Answer:
Option B is Correct.
Explanation:
Serving the bottom of the pyramid means carrying in goods that are inexpensive by that class of the budget where individuals cannot afford luxuries like several advanced countries. They cannot afford high charges and would exploration for something affordable. Among the given examples Radical computer corp. which definite to build reasonable computers and install wireless arrangement to assist the humblest in getting these amenities which they generally cannot afford serves as an example of attending the bottom of the pyramid. Hence the answer is B
Assume Walmart acquires a tract of land on January 1, 2009 for $100,000 cash.On December 31, 2009, the current market value of land is $150,000. On December 31, the current market value of land is $120,000. The firm sells the land on December 31, 2011 for $180,000 cash. Ignore income tax. Indicate the effects on the balance sheet and income statement of the preceding information for 2009, 2010, and 2011 under each of the following valuation methods (Part A-C). A. Valuation of the land at acquisition cost until sale of the land(Approach 1). B. Valuation of the land at current market value but including unrealized gains and losses in accumulated other comprehensive income until sale of land (Approach 2). C. Valuation of the land at current market value and including market value changes each year in net income (Approach 3). D. Why is retained earnings on December 31, 2011, equal to $80,000 in all three cases despite the reporting of different amount of net income each year?
Answer:
See abelownswers as explained
Explanation:
A)
In 2009,
Particular Amount($) Amount($)
Land A/c Dr. 100,000
To Cash A/c 100,000
In 2010,
No effect on Income Statement
In 2011,
Particular Amount($) Amount($)
Cash A/c Dr. 180,000
To Gain on Sale of land A/c 80,000
To land A/c 100,000
B)
For 2009,
Land to be shown in Balance Sheet as $150,000.
No effect on Income Statement.
Date Particular Amount($) Amount($)
1/1/2009 Land A/c Dr. 100,000
To Cash A/c 100,000
12/31/2009 Land A/c Dr. 50,000
To Unrealized Gain A/c 50,000
For 2010,
Particular Amount($) Amount($)
Unrealized Gain A/c Dr. 30,000
To land A/c 30,000
(Shown in Balance Sheet = $120,000)
For 2011,
Income Statement - Profit on Sale of Land = $80,000
Particular Amount($) Amount($)
Cash A/c Dr. 180,000
Unrealized Gain A/c Dr. 20,000
To land A/c 120,000
To Gain on Sale of land A/c 80,000
C)
For 2009,
Land shown in Balance Sheet = $150,000
Income Statement also increase by $50,000
Date Particular Amount($) Amount($)
1/1/2009 Land A/c Dr. 100,000
To Cash A/c 100,000
12/31/2009 Land A/c Dr. 50,000
To increase in market value of land A/c 50,000
For 2010,
Land shown in Balance Sheet = $120,000
Particular Amount($) Amount($)
Decrease in market value of land A/c Dr. 30,000
To land A/c 30,000
For 2011,
Particular Amount($) Amount($)
Cash A/c Dr. 180,000
To Land A/c 120,000
To Gain in sale of Land A/c 60,000
D. Earnings on December 31,2011 is equal to $80,000 in all the cases as retained earnings is the difference between sale value and acquisition cost. It has no effect on the retained earnings, if market prices go up and down. ,
acquisition cost is $100,000 and
Sale Value is $180,000.
amount of retained earnings is $180,000-100000
$80000
The valuation and accounting of land owned by Walmart will have different impacts on the financial statements under the three valuation methods, with retained earnings equaling $80,000 in all three cases due to the final sale price. The balance sheet and income statements are affected variably across the years, reflecting historic cost or market value adjustments depending on the approach taken.
The valuation and accounting of land for Walmart across different methods will have varying impacts on the balance sheet and income statement for the years 2009, 2010, and 2011. Under each valuation method, the effects on the balance sheet and income statement will differ as detailed below:
Approach 1 - Valuation of land at acquisition cost until sale of the land: The land remains on the balance sheet at the historical cost of $100,000 for all the years until it is sold. No effect on the income statement until 2011, when land is sold for $180,000, resulting in a gain of $80,000 in net income.Approach 2 - Valuation of land at current market value but including unrealized gains and losses in accumulated other comprehensive income until sale of land: The balance sheet reflects current market value changes, with equity increasing to $150,000 in 2009, decreasing to $120,000 in 2010, and then back to $150,000 in 2011. The income statement remains unaffected until the land is sold, showing an $80,000 gain.Approach 3 - Valuation of land at current market value and including market value changes each year in net income: The balance sheet reflects market value changes with corresponding entries in net income. There is a gain of $50,000 in net income in 2009, a loss of $30,000 in 2010, and a gain of $60,000 in 2011. Upon sale, an additional gain of $30,000 is recorded, matching the total sales price less the market value at the beginning of 2011.The reason retained earnings on December 31, 2011, would be equal to $80,000 in all three cases is because, regardless of when the gains or losses are realized or recognized, the total cash inflow from the sale of the land over the acquisition cost amounts to $80,000. This is the actual gain Walmart realized from the sale transaction, which ultimately is the amount added to retained earnings.
