The comparative balance sheet calculates each asset category as a percentage of total assets, and every liability and stockholders' equity item as a percentage of total liabilities and stockholders' equity for two fiscal years. This helps in identifying shifts in a company's financial structure.
Explanation:The question pertains to preparing a comparative balance sheet for Alvarez Company for two consecutive fiscal years, indicating each asset as a percentage of total assets and every liability and stockholders' equity item as a percentage of the total liabilities and stockholders' equity. First, we calculate the total assets, total liabilities, and total stockholders' equity for each year. For the current year, total assets are $10,000,000 ($2,500,000 current assets + $5,600,000 property, plant, and equipment + $1,900,000 intangible assets). Accordingly, each asset category's percentage of total assets can be calculated. Repeat this procedure for total liabilities and stockholders' equity. The same calculations should be repeated for the previous year's amounts. This helps in understanding changes in the company's financial structure over time.
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Assume that the number of hosts connected to the Internet at year 2010 is five hundred million. If the number of hosts increases only 20 percent per year, what is the number of hosts in year 2020?
Answer:
3096 million is the number of hosts in year 2020.
Explanation:
The number of hosts connected to the Internet at year 2010 ,P= 500 million
If the number of hosts increases only 20 percent per year.
Rate at which host increasing per year = 20% =0.20
Number of times host increased per time period(here in per year) = n = 1
The number of hosts connected to the Internet at year 2020 = P'
Duration of time = 2020 year - 2010 year = 10 years
[tex]P'=P(1+\frac{R}{n})^{nT}[/tex]
[tex]P'=500 million(1+\frac{0.20}{1})^{1\times 10}[/tex]
P' = 3095.87 million ≈ 3096 million
3096 million is the number of hosts in year 2020.
Based on the number of hosts in 2010, and the growth rate, the number of hosts in 2020 will be 3,096 million.
The number of hosts in 2020 is:
= Number of hosts in 2010 x ( 1 + growth rate) ^ number of years
Number of years:
= 2020 - 2010
= 10 years
Solving would give:
= 500 x (1 + 20%)¹⁰
= 3,096 million
In conclusion, the number of hosts in 2020 will be 3,096 million.
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Empirical studies of returns earned by mutual funds suggest they consistently outperform the market.True or False?
Answer:
False
Explanation:
Studies of mutual fund performance indicate that mutual funds that outperformed the market in one time period usually do not beat the market in the next time period.
Three partners share a business. Max owns 3/8 , Sherry owns 2/5 , and Duane owns the rest. If the profits this year are $450,000, how much does each partner receive (in $)?
Answer:
Max $ 168,750, Sherry $ 180,000 Duane $ 101,250
Explanation:
The total profit is considered as 100 %
Max share is 3/8 or expressed as a %: 3/8*100 = 37.5 %
Sherry share is 2/5 or expressed as a % 2/5*100 = 40 %
Duane share is 100 % - 37.5 % (Max share) - 40 % (Sherry share) = 22.5 %
The allocation fo profits of % 450,000 is distributed as follows:
Max $ 450,000 * 37.5 % = $ 168,750
Sherry $ 450,000 * 40 % = $ 180,000
Duane $ 450,000 * 22.5 % = $ 101,250
Final answer:
Max, Sherry, and Duane receive $168,750, $180,000, and $101,250 respectively from the $450,000 profit, based on their ownership shares of 3/8, 2/5, and the remaining fraction.
Explanation:
To determine how much each partner receives from the $450,000 profit, we need to calculate each partner's share based on the ownership percentages provided.
Max owns 3/8 of the business, so Max's share is 3/8 of $450,000.Sherry owns 2/5 of the business, so Sherry's share is 2/5 of $450,000.To find Duane's share, we first need to calculate the total ownership accounted for by Max and Sherry and subtract that from 1 (or 100%).
Calculations:
Max's share: (3/8) * $450,000 = $168,750Sherry's share: (2/5) * $450,000 = $180,000Total shared by Max and Sherry: (3/8) + (2/5) = 15/40 + 16/40 = 31/40Ownership left for Duane: 1 - 31/40 = 9/40Duane's share: (9/40) * $450,000 = $101,250To summarize, Max receives $168,750, Sherry receives $180,000, and Duane receives $101,250 from the profits.
What process guides your entry and closing points? 1. Reducing the randomness of your approach 2. Pragmatic 3. Facilitate adaptability and iteration 4. Protect experimentation
Answer:
1. Reducing the randomness of your approach
Explanation:
Reducing the randomness of your approach guides your entry and closing points
Unlike investors in Japan, many investors in the United States are willing to take the risk of a stock market investment. Which cultural dimension does this reflect?
A) Uncertainty Avoidance Index
B) Indulgence Index
C) Individualism/Collectivism Index
D) Masculinity/Femininity Index
E) Power Distance Index
Answer:
A) Uncertainty Avoidance Index
Explanation:
The Uncertainty Avoidance Index measures how members of different societies react to taking risks. While some, like US investors, are more willing to take risks, other, like Japanese investors, tend to be more careful.
