Answer:
On average, there are 51.77 days, a unit of inventory sit on the shelf before it is sold.
Explanation:
Super Amazona has ending inventory of $200,000, and cost of goods sold for the year just ended was $1,410,000.
Inventory turnover ratio = Cost of Goods Sold/Inventory = $1,410,000/$200,000 = 7.05 times
The number of days a unit of inventory sit on the shelf before it is sold = 365/Inventory turnover ratio = 365/7.05 = 51.77 days
If average household income increases by 10%, from $50,000 to $55,000 per year, the quantity of rooms demanded at the Peacock ______ from ______ rooms per night to ______ rooms per night. Therefore, the income elasticity of demand is _____, meaning that hotel rooms at the Peacock are _____.
The quantity of rooms demanded at the Peacock Hotel in response to increases in household income relates to the concept of income elasticity of demand. As income rises, the elasticity measure tells us whether the good (hotel rooms) is a necessity or a luxury. With an elasticity value greater than 1, hotel rooms would be considered a luxury.
Explanation:To answer this question, we'd need factual data on how the demand for rooms at the Peacock Hotel has changed. However, we can discuss the concept of income elasticity of demand. The income elasticity of demand measures how much the quantity demanded of a good responds to a change in consumers' income.
For example, if income increases by 10% and simultaneously, demand for hotel rooms increases by 15% (from 100 rooms to 115 per night), we'd calculate the income elasticity of demand as follows: (change in quantity demanded / initial quantity demanded) / (change in income / initial income), resulting in (15/100) / (10/100), or 1.5. An elasticity greater than 1 implies that the good is a luxury good, meaning consumers will buy more of it as their income rises.
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The leadership team meets weekly to update each other on what events are taking place in each unit. Each division director completes an update report to be attached to the minutes. Since many of the division directors meet with each other, there are rarely any surprises. This weekly communication calls for ____.
Answer:
The leadership team meets weekly to update each other on what events are taking place in each unit. Each division director completes an update report to be attached to the minutes. Since many of the division directors meet with each other, there are rarely any surprises. This weekly communication calls for an increased number of face to face meetings.
Explanation:
This is an example of face to face meetings and quite an increase of the same in the organization in order to update each other on the events that are taking place in the organization.
This weekly communication calls for lean media.
The following information should be considered:
In the given case, the directors of different divisions weekly meet and update each other over the progress. Since many of these division directors meet with each other there hardly are surprises. It is an example of lean media. Lean media involves regular interaction between groups that leaves them with regular updates about each other.Learn more: https://brainly.com/question/3331860?referrer=searchResults
2. Activities included (and not included) in the calculation of GDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. Scenario 2020 GDP Included Excluded Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 13, 2020. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2020. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.) Tasty's, a U.S. fast-food company, produces a hamburger at one of its many St. Louis locations on January 21, 2020. It sells the hamburger to a customer that same day. An accountant starts a client's 2020 tax return on April 14, 2021, finishing it just before midnight on April 15, 2021. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 5, 2020. An elementary school student buys the chocolate bar on December 24. Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 10, 2020. Athleticus imports the pair of sneakers into the United States on May 20, 2020.
Answer:
Blanks:-
1) Market value of
2) final goods and services
3) by resources within the United states
Scenario-
1) Excluded
2) Included
3) Included
4) Excluded
5) Excluded
Explanation:
U.S. GDP includes goods produced and services rendered within its borders during a given time period. Therefore, activities by Treetopplers, Tasty's, and Chocolate Express would increase U.S. GDP since these activities occurred within the U.S. in 2020. However, the accountant's services and Athleticus's sneaker production would not contribute to U.S. GDP.
Explanation:The Gross Domestic Product (GDP) includes all products and services produced within a country's borders during a given period. Therefore, the activities that would increase GDP within the given scenarios are Treetopplers producing wood (because it is produced within the U.S.), Tasty’s making a burger (as it is a service completed within the U.S.), and Chocolate Express producing a chocolate bar (even though it is a foreign company, the product is made within the U.S.). The accountant starting a client's 2020 tax return in 2021 would not be included in 2020's GDP because the service was rendered in 2021. Likewise, Athleticus's production of sneakers in Vietnam wouldn't contribute to the U.S.'s GDP as it was produced outside of the country.
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Which of the following is a characteristic of the Consolidation phase of e-commerce? predominance of pure online strategies brand extension and strengthening becomes more important than creating new brands shift to a technology-driven approach emphasis on revenue growth versus profits
Answer: Extension and strengthening becomes more important than creating new brands
Explanation: E-commerce (electronic commerce) is a term used in the trade and commerce to describe the trading or commercial activities driven by electronic systems such as internet, social media etc,this type of commerce or trade is technologically driven. It is made up of the following stages
Stage 1 : involves the initial starting and it is characterized by a fast growth.
Stage 2: PLATEAUING GROWTH OR CONSOLIDATION OF GROWTH IS CHARACTERIZED BY THE LEVELING UP OR STABILISATION OF GROWTH AFTER THE INITIAL FAST GROWTH EXPERIENCED IN THE FIRST STAGE. In this stage, Extension and strengthening becomes more important than creating new brands.
Stage 3: Renewed growth characterized by the implemention of changes both platforms or systems, characteristics, resources and procedures etc.
