Answer:
The correct answer is No, because due to intense producer-producer rivalry.
Explanation:
In economics, competition means rivalry of competition between companies that participate in a market that apply better strategies so that they can minimize their costs, maximize their profits and thus remain active and innovative vis-à-vis other companies.
With this, it seeks that the economic agents strive to improve the use of resources to produce goods and services, and to improve and innovate in the quality and variety of these, with the purpose that results in improvements in competitiveness and more benefit for the consumer , all this to achieve greater economic growth and social welfare.
Listing LES's products on a price comparison website can increase visibility and potential sales, but it also introduces more competition. Over time, this might negatively impact sales if competitors offer better or cheaper products, as customers often value price over store loyalty on such platforms.
Explanation:Providing product listings and prices on a comparison website like Pricesearch can indeed boost business visibility and possibly sales. However, sustainable economic profits may not be guaranteed. This is due to the increased competition that such a platform invites. Listing the Local Electronics Shop (LES)'s products along with those of numerous other stores could expose LES to the risk of losing customers who may find better or cheaper products from competitors.
It is also important to remember that customers who shop on such platforms typically value price over loyalty to a particular store. If LES is unable to offer the most competitive prices, it could potentially lose sales. So while there may be a short-term boost in profits due to increased visibility and traffic, in the long term, the risk of increased competition could mitigate these benefits.
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An economist makes an assumption that each additional year of education causes future wages to rise by 7 percent. In this model, if a person with 12 years of education makes $21 000 per year, then a person with 4-year college degree would earn ? per year. (Round your intermediate calculations to two decimal places.)
Answer:
Wage year 4= $12222.19
Explanation:
Giving the following information:
Each additional year of education causes future wages to rise by 7 percent.
A person with 12 years of education makes $21 000 per year.
A person with 4 years of education=$?
We will use the present value formula to calculate the wage in year 0. Then with the final value formula calculate the year 4 wage.
PV= FV/[(1+r)^n]
FV=final value at t time
r= rate
n= period of time
PV= 21000/(1,07^12)= $9324. 2511
Final Value= PV*(1+r)^t
Final Value year 4= 9324.2511*(1,07^4)= $12222.19
The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $12,800 will be worth $16,843.93 seven years in the future, what is the implied interest rate the investor will earn on the security—assuming that no additional deposits or withdrawals are made? 3.20% 1.32%
Answer:
r = 4% at this rate a principal of 12,800 returns 16,843.93 in seven years
Explanation:
We will calculate the interest rate at which a principal of 12,800 return 16,843.93 in seven years
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal 12,800
time 7 years
rate ?
Amount 16,843.93
[tex]12800 \: (1+ r)^{7} = 16,843.93[/tex]
[tex](1+r)^{7} = 16,843.93\div12,800\\\\r =\sqrt[7]{16,843.93\div12,800} -1[/tex]
r = 0.0400
r = 4%
Which of the following statements is correct? rev: 05_15_2018 Multiple Choice Both perfectly competitive and monopolistic firms are price takers. A perfectly competitive firm is a price taker, while a pure monopoly is a price maker. Both perfectly competitive and monopolistic firms are price makers. A perfectly competitive firm is a price maker, while a pure monopoly is a price taker.
Answer:
The correct answer is the second statement.
Explanation:
Perfect competition is the market structure where there is a large number of buyers and sellers. These firms produce homogenous products. This type of market has no restriction on entry and exit of firms in the market. There are so many buyers and sellers that any single buyer or seller is not able to influence the price or output. So, the firms are price takers.
Monopoly is a market structure where there is only a single seller. There is a restriction on entry and exit of new firms in the market. Because of being the only producer in the market, a pure monopoly firm is able to fix price on its own. So, it faces a downward-sloping demand curve. The price and output are determined at the point where marginal revenue is equal to marginal cost.
Exercise 21-11 Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following. Units to be produced (by quarters): 10,400, 12,400, 14,200, 16,600. Direct labor: Time is 1.7 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.30; and maintenance $0.70. Fixed overhead costs per quarter: supervisory salaries $36,580; depreciation $17,620; and maintenance $13,700. Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e.g. 1.25. List variable expenses before fixed expense.)
