The correct statement is that the closing balance of shareholder's equity in the books of Jay Co. will be $327,300.
The computation of the total stockholder's equity can be calculated by adding any incomes to the opening balances and deduction of reissued securities.
Computation of total stockholder's equities (Closing Balance)Computation is done after applying the given values to the known formula and necessary adjustments to be made, if any. Here the closing stock will be, [tex]\$105000+ $24000= \$29000[/tex]As no information regarding the treasury stock is given, it has been assumed that no treasury stock transactions took place. So in this case, the formula to calculate the closing balance of stockholder's equities will be, [tex]\rm Closing\ Balance = Closing\ Stock + Closing\ Retained\ Earnings[/tex]To calculate the closing balance of retained earnings, doing the following calculations, [tex]\rm Earnings = Balance\ at\ the\ Beginning + Net\ Income- Dividend\\\\\rm Earnings =175400+33400-10500\\\\\rm Earnings =\$ 198300[/tex]Now putting the obtained values into the formula above, we get, [tex]\rm Closing\ Balance= 129000+198300\\\\\rm Closing\ Balance=\$327,300[/tex]So the closing balance of the total stockholder's equities in the hands of Jay Co. will be $327,300.Hence, the total stockholder's equities at the end of the year in the books of Jay Co. is $327,300.
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In a(n) _____ policy approach, a company that collects information does not use the information for any other purpose unless the customer specifically chooses to allow that use.
Answer:
Opt in
Explanation:
Opt in policy approach, is the kind of approach in which the policy is sets out in order to ensure the consistent application and the understanding of the firm or company opt in approach for communication with the individuals.
In short, it is defined as the permission expressed by the company or the firm, which gathers or collect the information , does not use the information for any other motive unless the client or the customer specially chooses or opt to allow for using the information.
(Evaluating liquidity) The Tabor Sales Company had a gross profit margin (gross profits divided by ÷sales) of 30.4 percent and sales of $9.2 million last year. Seventy-five percent of thefirm's sales are on credit and the remainder are cash sales.Tabor's current assets equal $2.1 million, its current liabilities equal $319,000, and it has $99,000 in cash plus marketable securities.
a. If Tabor's accounts receivable are $562,500, what is its average collection period?
b. If Tabor reduces its average collection period to 19 days, what will be its new level of accounts receivable?
c. Tabor's inventory turnover ratio is 9.5 times. What is the level of Tabor's inventories?
Answer:
Explanation:
Credit sales = 75% * $9.2 million =$6.9m
(a) Average collection period = (Accounts receivables/Credit sales) * 365 days
= (562,500/6,900,000) * 365
=29.76 days
≅ 30 days
(b) New level of accounts receivables after reducing collection period to 19 days
= (19/365 ) * 6,900,000
= $359,178
(c) Gross profit = 30.4% * $9.2 million
= $2,796,800
Cost of Sales = $ 9,200,000- $2,796,800
= $6,403,200
Inventory Turnover ratio = Cost of goods sold/Average stock
Hence, Inventories level (i.e Average stock) = 6,403,200/9.5
=$674,021
Draw an entity-relationship diagram that describes the following business environment.
Orlando Junior Baseball wants to maintain information about its teams, their coaches, players, and bats. The information about players is historic. For each team, the league wants to keep track of all of the players who have ever played on the team, including the current players. For each player, it wants to know about the player's name, age, and every team the player ever played for. Currently and historically, each team has and has had many players. To be of interest to the league, a player must have played on at least one and possibly many teams during his career. The league wants to keep track of each team's team number, which is unique, its name, the city in which it is based, and the name of its manager. Coaches have a name (which is o number. Coaches have units of wor experience and the number of years of that type of experienc team. A team has at least one and usually several coaches. nly assumed to be unique within its team) and a telephone rk experience, which are described by the type of e. A coach works for only one
Answer:
See the explanation
Explanation:
The Entity-Relationship is a diagramming technique used for data modeling.
A relationship is the way in which different entities are associated with each other.
The entity-relationship diagram that describes the business environment is shown in the attached image.
Hope this helps!
