Answer:
The correct answer is letter "D": political and legal.
Explanation:
Managers should not be discouraged in front of new legislation. In fact, new laws setting boundaries on businesses can be detrimental for those companies but immediately after the regulations are enacted, firms should find out if the political environment of that law has grey areas that help companies to surpass them.
Besides, the social environment where the firm operates can offer companies other opportunities for the fir to grow. Research must be meticulously conducted under this scenario to find out new profit sectors in the market before making radical decisions such as stopping the operations of the entity.
On January 1, Year 1, Savor Corporation leased equipment to Spree Company. The lease term is 9 years. The first payment of $698,000 was made on January 1, 2018. The present value of the lease payments is $4,561,300. The lease is appropriately classified as an operating lease. Assuming the interest rate for this lease is 9%, how much interest revenue will Savor record in Year 1 on this lease
Answer:
The interest revenue will Savor record in Year 1 on this lease at 9% is $347,697
Explanation:
Present value of Lease Payment = $4,561,300
Less: First Payment on Jan 1, 2018 = $698,000
Remaining Balance = $3,863,300
Interest Revenue for Year 1 at 9% = $3,863,300 × 9%
Interest Revenue for Year 1 at 9% = $347,697
A population of bears increased by 50% in 4 years. If the situation is modeled by an annual growth rate compounded continuously, which formula could be used to find the annual rate according to the exponential growth function? Leave your answer in terms of ln.
Answer:
[tex]r=\frac{ln(1.5)}{4}[/tex]
Explanation:
Given:
Total population after time (P) = 100% + 50% = 1 + 0.5 = 1.5
Starting population (p) = 100% = 1
Number of year (t) = 4 year
rate of growth = r
Computation:
Exponential growth function for population :
P = [tex]pe^{rt}[/tex]
1.5 = [tex]1\times e^{4\times r}[/tex]
1.5 = [tex]e^{4r}[/tex]
From taking log:
4r = ln(1.5)
[tex]r=\frac{ln(1.5)}{4}[/tex]
Answer:
ln(1.5)/4
Explanation:
The sales manager believes at 10% increase in variable unit selling expense well increase sales volume. if the sales volume increases by 28.5% what will be the change in net operating income? Is this a good idea, why or why not?
Answer:
Do not have enough data
Explanation:
It depends on the proportion of the variable and fixed costs. We need more data such as the selling price and the exact variable and fixed costs n order to comment on this proposed idea.
Regal Health Plans issued a ten-year, 12 percent annual coupon bond a few years ago. The bond now sells for $1,100. The bond has a call provision that allows Regal to call the bond in four years at a call price of $1,060. The bond has a cell provision that allows Regal to call the bond in four years at the call price of $1,060.
a. What is the bond's yield to maturity?
b. What is the bond's yield to call?
Answer:
The solution to the given problem is done in excel and an image of the solution is attached.
What is the bond's yield to maturity?
10.35%
What is the bond's yield to call?
10.13%
please find the attached for the solution
A humane society reports that 19% of all pet dogs were adopted from an animal shelter.Assuming the truth of this assertion, find the probability that in a random sample of80 per dogs, between 15% and 20% were adopted from a shelter. You may assume thatthe normal distribution applies.
Answer:
The probability of pet dogs adopted between 15% and 20% is 0.4096.
Explanation:
Let X = number of pet dogs adopted from an animal shelter.
The proportion of pet dogs adopted from an animal shelter is, p = 0.19.
The sample of pet dogs selected is of size, n = 80.
A Normal approximation to Binomial can be applied in this case since,
np = 80 × 0.19 = 15.2 > 10n(1 - p) = 80 × (1 - 0.19) = 64.8 > 10So the sample proportion ([tex]\hat p[/tex]) of pet dogs adopted from an animal shelter follows a normal distribution.
Mean of [tex]\hat p[/tex] is:
[tex]\mu_{\hat p}=p=0.19[/tex]
Standard deviation of [tex]\hat p[/tex] is:
[tex]\sigma_{\hat p}=\sqrt{\frac{p(1-p)}{n} }[/tex]
Compute the probability of [tex]\hat p[/tex] between 15% and 20% as follows:
[tex]P(0.15\leq \hat p\leq 0.20)=P(\frac{0.15-0.19}{0.044}\leq \frac{\hat p-\mu_{\hat p}}{\sigma_{\hat p}}\leq \frac{0.20-0.19}{0.044}} )\\=P(-0.91<Z<0.23)\\=P(Z<0.23)-P(Z<-0.91)\\=0.591-0.1814\\=0.4096[/tex]
Thus, the probability of pet dogs adopted between 15% and 20% is 0.4096.
To find the probability of a specific range, we can use the concept of a normal distribution. By calculating the mean and standard deviation, we can find the z-scores and corresponding cumulative probabilities.