Answer:
Instructions are listed below
Explanation:
Giving the following information:
Units to be produced (by quarters): 10,400, 12,400, 14,200, 16,600. Direct labor: Time is 1.7 hours per unit.
Variable overhead costs per direct labor hour:
indirect materials $0.80;
indirect labor $1.30;
maintenance $0.70.
Fixed overhead costs per quarter: supervisory salaries $36,580; depreciation $17,620; and maintenance $13,700.
Manufacturing overhead budget:
First-quarter: (10400 units)
Indirect materials= (0.80*1.7)*10400= $14144
Indirect labor=(1.3*1.7)*10400= 22984
Maintenance= (0.70*1.7)*10400= 12376
Total variable cost= 49504
Fixed costs:
supervisory salaries= $36,580
depreciation= $17,620
maintenance= $13,700.
Total fixed cost= $67900
Total first quarter= $117,404
Second-quarter: (12400 units)
Indirect materials= (0.80*1.7)*12400 = $16864
Indirect labor=(1.3*1.7)*12400 = 27404
Maintenance= (0.70*1.7)*12400 = 14756
Total variable cost= 59024
Fixed costs:
Total fixed cost= $67900
Total cost second quarter= 126,924
Third-quarter: (14200 units)
Indirect materials= (0.80*1.7)*14200 = $19312
Indirect labor=(1.3*1.7)*14200 = 31382
Maintenance= (0.70*1.7)*14200 = 16898
Total variable cost= 67592
Fixed costs:
Total fixed cost= $67900
Total cost third quarter= 135492
Fourth quarter: (16600 units)
Indirect materials= (0.80*1.7)*16600 = $22576
Indirect labor=(1.3*1.7)*16600 = 36686
Maintenance= (0.70*1.7)*16600 = 19754
Total variable cost= 79016
Fixed costs:
Total fixed cost= $67900
Total cost fourth quarter= 146916
Total cost of the year= 117,404 + 126,924 + 135,492 + 146,916= $526,736
The manufacturing overhead budget for Atlanta Company is created by calculating the variable costs based on direct labor hours and then adding the fixed costs for each quarter to derive total costs.
Explanation:The preparation of the manufacturing overhead budget for Atlanta Company involves calculating both variable and fixed overhead costs for each quarter and summing them up to get the total costs. Variable costs are those that change with the level of production, such as indirect materials, indirect labor, and maintenance costs, and are calculated on a per direct labor hour basis. Fixed costs, such as supervisory salaries, depreciation, and maintenance, remain constant irrespective of the production levels.
For each quarter, the total variable overhead costs are calculated by multiplying the variable costs per direct labor hour by the total direct labor hours needed for production (units to be produced multiplied by the direct labor time per unit). Then, the fixed overhead costs are added to the total variable overhead costs to yield the total manufacturing overhead costs for the quarter.
At January 1, 2018, Transit Developments owed First City Bank Group $600,000, under an 11% note with three years remaining to maturity. Due to financial difficulties, Transit was unable to pay the previous year’s interest. First City Bank Group agreed to settle Transit’s debt in exchange for land having a fair value of $450,000. Transit purchased the land in 2014 for $325,000. Required: Prepare the journal entry(s) to record the restructuring of the debt by Transit Developments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
interest payable 66,000
note payable 384,000
Land 325,000
Gain on disposal 125,000
Explanation:
600,000 x 11% = 66,000 interest payable
the land is being used to settle the note along with the accrued interest at the time:
the accounting of Transit developments record the land at cost: 325,000
as the market valuye is 450,000 so a gain for 125,000 will be recognize.
450,000 market value - 66,000 interest payable: 384,000 payment on the note principal
the entry will write-off the interest payable, decrease the note by that amount and recognize the land gain on disposal
Slotnick Chemical received $230,000 from customers as deposits on returnable containers during 2018. Ten percent of the containers were not returned. The deposits are based on the container cost marked up 10%. How much profit did Slotnick realize on the forfeited deposits?
Answer:
$20,909.09
Explanation:
We have been given that Slotnick Chemical received $230,000 from customers as deposits on returnable containers during 2018. 10% of the containers were not returned. The deposits are based on the container cost marked up 10%.
