Answer and explanation:
For a business to be successful, nowadays it is important to diversify and adjust not only the goods or services the firm provides but also the organizational structure according to the territory where the operations take place. However, IKEA has shown that even having a Swedish-centralized organization scheme, they can handle operations in 25 countries with 276 stores including 37 more franchised stores.
IKEA's country-centric approach helps it stand out in the global market, but it's also important for corporations to adapt to local cultures to maintain market relevance.
Explanation:IKEA's strategy to stay Sweden-centric while being a global corporation could be seen from two perspectives. On one hand, this strategy helps the company differentiate itself in a crowded market, as it brings unique Swedish values and aesthetics to its products, thereby nurturing its uniqueness in a global marketplace. However, on the other hand, being too country-centric might lead to a lack of local adaptability in different markets, as cultural differences might cause customers to interpret the same products or processes differently. Therefore, it's important for any global corporation to find a balance between maintaining the core brand identity and accommodating local cultures.
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You currently have $3,400 in an investment account that returns 11% per year.
How long will you have to wait until you can make a $5,000 down payment on a new car?
Answer:
time period is 3.7 years
Explanation:
given data
currently amount = $3,400
returns = 11% per year = 0.11
down payment future value = $5,000
solution
we will apply here future value formula
Future value = Principle × ( 1 + r )ⁿ ....................1
put her value
$5,000 = $3,400 × ( 1 + 0.11 )ⁿ
1.4706 = ( 1 + 0.11 )ⁿ
now we will take log both side
log(1.4706) = log ( 1 + 0.11 )ⁿ
0.1675 = n × 0.0453
n = 3.7 years
so time period is 3.7 years
Suppose you were a member of Company X’s board of directors and chairperson of the company’s compensation committee. What factors should your committee consider when setting the CEO’s compensation? Should the compensation consist of a dollar salary, stock options that depend on the firm’s performance, or a mix of the two? If "performance" is to be considered, how should it be measured? Think of both theoretical and practical (i.e., measurement) considerations. If you were also a vice president of Company X, might your actions be different than if you were the CEO of some other company?
Answer:
A mix of salary and stock options
Explanation:
Well, in my point of view, CEO's compensation should include dollar salary and stock options. Because CEO needs to be shareholder in the company too. It actually gives him sense of ownership in company.
Performance of CEO must be measured by using 360 degree evaluation system in which subordinate, Board of directors and clients. In this way chairman of compensations committee will have clear understanding of CEO's performance. Another factor needs to be considered here that is company's performance measure should also be considered as CEO's performance. Yes, CEO's performance measure will be a bit different then other employees. We need to consider initiatives to increase share value and dividend is also part of CEO's performance. Also, many companies design their Salary slabs for this purpose, which contains expected salary for each level of management. That document can also help.
My decision in both the situations given in question will remain the same. Because that's the industry practice. If I were the vice president then i will choose the same technique described above.
When setting a CEO's compensation, factors such as company and individual performance should be considered. A mix of salary and stock options can strike a balance between stability and incentivization. The role one plays in the company influences the perspective on such decisions.
Explanation:As a member of Company X's board of directors and chairperson of the compensation committee, several factors should be considered when setting the CEO's compensation. First, company performance is crucial, typically measured through elements such as profitability, return on investment, or share price growth. Another consideration is the CEO's individual performance, which involves assessing the CEO's leadership, decision-making, and ability to deliver on strategic objectives.
The compensation package often includes a mix of a dollar salary and stock options. A fixed salary ensures stability, while stock options align the CEO's interests with those of the shareholders. If the stock value increases under the CEO's leadership, both parties benefit.
If you were also a vice president of Company X, your perspectives could potentially differ as your personal stake in the company and understanding of internal dynamics might influence your decisions. As the CEO of another company, your experience and perspective on CEO compensation might also differ based on your company's unique context and your personal experiences.
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One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity?
Answer:
current price = $1191.79
Explanation:
given data
time t = 15 year
annual coupon bonds rate = = 7.5 %
par value = $1000
interest rate = 5.5%
maturity time = 14 year
to find out
current price of the bonds
solution
we get here first annual coupon rate = 7.5% of 1000
annual coupon rate C = $75
so now we get current price of bond
current price of the bonds = [tex]\frac{C}{(1+r)} +\frac{C}{(1+r)^2} +\frac{C}{(1+r)^3} +\frac{C}{(1+r)^4} ..........\frac{C}{(1+r)^{13}} + \frac{C+par\ value}{(1+r)^{14}}[/tex] .................1
put here value
current price = [tex]\frac{75}{(1+r)} +\frac{75}{(1+r)^2} +\frac{75}{(1+r)^3} +\frac{75}{(1+r)^4} ..........\frac{75}{(1+r)^{13}} + \frac{75+1000}{(1+r)^{14}}[/tex]
current price = [tex]\frac{75}{(1+r)} \frac{1-(\frac{1}{1+r})^{14} }{r} (1+r) + \frac{1000}{(1+r)^{14}}[/tex]
solve it we get
current price = $1191.79
For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, (2) identify the normal balance of the account, and (3) enter debit (Dr.) or credit (Cr.) to identify the kind of entry that would increase the account balance.a. Cash b. Legal Expense c. Prepaid Insurance d. Land e. Accounts Receivable f. Dividends g. License Fee Revenue h. Unearned Revenue i. Fees Earned j. Equipment k. Notes Payable l. Common Stock
Answer:
Please see explanation.
