 12,000 interest - 35,000 los distribution = 7,000 increase
To determine the change in Fox's capital account, we account for interest, salaries, and shared loss. After calculating these amounts, it's found that Fox's capital account should decrease by $11,000. So, option B is correct.
We need to calculate the change in Fox's capital account after accounting for interest on capital, salaries, and the shared loss. First, calculate the total interest on the partners' capitals which is 10% of their respective average balances: Fox at $120,000, Greg at $60,000, and Howe at $40,000.
Fox: $120,000 * 10% = $12,000
Greg: $60,000 * 10% = $6,000
Howe: $40,000 * 10% = $4,000
Next, allocate the salaries: $30,000 to Fox and $20,000 to Howe. Finally, divide the loss of $33,000 equally among the three partners. Each partner's share of the loss is $11,000.
Now we can determine the net change to Fox's capital account:
Interest received: $12,000
Salary received: $30,000
Less share of loss: -$11,000
Net change to Fox's capital account = $12,000 + $30,000 - $11,000 = $31,000
However, Fox's account should decrease by the loss amount of $11,000 since the loss exceeds the sum of interest and salary received. Therefore, if we start with the capital account increase of $31,000 and then subtract $42,000 (the sum of $31,000 and another $11,000 loss to get the true decrease), we find that Fox's capital account should change by:
$31,000 (initial increase) - $42,000 (additional loss required to obtain decrease amount) = $11,000 decrease.
Retro Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. If Retro issues 5,000 shares of preferred stock for land with an asking price of $625,000 and a market value of $550,000, which of the following would be the best journal entry for Retro to record?a. Land 500,000Preferred Stock 500,000b. Land 550,000Preferred Stock 550,000c. Land 625,000Preferred Stock 500,000Paid-in Capital in Excess of Par - Preferred 125,000d. Land 550,000Preferred Stock 500,000Paid-in Capital in Excess of Par - Preferred 50,000
Answer:
c. Land 625,000 Preferred Stock 500,000 Paid-in Capital in Excess of Par - Preferred 125,000
Explanation:
The journal entry is shown below:
Land A/c Dr $625,000
To Preferred stock $500,000
To Paid-in Capital in Excess of Par - Preferred $125,000
(Being issue of preference shares for the land is recorded)
The land is recorded at historical cost or purchase price. In market value, the land should not be recorded that's why we considered asking price
And, the remaining balance is credited to the paid-in-capital account
"Students in a Science lab are working in groups to build both a small and a large electrical circuit. A large circuit uses 4 resistors and 2 capacitors, and a small circuit using 3 resistors and 1 capacitor. There are 100 resistors and 70 capacitors available, and each group must have enough resistors and capacitors to make one large and one small circuit. What is the maximum number of groups that could work on this lab project?"
To find the number of groups that can work on the lab project, calculate how many sets of circuit components can be made from 100 resistors and 70 capacitors. Its found that 14 sets can be made from resistors and 23 sets from capacitors. But since both are needed per group, the maximum number of groups is limited by resistors, giving 14 groups.
Explanation:In order to find the maximum number of groups that can work on the lab project, we need to calculate how many complete sets of 7 resistors (4 for the large circuit and 3 for the small circuit) and 3 capacitors (2 for the large circuit and 1 for the small circuit) can be made using the available resources - 100 resistors and 70 capacitors.
You divide the total number of each component by the number required per set. You should find that 100 resistors divided by 7 resistors/set gives about 14 sets (since you can't have a fraction of a set) and 70 capacitors divided by 3 capacitors/set gives about 23 sets.
This means that while there are enough capacitors for 23 groups, there are only enough resistors for 14 groups. Since each group needs resources for both a large and a small circuit, the limiting factor here is the resistors. Therefore, the maximum number of groups that can work on this lab is 14.
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If market price is greater than the minimum of AVC but below the minimum of AC, then A. revenue covers variable costs and some of the fixed costs and profit is positive. B. revenue covers variable costs and some of the fixed costs, although profit is negative. C. the firm will shut down. D. economic profit is zero.
Answer: If market price is greater than the minimum of AVC but below the minimum of AC, then "B. revenue covers variable costs and some of the fixed costs, although profit is negative.".
Explanation: In perfect competition if the price is higher than the average cost, there are profits.
If the price is equal to the variable cost the extraordinary gains are null, there is a normal benefit.
If the price is lower than the average cost but higher than the average variable cost, the company produces even if it has a negative benefit, because it can still cover the average variable costs.
If the price is less than the average cost and less than the average variable cost, the company closes because it cannot cover the variable costs.