So the correct answer is:
A) Uncertainty Avoidance Index
The willingness of U.S. investors to risk stock market investments reflects the Uncertainty Avoidance Index. This cultural dimension, identified by Geert Hofstede, measures a society's comfort level with uncertainty and ambiguity. A low UAI score, typical of the U.S., shows a higher tolerance for risk and ambiguity, leading to larger engagement in risky investments like the stock market.
Explanation:The willingness of investors in the United States to take the risk of a stock market investment compared to those in Japan reflects the Uncertainty Avoidance Index (UAI). This is one of the cultural dimensions identified by Geert Hofstede, a renowned Dutch social psychologist. The UAI measures the extent to which people in a society are uncomfortable with uncertainty and ambiguity, leading them to avoid such situations.
In cultures with a high UAI score, such as Japan, there is a tendency for people to have a lower risk tolerance, leading to a preference for more secure investments. On the other hand, a low UAI score, like that seen in the United States, indicates a higher tolerance for risk and ambiguity, and this is often reflected in their willingness to take on the potential rewards and risks of stock market investments.
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What is the present value of a growing perpetuity that makes a payment of $100 in the first year, which thereafter grows at 3% per year
Answer:
present value = $2500
Explanation:
given data
Dividend D = $100
grows g = 3% per year
solution
we consider here discount rate that is ke = 7%
so now we apply here present value formula that is
present value = [tex]\frac{D}{ke-g}[/tex] ..............................1
put here value and we will get
present value = [tex]\frac{100}{0.07-0.03}[/tex]
solve it and we will get
present value = $2500
The May transactions of Hanschu Corporation were as follows.May 4 Paid $700 due for supplies previously purchased on account.May 7 Performed advisory services on account for $6,800.May 8 Purchased supplies for $850 on account.May 9 Purchased equipment for $1,000 in cash.May 17 Paid employees $530 in cash.May 22 Received bill for equipment repairs of $900.May 29 Paid $1,200 for 12 months of insurance policy. Coverage begins June 1.Journalize the transactions.
Answer:
The Journal entries are as follows:
(i) On May 4,
Accounts payable A/c Dr. $700
To cash $700
(To record the supplies)
(ii) On May 7,
Accounts receivable A/c Dr. $6,800
To service revenue $6,800
(To record the service revenue)
(iii) On May 8,
Supplies A/c Dr. $850
To accounts payable $850
(To record the purchase of supplies on account)
(iv) On May 9,
Equipment A/c Dr. $1,000
To cash $1,000
(To record the equipment purchased)
(v) On May 17,
Salary expense A/c Dr. $530
To cash $530
(To record the salary expense)
(vi) On May 22,
Repair expense A/c Dr. $900
To accounts payable $900
(To record the repair expense)
(vii) On May 29,
Prepaid Insurance A/c Dr. $1,200
To cash $1,200
(To record the prepaid insurance)
In the short run, a firm in monopolistic competition ______. A. incurs an economic loss B. breaks even C. makes its output and price decision just like a monopoly firm does D. always makes an economic profit
Answer:
D. always makes an economic profit
Explanation:
A monopolistically competitive markets consists of firms that sell differentiated products. In the market, there are free entry and free exist, but each firm enjoys a kind of monopoly its products which are the same to other products in the market but are different as a result of branding.
In the short run, the monopoly enjoys on the differentiated product enables the monopolistically competitive firm to make an economic profit. But due to free entry and exist in the market, the firm economic profit will be zero while it only make normal profit.
Concord, Inc. has collected the following data for November (there are no beginning inventories): Units produced and sold 500 units Sales price $450 per unit Direct materials 64 per unit Direct labor 68 per unit Variable manufacturing overhead 26 per unit Fixed manufacturing overhead 7,500 per month Variable selling and administrative costs 15 per unit Fixed selling and administrative costs 4,400 per month E21A-47 Computing absorption costing operating income Refer to the information for Concord, Inc.
Requirements
1. Using absorption costing, calculate the unit product cost.
2. Prepare an income statement using the traditional format. Miller-Nobles, Tracie. Horngren's Accounting (p. 1183). Pearson Education. Kindle Edition.
Final answer:
The unit product cost under absorption costing for Concord, Inc. is $173. The income statement using the traditional format shows an operating income of $126,600 for the month of November.
Explanation:
To calculate the unit product cost using absorption costing, we need to add together the direct materials, direct labor, variable manufacturing overhead, and a portion of the fixed manufacturing overhead costs allocated per unit. Given the data:
Direct materials: $64 per unitDirect labor: $68 per unitVariable manufacturing overhead: $26 per unitTotal fixed manufacturing overhead: $7,500 per monthTo find the fixed manufacturing overhead cost per unit, divide the total fixed costs by the number of units produced:
Fixed manufacturing overhead per unit = $7,500 / 500 units = $15 per unit
Now, add all the costs per unit to find the unit product cost:
Unit product cost = Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead per unit = $64 + $68 + $26 + $15 = $173 per unit.