Explanation:
1. and 2.
Type of accounts Normal balance
a. Cash asset Debit
b. Legal Expense expense Debit
c. Prepaid Insurance asset Debit
d. Land asset Debit
e. Accounts Receivable asset Debit
f. Dividends equity Debit
g. License Fee Revenue revenue Credit
h. Unearned Revenue liability Credit
i. Fees Earned revenue Credit
j. Equipment asset Debit
k. Notes Payable liability Credit
l. Common Stock equity Credit
Journal entries to increase the balance:
Dr Cr
a. Cash Cash Revenue
b. Legal Expense Legal expenses Cash
c. Prepaid Insurance Prepaid Insurance Cash
d. Land Land Cash
e. Accounts Receivable Accounts receivable Revenue
f. Dividends Retained earnings cash
g. License Fee Revenue Cash License Fee Revenue
h. Unearned Revenue Cash Unearned revenue
i. Fees Earned Cash Fees Earned
j. Equipment Equipment Cash
k. Notes Payable Cash Notes Payable
l. Common Stock Cash Common Stock
Identification of the type of account as either an asset, liability, equity, revenue, or expense, including their normal balances and increase entries follow:
Account Type Normal Balance Increasing Entry
a. Cash Asset Debit Debit
b. Legal Expense Expense Debit Debit
c. Prepaid Insurance Asset Debit Debit
d. Land Asset Debit Debit
e. Accounts Receivable Asset Debit Debit
f. Dividends Expense Debit Debit
g. License Fee Revenue Revenue Credit Credit
h. Unearned Revenue Liability Credit Credit
i. Fees Earned Revenue Credit Credit
j. Equipment Asset Debit Debit
k. Notes Payable Liability Credit Credit
l. Common Stock Equity Credit Credit
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A customer has been receiving confirmations and statements by mail and asks the registered representative if these can be sent by e-mail. The proper response is that this______________.A. cannot be done because physical paper confirmations and statements are required to be sent to customers under FINRA rulesB. can be done if the customer requests by letterC. can be done if the customer requests by e-mailD. can be done only with the approval of the branch manager
Answer:
The correct answer is letter "C": can be done if the customer requests by e-mail.
Explanation:
Under the Financial Industry Regulatory Authority (FINRA) rules, customers of financial institutions can decide the way they receive their financial statements without written communication to the bank unless a third party makes the request. If it is not the case, account holders can communicate to the financial institution directly what way of communication best suits them.
A volunteer must review photo identification for every taxpayer to deter the possibility of identity theft.
A. True
B. False
Answer:
Answer of the following statement is TRUE .
Explanation:
Identity theft remains an issue worldwide.
The interview should begin with demanding picture id to check the tax payer's and partner's identity on both the tax form. Exceptions must only be provided under extreme situations for requesting photo Identification and for clients reported to the site upon approval by the site administrator.On the last day of December 2013, Tom’s Trucks entered into a transaction that resulted in a receipt of $108,000 cash in advance related to services that will be provided during January 2013. During December of 2013, the company also performed $64,000 of services which were neither billed nor paid. Prior to December adjustments and before these two transactions were recorded, the company’s trial balance showed service revenue of $582,735 at December 31, 2013. There are no other prepaid services yet to be delivered, and during the month all outstanding accounts receivable from prior months were collected.
If Tom’s Trucks makes the appropriate adjusting entry, how much will service revenue will be reflected on the December 31, 2013 income statement?
If Tom’s Trucks makes the appropriate adjusting entry, how much will be reported on the December 31, 2013 balance sheet as unearned revenue?
If Tom’s Trucks makes the appropriate adjusting entry, how much will be reported on the December 31, 2013 balance sheet as accounts receivable?
Answer:
Explanation:
1. Service revenue (December 31, 2013) income statement = $582,735 + $64,000 = $646735
Company also performed $64,000 of services which were neither billed nor paid,adjusting entry:
Dr Accounts receivable 64000
Cr Service revenue 64000
2. Amount reported on the December 31, 2013 balance sheet as unearned revenue = $108,000
unearned revenue - revenue which has not been earned yet, but recorded in accounts
3. Amount reported on the December 31, 2013 balance sheet as accounts receivable = $64,000
Accounts receivable 64000
To service revenue 64000
The service revenue reflected on the December 31, 2013 income statement will be $64,000. The unearned revenue reported on the December 31, 2013 balance sheet will be $108,000. The accounts receivable reported on the December 31, 2013 balance sheet will be $64,000.
Explanation:To determine the amount of service revenue that will be reflected on the December 31, 2013 income statement, we need to consider the $108,000 cash received in advance and the $64,000 of services performed but not yet billed or paid. Since the $108,000 is for services that will be provided in January 2013, it should not be included in the December 2013 income statement. However, the $64,000 of services performed should be included. Therefore, the service revenue on the December 31, 2013 income statement will be $64,000.
To determine the amount of unearned revenue reported on the December 31, 2013 balance sheet, we need to consider the $108,000 cash received in advance. Since this cash is for services that will be provided in January 2013, it should be reported as unearned revenue on the December 31, 2013 balance sheet.
To determine the amount of accounts receivable reported on the December 31, 2013 balance sheet, we need to consider the $64,000 of services performed but not billed or paid. Since these services were performed in December 2013 and were not billed or paid yet, they should be reported as accounts receivable on the December 31, 2013 balance sheet.