Pursuant to a plan of reorganization adopted in the current year, Summit Corporation exchanged 1,000 shares of its common stock and paid $40,000 cash for Hansen Corporation's assets with an adjusted basis of $200,000 (fair market value of $300,000) Hansén Corporation was liquidated shortly after the exchange, with its shareholders receiving the Summit stock and cash. The 1,000 shares of Summit common stock had a fair market value of $260,000 on the date of the exchange. What is the basis to Summit of the assets acquired in the exchange? A. $200.000 B. $240,000 C. $260,000 D. $300.000
Answer:
A. $200.000
Explanation:
No gain or loss is recognized by the target corporation in the case of liquidation of target corporation or in case of distribution of stock and cash by it.
This is true even if cash or boot property is received by the target corporation. Hence, the basis is equal to the carryover to the acquiring corporation. Summit has a carryover basis in the assets of Hansen company as Hansen company liquidated and distributed the cash and stock to the shareholder.
Therefore, The Basis to Summit of the assets acquired in the exchange = $200000
A 1996 bill reforming the federal government's antipoverty programs limited many welfare recipients to only two years of benefits.
Which arrangement would provide the unemployed with greater incentives to look for jobs?
A) Welfare benefits last for only two years
B) Welfare benefits last forever
Under which arrangement would the economy be more efficient?
A)Welfare benefits last for only two years
B)Welfare benefits last forever
Answer:
Welfare benefits last for only two years
Explanation:
Limited welfare benefits are more likely to incentivize job searching and potentially contribute to a more efficient economy. However, this doesn't account for individual circumstances and challenges.
Explanation:Generally speaking, if welfare benefits are limited to two years (A option), it may provide a greater incentive for unemployed individuals to seek employment, because the temporary nature of the support encourages them to secure a job before the benefits end.
In contrast, if welfare benefits were to last forever (B option), there might be less urgency to find employment quickly.
Regarding economic efficiency, in theory, limiting welfare to two years may potentially lead to a more efficient economy. This is because as more people transition from welfare to work, it increases their productivity and subsequently contributes to the economy's growth.
On the other hand, if welfare benefits lasted indefinitely, it could potentially discourage people from seeking work and contributing to the economy's productivity.
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Trainers need to attend seminars on a regular basis to update their understanding of conditioning techniques based on the latest research. Then they need to integrate these new techniques into their training programs. Which personality factor is most important to perform this task successfully?A. AgreeablenessB. ExtroversionC. Openness to experience
Answer:
"C"
Explanation:
Openness to experience personality factor is demonstrated by individual who who likes to explore and adopt new ideas.He is creative , always willing to learn at every given opportunity, organized and highly principled and liberal , energetic and flexible in nature.
He makes a good learner as he can can go all the way to acquire new knowledge and skills .He also does not give up easily
The most important personality factor for trainers to successfully attend seminars, update their techniques, and integrate new methods into their training is Openness to Experience. This trait fosters curiosity, creativity, and an eagerness to explore and adopt novel approaches, crucial for continuous learning and adaptation in their field.
The personality factor most important for trainers to attend seminars regularly, update their understanding of conditioning techniques based on the latest research, and integrate these new techniques into their training programs is Openness to Experience. This trait is characterized by a person's imagination, feelings, actions, and open-mindedness towards new experiences. People who score high in Openness to Experience are typically curious and possess a wide range of interests, making them more likely to seek out new information and integrate innovative methods into their practice.
Moreover, Openness to Experience is associated with higher creativity, emotional breadth, and an eagerness to explore novel ideas and experiences. This inclination not only promotes continuous learning but also enhances the ability to adapt training methodologies to incorporate cutting-edge research findings effectively.
Osborn Manufacturing uses a predetermined overhead rate of $20.00 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $276,000 of total manufacturing overhead for an estimated activity level of 13,800 direct labor-hours. The company incurred actual total manufacturing overhead costs of $275,000 and 13,300 total direct labor-hours during the period.
1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.
2. Assuming that the entire amount of the underapplied or overapplied overhead is closed out to cost of goods sold, what would be the effect of the underapplied or overapplied overhead on the company's gross margin for the period?