Next, for the traditional format income statement:
Total Sales (500 units × $450) = $225,000Cost of Goods Sold (500 units × $173) = $86,500Gross Margin = Total Sales - Cost of Goods Sold = $225,000 - $86,500 = $138,500Total Variable Selling and Admin Costs (500 units × $15) = $7,500Total Fixed Selling and Admin Costs = $4,400Total Selling and Admin Costs = Total Variable + Total Fixed = $7,500 + $4,400 = $11,900Operating Income = Gross Margin - Total Selling and Admin Costs = $138,500 - $11,900 = $126,600In an economic decision making, when the inputs and outputs are fixed, the criterion to use is minimize the input.
True or False?
Answer:
Correct answer is False for economic decision making, when the inputs and outputs are fixed, the criterion to use is minimize the input
Since, both input and output are fixed, the input can’t be decreased. Each of them has to be fixed in directive to vary the association among them. (It can be fixed contribution, or fixed production or neither one of them is fixed)
Answer:
False
Explanation:
Decision making in psychology is considered as a cognitive process that results in the selection of an idea or movement from another possible option. Whether or not every decision-making process results in a move, it is definitely a final choice. To define it, decision making is determining the alternatives according to the preferences and values of the decision maker and choosing among them.
Choosing the appropriate criterion (or criterion) for choosing the appropriate alternative is an important step in making a decision.
- If a problem involves constant input among possible alternatives, the appropriate general criterion is to maximize the result. For example, a company is considering buying a new office copy machine. If the two competing alternatives have the same value (fixed input), you can select a photographer with a higher output of the corresponding criteria. The criterion may be as simple as the speed of the machine (pages per minute) or a more sophisticated criterion that incorporates the speed of the machine with the presence of some complex features.
- İf a involves fixed output problem then the criteria is to minimize access to appropriately . For example, a company might consider installing a new elevator. Two alternate alternate load capacity, working speed and so on. If you have the same efficiency as measured, there will be a lower price (minimum entry) elevator installation.
- If no inputs or outputs are identified fixed between the alternatives, the appropriate criterion is to increase the gain (output) or simply increase the profit. For example, one of the two competing production machines, and if the cost and output rates of the machines are different, the appropriate criterion is to choose a machine with higher profitability (machine-building benefits - costs).
A firm reports the following income statement items for FY2019: sales of $60,550,000; income tax of $1,744,000; operating expenses of $10,115,000; cost of goods sold of $34,025,000; and interest expense of $750,000. The firm also paid $947,250 in dividends in FY2019. What is the amount of the firms EBIT?
Answer:
$16,410,000
Explanation:
The computation of the EBIT is shown below:
= Sales - cost of goods sold - operating expenses
= $60,550,000 - $34,025,000 - $10,115,000
= $16,410,000
For calculating the Earning before interest and taxes, we deducted the cost of goods sold and the operating expense from the sales so that the accurate amount can come
Determine the interest payment for the following three bonds: 5.5 percent coupon corporate bond (paid semi-annually), 6.45 percent coupon Treasury note, and a corporate zero coupon bond maturing in 10 years. (Assume a $1,000 par value.)
Answer:
Interest payment = Interest rate per period × par value
5.5 percent coupon corporate bond (paid semi-annually)
Interest payment = 1/2 × 0.055 × 1000 = $27.5
6.45 percent coupon Treasury note (Treasury makes semi-annual coupons)
Interest payment = 1/2 × 0.0645 × 1000 = $32.25
Zero coupon bond:
Interest = 0 × 1000 = $0
Based on the information given the interest payment are: $110, $65, $0.
a. Interest payment for 5.5%
Interest payment=(Semi annual percentage×2)× Face value
Interest payment=(5.5%×2)×1,000
Interest payment=$110
b. Interest payment for 6.45%
Interest payment=Annual percentage × Face value
Interest payment=6.45%×1,000
Interest payment=$64.5
Interest payment=$65 (Approximately)
c. The Interest payment for zero coupon bond maturing in 10 years will be zero reason being that bonds are issued at discount and they mature at face value.
Inconclusion the interest payment are: $110, $65, $0.
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Production occurs at service organizations just as it does at manufacturing organizations. What is the final product called at a hospital?
Health care
Doctor orders
Doctor appointments
Doctor scheduling
Health plans
Answer:
The correct answer is letter "A": Health care.
Explanation:
The final product is the good or service that is provided to end-consumers after a series of steps the company takes to bring the product to the market. It represents the ultimate reason why consumers attend to a business and why they are willing to acquire a product for.
In the case of hospitals, people go to these medical centers to receive health care regardless of the type of assistance they need.
Consider the sophistication and technology of the 21st century. Examine how the medieval account of human nature aligns with your own experience of human action. That is, do you observe (in yourself and others) an inclination toward evil instead of toward good? Explain and analyze your observations. Bring in examples of scenarios that bolster your view or that tend to bring your view (or others) into question.