The consolidation phase of e-commerce is characterized by a predominance of pure online strategies, brand extension and strengthening, a shift to a technology-driven approach, and an emphasis on revenue growth over profits.
Explanation:The consolidation phase of e-commerce is typically characterized by several key features. One critical characteristic is the predominance of pure online strategies. This is a time when fully-digital strategies take precedence over others. Another significant characteristic of this phase is the importance of brand extension and strengthening over the creation of new brands. Rather than creating new brands, companies focus on strengthening and expanding the brands they already have. A third characteristic is the shift to a technology-driven approach. This implies that more emphasis is placed on the use of technology for achieving business objectives. The last characteristic is an emphasis on the revenue growth versus profits which may not be as important in this phase.
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According to the dynamic version of the equation of exchange (as presented in the PowerPoint slides for Chapter 12), what will the rate of inflation be if real output grows 3% a year while the money supply grows 9% a year, assuming velocity is constant?
Answer:
6%
Explanation:
Based on the equation of exchange, the inflation rate can be determined by taking the difference between the rate of wage growth and the rate of labor productivity. Therefore, in the question above, the inflation rate is 9% - 3% = 6%. This shows that a fast increase in the wage growth rate with a slow increase in the productivity rate will lead to inflation.
Following is relevant information for Snowdon Sandwich Shop, a small business that serves sandwiches: Total fixed cost per month $ 1,120.00 Variable cost per sandwich .75 Sales price per sandwich 5.50 During the month of June, Snowdon sold 480 sandwiches. Complete the contribution margin income statement for the month of June. (Round your final answers to the nearest whole dollar.)
Explanation:
Snowdon Sandwich Shop
Contribution margin income statement
For the month of June
The contribution margin income statement is presented below:
Sales (480 × 5.50) $2,640
Less: Variable cost (480 × $0.75) ($360)
Contribution margin $2,280
Less: Fixed cost ($1,120)
Net income $1,160
In June, the Snowdon Sandwich Shop had a total variable cost of $360, a contribution margin of $2,040, and a net income of $920.
Explanation:To form the contribution margin income statement, we need first to calculate the total variable cost, then the contribution margin, and finally the net income. With the given details, let's commence:
Total Variable Cost = Variable cost per sandwich * Number of sandwiches sold = .75 * 480 = $360Contribution Margin = Sales - Total Variable Cost = (480 * 5.50) - 360 = $2,400 - 360 = $2,040Net Income = Contribution Margin - Total Fixed Cost = $2,040 - $1,120 = $920So, for Snowdon Sandwich Shop, the net income for the month of June is $920.
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On June 1, Year 3, Pete, a partner in the Sky Castle partnership, contributed to the partnership some undeveloped land (not inventory), which he had purchased on May 15, Year 1. On September 22, Year 7, Sky Castle distributed the land to Linda, who is also a partner. Linda quickly sold the land within 1 month of receipt. Linda's holding period for the land:______
a. Began May 15, Year 1.
b. Began June 1, Year 3.
c. Began September 22, Year 7.
d. Is short-term because she received the land from a partnership in which she is a partner.
Answer:
d. Is short-term because she received the land from a partnership in which she is a partner.
Explanation:
On September 22, Year 7, Sky Castle distributed the land to Linda, who is also a partner.
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2014 (19.80 %) (16.10 %) 2015 28.75 17.80 2016 14.50 30.60 2017 (3.00 ) (8.90 ) 2018 22.75 19.80 Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A: 8.64 % Stock B: 8.64 % Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year
Answer:
Year Stock A's Returns (rA) Stock B's Returns (rB)
2014 (19.80%) (16.10%)
2015 28.75% 17.80%
2016 14.50% 30.60%
2017 (3.00%) (8.90%)
2018 22.75% 19.80%
a) Calculate the average rate of return for each stock during the period 2014 through 2018.
Average rate of return of each stock will be calculated by taking an aggregate for all the returns of each stock and dividing it by 5, which is the total number of years.
a) The average rate of return for Stock A during the period 2014 through 2015 is given by ,
Average Return = ( -19.80 + 28.75 + 14.50 – 3.00 +22.75)/5 = 8.64%
The average rate of return for Stock b during the period 2014 through 2015 is given by ,
Average Return = ( -16.10 + 17.80 + 30.60 – 8.90 +19.80)/5 = 8.64%
b) Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year?
Since the investment in the portfolio created by stock A and stock B is 50-50, we will calculate portfolio return each year by multiplying each return with it's weight in the portfolio (50%) to find out the realized rate of return each year and then take an average to find out the average return of the portfolio during these 5 years
Realized Return for 2014:
= 0.5*(-19.80) + 0.5*(-16.10%) = -17.95%
Realized Return for 2015:
= 0.5*(28.75)+ 0.5*(17.80)= 23.27%
Realized Return for 2016:
= 0.5*(14.50) + 0.5*(30.60) = 22.55%
Realized Return for 2017:
= 0.5*(-3.0) + 0.5*(-8.90) = -5.95%
Realized Return for 2018:
= 0.5*(22.75)+ 0.5*(19.8) = 21.27%
The average return on the portfolio have been during this period is given by ,
Realized Rate of Return = ( - 17.95% + 23.27% + 22.55% - 5.95% + 21.27% )/5 = 8.638%
Small percentage changes in an amount from a company's financial statement may still represent large dollar amounts; therefore, analysts should examine changes in both absolute dollar amounts and percentages.