The price after mark-up would be [tex]100\%+10\%=110\%[/tex]
To find the profit on the forfeited deposits, we will divide $230,000 times 10% by 110% as:
[tex]\text{Profit on the forfeited deposits}=\frac{\$230,000\times 10\%}{110\%}[/tex]
[tex]\text{Profit on the forfeited deposits}=\frac{\$230,000}{11}[/tex]
[tex]\text{Profit on the forfeited deposits}=\$20,909.0909[/tex]
[tex]\text{Profit on the forfeited deposits}\approx \$20,909.09[/tex]
Therefore, Slotnick realize a profit of $20,909.09 on the forfeited deposits.
Southeast Corporation made sales of $ 950 million during 2018. Of this amount, Southeast collected cash for $ 876 million. The company's cost of goods sold was $ 260 million, and all other expenses for the year totaled $ 275 million. Also during 2018, Southeast paid $ 410 million for its inventory and $ 250 million for everything else. Beginning cash was $ 75 million. a. How much was Southeast's net income for 2018? b. How much was Southeast's cash balance at the end of 2018? a. How much was Southeast's net income for 2018?
Answer:
The cash balace was $291.000.000
The Net Income was $415.000.000
Explanation:
You have to divide the operations in two the operations that represent cash flow and operations that only represent a register in the accounting but doesn't represent money exchange.
Net income
Sales $950.000.000
Cost of sold goods -$260.000.000
other expenses -$415.000.000
Total net income $415.000.000
Cash balance
Beginning Cash $75.000.000
Collected cash +$876.000.000
Paid invetory - $410.000.000
Paid Everything else - $250.000.000
Total cash balance $291.000.000
As you can see the first things that you have to do is clasified the movements if they represents money gets by yhe company(+) or cost or expeditures(-), and after you have to make the operations.
In 2014, Hobbs Corp. acquired 12,000 shares of its own $1 par value common stock at $18 per share. In 2015, Hobbs issued 8,000 of these shares at $25 per share. Hobbs uses the cost method to account for its treasury stock transactions. What accounts and what amounts should Hobbs credit in 2015 to record the issuance of the 8,000 shares?
Answer:
It will credit:
Treasury Stock for 144,000
Additional Paid-in TS for 56,000
Explanation:
for the purchase Hobbs did:
treasury stock 216,000
cash 216,000
the entry for the issuance of 8,000 shares will be:
cash proceeds debit: 8,000 x 25 = 200,000
treasury stock at cost: 8,000 18 = 144,000 credit
additional paid-in treasury stock for the difference 200,000 - 144,000 = 56,000
the entry will be:
cash 200,000 debit
Treasury Stock 144,000 credit
Sdditional Paid-in TS 56,000 credit
On December 12, 2018, Pace Electronics received $43,200 from a customer toward a cash sale of $432,000 of diodes to be completed on January 16, 2019. What journal entries should Pace record on December 12 and January 16? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
cash 43,200
unearned services 43,200
to reord payment in advance
account receivables 388,800
unearned services 43,200
service revenue 432,000
to record completion of diodes request of December 12th
Explanation:
the accounting will match revenues with the time at they occur.
Also it will follow conservatism principles and do not recognize revenue until is secure.
Because, the customer may cancel the request it will not recognize any revenue until the goods are delviered andaccepted from the customer.
That occurs on January 16th so hthe revenue will be in that entry.
For Deceber 12th the reception of cash will be against unearned revenue as on that date, the company takes the obligation to do the job.
Anchored inflationary expectations are people's expectations of future inflation that:
A. increase if inflation rises temporarily.
B. are based on the unemployment rate.
C. do not change if inflation rises temporarily.
D. are based on the level of potential output.
Answer:
C) do not change if inflation rises temporarily
Explanation:
Anchored in economics means being insensitive to certain information due to a bias or belief. Anchored inflationary expectations is basically the belief that inflation won't raise
Problem Page Watson Company's employees earn $290 per day and are paid on Friday for a five-day work week. This year, December 31 is a Thursday. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on: (a) Income statement accounts (overstated, understated, or no effect)? (b) Net income (overstated, understated, or no effect)? (c) Balance sheet accounts (overstated, understated, or no effect)?