Bristol Car Service offers airport service in a mid-size city. Bristol charges $56 per trip to or from the airport. The variable cost for a trip totals $30, for fuel, driver, and so on. The monthly fixed cost for Bristol Rainbow Tours is $7, 280. How many trips must Bristol sell every month to break even? Break-even point trips Bristol's owner believes that 300 trips is a reasonable forecast of the average monthly demand. What is the margin of safety in terms of the number of airport trips? Margin of safety trips
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Bristol charges $56 per trip
The variable cost= $30
The monthly fixed cost= $7, 280.
To calculate the break-even point we need to use the following formula:
Break-even point= fixed costs/ contribution margin
Break-even point= 7,280 / (56 - 30)= 280 trips
Margin of safety= (current sales level - break-even point)
Margin of safety= 300 - 280= 20 trips
Final answer:
To calculate the breakeven point for Bristol Car Service and understand the margin of safety in terms of airport trips.
Explanation:
Breakeven: The breakeven point for Bristol Car Service can be calculated by dividing the total fixed costs by the contribution margin per trip. With a fixed cost of $7,280, a contribution margin of $26 per trip, Bristol needs to sell 280 trips to break even.
Margin of safety: The margin of safety is the amount by which sales exceed the breakeven point. If Bristol sells 300 trips, the margin of safety in terms of the number of airport trips is 20 trips.
Which of the following is the best problem statement for this situation? a. You need to replace the QueVision system equipment for your store in order to achieve an acceptable average checkout time. b. You need to replace the store’s QueVision system and retrain your baggers and cashiers to provide faster checkout service. c. The QueVision system in your store has determined average checkout time is excessive, resulting in poor customer service and upsetting baggers and cashiers, which could lead to a loss of customers and employees. d. Your store needs to cut its average checkout time by at least five and one-half minutes.
Answer:
'The QueVision system in your store has determined average checkout time is excessive, resulting in poor customer service and upsetting baggers and cashiers, which could lead to a loss of customers and employees' is the best problem statement for the given situation.
Explanation:
The problem statement should not just limit itself to enumerating the problem that is existent in the operation or the system but should also try to exhibit the intensity of the problem and the probable loss being caused by it. The given problem statement is not only elaborating the problem, but is also giving out information on how much would it cost to the organization of the problem is not taken seriously.Final answer:
The best problem statement is option c, which describes the consequences of excessive checkout times on customer service and employee satisfaction, potentially leading to the loss of both customers and employees.
Explanation:
The most effective problem statement for the situation described is the QueVision system in your store has determined average checkout time is excessive, resulting in poor customer service and upsetting baggers and cashiers, which could lead to a loss of customers and employees.
This option comprehensively details not only the issue with the QueVision system but also the consequences that stem from the issue such as impact on customer service and employee satisfaction. It also hints at the potential business implications including the loss of customers and staff which could affect the store's bottom line.
Kathy Brooks is a franchisee who wishes to donate her old HRB workstations and server to a local charity for a fundraising auction.
What should Kathy do to make sure she is in compliance with HR Block Information Security Compliance?
A) Kathy can donate the equipment as she wishes since she paid for them.
B) Kathy should contact Incident Management to get further information about the Hardware Disposal policy before proceeding.
C) Procedures for removing and eliminating Confidential Information from hardware are available by contacting the Technical Service Center at 800-767-3346
D) Both B and C are correct
E) None of the above
answer: B) Kathy should contact Incident Management to get further information about the Hardware Disposal policy before proceeding.
Explanation:
"Which of the following is the reason behind the slow growth in U.S. incomes during the 1970s and 1980s a. unstable economic conditions in Eastern Europe.b. increased competition from abroad.c. a decline in the rate of increase in U.S. productivity.d. a strong U.S. dollar abroad, hurting U.S. exports.
Answer:
A. Decline in the rate of increase in U.S. productivity.
Explanation: The Economic policies of the 1970s and 1980s led to reduced U.S. productivity,the production levels dropped drastically as a result of TAX CUTS for high income earners which was approved for the Rich by the Government.
Heavy Interest rate for the supply of Goods and services caused many industries to fold up,due to the high cost of Borrowing for the purchase of raw materials and other equipments and required. These factors were thought to be stimulants for the Economy but they all eventually adversely affected the United States Economy.
