They’re usually sold "as is" and Usually, you can’t inspect the home in advance makes buying a foreclosed property risky.
Purchasing a foreclosed property is dangerous for the following two reasons:
They're usually sold "as is"
Frequently, foreclosed homes are offered for sale as-is, with no alterations done by the bank or the prior owner.
This implies that you may be buying a house with hidden problems or damage that would cost a lot of money to rectify. You can incur unforeseen fees after buying the home if you are unable to negotiate repairs or renovations before the purchase.
Usually, you can't inspect the home in advance:
Many often, prospective purchasers of foreclosed homes are not given the chance to perform a comprehensive examination before finalizing the purchase.
Due to the lack of an assessment, there may be repulsive after-purchase shocks, such as finding basic troubles, plumbing or electrical issues, or other covered-up imperfections that were not seen amid the initial seeing. You'll not have comprehensive information on the genuine state of the property you're buying without an intensive examination.
Hence, buying a foreclosed property risky cause Usually, you can't inspect the home in advance and They're usually sold "as is".
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The correct options are B and C. Buying a foreclosed property is risky because they are usually sold 'as is' and prospective buyers often cannot inspect them in advance.
The correct answers are:
They’re usually sold “as is”Usually, you can’t inspect the home in advanceForeclosed properties are often sold “as is”, meaning the buyer takes responsibility for any existing issues without expecting repairs or improvements from the seller. Furthermore, prospective buyers often cannot inspect the home in advance, which increases the risk of unforeseen problems that may require costly repairs after the purchase.
Complete question
What makes buying a foreclosed property risky? Select two.
A. The title fee is set later and can’t be negotiated
B. They’re usually sold “as is”
C. Usually, you can’t inspect the home in advance
D. You must use an adjustable-rate loan for purchase
g Let D1 represent the demand curve for premium seats to the Broadway hit Hamilton, and let S1 represent the supply curve for these seats. If the producers of the show charge $497.50 for a premium seat, the scalpers will charge (a) $ , which is (b) $ more than the price listed at the theater box office (give your answer to two decimals).
Answer:
(a) $ 1200
(b) $ 702.5
Explanation:
In the demand and supply curve, the price of goods and services changes with respect to market conditions such as scarcity and consumers' needs. In the problem, if the producers charge about $497.50, the scalper will definitely charge a price higher than that of the producers, in this case, $1200. Thus, this is $702.5 (i.e. $1200 - $497.50) more than the producers' charge.
Martinez Manufacturing incurred $ 4 comma 000 for indirect labor in Department III. The journal entry to record indirect labor utilized, but not paid is ________. Process costing is used. A. debit Accounts Payable, $ 4 comma 000; credit Manufacturing Overhead, $ 4 comma 000 B. debit Wages Payable, $ 4 comma 000; credit Manufacturing Overhead, $ 4 comma 000 C. debit Manufacturing Overhead, $ 4 comma 000; credit Accounts Payable, $ 4 comma 000 D. debit Manufacturing Overhead, $ 4 comma 000; credit Wages Payable, $ 4 comma 000
Answer: B. debit Wages Payable, $ 4 comma 000; credit Manufacturing Overhead, $ 4 comma 000
Explanation:
For three months, an attorney has represented a local manufacturing company in a contract dispute with the company's landlord. Last week, an employee of the manufacturing company asked the attorney to represent the employee in an action against the manufacturing company for failing to comply with wage and hour laws. The contract dispute and the wage and hour matter have no common issues of law or fact, and the attorney reasonably believes that he can competently represent the clients in the respective matters. Without discussing it with the manufacturing company, the attorney accepts and begins representation of the employee in the wage and hour matter.
Is the attorney subject to discipline?
(A) No, because the attorney reasonably believes that he can represent both the company and the employee competently in the respective matters.
(B) No, because there are no common issues of law or fact in the respective lawsuits.
(C) Yes, because the attorney did not terminate the representation of the company before agreeing to represent the employee.
(D) Yes, because the attorney’s representation of the employee is directly adverse to the manufacturing company.
Answer:
D
Explanation:
Although the attorney reasonably believes that he can represent both the company and the employee competently in the respective matters, it is against the ethics because there is conflict of interest and it should be noted that the legal issue involves claim by one client against another who both requires the service of the attorney in the same litigation.
Representation of one of the client will no doubt be affected by the attorney's loyalty or personal and responsibility to the other client. Therefore the answer is Yes, because the attorney's representation of the employee is directly adverse to the manufacturing company
Despite broad regulatory reforms after the Enron scandal over a decade ago, corporate boards still are not providing the oversight necessary to prevent ethical lapses, according to an article in the Harvard Business Review. Which of the following are likely areas of concern for corporations? Check all that apply.A) Corporations place too much emphasis on pleasing shareholders and not enough on meeting the needs of other stakeholders such as customers, employees, and members of the public.B) Executive bonuses are based on a number of qualitative and quantitative measures rather than just on stock price.C) Corporations focus on meeting short-term earnings goals rather than on creating long-term value.D) Executives’ pay exceeds their value to the organization, as indicated by historical measures.
Corporate governance still faces challenges in ensuring companies act ethically and in the long-term interest of not just shareholders but all stakeholders. The focus on short-term earnings, excessive executive pay, and inadequate attention to broader stakeholder needs are key areas of concern.