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Trainers need to attend seminars on a regular basis to update their understanding of conditioning techniques based on the latest research. Then they need to integrate these new techniques into their training programs. Which personality factor is most important to perform this task successfully?A. AgreeablenessB. ExtroversionC. Openness to experience
Answer:
"C"
Explanation:
Openness to experience personality factor is demonstrated by individual who who likes to explore and adopt new ideas.He is creative , always willing to learn at every given opportunity, organized and highly principled and liberal , energetic and flexible in nature.
He makes a good learner as he can can go all the way to acquire new knowledge and skills .He also does not give up easily
The most important personality factor for trainers to successfully attend seminars, update their techniques, and integrate new methods into their training is Openness to Experience. This trait fosters curiosity, creativity, and an eagerness to explore and adopt novel approaches, crucial for continuous learning and adaptation in their field.
The personality factor most important for trainers to attend seminars regularly, update their understanding of conditioning techniques based on the latest research, and integrate these new techniques into their training programs is Openness to Experience. This trait is characterized by a person's imagination, feelings, actions, and open-mindedness towards new experiences. People who score high in Openness to Experience are typically curious and possess a wide range of interests, making them more likely to seek out new information and integrate innovative methods into their practice.
Moreover, Openness to Experience is associated with higher creativity, emotional breadth, and an eagerness to explore novel ideas and experiences. This inclination not only promotes continuous learning but also enhances the ability to adapt training methodologies to incorporate cutting-edge research findings effectively.
Gans argues that _____________ account for more than ethnic culture in explaining the social mobility and success of ethnic groups.
Answer:
The correct answer is letter "C": class factors.
Explanation:
American sociologist Herbert Gans (born in 1927) in his book "The Levittowners" (1967) concludes after the observation of residents in Long Island (New York) that demographic factors like class, ethnicity, and culture are variables affecting the lifestyle of the neighborhood. In fact, class is the most important of all three that drive the community to success.
Herbert J. Gans argues that individual effort and socioeconomic factors can exert more influence than ethnic culture on the social mobility and success of ethnic groups. However, other scholars emphasize the need to consider multiple factors such as societal constructs and institutional biases, suggesting that the scope is broader than what Gans posits.
Explanation:Herbert J. Gans argues that certain socioeconomic factors account for more than ethnic culture in explaining the social mobility and success of ethnic groups. This emphasizes the belief that personal willpower and hard work are significant drivers to climbing the social ladder in American society, along with other factors such as education, economic structures, and political factors.
For instance, Gans highlighted these ideas in his study titled 'First Generation Decline: Downward Mobility among Refugees and Immigrants' showing that social mobility is not as easy to achieve as many people believe. Besides, socioeconomic classes or stratification, through factors like wealth and education, play a significant role.
However, other scholars critique this perspective, emphasizing the influence of societal constructs, such as racism and prejudice or institutional bias, on social mobility. This reflects that the success of ethnic groups cannot be entirely credited to specific factors and that a more comprehensive approach incorporating several factors including ethnic culture and socioeconomic factors is necessary for understanding social mobility.
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The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.Balance Sheet (Millions of $)Assets 2010Cash and securities $1,290Accounts receivable 9,890Inventories 13,760Total current assets $24,940Net plant and equipment $18,060Total assets $43,000Liabilities and EquityAccounts payable $8,170Notes payable 6,020Accruals 4,730Total current liabilities $18,920Long-term bonds $8,815Total debt $27,735Common stock $5,805Retained earnings 9,460Total common equity $15,265Total liabilities and equity $43,000Income Statement (Millions of $) 2010Net sales $51,600Operating costs except depreciation 48,246Depreciation 903Earnings bef interest and taxes (EBIT) $2,451Less interest 927Earnings before taxes (EBT) $1,524Taxes 533Net income $990Other data:Shares outstanding (millions) 500.00Common dividends (millions of $) $346.67Int rate on notes payable & L-T bonds 6.25%Federal plus state income tax rate 35%Year-end stock price $23.7a. What is the firm's BEP?b. What is the firm's profit margin?c. What is the firm's operating margin?d. What is the firm's dividends per share?e. What is the firm's EPS?f. What is the firm's P/E ratio?g. What is the firm's book value per share?h. What is the firm's market-to-book ratio?i. What is the firm's equity multiplier?
Answer:
(a) 0.057
(b) 0.0192
(c) 0.0475
(d) 0.69334
(e) $1.98
(f) 11.97
(g) $30.53
(h) 0.7763
(i) 2.82
Explanation:
(a) BEP = EBIT ÷ Total Assets
= $2,451 ÷ $43,000
= 0.057
(b) Profit Margin = Net Profit ÷ Sales
= $990 ÷ $51,600
= 0.0192
(c) Operating Margin = Operating Profit ÷ Sales
= $2,451 ÷ $51,600
= 0.0475
(d) Dividends per share:
= Dividend paid to Shareholders ÷ Number of shares outstanding
= $346.67 ÷ $500
= 0.69334
(e) EPS:
= Net Income available to Shareholders ÷ Number of shares outstanding
= $990 ÷ $500
= $1.98
(f) P/E ratio = Market price per share ÷ EPS
= $23.7 ÷ 1.98
= 11.97
(g) Book value per share = Shareholders Equity ÷ Shares outstanding
= $15,265 ÷ $500
= $30.53
(h) Market-to-book ratio = Market Value per share ÷ Book value per share
= $23.7 ÷ $30.53
= 0.7763
(i) Equity Multiplier = Total Assets ÷ Shareholders Equity
= $43,000 ÷ $15,265
= 2.82
Osborn Manufacturing uses a predetermined overhead rate of $20.00 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $276,000 of total manufacturing overhead for an estimated activity level of 13,800 direct labor-hours. The company incurred actual total manufacturing overhead costs of $275,000 and 13,300 total direct labor-hours during the period.
