Answer:
b. false
Explanation:
The journal entry is shown below:
Cash A/c Dr $1,350 (450 shares × $3)
Paid in capital - Treasury stock $2,000
Retained Earnings A/c Dr $1,150
To Treasury Stock A/c $4,500 (450 shares × $10)
(Being treasury stock is sold at lower price and the remaining amount would be debited to the retained earning account)
Hence, the given statement is false
The Phantom Corporation started 6,700 units during February. Phantom started the month with 890 units in process (40% complete) and ended the month with 590 units in process (40% complete). How many units were transferred to the Finished Goods Inventory during February
Answer:
7,000 units
Explanation:
The units which were transferred to the Finished goods inventory during the month of February is computed as:
Units transferred to Finished goods inventory = Started units during February + Started the month with units in process - Ended the month with units in process
where
Started units during February is 6,700
Started the month with units in process is 890
Ended the month with units in process is 590
Putting the values above:
Units transferred to Finished goods inventory = 6,700 + 890 - 590
Units transferred to Finished goods inventory = 7,590 - 590
Units transferred to Finished goods inventory = 7,000
During February, Phantom Corporation transferred 6,880 units to the Finished Goods Inventory after considering the work in process at the beginning and the end of the month and the number of units started.
Explanation:To calculate the number of units transferred to the Finished Goods Inventory by Phantom Corporation during February, we need to account for the work in process (WIP) at the beginning and the end of the month, as well as the number of units that were started and completed during the month.
At the start of the month, there were 890 units in process that were 40% complete. This means that 60% of the work was still required to complete these units. During the month, Phantom started an additional 6,700 units. By the end of the month, there were 590 units still in process and at the same 40% completion level. Thus, also for these units, 60% of the work is required for completion.
To find the number of units completed during the month we need to perform the following steps:
Calculate the equivalent units for beginning WIP: 890 units * 60% = 534 units.Calculate the equivalent units for ending WIP: 590 units * 60% = 354 units.Add the equivalent units for beginning WIP to the units started during the month and then subtract the equivalent units for ending WIP: 534 units + 6,700 units - 354 units.Therefore, the number of units transferred to the Finished Goods Inventory is:
534 units + 6,700 units - 354 units = 6,880 units.
So, during February, Phantom Corporation transferred 6,880 units to the Finished Goods Inventory.
On June 10, Concord Corporation purchased $8,050 of merchandise on account from Sarasota Company, FOB shipping point, terms 1/10, n/30. Concord pays the freight costs of $510 on June 11. Damaged goods totaling $450 are returned to Sarasota for credit on June 12. The fair value of these goods is $80. On June 19, Concord pays Sarasota Company in full, less the purchase discount. Both companies use a perpetual inventory system.
Solution:
The journal entries are as follows in the books of Concord Corporation
On June 10
Merchandise inventory A/c Dr $8,050
To Account payable A/c $8,050
(Being the inventory is purchased on account)
On June 11
Merchandise inventory A/c Dr $510
To Cash A/c $510
(Being freight is paid by cash)
On June 12
Accounts payable A/c Dr $450
To Merchandise Inventory A/c $450
(Being goods returned is recorded)
On June 19
Accounts payable A/c Dr $7,600 ($8,050 - $450)
To Cash A/c $7,524 ($7,600 × 1%)
To Merchandise Inventory A/c $76
(Being payment is recorded)
What is the present value of $540,000 to be paid in 9 years? The annual interest rate is 7%. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.)
Answer:
$293,724.22
Explanation:
The present value of a single cash flow expected at a future date is its worth today if it is discounted at given rate or return.
This can be determined using the formula below:
PV = FV × (1+r)^(-n)
Where PV = Present Value, FV = Future Value, r - interest rate per period
n - number of periods
PV = $540,000 × (1.07)^(-9)
= $293,724.221
Present Value of $540,000 expected in year 9 = $293,724.22
The Ohio State Studies narrowed the independent dimensions of leader behavior to two that substantially accounted for most of the leadership behavior described by employees: consideration and ________.