Explanation:Despite regulatory reforms post-Enron, the Harvard Business Review article indicates that corporate boards are still not sufficiently overseeing to prevent ethical lapses. Here are areas of concern for corporations:
Corporations place too much emphasis on pleasing shareholders and not enough on meeting the needs of other stakeholders such as customers, employees, and members of the public.Corporations focus on meeting short-term earnings goals rather than on creating long-term value.Executives’ pay exceeds their value to the organization, as indicated by historical measures.These areas highlight the ongoing challenges in corporate governance, despite the establishments like the board of directors, auditing firms, and outside investors designed to provide oversight.
Concerns A, C, and D are likely areas of concern for corporations regarding ethical lapses and corporate governance, as they touch upon issues related to stakeholder prioritization, short-term focus, and executive compensation practices. Option B, on the other hand, promotes a more balanced approach to executive bonuses, which is considered a positive practice.
The concerns highlighted in the Harvard Business Review article touch upon various aspects of corporate governance and ethics. Let's analyze each option to understand the likely areas of concern for corporations:
A) Corporations place too much emphasis on pleasing shareholders and not enough on meeting the needs of other stakeholders such as customers, employees, and members of the public: This is a valid concern. If corporations excessively prioritize shareholder interests over those of other stakeholders, it can lead to ethical lapses, such as neglecting employee welfare, customer satisfaction, or broader societal impact.
B) Executive bonuses are based on a number of qualitative and quantitative measures rather than just on stock price: This is a positive practice. Relying solely on stock price for executive bonuses can encourage short-term decision-making to boost stock value, potentially at the expense of long-term sustainability and ethical considerations. A more balanced approach, incorporating various measures, promotes a holistic view of performance.
C) Corporations focus on meeting short-term earnings goals rather than on creating long-term value: This is a significant concern. Short-term focus can lead to unethical practices, such as financial manipulation, to meet immediate goals at the expense of sustainable long-term value creation.
D) Executives’ pay exceeds their value to the organization, as indicated by historical measures: This is another potential concern. Overcompensation without corresponding value creation raises ethical issues. Executives should be fairly compensated based on their contribution to the organization, and excessive pay without commensurate performance can be seen as unjust.
Sanjay is the manager at a restaurant and offers to promote Linda, a waitress at the same restaurant, in return for sexual favors. This is an example of _____.
A.quid pro quo harassment
B.reasonable accommodation
C.glass ceiling
D.prima facie
E.disparate treatment
Answer:quid pro quo harassment
Explanation:It is sexual and involves exchanges in a workplace.
Final answer:
Sanjay's offer to promote Linda in exchange for sexual favors is an example of quid pro quo harassment, which is a type of sexual harassment where employment benefits are contingent upon sexual conduct. It is illegal and violates both employment laws and organizational policies.
Explanation:
In the scenario presented, where Sanjay offers Linda a promotion in exchange for sexual favors, this is an example of quid pro quo harassment. This type of harassment transpires when a work-related reward, such as a promotion, is offered contingent upon the performance of sexual acts. It is illegal and violates organizational policies, as it makes employment benefits dependent on sexual conduct. Option A
A manager or supervisor engaging in such behavior is abusing their power and creating a discriminatory environment. It is clearly stipulated in employment laws and organizational policies that unwelcome sexual advances, requests for sexual favors, and other forms of verbal or physical conduct of a sexual nature are forms of sexual harassment.
Sexual harassment, particularly quid pro quo, is a serious issue that can have significant legal implications for both the individuals involved and the organization.
ZipCar has learned that Urban Boomers, baby boomers that have spent most of their time living in the suburbs but then later move into the city, drive less frequently, making them more ______ to ZipCar’s offerings than their counterparts in the suburbs.
Answer:
Susceptible
Explanation:
Urban Boomers tend to drive their car less when moving to the city, searching for new and innovative ways of transportation. The service ZipCar offers, such as car sharing, address this consumption behavior in the way urban boomers still drive but don´t want to own a car with all the maintenance, financial and emotional, that it comes with.
Final answer:
Urban Boomers are more likely to use ZipCar due to their location in the city and infrequent driving, aligning with the trend of gentrification and urban living preferences that have evolved since the rise of suburbanization.
Explanation:
Urban Boomers, a subsegment of the baby boomer generation who have relocated from the suburbs to the city, are more likely to embrace ZipCar's offerings due to their less frequent driving habits. This demographic shift coincides with the fact that city inhabitants typically have greater access to amenities within walking distances and are less reliant on personal vehicles compared to their suburban counterparts. Furthermore, the gentrification of urban areas has made city living more desirable for various age groups, increasing the demand for flexible transportation options like car-sharing services.
Historically, the advent of the automobile led to suburban sprawl, as Americans could live further away from urban cores and commute to work. Over time, the proliferation of suburbs created a decentralized city landscape with residential and commercial hubs scattered across metropolitan areas. However, recent trends show a reversal with younger generations and even former suburbanites moving back to the city, opting for the convenience of urban living, which makes them prime candidates for services like ZipCar.