Answer:
Ruggiero explained that primitive ethics collective the traditional emphasis on human aim with the idea of compliance to God's will. Until Aquinas revived Aristotle, Augustine’s Platonic structure was used through the primitive period. (Ruggiero, 2011) The present period of ethics, more precisely the 17th and 18th comprised the illumination and the “age of reason. (Benn, 1997) One of the alterations among primitive and modern period was the participation of religion. In the modern period the effort on religion intemperate.
NAFTA eventually eliminates all tariffs on goods produced and traded between the United States, Mexico, and Brazil. True False
Answer:
The statement is: False.
Explanation:
The North American Free Trade Agreement (NAFTA) is a treaty signed by Canada, Mexico, and the United States to create a free-trade area between those regions. Besides eliminating tariffs on imports and exports between the three countries, thanks to the NAFTA procedures to resolve trade disputes can be established. Also, according to the NAFTA, the three countries must respect the patents trademarks and copyrights of each of them.
Brazil does not belong to this bloc.
Mustard's Inc. sold the rights to use one of its patented processes that will result in cash receipts of $3,100 at the end of each of the next five years and a lump sum receipt of $4,600 at the end of the fourth year. The total present value of these payments if interest is at 9% is:
Answer:
$15,316.69
Explanation:
Data provided in the question:
Interest rate = 9% = 0.09
Amount at the end of each year = $3,100
Lump sum receipt at the end of the fourth year = $4,600
Now,
Present Value = [ $3,100 × PVA(9%, 5 Years) ] + [ $4,600 × PV(9%,4 Year) ]
also,
PVA = [ 1 - ( 1 + r)⁻ⁿ] ÷ r
thus,
PVA(9%, 5 Years) = [ 1 - ( 1 + 0.09)⁻⁵] ÷ 0.09
= 3.88965
PV = ( 1 + r )⁻ⁿ
thus,
PV(9%,4 Year) = ( 1 + 0.09 )⁻⁴
= 70843
Therefore,
Present Value = $3,100 × 3.88965 + $4,600 × 0.70843
= $12,057.915 + $3258.778
= $15,316.69
Mustang Corporation reports the following for the month of April: Finished goods inventory, April 1 $ 33,400 Finished goods inventory, April 30 27,300 Total cost of goods manufactured 127,000 The cost of goods sold for April is:
Answer:
$133,100
Explanation:
Given that,
Finished goods inventory, April 1 = $33,400
Finished goods inventory, April 30 = $27,300
Total cost of goods manufactured = $127,000
Cost of goods sold:
= Cost of goods manufactured + Beginning Finished goods inventory - Ending Finished goods inventory
= $127,000 + $33,400 - $27,300
= $133,100
Therefore, the cost of goods sold for April is $133,100.
The cost of goods sold (COGS) for April is $133,100, calculated by taking the opening finished goods inventory plus the total cost of goods manufactured and subtracting the closing finished goods inventory.
The cost of goods sold for April is calculated by adjusting the total cost of goods manufactured with the change in the finished goods inventory levels. The formula to calculate this is: Cost of Goods Sold (COGS) = Opening Finished Goods + Total Cost of Goods Manufactured - Closing Finished Goods. Using the provided figures:
Opening Finished Goods: $33,400
Total Cost of Goods Manufactured: $127,000
Closing Finished Goods: $27,300
Therefore, the COGS for April would be:
$33,400 + $127,000 - $27,300 = $133,100.
Your industrial supply company wants to create a data warehouse where management can obtain a single corporate-wide view of critical sales information to identify bestselling products, key customers, and sales trends. Your sales and product information are stored in several different systems: a divisional sales system running on a Unix server and a corporate sales system running on an IBM mainframe. You would like to create a single standard format that consolidates these data from both systems. In MyMISLab, you can review the proposed format, along with sample files from the two systems that would supply the data for the data warehouse. Then answer the following questions:
• What business problems are created by not having these data in a single standard format?
• How easy would it be to create a database with a single standard format that could store the data from both systems? Identify the problems that would have to be addressed.
• Should the problems be solved by database specialists or general business managers? Explain.
• Who should have the authority to finalize a single company-wide format for this information in the data warehouse?
Answer:
Industrial supply company scenario:
The company wants to create a data warehouse where management can obtain a single corporate-wide view of critical sales information to identify best-selling products in specific geographic areas, key customers, and sales trends. The sales and product information are stored in both a divisional sales system running on a Unix server and a corporate sales system running on an IBM mainframe. The desire is to create a single standard format that consolidates these data from both systems.
Business problems:
A business problem that can arise from not having these data in a single standard format is that employees will see the data as inconsistent. It is difficult to make business decisions if the data is unreliable, inaccurate, or redundant. The product descriptions are formatted differently so managers and employees might get confused when it is entered into the system. Also, the system identifies the sales by territory in the United States so it would be impossible to identify the sales or even around the world. The corporate sales system also lacks a way to identify the identification of the customer. Both sales system should be consistent with the information in order to prevent redundancies or inaccuracies.
