Answer:
$4,600
Explanation:
High-Low cost estimation is used to split a mixed cost into variable cost and fixed cost.
The first step is to determine the variable cost per unit with this formula
= High Activity cost - Low Activity Level cost
_____________________________________
High Activity Level (units) - Low Activity Level (units)
In this case, we can slot in the appropriate figure using this formula
= $5,000 - $4,000
__________________
20,000hrs - 15,000hrs
= $,1000
______
5000hrs
= $0.2hr
Using high-low cost estimation, the variable cost per machine hour is $0.2.
Now since total cost equals fixed plus variable cost, we can get our fixed cost by multiplying variable cost per machine hour with activity level and deducting the result from total cost given.
Using the high activity level (20,000), our fixed cost will be:
Fixed cost = Total cost - variable cost per machine hr (activity level)
Fixed cost= $5,000 - $0.2(20,000hr)
Fixed cost = $5,000- $4,000
Fixed cost =$1,000
Having gotten our fixed cost and variable cost per machine hour, we can estimate the total utility cost for 18,000 machine hours by using this formula:
y = a + b(x)
Where y is the total cost, a the fixed cost, b the variable cost per unit and x the activity level.
y = $1,000 + $0.2(18,000)
y = $1,000 + 3,600
y = $4,600.
What will be the effect on the contribution margin ratio if the selling price per unit decreases and variable cost per unit remains the same?
A) It will remain the same.
B) It will decrease.
C) It will increase.
D) It is impossible to determine with the given information.
Answer:
correct answer is B) It will decrease.
Explanation:
we know that contribution margin ratio is express as
contribution margin ratio = ( Sales Revenue - Variable Costs ) ÷ Sales Revenue ...........................1
so here any increase in selling price increase contribution margin
and if the selling price per unit is decreases
and variable cost per unit remain same
contribution margin ratio will decrease
so here correct answer is B) It will decrease.
"The 2017 balance sheet of Dream, Inc., showed current assets of $3,190 and current liabilities of $1,480. The 2018 balance sheet showed current assets of $3,240 and current liabilities of $1,670."What was the company's 2018 change in net working capital, or NWC?
Answer:
This problem requires us to calculate Dream Inc change in net working capital, or NWC. The woking capital is the company ability to pay its short term liabilities. In other words it shows how liquid company is.
Working capital is difference between current asset and current liability.
2017 NWC = 3,190 - 1,430 = 1,710 -A
2018 NWC = 3,240 - 1,670 = 1,570-B
Change in NWC = A-B = $ 140
The company net working capital has decreased by 140 dollars.
Consider the following yields to maturity on various one-year zero-coupon securities:
Security Yield (%)
Treasury 4.6
AAA corporate 4.8
BBB corporate 5.6
B Corporate 6.2
The credit spread of the BBB corporate bond is closest to:
A) 1.0% B) 5.6% C) 0.8% D) 1.6%
Answer:
A) 1.0%
Explanation:
Given that
Security Yield (%)
Treasury 4.6
AAA corporate 4.8
BBB corporate 5.6
B Corporate 6.2
By considering the above information, the credit spread of the BBB corporate bond would be
= BBB corporate - Treasury
= 5.6% - 4.6%
= 1.0%
We simply deduct the treasury from the BBB corporate so that the credit spread could come
The credit spread of a bond can be calculated by finding the difference in yield between two different rated bonds. In this case, the credit spread of the BBB corporate bond is found to be 0.8% by comparing its yield to the AAA corporate bond.
The credit spread of a bond is the difference in yield between a bond with a lower credit rating and a bond with a higher credit rating. In this case, to find the credit spread of the BBB corporate bond, we compare its yield to the yield of the AAA corporate bond.
The credit spread for the BBB corporate bond is calculated by subtracting the yield of the AAA corporate bond from the yield of the BBB corporate bond:
Credit Spread = Yield of BBB corporate bond - Yield of AAA corporate bond
Using the given yields, the credit spread of the BBB corporate bond is:
Credit Spread = 5.6% - 4.8% = 0.8%
Why do financial managers refer to the opportunity cost of capital? How would you find the opportunity cost of capital for a safe investment?
Answer:
To find the opportunity cost of capital for a safe investment, managers and investors look at current interest rates on safe debt securities.
Explanation:
Opportunity cost of capital refers to the return that could have been earned by investing in another investment opportunity with comparable risk.
Answer:
Opportunity cost of the capital is usually (if we consider the tax implications on the returns demanded by the lenders) the return required by the investors
Explanation:
So assume that I am appraising a project and I need an investment of round about 1 million dollars. If I fund this investment from loan which costs me 10% and also increases the financial cost then its opportunity cost is 10% interest and additional risk increased. However I also have an offer from one of my friends who is willing to invest in this project and is offering me $0.5 million equity investment and demands 20% return on this investment alongwith lower financial risk. So the opportunity cost of this equity investment is 20% cost of equity along with lower financial risk.