Sam expresses interest in buying a motorbike from Jake, a salesman. In an attempt to force a sale, Jake promises Sam that the motorbike in question is capable of providing a mileage of 70 miles for every gallon of gas in its tank. Jake's promise is an example of ________.
a. a disclaimer
b. puffing
c. an express warranty
d. slander
Answer:
B : puffing
Explanation:
Jake's promise is an example of Puffing which refers to usually an expression which is made by a salesman that involves the status of goods proposed for sale. It offers opinions rather than realities and is normally not regarded as a legally binding promise as here Jake promises Sam that his motorbike is capable of providing a mileage of 70 miles to sell his bike to Sam but Jake is not legally bound for his promise.
Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:
Sales are budgeted at $320,000 for November, $340,000 for December, and $330,000 for January.
Collections are expected to be 75% in the month of sale, 20% in the month following the sale, and 5% uncollectible.
The cost of goods sold is 65% of sales.
The company desires ending merchandise inventory to equal 80% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
Other monthly expenses to be paid in cash are $21,000.
Monthly depreciation is $16,000.
Ignore taxes.
Statement of Financial Position
October 31
Assets
Cash $ 22,000
Accounts receivable (net of allowance for uncollectible accounts) 82,000
Merchandise inventory 166,400
Property, plant and equipment (net of $658,000 accumulated depreciation) 1,170,000
Total assets $ 1,440,400
Liabilities and Stockholders' Equity
Accounts payable $ 199,000
Common stock 840,000
Retained earnings 401,400
Total liabilities and stockholders' equity $ 1,440,400
Required:
a.
Prepare a Schedule of Expected Cash Collections for November and December. (Leave no cells blank - be certain to enter "0" wherever required.)
Answer:
Part a
: The month of November are $322,000 and the month of December is $319,000.
Explanation:
Deals made during the period of November are relied upon to be gathered to the degree of 75% in November and next 20% is gathered in December and 5% is in-collectible. Likewise, 20% of deals in October are gathered in the period of November.
Deals made during the December are required to be gathered 75% in the November itself. Additionally, 20% of deals in November are gathered in the long stretch of December.
To prepare a Schedule of Expected Cash Collections, calculate cash collections based on the sales budgeted for each month and the given percentages.
Explanation:To prepare a Schedule of Expected Cash Collections, we need to determine the amount and timing of cash collections based on the given data. For November, the cash collections would be 75% of the sales budgeted for November, which is $240,000. For December, the cash collections would be 75% of the sales budgeted for December, which is $255,000. The remaining collections for both months would be split between the following month and considered as receivables.
Monitoring and Performance Evaluation: Once established, the actual sales performance is regularly compared to the budgeted figures. Variances are analyzed to understand the reasons behind overperformance or underperformance, allowing for adjustments and corrective actions as needed.
Flexibility and Adaptability: A sales budget should be dynamic and adaptable to changing market conditions, economic factors, and internal business circumstances. It may be revised periodically to reflect updated information and expectations.
Communication Tool: A well-prepared sales budget serves as a communication tool within the organization, providing a clear roadmap for sales targets and expectations. It helps align various departments and teams towards common sales objectives.
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Real-Time Data Analysis Exercise The following table contains some investment data from FRED* for the fourth quarter of 2017. Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. Title Value Gross Private Domestic Investment Private Nonresidential Fixed Investment Private Residential Fixed Investment $3,285.601 billion $2,511.182billion $767.091 billion The difference between gross private domestic investment and fixed private investment represents inventory investment For the the fourth quarter of 2017 this amount was $billion. (Enter your response rounded to one decimal place and be sure to use a minus sign if the magnitude is negative.) IS Enter your answer in the answer box and then click Check Answer.
Answer:
Inventory investment = Gross private domestic - Fixed private investment
= $3,285.601 billion - ($2,511.182+767.091)billion
= $3,285.601-$3,278.273
= $7.3 billion
Explanation:
The difference between gross private domestic investment and fixed private investment represents inventory investment, which can be calculated by subtracting the fixed private investment from the gross private domestic investment.
Explanation:The difference between gross private domestic investment and fixed private investment represents inventory investment. To find the inventory investment for the fourth quarter of 2017, subtract the fixed private investment from the gross private domestic investment. In this case, the inventory investment amount would be $774.419 billion ($3,285.601 billion - $2,511.182 billion).
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Overhead expenses are budgeted at $2,000 per month. Included in the $2,000 are $500 of monthly depreciation expense and $200 of allocated expenses related to the insurance premium that is paid in September. What is the cash outflow for overhead for the month of May
Answer:
$1,300
Explanation:
Given that,
Budgeted Overhead expenses = $2,000 per month
monthly depreciation expense = $500
Allocated expenses related to the insurance premium = $200
Non-cash expenses:
= monthly depreciation expense + Allocated expenses related to the insurance premium
= $500 + $200
= $700
Cash outflow for overhead for the month of May:
= Budgeted Overhead expenses - Non-cash expenses
= $2,000 - $700
= $1,300
(a) On March 2, Shamrock Company sold $897,900 of merchandise to Pharoah Company on account, terms 2/10, n/30. The cost of the merchandise sold was $594,200. (b) On March 6, Pharoah Company returned $100,900 of the merchandise purchased on March 2. The cost of the merchandise returned was $67,500. (c) On March 12, Shamrock Company received the balance due from Pharoah Company.