Answer:
1. $9,000 under applied
2. Gross income decreases by $9,000
Explanation:
1. To compute the amount of under applied or over applied manufacturing overhead, first we have to determine the applied overhead which is shown below:
Applied overhead = Predetermined overhead rate × total direct labor-hours
= $20 × 13,300 direct labor hours
= $266,000
So, the amount would be
= Actual total manufacturing overhead costs - applied overhead
= $275,000 - $266,000
= $9,000 under applied
2. Since the manufacturing overhead is under applied which decreases the company gross margin for $9,000
For a given class of similar-risk securities, what does each of the following yield curves reflect about interest rates: (a) downward sloping, (b) upward sloping, and (c) flat?
What is the "normal" shape of the yield curve?
Answer:
The slope of the yield curves predicts future interest rate changes and economic activity.
Explanation:
a) The Upward Sloping Curves indicates yields on longer-term bonds may continue to rise, predicting an economic expansion.
b) The downward sloping curves suggests yields on longer term bonds may continue to fall, predicting an economic recession.
c) The flat yield curve arise from normal or inverted yield curve and is in transitioning from recession to recovery.
The upward sloping curve is the normal shape of the yield curve
The interest charge is the price of money charged to a borrower at the time of loan sanction. The yield curve is a plot of interest rates and maturity.
For a given class of similar risk securities the following yield curves represents:
(a) Downward-sloping:
It indicates an economic slump and is inverted. In this, the brief-term interest rates exceed the high term rates.It may continue to fall.(b) Upward sloping:
In this type, the long term bonds may proceed to increase it symbolizes of economic development.It is also called a normal yield curve.(c) Flat:
It designates a similar yield over all the maturity.It arises from the inverted or the normal curve and transits from collapse to recovery.To learn more about yield curves follow the link:
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After identifying the knowledge, skills, attitudes, and other characteristics that impact your current performance, what is the next step?
The next step after identifying the knowledge, skills, attitudes, and other characteristics that impact your current performance is to identify the gaps and the concepts that are required for improved optimal performance on the job.
Undertaking this job analysis of one's knowledge, skills, attitudes, and other characteristics (KSAOs) is relevant for an employee to fulfill the responsibilities of a job role and to gain promotion. For the organization, it helps it to determine the capabilities that it possesses internally.
Thus, the next step of this job analysis is to improve one's knowledge, skills, attitudes, and other characteristics.
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Please, moderator, this is well-spaced with paragraphs. You are looking at the first answer provided by another student.
Venus Company has developed the following flexible budget formula for annual indirect labor cost:
Total annual cost = $12,000 + $0.25 per unit
Operating budgets for the current month are based on 6,000 units.
Indirect labor costs included in this monthly planning budget are ____.
A. $1,250 B. $2,500 C. $3,200 D. $13,250
Answer:
B. $2,500
Explanation:
Given that
Total annual cost = $12,000 + $0.25 per unit
The $12,000 denotes the annual cost, so the monthly cost is
= $12,000 ÷ 12 months
= $1,000
And the number of units is 6,000
Now placing these values to the equation above
= $1,000 + 6,000 units × $0.25 per unit
= $1,000 + $1,500
= $2500
The indirect labor cost included in the monthly planning budget is $13,250.
The annual indirect labor cost included in this monthly planning budget can be calculated using the given flexible budget formula and the number of units in the monthly operating budget. The formula is: Total annual cost = $12,000 + $0.25 per unit.
So for the current month's operating budget based on 6,000 units, the indirect labor cost would be:
Indirect labor cost = $12,000 + ($0.25 * 6,000) = $12,000 + $1,500 = $13,500.
Therefore, the correct answer is D. $13,250.
Consider the game in extensive form above. In the backward induction solution to this game Player 1 plays strategy and Player 2 plays strategy (Please, label Player 1's strategies by A, B, and C, and Player 2's strategies as df, dg, ef, and so forth)
Answer:
answer can be seen in the attached file
Explanation:
Consider the game in extensive form above. In the backward induction solution to this game Player 1 plays strategy and Player 2 plays strategy (Please, label Player 1's strategies by A, B, and C, and Player 2's strategies as df, dg, ef, and so forth)
What is Game Theory?
This is a mathematical modelling that deals with the analysis of strategies for dealing with competitive situations where the result of a participant's choice of action depends critically on the actions of other participants. Game theory has been applied to in war, business, and biology, sport.
In Game theory, outcome is dependent on the contributions of competing parties
For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent. If, as a result of this price increase, the volume of all cereal sold by Big G changed by -2 percent, what can you infer about the own price elasticity of demand for Big G cereal?
a. elastic
b. inelastic
c. unit elastic
Can you predict whether revenues on sales of its Lucky Charms brand increased or decreased?
a. Yes - it increased.
b. No - you can't tell.
c. Yes - it decreased
Answer:
b. inelastic
c. Yes - it decreased
Explanation:
Elasticitiy of demand measures the responsiveness of quantity demanded to changes in price.