We can find opportunity cost of capital for a safe investment from the yield of government gilts or treasury bond's yield on investment.
explain why an economy in which airlines charge different passangers different prices for the same flight ticket will not achieve echomic efficiency ?
Answer:
Price discrimination is when a producer charges different prices, to different consumers for the same good or service. Therefore, an airline that charges different prices to different passengers for the same flight is practicing a third degree price discrimination because consumers are charged different prices based on their different demand elasticities.
Economic efficiency is when scarce resources are used in the most efficient way to produce maximum output; it consists of productive efficiency and allocative efficiency. For price discrimination to be possible, the firm must have a certain degree of monopoly power; that is, the firm must be a price maker. Monopolies typically fit into this description as they discriminate by charging consumers with an inelastic demand higher prices; this reults in allocative ineffciency because price is greater than the Marginal Cost (P>MC).
On the other hand price discrimination could increase efficiency; price discrimination aims to convert consumer surplus to producer surplus, thereby increasing the profit of the firm. An increase in profits could be dedicated to investement in research and development; this could see such a firm achieve dynamic efficiency (long-run productive efficiency). Secondly, due to the increased profits and the potential for more profits, output is increased and price moves closer to the MC (Closer to allocative efficiency). In addition, an increase output would mean that the firm is making use of its spare/idle capacity in production, moving output towards optimum. From another perspective, a firm can reap economies of scale through price discrimination; this is because price discrimination leads to an increase in output and a reduction in average cost.
Explanation:
Final answer:
An economy where airlines engage in price discrimination by charging different prices for the same flight ticket to different passengers, such as business travelers and tourists, may not achieve economic efficiency due to the distortion of consumer and producer surplus, creation of deadweight loss, and potential for monopolistic control.
Explanation:
An economy in which airlines charge different passengers different prices for the same flight ticket may not achieve economic efficiency due to the distortion of consumer and producer surplus. Airlines often use price discrimination, a strategy where different prices are charged to different groups of customers for the same service. In the case of airlines, this is often seen with business travelers and tourists, who are charged different rates based on their price elasticity of demand. While this strategy may increase airline profits, it can lead to inefficiencies in the market.
For instance, business travelers, who may have inelastic demand due to rigid travel schedules, could be charged higher prices. Conversely, tourists, who often have more flexibility and elastic demand, could be charged lower prices to fill seats. This type of pricing doesn't necessarily reflect the actual cost of providing the service but rather the maximum willingness to pay of different customer segments. While this allows airlines to capture more consumer surplus, it can also create deadweight loss, a market inefficiency where not all potential gains from trade are realized.
This inefficiency arises because the optimal allocation of resources, where price equals marginal cost, is distorted. The high prices for business travelers might reduce the number of those travelers below what would be socially optimal, while the lower prices for tourists might encourage more travel than is cost-effective from a resource allocation perspective. Furthermore, aggressive price discrimination practices, like slashing prices to remove competition, could lead to monopolistic control, further distorting prices and reducing economic efficiency.
Ordinary life insurance involves policies marketed on an individual basis, on which policyholders receive a lump sum payment at maturity of the policy.
True/False
Answer:
The statement is: False.
Explanation:
Life Insurance is a financial contract that protects an individual's dependents in the case of his or her death. In life, the policy holder makes payments on a regular basis -typically monthly- to be covered and selects who the beneficiaries will be if he or she passes away. The beneficiaries receive a lump sum of payment only in front of that event.
Which of the following would most likely shift a production possibilities curve to the right?a. shifting resources from the production of one good to the production of anotherb. a decline in the size of the labor forcec. an improvement in the education level of the work force of a nationd. a sudden substantial increase in consumer desires to purchase goods
Answer:
Option (d) is correct.
Explanation:
Production possibility curve refers to the graphical representation of the combination of two goods that an economy can produce with the available resources.
If there is an increase in the demand for goods or we can say that the consumer's desires to the buy the good increases then as a result this will shift the production possibility curve rightwards. Now, more of both the goods are produce by the economy.
What impact are macroenvironmental factors likely to have on the level of student enrollments at colleges and universities over the next decade?
Answer:
Macro environmental factors likely to affect student enrollments at colleges and universities over the next decade includes sociocultural, economic, political and legal factors.
Explanation:
Macro environmental factors are very much external to student enrollments at colleges and universities over the next decade; however, they form an integral factor.
Sociocultural factors, such as the societal perception, and cultural systems, forms a vital role on the level of student enrollments at colleges and universities over the next decade?.
Answer and explanation:
The Macroenvironment is the conditions existing in an economy as a whole, rather than in a single sector or region. The macroenvironment is linked to the business cycle and includes trends in Gross Domestic Product (GDP), Inflation, Employment, Spending, and Monetary and Fiscal Policy.
All the factors mentioned above influence people's decisions and enrolling at college is a subject matter to those considerations. The employment rate, job positions available, wages and compensations are typical factors that help applicants to universities decide what career to choose and in the next decade that is not unlikely to change.