Answer:
The journal entries are as follows:
(i) On March 2,
Inventory A/c Dr. $897,900
To Accounts payable - Shamrock company $897,900
(To record the inventory purchased on account)
(ii) On March 6,
Accounts payable - Shamrock company A/c Dr. $100,900
To inventory A/c $100,900
(To record the balance due)
Shamrock Company had transactions with Pharoah Company, including a sale, a return, and receipt of payment. The sale and return were recorded in the respective accounts, and payment was received on March 12.
Explanation:Shamrock Company's Transactions with Pharoah CompanyOn March 2, Shamrock Company sold $897,900 of merchandise to Pharoah Company on account, terms 2/10, n/30. The cost of the merchandise sold was $594,200. To record this transaction, Shamrock Company would debit Accounts Receivable for $897,900 and credit Sales for $897,900. Additionally, Cost of Goods Sold would be debited for $594,200 and Inventory would be credited for $594,200.On March 6, Pharoah Company returned $100,900 of the merchandise purchased on March 2. The cost of the merchandise returned was $67,500. To record this return, Shamrock Company would debit Sales Returns and Allowances for $100,900 and credit Accounts Receivable for $100,900. Cost of Goods Sold would be credited for $67,500 and Inventory would be debited for $67,500.On March 12, Shamrock Company received the balance due from Pharoah Company. To record this receipt of payment, Shamrock Company would debit Cash for the amount received and credit Accounts Receivable for the same amount.Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting and which characteristics are more closely associated with managerial accounting.
1. General-purpose reports
2. Reports are used internally
3. Prepared in accordance with generally accepted accounting principles
4. Special purpose reports
5. Limited to historical cost data
6. Reporting standard is relevance to the decision to be made
7. Financial statements
8. Reports generally pertain to the business as a whole
9. Reports generally pertain to subunits
10. Reports issued quarterly or annually
Answer:
Characteristics more closely related to Financial Accounting:
A - 1
B - 3
C - 5
D - 6
E - 7
F - 8
G - 10
Characteristics more closely related to management accounting:
A - 2
B - 4
C - 9
Explanation:
Characteristics more closely related to Financial Accounting:
A - general purpose reports: financial accounting takes a general and broad overview look on the company's affairs. This cannot be said of management accounting.
B - Preparation in accordance with relevant Generally Accepted Accounting Principles is one of the fundamentals of financial accounting. Unlike management accounting.
C - financial accounting uses historical bases in valuation of its cost items. Unlike the management accounting.
D - Reporting standards is crucial to the presentation of financial statement and eventual decision making. This cannot be said of management accounting.
E - Financial statement is simply the medium through financial accountant communicate their findings. This is not the same as management accountant.
F - Reports generally centers on the business in financial accounting than management accounting.
G - Financial statement are issued quarterly - interim, or annually - year end. This is unlike management accounting that is most time discretional.
Characteristics more closely related to management accounting than financial accounting:
A - reports are used internally. Management reports are specific to a particular line of company's business. The reports are thus to be used by management.
B - Management reports are more specifically focused. This further buttresses point A above.
C - management reports in its specifically focused drive generally focused on sub units. This cannot be said of financial reports.
Financial accounting is associated with general-purpose reports, GAAP, historical cost data, financial statements, and company-wide reporting at regular intervals. Managerial accounting is linked to internal use, special-purpose, and decision-relevant reports that focus on specific subunits of the business.
Explanation:The characteristics that distinguish financial accounting from managerial accounting can be related to specific aspects such as the purpose of reports, principles followed, scope, timing, and their usage. Here is the association of each characteristic:
General-purpose reports: Financial accountingReports are used internally: Managerial accountingPrepared in accordance with generally accepted accounting principles (GAAP): Financial accountingSpecial-purpose reports: Managerial accountingHistorical cost data: Financial accountingReporting standard is relevance to the decision to be made: Managerial accountingFinancial statements: Financial accountingReports generally pertain to the business as a whole: Financial accountingReports generally pertain to subunits: Managerial accountingReports issued quarterly or annually: Financial accountingFinancial accounting is oriented towards external stakeholders, follows strict guidelines such as GAAP, and is more concerned with historical data and general-purpose reporting. Managerial accounting focuses on internal decision-making, provides detailed reports for specific purposes, and emphasizes relevance and timeliness.
Ponzi Corporation has bonds on the market with 14.5 years to maturity, a YTM of 6.1 percent, and a current price of $1,038. The bonds make semiannual payments. What must the coupon rate be on these bonds?
Answer:
Coupon rate is 6.5%
Explanation:
Bond price is the sum of present value of coupon payment and face value of the bond. If the price is available the coupon payment can be calculated by following formula
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
$1,038 = C x [ ( 1 - ( 1 + 6.1%/2 )^-14.5x2 ) / 6.1%/2 ] + [ $1,000 / ( 1 + 6.1%/2 )^14.5x2 ]
$1,038 = C x [ ( 1 - ( 1 + 0.0305 )^-29 ) / 0.0305 ] + [ $1,000 / ( 1 + 0.0305 )^29 ]
$1,038 = C x [ ( 1 - ( 1.0305 )^-29 ) / 0.0305 ] + [ $1,000 / ( 1..0305 )^29 ]
$1,038 = C x [ ( 1 - ( 1.0305 )^-29 ) / 0..0305 ] + [ $1,000 / ( 1.0305 )^29 ]
$1,038 = C x 19.068 + $418.42
$1,038 - $418.42 = C x 19.068
$619.58 = C x 19.068
C = $619.58 / 19.068
C = $32.49
Coupon rate = 32.49 / $1,000 = 3.25% semiannual
Coupon rate = 3.25% per semiannual x 2 = 6.5% per year
Final answer:
To calculate the coupon rate, use the present value formula for a bond. Divide the YTM by 2 to get the semi-annual interest rate. Calculate the present value factor and the bond price. Finally, calculate the coupon rate using the formula (Coupon Payment / Bond Price) * 2.