How easy it would be to create a database with a single standard format:
Creating a database with a single standard format would ideally be easy. Data quality audits and data cleansing should be performed when constructing the new database. Data quality audits and data cleansing would correct any redundancies and inaccuracies in the current systems. By using data-cleansing software, the company can combine and integrate the data from all the systems into a single standard format that is uniform throughout the whole company.
Problems that should be addressed:
A problem that should be addressed is the product description and sales territory tags. These tags have different formats which could lead to inconsistencies in the data. The names would have to be changed so that they are the same format and are only entered once in the new single standard format database. Another problem that would have to be addressed is keeping both the division and customer id tags in the new database. This would provide more information for each entry and would limit any confusion among the employees.
Database specialists:
Database specialists will help solve the problems by performing the data quality audits and data cleansing. They will also help in establishing an information policy and developing the new database. They are also responsible for the specific policies and procedures through which data can be managed as an organizational resource. This involves overseeing logical database design and data dictionary development, planning for data, and monitoring how information systems specialists and end-user groups use data.
General business managers:
General business managers would have the final say when managing data resources. They would be responsible for defining and organizing the structure and content of the database and maintaining the database.
Who should have the authority?
The general business managers should have the authority because they are responsible for the data. This would mean that even though they allow database specialists to establish an information policy and develop the new database, the managers are the ones who have to approve the final product in order for it to be implemented company-wide. The managers are the ones whose reputations are on the line when a company succeeds or fails, so they should have the final authority.The business problems that are created by not having these data in a single standard format include difficulty in making business decisions.
How easy would it be to create a database?The creation of a database with a single standard format that could store the data from both systems is important data quality audits and data cleansing should be performed when constructing the new database.
The problem can be solved by database specialists by performing data quality audits and data cleansing and establishing an information policy to meet the requirements and achieve organizational goals.
The person that will have the authority to finalize a single company-wide format for this information in the data warehouse is the general business manager.
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What is the value today of $4,100 per year, at a discount rate of 9 percent, if the first payment is received 5 years from today and the last payment is received 15 years from today? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Answer:
$19, 765.27
Explanation:
An annuity is series of equal annual payments or receipts made for a certain number of years.
A delayed annuity is that which the first cash flow occurs at a time later than year one.
A standard annuity is that which the first cash flow occurs a year from now.
An advanced annuity is that which first cash flow occurs immediately or now.
$,4100 per where the first payment occurs in year 5 and end 15 years from today is an example of a delayed annuity. It has 11 cash flows in all.
To compute value today( present value) of delayed annuity, we do
Step 1: Discount the 11-year annuity; this will give the present value in year 4 using the present value of annuity formula;
Present Value = A ×( 1 - (1+r)^(-n))/r
= 4,100 × ( 1 - (1+0.09)^(-11))/0.09
= 4,100 × 6.8052
= 27,901.28
Present Value (in year 4 value) = $27,901.28
Step 2.: Discount $27, 901.28 in year back to year 0 using the formula:
Present Value = Future Value × (1 + r)^(-n)
Present Value = $27,901.28 × (1+0.09)^(-4)
= $27,901.28 × 0.7084
= $19, 765.27
The value today of $4,100 per year, at a discount rate of 9 percent, is $33,472.97.
Explanation:To calculate the value today of $4,100 per year at a discount rate of 9 percent, we need to use the present value formula. Since the first payment is received 5 years from today and the last payment is received 15 years from today, we will use the annuity formula. The annuity formula is:
PV = C*((1 - (1+r)^(-n))/r)
Where PV is the present value, C is the annual payment, r is the discount rate, and n is the number of years. Plugging in the values:
PV = 4100*((1 - (1+0.09)^(-11))/0.09) = $33,472.97
Therefore, the value today of $4,100 per year, at a discount rate of 9 percent, is $33,472.97.
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list all the working capital accounts. (Select the best response.) A. The working capital accounts are the current assets and fixed assets of the company. B. The working capital accounts are the current assets and total liabilities of the company. C. The working capital accounts are the current assets and long-term liabilities of the company. D. The working capital accounts are the current assets and current liabilities of the company.
Answer:
D. The working capital accounts are the current assets and current liabilities of the company.
Explanation:
Working Capital represents the capital which is required for the day to day operations of a firm. Mathematically, the working capital is -
Current Assets - Current Liabilities
Working capital requirement of a business depends upon its size, seasonality of business,nature of the business that is whether its trading or manufacturing firm and day to day expenses amount of a business etc.
Hence, the working capital accounts are the current assets and current liabilities of the company.
The working capital accounts consist of a company's current assets and current liabilities, which are the parts of the balance sheet reflecting the company's ability to meet its short-term financial obligations.
Explanation:The correct response to the question regarding working capital accounts is Option D: The working capital accounts are the current assets and current liabilities of the company. This definition is essential in understanding financial statements, as reflected within a company's balance sheet. Current assets may include cash, inventory, and accounts receivable, which are resources likely to be converted into cash within one fiscal year. Similarly, current liabilities comprise financial obligations a company is due to pay within the same period, such as accounts payable, wages, and taxes owed.