1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.
2. Assuming that the entire amount of the underapplied or overapplied overhead is closed out to cost of goods sold, what would be the effect of the underapplied or overapplied overhead on the company's gross margin for the period?
Answer:
1. $9,000 under applied
2. Gross income decreases by $9,000
Explanation:
1. To compute the amount of under applied or over applied manufacturing overhead, first we have to determine the applied overhead which is shown below:
Applied overhead = Predetermined overhead rate × total direct labor-hours
= $20 × 13,300 direct labor hours
= $266,000
So, the amount would be
= Actual total manufacturing overhead costs - applied overhead
= $275,000 - $266,000
= $9,000 under applied
2. Since the manufacturing overhead is under applied which decreases the company gross margin for $9,000
Assume Walmart acquires a tract of land on January 1, 2009 for $100,000 cash.On December 31, 2009, the current market value of land is $150,000. On December 31, the current market value of land is $120,000. The firm sells the land on December 31, 2011 for $180,000 cash. Ignore income tax. Indicate the effects on the balance sheet and income statement of the preceding information for 2009, 2010, and 2011 under each of the following valuation methods (Part A-C). A. Valuation of the land at acquisition cost until sale of the land(Approach 1). B. Valuation of the land at current market value but including unrealized gains and losses in accumulated other comprehensive income until sale of land (Approach 2). C. Valuation of the land at current market value and including market value changes each year in net income (Approach 3). D. Why is retained earnings on December 31, 2011, equal to $80,000 in all three cases despite the reporting of different amount of net income each year?
Answer:
See abelownswers as explained
Explanation:
A)
In 2009,
Particular Amount($) Amount($)
Land A/c Dr. 100,000
To Cash A/c 100,000
In 2010,
No effect on Income Statement
In 2011,
Particular Amount($) Amount($)
Cash A/c Dr. 180,000
To Gain on Sale of land A/c 80,000
To land A/c 100,000
B)
For 2009,
Land to be shown in Balance Sheet as $150,000.
No effect on Income Statement.
Date Particular Amount($) Amount($)
1/1/2009 Land A/c Dr. 100,000
To Cash A/c 100,000
12/31/2009 Land A/c Dr. 50,000
To Unrealized Gain A/c 50,000
For 2010,
Particular Amount($) Amount($)
Unrealized Gain A/c Dr. 30,000
To land A/c 30,000
(Shown in Balance Sheet = $120,000)
For 2011,
Income Statement - Profit on Sale of Land = $80,000
Particular Amount($) Amount($)
Cash A/c Dr. 180,000
Unrealized Gain A/c Dr. 20,000
To land A/c 120,000
To Gain on Sale of land A/c 80,000
C)
For 2009,
Land shown in Balance Sheet = $150,000
Income Statement also increase by $50,000
Date Particular Amount($) Amount($)
1/1/2009 Land A/c Dr. 100,000
To Cash A/c 100,000
12/31/2009 Land A/c Dr. 50,000
To increase in market value of land A/c 50,000
For 2010,
Land shown in Balance Sheet = $120,000
Particular Amount($) Amount($)
Decrease in market value of land A/c Dr. 30,000
To land A/c 30,000
For 2011,
Particular Amount($) Amount($)
Cash A/c Dr. 180,000
To Land A/c 120,000
To Gain in sale of Land A/c 60,000
D. Earnings on December 31,2011 is equal to $80,000 in all the cases as retained earnings is the difference between sale value and acquisition cost. It has no effect on the retained earnings, if market prices go up and down. ,
acquisition cost is $100,000 and
Sale Value is $180,000.
amount of retained earnings is $180,000-100000
$80000
The valuation and accounting of land owned by Walmart will have different impacts on the financial statements under the three valuation methods, with retained earnings equaling $80,000 in all three cases due to the final sale price. The balance sheet and income statements are affected variably across the years, reflecting historic cost or market value adjustments depending on the approach taken.
The valuation and accounting of land for Walmart across different methods will have varying impacts on the balance sheet and income statement for the years 2009, 2010, and 2011. Under each valuation method, the effects on the balance sheet and income statement will differ as detailed below:
Approach 1 - Valuation of land at acquisition cost until sale of the land: The land remains on the balance sheet at the historical cost of $100,000 for all the years until it is sold. No effect on the income statement until 2011, when land is sold for $180,000, resulting in a gain of $80,000 in net income.Approach 2 - Valuation of land at current market value but including unrealized gains and losses in accumulated other comprehensive income until sale of land: The balance sheet reflects current market value changes, with equity increasing to $150,000 in 2009, decreasing to $120,000 in 2010, and then back to $150,000 in 2011. The income statement remains unaffected until the land is sold, showing an $80,000 gain.Approach 3 - Valuation of land at current market value and including market value changes each year in net income: The balance sheet reflects market value changes with corresponding entries in net income. There is a gain of $50,000 in net income in 2009, a loss of $30,000 in 2010, and a gain of $60,000 in 2011. Upon sale, an additional gain of $30,000 is recorded, matching the total sales price less the market value at the beginning of 2011.The reason retained earnings on December 31, 2011, would be equal to $80,000 in all three cases is because, regardless of when the gains or losses are realized or recognized, the total cash inflow from the sale of the land over the acquisition cost amounts to $80,000. This is the actual gain Walmart realized from the sale transaction, which ultimately is the amount added to retained earnings.