Characteristics of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is either similar or identical products. Which of the following are other characteristics of this market structure?
a. Market control by many small firms
b. Mutual interdependence
c. Market control by a few large firms
d. Neither mutual interdependence nor mutual dependence
e. Difficult entry
Answer:
a. Market control by many small firms
c. Market control by a few large firms
e. Difficult entry
Explanation:
The oligopoly is a type of market where only a few dominant firms operate in such markets. Each of these firms has a significant presence in the market and can influence the pricing process. A special form of oligopoly - if there are only two firms in the market - is called duopoly. In other words, oligopoly means that there are many buyers in front of a small number of firms that will affect each other in the same field of activity.
When one firm's decision-making activities of other firms in the same area of activity are unaware and independent of each other's activities, it does not represent an oligopoly concept. There are certain conditions for a market to be an oligopoly market. These are the conditions that differentiate firms operating in the same field from other markets.
Features of oligopoly:
- It is important that firms operating in the oligopoly market have a mutual relationship with one another. It is important to follow and evaluate the behavior of one firm in terms of both the business and the competition and the decisions it makes by another firm. Otherwise, it is not appropriate to talk about oligopoly.
- Goods and services produced in oligopoly markets are sometimes delivered to consumers in completely different and sometimes different ways. If the goods and services produced in the oligopoly market are completely identical or completely substituted for each other, they are called pure oligopoly. An example is the goods produced in the oil sector.
- Another feature of the oligopoly market, unlike other markets, is that firms that have entered this market have to take into account pricing strategies, production volumes, consumer masses and similar variables in the market. This is one of the features that indicate that access to the oligopolistic market is difficult.
Types of oligopoly:
-Cournot model is the first and most widely used model in duopol models. Thus, it was founded in 1938 by the French economist Agustin Cournot. Agustin Cournot investigated how much of the market will be sold by two separate firms that use the same mineral water as their raw materials. One of the firms produces goods for half of the aggregate market demand in terms of profit margin. The other company selects the rest of the market with a target mass and produces the appropriate goods. Quantity strategy, not price, is important here.
In contrast to the Cournot model in the Bertrand model, firms act in accordance with their pricing strategies instead of the sales volume. According to the price of the first firm on the commodity, the second firm offers a lower price than the consumer. Accordingly, the first firm also offers a lower price on the market than the second. This implies the concept of price competition and, in this case, continues to the minimum profit margin.
-Chamberlin model. Firm A is the only manufacturer of the same kind in the market. Company B enters the market and starts producing this type of product. Here Company B operates in accordance with the firm's market strategy and operates on its experience. Unlike other models, the two existing companies in the market understand that they are interdependent and act on a common point.
- The Edgeworth model is the first company in the market to maintain a high level of profitability. On the other hand, a second firm that enters the market from a competitive position and redirects the mass to itself. In response, the first firm drops prices compared to the second firm. At the same time, the second firm is lowering the price of the first firm again. As this competition continues, firms are already thinking that they have created their target mass at some point. In this case, they start to raise prices. In the end, a wave-price mechanism emerges. This price volatility in the market continues until firms realize they have to share the market .
- In the Stackelberg model, one of the two firms in the market is a leader and the other is a successor company. The leader firm does not regard the pursuit firm as a powerful competitor and enables it to operate in the market. The pursuant firm, in turn, operates for maximum profit from its falling market share.
The current asset section of Guardian Consultant's balance sheet consists of cash, accounts recelvable, and prepald expenses. The 2018 balance sheet reported the following: cash, $1,440,000; prepald expenses, $500,000; noncurrent assets, $3,800,000; and shareholders' equity. $3,900,000. The current ratio at the end of the year was 20 and the debt to equity ratio was 1.4.
Required:
Determine the following 2018 amounts and ratios: (Round your "The acid-test ratio" answer to 1 decimal place.)