Explanation:
To calculate the coupon rate, we need to use the present value formula for a bond. In this case, the coupon rate is the semi-annual interest payment divided by the bond price. The formula is given by:
Coupon Rate = (Coupon Payment / Bond Price) * 2
Given that the bond has a YTM of 6.1 percent, we can use the present value formula to find the bond price. Once we have the bond price, we can calculate the coupon rate using the formula above. Here's a step-by-step calculation:
Divide the YTM by 2 to get the semi-annual interest rate: 6.1% / 2 = 3.05% Convert the annual interest rate to a decimal: 3.05% / 100 = 0.0305Calculate the number of semi-annual periods: 14.5 years * 2 = 29 semi-annual periodsCalculate the present value factor: (1 - (1 + r)^(-n)) / r = (1 - (1 + 0.0305)^(-29)) / 0.0305 = 18.83Calculate the bond price: Bond Price = Coupon Payment * Present Value Factor + Face Value * Present Value FactorSubstitute the given values: $1,038 = Coupon Payment * 18.83 + $1,000 * 18.83Solve for Coupon Payment: Coupon Payment = ($1,038 - $1,000 * 18.83) / 18.83 = $3.05Calculate the coupon rate: Coupon Rate = ($3.05 / $1,038) * 2 = 0.0059 or 0.59%
In Mexico City, only 55-60% of the population owns a telephone. The number drops to less than 50% in Guadalajara and Monterey, and 35% or lower in other cities. This will complicate the task of market researchers hoping to use a telephone survey to obtain a ________ of the Mexican population.
Answer:
Probability sampling.
Explanation:
Probability Sampling is a sampling method whereby sample from a bigger population are chosen through the use of probability theory. For a participant to be chosen as a probability sample, he or she must be chosen through a random selection. The most vital requirement in probability sampling is that everyone should have an equal chance of being selected e.g. if there is a population of 200 people, everyone involved will have an odd of 1 in 200 to be selected.
Probability sampling provides the best chance to get a sample that truly represents the population.
General Inertia Corporation made a distribution of $50,000 to Henry Tiara in partial liquidation of the company on December 31, 20X3. Henry owns 500 shares (50%) of General Inertia. The distribution was in exchange for 250 shares of Henry's stock in the company. After the partial liquidation, Henry continued to own 50% of the remaining stock in General Inertia. At the time of the distribution, the shares had a fair market value of $200 per share. Henry's income tax basis in the shares was $100 per share. General Inertia had total E&P of $800,000 at the time of the distribution. What are the tax consequences to Henry because of the transaction? A. Henry has dividend income of $50,000 and a tax basis in his remaining shares of $100 per share. B. Henry has capital gain of $25,000 and a tax basis in his remaining shares of $100 per share. C. Henry has dividend income of $50,000 and a tax basis in his remaining shares of $200 per share. D. Henry has capital gain of $25,000 and a tax basis in his remaining shares of $200 per share.
Answer: B
Explanation:
Henry has capital gain of $25,000 and a tax basis in his remaining shares of $100 per share
Jenny Enterprises has just entered a lease agreement for a new manufacturing facility. Under the terms of the agreement, the company agreed to pay rent of $12,000 per month for the next 9 years with the first payment due today. If the APR is 6.36 percent compounded monthly, what is the value of the payments today?
Final answer:
The present value of Jenny Enterprises' lease payments can be found using the present value of an annuity due formula. By inserting the monthly payment amount, the monthly interest rate calculated from the APR, and the total number of payments, we can compute how much those future lease payments are worth today.
Explanation:
To calculate the present value of the lease payments for Jenny Enterprises, we need to discount the series of future rental payments at the given interest rate. Since the payments are made at the beginning of each period, we will use the formula for the present value of an annuity due. The annual percentage rate (APR) of 6.36% compounded monthly translates into a monthly interest rate, which can be calculated by dividing the APR by 12. The formula for the present value of an annuity due is [tex]P = PMT [(1 - (1 + r)^{-n}) / r] * (1 + r)[/tex], where P is the present value, PMT is the monthly payment amount, r is the monthly interest rate, and n is the total number of payments. Substituting the given values, we get [tex]P = $12,000 [ (1 - (1 + 0.00636)^{-108}) / 0.00636] * (1 + 0.00636)[/tex].
The _________shows all the individuals associated with each work item in the work breakdown structure, as well as all the work items associated with each individual.
A: project scope document
B: work breakdown structure
C: responsibility assignment matrix
D: network diagram
Answer:
C: responsibility assignment matrix
Explanation:
Responsibility assignment matrix is also called Linear responsibility chat, or RACI, this acronym stands for Responsible, Accountable, Consulted and Informed. This explains the role of various participants in completing a task or delivering on a particular project.