To further clarify, fixed assets are not considered part of working capital as they are long-term assets and do not convert to cash within the ordinary course of business annually. Long-term liabilities, similarly, are obligations due beyond the one-year timeframe and are not included in working capital calculations either. Therefore, the focus for working capital accounts is strictly on items that will be liquidated or settled in the short term, which is critical for assessing a company's short-term financial health and liquidity.
Punch Corporation acquired 80% ownership of Jud Corporation in 2017, at underlying book value. On that date, the fair value of noncontrolling interest was equal to 20% of the book value of Judy. Punch purchased inventory from Judy for $75,000 on August 15, 2018, and resold 80% of the inventory to unaffiliated companies on December 2, 2018, for $100,000. Judy produced the inventory sold to Punch for $50,000. The companies had no other transactions during 2018. Based on the information given above, what amount of consolidated net income will be assigned to the controlling interest for 2018?
Answer:
The amount of consolidated net income that will be assigned to the controlling interest for 2018 is $ 48,000.
Explanation:
In order to calculate consolidated net income profit and loss on intra group transactions are eliminated or not taken into account. So in order to calculate profit cost incurred by group is taken as cost of good sold and sales that is made to third party will be taken as revenue. Detail calculations are given below.
Revenue $ 100,000
COGS ($ 40,000) (50,000 *80%)
Profit $ 60,000-A
Consolidated net income controlling interest = A * 80% = $ 48,000
For Leo to be an eligible individual and qualify for an HSA, which of the following must be true?
a He cannot be claimed as a dependent on someone else’s return
b He must have an HDHP and cannot be enrolled in Medicare
c He cannot have any other health coverage
d All of the above
Answer:
To qualify for an HSA, Option D: All of the above
Explanation:
HSA stands for Health Savings Account. It is a tax-advantaged account. To be eligible and qualify for HSA following requirements must be met:
1. Individual must be covered under "High-deductible health plans" (HDHPs).
2. He should not have any other 'health coverage' except what is permissible by IRS.
3. He cannot claim himself as a dependent on the tax return of someone else.
4. Person should not be enrolled in Medicare, TRICARE etc.
Thus, Option D, which mentions that all the above statements A, B and C are correct would be the answer.
On January 1, 2017, Eagle borrows $17,000 cash by signing a four-year, 6% installment note. The note requires four equal payments of $4,906, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. (Round your intermediate calculations and final answers to the nearest dollar amount.)
Answer:
The question is:
Prepare the journal entries for Eagle to record the loan on January 1 2017 and the four repayments from 31st December 2017 through 31st December 2020?
The answer is:
1 January 2017
Dr Cash 17,000
Cr Note Payable 17,000
31 December 2017
Dr Interest expenses 1,020
Dr Note Payable 3,886
Cr Cash 4,906
(to record note principal and interest expenses payment)
31 December 2018
Dr Interest expenses 787
Dr Note Payable 4,119
Cr Cash 4,906
(to record note principal and interest expenses payment)
31 December 2019
Dr Interest expenses 540
Dr Note Payable 4,366
Cr Cash 4,906
(to record note principal and interest expenses payment)
31 December 2020
Dr Interest expenses 277
Dr Note Payable 4,629
Cr Cash 4,906
(to record note principal and interest expenses payment)
Explanation:
Working note for the repayment transaction:
- For all the four journal entries regarding the repayment, the Cash account is debited at $4,906 because the note requires four equal payments of $4,906.
The calculations of Principal repayment ( which is recorded as Dr Note Payable and Interest expenses which is recorded as Dr Interest Expense) for each year are as below:
31 December 2017:
Interest Expenses = Outstanding Note Payable * 6% = 17,000 * 6% = $1,020;
Principal repayment = 4,906 - Interest Expenses = 4,906 - 1,020 = $3,886.
31 December 2018:
Interest Expenses = Outstanding Note Payable * 6% = (17,000-3,886) * 6% = $787;
Principal repayment = 4,906 - Interest Expenses = 4,906 - 787 = $4,119.
31 December 2019:
Interest Expenses = Outstanding Note Payable * 6% = (17,000-3,886-4,119) * 6% = $540;
Principal repayment = 4,906 - Interest Expenses = 4,906 - 540 = $4,366.
31 December 2020:
Interest Expenses = Outstanding Note Payable * 6% = (17,000-3,886-4,119-4,366) * 6% = $277;
Principal repayment = 4,906 - Interest Expenses = 4,906 - 277= $4,629.
The question discusses a financial scenario where a company borrows money and repays it in equal yearly installments. These payments feature both principal and accrued interest. Over time, as the principal gets paid off, the amount of accrued interest decreases.
Explanation:On January 1, 2017, Eagle borrowed $17,000 cash by signing a four-year, 6% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 of each year starting from 2017 through 2020. This question pertains to the concept of installment notes, accrued interest, and loan principal repayment.