Elasticity of demand = percentage change in quantity demanded/ percentage change in price
= -2/4 = -0.5
The absolute value is 0.5
If the absolute value of the coffiecnet of elasticity of demand is less than one, demand is inelastic.
Demand is inelastic if a change in price has no effect on quantity demanded .
We can tell that the quantity demanded fell because of the negative sign in front of the percentage change in quantity demanded.
I hope my answer helps you
Final answer:
The own price elasticity of demand for Big G cereal is inelastic since the percentage change in quantity demanded is less than the percentage change in price. It's indeterminate whether revenues for Lucky Charms increased or decreased without more information.
Explanation:
For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent, and as a result, the volume of all cereal sold by Big G changed by -2 percent. We can infer that the own price elasticity of demand for Big G cereal is inelastic, because the percentage change in quantity demanded (-2%) is less than the percentage change in price (4%).
When analyzing the revenues on sales of its Lucky Charms brand after this price increase, we can't predict whether revenues increased or decreased without additional information. The demand for Lucky Charms could have a different price elasticity than the average for all cereals sold by Big G.
Wylie has been offered the choice of receiving $5,000 today or an agreed-upon amount in 1 year. While negotiating the future amount, Wylie notes that he would be willing to take no less than $5,700 if he has to wait a year. What is his TVOM in percent?
Answer:
=14%
Explanation:
TVOM represents the Time Value of Money and it represents the worth of an amount of money in present time as compared to its worth in the future. TVOM states that money's potential capacity to earn makes it worth money if received today than if it received in the future.
To calculate the Time Value of Money for Wylie, the following step is undertaken
Step 1: Calculate the difference between $5000 to be received today and the $5,700 Wylie demands as minimum to receive if he is to wait for 1 year
=$5,700 - $5000
=$700
Step 2: Use the formula for TVOM
TVOM= (Difference in value in one year's time /The present amount offered today) x 100
= ($700 /$5,000) / 100
=0.14 x100
=14%
Alternate calculation
Use this formula = P(1+r)= F
P= Present value
r= rate
F= Future value
=$5000 (1 +r) = $5,700
= (1+r)= $5700/$500
=(1+r) = 1.14
r= 1.14 - 1
= 0.14 or 14%
Based on the information given his TVOM in percent is 14%.
TVOM in percent:Using this formula
TVOM in percent=Amount willing to receive-Amount receive today/Amount receive today×100
Let plug in the formula
TVOM in percent==$5,700 - $5000/$5,000
TVOM in percent=$700/$5,000
TVOM in percent=0.14×100
TVOM in percent=14%
Inconclusion his TVOM in percent is 14%.
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You are a producer of lithium batteries. Last month, a flood at your factory eliminated 50% of your firm’s production capability. At the same time, your compensation costs increased by 5% because of an annual pay raise. What is the consequence of these events?
Answer:
The flood shifts the supply to the left. The flood does not shift the demand curve. The increase in annual pay doesn't shift the demand curve. The increase in annual pay shifts the supply curve to the left.Reason – Due to changes, only supply of lithium batteries would be affected. A flood would decrease the output capabilities and hence, reduce the supply in the market for lithium batteries.
Moreover, an increase in compensation cost would reduce the profitability of the producer and hence, they would decrease the supply of lithium batteries.
The firm will face reduced productivity and increased operating costs due to the flood and pay raise, respectively. This will likely decrease profitability.
Explanation:As a producer of lithium batteries, experiencing a flood that eliminates 50% of your production capability will have immediate and direct consequences on your business operation. The reduced production capacity means you will manufacture and subsequently sell fewer units of your lithium batteries. At the same time, your costs of operating haven't decreased. In fact, they've further increased due to the 5% raise in compensation costs. Thus, you're facing increased costs coupled with decreased productivity. This combination is likely to reduce your overall profitability.
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Gans argues that _____________ account for more than ethnic culture in explaining the social mobility and success of ethnic groups.
Answer:
The correct answer is letter "C": class factors.
Explanation:
American sociologist Herbert Gans (born in 1927) in his book "The Levittowners" (1967) concludes after the observation of residents in Long Island (New York) that demographic factors like class, ethnicity, and culture are variables affecting the lifestyle of the neighborhood. In fact, class is the most important of all three that drive the community to success.
Herbert J. Gans argues that individual effort and socioeconomic factors can exert more influence than ethnic culture on the social mobility and success of ethnic groups. However, other scholars emphasize the need to consider multiple factors such as societal constructs and institutional biases, suggesting that the scope is broader than what Gans posits.