A. Initiating structure
B. Constructing vision
C. Empathy
D. Charisma
E. Employee-orientation visibility
Answer: A- Initiating structure
Explanation: Initiating structure is the magnitude to which a leader describes the leader and functions of a person belonging to an organization, initiates activities, systematically arrange the things the organization does or has done and describes the nature and how works are to be completed successfully. This method of leadership is usually concentrated on and devoted to completing certain tasks that partake in the success of a larger work.
Hope & Faith Company reports net income of $40,000.
The partnership agreement provides for annual salaries of $24,000 for Hope and $15,000 for Faith.
Interest allowances of $4,000 and $6,000, respectively.
Any remaining is to be shared 70% and 30%, respectively.
Instructions: Prepare in proper format the amount of net income distributed to each partner.
Explanation:
The computation of net income distributed to each partner is given below:-
Hope Faith Total
Annual Salary $24,000 $15,000 $39,000
Interest allowance $4,000 $6,000 $10,000
Total salary and interest $28,000 $21,000 $49,000
Remaining deficiency ($9,000)
($49,000 - $40,000)
Hope ($9,000 × 70%) ($6,300)
Faith ($9,000 × 30%) ($2,700) ($9,000)
Total division net income $21,700 $18,300 $40,000
On January 1, 2020, Morgan Enterprises issued 8%, 20-year bonds with a face amount of $5,000,000 at 101. Interest is payable annually on January 1. Prepare the entries to record the issuance of the bonds and the first annual interest accrual and amortization assuming that the company uses straight-line amortization
Explanation:
The journal entries are shown below:
1. Cash A/c Dr $ 5,050,000
To Bonds payable A/c $5,000,000
To Premium on Bonds payable A/c $50,000
(Being bond is issued)
2. Interest Expense A/c Dr $3,97,500
Premium on bonds payable A/c $2,500 ($50,000 ÷ 20)
To Interest payable A/c $400,000 ($5,000,000 × 8%)
(Being the interest expense is recorded)
Assuming diminishing returns, a. the increase in output growth from an increase in the saving rate rises over time, and that, other things the same, poor countries should grow faster than rich ones. b. the increase in output growth from an increase in the saving rate falls over time, and that, other things the same, poor countries should grow faster than rich ones. c. the increase in output growth from an increase in the saving rate rises over time, and that, other things the same, rich countries should grow faster than poor ones. d. the increase in output growth from an increase in the saving rate falls over time, and that, other things the same, rich countries should grow faster than poor ones.
Answer: D. the increase in output growth from an increase in the saving rate falls over time, and that, other things the same, rich countries should grow faster than poor ones.
Explanation: Diminishing returns is a term used in economics to describe the reduction in marginal output level of a business entity as the amount of a singular factor of production is increased. THE LAW OF DIMINISHING RETURNS IS OF THE FUNDAMENTAL PRINCIPLES IN ECONOMICS OFTEN APPLIED TO PRODUCTION PROCESSES. The law states that if all other factors are kept constant in order to increase the production of a particular product or factor,it will get to a time when the actual increment per unit output will be reduced.
The facts that a sole proprietorship, as a business, pays no corporate income tax, and that it is easily and inexpensively formed, are two key advantages to that form of business. True False
Answer:
The statement is: True.
Explanation:
Sole proprietorships are businesses where the owner is the only individual in charge of the entity and the operations. This type of entity is easy to create and dismantle because there are not many regulations for them. The sole proprietor does not pay corporate taxes since the business income is included in the personal tax return the owner sends to the Internal Revenue Service (IRS).
Sole proprietorships represented approximately 73% of businesses in the U.S. during 2011, according to the Census Bureau.
Which sentence de-emphasizes the credit refusal?We cannot grant you credit at this time, but we welcome your cash business and encouage you to reapply in the future.Although credit cannot be granted at this time, we welcome your cash business and encourage you to reapply in the future.
Answer:
Although credit cannot be granted at this time, we welcome your cash business and encourage you to reapply in the future.
Explanation:
In business communication when conveying a message that is not pleasant to the other party, it is advisable to demphasise the bad news and focus on the good news in your statement.
This will create a more positive environment that promotes future business.
In the first statement the client was just told - We cannot grant your credit at this time.
This emphasises the bad news.
In the second statement the client was told - Although credit cannot be granted at this time.
Using the word although demphasises the credit rejection and focuses more on the client's cash business and the possibility of reapplying in the future.