Wylie has been offered the choice of receiving $5,000 today or an agreed-upon amount in 1 year. While negotiating the future amount, Wylie notes that he would be willing to take no less than $5,700 if he has to wait a year. What is his TVOM in percent?
Answer:
=14%
Explanation:
TVOM represents the Time Value of Money and it represents the worth of an amount of money in present time as compared to its worth in the future. TVOM states that money's potential capacity to earn makes it worth money if received today than if it received in the future.
To calculate the Time Value of Money for Wylie, the following step is undertaken
Step 1: Calculate the difference between $5000 to be received today and the $5,700 Wylie demands as minimum to receive if he is to wait for 1 year
=$5,700 - $5000
=$700
Step 2: Use the formula for TVOM
TVOM= (Difference in value in one year's time /The present amount offered today) x 100
= ($700 /$5,000) / 100
=0.14 x100
=14%
Alternate calculation
Use this formula = P(1+r)= F
P= Present value
r= rate
F= Future value
=$5000 (1 +r) = $5,700
= (1+r)= $5700/$500
=(1+r) = 1.14
r= 1.14 - 1
= 0.14 or 14%
Based on the information given his TVOM in percent is 14%.
TVOM in percent:Using this formula
TVOM in percent=Amount willing to receive-Amount receive today/Amount receive today×100
Let plug in the formula
TVOM in percent==$5,700 - $5000/$5,000
TVOM in percent=$700/$5,000
TVOM in percent=0.14×100
TVOM in percent=14%
Inconclusion his TVOM in percent is 14%.
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West Corp. issued 25-year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
4.93%
Explanation:
We use the Rate formula shown in the spreadsheet for this question
The time period is represented in the NPER.
Provided that,
Present value = $1,000 × 105% = $1,050
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 5.3% ÷ 2 = $26.5
NPER = 25 years - 2 years = 23 years × 2 = 46 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the yield to maturity is 4.93%
Final answer:
To calculate the Yield to Maturity (YTM) of 25-year bonds issued by West Corp. with a coupon rate of 5.3%, and currently selling for 105% of par value, the process involves equating the bond's future cash flows to its current price through an iterative method, typically using financial calculators or software due to the complexity of the formula.
Explanation:
The question asks to calculate the Yield to Maturity (YTM) for West Corp.'s 25-year bonds, issued two years ago with a semiannual coupon rate of 5.3%, which currently sells for 105% of par value. To solve this, we'll need to conceptualize the bond's cash flows:
Coupon payments: These are semiannual and calculated as (5.3% of $1000) / 2 = $26.50 per period.Maturity value: The bond will pay $1000 at maturity.Current Bond Price: 105% of par value means the bond sells for $1050 now.Remaining periods: Since the bond was issued 2 years ago and it's a 25-year bond, there are 23 years left, or 46 periods (since payments are semiannual).To find the YTM, we need to input these figures into a financial calculator or an appropriate financial formula for YTM, which is typically solved through an iterative process or using financial software as it involves finding the interest rate that equates the present value of payments received from the bond to the current price of the bond.
Given the constraints of providing a step-by-step detailed solution without intermediate calculations or use of financial calculator outputs, it's key to understand the YTM conceptually as the interest rate that makes the net present value (NPV) of all bond's cash flows (both coupon payments and the repayment of the par value at maturity) equal to the bond's current price.
SnapShot Company, a commercial photography studio, has just completed its first full year of operations on December 31, 2015. General ledger account balances before year-end adjustments follow; no adjusting entries have been made to the accounts at any time during the year. Assume that all balances are normal.
Cash $2150
Prepaid rent $1,910
Supplies 3,800
Unearned photography fees 26,00
Common stock 24,000
Wages expense 11,000
Equipment 22,800
Utilities expense 3,420
An analysis of the firm's records discloses the following.
1. Photography services of $925 have been rendered, but customers have not yet paid or beern billed. The firm uses the account Fees Receivable to reflect amounts due but not yet billed.
2. Equipment, purchased January 1,2015, has an estimated life of 10 years.
3. Utilities expense for December is estimated to be $400, but the bill will not arrive or be paid until January of next year.
4. The balance in Prepaid Rent represents the amount paid on January 1,2015, for a 2-year lease on the studio.
5. In November, customers paid $2,600 cash in advance for photos to be taken for the holiday season. When received, these fees were credited to Unearned Photography Fees. By December 31, all of these fees are earned.
6. A 3-year insurance premium paid on January 1,2015, was debited to Prepaid Insurance.
7. Supplies available at December 31 are $1,520.
8. At December 31, wages expense of $375 has been incurred but not paid or recorded.
REQUIRED:
a. Prove that debits equal credits for SnapShot's unadjusted account balances by preparing its unadjusted trial balance at December 31, 2015.
b. Prepare its adjusting entries using the financial statement effects template.
c. Prepare its adjusting entries in journal entry form.
d. Set up T-accounts, enter the balances above, and post the adjusting entries to them.
can only add 5 attachments. the chart is missing
According to the given data of the Snapshot Company, the balance of unadjusted trial balance of debit(Dr.) and credit(Cr.) is $ 62990.