Responsibility assignment matrix helps to assign definite roles to every individual or department involved in a project.
The document that outlines the connection between work items and team members in a work breakdown structure is the Responsibility Assignment Matrix.
Explanation:The document that shows all the individuals associated with each work item in the work breakdown structure, as well as all the work items associated with each individual, is the Responsibility Assignment Matrix (RAM). The RAM is a tool used in project management to illustrate the connections between work packages or activities and project team members. By mapping out every element of the work breakdown structure (WBS) and linking them to the responsible parties, the RAM makes it clear who is responsible for what. This is crucial for ensuring that all tasks have a designated owner and for facilitating better communication and accountability among team members.
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Below are some data from the land of milk and honey.
Year Price of Milk Quantity of Milk Price of Honey Quantity of Honey
2016 $1 100 quarts $2 50 quarts
2017 1 200 2 100
2018 2 200 4 100
a. Compute nominal GDP, real GDP, and the GDP deflator for each year, using 2016 as the base year.
b. Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2017 and 2018.
Answer:
The solution to the given problem is done below.
Explanation:
a. Compute nominal GDP, real GDP, and the GDP deflator for each year, using 2016 as the base year.
Nominal GDP is simply equal to the sum of the current year price * current year quantity of all the goods.
2016: ($1 per qt. of milk X 100 qts. milk) + ($2 per qt. of honey X 50 qts. honey) = $200
2017: ($1 per qt. of milk X 200 qts. milk) + ($2 per qt. of honey X 100 qts. honey) = $400
2018: ($2 per qt. of milk X 200 qts. milk) + ($4 per qt. of honey X 100 qts. honey) = $800
Calculating real GDP (base year 2016):
Real GDP is equal to the sum of the base year price * current year quantity of all the goods.
Calculating real GDP (base year 2016):
2016: ($1 per qt. of milk X 100 qts. milk) + ($2 per qt. of honey X 50 qts. honey) = $200
2017: ($1 per qt. of milk X 200 qts. milk) + ($2 per qt. of honey X 100 qts. honey) = $400
2018: ($1 per qt. of milk X 200 qts. milk) + ($2 per qt. of honey X 100 qts. honey) = $400
b. Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2017 and 2018.
Percentage change in nominal GDP in 2017 = [($400 –$200)/$200] X 100% = 100%.
Percentage change in nominal GDP in 2018 = [($800 –$400)/$400] X 100% = 100%.
Percentage change in real GDP in 2017 = [($400 –$200)/$200] X 100% = 100%.
Percentage change in real GDP in 2018 = [($400 –$400)/$400] X 100% = 0%.
The GDP deflator is equal to (Nominal GDP / Real GDP)*100
Percentage change in the GDP deflator in 2017 = [(100 –100)/100] X 100% = 0%.
Percentage change in the GDP deflator in 2018 = [(200 –100)/100] X 100% = 100%.
Prices did not change from 2016 to 2017. Thus, the percentage change in the GDP deflator is zero. Likewise, output levels did not change from 2017 to 2018. This means that the percentage change in real GDP is zero.
To compute nominal GDP, real GDP, and the GDP deflator, we use the prices and quantities of goods and services. We compare the values to a base year to calculate the percentage change in each measure.
Explanation:To compute nominal GDP, we multiply the price of each good or service by the quantity produced and sum across all goods and services. To compute real GDP, we use constant prices from a base year to remove the effects of inflation. The GDP deflator is a measure of the overall price level in an economy. We can calculate it by dividing nominal GDP by real GDP and multiplying by 100.
In 2017, the nominal GDP increased by 20% compared to 2016, the real GDP increased by 9.09%, and the GDP deflator increased by 10%. In 2018, the nominal GDP increased by 41.67%, the real GDP increased by 9.09%, and the GDP deflator increased by 32.14%.
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Transworld Import Company and USA Export, Inc., form a business organization to engage in importing and exporting. Its property is held in the names of the members and its shareholders have personal liability. This organization is ______.
A) a business trustB) a joint stock company.C) a joint venture.D) a syndicate.
Answer:
A joint stock company
Explanation:
A joint stock company is a business organisation that is owned jointly by all its shareholders. All the shareholders have a specific amount of stock in the company, which is represented by their amount of shares.
Advantages of joint stock company include:
1) Large amount of capital
2) Limited Liability
3) Stability of Existence
4) High Public Confidence
5) Increased tax Benefits
6) It greatly Promotes Savings and Investment
Answer: B- joint stock company
Explanation: A joint-stock company is
a business existence in which shares of the business organization’s merchandise kept on the premises of a warehouse and available for distribution or sale can be purchased or sold by an individual or corporation that lawfully owns one or more mutual funds, limited partner, and real estate investment trusts of stock in a public or private corporations. In this case, a shareholder’s liability is limited to the amount of the share equity that is unpaid, hence he or she has a personal liability.
Holbrook, a calendar year S corporation, distributes $51,700 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $62,040, Holbrook's AAA balance is $23,265, and Holbrook has $7,755 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $51,700 is from AAA and AEP as well as how Cody's stock basis is affected.
Answer;
AAA account balance after distribution was 0
AEP account balance after distribution was 0
Cordy account balance after distribution was $18,095
Explanation:
Holbrook corporation
From AAA account
Distribution from AAA account 8,000 not taxable
Effect on stock basis (8000)
Balance after distribution 0
From AEP account
Distribution from account 7,755 is a taxable dividend, in which it doesn't affect stock basis because it is from a previous S-corporation.