Answer:
inocme statment:
wages expense: understate
net income overstate
blanace sheet
wages payable: understate
Retained Earnings: overstate
Explanation:
If the adjusting entry is not made, then the expenses will be lower than it should.
Thereofre the net income will be overstate as there are more expenses but weren't recorded.
the balance sheet will not represent accurate the liabilities as there is wages payable which are not recorded.
also, in the blaance sheet the Retained Earnings account will be overstate as it include the net income which is overstate.
You need to accumulate $10,000. To do so, you plan to make deposits of $1,250 per year, with the first payment being made a year from today, in a bank account that pays 12 percent interest, compounded annually. Your last deposit will be less than $1,250 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal, and how large will the last deposit be?
It will take you 6years. The final deposit will be $3,458. The final date on which you can make a deposit into a Cash ISA, as specified in the additional terms and conditions provided to you when you open your specific Cash ISA.
What is interest?Interest is the payment of an amount above the principal sum by a borrower or deposit-taking financial institution to a lender or depositor at a specific rate. It is distinct from a fee paid by the lender to the borrower or a third party.In its most basic form, interest is calculated as a percentage of the principal. For example, if you borrow $100 from a friend and agree to repay it with 5% interest, your interest payment would be 5% of $100: $100(0.05) = $5.Here,
The initial deposit will be $1,250.
We will have $1,400 at the end of the year. We employ an interest formula.
A=P (1+r)ⁿ
A=Final total
P stands for Principal ( deposit)
r = the interest rate
n= time
A=1250 (1+0,12)¹=1400
We will deposit $1,250 in year 2 and have accumulated $1,400.
As a result, P will be $1250 + $1400 = $2650.
A=2650 (1+0,12)¹=$2.968
Year 3 = deposit 1250+ total 2.968
A= 4.724,16
Year 4 = deposit 1250+ totalled 4.724,16
A= 6.691,06
Year 5 = deposit 1250+ totalled 6.691,06
A= 8.893,99
We are almost there, so we must perform another calculation.
Year 6 = A Final = 10000= (deposit +accumulated) * 112
So here,
deposit=(10000/112)-8.893,99
Last deposit= $3,458.
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Final answer:
To reach a $10,000 goal with deposits of $1,250 per year and 12% interest compounded annually, it will take approximately 9.85 years. The last deposit will be $750.
Explanation:
To calculate how many years it will take to reach your $10,000 goal, we can use the formula for compound interest:
Final Amount = Principal Amount × (1 + Interest Rate)^Number of Years
In this case, the final amount is $10,000, the principal amount is $1,250, and the interest rate is 12%. Let's solve for the number of years:
$10,000 = $1,250 × (1 + 0.12)^Number of Years
To find the number of years, we can divide both sides of the equation by $1,250 and take the logarithm of both sides:
Number of Years = log(10,000/1,250)/log(1.12)
Using a calculator, we find that it will take approximately 9.85 years to reach the $10,000 goal. Since you make deposits yearly, the last deposit will be made in the 10th year. To calculate the amount of the last deposit, we subtract the sum of the previous deposits (9 deposits of $1,250) from the $10,000 goal:
Last Deposit = $10,000 - (9 × $1,250)
Last Deposit = $10,000 - $11,250
Last Deposit = $750
Logan Corporation issues 40,000 shares of $50 par value preferred stock for cash at $60 per share. In the stockholders' equity section, the effects of the transaction above will be reporteda. entirely within the capital stock section.b. entirely within the additional paid-in capital section.c. under both the capital stock and additional paid-in capital sections.d. entirely under the retained earnings section.
Answer:
c. under both the capital stock and additional paid-in capital sections
Explanation:
In the given question, the corporation issued 40,000 shares for $50 par value and for cash $60 per share
So, it affects the two accounts, one is preferred stock and the second is additional paid-in capital.
The preference stock should be increased by $2,000,000 (40,000 shares × $50)
Whereas the difference of $400,000 (40,000 shares × $10) would be transferred to additional paid in the capital account
And, the preferred stock has come under a capital stock account that's why we considered both the things
In order to achieve trust in supply chain relationships, there must be a perception of fairness and justice from all supply chain members.
a. True
b. False
Answer: True
Explanation:
Yes, the given statement is true as, to achieve trust in the relationship of the supply chain then, it must be perception of justice and fairness from all the members of the supply chain.