Explanation:Herbert J. Gans argues that certain socioeconomic factors account for more than ethnic culture in explaining the social mobility and success of ethnic groups. This emphasizes the belief that personal willpower and hard work are significant drivers to climbing the social ladder in American society, along with other factors such as education, economic structures, and political factors.
For instance, Gans highlighted these ideas in his study titled 'First Generation Decline: Downward Mobility among Refugees and Immigrants' showing that social mobility is not as easy to achieve as many people believe. Besides, socioeconomic classes or stratification, through factors like wealth and education, play a significant role.
However, other scholars critique this perspective, emphasizing the influence of societal constructs, such as racism and prejudice or institutional bias, on social mobility. This reflects that the success of ethnic groups cannot be entirely credited to specific factors and that a more comprehensive approach incorporating several factors including ethnic culture and socioeconomic factors is necessary for understanding social mobility.
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What labor-related factors should be considered when deciding where to locate production?
Answer and explanation:
Labor is one of the main factors that can drive a company to success or failure. When deciding where to locate production the labor-related factors to take into account are labor skills (employees' knowledge), labor costs and productivity (wages and how their levels can affect employees' performance), and labor laws (employees' benefits according to where they work).
Atlarge Inc. owns 30% of the outstanding voting common stock of Ticker Co. and has the ability to significantly influence the investee’s operations and decision-making. On January 1, 2018, the balance in the Investment in Ticker Co. account was $402,000. Amortization associated with the purchase of this investment is $8,000 per year. During 2018, Ticker earned income of $108,000 and paid cash dividends of $36,000. Previously in 2010, Ticker had sold inventory costing $28,800 to Atlarge for $48,000. All but 25% of this merchandise was consumed by Atlarge during 2010. The remainder was used during the first few weeks of 2011. Additional sales were made to Atlarge in 2011; inventory costing $33,600 was transferred at a price of $60,000. Of this total, 40% was not consumed until 2012.
1. What amount of equity income would Atlarge have recognized in 2011 from its ownership interest in Ticker?
A. $19,792.
B. $27,640.
C. $22,672.
D. $24,400.
E. $21,748.
Answer:
Explanation:
2018 Beginning Balance = $402,000
2018 Income Recognized = $22,672
2018 Dividend Received = ($36,000 × 30%) = $10,800
2018 Ending Balance = ($402,000 + $22,672 - $10,800)
2018 Ending Balance = $413,872
A volunteer must review photo identification for every taxpayer to deter the possibility of identity theft.
A. True
B. False
Answer:
Answer of the following statement is TRUE .
Explanation:
Identity theft remains an issue worldwide.
The interview should begin with demanding picture id to check the tax payer's and partner's identity on both the tax form. Exceptions must only be provided under extreme situations for requesting photo Identification and for clients reported to the site upon approval by the site administrator.Aneta sold an apartment building for $713,470 in 2019. She purchased the building in 2013 for $600,000 and has taken $151,806 in depreciation on the building. Assuming Aneta is married with regular taxable income of $500,000 and in the 35% tax bracket, how is her gain taxed?
a. $113,470 at 0% and $151,806 at 28%.
b. $113,470 at 25% and $151,806 at 15%.
c. $151,806 at 28% and $113,470 at 15%.
d. $151,806 at 25% and $113,470 at 15%.
Answer:
(d). 151,806 at 25% and $113,470 at 15%
Explanation:
Book Value of apartment building = Cost of acquisition less accumulated depreciation claimed till date by the assessee
Cost Of Acquisition $600,000
Less: Depreciation till date ($151,806)
Book Value in 2019 448,194
Calculation of Long Term Capital Gain:
Sales Consideration $713,470
Less: Book value on date of sale ($448,194)
Long Term Capital Gain $265,276
The break up of above long term capital gain taxation would be as follows
$113470 at 15%
$ 151806 at 25%
Good business and accounting practices require the exercise of good judgment. How should ethics be incorporated into making accounting judgments? Why is ethics important?
Explanation:
Organizational ethics can be defined as a set of values, practices and principles that guide the company's actions and behaviors in the internal and external environment. A company's set of ethics must be shared by each employee, regardless of their hierarchical position in the company.
In commercial and accounting practices, ethics should be the basis for the conduct of professionals, since in this organizational area there is usually fraud in the statement of results, agreements and corruptions for the benefit of themselves and others.
Ethics must be implemented equally in every functional area of a company, as it positively or negatively impacts the organizational results and the attitude of employees. Through ethics as a fundamental principle of a company, it is possible to achieve several benefits, such as:
Improved results, Greater employee motivation, Improved communication, More market value.Ethics should be integrated into accounting practices by ensuring decisions are honest and fair, building trust in financial reporting. The Sarbanes-Oxley Act aims to enhance accountability, but fostering a culture of ethical behavior is key to sustainable ethical conduct.