On March 29, customers who owe $13,981 on account to Sonic Sales Company submit payments of $7,687. Required: Journalize this event. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Debit Cash accounts $7,687
Credit accounts receivables $7,687
Being entries to record cash receipt from customer.
Explanation:
When customers purchase on account, the entries required are credit sales and debit accounts receivables.
When cash is paid, Debit cash account and credit accounts receivables with the amount paid. This has a net effect on account receivables and so the balance in the account is reduced.
Victryl Company applies overhead based on direct labor hours. At the beginning of the year, Victryl estimates overhead to be $700,000, machine hours to be 200,000, and direct labor hours to be 35,000. During February, Victryl has 5,000 direct labor hours and 10,000 machine hours.
If the actual overhead for February is $98,300, what is the overhead variance, and is it overapplied or underapplied?
a.$1,700 overapplied
b.$600 overapplied
c.$1,000 underapplied
d.$1200 underapplied
e.$800 overapplied
Answer:
a.$1,700 over applied
Explanation:
For computing the overhead variance, first we have to compute the predetermined overhead rate which is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
= $700,000 ÷ 35,000 hours
= $20
Now we have to find the applied overhead which equal to
= Actual direct labor-hours × predetermined overhead rate
= 5,000 hours × $20
= $100,000
So, the overhead variance equals to
= Actual manufacturing overhead - applied overhead
= $98,300 - $100,000
= $1,700 over-applied
What is the present value (rounded to nearest dollar) of a series of bond interest payments of $2,000 each paid semiannually for 4 years when the annual interest rate is 8%?
a.$6,624
b.$11,465
c.$13,465
d.$16,000
Answer:
The correct answer is C.
Explanation:
Giving the following information:
A series of bond interest payments of $2,000 each paid semiannually for 4 years. The annual interest rate is 8%
First, we need to calculate the real interest rate:
Interest rate= 0.08/2= 0.04 semiannually
Now, we need to calculate the future value of the cash flow, and then the present value.
Future value:
FV= {A*[(1+i)^n-1]}/i
A= semi annual deposit= 2,000
i= 0.04
n= 2*4= 8
FV= {2,000*[(1.04^8)-1]}/ 0.04= $18,428.45
We calculate the present value:
PV= FV/(1+i)^n
PV= 18,428.45/ (1.04^8)= $13,465.49
On January 1, 2015, a company had 250,000 shares of its $2 par value common stock outstanding. On March 1, the company sold an additional 500,000 shares on the open market at $20 per share. the company issued a 20% stock dividend on May 1. On August 1, the company purchased 280,000 shares and immediately retired the stock. On November 1, 400,000 shares were sold for $25 per share. What is the weighted-average number of shares outstanding for 2015?
a. 477,777
b. 344,444
c. 750,000
d. 1,020,000
e. none of these answers are correct
Answer:
Answer is Option C: 750,000.
Explanation:
A stock dividend is a payment that is made to the shareholders in shares and not in cash. It increases the number of common shares that are representing the shareholder's investment. When this occur, a company needs to restate the shares that were outstanding before the stock dividend.
When we calculate the weighted-average number of shares outstanding for 2015, we sum it for the whole year for all quarters.
Total for the whole year will come as 750,000.
The Waking Dead Co provides services for both cash and on account The accounts are adjusted monthly, For September, the folowing information is available Accounts Receivable on September 1st is $22,400 Allowance for Doubtful Accounts on September 1st is $4,400 Services provided during September for cash $20,000 Services provided during September on account $45,000 During the month collections on account were $34,400 and accounts wrilten off as bad debts were $2.000 The Walking Dead essmates bad detes at อ% of credt sales Do not use the dollar sign or a decimal in your answer. Commas are ok. What is the September 30th net realzable value of Accounts Recelvable?