Answer: You are trying to find out if the statement is true or false? It is FALSE.
Explanation: Analysts should be concerned with the material movements in the company's financial statements. Although as stated in the question, small changes could amount to material movement but that applies in situations where there is a huge outflow but at the same time, there is similar inflow, so the net effect is negligible on a particular financial statements line item. This instance is not relevant to financial analysts but only the concern of internal control and or internal audit.
Financial analysts are interested in what the key drivers of the financial statements are. These drivers in most cases are an avenue to explain what has transpired in the financials between the current period and the preceding one by way of writing a commentary and providing a succinct and holistic explanation of the financial statements.
It would be time consuming and too operational if analysts are concerned with every percentage movement in the financial statements.
Which type of business organization experiences the least governmental regulation? Joint venture Private corporation Limited partnership Public corporation Sole proprietorship
Answer:
The answer is sole proprietorship
Explanation:
Sole proprietorship is the type of business that is set up by one man. It is also called one man's business. This one man is responsible for the debt and liabilities of the business. The entity concept which states that a business and its owner are separate, distinct and different does not apply here. He takes all the business decisions. He directs and gives order. Sole proprietorship is the oldest form of business.
Out of all the business formations, this enjoys the least governmental regulations. No disclosure is required, no business tax is imposed. Government gives this business room to operate freely
A sole proprietorship type of business organization experiences the least governmental regulation. The correct option is D.
There isn't just one law that applies to a sole proprietorship. Since it lacks a distinct legal identity, this is the case. Both incorporation and the few procedures that must be completed are not necessary. The smallest number of regulations apply to sole proprietorships. Most government regulations apply to businesses. A corporation's obligation is different from that of a partnership or a solo proprietor. There is no limit to the responsibility for sole proprietorships.
Thus, the ideal selection is option D.
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A financial institution has entered into an interest rate swap with company X. Under the terms of the swap, it receives 10% per annum and pays six-month LIBOR on a principal of $10 million for five years. Payments are made every six months. Suppose that company X defaults on the sixth payment date (end of year 3) when the interest rate (with semiannual compounding) is 8% per annum for all maturities. What is the loss to the financial institution
Answer:
The loss of the financial institution is $413,000
Explanation:
Let's say that after 3 years the financial institution will receive:
0.5 * 10% of $10million
= 0.5 * 0.1 * 10000000
= $500,000
Then, they will pay 0.5 * 9% of $10M
= 0.5 * 0.09 * 10000000
= $450,000
Therefore, their immediate loss would be $500000 - $450000
= $50000.
Let's assume that forward rates are realized to value the rest of the swap.
The forward rates = 8% per annum.
Therefore, the remaining cash flows are assumed that floating payment is
0.5*0.08*10000000 =
$400,000
Received net payment would be:
500,000-400,000= $100,000. The total cost of default is therefore the cost of foregoing the following cash flows:
Year 3=$50,000
Year 3.5=$100,000
Year 4 = $100,000
Year 4.5= $100,000
Year 5 = $100,000
Discounting these cash flows to year 3 at 4% per six months, the cost of default would be $413,000
Complete the following sentence about margins and alignment with the best choices. Business letters and memos usually have margins of_________ and are usually___________ on the left. Typeface, font, and size influence how your message is read.
Business letters and memos usually have margins of approximately one inch and are usually aligned flush or justified on the left. Typeface, font, and size influence how your message is read.
Flush refers to a specific alignment style commonly used in business letters and memos. When a document is aligned flush on the left, it means that the left edge of the text forms a straight line, creating a clean and professional appearance.
This alignment choice helps maintain consistency and readability by ensuring a uniform left margin throughout the document.
By aligning text flush on the left, it facilitates easy scanning and comprehension for the reader. This alignment style is a standard convention in business communication, contributing to the overall professional presentation and visual appeal of the document.
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Potter Industries has a bond issue outstanding with an annual coupon of 6% and a 10-year maturity. The par value of the bond is $1,000. If the going annual interest rate is 8.6%, what is the value of the bond
Answer:
Value of the bond = $767.70
Explanation:
The value of the bond is the present value of the future cash receipts expected from the bond. The value is equal to present values of interest payment and the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond for Potter Industries can be worked out as follows:
Step 1
Calculate the PV of Interest payment
Present value of the interest payment
PV = Interest payment × (1- (1+r)^(-n))/r
Interest payment = 6% × $1,000 = $60
PV = 60 × (1 - (1.0.086)^(-10)/0.086)
= 60 × 5.4912
= 329.47
Step 2
PV of redemption Value
PV of RV = RV × (1+r)^(-n)
= 1000 × (1.086)^(-10)
= 438.229
Step 3
Calculate Value of the bond
=329.47 + 438.229
=767.7066285
Value of the bond = $767.70
Answer:
$830.16
Explanation:
Tenor: 10 years
Coupon rate: 6% annually -> coupon received annual (PMT) = $1,000 * 6% = $60
Face value (FV): $1,000
Yield To Date (YTD): 8.6% annually
Bond’s price = present value of bond + present value of total coupon received semiannual
Present value of bond = FV/(1+ YTD) ^tenor = 1000/(1+8.6%)^10 = $438.23
Present value of total coupon received semiannual = 60/(1+8.6%)^10 +60/(1+8.6%)^9+….+ 60/(1+8.6%)^1 = $391.93
(we can use excel to calculate the PV of coupon received = PV(rate,tenor,-PMT) = PV(8.6%,10,-60) = 391.93)
⇒ Bond’s price = $438.23+ $391.93 = $830.16
Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $28,000 were put into production. Direct labor of $28,000 (10 workers x 100 hours x $28 per hour) was incurred. Manufacturing overhead equaled $55,000. By the end of the week, the company had manufactured 5,600 hockey sticks.1.Calculate the total prime cost for last week.$2. Calculate the per-unit prime cost. Round your answer to the nearest cent.$ per unit3. Calculate the total conversion cost for last week.$4. Calculate the per-unit conversion cost. Round your answer to the nearest cent.$ per unit
Answer:
Part 1. Calculate the total prime cost for last week
Direct materials 28,000
Add Direct labor 28,000
Prime Cost 56,000
Part 2. Calculate the per-unit prime cost
per-unit prime cost=$56,000/5,600
=$10.00
Part 3. Calculate the total conversion cost for last week
Direct labor 28,000
Add Manufacturing Overheads 55,000
Total conversion cost 83,000
Part 4. Calculate the per-unit conversion cost.