What do you mean by the unadjusted trial balance?
The general ledger account balances at the conclusion of a reporting period are listed in the unadjusted trial balance, which is done before any adjusting entries are made to the balances to produce financial statements.
Analysis of account balances and the creation of adjusting entries both begin with the unadjusted trial balance.
A list of all the business accounts that will show on the financial statements before year-end adjusting journal entries are made is called an unadjusted trial balance. This trial balance is referred to as unadjusted for that reason.
Here,
Calculation of Unadjusted Trial Balance are as follow:
Particulars Debit (Dr.) Credit (Cr.)
Cash 2150
Accounts Receivable 3800
Prepaid rent 12600
Prepaid insurance 2970
Supplies 4250
Equipment 22800
Accounts Payable 1910
Unearned Photography fees 2600
Common Stock 24000
Photography Fees Earned 34480
Wages Expenses 11000
utilities expenses 3420
Total 62990 62990
Therefore, according to the given data of the Snapshot Company, the balance of unadjusted trial balance of debit(Dr.) and credit(Cr.) is $ 62990.
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Company utilizes the LIFO retail inventory method. Its cost-to-retail percentage is 60% based on beginning inventory and 64% based on current-period purchases. The company determined that during the current period a new layer was added with retail value of $50,000. The new layer at cost should be_________.
Answer:
new layer at cost = $32000
Explanation:
given data
cost-to-retail percentage
beginning inventory = 60%
current period purchases = $50,000
retail value = $50,000
solution
we get her new layer at cost that should be here as
new layer at cost = retail value × current period purchases ......................1
put here value ans we will get
new layer at cost = $50,000 × 64%
new layer at cost = $32000
Consider the game in extensive form above. In the backward induction solution to this game Player 1 plays strategy and Player 2 plays strategy (Please, label Player 1's strategies by A, B, and C, and Player 2's strategies as df, dg, ef, and so forth)
Answer:
answer can be seen in the attached file
Explanation:
Consider the game in extensive form above. In the backward induction solution to this game Player 1 plays strategy and Player 2 plays strategy (Please, label Player 1's strategies by A, B, and C, and Player 2's strategies as df, dg, ef, and so forth)
What is Game Theory?
This is a mathematical modelling that deals with the analysis of strategies for dealing with competitive situations where the result of a participant's choice of action depends critically on the actions of other participants. Game theory has been applied to in war, business, and biology, sport.
In Game theory, outcome is dependent on the contributions of competing parties
Prepare a 2018 balance sheet for Rogers Corp. based on the following information: Cash $127,000; Patents and copyrights $660,000; Accounts payable $210,000; Accounts receivable - $115,000; Tangible net fixed assets - $1,610,000; Inventory $286,000; Notes payable $155,000; Accumulated retained earnings $1,368,000; Long-term debt $830,000. (Be sure to list the accounts in order of their liquidity. Do not round intermediate calculations.)
Answer:
Explanation:
The preparation of the balance sheet is presented below:
Rogers Corp
Balance sheet
Assets
Cash $127,000
Account receivable $115,000
Inventories $286,000
Tangible net fixed assets $1,610,000
Patents and copyrights $660,000
Total assets $2,798,000
Liabilities
Account payable $210,000
Notes payable $155,000
Long-term debt $830,000
Total liabilities $1,195,000
Common stock $235,000 (Balancing figure)
Accumulated retained earnings $1,368,000
Total liabilities and stockholder equity $2,798,000
The cash, account receivable and inventory are come under the current assets while the account payable and the notes payable are come under the current liabilities.
The 2018 balance sheet for Rogers Corp., lists current assets like cash, accounts receivable, and inventory, long-term assets, current liabilities, long-term debt, and shareholders' equity including retained earnings. Total assets should match the sum of liabilities and equity.
Rogers Corp. Balance Sheet for 2018:
To prepare the balance sheet for Rogers Corp. for the year 2018, we will list the assets in order of liquidity followed by liabilities, and equity. Assets include current assets such as cash, accounts receivable, and inventory, as well as long-term assets like net fixed assets and intangible assets like patents and copyrights. Liabilities include current liabilities and long-term liabilities like long-term debt. Lastly, we record the shareholders' equity section, which primarily consists of accumulated retained earnings.
Rogers Corp. Balance Sheet as of December 31, 2018
Current Assets:
Cash: $127,000
Accounts Receivable: $115,000
Inventory: $286,000
Non-Current Assets:
Tangible Net Fixed Assets: $1,610,000
Patents and Copyrights: $660,000
Total Assets: $2,798,000
Liabilities and Shareholders' Equity:
Current Liabilities:
Accounts Payable: $210,000
Notes Payable: $155,000
Long-Term Debt: $830,000
Total Liabilities: $1,195,000
Shareholders' Equity:
Accumulated Retained Earnings: $1,368,000
Total Shareholders' Equity: $1,368,000
Total Liabilities and Shareholders' Equity: $2,563,000
Note that total assets should equal the sum of total liabilities and shareholders' equity as per the accounting equation. However, there appears to be a discrepancy between total assets and the sum of liabilities and equity. It's important to reconcile this before finalizing the balance sheet.