In this case, the borrower (Eagle) received $17,000 at the present moment, which is identical to the present value of what will be repaid to the lender over the period of four years. The equal payments of $4,906 include both the principal amount being repaid and the accrued interest on the note.
These annual payments shift money from the borrower's future (when they have presumably put the borrowed funds to profitable use) to the present, essentially paying back the lender for the use of their funds. Each payment reduces the loan balance, meaning that the part of each payment that covers the interest accrued on the note becomes less and less as the principal is gradually paid off.
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Finance in an organization Aa Aa Corporate finance is concerned with the different aspects of a business's financial management. The chief financial officer (CFO) is the top financial position in the organization and oversees several tasks. The CFO is not responsible for which of the following departments? Check all that apply. Human resources Marketing Production Security analyst relations Accounting
Answer:
The Security Analyst Relations and the Accounting Department
Explanation:
The Chief Financial Officer or the CFO of an organisation is primarily responsible for the management of an organisation's financial matter, actions and decisions. The CFO is first and foremost an executive of any organisation and he determines the cash inflows and outflows from the organisation.
Furthermore, the CFO is responsible for the analysis of the strength and weakness of an organisation financially and also ensuring that controls are put in place to maintain the strengths and correct the weaknesses.
The accounting department is the primary department in charge of organisational finances, hence, it will be under the direct control of the CFO. The Accounting department ensures the prompt preparation and presentation of the company's financial statement. Furthermore, security analyst relations (in terms of financial securities and even physical security of assets and property) will also fall under the CFO's area of control.
Human Resource deals with human relations, marketing and production works together to ensure patronage of an organisation's products. These are not directly influenced by the CFO.
List the four factors of corporate communication planning and execution. Define each one and give an example of each
Answer:
1. Defining the basic purpose of the communication system.
2. Defining the Who/When/Why of the system.
3. Defining the how, the process by which the intended system will operate.
4. Defining the aptitude of the people involved in the system.
Explanation:
1. Defining why the system is required, how will it make the current system better by making it more efficient, user friendly, or in line with the overall company objectives. An example could be of focusing on disclosure as a basic principle around which the new system is built.
2. Defining the connecting points in the system. In what way is information intended to travel, who the recipients are, why certain communication lines are more important than others. An example could be of meeting minutes being sent out to all participants as well as absentees of the meeting and defining why this is important.
3. The protocols and SOPs of the system, such as the channels and methods intended to be deployed. An example is email, or vlogs.
4. The right set of skills required to be present in all participating individuals. Examples include having the ability to give attention to detail when forwarding information, punctuality so information is sent out in time, and responsibility so information is sent out to the intended recipient.
Answer:
The four phases of strategic management are formulation, implementation, evaluation and modification.
Formulating a Plan. Formulation is the process of choosing the most profitable course of action for success.
Implementation of Strategies.
Evaluating the Strategy's Results.
Modification and Amplification.
Explanation:
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Small Business»Managing Employees»Managers»
Four Phases of Strategic Management
by Marcia Moore, MSSW; Reviewed by Michelle Seidel, B.Sc., LL.B., MBA; Updated January 25, 2019
Four Phases of Strategic Management
Many companies have mission statements that explain why they are in business, what their products are and the consumer market they target. Strategic management is an ongoing process organizations apply to analyze internal processes and resources that deliver these products. There are four main phases that must be applied with each strategy, and decision-makers must understand the purpose of each phase.
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The four phases of strategic management are formulation, implementation, evaluation and modification.
Formulating a Plan
Formulation is the process of choosing the most profitable course of action for success. This is the phase for setting objectives and identifying the ways and means of achieving them. An analysis of corporate strengths, weaknesses, opportunities and threats reveals critical areas surrounding the products and services that need attention.
Take, for example, a company's objective to expand sales into the internet market. If research shows that competitors in that market are not seeing a return on their investment, company decision-makers may explore other alternatives. By contrast, if competitors are seeing increased sales, the business may decide to launch its online store and start a social media marketing campaign to drive traffic to the website.
Implementation of Strategies
Implementation is the execution of the necessary strategies to meet the objectives that have been set. To ensure success, all employees should understand their roles and responsibilities. Appropriate activity measures provide necessary feedback with facts that identify positive impacts and areas for change.
In this phase, companies pay attention to details and monitor processes to implement quick changes as required. For example, if a common customer complaint is that products take too long to arrive, an analysis of the shipping process may reveal ways to expedite delivery, such as using pre-printed shipping levels to streamline packaging and carrier pickup of shipments at the store.
Evaluating the Strategy's Results
Evaluating strategies used in the implementation phase serve as performance feedback. Some companies use a gap analysis to compare how the company performed to set goals. Analyzing present state compared to desired future state identifies the need for new products or additions to existing products. One example is a company comparing its anticipated consumer purchase response with the actual number of sales or comparing old shipping times to the delivery timeframe after new procedures were implemented.