per-unit conversion cost=$83,000/5,600
=$14.82
Explanation:
Part 1. Calculate the total prime cost for last week
Prime Cost = Direct Materials + Direct Labor
Part 2. Calculate the per-unit prime cost
Per Unit Prime Cost = total prime cost/number of units manufactured
Part 3. Calculate the total conversion cost for last week
Conversion Cost = Direct Labor + Manufacturing Overheads
Part 4. Calculate the per-unit conversion cost.
Per-unit conversion cost =Total Conversion Cost / number of units manufactured
The total prime cost last week was $56,000, and the per-unit prime cost was $10. The total conversion cost was $83,000, and the per-unit conversion cost was $14.82.
Explanation:The prime cost is calculated by adding the costs of the direct materials and direct labor. Therefore, the total prime cost for Slapshot Company last week was $28,000 (direct materials) + $28,000 (direct labor) = $56,000.
The per-unit prime cost is calculated by dividing the total prime cost by the number of units produced. Therefore, it is $56,000 ÷ 5,600 hockey sticks = $10 per unit (rounded to the nearest cent).
The conversion cost is calculated by adding the cost of direct labor and manufacturing overhead. Therefore, the total conversion cost last week was $28,000 (direct labor) + $55,000 (overhead) = $83,000.
The per-unit conversion cost is calculated by dividing the total conversion cost by the number of units produced. Therefore, it is $83,000 ÷ 5,600 hockey sticks = <-strong>$14.82 per unit (rounded to the nearest cent).
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You write one IBM July 120 call contract for a premium of $4. You hold the option until the expiration date when IBM stock sells for $121 per share. You will realize a ______ on the investment. $300 profit $200 loss $600 loss $200 profit
Answer:
The answer is a 'short call profit'
Explanation:
Short call profit = Min [0, ($120- $121)(100)] + $400
= $300.
Answer: $300 profit
Explanation: When you write (sell) a call option, you receive the premium from the buyer. In this case, you received $4 per share, or $400 total (since one contract represents 100 shares).
At expiration, IBM stock is $121 per share, which is above the strike price of $120. The buyer will exercise the option, and you will have to sell the stock at $120 per share. You can buy the stock at the market price of $121 and sell it at $120, resulting in a loss of $1 per share, or $100 total. However, you received the $400 premium, so your net profit is $400 - $100 = $300.
Jonathan purchased coffee for $5 at Jennifer's coffee shop, although he was willing to pay $9. Jennifer was willing to accept $3 for the coffee. The results of this transaction are a consumer surplus of _____ and a producer surplus of $______
Answer:
1) Consumer surplus of $4
2) producer surplus of $2
Explanation:
1) The consumer surplus is the difference between the highest price a consumer is willing to pay and the actual market price of the good or service.
Consumer surplus = Maximum price willing to pay - actual price
Consumer surplus = $9 - $5
Consumer surplus = $4
2) The producer surplus is the difference between the market price and the lowest price a producer would be willing to accept.
Producer surplus = Total revenue - total cost.
Total revenue is the revenue received from selling.
Producer surplus = $5 - $3
Producer surplus = $2
Therefore, the results of the transaction between Jonathan and Jennifer are a consumer surplus of $4 and a producer surplus of $2.
The following is the Bravo Unlimited unadjusted Trial Balance. Bravo Unlimited Unadjusted Trial Balance December 31, 2016 Account Title Debit Credit Cash $88,450 Accounts Receivable 231,860 Supplies 6,255 Prepaid Rent 11,000 Equipment 395,285 Accumulated Depreciation $224,260 Accounts Payable 72,555 Wages Payable 0 Capital Stock 220,000 Retained Earnings 111,145 Service Revenue 893,105 Interest Income 1,500 Rent Expense 60,500 Wages Expense 527,260 Supplies Expense 42,520 Utilities Expense 8,595 Depreciation Expense 144,000 Interest Expense 6,840 _______ Totals $1,522,565 $1,522,565 Adjusting Items: 1. A physical inventory shows supplies on hand of $3,000 at year end. 2. The prepaid rent covers December 2016 thru March 2017 rents. 3. December depreciation on equipment is $11,000 per month. 4. At year end Wages of $10,000 were earned but unpaid. Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment. If no entry is required then write "No Entry Required."