Explanation:To solve this problem, we can use the concept of a normal distribution. Given that 19% of all pet dogs are adopted from an animal shelter, we want to find the probability that between 15% and 20% of 80 pet dogs in a random sample are adopted from a shelter.
We can use the mean and standard deviation of the normal distribution to find the probability. The mean of the distribution is given by p*n, where p is the proportion of dogs adopted from a shelter (0.19) and n is the sample size (80). The standard deviation is calculated as √((p*(1-p))/n).
Using these values, we can calculate the z-scores for the lower and upper bounds of the range (0.15 and 0.20) and find the corresponding cumulative probabilities using a standard normal distribution table or a calculator.
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The comparative balance sheets for Blossom Company show these changes in noncash current asset accounts: accounts receivable decreased $90,000, prepaid expenses increased $38,000, and inventories increased $50,000. Compute net cash provided by operating activities using the indirect method, assuming that net income is $196,000. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
Cash provided by operating activities is $198,000
Explanation:
Net Income $196,000
Decrease in receivable will increase the cash as more customers have paid than the new credit given in the period.
Increase in prepaid expense will decrease the cash balance as there more cash paid in advance against expenses than before.
Increase in inventory will increase the inventory cost and cash is paid against these expenses. More inventory means more cash outflow.
Decrease in receivable will be added and Increase in Prepaid expenses and Inventory will be deducted from operating cash flow calculation.
Cash provided by operating activities = Net Income + accounts receivable decreased - prepaid expenses increased - inventories increased
Cash provided by operating activities = $196,000 + $90,000 - $38,000 - $50,000
Cash provided by operating activities = $198,000
produces deluxe razors that compete with Gillette's Mach line of razors. Total manufacturing costs are $ 170 comma 000 when 20 comma 000 packages are produced. Of this amount, total variable costs are $ 80 comma 000. What are the total production costs when 25 comma 000 packages of razors are produced? Assume the same relevant range
Answer:
Total cost= $190,000
Explanation:
Giving the following information:
Total manufacturing costs are $170,000 when 20,000 packages are produced.
The total variable costs are $80,000 at 20,000 units.
First, we need to determine the unitary variable cost and total fixed costs.
Unitary variable cost= total variable cost/ number of units
Unitary variable cost= 80,000/20,000= $4 per unit
Total fixed costs= total cost - total variable cost
Total fixed costs= 170,000 - 80,000= $90,000
Now, we need to determine the total cost of 25,000 units.
Total cost= 90,000 + 4*25,000= $190,000
The feminine personality of Whirlpool helps identify which styles and colors will be most appealing to buyers. The company now uses female voice-overs in its ads to align the advertising with the brand's personality more closely. This is an example of a company__________
Answer: Elaborating on a brand personality
Explanation: Brand personality is the attribution of a personal trait to a brand which helps the organization to mold the manner consumers feel about its commodity, service or purpose. In this case, characteristics of a human being like feminine voice-over signify the whirlpool personality through the person representing the brand along with advertising so as to be in the same position as the whirlpool brand.
A buyer uses a periodic inventory system, and it purchases $4,000 of merchandise on credit terms of 2/10, n/30 on December 5. On December 15, it pays the invoice in full. Prepare the buyer's necessary journal entry for payment by selecting the account names from the drop-down menus and entering dollar amounts in the Debit and Credit columns. If there are multiple debits or multiple credits, enter the account titles in alphabetical order.
For a merchandise worth $4,000, purchased on credit terms of 2/10, n/30, the buyer records the purchase by debiting Purchases and crediting Accounts Payable by $4,000. When payment is made within 10 days, the Accounts Payable is debited by $4,000 against a credit (decrease in cash) of $3,920 (net of discount) and a credit to Purchase Discounts for $80 (2% of $4,000).
Explanation:Given the scenario, the buyer purchased $4,000 worth of merchandise and paid it fully within the discount period (10 days). This qualifies the buyer for a discount of 2% as per the credit term 2/10, n/30 which stands for a 2% discount if payment is made within 10 days, otherwise, the net payment is due within 30 days. The discount amounts to $80 ($4,000*2%).
The buyer needs to make two separate journal entries: one for the merchandise purchase and one for the payment. Here's how to record the journal entries:
For the merchandise purchase:Debit (increase) Purchases for $4,000Credit (increase) Accounts Payable for $4,000For the payment within the discount period:Debit (decrease) Accounts Payable for $4,000Credit (increase) Cash for $3,920Credit (increase) Purchase Discounts for $80Learn more about the Periodic Inventory System here:https://brainly.com/question/32807813
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Consider a competitive market for which the quantities demanded and supplied (per year) at various prices are given as follows:
Price (dollars) Demand (millions) Supply (millions)
60 22 14
80 20 16
100 18 18
120 16 20
a. Calculate the price elasticity of demand when the price is $80 and when the price is $100.
b. Calculate the price elasticity of supply when the price is $80 and when the
price is $100.
c. What are the equilibrium price and quantity ?
d. Suppose the government sets a price ceiling of $80. Will there be a shortage,
and if so, how large will it be ?