Which of the following statements is most CORRECT? Federal bankruptcy law deals only with corporate bankruptcies. Municipal and personal bankruptcy are governed solely by state laws. All bankruptcy petitions are filed by creditors seeking to protect their claims against firms in financial distress. Thus, all bankruptcy petitions are involuntary as viewed from the perspective of the firm's management.
Answer: All bankruptcy petitions are filed by creditors seeking to protect their claims against firms in financial distress.
Explanation:Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Bankruptcy is not the only legal status that an insolvent person may have, and the term bankruptcy is therefore not a synonym for insolvency. In some countries, such as the United Kingdom, bankruptcy is limited to individuals; other forms of insolvency proceedings (such as liquidation and administration) are applied to companies. Bankruptcy is the legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor's assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt.
If firms in a competitive market are not identical, then an increase in cost for all firms will A. push the most inefficient firms out of the market. B. Need more information. C. shift marginal cost to the right. D. push the most efficient firms out of the market.
Answer:
A. push the most inefficient firms out of the market
Explanation:
The most effecient firms will offer their product at better price than the inefficient firms. Therefore they will be push-out from the market. That's because in a competitive market firms cannot set the price. Their profit are related to his cost and quantity produced:
[tex]Profit = Sales\times Q - C\times Q[/tex]
So a perfectly competitive and efficient firm will be able to sold more quantity than inefficient firm as their average cost will be lower. Therefore, making more profit at better price pushing the less efficient firm out.
Also, an increase in cost shift the marginal cost to the left, not to the right.
José is the manager of Sandy's Candy, a popular confectioner in Illinois. He is in charge of outlining future organizational goals to employees at company meetings and emphasizing the ethical guidelines that employees are expected to follow at work. According to Mintzberg, he is performing the role of a
Answer: Figurehead
Explanation: Figurehead refers to the individual who appears to be in power but do not have much authority in real. The real decision making authority resides on someone's else hands. For example - The queen of England has no power but is still considered as queen.
In the given case, Jose is considered as the manager but still he do not make any decisions. His duties are limited to outlining future goals and making ethical guidelines.
Hence from the above we can conclude that he is performing the role of figurehead.
"The correct answer is: Jose's actions align with the figurehead and liaison roles as defined by Mintzberg. These roles are essential for a manager to effectively lead an organization and maintain its culture and reputation."
Henry Mintzberg identified ten roles that a manager performs within an organization, which can be categorized into three groups: interpersonal roles, informational roles, and decisional roles.
In the given scenario, Jose is performing two distinct roles:
1. Figurehead Role: As a manager, Jose is expected to perform certain ceremonial and symbolic duties. By outlining future organizational goals to employees at company meetings, he is acting as a figurehead. This role involves representing the organization to outsiders as well as performing ceremonial duties within the organization, such as announcing goals and reiterating the company's mission and values.
2. Liaison Role: Jose is also performing the liaison role by establishing and maintaining communication with individuals outside and within the organization. By emphasizing ethical guidelines that employees are expected to follow at work, he is fostering communication and ensuring that the organization's values are understood and upheld by its members. This role is crucial for networking and building relationships that can be beneficial for the organization.
Carla Company was formed on December 1, 2016. The following information is available from Carla’s inventory records for Product BAP. Units Unit Cost January 1, 2017 (beginning inventory) 708 $ 7.00 Purchases: January 5, 2017 1,416 8.00 January 25, 2017 1,534 9.00 February 16, 2017 944 10.00 March 26, 2017 708 11.00 A physical inventory on March 31, 2017, shows 1,888 units on hand. Prepare schedule to compute the ending inventory at March 31, 2017, under FIFO inventory method.
Answer:
Ending Inventory under FIFO mar-31 1.888 19.352
Explanation:
Purch. Unit cost Purcha.. End. Inv. Cost End. Inv
Beg. Inv. Jan-1 708 7 708 0 0
Jan-5 1.416 8 2.124 0 0
Jan-25 1.534 9 3.658 236 2.124
feb-16 944 10 4.602 944 9.440
mar-26 708 11 5.310 708 7.788
Total purchases 5.310
Ending Inventory mar-31 1.888 19.352
Which of the following is not typically considered a function of financial intermediaries?
A. Providing a payment mechanism
B. Investing in real assets
C. Accumulating funds from smaller investors
D. Spreading, or pooling risk among individuals
Answer: The correct answer is "B".
"B. Investing in real assets" is NOT typically considered a function of financial intermediaries.
Explanation: A financial intermediary is an institution specialized in mediation between economic units that save or invest their funds, and units that wish to borrow funds.
Financial intermediaries are dedicated to investing in financial assets.