Answer:
Correct answer is (c) a decline in the rate of increase in U.S. productivity.
Explanation:
During the period, there was a slowdown in productivity level in U.S and as it known that the rate of productivity determine the standard of living of any nation. The U.S economy primarily depends on company output and as a slowing down in their productivity level, the growth also slow down.
Beyer Company is considering the purchase of an asset for $215,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Assume that Beyer requires a 12% return on its investments. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net cash flows $77,000 $ 54,000 $ 82,000 $ 172,000 $ 38,000 $ 423,000
a. Compute the net present value of this investment.
b. Should Beyer accept the investment?
Answer:
a) Net present value of investment = $86,036
b) Since the Net present value is positive thus, Beyer should accept the investment
Explanation:
Data provided in the question:
Cost of the asset = $215,000
Rate of return = 12% = 0.12
Now,
Present Value of Net Cash Flows = Net cash flow × Present value factor
also,
Present value factor = (1 + rate)⁻ⁿ
here,
n is the year
thus,
Year 1 Net cash flows Present value factor Present value
1 77,000 0.89286 68,750
2 54,000 0.79719 43,048
3 82,000 0.71178 58,366
4 172,000 0.63552 109,309
5 38,000 0.56743 21,562
Total 423,000 301,036
a) Net present value of investment = Total present value - Amount invested
= 301,036 - 215,000
= $86,036
b) Since the Net present value is positive thus, Beyer should accept the investment
When applying simulation to a business problem, which of the following would commonly be an uncertain variable cell?
a. The total profit.
b. The holding cost per unit.
c. The demand.
d. All of the above.
e. None of the above.
The Demand would commonly be an uncertain variable cell
Explanation:
Consumer demand is a catalyst for retail sales. In turn, production and delivery to distributors must continue for suppliers and distributors. The lack of an adequate inventory to satisfy consumer demand is an important business issue with several symptoms.
The first major problem with inadequate inventory to meet demand is revenue failure.
In the long run, the depletion of consumers is a major concern not to meet consumer demand.
When you have unhappy customers on the street you have poor word of mouth ads. Although the issues in the company carry more weight, failure to meet consumer demand has several other economic effects.
For a client, realising a commodity you want is not available is disappointing.
Kooky Cookies Corporation purchased the Crazy Cookie Company. Although this was initially an acquisition, the merging of these two businesses was a ____________ merger. Kooky Cookies went on to purchase several baking product companies. Joining forces with some of its suppliers would represent a _____________ merger.
Multiple Choice:A. conglomerate; horizontalB. vertical; horizontalC. horizontal; verticalD. conglomerate; conglomerate
Answer: horizontal; vertical
Explanation:
Horizontal merger is the merger of two companies competing in the same industry offering same kind of good and vertical merger is the merger of two companies involved in producing the same good at different stages of production. Conglomerate merger is the merger between companies that do not offer same product. The merger between Kooky Cookies Corporation and Crazy Cookie Company would be a horizontal merger as both the companies offer the similar product to same kind of customers. When Kooky Cookies purchase baking product companies, it would be a vertical merger as both the companies are involved in the production of cookies at different production levels.
Answer:
Horizontal merger
Vertical merger
Explanation:
Randy Guerrero wants to buy a home in Atherton, California, where the price of an average house is over $1 million. He is saving his money by not going on vacations, keeping his old car, and minimizing all other expenses. As a result, he has $300,000 in the bank, and he will soon have a healthy 40% down payment for his new home.
a. self management
b. relationship management
c. social awareness
d. self awareness
Answer:
a. self management
Explanation:
Self management -
It is the method by which the human being , manage his or her work , task , goal and expenses , in order to complete the activity on time , is referred to as self management .
This process enables to accomplish the goal with proper strategy and plan .
Hence , from the question,
Randy collects amount for his new home by saving from his income , showing the method of self management.
Randy Guerrero is demonstrating self-management by taking actions such as not going on vacations, keeping his old car, and minimizing all other expenses to save money for a down payment on a house.