Answer:
$25,000
Explanation:
Given that,
Accounts receivable:
Beginning balance 1 September = $22,400
Services on account = $45,000
Cash collected = $34,400
Written off accounts = $2,000
Allowance For Doubtful accounts:
Beginning balance 1 September = $4,400
Adjusted balance for Accounts receivables on 30 Sept ember:
= Beginning balance 1 September + Services on account - Cash collected - Written off accounts
= $22,400 + $45,000 - $34,400 - $2,000
= $31,000
Adjusted balance for Allowance For Doubtful accounts on 30 Sept ember:
= Beginning balance 1 September - Written off accounts + Bad Debt Expense
= $4,400 - $2,000 + ($45,000 × 8%)
= $4,400 - $2,000 + $3,600
= $6,000
Therefore, the September 30th net realizable value of Accounts Receivable is calculated as follows:
= Accounts receivables – Allowance for Doubtful accounts
= $31,000 - $6,000
= $25,000
The September 30th net realizable value of Accounts Receivable for The Walking Dead Co. is $26,120.
Steps to Calculate the Net Realizable Value of Accounts Receivable
Starting Accounts Receivable on September 1st: $22,400Services provided during September on account: $45,000Total accounts receivable at the end of September before collections and write-offs: $22,400 + $45,000 = $67,400Collections on account during September: $34,400Accounts are written off as bad debts: $2,000Total accounts receivable on September 30 before adjusting for doubtful accounts: $67,400 - $34,400 - $2,000 = $31,000Allowance for Doubtful Accounts on September 1st: $4,400Write-offs reduce the allowance, resulting in an adjusted allowance: $4,400 - $2,000 = $2,400Bad debt estimation: 8% of $31,000 = $2,480New Allowance for Doubtful Accounts: $2,400 + $2,480 = $4,880Net Realizable Value of Accounts Receivable: $31,000 - $4,880 = $26,120Complete Question:
The Walking Dead Co. provides services for both cash and on-account. The accounts are adjusted monthly. For September, the following information is available:
Accounts Receivable on September 1st is $22,400
Allowance for Doubtful Accounts on September 1st is $4,400.
Services provided during September for cash $20,000.
Services provided during September on account for $45,000.
During the month collections on account were $34,400 and accounts written off as bad debts were $2,000.
The Walking Dead estimates that 8% of accounts receivable will default (not pay).
What is the September 30th net realizable value of Accounts Receivable?
The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 300,000 $ 30 B 400,000 35 C 500,000 10 D 700,000 15 The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $30,000. There are 4 million shares outstanding. What is the net asset value of the fund
Answer:
The Net sales value of the fund is $9.62
Explanation:
Net asset is the net value of assets and liabilities. Net asset value of fund the the value of all the investment less any liability associated with those investment.
Stock Shares Price Total
A 300,000 $30 $9,000,000
B 400,000 $35 $14,000,000
C 500,000 $10 $5,000,000
D 700,000 $15 $10,500,000
Total $38,500,000
Net Asset value = Total asset value - Total Liabilities = $38,500,000 - $30,000 = $38,470,000
Number of outstanding shares = 4,000,000
NAV = Net asset value / number of outstanding shares = $38,470,000 / 4,000,000 = 9.6175 = $9.62
The Net Asset Value (NAV) of the Fingroup Fund is calculated by determining the total value of the stocks, subtracting the management fee, and then dividing by the number of shares outstanding. The NAV for this fund comes out to approximately $9.618 per share.
Explanation:The Net Asset Value (NAV) of a fund is calculated by taking the total market value of all securities owned by the fund, subtracting the total liabilities, and dividing by the total number of shares outstanding. In this case, we need to calculate the total market value of all stocks, subtract the management fee, and then divide by the number of shares outstanding.
First, calculate the total value of each stock by multiplying the number of shares by the price per share. For stock A that's 300,000 * $30 = $9,000,000. Do the same for stocks B, C, and D to get $14,000,000, $5,000,000, and $10,500,000 respectively. Add these amounts to get the total value of the portfolio: $9,000,000 + $14,000,000 + $5,000,000 + 10,500,000 = $38,500,000. Subtract the management fee from this amount: $38,500,000 - $30,000 = $38,470,000. This is the total net asset value of the fund. Finally, divide this amount by the number of shares outstanding to get the NAV per share: $38,470,000 / 4,000,000 = $9.618 per share.Therefore, the Net Asset Value of the fund per share is approximately $9.618.