Segway focuses on the personal people-mover market of individuals who need to move longer distances with ease. Its stand-up scooter is used in two narrow markets: tourist tours and warehouse employee movement. What type of marketing strategy should this company use?
(A) differentiated marketing
(B) niche marketing
(C) mass marketing
Segway should use a niche marketing strategy because they focus on very defined, narrow segment of the market. Niche marketing is about tailoring marketing efforts to meet specific needs of these defined segments.
Explanation:The company, Segway, should use a niche marketing strategy. This is because the company focuses its products (personal people-movers) on very specific, narrow segments of the market (tourist tours and warehouse employee movement). Niche marketing involves designing and promoting products or services for a well-defined, specialized segment of the market. In this case, Segway's specialized segments are individuals in tourism and warehouse operations who need to move over long distances with ease. Through niche marketing, Segway can develop a deep understanding of the specific needs within these segments and create tailored marketing efforts to meet those needs.
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Future value (with changing interest rates). Jose has $6 comma 000 to invest for a 2-year period. He is looking at four different investment choices. What will be the value of his investment at the end of 2 years for each of the following potential investments? a. Bank CD at 4%. b. Bond fund at 7%. c. Mutual stock fund at 11%. d. New venture stock at 23%. a. What will be the value of Jose's bank CD investment that offers an annual rate of return of 4% for 2 years?
Answer:
a.- CD 6,489.60
b.- Bonds 6,869.40
c.- Mutual stock 7,392.60
d.- Venture Stock 9,077.40
Explanation:
We will calculate the future value of a lump sum:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal $6,000.00
time 2 years
rate 4% = 0.04000
[tex]6000 \: (1+ 0.04)^{2} = Amount[/tex]
Amount 6,489.60
b.- bond fund rate 7%
rate 0.07000
[tex]6000 \: (1+ 0.07)^{2} = Amount[/tex]
Amount 6,869.40
c.- Mutual fund rate 11%
rate 0.11000
[tex]6000 \: (1+ 0.11)^{2} = Amount[/tex]
Amount 7,392.60
d.- venture stock rate 23%
rate 0.23000
[tex]6000 \: (1+ 0.23)^{2} = Amount[/tex]
Amount 9,077.40
Assume one investor bought a 10-year inflation-protected bond with a fixed annual real rate of 1.5% and another investor bought a 10-year bond without inflation protection with a nominal annual return of 4.2%. If inflation over the 10-year period averaged 2 percent, which investor earned a higher real return?
A. The investor who purchased the inflation protected bond.
B. The investor who purchased the bond without inflation protection.
C. Both investors earned the same real return.
D. Neither investor earned a positive real return.
Answer:
B. The investor who purchased the bond without inflation protection.
Explanation:
According to fisher, is necessary to calculate the real interest rate of both options for a comparision. The formula is defined as follows:
Real interest rate = nominal rate - inflation
Investor A
1.5% annual rate of interest
There is no inflation to be calculated because the bond is inflation-protected.
Real interest rate = 1.5% - 0 = 1.5%
Investor B
4.2% annual rate of interest
2% average inflation
Real interest rate = 4.2% - 2% = 2.2%
In conclusion, the investor without inflation protection earns a higher real returnExotic Roses, owned by Margarita Rameriz, provides a variety of rare rose bushes to local nurseries that sell Rameriz's roses to the end consumer (landscapers and retail customers). Rameriz grows the roses from cuttings that she has specifically cultivated for their unusual characteristics (color, size, heartiness, and resistance to disease). Margarita's roses are in great demand as evidenced by the wholesale price she charges nurseries, $15 per potted plant. Exotic Roses has the following cost structure (variable costs are per potted plant): Fixed Costs per Year Variable Costs Plant materials $ 0.50 Pot 0.30 Labor $ 8,000 0.70 Utilities 9,000 Rent 7,500 Other costs 2,500 Required: a. How many potted rose plants must Exotic Roses sell each year to break even? b. If Rameriz wants to make profits of $10,000 before taxes per year, how many potted rose plants must be sold? c. If Rameriz wants to make profits of $10,000 after taxes per year, how many potted rose plants must be sold assuming a 35 percent income tax rate?