Explanation:The scenario presented appears to be concerned with self-management. Self-management is all about being responsible for your behavior and well-being. Here, Randy Guerrero is practicing self-management by saving money from various aspects of his life to afford a down payment on a home in Atherton, California. He's making sacrifices, such as not going on vacations, keeping his old car, and minimizing all other expenses to maximize his savings. These decisions demonstrate prudent self-control and goal-setting, key characteristics of effective self-management.
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Simon, a C corporation, had a deficit in accumulated earnings and profits of $50,000 at the beginning of the year and had current earnings and profits of $10,000. At year end, Simon paid a dividend of $15,000 to its sole shareholder. What amount of the dividend is reported as income? a. $0 b. $5,000 c. $10,000 d. $15,000
Answer: The answer is $10,000
Explanation:
Dividend is the portion of a business earnings or reserves that is paid to shareholders. This is usually paid on a yearly basis.
When dividends are paid it first comes out of the current earnings (in this case $10,000).
The excess of the dividend payment (that is $5,000) will be reduced from the sole shareholder's stock in the company, since he is the sole owner of the company.
Answer:
c. $10,000
Explanation:
Dividends are distributed out of the its earnings and profits and hence if current earnings and profits is positive and accumulated earnings and profits is negative, dividends can be distributed only to the extent of current earnings and profits.
Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $27,500 and the ending balance was $51,000. Raw materials purchases during the month totaled $78,000. Manufacturing overhead cost incurred during the month was $118,500, of which $3,500 consisted of raw materials classified as indirect materials. The direct materials cost for May was: a) $78,000 b) $54,500 c) $101,500 d) $51,000
Answer:
b) $54,500
Explanation:
Beginning balance of raw material = $27,500
Ending balance was = $51,000
Purchases = $78,000
Direct cost of raw material is the net of the addition of the opening balance of raw materials and purchases less the closing balance. The manufacturing overhead cost is a mix of all the indirect cost incurred during production.
As such, the manufacturing overhead cost of $118,500 consisting of $3,500 consisted of raw materials would not be considered in determining the direct raw material cost.
Direct cost of raw material = $27,500 + $78,000 - $51,000
= $54,500
Assume the Macro Islands can produce 25 fishing boats or 150 jars of guava jelly in one hour. The Micro Islands can produce 30 fishing boats or 300 jars of guava jelly in the same time period. The opportunity cost of producing 1 fishing boat in the Micro Islands is
Answer:
10 jars of guava jelly.
Explanation:
The value or benefit that was forgone or given up when a choice is made between two alternatives is what we referred to as opportunity cost. In economics, it is called alternative forgone or real cost.
The formula for opportunity cost is given below
Opportunity cost = Value of alternative forgone/Value of alternative choosing
Value of alternative forgone = 300 jars of guava jelly
Value of alternative choosing = 30 fishing boats
Opportunity cost = 300/30
Opportunity cost = 10 jars of guava jelly.
Therefore the opportunity cost of producing 1 fishing boat in the Micro Islands is 10 jars of guava jelly.
An increase in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine that cuts and stacks trees. Does this affect the GDP deflator or CPI for U.S.?
Answer: IT WILL AFFECT THE GDP DEFLATOR
Explanation: GDP DEFLATOR is a term used to describe the total change in price of all goods produced within an Economy,an increase in the price of the Tree wood equipment will only affect the GDP DEFLATOR.
GDP DEFLATOR shows the changes in a country's GDP as price level changes.
CPI ( Consumer price index) is the weighted average price of a basket of consumer goods sold within an Economy such as food,clothing, transportation etc.
It doesn't deal with commercial products like the TREEWOOD EQUIPMENT.
The supply in thousands of items, for custom phone cases can be modeled by the equation p= 75+8x , while demand can be while the demand can be modeled by p=190-15x, where p is in dollars. Find the equilibrium price and quantity, the intersection of the supply and demand curves.
Answer:
At equilibrium, the market demand of custom phone cases will be equal to the market supply of custom phone cases.
Market demand function -
p = 190 - 15x, where p is the price and x is the quantity of goods
Market supply function -
p = 75 + 8x
Thus, at equilibrium the market demand function will be equal to market supply function.