1. Current liabilities
2. Long-term liabilities
3. Accounts receivable
4. The acid-test ratio
Answer:
a) Current Liabilities $2,780,000
b) Long term liabilities $2,680,000
c) Accounts receivable $3,620,000
d) Therefore Acid Test 1.8
Explanation:
Step 1: Calculate the Current Liabilities
The question requires a work-back based on the information given as follows
Stockholders Equity (A) $3,900,000
Debt Equity Ration 1.4
Total debt therefore ($3,600,000 x 1.4) (B) $5,460,000
Total debt and equity therefore is (A + B ) $9,360,000
($3,900,000 + $5,460,000)
Total Equity and Debt = Total Assets
Total Assets therefore $9,360,000
Therefore Current Assets $5,560,000
(Total debt - Non Current Asset)
($9,360,000 - $3,800,000)
Less: Cash and prepaid expenses ($1,940,000)
($1,440,000 + $500,000)
Accounts receivable $3,620,000
Current Ratio therefore is 2.0 (not 20)
Meaning: Current Liabilities $2,780,000
(Current Assets/ Current ratio)
($5,560,000/2)
Step 2: Calculate Long term Liabilities
Total debt (from step 1) $5,460,000
less; Current Liabilities $2,780,000
Long term liabilities $2,680,000
Step 3: Accounts Receivable
Total Assets $9,360,000
Current Assets $5,560,000
(Total debt - Non Current Asset)
($9,360,000 - $3,800,000)
Less: Cash and prepaid expenses ($1,940,000)
($1,440,000 + $500,000)
Accounts receivable $3,620,000
Step 4: The Acid test ratio
Cash $1,440,000
Accounts Receivable $3,620,000
Quick Asset (Cash + Accounts receivable) $5,060,000
Current Liabilities $2,780,000
Therefore Acid Test 1.8
(Quick Asset / Current liabilities)
(5,060,000/2,780,000) 1.8
Final answer:
This response explains how to calculate current liabilities, long-term liabilities, accounts receivable, and the acid-test ratio based on the information provided in the question.
Explanation:
Current liabilities: To find current liabilities, we use the current ratio formula: Current Ratio = Current Assets / Current Liabilities. Given the current ratio is 20, and we know current assets are $1,940,000, we can calculate current liabilities to be $97,000.
Long-term liabilities: Long-term liabilities can be found by using the debt to equity ratio formula: Debt to Equity Ratio = Total Liabilities / Shareholders' Equity. Shareholders' Equity is given at $3,900,000, and the debt to equity ratio is 1.4, so total liabilities would be $5,460,000.
Accounts receivable: We are given cash, prepaid expenses, and noncurrent assets, so to find accounts receivable, we calculate Total Assets = Current Assets + Noncurrent Assets. Therefore, accounts receivable would be $2,360,000.
The acid-test ratio: The acid-test ratio formula is (Current Assets - Inventory) / Current Liabilities. Since inventory information is not provided, we cannot calculate the exact acid-test ratio without that data.
Emma is the labor union negotiator. Today she is meeting with management to discuss the new five year contract, including wages and benefits. This example of labor-management negotiations over wages exemplifies which type of bargaining?
A) integrative bargaining
B) arbitrationC) distributive bargaining
D) mediation
E) conciliation
Answer:
Letter C is correct. Distributive bargaining.
Explanation:
Distributive negotiation is a win-lose competitive negotiation strategy. That is, a party only wins if another party loses something. The central objective of this strategy is for a party to earn as much as it can.
Therefore, the ideal alternative to the above question is distributive negotiation, which is used to distribute fixed resources, such as money, assets, resources and labor management negotiations such as wages.
Answer:
To which of the following categories do collective bargaining, mediation, and arbitration belong?
Explanation:
Which of the following organizations requires publicly owned companies to be audited byindependent accountants (CPAs)?A) Securities and Exchange Commission (SEC)B) Public Company Accounting Oversight Board (PCAOB)C) Financial Accounting Standards Board (FASB)D) American Institute of Certified Public Accountants (AICPA)
Answer:
A) Securities and Exchange Commission (SEC)
Explanation:
Securities and Exchange Commission (SEC) is an agency of the federal or central government established by law. it laid down rules and regulations to be followed by security brokers, dealers and other market participants which shapes their relationship and ensure fairness in their business business relationship, The SEC as it is popularly called is charged with the responsibility of regulating the security and exchange market as a whole.
Niagara Resort Club sold plant assets at a $ 15 comma 000 loss. Where on the statement of cash flows should Niagara Resort Club report the sale of plant assets? How much should the business report for the sale?
Answer:
The sale of the plant assets reported in the Income statement is at profit or loss whereas the asset sold reported in the Statement of Cash flows will show a positive balance of $15,000 from investing activities.
Explanation:
The sale of Non current assets or fixed assets are always the amount that we received after the sale of the fixed asset. So the amount represented in the Statement of Cash Flows must be Total amount which is $15,000.
If you deposited $100 now (nequals0)and $200 two years from now (nequals2)in a savings account that pays 10% annual interest, how much would you have at the end of year 10?
Answer:
The correct answer is: "You would have $589 the end of year 10".
Explanation:
The logics of the statement remains in the amount of money remained after 10 years of savings with a 10% annual interest. This means that, after you deposit $100 now (nº 0), on the first current year you would have ended up with $110, although in the second year (nº 2) you would have made a deposit of $200, which means you would have made total earnings of $310, plus the annual interest of $31. After the second year, all subsequent ones wound count on with an annual interest of $31, which means that at end of year 10 you would have reached the amount of $589.
(ps: mark as brainliest, please?!)