Effect on stock basis 0
Balance after distribution 0
From Cody’s stock basis
Distribution from account 20,680
(51,700-23,265-7,755)
Effect on stock basis (20,680)
Balance after distribution
(62,040-23,265-20,680)= $18,095
Answer:
The chart is shown in the file attached below
Explanation:
Suppose the money supply (as measured by checkable deposits) is currently $700 billion. The required reserve ratio is 25%. Banks hold $175 billion in reserves, so there are no excess reserves.
The Fed wants to increase money supply by $44 billion, to $744 billion. Assume that you can use the simple money multiplier
a) If the Fed wants to increase the money supply through open market operations, it should_ $_ billion worth of U.S. government bonds.
b) If the Fed wants to increase the money supply by adjusting the required reserve ratio, it should_required reserve ratio.
Final answer:
To increase the money supply by $44 billion with a reserve requirement of 25%, the Fed should buy $11 billion in government bonds using open market operations. The money multiplier is used to calculate this figure. Adjusting the reserve requirement is another way to alter the money supply, but the specific new ratio isn't provided.
Explanation:
To increase the money supply by $44 billion, we should start by calculating the amount the Federal Reserve needs to purchase in government bonds. This calculation can be made using the simple money multiplier, which is the inverse of the required reserve ratio (RRR). Given the RRR of 25%, the money multiplier is 1 / 0.25 = 4. Therefore, to increase the money supply by $44 billion, the Fed would need to inject $11 billion into the economy since $11 billion × 4 = $44 billion.
For part b, adjusting the required reserve ratio involves decreasing it so that banks will have more funds available to loan out, which increases the money supply through the lending process. The new reserve requirement can't be calculated precisely from the given information, but the Fed would lower the RRR from 25% to a smaller percentage to achieve the desired expansion in the money supply.
The average elasticity for steeper demand curves are _____ elastic than flatter curves because percentage changes in ____ tend to be smaller and percentage changes in _____ tend to be larger.
Answer:
Explanation:
The average elasticity for steeper demand curves are less elastic than flatter curves because percentage changes in price tend to be smaller and percentage changes in quantity tend to be larger.
Kirkland Theater sells season tickets for six events at a price of $189. For the 2016 season, 1,200 season tickets were sold.
Required:
a-1. Use the horizontal model to show the effect of the sale of the season tickets. (Use amounts with + for increases and amounts with – for decreases.) FIll in yellow boxes
Assets Balance Sheet Liabilities Stockholders Equity Net Income
b-1. Use the horizontal model to show the effect of presenting an event. (Use amounts with + for increases and amounts with – for decreases.) Fill in yellow boxes
Answer:
Explanation:
Theater sells season tickets for six events at a price of $189. For the 2016 season, 1,200 season tickets that were sold.This is illustrated in the attached diagram.
Economic models are built with a. recommendations concerning public policies. b. facts about the legal system. c. assumptions. d. statistical forecasts.
Answer:
The correct answer is letter "C": assumptions.
Explanation:
Economic models are real-world assumptions economists make to simplify complex phenomena. Economists aim to predict or help to assess actual economic problems with the help of models which in some cases can be purely theoretical and in others can include mathematical calculations or graphs with lines and curves.
The laws of supply and demand are examples of economic models.
Advantage, Inc., a tennis equipment manufacturer, has variable costs of $ 0.80 per unit of product. In August, the volume of production was 27 comma 000 units, and units sold were 21 comma 400. The total production costs incurred were $ 30 comma 800. What are the fixed costs per month?
Answer:
Total fixed cost= $9,200
Explanation:
Giving the following information:
variable costs= $0.80 per unit.
production= 27,000 units
The total production costs incurred were $30,800.
First, we need to calculate the total variable cost at the production level of 27,000 units.
Total variable cost= 0.8*27,000= $21,600
Total cost= total fixed cost + total variable cost
30,800= total fixed cost + 21,600
Total fixed cost= 30,800 - 21,600
Total fixed cost= $9,200
Sole Occhiali Group, an Italian company that sells sunglasses, reported Net Sales of $181,000 and Cost of Goods Sold of $59,500. Candy Electronics Corp. reported Net Sales of $39,000 and Cost of Goods Sold of $28,600.
Calculate the Gross Profit Percentage for both companies.
Answer:
The gross profits of Sole Occhiali Group and Candy Electronics Corp. are 67.13% and 26.66% respectively.Explanation:
In Business Studies and Accounting,Gross Profit percentage is calculated by subtracting the cost of goods sold from the net sales revenue and then dividing the result by net sales revenue and finally multiplying the entire expression with hundred.Here,the net sales revenue of Sole Occhiali Group is given as $181,000 and the costs of goods sold is $59,500 and for Candy Electronics Corp. they are $39,000 and $28,600 respectively.