Hence,
190 - 15x = 75 + 8x
23x = 190-75
23x = 115
x = 5 units
Substituting the value of x in market supply function, we get -
p = 75 + 8 * 5
= 75 + 40 = $ 115
Hence, equilibrium quantity and price are 5 units and $ 115 respectively.
Thus, at ( 5 , 115 ) the market demand and supply curves of Custom phone cases will intersect each other.
Explanation:
Refer to the answer.
Employees should always be notified in advance that a penetration test is going to be performed. T/F
Answer:
The statement is: False.
Explanation:
A penetration test consists of a series of test attacks against defense mechanisms existing in an environment that is being analyzed. These tests include the analysis of physical and digital devices to human factors using Social Engineering for that purpose.
Thus, these tests must be carried out without prior notice to employees so the evaluators can simulate what is the real defense and reaction the organization has in front of a threat.
A fast-food restaurant has a drive-through window and during peak lunch times can handle a maximum of 50 cars per hour with one person taking orders, assembling them, and acting as cashier. The average sale per order is $9.00. A proposal has been made to add two workers and divide the tasks among the three. One will take orders, the second will assemble them, and the third will act as cashier. With this system, it is estimated that 70 cars per hour can be serviced.
Use productivity arguments to recommend whether to change the current system.
Answer:
The answer is; I do not recommend the change of current system
Explanation:
The productivity of one person taking orders, assembling them, and acting as cashier is higher than that of 3 people.
The time frame is the same for both systems (1 hour), productivity is illustrated below;
Cars serviced by 1 person in existing system =50/1 = 50
Cars serviced by 1 person in 3 employee system =70/3= 23.33
The system should not be changed.
Final answer:
Adding two workers to divide tasks is proposed to increase a fast-food restaurant's service rate from 50 to 70 cars per hour. Productivity arguments support this change if the additional sales revenue surpasses the labor costs.
Explanation:
At present, the restaurant services 50 cars per hour with a single worker handling all tasks and an average sale of $9.00 per order. A proposal suggests that by adding two additional workers and dividing the tasks among three individuals, the result would be servicing 70 cars per hour. To evaluate this proposal, one must consider the changes in productivity and potential increase in revenue.
When we calculate the output per worker, we find that currently, with one worker, the restaurant handles 50 cars, resulting in $450 of revenue per hour. With the proposed change, three workers would handle 70 cars, generating $630 of revenue per hour. This increase in productivity could justify the additional costs of hiring two more workers. Moreover, similar to how advances in automation have allowed the food service industry to increase productivity, appropriately dividing labor among specialized workers can also contribute to efficiency gains.
An advantage of mass production is its ability to adapt quickly to changes in demand.
Answer:
The statement is: False.
Explanation:
One of the main disadvantages of mass production is the fact that it requires a large number of production units and processes. As the output increases, more labor hand and organizational management are requested. Thus, in front of sudden market changes, it will be harder for such manufacturing companies to adapt.
Which of the followin is NOT a reason why the required return on a bond may differ form its par value?
A. The required rate of return is less than the coupon value, so the bond sells at a premium.
B. The required rate of return is exceeds the coupon value, so the bond sells below par value.
C. The required rate of return exceeds the coupon value, so the bonds sells at a premium
D. The required rate of return is less than the coupon value, so the bond sells at above par value
Answer:
C. The required rate of return exceeds the coupon value, so the bonds sells at a premium
Explanation:
The required return on a bond = Yield to maturity (Current Market interest rate) * Bond Par value.
Coupon return = Coupon rate of bond * Par value of bond.
There are two types of returns on bonds-
(1) Required rate of return (Yield to maturity related)
(2) Return from capital gain
If the Yield to maturity (YTM) related return is higher than the coupon return, then return from capital gain will be negative i.e. there will be a capital loss, so the bond will trade below par value (at discount).
If the Yield to maturity (YTM) related return is lower than the coupon return, then return from capital gain will be positive i.e. there will be a capital gain, so the bond will trade above par value (at premium).
Hence, the required return rate (YTM related) and return from capital gain, both cancel out each other in a bond.