Bower Company purchased Lark Corporation’s net assets on January 3, 20X2, for $632,000 cash. In addition, Bower incurred $9,000 of direct costs in consummating the combination. At the time of acquisition, Lark reported the following historical cost and current market data:
Balance Sheet Item Book Value Fair Value
Assets
Cash & Receivables $ 57,000 $ 57,000
Inventory 114,000 165,000
Buildings & Equipment (net) 207,000 307,000
Patent — 203,000
Total Assets $ 378,000 $ 732,000
Liabilities & Equities
Accounts Payable $ 20,000 $ 20,000
Common Stock 98,000
Additional Paid-In Capital 66,000
Retained Earnings 194,000
Total Liabilities & Equities $ 378,000
Required:
Prepare the journal entry or entries with which Bower recorded its acquisition of Lark’s net assets. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Record the payment of merger costs.
Record the acquisition of Lark Corporation net asets.
Answer:
Preparation of Journal Entries
Date Particulars Dr($) Cr($)
January 3, 20x2 Cash & Receivables 57,000
Inventory 165,000
Buildings & Equipment 307,000
Patent 203,000
Account Payable 20,000
Purchase Consideration 632,000
Gain on Purchase Bargain 80,000
(Being purchase of Lark
Corporation`s net assets)
Recording of merger costs.
(Debit) Cash $9,000
(Credit) Merger Expenses $9,000
Recording of acquisition of Lark Corporation`s net assets
(Debit) Investment in Lark`s net asset $712,000
(Credit) Cash $632,000
(Credit) Gain on Purchase Bargain $80,000
Explanation:
When acquiring another business, net asset (Total Assets - Total Liabilities) is valued at fair value (sometimes called market value, not book value. Hence, the reason why the fair value of Lark`s assets and liabilities was used in the calculation above. So the net assets ($57,000+$165,000+$307,000+$203,000 - $20,000) = $712,000.
After, calculating the net assets of the Lark, the purchase consideration given by Bower Company has to be removed from the net asset, in order to get the goodwill or gain on purchase bargain on the acquisition. The formula is Purchase consideration - Net assets of the target company = Goodwill (Gain on purchase bargain). If the purchase consideration is higher than the net assets, then goodwill is obtained. If the purchase consideration is lower than net assets acquired then, gain on purchase bargain is obtained.
In Bower`s case, gain on purchase bargain is obtained because net assets is greater than purchase consideration ($632,000 - $712,000).
Merger cost
Merger cost is not considered as part of purchase consideration. The merger cost is taken to income statement of Bower Corporation as expense.
Given the following information, calculate the funds from operation (FFO). Net income: $1,200,000, Gain/losses from infrequent and unusual events: $0, Amortization of tenant improvements: $120,000, Amortization of leasing expenses: $75,000, Depreciation (real property): $2,675,000.
A. $195,000
B. $1,395,000
C. $2,870,000
D. $4,070,000
Answer:
Option (D) is correct.
Explanation:
Funds from operation:
= Net income - Gain/losses from infrequent and unusual events + Amortization of tenant improvements + Amortization of leasing expenses + Depreciation (real property)
= $1,200,000 - $0 + $120,000 + $75,000 + $2,675,000
= $4,070,000
Therefore, the funds from operation is $4,070,000.
A sales representative at Universal Container needs assistance from specific product managers when selling certain deals. Product managers do not have access to opportunities, but need to gain access when they are assisting with a specific deal. How can a system administrator accomplish this?
A. Notify the product manager using opportunity update reminders.
B. Enable opportunity teams and allow users to add the product manager.
C. Use similar opportunities to show opportunities related to the product manager. D. Enable account teams and allow users to add the product manager.
Answer:
The correct answer is letter "B": Enable opportunity teams and allow users to add the product manager.
Explanation:
The situation portraits a gap between salespeople and product managers. Salespeople need assistance when selling certain products but product managers do not have access to those opportunities. In that case, a system administrator must link the two parties by enabling opportunity teams. Then, salespeople directly can add a product manager to the opportunity team according to the type of assistance needed.
Concord Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $20 per year. During November 2020, Concord sells 16,500 subscriptions beginning with the December issue. Concord prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue.a.Prepare the entry in November for the receipt of the subscriptionsb.Prepare the adjusting entry at December 31, 2014, to record sales revenue recognized in December 2014.c.Prepare the adjusting entry at March 31, 2015, to record sales revenue recognized in the first quarter of 2015.
Answer:
Explanation:
The journal entries are shown below:
a) Cash A/c Dr $330,000 (16,500 subscriptions × $20)
To Unearned subscription Revenue A/c $330,000
(Being the receipt of the subscriptions is recorded)
b) Unearned subscription Revenue A/c Dr $27,500
To Subscription Revenue A/c $27,500
(Being the sales revenue recognized in December 2014 is recorded)
The calculation is shown below:
= $330,000 × 1 month ÷ 12 month
= $27,500
c) Unearned subscription Revenue A/c Dr $82,500
To Subscription Revenue A/c $82,500
(Being the sales revenue recognized in March 31, 2015 is recorded)
The calculation is shown below:
= $330,000 × 3 month ÷ 12 month
= $82,500
Now that you are successful in your new position, you have decided to reward yourself with a new (or new to you) vehicle. Sources say you should strive to have your vehicle payment be no more than 10% of your gross monthly salary, which you already computed in question 3. Write an inequality, using x to represent your gross monthly salary and y to represent your monthly car payment, which could be used to calculate the range of payments that will work in your budget. (Do NOT input your salary on this step).