Answer:
A) break even point= 1407 pots
B) pots= 2148 units
C) pots= 2547 units
Explanation:
We were provided with the following information:
Price= $15
Variable Costs:
Plant materials $ 0.50
Pot 0.30
Labor $ 8,000 ($0.70 hour)
Fixed Costs
Utilities 9,000
Rent 7,500
Other costs 2,500
A) break-even point= fixed cost/ contribution margin
Fixed cost= 9000+7500+2500= $19000
CM= P - Vc= 15 - (0,50+0,30+0,70)=$13,5
break-even point= 19000/13,5= 1407 units
B) Profit= $10000
break-even point= (fixed cost+profit)/ contribution margin
break-even point= 29000/13,5= 2148 units
C) t= 0,35
Profit before taxes= profit after taxes/(1-t)= 10000/0,65=$15385
break-even point= (fixed cost+profit before taxes)/ contribution margin= (15385+19000)/ 13,5= 2547 units
3. Individual Problems 8-3 Suppose that due to the outbreak of a new flu, known as H14N9, the demand for hand sanitizer has tripled. Smith & Smith, a company that produces and sells hand sanitizer, should production of its hand sanitizer. Suppose there is no vaccine for H14N9, and that a vaccine will not be developed for several decades. True or False: Smith & Smith should increase its productive capacity by leasing new plant and equipment.
Answer:
True
Explanation:
As for the provided information, the flu is new in market and has serious issues involved, and now since no remedy or cure is possible and will not be possible even in near future,
The hand sanitizer will help as a preventive action from getting infected to the Flu. Thus, people will buy the sanitizer at huge level.
Thereby, the demand for such product will increase in market in huge, and accordingly even if the company has to increase production capacity through lease it shall do so.
As with huge turnover break even will be realized and there will be profits.
Final answer:
Smith & Smith should indeed consider increasing their productive capacity for hand sanitizer due to the tripling demand resulting from an H14N9 flu outbreak, given the prolonged absence of a vaccine and the consistent economic principle that demand encourages supply, which also justifies the action as a social benefit.
Explanation:
Given that due to the outbreak of H14N9, the demand for hand sanitizer has tripled, it would be a strategic business decision for Smith & Smith to consider increasing production. If we assume that there is no vaccine for H14N9 and that a vaccine will not be available for decades, the sustained high demand for sanitizers seems likely. Therefore, true: Smith & Smith should consider increasing productive capacity by leasing new plant and equipment. This action aligns with the economic principle that demand usually encourages supply, as seen in the pharmaceutical industry when new drugs are developed due to consumer need despite the lengthy and costly process.
Furthermore, maintaining excess production capacity can be partially seen as a social cost. In a pandemic, society benefits from the availability of critical healthcare products, suggesting that the increase in production capacity is also a public good that benefits society at large.
Situation: Better Living Through PowerPoint, LLC is a consulting firm that works with clients to improve internal reporting practices. The firm uses a job-order costing system that allocates overhead on the basis of consultant labor dollars. A client contract is best categorized as which of the following?
Expenditure
Period Cost
Product Cost
Cost Object
Indirect Cost
Answer:
Cost Object
Explanation:
The contract will be a cost object.
Cost for labor and overhead will be assign and allocate to the contract to determinate the cost.
The period cost will be not being assign to the contract.
It will be assigned with product cost like labor cost and, the allocate indirect cost using the overhead predetermined rate
You are thinking of purchasing a house. The house costs $ 350 comma 000$350,000. You have $ 50 comma 000$50,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 3030-year mortgage that requires annual payments and has an interest rate of 6 %6% per year. What will be your annual payment if you sign this mortgage?
Answer:
The annual payment will be 21794,67
Explanation:
M=[tex]P\frac{ r (1+r)^{n} }{(1+r)^{n}-1}[/tex]
M is your payment. ( In this case, annual)
P is the principal.
r is your annual interest rate
n is your number of payments (the number of years you will be paying the loan)
Replacing,
The principal is house cost $350,000 minus the down payment (50000)
P=350000-50000=300000
r=0,06
n=30
M=[tex]300000\frac{ 0.06 (1+0.06)^{30} }{(1+0,06)^{30}-1}[/tex]
M=[tex]300000\frac{ 0.06 (1.06)^{30} }{(1,06)^{30}-1}[/tex]
M=[tex]300000\frac{ 0,0636}{0,9433}[/tex]
M=21794,67
The annual payment for a 30-year mortgage with a 6% interest rate would be approximately $17,978.39.
Explanation:To calculate the annual payment on a 30-year mortgage at an interest rate of 6%, you can use the formula for the present value of an annuity. The formula is:
Payment = Amount / (1 - (1 + interest rate)^(-number of periods)) / interest rate
Using this formula, the annual payment for a $300,000 mortgage would be approximately $17,978.39.
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You’ve decided to buy a house that is valued at $1 million. You have $100,000 to use as a down payment on the house, and want to take out a mortgage for the remainder of the purchase price. Your bank has approved your $900,000 mortgage, and is offering a standard 30-year mortgage at a 10% fixed nominal interest rate (called the loan’s annual percentage rate or APR). Under this loan proposal, your mortgage payment will be per month. (Note: Round the final value of any interest rate used to four decimal places.)