So, following the concept only option (c) - the required rate of return exceeds the coupon value, so the bonds sells at a premium is not a reason of why the required return on a bond may differ form its par value.
With yearly inflation of 5%, prices are given by P=P0(1.05)t, where P0 is the price in dollars when t=0 and t is time in years. Suppose P0=1. How fast (in cents/year) are prices rising when t=10? Round your answer to two decimal places.
Answer:
0.07947
Explanation:
Given that
P=P0(1.05)t
where
P0 represents the price in dollars
Plus P0 = 1
T = time = 10 years
So the equation is
P = 1(1.05)^10
The formula is shown below:
[tex]\frac{d(a^x)}{dx}=a^x\log a[/tex]
[tex]\frac{d(P)}{dt}=\frac{d(1.05)^t}{dt}=1.05^t\ln (1.05)[/tex]
[tex]\frac{d(P)}{dt}=\frac{d(1.05)^{10}}{dt}=1.05^{10}\ln (1.05)[/tex]
After solving this, the value is 0.07947
__________ is a part of the HR planning process that refers to identifying and examining the organization’s external environment in order to anticipate and identify positive or negative factors that might influence the organization
Answer:
The correct answer is letter "D": Environmental scanning.
Explanation:
Environmental scanning involves the set of acts companies take to study the events happening inside and outside the firm so the impact of those actions can be measured. Environmental scanning is important for every organization since the environment both internal and external of the company is rapidly changing and by measuring those changes, firms can create contingency plans to keep on track pursuing their objectives.
State whether the following actions will increase or decrease GDP: a. An individual sells her house on her own. b. An individual sells his house through a broker. c. Government increases Social Security payments. d. Stock prices rise by 20 percent.
Answer:
a. An individual sells her house on her own.
GDP is not affected.
b. An individual sells his house through a broker.
GDP is not affected.
c. Government increases Social Security payments.
GDP is not affected.
d. Stock prices rise by 20 percent.
GDP will increase.
Explanation:
Selling a house by an individual does not affect the Gross Domestic Product of a Country.
Selling a house by a broker will also not affect the Gross Domestic Product of a Country.
When a Government increases the social security payments, this result in transfer of money from government to social security account but it does not generate any goods are services in the country.
When the stock prices increases in the country, there is more likely that the individuals will invest in the stocks. So investments will increase and thus GDP will rise.
Selling a house through a broker and increasing Social Security payments will increase GDP, while selling a house on one's own and a rise in stock prices may not directly impact GDP.
Explanation:To determine whether the actions will increase or decrease GDP, we need to understand how each action affects the components of GDP.
Selling a house on one's own does not directly affect GDP as it is considered a transfer of assets. So, it will not increase or decrease GDP.Selling a house through a broker will count as a transaction in the real estate market, contributing to GDP. Therefore, it will increase GDP.When the government increases Social Security payments, it injects more money into the economy, increasing consumption, and potentially investment. This increase in government spending will increase GDP.When stock prices rise, individuals holding stocks experience an increase in wealth. This can lead to increased consumer spending, which will increase GDP.Sunland Company purchased machinery on January 1, 2020, for $90,400. The machinery is estimated to have a salvage value of $9,040 after a useful life of 8 years.
Compute 2020 depreciation expense using the double-declining-balance method.
Depreciation expense $________
Compute 2020 depreciation expense using the double-declining-balance method, assuming the machinery was purchased on October 1, 2020. (Round answer to 0 decimal places, e.g. 5,125.)
Depreciation expense $________
Answer:
$22,600; $5,650
Explanation:
Double-declining-balance method rate:
= (100% ÷ No. of years of life of assets ) × 2
= (100% ÷ 8) × 2
= 25%
1. 2020 depreciation expense:
= Assets cost × Depreciation rate
= $90,400 × 25%
= $22,600
2. 2020 depreciation expense:
= Assets cost × Depreciation rate
= $90,400 × 25% × 3/12
= $5,650
The 2020 depreciation expense for the Sunland Company's machinery using the double-declining-balance method is $22,600 for a full year and $5,650 if the machinery was purchased on October 1, 2020.