Answer and Explanation:
A. Price elasticity of demand
Price(P0) = $80 , Q0 = 20
Price(P1) = $100 , Q1 = 18
Price elasticity of demand =
[tex]\frac{\frac{Q1-Q0}{\frac{Q1+Q0}{2} } }{\frac{P1-P0}{\frac{P1+P0}{2} } } \\\\\frac{\frac{18-20}{\frac{18+20}{2} } }{\frac{100-80}{\frac{100+80}{2} } }\\\\\frac{\frac{-2}{\frac{38}{2} } }{\frac{20}{\frac{180}{2} } }\\\\\frac{\frac{-2}{19} }{\frac{20}{90} } }\\\\-0.47[/tex]
Price elasticity of demand = 0.47
B. Price elasticity of supply
Price(P0) = $80 , Q0 = 16
Price(P1) = $100 , Q1 = 18
Price elasticity of supply =
[tex]\frac{\frac{Q1-Q0}{\frac{Q1+Q0}{2} } }{\frac{P1-P0}{\frac{P1+P0}{2} } } \\\\\frac{\frac{18-16}{\frac{18+16}{2} } }{\frac{100-80}{\frac{100+80}{2} } }\\\\\frac{\frac{2}{\frac{34}{2} } }{\frac{20}{\frac{180}{2} } }\\\\\frac{\frac{2}{17} }{\frac{20}{90} } }\\\\0.53[/tex]
Price elasticity of supply = 0.53
C. The point , where Demand and supply is equal called equilibrium price
So , $100 is equilibrium price.
D. if market price is less then equilibrium price , it is effective So, shortage (20-16) 4 units
a. The price elasticity of demand when the price is $80 is -0.4 and when the price is $100 is -0.08. b. The price elasticity of supply when the price is $80 and $100 is 0.5. c. The equilibrium price and quantity can be determined from the graph by identifying the point at which the demand and supply curves intersect, and from the table by finding the price where the quantity demanded equals the quantity supplied.
Explanation:a. To calculate the price elasticity of demand, we use the formula:
Elasticity of Demand = (% Change in Quantity Demanded) / (% Change in Price)
Using the given information, at a price of $80, the quantity demanded is 20 million and at a price of $100, the quantity demanded is 18 million. The % change in quantity demanded is -10% and the % change in price is 25%. Plugging these values into the formula, we get:
Elasticity of Demand ($80) = (-10%) / (25%) = -0.4
Elasticity of Demand ($100) = (-2%) / (25%) = -0.08
b. To calculate the price elasticity of supply, we use the same formula:
Elasticity of Supply = (% Change in Quantity Supplied) / (% Change in Price)
Using the given information, at a price of $80, the quantity supplied is 16 million and at a price of $100, the quantity supplied is 18 million. The % change in quantity supplied is 12.5% and the % change in price is 25%. Plugging these values into the formula, we get:
Elasticity of Supply ($80) = (12.5%) / (25%) = 0.5
Elasticity of Supply ($100) = (12.5%) / (25%) = 0.5
c. The equilibrium price and quantity can be determined from the graph by identifying the point at which the demand and supply curves intersect. This represents the point where the quantity demanded equals the quantity supplied, and thus the market is in equilibrium. From the table, we can determine the equilibrium price and quantity by finding the price where the quantity demanded equals the quantity supplied.
d. To determine the quantities demanded and supplied at a price of $120, we can use the table. At a price of $120, the quantity demanded is 16 million and the quantity supplied is 20 million. Since the quantity demanded is less than the quantity supplied, there will be a surplus. The size of the surplus is the difference between the quantity supplied and the quantity demanded, which is 20 - 16 = 4 million.
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Lake Sales had $2,200,000 in sales last month. The contribution margin ratio was 30% and operating profits were $180,000. What sales volume does Lake's need to yield a $240,000 operating profit
Lake Sales needs a sales volume of at least $2,033,333.33 to yield an operating profit of $240,000. This calculation was reached by first identifying the company's fixed costs and then using this information along with the contribution margin ratio and desired operating profit to find the required sales volume.
Explanation:The question first requires us to understand the definition of contribution margin ratio. It is defined as the profit per item or unit sold after variable costs are deducted from the sales price, shown as a percentage. In this case, the contribution margin ratio is 30% which means that 30% of each dollar in sales is contributing to cover the fixed costs and the remaining to profit.
Given that Lake Sales had operating profits of $180,000 on sales of $2,200,000, we can first find the fixed costs. Fixed costs can be calculated as sales - (sales * contribution margin ratio) - operating profits, which equates to $2,200,000 - (0.3 * $2,200,000) - $180,000 = $370,000.