Answer:
supplies expense 3255 debit
supplies 3255 credit
--to record supplies consumed--
rent expense 2750 debit
prepaid rent 2750 credit
--to record expired rent--
depreciation expense 11000 debit
acc. Dep. equipment 11000 credit
-to record depreication over the year--
wages expense 10000 debit
wages payable 10000 credit
--to record earned wages from emplyees--
Explanation:
a) we subtract dfrom the book value the physical count of suppliesd and assume the difference as expense. (if there is purcahse we add them)
b) we divide the 11,000 rent over the four months to get the value for December (one-month
c) and d) the values are given
Information necessary to prepare the year-end adjusting entries appears below.
Depreciation on the office equipment for the year is $12,000.
Employee salaries and wages are paid twice a month, on the 22nd for salaries and wages earned from the 1st through the 15th, and on the 7th of the following month for salaries and wages earned from the 16th through the end of the month. Salaries and wages earned from December 16 through December 31, 2018, were $1,700.
On October 1, 2018, Pastina borrowed $72,300 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years.
On March 1, 2018, the company lent a supplier $30,300 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2019.
On April 1, 2018, the company paid an insurance company $6,400 for a two-year fire insurance policy. The entire $6,400 was debited to insurance expense.
$1,010 of supplies remained on hand at December 31, 2018.
A customer paid Pastina $1,980 in December for 1,650 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue.
On December 1, 2018, $2,800 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $1,400 per month.
For requirement 4, Assume that no common stock was issued during the year and that $3,600 in cash dividends were paid to shareholders during the year.
4. Prepare the income statement, statement of shareholders' equity and classified balance sheet for the year ended December 31, 2018
Answer:
Although the Question seems incomplete, i have made out the Income statement, Balance sheet and Shareholders'equity statement from the information provided to ease you into completing it as soon as the full details of questions is provided
Explanation:
Income Statement
For the Year Ended 31 December 2018
Sales Not Provided
Income
Accrued interest on loan (8% x 10/12 x 30,300) $1939.2
Total Income $1,939.2
Expense
Depreciation $12,000
Employee Salaries & Wages ($1,700 x 2 x 12) $40,800
Interest on loan Accruals (12% x 3/12 x $72300) $2,169
Insurance (recognizable in 2018 is half of $6,400) $3,200
Total expenses $58,169
Net Loss -$56,229.8
Dividend Paid -$3,600
Net transfer to retained earnings -$59,829.80
Balance Sheet
As at December 31, 2018
Current Account
Supplier loan (Accounts receivable) A $30,300
Fire insurance policy prepayment $3,200
Stock in hand $1,010
Prepaid rent $1,400
Total Current Assets $35,910
Current Liability
Customer Advance Payment $1,980
Total Current Liability $1,980
Long term liability
12% interest backed 10yr Bank loan $72,300
Total Long term liability $72,300
Total Net Assets -$38,370
Shareholders Fund (Statement of Shareholders'equity)
Retained Earnings transferred from Income statement -$59,829.80
In order to purchase a new freezer in 4 years, the Steakhouse Restaurant has decided to deposit $1,700 in an account that earns 2% per year compounded monthly for 4 years. How much money will be in the account in 4 years
Answer:
$ 1844
Explanation:
A = P (1 + r / n) ^ nt ; where
A = Final Amount , P = Principal base, r = Interest rate , t = no. of time periods (usually years) , n = compounding in a time period (annually)
Given : P = 1700 , r = 2% , t = 4 , n = 12
A = 1700 [ 1 + 0.02 / 12 ] ^ (12 x 4)
1700 [ 1 + 0.0017 ] ^ (12 x 4)
1700 [ 1.0017 ] ^ 48
1700 [1.0849]
= 1844
Counton Carriage Company offers guided horse-drawn carriage rides through historic Anderson comma South Carolina. The carriage business is highly regulated by the city. Counton Carriage Company has the following operating costs during April: LOADING...(Click the icon to view the information.) During April (a month during peak season), Counton Carriage Company had 12 comma 800 passengers. Sixty percent of passengers were adults ($26 fare) while 40% were children ($18 fare). Requirements 1. Prepare the company's contribution margin income statement for the month of April. Round all figures to the nearest dollar. 2. Assume that passenger volume increases by 10% in May. Which figures on the income statement would you expect to change, and by what percentage would they change? Which figures would remain the same as in April?
Answer: please refer to the explanation section
Explanation:
The question is incomplete the Variable costs were not given in the question. contribution margin income statement requires variable costs to be subtracted from sales to arrive at a contribution margin. We will assume variable costs per unit were $ 10 for each horse drawn carriage rides in order to be able to prepare a contribution Margin income statement properly.
1. Contribution Margin Income Statement
*Sales 291840
**variable costs - 128000
contribution margin 163840
* sales from adults = (12800 x 60%) x $26 = 7680 x 26 = 199680
sales from childrens = (12800 x 40%) x $18 = 92160
total revenue = 199680 + 921840 = $ 291840
* Variable costs = 12800 x $10 = $128000
2. Effects of a 10 rise in volume (number of passengers)
when the number of passengers rise by 10%, Sales, Variable costs and contribution margin will be affected. Contribution margin will be affected because a change in sales or variable costs directly causes a change in the contribution margin.