It basically help to improve in the development and productivity of the organization by fair trade. The supply chain always monitor the labelled product and ensure its integrity towards their particular work.
Salt Corporation's contribution margin ratio is 75% and its fixed monthly expenses are $55,000. Assume that the company's sales for May are expected to be $114,000. Required: Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.
Answer:
The company's net operating income for May is $30,500
Explanation:
For computing the net operating income, first, we have to compute the contribution by applying the contribution margin formula. The formula is shown below:
Contribution margin = (Contribution ÷ Sales)
75% = (Contribution ÷ $114,000)
So contribution would be equal to
= $114,000 × 75%
= $85,500
And the fixed expenses are $55,000
So, the net operating income equal to
= Contribution - fixed expenses
= $85,500 - $55,000
= $30,500
To estimate Salt Corporation's net operating income for May, the contribution margin ratio of 75% can be used to calculate the variable expenses. By subtracting the variable and fixed expenses from the sales, the net operating income is determined to be $30,500.
Explanation:To estimate Salt Corporation's net operating income for May, we can use the formula:
Net Operating Income = Sales - (Variable Expenses + Fixed Expenses)
The contribution margin ratio is 75%, so the variable expenses can be calculated as (Sales * 0.25). Given that the fixed expenses are $55,000, and the expected sales for May are $114,000, we can substitute the values into the formula:
Net Operating Income = $114,000 - (($114,000 * 0.25) + $55,000)
Simplifying the equation gives:
Net Operating Income = $114,000 - ($28,500 + $55,000)
Net Operating Income = $114,000 - $83,500
Net Operating Income = $30,500
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You want to buy a house within 3 years, and you are currently saving for the down payment. You plan to save $10,000 at the end of the first year, and you anticipate that your annual savings will increase by 5% annually thereafter. Your expected annual return is 9%. How much will you have for a down payment at the end of Year 3? Do not round intermediate calculations. Round your answer to the nearest cent.
Answer:
It will have 34,351 available for a down payment at the end of Year 3
Explanation:
savings:
first year: 10,000
second year 10,000 + 5% = 10,000 x 1.05 = 10,500
third years (10,000 + 5%) + 5% = 10,500 x 1.05 = 11,025
return on Invetment
The first saving will capitalize for two years at 9%
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
First year: 10,000.00
time 2.00
rate 0.09
[tex]10000 \: (1+ 0.09)^{2} = Amount[/tex]
Amount 11,881.00
The second savings will capitalize for one yeat at 9%
Second year: 10,500.00
time 1.00
rate 0.09
[tex]10500 \: (1+ 0.09)^{1} = Amount[/tex]
Amount 11,445.00
Total amount:
11,881 + 11,445 + 11,025 = 34,351
Within economics, the theory of scarcity says that there are unlimited wants and a finite amount of resources. However, history has demonstrated the power of productivity to overcome the theory of scarcity. What is the economic practice responsible for overcoming scarcity?
Answer:
According to the economists, the resources are scarce and human wants are unlimited. So, it is difficult to satisfy each and every want of people. But according to the theory of abundance, we can overcome from this problem by division and specialization of labor. If there is a proper division of labor according to their specialization then this will increase the productivity and one can produce more goods with the same level of resources.
From this economic practice, we can overcome from the problem of scarce resources.
The expression "5/10, net 45" means that the customers receive a 5% discount if they pay within 10 days; otherwise, they must pay in full within 45 days. What would the seller’s cost of capital have to be in order for the discount to be cost justified?
Answer:
Ans. The seller´s cost of capital has to be 70.73% annual in order to justify this 5% discount if bills are paid within 10 days.
Explanation:
Hi, in order for discount to be justified, the seller´s cost of capital must be equal or higher than the cost of this discount, and to find this amount, we must use the following formula.
[tex]DiscountCost=(1+\frac{Discount}{1-Discount}) ^{\frac{365}{DaysToPay-DiscountPeriod} } -1[/tex]
Where the discount is presented in its decimal form. So it should look like this.