Modification and Amplification
The modification phase is essential in correcting any weaknesses or failures found during evaluation. Strengths identified can lead to implementation in other areas. One example is a strategy to sell a selected number of products on the internet and sales data shows a significant profit. A decision to add more products and refine the process can result in a new lucrative endeavor. An amplified marketing plan including search engine ads may also be examined in an effort to draw additional customers to the website
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
Answer:
The answer for the following question is given below:
Explanation:
Nominal GDP is the price, inflation-unadjusted for, goods and services produced in a country. Real GDP is a nominal GDP, calculated to reflect changes in aggregate demand for inflation.Real GDP is a more accurate indicator of the output of a country than nominal GDP since real GDP calculates the value of the product and services generated by an economy while nominal GDP calculates the price of the product and services consumed by an economy.
Real GDP is a more accurate measure of an economy's production than nominal GDP because it adjusts for inflation, allowing us to understand whether increases in GDP are due to actual growth in quantity produced or just rising prices.
When examining economic statistics, there is a crucial distinction between nominal and real measurements.
Nominal GDP measures the total value of all production using current prices at the time the measurement is taken. However, this can be misleading because it doesn't account for changes in price levels due to inflation.In contrast, real GDP adjusts for inflation and provides a more accurate depiction of an economy's actual production. By adjusting nominal GDP for price changes, we get real GDP, which helps us understand whether GDP is growing because of increased production or merely due to rising prices.For example, if the nominal GDP of a country increased from $1 trillion to $1.5 trillion over a year but inflation was 50%, the real GDP would show that there was no actual increase in production value.This makes real GDP a more reliable indicator of economic performance.
Both normal and special cause variation add to project cost and need to be considered by project managers
True or false?
Answer:
True
Explanation:
Variations in both common and special circumstances contribute to project costs and need to be weighed by project managers when they want to work more often.
Variability, is the degree to which data deviate differ from the estimated value in a probability distribution or data set, and the extent to which those data points differ from one another. This is most commonly attributed in financial terms to the volatility of the returns on investment.therefore the answer is true for the following.
Suppose at your university you are asked to find the relationship between weekly hours spent studying (study) and weekly hours spent working (work). Does it make sense to characterize the problem as inferring whether study ""causes"" work or work ""causes"" study? Explain.
Answer:
Explanation:
Usually students have fixed number of hours a week to choose between studying and working. So, it is incorrect to say that study causes work or work causes study.
Students rationally choose total hours as a mix of studying and working. It mainly depends on rationale and preferences of a student.
Study and work hours show a correlation, not causation. Causality implies that one variable directly alters the other, which may be difficult to prove in this scenario. However, a study of the relationship between these variables could reveal interesting trends or patterns.
Explanation:The relationship between weekly hours spent studying (study) and weekly hours spent working (work) does not necessarily imply causality. Rather, it reflects a correlation - a mutual connection that might be influenced by various factors. Whether study 'causes' work or vice versa cannot be definitively inferred from mere correlation data.
To infer causality, there should be compelling evidence to assert that the increment in one variable leads directly to the increment or decrement of the other variable. Furthermore, you would have to control for all other potential causes or influencing factors, which is often unfeasible in real-life social scenarios.
However, it is indeed useful to study the relation between time spent on work and study. You might discover patterns or trends, such as students working more hours work less, or vice versa. But remember that these are correlational findings, not causal ones.
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Does agile development work for every project? In your opinion, why might agile development not be suitable for companies all the time? What are some notable reasons why agile would not be the most effective or efficient methodology?
Answer
1. Agile can not be used on every project.
Agile methodology involves the use of an adaptive life cycle on a project instead of a predictive life cycle.
When it’s not possible to predict the product, an adaptive life cycle can be used; hence the need for agile methodology arises.
But, that's not always true because projects need to be delivered incrementally and developed iteratively.
Project being delivered incrementally means that some projects requires that its usable” subsets be done, step by step, instead of delivering once at the end of the project in agile.
2. Notable reasons for not always using Agile
1. Reliance on legacy methods
2. Lack of clarity
3. Inadequate Experience with agile
4. Lack of alignment in other areas of the enterprise
5. Lack of a Testing Strategy
6. Lack of collaboration in teams composed by different companies
3. Why agile would not be the most effective and efficient methodologies
1. It is too flexible
2. Lack of predictability
3. Difficult to Integrate Diverse Skill Sets Into Teams
Answer:
ok
Explanation:
Which assumption or principle requires that all information significant enough to affect adecision of reasonably informed users should be reported in the financial statements?a.Matching.b.Going concern.c.Historical cost.d.Full disclosure.
Answer:
Letter d is correct. Full disclosure.
Explanation:
The accounting principle of full disclosure can be defined as GAAP requirements for an organization's management to provide all key information about the company's operations to investors and creditors, so that such external users can use the financial statements and notes. relevant footers to assist in the decision-making process.
Therefore, the main objective of the full disclosure principle is that there is a principle of transparency for organizations in the disclosure of financial information capable of influencing the judgment of external users, such as past transactions and future contingent events to third parties.