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If a test is administered to prospective applicants, what kind of validity is intended to be measured?
a) predictive validity
b) concurrent validity
c) content validity
d) face validity
Answer:
predictive validity
Explanation:
predictive validity is the extent to which a score on a scale or test predicts scores on some criterion measure. For example, the validity of a cognitive test for job performance is the correlation between test scores and, for example, supervisor performance ratings.
Answer the questions about Keynes and his history. John Maynard Keynes famously said: "In the long run, we are all dead." the workers will revolt unless the government acts quickly." the government can solve all problems." all you need is love." the economy will decline." Keynes was an economist during the Great Depression. During the Great Depression there was high unemployment and high inflation. high unemployment and low inflation. high unemployment and high deflation. low unemployment and high inflation. low unemployment and low inflation.
Final answer:
John Maynard Keynes, a prominent economist during the Great Depression, stated that 'In the long run, we are all dead,' emphasizing the need for immediate economic policy action. He advocated for governmental intervention during economic downturns, during a time characterized by high unemployment and high deflation.
Explanation:
John Maynard Keynes famously said, "In the long run, we are all dead." This quote captures his belief that economic policies should have immediate impacts rather than waiting for long-term market corrections. During the Great Depression, Keynes challenged the classical economic thought, advocating that the government should take an active role in the economy to combat recessions and depressions. The correct characterization of the Great Depression period was high unemployment and high deflation, not inflation. His seminal work, The General Theory of Employment, Interest, and Money, argued that underspending was a major cause of economic downturns and proposed government intervention to stimulate spending and manage the economy.
A food product is high in soluble fiber which means the food label can make the health claim that consuming it is associated with a lowered risk of ____.
Answer:
The correct answer is letter "A": heart disease.
Explanation:
Abnormal blood cholesterol, Low-Density Lipoprotein (LDL), or High-Density Lipoprotein (LDL) trigger heart diseases. Soluble fiber like oatmeal, nuts, fruits, and beans can lower blood pressure and cholesterol, thus, decrease the risk of suffering heart disease. Besides, soluble fiber creates a full sensation which helps people lose weight.
According to PCN analysis, which process region includes process steps in which one participant is acting on another participant's resources, such as their information, materials, or technologies?
Options:
A. Independent processing
B. Surrogate Interaction
C. Direct interaction
D. Resource processing
E. Process domain Interaction.
Answer:B. Surrogate Interaction
Explanation:
PCN(preassigned control number) PROGRAM is a program system designed to allow the Library of Congress to assign control numbers in advance of a publication to those titles which may be included to collections of materials in the Library. PCN number is only assigned to publishers in the United States of America.
Surrogate Interaction is a type of Interaction taking place in a PCN program where there are no direct interaction.
Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given:
Possiable Market Reaction Sales in Units Probabilites
Low Response 20 0.10
Moderate Response 40 0.30
Hight Response 55 0.40
Very High Response 70 0.20
a. What is the expected value of sales for the new product?
b. What is the standard deviation of unit sales?
Answer:
Explanation:
a. Expected value of unit sales for the new product= 20*0.10 + 40*0.30 + 55*0.40 + 70*0.20 = 2+12+22+14 = 50 units
b.
Low response sales in units = 20:Deviation from the expected value of 50 sales: -30
(Sales-50)^2 = 900
Probability = 0.10
Probability*(Sales-50)^2 = 0.10*900 = 90
Moderate response sales in units = 40:Deviation from the expected value of 50 sales: -10
(Sales-50)^2 = 100
Probability = 0.30
Probability*(Sales-50)^2 = 0.30*100 = 30
High response sales in units = 55:Deviation from the expected value of 50 sales: 5
(Sales-50)^2 = 25
Probability = 0.40
Probability*(Sales-50)^2 = 0.40*25 = 10
Very High response sales in units = 70:Deviation from the expected value of 50 sales: 20
(Sales-50)^2 = 400
Probability = 0.20
Probability*(Sales-50)^2 = 0.20*400 = 80
Variance = 90+30+10+80 = 210
Standard deviation = root of 210 = 14.49
John, the CEO of Tresnel Inc., learns that the government of one of his company's foreign markets has enacted a new law that limits the amount of profit it can make. He projects that this will result in future losses. If John researches the ________ environment, he can plan a strategy to deal with this situation.
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.