Ethics in accounting practices is a critical aspect of professional conduct and decision-making. When making accounting judgments, it's essential to incorporate ethics by asking if the decisions are fair, honest, and transparent. This ethical framework is vital because it ensures trust and credibility in financial reporting, which is fundamental for stakeholders and the integrity of the financial markets. In light of scandals such as Enron and WorldCom, legislation such as the Sarbanes-Oxley Act was introduced to enhance corporate accountability. However, fostering a culture that promotes consistent ethical behavior and ethical decision-making on a daily basis is seen as a more sustainable approach to preventing unethical conduct.
Business ethics should be considered in everyday work decisions, analyzing the impact on various stakeholders and aligning with broader social, economic, and environmental responsibilities. This ongoing commitment to ethical practices, especially in the context of emerging technologies, poses challenges but also offers opportunities for companies to lead in ethical excellence. OB research suggests that an ethical company culture and commitment from leaders are more effective than rules alone in ensuring ethical conduct.
One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity?
Answer:
current price = $1191.79
Explanation:
given data
time t = 15 year
annual coupon bonds rate = = 7.5 %
par value = $1000
interest rate = 5.5%
maturity time = 14 year
to find out
current price of the bonds
solution
we get here first annual coupon rate = 7.5% of 1000
annual coupon rate C = $75
so now we get current price of bond
current price of the bonds = [tex]\frac{C}{(1+r)} +\frac{C}{(1+r)^2} +\frac{C}{(1+r)^3} +\frac{C}{(1+r)^4} ..........\frac{C}{(1+r)^{13}} + \frac{C+par\ value}{(1+r)^{14}}[/tex] .................1
put here value
current price = [tex]\frac{75}{(1+r)} +\frac{75}{(1+r)^2} +\frac{75}{(1+r)^3} +\frac{75}{(1+r)^4} ..........\frac{75}{(1+r)^{13}} + \frac{75+1000}{(1+r)^{14}}[/tex]
current price = [tex]\frac{75}{(1+r)} \frac{1-(\frac{1}{1+r})^{14} }{r} (1+r) + \frac{1000}{(1+r)^{14}}[/tex]
solve it we get
current price = $1191.79
For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, (2) identify the normal balance of the account, and (3) enter debit (Dr.) or credit (Cr.) to identify the kind of entry that would increase the account balance.a. Cash b. Legal Expense c. Prepaid Insurance d. Land e. Accounts Receivable f. Dividends g. License Fee Revenue h. Unearned Revenue i. Fees Earned j. Equipment k. Notes Payable l. Common Stock
Answer:
Please see explanation.
Explanation:
1. and 2.
Type of accounts Normal balance
a. Cash asset Debit
b. Legal Expense expense Debit
c. Prepaid Insurance asset Debit
d. Land asset Debit
e. Accounts Receivable asset Debit
f. Dividends equity Debit
g. License Fee Revenue revenue Credit
h. Unearned Revenue liability Credit
i. Fees Earned revenue Credit
j. Equipment asset Debit
k. Notes Payable liability Credit
l. Common Stock equity Credit
Journal entries to increase the balance:
Dr Cr
a. Cash Cash Revenue
b. Legal Expense Legal expenses Cash
c. Prepaid Insurance Prepaid Insurance Cash
d. Land Land Cash
e. Accounts Receivable Accounts receivable Revenue
f. Dividends Retained earnings cash
g. License Fee Revenue Cash License Fee Revenue
h. Unearned Revenue Cash Unearned revenue
i. Fees Earned Cash Fees Earned
j. Equipment Equipment Cash
k. Notes Payable Cash Notes Payable
l. Common Stock Cash Common Stock
Identification of the type of account as either an asset, liability, equity, revenue, or expense, including their normal balances and increase entries follow:
Account Type Normal Balance Increasing Entry
a. Cash Asset Debit Debit
b. Legal Expense Expense Debit Debit
c. Prepaid Insurance Asset Debit Debit
d. Land Asset Debit Debit
e. Accounts Receivable Asset Debit Debit
f. Dividends Expense Debit Debit
g. License Fee Revenue Revenue Credit Credit
h. Unearned Revenue Liability Credit Credit
i. Fees Earned Revenue Credit Credit
j. Equipment Asset Debit Debit
k. Notes Payable Liability Credit Credit
l. Common Stock Equity Credit Credit
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How will a new law mandating an increase in required levels of automobile insurance affect the equilibrium price and quantity in the market for new automobiles? Automobile insurance and automobiles are complements. An increase in automobile insurance rates will thus shift the demand curve for automobiles to the left. Some people Who would have bought new automobiles with the lower insurance rates choose not to have a new car.