Answer:
Range is : (0, 0.1x)
Explanation:
Problem has no information about amount of salary, so I will just use 'x' and 'y'.
Problem says that vehicle payment should be no more than 10% of gross monthly salary. This means that vehicle payment (Y) equals to 0.1 (10%) multiplied by gross monthly salary, which is stated as 'X'.
From this y = 0.1 X;
Next, if we want to identify range of payments: (0; 0.1X).
This means that any amount of money between 0 and 0.1X is acceptable.
Answer:
The inequality is
0< y<= 0.1x
Explanation:
If X represent the gross monthly salary and and y represent your monthly car payment the inequality.
10% of x= 0.1x
no more than 10% of your gross monthly salary means
Y <= 0.1x
The inequality therefore is 0< y<= 0.1x
The following financial statement information is from five separate companies:
Company
A Company
B Company
C Company
D Company
E
December 31, 2012
Assets $ 55,000 $ 34,000 $ 24,000 $ 60,000 $ 119,000
Liabilities 24,500 21,500 9,000 40,000 ?
December 31, 2013
Assets 58,000 40,000 ? 85,000 113,000
Liabilities ? 26,500 29,000 24,000 70,000
During year 2013
Owner investments 6,000 1,400 9,750 ? 6,500
Net income (loss) 8,500 ? 8,000 14,000 20,000
Owner cash withdrawals 3,500 2,000 5,875 0 11,000
_______________________________________________________________________________________________
Company A
#1. What is the amount of equity on December 31, 2012 for Company A.
#2. What is the amount of equity on December 31, 2013 for Company A
#3. What is the amount of liabilities on December 31, 2013 for Company A
Company B
#1. What is the amount of equity on December 31, 2012 Company B
#2. What is the amount of equity on December 31, 2013 Company B
#3. What is net income for year 2013 Company B
#4. Create a statement of Owners Equity
(Equity, December 31st, 2012 = )
(Equity, December 31st, 2013 = )
Company C
#1. Calculate the amount of assets for Company C on December 31, 2013
#2. Create a statement of Owners Equity
(Equity, December 31st, 2012 = )
(Equity, December 31st, 2013 = )
Company D
#1. Calculate the amount of owner investments for Company D during year 2013.
#2. Create a statement of Owners Equity
(Equity, December 31st, 2012 = )
(Equity, December 31st, 2013 = )
Company E
#1. Calculate the amount of liabilities for Company E on December 31, 2012.
#2. Create a statement of Owners Equity
(Equity, December 31st, 2012 = )
(Equity, December 31st, 2013 = )
The question asks for various calculations related to equity, assets, and liabilities of five companies according to the given data. The required financial information is calculated using key accounting formulas. Due to format constraints, the creation of equity statements were omitted from this response.
Explanation:The subject of this question revolves around 'financial statement analysis' and 'equity calculation'. We need to use the following formulas:
Assets = Liabilities + Equity Beginning Equity + Net Income (Loss) + Owner Investments - Owner Cash Withdrawals = Ending Equity
Let's breakdown the calculations for each company:
Company A
Equity on December 31, 2012 = Assets - Liabilities = $30,500 Equity on December 31, 2013 = Beginning Equity + Net Income - Cash Withdrawals + Investments = $41,500 Liabilities on December 31, 2013 = Assets - Equity = $16,500
Company B
Equity on December 31, 2012 = Assets - Liabilities = $12,500 Equity on December 31, 2013 = Assets - Liabilities = $13,500 Net Income = Ending Equity - Opening Equity + Cash Withdrawals - Investments = $3,600
Company C
Assets on December 31, 2013 = Starting Equity + Net Income - Cash Withdrawals + Investments = $32,875
Company D
Owner Investments = Ending Equity - Opening Equity + Cash Withdrawals - Net Income = $5,000
Company E
Liabilities on December 31, 2012 = Assets - Opening Equity - Net income + Cash Withdrawals - Investments = $43,000
The creation of an equity statement was not included in this summary due to length constraints.
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How does taking a systems view of a project apply to project management?
Answer:
System view is having knowledge about each and every step involve in the process. To have a complete command and understanding of performing every step of the required task is known as System view.
For Example: lets take a Project of building a house manager needs to know each and every signal step involved in the complete project from map making to concrete structure, from paint to interior, from wooden work to sanitary etc. If the manager will have a complete command over each of the above defined activity then only the project will be completed effectively and efficiently.