Sales will increase by 10%
variable costs will increase by 10%
contribution margin will increase by 10%.
Figures that would remain the same in April
Fixed costs will remain the same regardless of the number of passengers in a month
From the following particulars of Purple New Co., prepare the bank reconciliation statement as on May 31, 2016.
a. The bank statement balance is $4,000.
b. The cash account balance is $3,950.
c. Outstanding checks amounted to $960.
d. Deposits in transit are $900.
e. The bank service charge is $75.
f. Interest added to the checking account by the bank is $150.
g. A check drawn for $65 was incorrectly charged by the bank as $150.
Prepare a bank reconciliation for Purple New Co. for May 31, 2016. Purple New Co. Bank Reconciliation May 31, 2016
Answer:
Explanation:
Bank reconciliation statement:
Cash account balance $3950
Less: Deposit in transit ($900)
Less: Bank service charges ($75)
Add: Interest added to the checking account by the bank $150
Add: Checks outstanding $960
Less: Check drawn incorrectly charged by the bank ($85) [150-65]
Adjusted balance $4,000
Final answer:
To reconcile Purple New Co.'s bank statement, several adjustments were made including deposits in transit, outstanding checks, bank interest, service charges, and an error correction for a mischarged check. The adjusted bank balance came to $4,100, and after reconciling items, the corrected cash account should match this balance.
Explanation:
Purple New Co. Bank Reconciliation Statement
As of May 31, 2016, Purple New Co. needs to reconcile its bank statement with its cash account records. Let's go through the items one by one to prepare the bank reconciliation statement.
Start with the bank statement balance: $4,000.Add deposits in transit: $900. These are amounts the company has received and recorded, but the bank has not yet processed.Subtract outstanding checks: $960. These are checks Purple New Co. has issued, but the recipients have not yet cashed.Add interest credited by the bank: $150. This is interest earned on the bank balance.Subtract bank service charge: $75.Correct for the error in check charging: the check was for $65 but was charged as $150. Add back the difference: $85 ($150 - $65).Adjusting the bank statement balance with these items gives us the adjusted bank balance. Now, let's prepare the bank reconciliation statement:
Bank statement balance: $4,000Add: Deposits in transit: $900Less: Outstanding checks: $960Add: Interest added by bank: $150Less: Bank service charge: $75Add: Error in check charging correction: $85Adjusted bank balance: $4,000 + $900 - $960 + $150 - $75 + $85 = $4,100.
The cash account balance shows $3,950. To reconcile with the adjusted bank balance, we have to align the two balances:
Cash account balance: $3,950Add: Deposits in transit: $900Less: Outstanding checks: $960Adjusted cash account balance: $3,890The difference of $210 ($4,100 - $3,890) represents the reconciled items such as interest and bank service charges. The corrected cash account after accounting for all reconciling items should match the adjusted bank balance of $4,100.
Describe the reasons Lyft entered strategic alliances with GM and Waymo? Are some reasons more important than others? Why or why not? Explain.
Answer:
PART A
(1) In order to meet its demand for cars
(2) in order to use Waymo's Technological advancement in development self driving cars with GM.
(3) In order to strategically position the company to compete favourably in the car lift market and car sharing.
PART B
NO,all the reasons are equally important.
PART C
They are all needed in order to strategically position the company in terms of availability of cars with the required modern technological trends needed to compete favourably in the market for lift cars and car sharing.
Explanation:GM(General Motors) is an American car manufacturer with a long time experience in auto Manufacturing.
Lyft is a car lift and car sharing service provider, it is an American brand with its head quarters in California,United States of America.
Waymo(way forward in mobile)is an American self driven vehicles Manufacturing Company, it is a member of the Alphabet Inc, who also own Google.
Final answer:
Lyft formed strategic alliances with GM and Waymo to achieve economies of scale, leverage expertise in automotive manufacturing and self-driving technology, and to evolve into a comprehensive mobility service provider aiming at economies of scope.
Explanation:
The reasons Lyft entered strategic alliances with General Motors (GM) and Waymo are multifaceted. One crucial driver is the pursuit of economies of scale in the auto and mobility industries. By partnering with GM, Lyft aimed to leverage the automaker's manufacturing capabilities and deep industry knowledge to accelerate the development and deployment of autonomous vehicles. Meanwhile, the alliance with Waymo, a leader in self-driving technology, was likely targeted at integrating cutting-edge autonomous driving technology into Lyft's ride-sharing network.
Another significant factor for these strategic alliances is the concept of economies of scope. Lyft's primary aim is to evolve from just a ride-hailing service to a comprehensive mobility service provider. This would potentially reduce costs and increase demand as services become more integrated. The partnerships would help Lyft in becoming a 'one-stop-shop' for mobility services, similar to how Uber has expanded its offerings.
While both reasons are vital, the need for technological advancement to stay competitive in an evolving market might be slightly more critical. Technological changes and innovation often necessitate substantial investment and expertise. Aligning with companies like GM and Waymo gives Lyft access to necessary resources and a competitive edge in a market where the ability to quickly adapt to technological advancements is key to sustainability and success.