Duffert Industries has total assets of $1,050,000 and total current liabilities (consisting only of accounts payable and accruals) of $150,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 9% and its tax rate is 40%. The firm's basic earning power ratio is 15% and its debt-to capital rate is 40%. What are Duffert's ROE and ROIC
Answer:
13.90%; 10.50%
Explanation:
Given that,
Total assets = $1,050,000
Total current liabilities = $150,000
Interest rate on debt = 9%
Tax rate = 40%
Basic earning power ratio = 15%
Debt-to-capital rate = 40%
[tex]Basic\ earning\ power\ ratio=\frac{EBIT}{Total\ assets}[/tex]
[tex]0.15=\frac{EBIT}{1,050,000}[/tex]
EBIT = 0.15 × $1,050,000
= $157,500
Total invested capital:
= Total assets - Accounts payable and accruals
= $1,050,000 - $150,000
= $900,000
Equity = 60% of the total invested capital
= 0.6 × $900,000
= $540,000
Debt = Total invested capital - Equity
= $900,000 - $540,000
= $360,000
Earning before tax:
= EBIT - Interest expense
= $157,500 - ($360,000 × 9%)
= $157,500 - $32,400
= $125,100
Net income = Earning before tax - Tax expense
= $125,100 - ($125,100 × 40%)
= $125,100 - $50,040
= $75,060
ROE:
= Net income ÷ Equity
= $75,060 ÷ $540,000
= 0.1390 or 13.90%
ROIC:
[tex]=\frac{[EBIT(1-Tax\ rate)]}{Total\ operating\ capital}[/tex]
[tex]=\frac{[157,500(1-0.4)]}{900,000}[/tex]
= 0.1050 or 10.50%
Following is a recent Microsoft press release: REDMOND, Wash.—Nov. 29, 2017 — Microsoft Corp. on Wednesday announced that its board of directors declared a quarterly dividend of $0.42 per share. The dividend is payable March 8, 2018, to shareholders of record on Feb. 15, 2018. The ex-dividend date will be Feb. 14, 2018. Prepare the journal entries Microsoft used to record the declaration and payment of the cash dividend for its 7,720 million shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Solution:
No Event General Journal Debit Credit
1 1 Retained earnings 3,242
Cash dividends payable 3,242
2 2 No journal entry required
3 3 Cash dividends payable 3,242
Cash 3,242
Declaration date:
Cash dividends payable (7,720 million shares × $0.42) = $3,242 million
n the Baumol-Tobin model, if the nominal interest rate is 1%, the consumer's annual income is $36000, and every trip to the bank costs $20, then it is optimal for the consumer to visit the bank ___ times a year. 2 3 4 5
Answer:
In the Baumol-Tobin model, if the nominal interest rate is 1%, the consumer's annual income is $36000, and every trip to the bank costs $20, then it is optimal for the consumer to visit the bank three times a year.
Explanation:
The optimal number of visit to banks = (iY/2F)0.5
i = 1% = 0.01
Y = $36000
F = $20.
The optimal number of visit to banks = (iY/2F)0.5
The optimal number of visit to banks = (0.01 * 36000 / 2* 20)0.5
The optimal number of visit to banks = (9)0.5
The optimal number of visits to banks = 3.
it is optimal for the consumer to visit the bank 3 times a year.
Which of the following ratios are key components in measuring a company's operating efficiency? (You may select more than one answer.)
a. Profit margin
b. Equity ratio
c. Return on total assets
d. Total asset turnover
The key components in measuring a company's operating efficiency are as follows,
Option c - Return on total assetsOption d - Total asset turnoverExplanation:
Efficiency can be defined as a measure to calculate the capability of the business to handle the existing assets and liabilities.
Return on assets (ROA): This measures the efficiency of a company's management in generating earnings from their economic resources or assets.
Total asset turnover: This ratio helps in measuring the ability of the business to generate sales from the existing assets.
In general, the following elements are assumed to be the efficiency ratios:
Accounts payable turnoverAccounts receivable turnoverInventory turnoverFixed assets turnoverThe efficiency ratio of a bank is calculated by diving the expenses (without including interest) by revenue. That is,
[tex]\text{Efficiency Ratio }=\frac{\text{ Expenses }}{\text{ Revenue }}[/tex]
This is also called as activity ratio.