Knowing this, we can calculate the sales volume required to reach a certain operating profit. The formula is Fixed costs + Desired operating profit / Contribution margin ratio, substituting gives us the required sales volume as ($370,000 + $240,000) / 0.3 = $2,033,333.33. Therefore, Lake Sales would need a sales volume of at least $2,033,333.33 to yield an operating profit of $240,000.
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Suppose the price elasticity of demand is relatively elastic and the price elasticity of supply is relatively inelastic in a specific market. If an excise tax is imposed on this good, who will bear the greater burden of the tax?
a. government
b. consumers
c. producers
d. both consumers and producers equally
Answer:
c. producers
Explanation:
Since it is given in the question that the price elasticity of demand is relatively elastic but the price elastic of supply is relatively inelastic but if the excise tax is imposed on the goods so the greater burden of the tax would be on the producers as the supply is inelastic so the producers could not changed much but if we compare to the consumers, the consumer could change the demand more than before due to the elastic in demand.
So, the correct option is c.
This chapter discusses the discounted dividend and corporate valuation models for valuing common stocks. Three alternative approaches, the P/E multiple, Enterprise Values, and EVA approaches, were presented. Explain each approach and how you might use each one to value a common stock.
Answer: The P/E multiple and EVA approach and their use to value common stock.
P/E multiple: The term used for price/earnings multiple reflects the market price of a stock as the times of earnings per share of that company. It determines the investor's willingness towards the current market price of the stock.
Economic value added(EVA): this approach is a measure to evaluate a company stock based on economic value, it has added at a specified time. It considers the opportunity cost of capital invested in the business and the next operating profit generated by the business.
Explanation: The P/E multiple is the basis to analyze the stock price with the earnings so that the appropriate value of a stock is estimated.
The P/E approach can be used as a starting point in stock valuation. If a stock's P/E ratio is well above its industry average and if the stock's growth potential and risk are similar to other firms in the industry, the stock's price may be too high. To estimate a ball-park value multiply the firm's EPS by the industry average P/E ratio.
An alternative approach is based on the concept of Economic Value Added (EVA). Remember, EVA = Equity(ROE - rs). Companies increase their EVA by investing in projects that provide shareholders with returns greater than the cost of capital. When you purchase a firm's stock, you receive more than just the book value of equity—you also receive a claim on all future value that is created by the firm's managers.
Final answer:
Common stock valuation involves methodologies like the Discounted Dividend Model, P/E Multiple, Enterprise Value, and EVA approaches, each considering different facets such as future earnings, industry standards, firm valuation, and profitability after capital costs.
Explanation:
Valuing common stocks involves different methodologies, such as the Discounted Dividend Model, the Price/Earnings (P/E) Multiple approach, the Enterprise Value approach, and the Economic Value Added (EVA) approach. To understand each:
Discounted Dividend Model: This method estimates the price of share today by calculating the discounted present value of the flow of dividend payments. If dividends are uncertain, you use the expected dividend and adjust the discount rate to include a risk premium according to the stock's riskiness and investors' risk aversion.
P/E Multiple Approach: This method values stock by multiplying the current earnings per share by the average P/E ratio for companies within the same industry. It reflects what investors are willing to pay today for a dollar of the company's earnings.
Enterprise Value Approach: This valuation technique considers the total value of the firm, including not only equity but also debt and minus cash. It represents the price to buy the whole business and is often used to assess takeover targets.
Economic Value Added (EVA): This approach measures a company's financial performance based on the residual wealth calculation by deducting the cost of capital from the company's operating profits, adjusted for taxes on a cash basis.
Each of these methods plays a crucial role in helping analysts and investors determine what they should be willing to pay for stock by considering factors like future earnings, industry standards, overall value of the firm, and financial performance after accounting for the cost of capital.
Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable Ending Accounts Receivable Net Sales WalCo $1,735 $2,682 $314,427 TarMart 5,766 6,294 59,878 CostGet 549 585 60,963 Required: 1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Do not round intermediate calculations. Enter your answers in millions. Round your "Average accounts receivable" and "Receivables turnover ratio" answers to one decimal place.)
Answer:
(1) 142.37; 2.56 days
(2) 9.93; 36.76 days
(3) 107.52; 3.39 days
Explanation:
(1) For WalCo,
Average accounts receivables:
= (Opening AR + Closing AR) ÷ 2
= ($1,735 + $2,682) ÷ 2
= 2,208.5
Receivables turnover ratio:
= Net Sales ÷ Average accounts receivable
= $314,427 ÷ 2,208.5
= 142.37
Average collection period:
= 365 ÷ Receivables turnover ratio
= 365 ÷ 142.37
= 2.56 days
(2) For TarMart,
Average accounts receivables:
= (Opening AR + Closing AR) ÷ 2
= ($5,766 + $6,294) ÷ 2
= 6,030
Receivables turnover ratio:
= Net Sales ÷ Average accounts receivable
= $59,878 ÷ 6,030
= 9.93
Average collection period:
= 365 ÷ Receivables turnover ratio
= 365 ÷ 9.93
= 36.76 days
(3) For CostGet,
Average accounts receivables:
= (Opening AR + Closing AR) ÷ 2
= ($549 + $585) ÷ 2
= 567
Receivables turnover ratio:
= Net Sales ÷ Average accounts receivable
= $60,963 ÷ 567
= 107.52
Average collection period:
= 365 ÷ Receivables turnover ratio
= 365 ÷ 107.52
= 3.39 days
The guidance system of a ship is controlled by a computer that has three major modules. In order for the computer to function properly, all three modules must function. Two of the modules have reliabilities of .97, and the other has a reliability of .99.