When should you use Add other funds to this deposit grid in a Deposit Transaction? Identify 3 correct options. (Select all that apply)(A) When an employee reimburses the company(B) You receive a tax refund from the IRS(C) You need to record an ACH payment of a customer invoice(D) When a company doesn’t record income using sales transactions (invoices or sales receipts), and wants to record deposits directly to income accounts To record the payment of a Vendor Bill
Answer:
(A) When an employee reimburses the company
(B) You receive a tax refund from the IRS
(D) When a company doesn’t record income using sales transactions (invoices or sales receipts), and wants to record deposits directly to income accounts
Explanation:
The three options are -
Option A is correct as the employee repays the company so that the funds to this deposit will be added to the deposit transaction.
Option B is correct as the employee or an individual will get the tax refund from the IRS which can be deposited to the deposit grid.
Option D is correct as it is recorded to income accounts directly as deposits.
Any payment cannot be added as deposit. Therefore, option C is incorrect.
Final answer:
The 'Add other funds to this deposit grid' in Deposit Transactions is used when an employee reimburses the company, when receiving a tax refund from the IRS, and for directly recording income not through sales transactions. It is not used for recording ACH payments of customer invoices.
Explanation:
Using the Add other funds to this deposit grid in a Deposit Transaction is necessary in several distinct scenarios within the realm of accounting and financial management. This feature allows for recording various types of transactions that are not directly related to customer payments or regular sales receipts.
(A) When an employee reimburses the company: If an employee is returning money to the company that they had previously been given, such as for a business expense that was overpaid, this would be recorded here.(B) You receive a tax refund from the IRS: Tax refunds are not sales revenue, but they are funds that the company receives and needs to account for. The deposit grid is the correct place to record such transactions.(D) When a company doesn’t record income using sales transactions: If a business directly receives income that is not associated with an invoice or sales receipt, such as a one-time income source or a rental income, it can be recorded in the deposit grid to the appropriate income accounts.However, option (C), recording an ACH payment of a customer invoice, does not belong in the deposit grid. Customer invoice payments are typically recorded elsewhere in the accounting system, usually through the accounts receivable module, rather than directly in a deposit transaction.
Duck, an accrual basis corporation, sponsored a rock concert on December 29, 2018. Gross receipts were $300,000. The following expenses were incurred and paid as indicated: Expense Payment Date Rental of coliseum $25,000 December 21, 2018 Cost of goods sold: Food 30,000 December 30, 2018 Souvenirs 60,000 December 30, 2018 Performers 100,000 January 5, 2019 Cleaning the coliseum $10,000 February 1, 2019 Because the coliseum was not scheduled to be used again until January 15, the company with which Duck had contracted did not perform the cleanup until January 8–10, 2019. a. Calculate Duck's net income from the concert for tax purposes for 2018. If an amount is zero, enter "0".
Answer:
$85,000
Explanation:
First, we can organize the expenses information like this:
Expense Payment Date
Rental of Coliseum $25,000 12-21-2018
Cost of goods sold $90,000 12-30-2018
Performers $100,000 1-05-2019
Cleaning the coliseum $10,000 2-01-2019
Because in accrual basis of accounting, expenses are recognized when they are incurred, we then take the gross recepits, and substract from it all the expenses that were incurred in the year 2018.
That is to say, we substract all expenses except the cleaning the coliseum expense, because this expense was incurred in 2019, and was paid in 2019, therefore, it is not part of the taxable income for 2018 under the accrual basis of accounting.
Same is true for the performers expense. It was paid in 2019, but it was incurred in 2018, therefore, it has to be substracted to obtain the 2018 taxable income.
Taxable income = Gross receipts - Expenses incurred in 2018
= $300,000 - $215,0000
= $85,000
Study the following transactions . Journalize the transactions in a two-column journal, using the appropriate number to identify the transactions.
1. Billed customers for fees earned, $55,330.
2. Purchased supplies on account, $2,380.
3. Received cash from customers on account, $52,010.
4. Paid creditors on account, $1,440.
Answer:
Explanation:
The journal entries are given below:
1. Account receivable A/c Dr $55,330
To Fees earned $55,330
(Being the fees earned is recorded)
2. Supplies A/c Dr $2,380
To Account payable A/c $2,380
(Being the supplies is purchased on account)
3. Cash A/c Dr $52,010
To Account receivable A/c $52,010
(Being the cash is received from customers)
4. Account payable A/c Dr $1,440
To Cash A/c $1,440
(Being cash is paid to creditors on account)
GoodTimes, Inc. has asset turnover of 0.5 times, a net profit margin of 10% and average total assets of $100, what is its net income (assuming no unusual items)?
Answer:
$5
Explanation:
Given that,
Asset turnover ratio = 0.5 times
Net profit margin = 10 percent
Average total assets = $100
Asset turnover ratio = sales ÷ Total asset
0.5 = sales ÷ $100
sales = $50
Profit margin = Net income ÷ sales
0.10 = Net income ÷ $50
Net income = $5
Therefore, the net income of GoodTimes, Inc. is $5.