[tex]DiscountCost=(1+\frac{0.05}{1-0.05}) ^{\frac{365}{45-10} } -1=0.7073[/tex]
That is 70.73% annual.
Best of luck.
The seller's cost of capital would have to be 4% or higher for the discount to be cost-justified.
Explanation:In order for the discount to be cost justified, the seller's cost of capital would have to be equal to or higher than the effective rate of return the firm would invest at. Let's calculate the effective rate of return using the information provided:
The customers receive a 5% discount if they pay within 10 days.Otherwise, they must pay in full within 45 days.The cost of financial capital for the firm is 9%.The firm can capture the 5% return to society.Based on this information, the effective rate of return for the firm would be 4%.
Therefore, the seller's cost of capital would have to be 4% or higher for the discount to be cost-justified.
Madison Finance has a total of $20 million earmarked for homeowner loans and auto loans, where x is homeowner loans in millions of dollars and y is auto loans in millions of dollars. On the average, homeowner loans have a 9% annual rate of return, whereas auto loans yield a 14% annual rate of return. Management has also stipulated that the total amount of homeowner loans should be greater than or equal to 4 times the total amount of automobile loans. Determine the total amount of loans of each type Madison should extend to each category to maximize its returns P in millions of dollars.
Answer:
Ans. Car loans must be $4,000,000 and Home loans $16,000,000 in order to use all the conditions in the problem. Return= $2,000,000
Explanation:
Hi, well, you need to make sure to get as many car loans as the conditions of the problem allows you, since it returns 14%.
I used MS Excel solver to find this result, please download the excel spreadsheet attached to this answer.
Best of luck.
Final answer:
To maximize returns P, determine the total amount of homeowner and auto loans Madison Finance should extend by solving an optimization problem with given constraints.
Explanation:
Madison Finance has $20 million for homeowner and auto loans. Let x be homeowner loans and y be auto loans. Homeowner loans have 9% return, auto loans have 14% return. The constraint is x >= 4y. To maximize returns P, solve the optimization problem.
Define the variables: Let x = amount in million dollars for homeowner loans, y = amount in million dollars for auto loans.
Write objective function: P = 0.09x + 0.14y (representing returns)
Write constraint: x >= 4y (homeowner loans should be >= 4 times auto loans)
Solve the optimization problem: Maximize P = 0.09x + 0.14y subject to x >= 4y and x + y = 20 (total amount constraint)
Project X has an internal rate of return of 20 percent. Project Y has an internal rate of return of 15 percent. Both projects have a positive net present value. Which of the following statements is most correct? Select one: a. Project X must have a higher net present value than Project Y. b. If the two projects have the same WACC, Project X must have a higher net present value. c. Project X must have a shorter payback than Project Y. d. Both answers b and c are correct. e. None of the above answers is correct.
Julio Company purchased a $200,000 machine that has a four-year life and no salvage value. The company uses straight-line depreciation on all asset acquisitions and is subject to a 30% tax rate. The proper cash flow to show in a discounted-cash-flow analysis as occurring at time 0 would be:
(A) $15,000.
(B) $50,000.
(C) $140,000.
(D) $35,000.
(E) $200,000.
Answer: The correct answer is "(E) $200,000.".
The proper cash flow to show in a discounted-cash-flow analysis as occurring at time 0 would be: "(E) $200,000.".
Explanation: At time 0, the course of time does not occur therefore there is no discount.
In the JK partnership, Jacob's capital is $140,000, and Katy's is $40,000. They share income in a 3:2 ratio, respectively. They decide to admit Erin to the partnership. Each of the following questions is independent of the others.
Refer to the information provided above. Jacob and Katy agree that some of the inventory is obsolete. The inventory account is decreased before Erin is admitted. Erin invests $38,000 for a one-fifth interest. What is the amount of inventory written down?
A. $10,000
B. $20,000
C. $28,000
D. $36,000
Answer:
Option C
$28,000
Explanation:
As for the information provided,
We have,
New partner to be admitted is Erin and his share will be 1/5th
For this he brings in $38,000.
Therefore, total capital will be = [tex]38,000 \times 5 = 190,000[/tex]
But actual capital after his addition = $140,000 + $40,000 + $38,000 = $218,0000
Therefore, value of inventory written off as will reduce assets, and capital also = $218,000 - $190,000 = $28,000.