Answer:
Price and quantity will fall
Explanation:
When a complement product/service gets more expensive or it simply becomes mandatory and unavoidable, the equilibrium price and quantity for the first product/service would fall. New consumers would be hindered to buy automobiles with the fact that they have to buy more insurance for that same car. This is the effect of the price change of a complement product/service.
Global Travel uses the contribution margin income statement internally. Global's first-quarter results are as follows:
Sales revenue $525,000
Less: Variable expenses: 210,000
Contribution Margin $315,000
Less: Fixed Expenses 172,000
Operating Income $142,800
Global's relevant range is sales of between $120,000 and $630,000.
1. Prepare contribution margin income statements at sales levels of $230,000 and $400,000.
( Hint: Use the contribution margin ratio.)
2. Begin by preparing the contribution margin income statement at the $230,000.
Answer:
Contribution margin ratio = Contribution Margin / Sales
= $ 315,000 / $ 525,000
= 0.6 or 60%
Hence, contribution margin at $ 230,000 Sales = Contribution margin ratio * $ 230,000 ( Sales )
= 0.6 * 230,000 = $ 138,000 ( Part A )
Contribution margin at $ 400,000 Sales = 0.6 * $ 400,000
= $ 240,000 ( Part B )
At Sales level of $ 230,000
Sales revenue $ 230,000
- Variable expenses (Sales - Contribution margin) $ 92,000
Contribution Margin ( From Part A ) $ 138,000
- Fixed Expenses $ 172,000
Operating Income / Loss $ (34,000)
At Sales level of $ 400,000
Sales Revenue $ 400,000
- Variable expenses $ 160,000
Contribution Margin ( From part B ) $ 240,000
- Fixed Expenses $ 172,000
Operating Income / Loss $ 68,000
Explanation:
Refer to the answer.
Phillis and Trey are married and file a joint tax return. For 2018, they have $4,800 of nonbusiness capital gains, $2,300 of nonbusiness capital losses, $500 of interest income, and no itemized deductions. The standard deduction for married filing jointly is $24,000. Based on these transactions, to arrive at the NOL, Phillis and Trey's taxable income must be adjusted by $ _______.
Answer:
$21,000
Explanation:
NOL, Phillis and Trey's taxable income must be adjusted by:
= Standard deduction - (Interest income + Net non business capital gain)
= $24,000 - [$500 + ($4,800 - $2,300)]
= $24,000 - ($500 + $2,500)
= $24,000 - $3,000
= $21,000
Therefore, the NOL, Phillis and Trey's taxable income must be adjusted by $21,000.
SnapShot Company, a commercial photography studio, has just completed its first full year of operations on December 31, 2015. General ledger account balances before year-end adjustments follow; no adjusting entries have been made to the accounts at any time during the year. Assume that all balances are normal.
Cash $2150
Prepaid rent $1,910
Supplies 3,800
Unearned photography fees 26,00
Common stock 24,000
Wages expense 11,000
Equipment 22,800
Utilities expense 3,420
An analysis of the firm's records discloses the following.
1. Photography services of $925 have been rendered, but customers have not yet paid or beern billed. The firm uses the account Fees Receivable to reflect amounts due but not yet billed.
2. Equipment, purchased January 1,2015, has an estimated life of 10 years.
3. Utilities expense for December is estimated to be $400, but the bill will not arrive or be paid until January of next year.
4. The balance in Prepaid Rent represents the amount paid on January 1,2015, for a 2-year lease on the studio.
5. In November, customers paid $2,600 cash in advance for photos to be taken for the holiday season. When received, these fees were credited to Unearned Photography Fees. By December 31, all of these fees are earned.
6. A 3-year insurance premium paid on January 1,2015, was debited to Prepaid Insurance.
7. Supplies available at December 31 are $1,520.
8. At December 31, wages expense of $375 has been incurred but not paid or recorded.
REQUIRED:
a. Prove that debits equal credits for SnapShot's unadjusted account balances by preparing its unadjusted trial balance at December 31, 2015.
b. Prepare its adjusting entries using the financial statement effects template.
c. Prepare its adjusting entries in journal entry form.
d. Set up T-accounts, enter the balances above, and post the adjusting entries to them.
can only add 5 attachments. the chart is missing
According to the given data of the Snapshot Company, the balance of unadjusted trial balance of debit(Dr.) and credit(Cr.) is $ 62990.
What do you mean by the unadjusted trial balance?
The general ledger account balances at the conclusion of a reporting period are listed in the unadjusted trial balance, which is done before any adjusting entries are made to the balances to produce financial statements.