Answer:
Ans. Your mortgage payment will be $7,898.14 per month.
Explanation:
Hi, first, we need to find the equivalent effective monthly rate for 10% APR, that is 10% / 12= 0.8333% effective monthly.
After that, we have to present the periods of the loan in months, that is 30 years * 12 = 360 months
Now, we are ready to find the answer, we need to use the following equation and solve for "A"
[tex]Present Value=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }[/tex]
Where:
A= our answer
r= interest rate (0.8333% effective monthly)
n= periods of periodic payment (in our case 360 months)
The math to this is as follows.
[tex]900,000=\frac{A((1+0.008333)^{360}-1) }{0.008333(1+0.008333)^{360} }[/tex]
[tex]900,000=A(113.95082)[/tex]
[tex]\frac{900,000}{113.95082} =A[/tex]
[tex]A=7,898.14[/tex]
Best of luck.
Pat earns $25,000 per year (after taxes), and Pat's spouse, Chris, earns $35,000 (after taxes). They have two pre-school children. Childcare for their children costs $12,000 per year. Pat has decided to stay home and take care of the children. Pat must:
A. value spending time with the children by more than $25,000.
B. value spending time with the children by more than $12,000.
C. value spending time with the children by more than $13,000.
D. value spending time with the children as much as does Chris
Answer:
C. Value spending time with the children by more than $13,000.
Explanation:
Given that Pat earns $25,000 per year after taxes and the childcare costs $12,000 per year, the value of spending time with with the children will be more than $13,000. If Chris becomes a stay at home parent, the value would have been $23,000 as $12,000 will be paid for the childcare. The amount is calculated by finding the difference between the earnings and childcare costs.
Final answer:
Pat must value spending time with the children by more than $13,000, as this represents the economic trade-off between the foregone income of $25,000 and the savings in childcare costs of $12,000. Hence, the correct option is C.
Explanation:
The question asks whether Pat should value spending time with the children over the income that could be earned from working. Pat earns $25,000 per year, while childcare costs are $12,000 per year. To determine if staying home to care for the children is an economically sound decision, we must compare the income foregone ($25,000) with the savings in childcare costs ($12,000).
When Pat stops working, the family foregoes Pat's income but saves on childcare costs. Therefore, Pat would need to value spending time with the children by more than $13,000, which is the difference between the income foregone and the childcare costs saved. This suggests that for Pat's decision to make economic sense, the non-monetary value of staying home must exceed this amount.
Option C, which indicates that Pat must value spending time with the children by more than $13,000, is the correct answer because it represents the economic trade-off involved in the decision.
Wheels, Inc. manufactures wheels for bicycles, tricycles, and scooters. For each cost given below, determine if the cost is a product cost or a period cost. If the cost is a product cost, further determine if the cost is direct materials (DM), direct labor (DL), or manufacturing overhead (MOH) and then determine if the product cost is a prime cost, conversion cost, or both. If the cost is a period cost, further determine if the cost is a selling expense or administrative expense (Admin). Cost (a) is answered as a guide.
Solution:
Cost Product Period
DM DL MOH Prime Conversion Selling Admin.
a. Metal used for rims X X
b. Sales salaries
c. Rent on factory
d. Wages of assembly
workers
e. Salary of production
supervisor
f. Depreciation on
office equipment
g. Salary of CEO
h. Delivery expense
Answer:
a. Metal used for rims: Product - DM- Prime
b. Sales salaries: Period - Selling
c. Rent on factory: Product - MOH - Conversion
d. Wages of assembly workers: Product - DL - Prime - Conversion
e. Salary of production supervisor: Period - Admin
f. Depreciation on office equipment: Period
g. Salary of CEO: Period - Admin
h. Delivery expense: Period - Selling
Explanation:
- Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.
- Direct labor is production or services labor that is assigned to a specific product, cost center, or work order.
- Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.
- 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.
- 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.
- Prime cost= direct material + direct labor
- Conversion cost= direct labor + MOH
In this exercise:
a. Metal used for rims: Product - DM- Prime
b. Sales salaries: Period - Selling
c. Rent on factory: Product - MOH - Conversion
d. Wages of assembly workers: Product - DL - Prime - Conversion
e. Salary of production supervisor: Period - Admin
f. Depreciation on office equipment: Period
g. Salary of CEO: Period - Admin
h. Delivery expense: Period - Selling
The different costs at Wheels, Inc. are categorized into Product or Period costs. Product costs are those directly associated with production, including Direct Materials, Direct Labor, and Manufacturing Overhead. Period costs are not directly tied to production and include Selling and Administrative Expenses.