This will ultimately make the contribution of Erin equivalent to his share.
On January 1, 2018, G Corporation agreed to grant all its employees two weeks paid vacation each year, with the stipulation that vacations earned each year can be taken the following year. For the year ended December 31, 2018, G's employees each earned an average of $700 per week. A total of 460 vacation weeks earned in 2018 were not taken during 2018. Wage rates for employees rose by an average of 8 percent by the time vacations actually were taken in 2019. What is the amount of G's 2019 wages expense related to 2018 vacation time?
Answer: $25,760
Explanation:
Given that,
Average earning of each employee = $700 per week
vacation weeks earned in 2018 were not taken in 2018 = 460
Wage rates for employees rose by an average of 8 percent.
Total earnings = $700 per week × 460
= $322,000
Amount of G's 2019 wages expense = Total earnings × Wage rate
= $322,000 × 8%
= $25,760
On June 1, 20x1, ABC Corp. invested $250,000 into a certificate of deposit for 9-months, earning 9% APR. Principal and interest will be received at maturity on March 1, 20x2. ABC's year end is December 31st. At year end, the appropriate adjusting journal entry was recorded to accrue interest. To record the appropriate journal entry at maturity on March 1, 20x2 for receipt of principal plus interest at maturity, ABC would:
Answer:
note payable 250,000
interest payable 13,125
interest expense 3,750
cash 266,875
to record payment of note at maturirty
Explanation:
June 20X1
250,000 at 9% annual rate
At december 31th the company accrued the interest from June 1st to December 31th
That is 7 months.
250,000 x 9% x 7/12 = 13,125 accrued interest for the year ended X1
Then, on March 1st The company accrued the remaining two months.
250,000 x 0.09 x 2/12 = 3,750
The company will record on March 1st:
The write-off of the principal
The payment of the accrued interest for the previous year
The accrued interest for the period
the cash disbursement to settle all these obligation:
note payable 250,000
interest payable 13,125
interest expense 3,750
cash 266,875
to record payment of note at maturirty
A primary market would be utilized when:
A. investors buy or sell existing securities.
B. shares of common stock are exchanged.
C. securities are initially issued.
D. a commission must be paid on the transaction.
Answer: Option C
Explanation: Primary market refers to the market in which the securities are sold to the general public for the first time by the companies. In simple words, the initial public offering process takes place in such markets. The securities could be of any type whether debt, equity or preference.
The market in which existing securities are bough and sold is called secondary market. And the commission is paid in both secondary and primary market.
Hence the correct option is C.
What must audit firms do to perform financial statement audits for public companies? a. Register with the Public Company Accounting Oversight Board. b. Register with the Institute of Internal Auditors c. Register with the American Institute of Certified Public Accountants d. Register with the U.S. General Accounting Office
Answer:
a. Register with the Public Company Accounting Oversight Board.
Explanation:
As per the standards of Auditing an auditor has to be registered as an public accounting firm, and then only it can perform audit for public companies.
For this, it has to be registered with PCAOB United States.
where, PCAOB stands for Public Company Accounting Oversight Board.
Therefore, correct option is a.
Audit firms must register with the Public Company Accounting Oversight Board (PCAOB) to perform financial statement audits for public companies. Being registered with other accounting agencies, like the Institute of Internal Auditors, the American Institute of Certified Public Accountants, or the U.S. General Accounting Office, can add credibility but is not necessary.
Explanation:For audit firms to perform financial statement audits for public companies, they must register with the Public Company Accounting Oversight Board (PCAOB). The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports. It is not mandatory to register with the Institute of Internal Auditors (IIA), the American Institute of Certified Public Accountants (AICPA), or the U.S. General Accounting Office (GAO) to conduct audits of public companies. However, membership with these bodies can add credibility and follow best auditing practices. Ultimately, the primary requirement for auditing public companies is PCAOB registration.
Learn more about Auditing Public Companies here:https://brainly.com/question/33091333
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At the very least, Joe Average and Bill Gates are both identically limited by:
A. their wealth.
B. the 24 hours that comprise a day.
C. their knowledge.
D. their influence.
Answer:
The correct answer is option 'B': The 24 hours that comprise a day
Explanation:
For comparison between 2 random variables only those values can be said to be identical that have the same values.