Tracy Company, a manufacturer of air conditioners, sold 270 units to Thomas Company on November 17, 2021. The units have a list price of $400 each, but Thomas was given a 25% trade discount. The terms of the sale were 3/10, n/30. Thomas uses a perpetual inventory system.
1. Prepare the journal entries to record the (a) purchase by Thomas on November 17 and (b) payment on November 26, 2021. Thomas uses the gross method of accounting for purchase discounts.
2. Prepare the journal entry for the payment, assuming instead that it was made on December 15, 2021.
1. Record the purchase of air conditioners.
Answer:
See explanation section
Explanation:
Requirement 1
November 17, 2021 Merchandise Inventory Debit $81,000 (Note - 1)
Accounts payable - Tracy Company Credit $81,000
Calculation - $270 units × $400 = $108,000
$108,000 × (100 - 25)% = $81,000
To record the purchase of office equipment on account with a trade discount and a credit terms of 3/10, n/30. As the company uses perpetual inventory system, merchandise inventory is debit.
November 26, 2021 Accounts payable - Tracy Company Debit $81,000
Cash Credit $78,570
Merchandise Inventory Credit $2,430
As Thomas gave the payment within 10 days, Tracy Company provided a 3% discount according to the terms.
Calculation - $81,000 - ($81,000 × 3)% = $81,000 - 2,430 = $78,570
Requirement 2
If Thomas paid on December 15, 2021, Tracy company would not give any discount. However, Thomas paid within 30 days.
Therefore, the journal entry to record the payment is as follows:
December 15, 2021 Accounts payable - Tracy Company Debit $81,000
Cash Credit $81,000
This time he did not receive the discount as he failed to pay within 10 days to get discount.
A collection of data that is so large in scale, different in content, and fast in accumulation that is difficult to store and analyze using traditional methods is called ________
Answer:
Big Data
Explanation:
Big data is referred toas a set of large data that is complex and so large in volume that traditional way cannot be used to analyze and store.
Answer:
Big data.
Explanation:
Big data refers to massive amount of data that can be structured or unstructured and it is difficult to process using traditional methods and software. It exceeds traditional data processing speeds.
Big data is collected from a number of sources such as emails, applications, databases, mobile phones, and servers.
This data when analysed can give a business insights that will make companies improve their operations, increase revenue, get and retain customers, and make faster decisions.
For example big data may contain information of millions of people from various sources such as the internet, sales or contact centres. With sizes made up of petabytes ( 1,024 terabytes). The data is usually loosely structured and may be incomplete.
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $38,000 and then sells this inventory on account on March 17 for $58,000. Record transactions for the purchase and sale of inventory. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
Debit Inventory $38,000
Credit Accounts Payable $38,000
Being entries to record inventory purchased on account.
Debit Cost of goods sold $38,000
Credit Inventory $38,000
Being entries to account for cost of items sold.
Debit Accounts receivable $58,000
Credit Revenue account $58,000
Being entries to recognize the sale of inventories.
Explanation:
When inventory is purchased on account, it means that cash was yet to be paid for the purchase and as such a liability should be recorded.
The entries required for the purchase of inventory would therefore be
Debit Inventory $38,000
Credit Accounts Payable $38,000
Being entries to record inventory purchased on account.
When the items are sold on account, it means cash was not collected at the point of sale. This creates another asset called accounts receivable. Entries required on sale
Debit Cost of goods sold $38,000
Credit Inventory $38,000
Being entries to account for cost of items sold
Then
Debit Accounts receivable $58,000
Credit Revenue account $58,000
Being entries to recognize the sale of inventories.
Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day. b. A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and the effective capacity is five furnaces a day. c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems? Explain.
Answer:
Explanation:
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For each of the following statements, indicate whether it is true, false, or uncertain and EXPLAIN WHY. a. In the long-run the typical monopolistically competitive firm earns no economic profit and that indicates that the firm is economically (productively) efficient. b. Monopolists have complete pricing freedom as they seek to maximize profits. c. In the short-run, if price drops below the average total cost, the perfectly competitive firm must shut down immediately.
Answer:
a.
FALSE
The argument above is in part inaccurate. In the long run, the monopoly dominant firms gain no economic profit at the profit generating production as their LRAC= LRAR at.
The firm is not effective economically (productively) though.
A monopolistically dominant firm is not successful effective because it does not achieve the average cost curve at the minimum level. The difference between supply and supply of the equilibrium at the minimum average cost is called overcapacity.
b.
FALSE
The monopolist has the power to make the price to maximize the profit. The monopolist, however, always has to respect demand rule of law. Its AR-curve is a sloping downward curve.
It indicates that if the monopolist decides to increase production, he will have to lower the price. It shows that to increase income, the monopolist can set its price but can not set any price.
c.
FALSE
The shut down point for reasonably competitive firms is Price= AVC.
When the price falls below the average cost of the product, otherwise the business must shut off.
Otherwise, the business must continue to manufacture until the price falls below the average cost of the product. It will still deliver, even if the average income or price is below the average output.
Problem 13-02A a-c Whispering Winds Corporation had the following stockholders’ equity accounts on January 1, 2020: Common Stock ($4 par) $400,000, Paid-in Capital in Excess of Par—Common Stock $185,000, and Retained Earnings $110,000. In 2020, the company had the following treasury stock transactions. Mar. 1 Purchased 6,500 shares at $8 per share. June 1 Sold 1,500 shares at $13 per share. Sept. 1 Sold 2,000 shares at $11 per share. Dec. 1 Sold 1,500 shares at $6 per share. Whispering Winds Corporation uses the cost method of accounting for treasury stock. In 2020, the company reported net income of $34,000.