Explanation:In financial accounting, businesses categorize costs as either
product
or
period costs
.
Product costs
are expenses directly tied to the production of goods including Direct Materials (DM), Direct Labor (DL), and Manufacturing Overhead (MOH). They can further be categorized as a prime cost (DM, DL), conversion cost (DL, MOH), or both.
Period costs
are not directly tied to production. They include Selling and Administrative Expenses. Here's how the costs of Wheels, Inc. gets categorized:
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The Four Tigers refers to ____.
a. The Triad of developed economies (North America, Western Europe, and Japan) plus China
b. The noncommunist countries (Argentina, Brazil, India, and Mexico) that focused on fostering and protecting domestic industries in the aftermath of WWII
c. The economies of Hong-Kong, Singapore, South Korea, and Taiwan that achieved developed (high income) status and inspired more countries to join the world economy.
d. The emerging economies of Brazil, Russia, India and China
Answer:
C.
Explanation:
The Four Tigers also known as Four Asian Tigers is a reference to four nations in East Asia: Singapore, South Korea, Hong Kong and Taiwan. All four economies had high growth rates amid broad expansion between the 1950s and the 1990s, but also through today.
At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $309,000 and $600 (credit) in Allowance for Uncollectible Accounts. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. Bad debt expense for the year should be:
Answer:
Bad debt expense $ 14.850
Explanation:
Initial Balance
Accounts Receivable $ 309.000
Allowance for Uncollectible Accounts $ 600
Should be 5% of the Accounts Receivables
Allowance for Uncollectible Accounts $ 15.450
We must calculate the difference between the actual balance and the must be balance.
Adjustment entry
Bad debt expense $ 14.850
Allowance for Uncollectible Accounts $ 14.850
END Balance
Accounts Receivable $ 309.000
Allowance for Uncollectible Accounts $ 15.450
In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. How much must you invest each month in a mutual fund yielding 11.5% compounded monthly to become a millionaire in 10 years? (Round your answer to the nearest cent.)
Answer:
Ans. In order to become a millionaire in 10 years, you must invest in this mutual fund $4,476.21 at the end of every month, for 120 months (10 years)
Explanation:
Hi, first, we have to transform this compound rate into an effective rate. this is as follows.
[tex]r(EffectiveMonthly)=\frac{r(compound monthly)}{12} =\frac{0.115}{12}=0.009583[/tex]
So, the effective monthly rate that we have to use is 0.9583% and the formula (Future value of an annuity) only works if the rate has the same units as the periods, therefore, we just go ahead and transform years into months. That is 10Years*12=120 months.
And now, in order to reach $1,000,000 in 10 years, we need to use the following formula.
[tex]FutureValue=\frac{A((1+r)^{n} -1)}{r}[/tex]
Using the data we just worked on, everything should look like this.
[tex]1,000,000=\frac{A((1+0.009583))^{120} -1)}{0.009583}[/tex]
And we solve for A, as follows
[tex]A=\frac{1,000,000*(0.009583)}{(1+0.009583)^{120}-1 } =4,476.21[/tex]
And there you go, in order to become a millionaire (reach 1,000,000) you are going to need to invest in this mutual fund $4,476.21 every month, at the end of each month, for 120 months.
Best of luck.
Customer management in international contracts includes all of the following except
the customer's internal organizational structure.
the vendor's organizational structure.
governmental organizational structure.
how the customer's and vendor's two structures will interact.
Answer: governmental organizational structure.
Explanation: When two parties with different nationality made a contract regarding taking care of the seller and customer relationship then such contract will be termed as international customer management contract.
Such contracts are usually written in formal manner and includes obligations to be performed and rights of both parties in case of any default. The government organizational culture affects it indirectly but is not a part of it.
Hence, from the above we can conclude that the correct option is c.
Answer:
governmental organizational structure.
Consider the following balance sheet for Go The Distance Trading Cards. Sales were $1,162,184.00 in the past year. Go The Distance Trading Cards Balance Sheet, 2018: Account Amount Assets: Current Assets $75,000 Net fixed Assets (Net PPE) $225,000 TOTAL ASSETS $300,000 Liabilities and Shareholder Equity Current Liabilities $50,000 Long-term liabilities (Long term debt) $100,000 TOTAL LIABILITIES $150,000 Shareholder equity $150,000 TOTAL LIABILITIES AND EQUITY $300,000 What is the total asset turnover for this firm?
Answer:
Ans. Total assets Turnover= 3.87
Explanation:
Hi, well all we need to do is use the following formula.