From the given options if we compare Joe and Bill Gates we conclude
1) The 2 person's are not identically limited by wealth as the wealth difference can be large.
2) Similarly they can have a vast difference in their knowledge.
3) Person that has larger wealth and knowledge will naturally have larger influence.
Now since the length of a day is 24 hours and this is a universal truth no matter what the circumstances we conclude that they both are limited by this parameter no matter whatever be the difference between the 2.
4. Your son has been in college and has a large balance on his credit card that was used for school supplies, books, and tuition. You want to help him out since he has done very well in school. You write a letter to the credit card company stating that you will be paying the bill in the future. The credit card company agrees. Is this a valid contract? Yes or No? If Yes, identify the offer, acceptance and consideration.
Answer: you have to go to the people in person and tell them give him a credit card now boi.
Explanation:
In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Each of the following questions is independent of the others.
Refer to the information provided above. David invests $40,000 for a one-fifth interest in the total capital of $220,000. What are the capital balances of Allen and Daniel after David is admitted into the partnership?
Allen Daniel
A) 160000 60000
B) 136000 36000
C) 140000 40000
D) 137000 39000
A. Option A
B. Option B
C. Option C
D. Option D
Answer:
D) 137000 39000
Explanation:
Allen 140,000
Daniel 40,000
Capital before admission 180,000
share ratio 3:1
Capital after admission:
180,000 + 40,000 = 220,000
David participation: 20%
220,000 x 20% = 44,000
David investment 40,000
goodwill: 4,000
There is a difference in goodwill which will be supported for the old partner as their current share ratio
Allen 4,000 x 3/4 = 3,000
Daniel 4,000 x 1/4 = 1,000
Capital after David admission:
140,000 - 3,000 = 137,000
40,000 - 1,000 = 39,000
Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $ 302,400,000, cost of goods sold of $ 148,900,000, sales and administrative costs of $ 39,200,000, depreciation expense of $ 60,300,000, and a tax rate of 40 %.
Final answer:
The operating cash flow for Harper Brothers, Inc. is $128,880,000. It is calculated by subtracting operating expenses and taxes from sales revenue and adding back the non-cash depreciation expense.
Explanation:
To calculate the operating cash flow for Harper Brothers, Inc., we will start with the sales revenue and deduct all operating expenses, excluding depreciation since it is a non-cash charge. After that, we will adjust for taxes to get the net operating cash flow.
The formula for operating cash flow is:
Operating Cash Flow = (Sales Revenue - Operating Expenses - Taxes) + DepreciationIn this case:
Sales Revenue = $302,400,000Cost of Goods Sold (COGS) = $148,900,000Sales and Administrative Costs = $39,200,000Depreciation Expense = $60,300,000First, we calculate the Earnings Before Interest and Taxes (EBIT):
EBIT = Sales Revenue - COGS - Sales and Administrative CostsEBIT = $302,400,000 - $148,900,000 - $39,200,000EBIT = $114,300,000Next, we compute the taxes:
Taxes = EBIT * Tax RateTaxes = $114,300,000 * 40%Taxes = $45,720,000Finally, we calculate the operating cash flow:
Operating Cash Flow = (EBIT - Taxes) + DepreciationOperating Cash Flow = ($114,300,000 - $45,720,000) + $60,300,000Operating Cash Flow = $68,580,000 + $60,300,000Operating Cash Flow = $128,880,000Final answer:
To calculate Harper Brothers, Inc.'s operating cash flow, subtract the cost of goods sold and sales and administrative costs from sales revenue, add back depreciation expense, calculate and subtract taxes, resulting in an operating cash flow of $165,960,000 for the year.
Explanation:
To calculate the operating cash flow (OCF) for Harper Brothers, Inc., we start with the sales revenue and subtract both the cost of goods sold (COGS) and sales and administrative costs. Then, we add back the depreciation expense, as it is a non-cash charge, and subtract taxes paid.
Here's the step-by-step calculation:
Using Harper Brothers, Inc.'s figures:
Therefore, the operating cash flow for Harper Brothers, Inc. is $165,960,000 for the year.