To calculate the 2020 depreciation expense using the double-declining-balance method, you first determine the straight-line depreciation rate, which is 1 divided by the useful life of the asset. In this case, it's 1/8, or 12.5%. The double-declining-balance method is twice the straight-line rate, so 12.5% x 2 equals 25%. Apply this rate to the asset's beginning book value, which is $90,400, to get the first year's depreciation expense, which is $90,400 x 25% = $22,600.
If the machinery was purchased on October 1, 2020, only 3 months of depreciation should be accounted for in 2020. Therefore, the annual depreciation should be prorated for the number of months in use. $22,600 of annual depreciation is prorated for 3 months by dividing by 12 and then multiplying by 3, yielding a depreciation expense of $5,650 for 2020 when purchased on October 1, 2020.
From a purely economic point of view, should the government impose price floors on wages, otherwise known as a minimum wage? What are the pros and cons of doing so, and do the pros outweigh the cons or do the cons outweigh the pros? Explain.
Answer:
Pros: People searching for job opportunities: 1. Can feel secure of obtaining a wage that is enough to live with dignity. 2. Standardize the negotiation across all labor markets, making it easy to contract workers at minimum wage. Cons: 1. The allocation of resources by market mechanism won't work for low range salary jobs. This can create inefficiencies like the supply of work (unemployed workers) not hired. 2. Levels of production not matching the demand in certain levels (the minimum price of a product is higher than a scenario where not regulated wages). 3. If the productivity of the job position is below of the cost, the employer won't be able to produce at all.
Explanation:
In order to assess if the pros outweigh the cons we need to have specific market situations. Per example, in countries where the average productivity per worker is higher than the minimum wage in the majority of labor markets, the pros outweigh the cons. In countries where productivity per worker is lower than minimum wage, is expected to see high levels of unemployment and distortion in the price of factors, putting pressure in other economic variables. In this scenario, the pros not outweigh the cons.
The government's imposition of a minimum wage, or price floor on wages, aims to ensure a living wage for employees but can lead to higher unemployment. The balance of pros and cons depends on how such a price floor impacts the labor market and whether it significantly affects employment levels.
From a purely economic point of view, the imposition of a price floor on wages, known as a minimum wage, is designed to ensure workers are paid enough to meet their basic needs. This economic policy has both benefits and drawbacks. Pros include the assurance that workers earn a living wage, potentially reducing poverty and bolstering consumer spending, which in turn can drive economic growth. Cons, on the other hand, include the potential for higher unemployment as employers may hire fewer workers due to increased labor costs, and the possibility of giving rise to uncompetitive business environments.
One of the key arguments for minimum wage laws is that they increase the purchasing power of low-income workers. The intention is that with higher wages, workers will be better able to support themselves and their families. However, if the price floor is set too high, it can lead to an excess supply of labor (unemployment) if employers cut back on hiring. Therefore, governments aim to balance the desire to increase wages with the potential negative impact on employment levels.
In assessing whether the pros outweigh the cons, much depends on the market conditions and the responsiveness of supply and demand to changes in wages. A price floor that does not create a substantial excess supply of labor may seem justifiable, but if it creates significant unemployment, the cons may outweigh the pros. Therefore, much of the disagreement about the implementation of a minimum wage comes from varying perspectives on its impacts on unemployment and the overall economy.
Given the following data: Return on investment 35% Turnover 2.8 Margin 10% Sales $280,000 Average operating assets $80,000 Minimum required rate of return 20% The residual income would be:
Answer:
Residual income = $12000
Explanation:
given data
Return on investment = 35%
Turnover = 2.8
Margin = 10%
Sales = $280,000
Average operating assets = $80,000
Minimum required rate of return = 20%
solution
first we get here total Investment that is
Investment = Sales × [tex]\frac{margine}{return}[/tex] ...............1
Investment = $280,000 × [tex]\frac{10}{35}[/tex]
Investment = $80000
and now we get Residual income that is express as
Residual income = Sales × Margin - Investment × Minimum required rate of return ...................2
Residual income = $280,000 × 10% - $80000 ×20%
Residual income = $12000
You purchase 750 shares of 2nd Chance Co. stock on margin at a price of $44. Your broker requires you to deposit $17,500. What is your margin loan amount? What is your margin requirement in percentage terms?