a. What is the reliability of the computer?
b. A backup computer identical to the one being used will be installed to improve overall reli- ability. Assuming the new computer automatically functions if the main one fails, determine the resulting reliability.
c. If the backup computer must be activated by a switch in the event that the first computer fails, and the switch has a reliability of .98, what is the overall reliability of the system? (Both the switch and the backup computer must function in order for the backup to take over.)
Answer:
a) 0.97 b) 0.9991 c) 0.008518
Explanation:
a) for the computer to work all modules must work so the lowest probsabiltiy of any one of the modules will determine the reliability of the computer.
b) Probabiltiy that 1st computer works+ Probability that 1st computer fails × Probability that back-up works
= 0.97+ 0.97×0.03
=0.9991
c) Probabiltiy that 1st computer works+ Probability that 1st computer fails× Probability that switch works× Probability that back-up computer works
=0.97+0.03×0.98×0.97
=0.998518
The system's reliability is calculated by multiplying the reliabilities of each module in the system. The reliability of a backup computer is calculated by considering the likelihood of one or the other working. If a switch is included, its reliability is considered as a component in a series system with the backup computer.
Explanation:This question pertains to system reliability. In essence, you are dealing with a series-parallel system. For a. the first step is to compute the reliability of the computer. To do this, simply multiply the reliabilities of each module together because for a system to be reliable, all the modules must work:
Reliability = 0.97 * 0.97 * 0.99 = 0.931129
For b. knowing that the backup system will step in if the first computer fails, the total system reliability is the probability that either the first computer works, or it doesn’t, but then the backup works. The reliability of either the primary or backup computer working is calculated by:
R = 1 - (1 - R_primary) * (1 - R_backup)
This is a simple equation derived from probability theory and we can plug in the computed reliability from part a.:
R = 1 - (1 - 0.931129) * (1 - 0.931129) = 0.996122
For c. if there's a switch to activate the backup, both the switch and the backup computer must function. This is another series system, so you'll multiply them together to get the overall reliability:
Overall reliability = 0.98 * 0.996122 = 0.97636
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Computing Revenues under Long-Term ContractsCamden Corporations agreed to build a warehouse for a client at an agreed contract price of $ 900,000. Expected (and actual) costs for the warehouse follow: 2016, $202,500; 2017, $337,500; and 2018, $135,000. The company completed the warehouse in 2015. Compute revenues, expenses, and income for each year 2016 through 2018, and for all three years combined, using the cost-to-cost method.Cost-to-Cost Method% of total Costs expected Revenue Year incurred costs recognized Income2016 $Answer Answer% $Answer $Answer2017 Answer Answer% Answer Answer2018 Answer Answer% Answer AnswerTotal $Answer $Answer $Answer
Answer and Explanation:
Computation:
Cost-to-cost method
Year Cost cost(%) Revenue Income
2016 $202,500 30% $270,000 $67,500
2017 $337,500 50% $450,000 $112,500
2018 $135,000 20% $180,000 $45,000
Total $675,000 100% $900,000 $225,000
Cost % = Cost of particular year / Total cost
Revenue:
Year 2016 =$900,000 × 30% = $270,000
Year 2017 = $900,000 × 50% = $450,000
Year 2018 = $900,000 × 20% = $180,000.
Income:
= Revenue - Cost
Year 2016 = $270,000 - $202,500
Year 2017 = $450,000 - $337,500
Year 2018 = $180,000 - $135,000
Final answer:
To calculate revenues, expenses, and income under the cost-to-cost method, we ascertain the percent completed each year to determine the respective revenue to be recognized. This percentage is applied to the total contract price, with the revenue minus the actual costs for each year providing the income.
Explanation:
To compute revenues, expenses, and income for Camden Corporation under the cost-to-cost method, we first add up all the actual costs to determine the percentage of completion each year and apply it to the total contract price. This way, we can figure out how much revenue to recognize each year.