Answer:
The journal entries, open accounts and stockholders equity section for the following information are given below.
Explanation:
Date Account Titles and Explanation Debit Credit
Mar. 1 Treasury Stock 52000
Cash 52000
June 1 Cash 19500
Treasury Stock 12000
Paid-in Capital from Treasury Stock 7500
Sept. 1 Cash 22000
Treasury Stock 16000
Paid-in Capital from Treasury Stock 6000
Dec. 1 Cash 9000
Paid-in Capital from Treasury Stock 3000
Treasury Stock 12000
Dec. 31 Income Summary 34000
Retained Earnings 34000
Paid-in Capital from Treasury Stock
Dec. 1 3000 June 1 7500
Sept. 1 6000
Bal. 10500
Treasury Stock
Mar. 1 52000 June 1 12000
Sept. 1 16000
Dec. 1 12000
Bal. 12000
Retained Earnings
Bal. 110000
Dec. 31 34000
Bal. 144000
WHISPERING WINDS CORPORATION
Balance Sheet (Partial)
December 31, 2020
Stockholders' Equity
Paid-in Capital
Capital Stock
Common Stock 400000
Additional Paid-in Capital
Paid-in Capital in Excess of Par-Common Stock 185000
Paid-in Capital from Treasury Stock 10500
Total Additional Paid-in Capital 195500
Total Paid-in Capital 595500
Retained Earnings 144000
Total Paid-in Capital and Retained Earnings 739500
Less
Treasury Stock (12000)
Total Stockholders' Equity $ 727500
To evaluate the worth of a Babble, Inc. share, one would consider the present and future dividends, discounted to their present value. An investor would analyze the potential returns from immediate profits and the anticipated dividends over the next two years.
Explanation:Buying and selling stocks is a fundamental activity in the finance world, directly impacting an investor's net profit and the overall valuation of companies involved. Let's dissolve the case for Babble, Inc. into its financial anatomy. To ascertain what an investor would be willing to pay for a share of the company, we would need to examine the expected dividends paid out over the timespan prior to the company's disbandment. Given the profit projections totaling $60 million over two years and a total share count of 200, it can be calculated by adding the present value of expected dividends. For example, a share's value today might include the present value of $15 million / 200 shares plus the present value of future dividends, discounted back into today's dollars.
What are the benefits of the corporation in comparison with the partnership and proprietorship structures? How is equity treated and reported differently in this structure?
Corporations offer limited liability, perpetual life, and simpler capital raise compared to partnerships and proprietorships. In corporations, equity is reported as share capital, retained earnings, and additional paid-in capital.
Explanation:In comparison with partnership and proprietorship structures, the corporation offers several benefits. Corporations are characterized by limited liability, which insulates owners from personal liability for business debts. They also have perpetual life and can continue operations regardless of changes in ownership. Furthermore, raising capital is often easier for corporations as they can sell shares of stock.
Compared to proprietorships and partnerships, equity is reported differently in corporations. In a corporation, equity is reported as share capital (stock), retained earnings (profit kept within the company after dividends are paid), and additional paid-in capital (amount paid by investors over and above the par value of shares). This contrasts with proprietorships and partnerships where equity primarily represents the owner(s) capital or investment.
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Marionnette International is a worldwide operator and franchisor of hotels and related lodging facilities totaling nearly $1.6 billion in net property and equipment. Assume that Marionnette replaced furniture that had been used in the business for five years. The records of the company refilected the following regarding the sale of the existing furniture.
Furniture (cost) $6,060,000
Accumulated depreciation 5,551,000
Required:
1. Prepare the journal entry for the disposal of the furniture, assuming that it was sold for: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars not in millions.)
a. $509,000 cash
b.$1,619,000 cash
c.$407,000 cash
Answer: The following journal entries apply in each of the scenarios:
(a) If the furniture was sold for $509,000 cash,
Debit ($) Credit ($)
Accumulated depreciation 5,551,000
Furniture (cost) 6,060,000
Cash (sale proceeds) 509,000
(Being entries to record disposal of furniture at the net book value)
(b) If the furniture was sold for $1,619,000 cash,
Debit ($) Credit ($)
Accumulated depreciation 5,551,000
Furniture (cost) 6,060,000
Gain on disposal of asset 1,110,000
Cash (sale proceeds) 1,619,000
(Being entries to record disposal of furniture)
(c) If the furniture was sold for $407,000 cash,
Debit ($) Credit ($)
Accumulated depreciation 5,551,000
Furniture (cost) 6,060,000
Loss on disposal of asset 102,000
Cash (sale proceeds) 407,000
(Being entries to record disposal of furniture)
Explanation: Normally, most organizations dispose their assets using the net book value (cost minus the accumulated depreciation) to determine the price to sell the assets. So, most of them do not intend to sell below the NBV, they usually add margins to make profit except in certain other considerations. To recognize the disposal, the cost (asset account) has to be credited while the accumulated depreciation has to be debited. Of course the sales proceed goes into your cash account as receipt (debit), then the difference between the sales proceed and the NBV is either a gain on disposal or loss.