Hence,gross profit percentage for Sole Occhiali Group=[tex](\frac{181,000-59,500}{181,000})\times 100[/tex]=[tex](\frac{121,500}{181,000})\times 100[/tex]=[tex](0.6713\times 100)[/tex]=67.13% approximately
Now,gross profit for Candy Electronics Corp.=[tex](\frac{39,000-28,600}{39,000})\times 100[/tex]=[tex](\frac{10,400}{39,000})\times 100[/tex]=[tex](0.2666\times 100)[/tex]=26.66% approximately
Eccles Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs: Wages and salaries $ 331,000 Depreciation 275,000 Utilities 227,000 Total $ 833,000 Distribution of resource consumption: Activity Cost Pools Assembly Setting Up Other Total Wages and salaries 50% 25% 25% 100% Depreciation 40% 10% 50% 100% Utilities 25% 55% 20% 100% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool
Answer:
The cost in total allocated to the first stage in the assembly activity pool is $3,32,250
Explanation:
The cost in total allocated to the first stage in the assembly activity pool is given below:
The trial balance of Woods Company includes the following balance sheet accounts. Identify the accounts that might require adjustment. For each account that requires adjustment, indicate (1) the type of adjusting entry and (2) the related account in the adjusting entry.
(a) Accounts Receivable
(b) Prepaid Insurance
(c) Equipment
(d) Accumulated Depreciation Equipment
(e) Notes Payable
(f) Interest Payable
(g) Unearned Service Revenue
Adjustment entries are the form of journal entries being recorded during the closure of books or at the end of the financial year. They are recorded to adjust the due amounts of the expenses or incomes that are not of the current financial period.
For each of the accounts the adjusting entry and the related account in the adjusting entry are shown in the table attached below:
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(a) Accounts Receivable: Accrued Revenues - Service Revenue
(b) Prepaid Insurance: Insurance Expense - Prepaid Expenses
(c) Equipment: No adjustment required
(d) Accumulated Depreciation Equipment: Depreciation Expense - Equipment
(e) Notes Payable: No adjustment required
(f) Interest Payable: Accrued Expenses - Interest Expense
(g) Unearned Service Revenue: Unearned Revenues - Service Revenue
(a) Accounts Receivable
1. Type of adjusting entry: Accrued Revenues
2. Related account in the adjusting entry: Service Revenue
(b) Prepaid Insurance
1. Type of adjusting entry: Insurance Expense
2. Related account in the adjusting entry: Prepaid Expenses
(c) Equipment
1. Type of adjusting entry: Not Required (unless there are impairments or disposals)
2. Related account in the adjusting entry: Not Required
(d) Accumulated Depreciation Equipment
1. Type of adjusting entry: Depreciation Expense
2. Related account in the adjusting entry: Equipment
(e) Notes Payable
1. Type of adjusting entry: Not Required (unless there are changes in interest or principal)
2. Related account in the adjusting entry: Not Required
(f) Interest Payable
1. Type of adjusting entry: Accrued Expenses
2. Related account in the adjusting entry: Interest Expense
(g) Unearned Service Revenue
1. Type of adjusting entry: Unearned Revenues
2. Related account in the adjusting entry: Service Revenue
Footsteps Co. has a bond outstanding with a coupon rate of 5.7 percent and annual payments. The bond currently sells for $927.87, matures in 13 years, and has a par value of $1,000. What is the YTM of the bond?
Answer:
6.54%
Explanation:
YTM which is Year to Maturity, is the yield of a bond if it is held till maturity.
[tex]\frac{Annual interest + Par value - Market value/Number of years}{Par value + market value/2\\}[/tex]
Formula for YTM
Annual interest = 1000*0.57=57
Par value $1000
Market value $927.87
YTM= [tex]\frac{57+ (1000-927.87)/13}{1000+927.87/2}[/tex]
YTM= 6.54%
In Shady Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2020 are as follows. Beginning Work in Process Ending Work in Process Month Units Conversion Cost% Units Transferred Out Units Conversion Cost% January 0 — 11,900 3,000 69 March 0 — 12,200 4,200 33 May 0 — 15,600 7,620 80 July 0 — 10,500 2,100 46 Compute the physical units for January and May.
Answer:
Physical Units in January 14,900
Physical Units in May 23,220
Explanation:
The question is to compute physical units for January and May for Shady Company based on the given information
Physical Units (Also known as the units to be accounted for)
= The Opening Workin Progress + The Units Started into Production
Note that this Units should also be equal to the following
= Units Transferred Out + the Ending Work in Progress units
It is therefore computed as follows:
Description January May
Units to be accounted for 0 0
Opening WIP
Started into Production 14,900 23,220
January (11,900 + 3,000)
May (15,600 + 7,620)
Total Units 14,900 23,200
Units accounted for
Units Transferred out 11,900 15,600
Closing Work in Progress 3,000 7,620
Total Units 14,900 23,200
The number of physical units in January is 14,900 units and in May is 23,220 units, calculated by adding beginning work in process, units transferred out, and ending work in process for each month.
Explanation:The physical units calculation is based on data about the beginning work in process, units transferred out, and the ending work in process. For January, the beginning work in process is 0, units transferred out are 11,900 and the ending work in process is 3,000. Hence, the total number of physical units in January = Beginning Work in Process + Units Transferred Out + Ending Work in Process = 0 + 11,900 + 3000 = 14,900 units.
Similarly, for May, the beginning work in process is 0, units transferred out are 15,600, and ending work in process is 7,620. Therefore, the total physical units in May = 0 + 15,600 + 7,620 = 23,220 units. This concept is crucial in the field of cost accounting for tracking production levels.
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