Total expected costs: 2016 costs + 2017 costs + 2018 costs = $675,000Percent complete 2016: 2016 costs / Total expected costs = $202,500 / $675,000 = 30%Revenue recognized 2016: Total contract price * Percent complete 2016 = $900,000 * 30% = $270,000Income 2016: Revenue recognized 2016 - 2016 costs = $270,000 - $202,500 = $67,500Repeat these steps for the subsequent years:
Percent complete 2017: (2016 costs + 2017 costs) / Total expected costs = $540,000 / $675,000 = 80%Revenue recognized by end of 2017: Total contract price * Percent complete 2017 = $900,000 * 80% = $720,000Income 2017: Revenue recognized by end of 2017 - Revenue recognized by end of 2016 - 2017 costs = $720,000 - $270,000 - $337,500 = $112,500Percent complete 2018: (2016 costs + 2017 costs + 2018 costs) / Total expected costs = 100%Revenue recognized 2018: Total contract price * Percent complete 2018 - Revenue recognized by end of 2017 = $900,000 - $720,000 = $180,000Income 2018: Revenue recognized 2018 - 2018 costs = $180,000 - $135,000 = $45,000For all three years combined:
Total Revenue: Contract price = $900,000Total Costs: $675,000Total Income: Total Revenue - Total Costs = $900,000 - $675,000 = $225,000An investor has a $1,000,000 portfolio that is split evenly between "blue chip" stocks and treasury securities. The current economic environment is characterized by low interest rates and flat stock prices - and this is expected to remain unchanged for a number of years. However, the residential and commercial real estate market is expected to be strong
Answer:
Equity REITs
Explanation:
In an event of financial assets like when the stocks and bonds are not doing well, "hard" assets such as real estate and artwork tend to do better (since investors reallocate their investments away from financial assets into housing, etc.) A way that investors can participate in this is by investing in equity REITs. Since equity REITs own real estate, the share price movement of the REIT parallels the value of the real estate owned. Mortgage REITs invest in mortgages (essentially the same as investing in a bond) and thus are not the best choice when interest rates are low, since the yield is meager. And, if market interest rates rise, the value of the mortgages held drops. The same would be true for investments in mortgage bonds and Fannie Mae Pass-Through certificates.
An improvement in a firm's technology that improves productivity results in a(n): Group of answer choices downward movement along the supply curve. leftward shift of the supply curve. upward movement along the supply curve. willingness to supply a larger quantity than before at any given price.
Answer:
The correct answer is letter "D": willingness to supply a larger quantity than before at any given price.
Explanation:
As a result of an increase in productivity as a result of introducing new technology, a company will be able to supply more units to the market. The price will vary according to supply and demand flows and the investment needed for the introduction and maintenance of the new technology.
Increases in productivity can be caused by technological progress, capital investment or human capital development.
Do you believe that the $785,000 amount at the center of the Overstock-Grant Thornton dispute was material? Defend your answer. What factors other than quantitative considerations should have been considered in deciding whether the $785,000 amount was material?
Answer: Yes
Explanation:
The $785,000 was material because it meets both the quantitative and qualitative factors for materiality. Quantitatively, it is more than 10% of the net income of the company ($7.7million) and qualitatively, it showed a relaxed attitude of management towards accounting misstatements.
Some factors other than quantitative considerations that can be used to determine the materiality of the amount in question are:
Effect on changing loss to profit or profit into loss .Effect of management’s compensation .Effect on the public/shareholders/share prices .Possibility of fraud or conflict of interest .Attitude of management to accounting misstatements .Presented below is information related to equipment owned by Vaughn Company at December 31, 2017. Cost $9,360,000 Accumulated depreciation to date 1,040,000 Expected future net cash flows 7,280,000 Fair value 4,992,000 Assume that Vaughn will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 5 years. Collapse question part (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
The double for the impairment is given below
Dr Impairment loss expense(income statement) $3,328,000
Cr Accumulated depreciation $3,328,000
Explanation:
An asset is impaired if its carrying value(net book value) is higher than its recoverable amount.
Recoverable amount is the higher of fair value less costs to sell and value in use.
First of all, identifying the figures above individually would be a good starting point to calculating the impairment on the equipment.
Carrying value is $8320000 (cost less accumulated depreciation to date)
Recoverable amount under IAS 36 is the higher of fair value less costs of disposal and value in use
However,the calculation of impairment under U.S GAAP ,requires that the asset carrying amount is compared to fair value of the asset, as a result impairment is $3,328,000 ($8,320,000-$4,992,000)
Under IFRS the credit is posted directly to equipment account in the balance sheet
No entry is required to record the impairment of the asset at December 31, 2017.
Explanation:An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and its value in use. In this scenario, the fair value of the equipment is $4,992,000, which is less than its carrying amount of $8,320,000 ($9,360,000 - $1,040,000).
Since the fair value is less than the carrying amount, an impairment loss should be recognized. However, because the question states that Vaughn will continue to use the asset in the future, impairment accounting rules dictate that the impairment loss is not recognized as long as the asset is expected to generate sufficient future cash flows to recover its carrying amount. Therefore, no entry is required at December 31, 2017.