To find the net income of GoodTimes, Inc. with a net profit margin of 10%, an asset turnover of 0.5 times, and average total assets of $100, you calculate total revenue by multiplying asset turnover by average total assets, then multiply the result by net profit margin. Net income is $5.
To calculate the net income of GoodTimes, Inc., we can use the formula:
Net Income = Net Profit Margin x Total Revenue
First, we need to find the Total Revenue. This can be done using the asset turnover ratio:
Asset Turnover = Total Revenue / Average Total Assets
Therefore:
Total Revenue = Asset Turnover x Average Total Assets
Total Revenue = 0.5 times x $100
Total Revenue = $50
Now, using the net profit margin, we calculate net income:
Net Income = Net Profit Margin x Total Revenue
Net Income = 10% x $50
Net Income = 0.10 x $50
Net Income = $5
The net income for GoodTimes, Inc. is $5, assuming no unusual items are present.
The estimator determines who is responsible for what cost portion of supplying the temporary utilities.
A. True.
B. False
Social compensation is especially likely when high-ability group members are suspected of loafing.
a. True
b. False
Answer:
The correct answer is letter "B": False.
Explanation:
Social loafing is the act in which employees underperform while given tasks individually compared when working in groups. Under this scenario, it is unlikely employers would provide extra compensation to workers because their productivity does not justify the reward.
Which of these statements represent ideas that Peter Drucker introduced in his book The Practice of Management? (select all that apply)
A. Production costs are a component of sales
B.Charismatic leaders are more important than management practices
C.Employees should be treated as assets
D. A corporation can be thought of as a human community
E. Without customers, businesses wouldn't exist
Answer:
The correct answers are letters "C", "D", and "E": Employees should be treated as assets; A corporation can be thought of as a human community; Without customers, businesses wouldn't exist.
Explanation:
Austrian business professor Peter Ferdinand Drucker (1909-2005) is well-known in management for his book "The Practice of Management" (1954) in which he highlighted the importance of companies in society. Drucker studied the human side of corporations which includes workers and how leadership influences them. Besides, according to him, a business exists with the ultimate goal of creating a customer, meaning that managers would have to know their clientele and their needs to drive a firm to success.
Statements that represent ideas that Peter Drucker introduced in his book The Practice of Management are;
Employees should be treated as assets. A corporation can be thought of as a human community.Without customers, businesses wouldn't exist.Practice of Management can be regarded as how the goals of the organization can be achieved. It involves all managerial functions and all these are emphasized by Peter Drucker .
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Financial and managerial accouting questions for my review sheet! i rate well.
Question 56
Select the correct statement.
A. Four purposes often claimed for budgeting involve planning, coordination, performance measurement, and reporting.
B. In a participative budgeting system, budget information flows in one direction only, from bottom to top.
C. The three major categories of the master budget are operating budgets, capital budgets, and pro forma financial statements.
D. The accounting department normally coordinates the development of the sales forecast.
Answer:
The correct answer is letter "C": The three major categories of the master budget are operating budgets, capital budgets, and pro forma financial statements.
Explanation:
A Master Budget is the compilation of all the budgets different departments of a company must come up with. Besides, the master budget includes the company projected financial statement, financial plan (operating budget with sales, expenses, and administrative projections), and cash-flow (capital budget including the acquisition of machinery, building, and labor).
In early 2008, the price of oil on the world market increased, hitting a peak of about $140 per barrel in July 2008. In the second half of 2008, the price of oil declined, ending the year at just over $40 per barrel. Suppose that the global market for oil can be described by an upwardsloping supply curve and a downward-sloping demand curve. For each of the following scenarios, illustrate graphically how the exogenous event contributed to a rise or a decline in the price of oil in 2008: a) A booming economy in China raised the global demand for oil to record levels in 2008. b) As a result of the financial crisis of 2008, the United States and other developed economies plunged into a severe recession in the latter half of 2008. c) Reduced sectarian violence in Iraq in 2008 enabled Iraq to increase its oil production capacity
Answer:
a) A booming economy in China raised the global demand for oil to record levels in 2008
The booming Chinese economy shifted the oil demand curve to the right, because now more oil was demanded in the world economy at any given price. Because supply did not increase as much as demand, the price of oil rose.
b) As a result of the financial crisis of 2008, the United States and other developed economies plunged into a severe recession in the latter half of 2008.
The declining advanced economies of late 2008 shifted the oil demand curve to the left, because now less oil was demanded in the world economy at any given price. Because the world's supply of oil did not shrink as fast as demand, the price of oil fell.
c) Reduced sectarian violence in Iraq in 2008 enabled Iraq to increase its oil production capacity.
The more stable Iraq economy shifted the oil supply curve to the right, because now more oil was put in the market at any given price. Depending on the time of the year, this increased supply contributed either to dampening the price increase of early 2008, or to accelerating the price decline of late 2008.