_____ is the application of knowledge, skills, and techniques to project activities to meet project requirements. Select one: a. Project management b. Project pyramid c. Project literacy d. Project analysis
Explanation:
Project management,
symbolizes the initiation, planning, execution, controlling, and closure the work handled by a team to achieve defined targets is to meet specific success criteria at the given crucial time. The primary challenge is that we need to achieve the goals within the constraints.Also talks about budget, quality Have plans to face the crisisessential component of success is the teamworkForesee both risks and opportunitiesFrom a material perspective, which of the following contribute most to overall product cycle time?MRO WIP Finished SelectionsRaw
Answer: it's
B- WIP
E- RAW
Yard Designs (YD) experienced the following events in 2018, its first year of operation: On October 1, 2018, YD collected $54,000 for consulting services it agreed to provide during the next 12 months. Adjusted the accounts to reflect the amount of consulting service revenue recognized in 2018. Required Based on this information alone: Record the events under an accounting equation. Prepare an income statement, balance sheet, and statement of cash flows for the 2018 accounting period. Ignoring all other future events, what is the amount of service revenue that would be recognized in 2019?
Answer:
Explanation:
2018 Financial Statement
Income Statement :
Amount of recognized revenue = 3/12 * $54,000
Cr Income statement $13,500
Dr Cash/ Bank Account $13,500
Balance Sheet :
Dr. Bank Account -$54,000
Cr Retained earning -$13,500
Cr Deferred Income -$40,500
Statement of Cash Flow :
Cr Operating income $13,500
Cr Increase in payable(deferred income) $40,500
Revenue to Recognize in 2019
Cr Income Statement $40,500
Dr. Deferred Income $40,500
If Cassandra bought 12 blouses last year when her income was $46,000 and she buys 14 blouses this year when her income is $52,000, then her income elasticity of demand for blouses is approximately a.-2.52. ob. +1.26 c -0.80. d. -1.26. e. +0.80.
Answer:
b. +1.26
Explanation:
The computation of the income elasticity of demand is shown below:
= (Percentage Change in quantity demanded) ÷ (Percentage Change in income)
= (change in quantity demanded ÷ average of quantity demanded) ÷ (change in income ÷ average of income)
where,
Change in quantity demanded would be
= Q2 - Q1
= 14 blouses - 12 blouses
= 2 blouses
And, average of quantity demanded would be
= (12 + 14) ÷ 2
= 13
Change in income would be
= $52,000 - $46,000
= $6,000
And, average of income would be
= ($52,000 + $46,000) ÷ 2
= 49,000
So, after solving this, the income elasticity of demand is +1.26
The ________ environment consists of factors that affect consumer purchase ability and buying behavior.
Answer:
economic
Explanation:
Kate Company uses a perpetual inventory system.
Record the journal entries for the following transactions:
a. On July 16, Kate sold $1,200 of merchandise with terms of 2/10, n/30. The cost of the merchandise was $720.
b. On July 19, the customer returned $200 of the merchandise from (a). The cost of the merchandise was $120.
c. On July 22, the customer paid the entire balance due to Kate.
Answer:
The journal entries are as follows:
(a) On July 16,
Account receivable A/c Dr. $1,200
To sales revenue $1,200
(To record Sales)
Cost of goods sold A/c Dr. $720
To Inventory $720
(To record cost of goods sold)
(b) On July 19,
Sales return and allowance a/c Dr. $200
To Account receivable $200
(To record sales return)
Inventory A/c Dr. $120
To Cost of goods sold $120
(To record cost of goods return)
(c) On July 22,
Cash (1,000 × 98%) A/c Dr. $980
Sales discount A/c Dr. $20
To Account receivable $1,000
(To record amount received)
Final answer:
A detailed explanation of recording journal entries for sales, returns, and customer payment in a perpetual inventory system for Kate Company.
Explanation:
Journal Entries for Kate Company:
July 16: Debit Accounts Receivable $1,200, Credit Sales $1,200. Debit Cost of Goods Sold $720, Credit Inventory $720.July 19: Debit Sales Returns and Allowances $200, Credit Accounts Receivable $200. Debit Inventory $120, Credit Cost of Goods Sold $120.July 22: Debit Cash $1,176 ($1,200 - $24 discount), Credit Accounts Receivable $1,200, Debit Sales Discount $24.The management of a company prevents its employees from meeting in groups of three or more. Which of the following would best describe these restrictions imposed by the management? a. Legalb. Unethicalc. Illegald. Ethicale. Racist
Answer:
b. Unethical
Explanation:
It is unethical on the part of management to prevents its employees from meeting in groups of three or more.
Good business and accounting practices require the exercise of good judgment. How should ethics be incorporated into making accounting judgments? Why is ethics important?
Explanation:
Organizational ethics can be defined as a set of values, practices and principles that guide the company's actions and behaviors in the internal and external environment. A company's set of ethics must be shared by each employee, regardless of their hierarchical position in the company.
In commercial and accounting practices, ethics should be the basis for the conduct of professionals, since in this organizational area there is usually fraud in the statement of results, agreements and corruptions for the benefit of themselves and others.