Prepare a pro forma balance sheet, assuming a sales increase of 15 percent, no new external debt or equity financing, and a constant payout ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Answer:
pro forma Balance sheet
old increased
assets
non current assets 37800 43470
net PPE 37800 43470
Current assets 15400 17710
Inventory 9000 10350
Accounts receivable 3900 4485
cash 2500 2875
total assets 53200 61180
Equity & Liabilities
common stock 15000 15000
retained earnings 6800 13930
total 21800 28930
Liabilities
long term debt 24000 24000
Current liabilities 7400 7760
Accounts payable 2400 2760
notes payable 5000 5000
total 53200 60690
EFN = 61180 - 60690 = 490
PAYOUT RATIO = dividends / net income
additions to retained earnings = net income less dividends
Explanation
Retained earnings = old retained earnings plus additions to retained earnings = 6800 + 7130 =13930
Missing parts of the Question
Consider the following income statement for the Heir Jordan Corporation:
HEIR JORDAN CORPORATION
Income Statement
Sales $ 48,500
Costs 34,500
Taxable income $ 14,000
Taxes (35%) 4,900
Net income $ 9,100
Dividends $ 2,900
Addition to retained earnings 6,200
The balance sheet for the Heir Jordan Corporation follows.
HEIR JORDAN CORPORATION
Balance Sheet
Assets Liabilities and Owners’ Equity
Current assets Current liabilities
Cash $ 2,500 Accounts payable $ 2,400
Accounts receivable 3,900 Notes payable 5,000
Inventory 9,000 Total $ 7,400
Total $ 15,400 Long-term debt $ 24,000
Owners’ equity
Fixed assets Common stock and paid-in surplus $ 15,000
Net plant and equipment $ 37,800 Retained earnings 6,800
Total $ 21,800
Total assets $ 53,200 Total liabilities and owners’ equity $ 53,200
1.Prepare a pro forma balance sheet, assuming a 10 percent increase in sales, no new external debt or equity financing, and a constant payout ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
2.Calculate the EFN. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Cost of Preferred Stock Torch Industries can issue perpetual preferred stock at a price of $57.00 a share. The stock would pay a constant annual dividend of $6.00 a share. What is the company’s cost of preferred stock, ?
Answer:
the company’s cost of preferred stock is 10.53%.
Explanation:
given information:
perpetual preferred stock = $57.00
a constant annual dividend = $6.00
to determine the company’s cost of preferred stock we can use the following formula
[tex]cost of preferred stock = \frac{ annual dividend}{preferred stock}[/tex]
[tex]= \frac{6.00}{57.00}[/tex]
[tex]=10.53[/tex]%
therefore, the company’s cost of preferred stock is 10.53%.
Obviously, the lifetime membership isn’t a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it’s a great deal. Suppose that the appropriate annual interest rate is 7.4%. What is the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $600 in annual membership dues? (Note: Round your answer up to the nearest year.)
Answer:
The minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying the annual membership dues is 23 years.
Explanation:
The question is incomplete.
Lloyd is a divorce attorney who practices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $600 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also has an option for members to buy a lifetime membership today for $6,500 and never have to pay annual membership dues. Obviously, the lifetime membership isn't a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it's a great deal. Suppose that the appropriate annual interest rate is 7.4%. What is the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $600 in annual membership dues?
We have to equal the price of the lifetime membership with the present value of the annual membership. The anual membership present value is equal to a annuityof n years.
[tex]6,500=600*\sum_0^n\frac{1}{(1+0.074)^{n}} =600(\frac{1-(1.074)^{-n}}{0.074})\\\\\\\frac{6500}{600}*0.074= 1-(1.074)^{-n}\\\\1.074^{-n}=1-0.8017=0.1983\\\\-n*ln(1.074)=ln(0.1983)\\\\n=-ln(0.1983)/ln(1.074)=-(-1.6180)/0.0714=22.66\approx23[/tex]
A technical analyst has been charting the price movements of ABC stock. The stock has been fluctuating in price between $41 and $46 per share for the past 3 months. If the analyst expects a breakout through the resistance level, which order should be placed?(A) Buy ABC @ $40 Stop GTC(B) Buy ABC @ $41 Stop GTC(C) Buy ABC @ $46 Stop GTC(D) Buy ABC @ $47 Stop GTC
Answer:
Buy ABC @ $47 Stop GTC
Explanation:
Since he expects a breakout through the resistance, that means above $46.
The order to be placed is a pending order, since he places the trade in anticipation of price break above. The type of pending order will be a Buy stop order.
See the attached diagram for clear explanation
In preparing closing entries A. each revenue account will be credited. B. each expense account will be credited. C. the owner’s capital account will be debited if there is net income for the period. D. the owner’s drawings account will be debited.