Answer:
Part A:
Margin Loan mount= $15500
Part B:
Margin requirement in percentage= 53.03%
Explanation:
Part A:
Formula:
[tex]Margin\ loan\ amount=(stock\ price*Shares)-Deposit[/tex]
In our case:
Stock Price=$44
Shares=750 shares
Deposit=$17,500
[tex]Margin\ loan\ amount=(\$44*750\ Shares)-\$17500\\Margin\ loan\ amount=\$15500[/tex]
Part B:
Formula:
[tex]Margin\ Requirement=\frac{ Deposit}{(stock\ price*Shares)}[/tex]
In our case:
Stock Price=$44
Shares=750 shares
Deposit=$17,500
[tex]Margin\ Requirement=\frac{\$17500}{(\$44*750)}\\Margin\ Requirement=0.5303[/tex]
In Percentage:
Margin requirement in percentage=[tex]0.5303*100=53.03\%[/tex]
Answer:
Purchase price of 750 shares of 2nd Chance Co. stock = 750 * Price of a stock
= 750 * $ 44
= $ 33,000
Hence, Margin loan amount = Purchase price of stock - Deposit required by broker to purchase the 2nd Chance Co. shares
= $ 33,000 - $ 17,500
= $ 15,500
Hence, Margin loan requirement in % = Margin loan amount / Purchase price of stock
= $ 15,500 / $ 33,000
=0.4696 = 47% (Approx.)
Explanation:
Refer to the answer.
Cost Data for Managerial Purposes
As an analyst at Delta Airlines, you are asked to help the operations staff. Operations has identied a new method of
loading baggage that is expected to result in a 30 percent reduction in labor time but no changes in any other costs. The
current labor cost to load bags is $2 per bag. Other costs are $1 per bag.
Required
a. What differential costs should the operations staff consider for the decision to use the new method next year? What
would be the cost savings per bag using it?
b. Describe how management would use the information in requirement ( a ) and any other appropriate information to
proceed with the contemplated use of the new baggage loading method.
Answer:
Explanation:
First of all, we should understand the problem.
A new method of loading baggage is supposed to reduce labor time by 30%, with other costs unchanged. This means that the cost to load bags will be reduced by 30%, other costs will remain the same 1 dollar per bag.
Differential cost is a cost which changes in response to a given cause of action. In this case, labor labor time is being reduced, Therefore, it is considered as differential cost.
If 30% is deducted from labor time, the labor cost to load bags will be reduced to $2*(1-0.3) = $2 - $0.6 = $1.4
Cost savings per bag would be:
$2 - $1.4 = $0.6 (a)
(b):
Management would use the knowledge of cost savings to decide whether or not to implement the new method.
All of the following are examples of place advertising EXCEPT _____. a. billboards and bulletins b. transit ads c. shopping cart ads d. posters e. cinema ads
Explanation:
Billboards and bulletins:
Theses are the most impact way of advertising. These are normally huge and kept in vehicular traffic to attract customers.
Transit ads:
In simple terms, transit ads are the advertisement posted or hanged on the moving vehicles ie. in the side or back of bus, van, etc to advertise and attract customer.
shopping cart ads:
Advertisement that are pasted on the shopping cart
posters:
These are large printed pictures
cinema ads:
Advertisement which are played in the cinema theater To attract customer through a big screen.Shopping Ads is not an example of place advertising because it is an In-house advert.
A place advertising refers to a type of advertisement done through creative and unexpected forms in other to grab the potential consumer's attention.
Billboards and bulletins are very good example of place advertising, usually huge and kept in vehicular traffic to attract customers.
The Transit ads are hanged on a moving vehicles to advertise and attract customer.
Posters are like billboard and intends to attract customers.
In conclusion, the Correct Option is Shopping Ads because it is an In-house advert.
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In Fine Fettle is considering three different options for selling its new product:
a. warehouse clubs,
b. supermarkets, and
c. high-end health food markets.
Explanation:
warehouse club sell items in bulk and offer limited choices in each product category.
high end health food market carry only health food product in a boutique like setting