[tex]Total AssetsTurnover=\frac{NetSales}{AverageTotal Assets}[/tex]
Since there are no other values for assets (with what to find the average), we should just use $300,000. So the final answer to this question is:
[tex]Total AssetsTurnover=\frac{1,162,184}{300,000} =3.87[/tex]
So, the total assets turnover for this company is 3.87 times a year.
Best of luck
A mass-production plant has eight machines and currently operates one 8-hour shift per day, 5 days per week, 50 weeks per year. Each machine produces the same part at a rate of 24 parts per hour. (a) Determine the annual production capacity of this plant. (b) If the plant were to operate three 8-hour shifts per day, 7 days per week, 52 weeks per year, determine the annual percentage increase in plant capacity?
Answer:
A) Annual capacity= 48000 parts
B) Annual capacity= 69888 parts
Explanation:
Giving the following information:
Eight machines
8-hour shift per day, 5 days per week, 50 weeks per year.
Each machine produces the same part at a rate of 24 parts per hour.
A) Annual capacity= [(24*8)*5]*50= 48000 parts
B) Annual capacity= [(24*8)*7]*52= 69888 parts
Final answer:
The annual production capacity of the plant initially is 384,000 parts/year. When operations increase to three 8-hour shifts daily, 7 days a week, for 52 weeks a year, the capacity expands to 1,142,848 parts/year. The capacity increase is 197.62%.
Explanation:
The question asks for the calculation of the annual production capacity of a manufacturing plant under two different operational scenarios, and the percentage increase in capacity if the operational hours are changed.
Part A: Initial Annual Production Capacity
To calculate the initial annual production capacity:
Production rate per machine: 24 parts/hour
Number of machines: 8
Hours per day: 8
Days per week: 5
Weeks per year: 50
Annual production capacity = 24 parts/hour * 8 machines * 8 hours/day * 5 days/week * 50 weeks/year = 384,000 parts/year.
Part B: New Operational Scenario and Percentage Increase
In the new scenario:
Shifts per day: 3
Days per week: 7
Weeks per year: 52
New annual production capacity = 24 parts/hour * 8 machines * 8 hours/shift * 3 shifts/day * 7 days/week * 52 weeks/year = 1,142,848 parts/year.
The percentage increase in capacity is calculated by:
((1,142,848 - 384,000) / 384,000) * 100 = 197.62%
Therefore, the plant capacity increases by 197.62% when moving from one to three shifts a day, operating seven days a week for 52 weeks a year.
Suncoast Construction Company began work on a $900,000 construction contract in 2017. During 2017, Suncoast incurred costs of $380,000, billed its customer for $300,000, and collected $220,000. At December 31, 2017, the estimated future costs to complete the project total $570,000. Prepare Archer's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method.
Answer:
Total estimated costs = Suncoast incurred costs + estimated future costs
= $380,000 + $570,000
= $950,000
Contract price = $900,000
Loss = Total estimated costs - Contract price
= $950,000 - $900,000
= $50,000
The project is unprofitable.
[tex]Percentage\ of\ completion\ method=\frac{Costs\ incurred}{Total\ estimated\ costs}[/tex]
[tex]Percentage\ of\ completion\ method=\frac{380,000}{950,000}[/tex]
= 0.4
= 40%
Construction revenue in 2017 = contract price × percent complete
= $900,000 × 40%
= $360,000
The entire loss is recognized under two methods for an unprofitable project.
The journal entries are as follows:
(a) Construction expense A/c Dr. $410,000
To Construction in process $50,000
To Construction Revenue $360,000
(To record entire loss on overall unprofitable contract)
(b) Loss from contract A/c Dr. $50,000
To Construction in process $50,000
(To record entire loss on overall unprofitable contract)
In early 2008, you purchased and remodeled a 120-room hotel to handle the increased number of conventions coming to town. By mid-2008, it became apparent that the recession would kill the demand for conventions. Now, you forecast that you will be able to sell only 10,000 room-nights, which cost $80 per room per night to service. You spent $20.00 million on the hotel in 2008, and your cost of capital is 10%. The current going price to sell the hotel is $15 million. If the estimated demand is 10,000 room-nights, the break-even price is $ per room, per night. (Hint: Remember that the cost of capital is the opportunity cost, or true cost, of making an investment.)
Answer:
To solve this problem, first let us calculate for the total cost:
Total cost = Capital cost + Cost of capital
Total cost = $ 20 M + 0.10* $ 20 M
Total cost = $ 22 M
The breakeven point would be the price in which the total earnings is equal to the total cost. Therefore:
$ 15M + 20,000 * X = $ 22 M
Where X is the breakeven price in dollars per room per night
Calculating for X:
20,000 * X = $ 7 M
X = $ 350
Therefore the break even price is $ 350 per room per night.