Explanation:
The closing entries for the following accounts are shown below:
1. Sales Revenue A/c Dr XXXXX
To Income Summary XXXXX
(Being revenue account closed)
2. Income summary A/c Dr XXXXX
To Expenses A/c XXXXX
(Being expenses accounts are closed)
3. Income summary A/c Dr XXXXX
To Owner capital XXXXX
(Being the difference is recorded)
4. Owner capital XXXXX
To Owner Drawing XXXXX
(Being the drawing account is closed)
14. The role price plays in a market is: a. they distribute scarce goods to those consumers who value them most highly. b. when prices are in equilibrium, product shortages or surpluses can occur. c. they help eliminate poverty. d. they eliminate scarcity.
Answer:
a. they distribute scarce goods to those consumers who value them most highly.
Explanation:
Price of a commodity is the amount a manufacturer or producer is willing to sell goods and services.
Attaching a price to a commodity is the easiest way to efficiently distribute scarce goods to the consumers that are in dire need of them.
Since resources for production are scare and limited. It takes a particular cost for production resources to be assembled into a finished product. The cost of production often translates to the asking price the producer is willing to sell it. Every commodity produced is aimed at satisfying a particular need for them. Price often brings disparity when consumers are choosing the most important goods they want. This often leads to the sorting of scale of preference usually based on needs and the importance they attach to them. This way scarce goods will reach consumers that place priority to them.You are the head of the Health Information Management department at Grady Health System. An FBI agent has arrived at your office with a search warrant in hand. He asks to speak with you about the hospitals health records and HIPAA violations. You start your response with some examples of HIPAA violations. What would you say? Provide a reference to support your thoughts.
I would initially apologize for the violations that are found in the hospital. Although this might not necessarily be my jurisdiction, I would still feel bad if the hospital did not operate as it should.
I would then proceed to name some examples of HIPAA violations. This would be:
Snooping on Healthcare RecordsFailure to Perform an Organization-Wide Risk Analysis.Failure to Manage Security Risks / Lack of a Risk Management ProcessInsufficient ePHI Access ControlsHIPAA violations can occur through unauthorized disclosure of patient information, failure to implement proper privacy measures, and lack of consent for using patient health information.
Explanation:HIPAA violations can occur in various ways. For example, if a healthcare provider discloses a patient's diagnosis to someone who is not authorized to receive that information, it would be a violation. Additionally, if a healthcare organization fails to implement strong privacy and security measures to protect patient records, it would constitute a HIPAA violation. Another example is if a healthcare provider fails to obtain proper consent before using or disclosing a patient's health information.
Learn more about HIPAA violations here:https://brainly.com/question/30161000
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How should the business be developed in the future? Be specifi c and consider changes related to your supplier, the monogramming subcontractor, target customers, and products.
Answer:
Target customers and products
Explanation:
Businesses should be developed in the future along the line of its target customers and also in consideration of the type of products it produces. the main aim of every business is to meet and solve the needs of its target customers and its development should as well be tailored to always fulfill the need of its target customers.
Business are not developed based on specifics related to the supplier because the suppliers are not the end users of the project but the target customers are.
Which of the following statements is CORRECT? a. During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future. b. If a company with a high beta merges with a low-beta company, the best estimate of the new merged company's beta is 1.0. c. If a newly issued stock does not have a past history that can be used for calculating beta, then we should always estimate that its beta will turn out to be 1.0. This is especially true if the company finances with more debt than the average firm. d. Logically, it is easier to estimate the betas associated with capital budgeting projects than the betas associated with stocks, especially if the projects are closely associated with research and development activities. e. The beta of an "average stock," which is also "the market beta," can change over time, sometimes drastically.
Answer:A. During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future.
Explanation: Leverage is a term used in Financial investment to mean the use of various borrowing options by an organisation in order to improve its potential to make profit or its potential to be Competitive.
Risky projects are projects known to high a high chances of loss,this type of projects can lead to severe consequence for business Organisations.
the beta of an investment is a measure of the risk which is caused by the exposure of an investment to general market changes as opposed to internal factors that can have severe negative impact on an investment.
Answer:
During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future.
Explanation:
When investors expect interest rates to ____, they may ____.a. increase; sell bonds and buy short-term securitiesb. increase; sell short-term securities and buy bondsc. decrease; sell bonds and buy short-term securitiesd.e. B and C
Answer: increase: sell bonds and buy short term securities --A
Explanation:
When investors anticipate higher interest rates , they sell Thier bonds than allow it to mature because they understand that the value of bonds in the market lies largely on the coupon rates of other bonds making market prices of old bonds with lower coupons to decrease allowing new buyers for their lower interest payments.
They also sell Thier bonds if The Issuing Entity becomes unstable financial-wise because it prevent Thier chances of profit in the future and they would not like to recover only part of their investment.
When they sell Thier bonds due to anticipated increased rates, they buy short term securities that would be more beneficial to them.