Ethics must be implemented equally in every functional area of a company, as it positively or negatively impacts the organizational results and the attitude of employees. Through ethics as a fundamental principle of a company, it is possible to achieve several benefits, such as:
Improved results, Greater employee motivation, Improved communication, More market value.Ethics should be integrated into accounting practices by ensuring decisions are honest and fair, building trust in financial reporting. The Sarbanes-Oxley Act aims to enhance accountability, but fostering a culture of ethical behavior is key to sustainable ethical conduct.
Ethics in accounting practices is a critical aspect of professional conduct and decision-making. When making accounting judgments, it's essential to incorporate ethics by asking if the decisions are fair, honest, and transparent. This ethical framework is vital because it ensures trust and credibility in financial reporting, which is fundamental for stakeholders and the integrity of the financial markets. In light of scandals such as Enron and WorldCom, legislation such as the Sarbanes-Oxley Act was introduced to enhance corporate accountability. However, fostering a culture that promotes consistent ethical behavior and ethical decision-making on a daily basis is seen as a more sustainable approach to preventing unethical conduct.
Business ethics should be considered in everyday work decisions, analyzing the impact on various stakeholders and aligning with broader social, economic, and environmental responsibilities. This ongoing commitment to ethical practices, especially in the context of emerging technologies, poses challenges but also offers opportunities for companies to lead in ethical excellence. OB research suggests that an ethical company culture and commitment from leaders are more effective than rules alone in ensuring ethical conduct.
Atlarge Inc. owns 30% of the outstanding voting common stock of Ticker Co. and has the ability to significantly influence the investee’s operations and decision-making. On January 1, 2018, the balance in the Investment in Ticker Co. account was $402,000. Amortization associated with the purchase of this investment is $8,000 per year. During 2018, Ticker earned income of $108,000 and paid cash dividends of $36,000. Previously in 2010, Ticker had sold inventory costing $28,800 to Atlarge for $48,000. All but 25% of this merchandise was consumed by Atlarge during 2010. The remainder was used during the first few weeks of 2011. Additional sales were made to Atlarge in 2011; inventory costing $33,600 was transferred at a price of $60,000. Of this total, 40% was not consumed until 2012.
1. What amount of equity income would Atlarge have recognized in 2011 from its ownership interest in Ticker?
A. $19,792.
B. $27,640.
C. $22,672.
D. $24,400.
E. $21,748.
Answer:
Explanation:
2018 Beginning Balance = $402,000
2018 Income Recognized = $22,672
2018 Dividend Received = ($36,000 × 30%) = $10,800
2018 Ending Balance = ($402,000 + $22,672 - $10,800)
2018 Ending Balance = $413,872
Carson Morris worked two separate jobs for Horwath Company during the week. Job A consisted of 36 hours at $16.00 per hour; Job B entailed 14 hours at $17.50 per hour.
Determine his gross pay for that week if the employer uses the average rate basis for the overtime pay
Answer:
$903.10
Explanation:
Carson's average rate basis for the week is given by the weighted average of each rate by the number of hours worked:
[tex]R = \frac{16.00*36+17.50*14}{36+14}\\R=\$16.42[/tex]
When considering overtime pay, every hour worked over 40 weekly hours must be paid at a rate of 1.5 the normal rate. Since he worked 50 total hours, he should get 10 hours of overtime. His gross pay for that week is:
[tex]P=40*16.42+(1.5*10*16.42)\\P=\$903.10[/tex]
Carson's gross pay for that week is $903.10.
Explain how productivity, economic growth, and future standards of living are influenced by investment in factories, machinery, new
technology, and the health, education, and training of people.
Answer:
There is a direct relation of the productivity, economic growth, and future standards of living with the investment in factories, machinery, new technology, and the health, education, and training of people.
Explanation:
Relation with the investment in factories, machinery, new technologyIf there is larger investment in factories, machinery and new technology (fixed assets investing) then there will be more production which will require more labour. With more production, there will be more consumption thereby. The profits of the enterprises will increase and hence more taxes will be paid to the government, labour income in the economy will rise and hence there will be more consumption thereby. More taxes to the government will imply more public spending by the government.
So, saying all of that productivity, economic growth, and future standards of living will be in a much better place with the increase in fixed assets investing and vice-versa.
2. Relation with the investment in health, education, and training of people
With the increased investment in health, education and training, people would be able to work more and better. Thereby, implying higher incomes and productivity leading to more economic growth and ultimately better future standards of living.
Kaylor Equipment Rental paid $75 in dividends and $511 in interest expense. The addition to retained earnings is $418 and net new equity is $500. The tax rate is 35 percent. Sales are $15,900 and depreciation is $680. What are the earnings before interest and taxes?
Answer:
$1,269.46
Explanation:
Earnings Before Interest and Tax (EBIT) refers to the net income which is a difference between the revenue of an organisation and the expenses that were incurred in order to generate that revenue. The calculation of the EBIT is usually for a particular year and it is usually found in the Income Statement part of an organisation's financial statement.
To calculate the EBIT therefore, the Tax as well as interest must be added back to the Net Income after tax (usually added to retained earnings)
Therefore, Net Income = Dividends paid + Net Income (added to retained earnings)
= $75 + $418 = $493 - This represents a partial net income
The next step is to calculate the taxable income as follows:
The net income is $493, and the Tax rate is 35%
Taxable Income = $493/ (1-0.35) = $758.46
Earnings before interest and tax therefore =
Interest paid + Taxable Income
= $511 + $758.46 = $1,269.46