Retained earnings, December 31, 2019 $ 347,600 Cost of buildings purchased during 2020 46,600 Net income for the year ended December 31, 2020 56,100 Dividends declared and paid in 2020 32,200 Increase in cash balance from January 1, 2020, to December 31, 2020 24,000 Increase in long-term debt in 2020 44,100 Required: From the above data, calculate the Retained Earnings balance as of December 31, 2020:
Answer:
$371,500
Explanation:
The retained earnings account represents the cumulative net income of an entity over the years after considering the dividend paid over the periods of existence.
The movement in the dividend account at the start and end of a given period is as
Opening balance + Net income - dividend declared and paid = closing balance. Hence , the Retained Earnings balance as of December 31, 2020
= $347,600 + $56,100 - $32,200
= $371,500
Answer:
cool
Explanation:
Assume interest rates on 10-year government Treasury Notes (T-Notes) and 10-year Corporate Bonds are as follows: T-Notes = 3.85% AAA = 4.50% A = 4.95% BBB = 5.65%. The differences in rates among these issues are caused primarily by
a. Liquidity risk differences.
b. Maturity risk differences.
c. Inflation differences.
d. Default risk differences.
Answer:
The correct option is D,default risk differences
Explanation:
Default risk is the risk which stems from the fact that the borrower might fail to discharge its obligation in paying interest and principal as and when due as contained in the debt contract agreement.
The investor is expected to be compensated for default risk,in other words,highly risky investment pays a spread over and above risk free investment return.
Government Treasury Notes are risk-free,pays zero compensation for default risk, while corporate bonds that more riskier pays a little extra to entice investors to invest in their bonds,otherwise the planned amount expected from bond issuance would not be realized.
Under workers' compensation: a. the employee loses the right to litigation against the employer for covered incidents. b. employee fault controls compensation. c. injuries by fellow employees are not covered. d. none of the above
Answer:
The correct answer is a. the employee loses the right to litigation against the employer for covered incidents.
Explanation:
Compensation for employees can be the decisive factor to retain employees with high potential and encourage them to put all their efforts to achieve organizational goals; In addition, it is not only about creating strategies for employees who already belong to the payroll, but also those candidates who aspire to a job.
Compensations are strategies and incentives for employees, in addition to the monthly salary, used primarily to:
Recruit and retain qualified employees. Increase the level of satisfaction. Reward and encourage maximum performance. Reduce staff turnover. Promote loyalty to the company.Jack works on the production line at an assembly plant. Jack receives a base salary plus $1.25 per unit assembled. This is an example of a ______ cost.
Answer:
The correct word for the blank space is: mixed.
Explanation:
Mixed costs or semi-variable costs are the results of adding fixed costs (those that do not change) to a variable cost (vary in proportion to the level of activity). Different levels of production in a company determine how much the mixed cost will be.
Thus, in Jack's case, his salary is the fixed costs and the $1.25 per unit assembled is the variable cost.
The given example of Jack's base salary plus $1.25 per unit assembled represents a variable cost.
Explanation:The example given, where Jack receives a base salary plus $1.25 per unit assembled, is an example of a variable cost. Variable costs are costs that change in relation to the level of production or output. In this case, the cost increases with each additional unit assembled by Jack.
Learn more about Variable Cost here:https://brainly.com/question/33885654
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Carlos is a salesperson for an industrial equipment company. Carlos calls on manufacturers and spends most of his time talking with system operators who work on the factory floor.While CARLOS is able to get the equipment operators interested in his products, he is often unable to make a sale. Craig needs to work on:________.
A. Determining other purchase decision influencers.
B. Improving his products.
C. Improving his attitude.
D. His cold canvassing ability.
E. His record keeping
Answer:
The correct answer is letter "A": Determining other purchase decision influencers.
Explanation:
While engaging prospective buyers into a purchase, salespeople should be aware of what the consumer is looking for. Different consumers have different preferences such as price, brand, quality, technical features, or useful life. Then, once the purchase decision influencer has been identified, clerks must focus on that characteristic to attempt closing the sale.
Thus, Carlos must review his sales speech and pay special attention to what customers are looking for to determine which purchase decision influencer they are related to.