Analysis of account balances and the creation of adjusting entries both begin with the unadjusted trial balance.
A list of all the business accounts that will show on the financial statements before year-end adjusting journal entries are made is called an unadjusted trial balance. This trial balance is referred to as unadjusted for that reason.
Here,
Calculation of Unadjusted Trial Balance are as follow:
Particulars Debit (Dr.) Credit (Cr.)
Cash 2150
Accounts Receivable 3800
Prepaid rent 12600
Prepaid insurance 2970
Supplies 4250
Equipment 22800
Accounts Payable 1910
Unearned Photography fees 2600
Common Stock 24000
Photography Fees Earned 34480
Wages Expenses 11000
utilities expenses 3420
Total 62990 62990
Therefore, according to the given data of the Snapshot Company, the balance of unadjusted trial balance of debit(Dr.) and credit(Cr.) is $ 62990.
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Last year Café Creations... Last year Café Creations, Inc. had an ROA of 25 percent, a profit margin of 12 percent, and sales of $4 million. What is Café Creations total assets? A. $12m B. $0.48m C. $1.00m D. $1.92m
Answer:
D. $1.92m
Explanation:
The formula to calculate ROA is:
ROA= Net income/Assets
From this formula, we can determine that the assets can be calculated by:
Assets=Net income/ROA
We have that ROA is 25% and we have to calculate the net income. We can do it using the profit margin as this indicates the percentage of revenue left after all expenses have been deducted from the sales twhich is the net income. So,
Net income= Sales*Profit margin
Net income= $4* 12%= $0,48 million
Then, we replace the values to find the assets:
Assets= $0,48/0,25= $1,92 million
The Café Creations total assets are $1,92 million.
The ________ environment consists of factors that affect consumer purchase ability and buying behavior.
Answer:
economic
Explanation:
Kaylor Equipment Rental paid $75 in dividends and $511 in interest expense. The addition to retained earnings is $418 and net new equity is $500. The tax rate is 35 percent. Sales are $15,900 and depreciation is $680. What are the earnings before interest and taxes?
Answer:
$1,269.46
Explanation:
Earnings Before Interest and Tax (EBIT) refers to the net income which is a difference between the revenue of an organisation and the expenses that were incurred in order to generate that revenue. The calculation of the EBIT is usually for a particular year and it is usually found in the Income Statement part of an organisation's financial statement.
To calculate the EBIT therefore, the Tax as well as interest must be added back to the Net Income after tax (usually added to retained earnings)
Therefore, Net Income = Dividends paid + Net Income (added to retained earnings)
= $75 + $418 = $493 - This represents a partial net income
The next step is to calculate the taxable income as follows:
The net income is $493, and the Tax rate is 35%
Taxable Income = $493/ (1-0.35) = $758.46
Earnings before interest and tax therefore =
Interest paid + Taxable Income
= $511 + $758.46 = $1,269.46
A customer has been receiving confirmations and statements by mail and asks the registered representative if these can be sent by e-mail. The proper response is that this______________.A. cannot be done because physical paper confirmations and statements are required to be sent to customers under FINRA rulesB. can be done if the customer requests by letterC. can be done if the customer requests by e-mailD. can be done only with the approval of the branch manager
Answer:
The correct answer is letter "C": can be done if the customer requests by e-mail.
Explanation:
Under the Financial Industry Regulatory Authority (FINRA) rules, customers of financial institutions can decide the way they receive their financial statements without written communication to the bank unless a third party makes the request. If it is not the case, account holders can communicate to the financial institution directly what way of communication best suits them.
_____ is the application of knowledge, skills, and techniques to project activities to meet project requirements. Select one: a. Project management b. Project pyramid c. Project literacy d. Project analysis
Explanation:
Project management,
symbolizes the initiation, planning, execution, controlling, and closure the work handled by a team to achieve defined targets is to meet specific success criteria at the given crucial time. The primary challenge is that we need to achieve the goals within the constraints.Also talks about budget, quality Have plans to face the crisisessential component of success is the teamworkForesee both risks and opportunitiesYou currently have $3,400 in an investment account that returns 11% per year.
How long will you have to wait until you can make a $5,000 down payment on a new car?
Answer:
time period is 3.7 years
Explanation:
given data
currently amount = $3,400
returns = 11% per year = 0.11
down payment future value = $5,000
solution
we will apply here future value formula
Future value = Principle × ( 1 + r )ⁿ ....................1
put her value
$5,000 = $3,400 × ( 1 + 0.11 )ⁿ
1.4706 = ( 1 + 0.11 )ⁿ
now we will take log both side
log(1.4706) = log ( 1 + 0.11 )ⁿ
0.1675 = n × 0.0453
n = 3.7 years
so time period is 3.7 years