Explanation:
Mark as brainiest
Final answer:
The break-even price per room, per night, considering variable costs, fixed costs, and the cost of capital, is calculated to be $2280. This price is likely to make the hotel business unviable during the recession period.
Explanation:
To calculate the break-even price per room, per night, we need to consider both variable and fixed costs, as well as the cost of capital, which is the opportunity cost of investing in the hotel. The variable costs amount to $80 per room, per night for the 10,000 room-nights forecasted to sell. The fixed costs consist of the initial $20 million investment. The cost of capital is 10%, which translates to a $2 million opportunity cost for the first year (10% of $20 million). This means the total costs for the first year are the sum of the fixed costs, variable costs, and the cost of capital. The total cost can be calculated as follows:
Calculate the total variable costs: 10,000 room-nights imes $80/room-night = $800,000.
Add the fixed costs (initial investment): $800,000 + $20,000,000 = $20,800,000.
Add the cost of capital for one year: $20,800,000 + $2,000,000 = $22,800,000.
Now, to find the break-even price, we divide the total costs by the number of room-nights:
$22,800,000 / 10,000 room-nights = $2280/room-night.
Therefore, the break-even price would be $2280 per room, per night. However, this price seems exceptionally high for a hotel room and might indicate that the business is not viable under these conditions.
Bagels and cream cheese are complementary goods. The price of flour, used to make bagels, has fallen. As a result, the equilibrium price of cream cheese ______ and the equilibrium quantity of cream cheese ______.
(A) Rises; rises
(B) Rises; falls
(C) Falls; falls
(D) Falls; rises
Answer: When the price of the flour falls, the equilibrium price of the cream rises and the equilibrium quantity of the cream cheese also rises
Answer A is correct
Explanation:
if flour is cheaper, bagels are chepear so demand increases and both equilbrium price and equilibrium quantity rises
Final answer:
When the price of flour used to make bagels falls, the equilibrium price of cream cheese rises and the equilibrium quantity of cream cheese also rises, based on their status as complementary goods. Cross price elasticity of demand shows that bagels and cream cheese are complements, and income elasticity indicates that bagels are a normal good.
Explanation:
Given that bagels and cream cheese are complementary goods, a decrease in the price of flour, which is used to make bagels, would likely lead to an increase in the supply of bagels, thereby reducing their price. The lower price of bagels would increase the demand for cream cheese, as they are often consumed together, thus increasing the equilibrium quantity of cream cheese. However, the price change of cream cheese depends on the relative changes in supply and demand; if the demand increases by a higher proportion than the increase in supply, the price of cream cheese will rise. Conversely, if the supply increases more significantly than the demand, the price may fall. Assuming that the demand for cream cheese increases due to the increased consumption of bagels, the answer would be (A) Rises; rises.
To determine the cross price elasticity of demand for cream cheese with respect to the price of bagels, we use the given percentage changes: eAB = (-3%)/(10%) = -0.3. This negative value indicates that bagels and cream cheese are complements. Now, calculating the income elasticity of demand: ey = (+1%)/(10%) = +0.1. Since this is a positive value, it shows that bagels are considered a normal good.
Which of the following is an ad hominem fallacy? Select one: a. Other brands of toothpaste might promise you "dazzling white teeth," but those corporations are deceiving you. Only Lima Bean Green Toothpaste will give you the smile you desire. b. Join the millions of trendy tooth brushers who have discovered the whitening, brightening, cavity fighting power of new and improved Lima Bean Green Toothpaste! c. The time the two of you spend together is perfect because of your dazzling white teeth. d. Try it for yourself, and you will see the difference.
Answer:
A.
Explanation:
Ad hominem is a logical fallacy that involves a personal attack. An argument based on the perceived failings of an adversary rather than on the merits of the case.
The only argument that is attacking the adversary is the option A, where it is implied that other companies are deceiving you. That is not relevant to how Lima Bean Green Toothpaste can give you a better smile. So that's why it's defined as a ad hominem fallacy.
Which of the following statements is MOST correct?A. Because the cost of debt is lower than the cost of equity, value-maximizing firms maintain debt ratios of close to 100%.B. Corporations that are 100% equity financed will have a much lower weighted average cost of capital because the lack of debt lowers their risk of bankruptcy.C. The source of capital with the lowest after-tax cost is preferred stock, because it is a hybrid security, part debt and part equity.D. The cost of a particular source of capital is equal to the investor's required rate of return after adjusting for the effects of both flotation costs and corporate taxes.
Answer:
B. Corporations that are 100% equity financed will have a much lower weighted average cost of capital because the lack of debt lowers their risk of bankruptcy.
Explanation: