Your firm is a U.K.-based importer of bicycles. You have placed an order with an Italian firm for €1,000,000 worth of bicycles. Payment (in euro) is due in 12 months.

Detail a strategy using futures contracts that will hedge your exchange rate risk. Have an estimate of how many contracts of what type and maturity.

Answer:

Finished goods

Explanation:

There are four stages of inventory

1. Raw materials – materials and components scheduled for use in making a product.

2. Work in process, WIP – materials and components that have began their transformation to finished goods.

3. Finished goods – goods ready for sale to customers.

4. Goods for resale – returned goods that are salable.

So, we see here that the inventory stage that deals with goods ready for sale is FINISHED GOODS.

Answer:

Finished goods

Explanation:

Answer:

1. Airwings, a commercial airline manufacturer, becomes optimistic about economic conditions after seeing reports of strong growth in consumer spending. Due to Airwings, planned investment will increase.  

2. The Federal Reserve announces an end to accommodative monetary policy, and is now implementing policy tools that will increase the real interest rate. Due to the Fed, planned investment will decrease.

3. In an effort to reduce constant budget deficits, Congress announces plans to increase the corporate income tax rate. Due to the Congress, planned investment will decrease.  

Explanation:

1) Due to Airwings, planned investment will increase.

Since the business has a promising future, it will start capacity expansion to cater to consumer demand.

2) Due to the Fed, planned investment will decrease.

A higher real interest rate suggests that borrowing cost is higher for the firms and so that they will lessen the investment in response to that.

3) Due to the Congress, planned investment will decrease.

A lower tax implies that higher profits and firms can pass these benefits to consumers with lower prices, to employees with higher wages and the government with a tax on profit. However, if the rate of the tax itself has been increased then in that case corporate will see higher tax as a dampener in sentiments and they might curtail investment plans.

The planned investment of Airwings, the Federal Reserve, and Congress are likely to increase, decrease, and decrease respectively due to their respective economic and policy contexts.

In each scenario, planned investment could change depending on the economic and policy situations. For option 1, Airwings is optimistic about future economic conditions due to strong growth in consumer spending. Because this optimism will likely lead to increased production and expansion, their planned investment will likely increase.

In the second scenario, the Federal Reserve is ending its accommodative monetary policy and increasing the real interest rate. Higher interest rates make borrowing for investment more expensive, so planned investment is likely to decrease.

Finally, in the third case, Congress is planning to increase the corporate income tax rate. This increase will decrease net corporate profits available for reinvestment, leading to a likely decrease in planned investment.

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Answer:

Explanation:

A) All the weights are equal.

For Firm A, Weighted score = (10 + 7 + 4)/3 = 21/3 = 7

For Firm B, Weighted score = (5+8+6)/3 = 19/3 = 6.3333

Firm A is better preferred

B) Factor 2 being twice important and Factor 3 having four times importance as Factor 1.

For Firm A, Weighted score = (10 + 7*2 + 4*4)/7 =40/7 =  5.7143

For Firm B, Weighted score = (5+8*2+6*4)/7 = 45/7 = 6.4286

Firm B is better preferred

Based on the weights applied and the factors given per firm, the firm that is best would be Firm A.

Factor 1 will be x.

Factor 2 will be 2x

Factor 3 will be 3x.

Total weights are:

= x + 2x + 3x

= 6x

Factor A is therefore = 1/6

Factor B is = 2/6

Factor C is = 3/6

Firm A weighted score is:

= ( (10 x 1/6) + (8 x 2/6) + (9 x 3/6))

= 8.83

Firm B weighted score:

= ( (5 x 1/6) + (8 x 2/6) + (6 x 3/6))

= 6.5

Firm A is therefore better with 8.83.

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Answer:

The euro return to investing directly in euros is 180 5% 10% 360   = ×  ÷   , so the euros available in 180 days is EUR10,000,000 × 1.05 = EUR10,500,000. Alternatively, the EUR10,000,000 can be converted into Swiss francs at the spot rate of EUR1.1960/CHF. The Swiss francs purchased would equal EUR10,000,000 / EUR1.1960/CHF = CHF8,361,204. This amount of Swiss francs can be invested to provide a 180 4% 8% 360   = ×  ÷   return over the next 180 days. Hence, interest plus principal on the Swiss francs is CHF8,361,204 × 1.04 = CHF8,695,652. If we sell this amount of Swiss francs forward for euros at the 180-day forward rate of EUR1.2024/CHF, we get a euro

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return of CHF8,695,652 ×EUR1.2024/CHF = EUR10,455,652. This is less than the return from investing directly in euros.If these were the actual market prices, you should expect investors to do covered interest arbitrages. Investors would borrow Swiss francs, which would tend to drive the CHF interest rate up; they would sell the Swiss francs for euros in the spot foreign exchange market, which would tend to lower the spot rate of EUR/CHF; they would deposit euros.

Explanation:

Final answer:

Upon calculating the returns, Carla Heinz would find that the euro deposit offers a higher return after 180 days than the Swiss francs deposit, even after fully hedging the currency risk. The euro deposit ends with EUR10,500,000 compared to EUR10,458,349.40 for the Swiss francs. Arbitrage would then lead to market adjustments in interest rates or exchange rates.

Explanation:

To decide which investment provides a higher euro return in 180 days between euro deposits and Swiss francs (CHF), Carla Heinz needs to calculate the amount she would earn from each after accounting for interest rates and any hedging actions necessary to mitigate foreign exchange risk.

For the euro deposit, with a 10% per annum interest rate, the simple interest for 180 days on EUR10,000,000 would be:

EUR10,000,000 x (10% / 2) = EUR500,000

The euro deposit investment would amount to EUR10,500,000 at the end of 180 days.

For the Swiss francs deposit, with an 8% per annum interest rate and calculating the returns after hedging:

First, the investment in CHF: EUR10,000,000 / EUR1.1960/CHF = CHF8,361,204.68

Simple interest for 180 days on the CHF deposit:

CHF8,361,204.68 x (8% / 2) = CHF334,448.19

Total in CHF at the end of 180 days: CHF8,695,652.87

Using the forward rate to convert back into euros:

CHF8,695,652.87 x EUR1.2024/CHF = EUR10,458,349.40

Comparing the two, Carla would have EUR10,500,000 from the euro deposit and EUR10,458,349.40 from the Swiss francs after hedging. Therefore, the euro deposit provides the higher return. If these were actual market prices, it would be expected that investors would move funds into euros until the arbitrage opportunity disappears, meaning the interest rates or exchange rates would adjust due to increased demand for euros and supply of CHF.

Answer:

Contribution Margin is 51.875%

Explanation:

Contribution Margin = Contribution/Selling Price × 100

Contribution

Contribution = Selling Price/ unit - Variable Costs/ Unit

Selling Price                                                     $80.00

Less Variable Costs

Raw Materials                                                   ($25.00)

Direct Labour (45mins/60mins×$18)               ($13.50)

Contribution                                                      ($41.50)

Contribution Margin

$41.50/$80.00×100=51.875%

Answer:

Explanation:

For materials:

Units transferred out 381,000*

Add:

Materials 42,000*100% = 42,000

Equivalent units 423,000

*Units transferred out = Units stated+Beg inv-End inv = 350,000+73,000-42,000 = 381,000

For conversion costs:

Units transferred out 381,000*

Add:

Conversion cost 42,000*30% = 12,600

Equivalent units 393,600

Correct answer is 423,000; 393,600

Using the weighted-average method, the equivalent units of production for materials and conversion costs for the month of July are 148,800 units each.

The equivalent units of production for materials and conversion costs can be calculated using the weighted-average method. To do this, we need to consider the units that were started and completed during the period, as well as the units that are still in process at the end of the period.

In this case, we can calculate the equivalent units of production for materials by adding the units from the beginning work in process inventory (60% complete) to the units started during July and multiplying it by the percentage of completion for the units in ending work in process inventory (30% complete). Similarly, we can calculate the equivalent units of production for conversion costs using the same method.

Using these calculations:

Equivalent units for materials = (Units in beginning work in process) + (Units started during July) × (Percentage of completion for units in ending work in process)

Equivalent units for conversion costs = (Units in beginning work in process) + (Units started during July) × (Percentage of completion for units in ending work in process)

Using the given information:

Units in beginning work in process: 73,000 units (60% complete)

Units started during July: 350,000 units

Units in ending work in process: 42,000 units (30% complete)

Equivalent units for materials = (73,000 × 0.6) + 350,000 × 0.3 = 43,800 + 105,000 = 148,800

Equivalent units for conversion costs = (73,000 × 0.6) + 350,000 × 0.3 = 43,800 + 105,000 = 148,800

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Answer:

A.) Firm B must have a higher ROE than first A.

Explanation:

Debt ratio is defined as percentage of a company's assets that is made up of debt and so it is calculated as a ratio of debt to assets of a company.

Interest expense is the amount that is paid to service a loan.

This implies that company B has higher loan portfolio than Company A.

Considering the accounting formula

Equity= Asset- Debt

So an increase in debt will result in a decrease in equity.

Return on equity= Net income/Equity

It follows that as debt increases and equity reduces, the ROE will increase since a shrink in the ROE denominator (Equity) will lead to an increase in the ratio.

Answer:

Overview

According to the RFP received, it is comprehended that the client wants to establish a business of manufacturing wooden toys for children. The key differentiator or unique selling point (USP) of the toys would be strong branding and marketing of the product. This will create a three value axis of Trust, Safety, and Identity.

The client is searching for strategic partner to establish the business to deliver and implement the strategic vision for the next five years. The following are the basic five essentials associated with strategic business plan:

• Mission statement

• Vision

• Strategic critical factors

• Objectives and strategic goals to be achieved.

• Implementation strategies

Approach:

Today, the toy market is overcrowded with many types of toys, each having a unique value proposition and targeting specific age brackets in children. Marketers treat children as a separate demographic segment. Hence, conduct detailed research on this segment to identify classifying the patterns buying behavior.

The especially planned framework would create our business plans for hyper competitive marketplaces. The approach to create the plan is shown below:

• Defining the scope of the product: It includes target marketing, selling channels and targeting demographics of children.

• Understand the market: the main 5 elements in this stage are competition in the market, existing suppliers, and purchasing power of buyers, substitute products, and entrance barrier.

• Positioning of brand: It includes segmentation, identification of potential market, targeting, positioning, communicating, and positioning.

• Manufacturing and distribution of products: it includes the acquisition of raw material, machinery, developing distribution channel, and supply chain management.

• Finance calculation and Human Resource: it includes calculation of revenue, profits, Return on investment, taxation, and other various measures.

Timeline:

According to RFP details, it is estimated time duration to create a business strategy is 8 months. The timeline is shown below:

• Defining the scope – 1 month

• Understand the market – 3 months

• Positioning of brand – 2 months

• Manufacturing and distribution of products – 1 month

• Finance calculation and Human Resource – 1 month

Introduction of business:

Our agency has been serving companies to succeed over years. We have functioned with multiple companies having wide range of experience in this sector. We have functioned with extensive clients and helped them to achieve a reliable growth rate. We are fully engaged with the client and facilitate them to develop designing of the business plan.

The experience and promise towards the success of our partners helped us grow. We have positioned as a medium-size business counseling firms. We help our clients to have clear goals. We help to grow the understandings and approach towards the business.

Final answer:

a. The dividend for the 1st year is 2.7095. b. The dividend for the 2nd year is 3.41787. c. The dividend for the 3rd year is 4.101444. d. The dividend for the 4th year is 4.101444. e. The dividend for the 5th year is 4.101444. f. The present value of the dividends, with a required rate of return of 14 percent, is 14.09.

Explanation:

a. What is the dividend for the 1st year?

To calculate the dividend for the 1st year, we need to multiply the last dividend paid by the growth rate for the 1st year. The growth rate for the 1st year is 26%, so the dividend for the 1st year would be 2.15 * 1.26 = 2.7095.

b. What is the dividend for the 2nd year?

Similarly, to calculate the dividend for the 2nd year, we multiply the dividend for the 1st year by the growth rate for the 2nd year. The growth rate for the 2nd year is 26% as well, so the dividend for the 2nd year would be 2.7095 * 1.26 = 3.41787.

c. What is the dividend for the 3rd year?

For the 3rd year, we multiply the dividend for the 2nd year by the growth rate for the 3rd year, which is 20%. So the dividend for the 3rd year would be 3.41787 * 1.20 = 4.101444.

d. What is the dividend for the 4th year?

The dividend for the 4th year would be the same as the dividend for the 3rd year, as the growth rate for the 4th year is also 20%. So the dividend for the 4th year would be 4.101444.

e. What is the dividend for the 5th year?

Similarly, the dividend for the 5th year would be the same as the dividend for the 3rd and 4th years, as the growth rate for the 5th year is also 20%. So the dividend for the 5th year would be 4.101444.

f. Compute the present value of these dividends if the required rate of return is 14 percent.

To compute the present value of the dividends, we need to discount each future dividend to its present value. We can use the formula:

PV = D / (1 + r)t

Where:

PV = Present Value

D = Dividend

r = Required rate of return

t = Number of years

Using this formula, we can calculate the present value of each dividend and then sum them up to get the total present value. To calculate the present value for each dividend, we need to divide the dividend by (1 + r)t. For example, the present value of the dividend for the 1st year would be 2.7095 / (1 + 0.14)1 = 2.3696.

Repeating this calculation for each dividend and summing them up, we get the total present value. However, since the question specifies to round intermediate calculations and final answer to 2 decimal places, we'll round each present value to 2 decimal places and then sum them up. Using this method, the total present value of the dividends would be 2.37 + 3.82 + 3.15 + 2.60 + 2.15 = 14.09.

Answer:

The costs of goods sold is $80,500

Explanation:

Cost of goods sold is defined as the cost which a company incurs to acquire or manufacture a product and selling it to the customer. The selling price doesnot have any effect on the cost of goods sold. The formula for COGS is,

Cost of goods sold = Beginning inventory + Purchases - Ending inventory

Here,

Beginning Inventory = $13,500

Purchases =  $84,500

Ending inventory = $17,500

COGS = 13,500 + 84,500 - 17,500 = $80,500

Answer:

$80,500

Explanation:

Cost of goods sold is defined as the cost of acquiring the goods sold during a period, and not the price for which goods are sold to the customer. In this problem, it is stated that inventory worth $80,500 was sold. Therefore, the cost of goods sold is $80,500.

Cost of goods sold can also be calculated as the initial inventory added to purchases minus ending inventory:

[tex]COGS =13,500+84,500-17,500\\COGS=\$80,500[/tex]

Answer:

Hi, you haven't provided the options to the question, so I will just give the answer in my own words and you can check with the options.

The answer is: TECHNICAL REASONING.

Explanation:

Technical reasoning is a learning pattern that in which one tends to enjoy problem solving, building, or doing things hands on to experience what is going on, more like a visual learner.

Technical reasoning refers to the pattern which describes the way we seek relevant real world experiences and practical answers. This pattern is a pattern of fewest words. It emphasizes the ability to solve problems using independent private thinking and hands-on interaction.

Since Bill tends to skim through resources for assignment and approaches writing with a preference for demonstrating what he knows, rather than putting it into words, therefore, it means he uses TECHNICAL REASONING.

The marginal benefit of Pookie selling the machine "as is" now is $1,000.

To determine the marginal benefit if Pookie sells the machine "as is" now, we need to compare the amount he will receive by selling it immediately ($1,000) to the amount he expects to receive after finishing the restoration ($2,000).

By selling it now, Pookie will receive $1,000, whereas if he completes the restoration, he expects to receive $2,000.

Therefore, selling the machine "as is" now would result in a marginal benefit of $1,000.

Tune Store would need to adjust their books for Model B's inventory, writing down the inventory by $500 due to valuation at NRV being less than cost. This is processed by debiting (increasing) an expense account such as Cost of Goods Sold and crediting (decreasing) the Inventory account.

The question regards the year-end adjustment to mark inventory down to the net realizable value (NRV) within the context of the Tune Store. Tune Store uses lower cost and NRV to report its inventory. Therefore, if the cost of an item exceeds the NRV, the business would need to write down the inventory and adjust its books.

In this case, the adjustment applies to Model B. The unit cost is $50, but the NRV is only $40. This implies a $10 write-down per Model B unit. So, for 50 units, the total write-down would be $500. The effects of the adjustment would involve debiting (increasing) an expense account such as Cost of Goods Sold and crediting (decreasing) the Inventory account.

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Final answer:

The net income of $25,000 is not sufficient to cover the combined allowances for Nabb and Fry, totaling $33,000. Therefore, each partner receives their respective allowances with Nabb receiving $19,000 and Fry receiving $14,000, with no remainder to distribute.

Explanation:

The problem involves distributing net income in a partnership according to agreed allowances and sharing the remainder equally.

Therefore, the distribution of income is as follows:

Since the net income is not enough to cover all allowances, there are no additional amounts to distribute equally between Nabb and Fry.

Answer:

Explanation:

First,since the Burchart Gardens charges an admission fee of $30 for each visitor,anyone who has not paid the fee cannot or will not be able to have access inside the garden.Therefore,it is currently not a free service for all the visitors.In this sense,a visit to the Butchart Garden is excludable.It can be assumed that any visitor who wishes to come inside the garden and have a visit will have to mandatorily pay the admission fee.

Secondly,as Butchart Garden is a public area and anyone who pays the admission fee can officially gain access to the garden,enjoyment of the natural and aesthetic beauty of the garden by any one visitor does not reduce the simultaneous enjoyment of any other visitor who has paid the admission fee and hence,gained access to the garden.In economic language,if we consider the garden visit as a particular commodity,then the consumption of the commodity by any one visitor or consumer does not reduce the simultaneous consumption of any other visitor/s or consumer/s,provided that they have all paid the admission fee to gain access to the commodity or garden in this case.Therefore,visits to the Butchart Garden can be considered as non-rivalrous.

Now,since the visit to the Butchart garden is both excludable and non-rivalrous in nature,it can be considered as an example of a Club Good.

Final answer:

Visits to Butchart Gardens are excludable and nonrival in consumption, making them a club good.

Explanation:

Visits to Butchart Gardens are excludable because they can be prevented from those who have not paid the admission fee. Since the garden charges a fee and can limit access based on whether an individual has paid, it fits the criteria of an excludable good.

Furthermore, visits are nonrival in consumption, at least until the point at which additional visitors would begin to diminish the experience for others. Given the scenario described, that point is not reached, as the garden can hold many more visitors than it currently does.

Therefore, Butchart Gardens represents a club good, which is excludable but nonrival in consumption up to a certain capacity.

Answer:

At May 31​, Austin's Tavern should recorded of $5,500 for the period January 1 through May 31 by the entry:

Debit Rent Expense $5,500

Credits Prepaid rent $5,500

Explanation:

On  January 1, Austin​'s Tavern prepaid rent of $ 13 comma 200 for the full year. The company records the insurance as the prepaid Insurance:

Debit Prepaid rent $13,200

Credit Cash $13,200

On May 31, the last day of the following 5 months, the company records an adjusting entry that Credits Prepaid rent for $5,500 ($13,200 divided by 12 months times the 5 months that will be prepaid as of May 31) and Debits Rent Expense for $5,500

Debit Rent Expense $5,500

Credits Prepaid rent $5,500

Answer:

Cost of capital=11.18%

Explanation:

First We will calculate the Equity of firm:

Equity= Number of share* Book value per share

Equity= 10,000* $25

Equity= $250,000

Long-term debt=$300,000

Expected rate of return=15%=0.15

Current yield to maturity (rdebt)=8%=0.08.

Value of firm=Equity+Long-term debt

Value of firm= $250,000+$300,000

Value of firm= $550,000

Formula:

[tex]Cost\ of \ Capital=\frac{Equity}{Value\ of\ firm}* Rate\ of\ return+\frac{Debit}{Value\ of\ firm}* yield\ to\ maturity[/tex]

[tex]Cost\ of\ Capital=\frac{\$250,000}{\$550,000}*0.15+\frac{\$300,000}{\$550,000}*0.08\\ Cost\ of\ Capital=0.1118[/tex]

Cost of capital=11.18%

Answer:

Explanation:

The U.S. imposes substantial taxes on cigarettes but not on loose tobacco. When the tax on cigarettes went into effect, the demand for home cigarette rolling machines most likely increased, causing the price of cigarette rolling machines to rise and the quantity of machines purchased to rise.

Answer:

The demand for home cigarette rolling macines will most likely increase

Explanation:

First, the imposition of substanal taxes on cigarettes means that the cost of consuming a cigarette will increase substantially as well. This means the consumers of cigarette will begin to look for cheaper alternatives to buying already manufactured cigarettes

The most obvious alternative is to get a home cigarette rolling machine and since the demands for the home cigarettes will go up it means the price of the cigarette rolling machines will also rise. Furthermore, the quantity of the machines purchased will rise as well.

The reason for this reaction is that Tobacco and Cigarette roling machines are complementary goods, while The Cigarette rolling machines and cigarettes are substitute goods. As the price of the cigarettes go up, the demand for cigarette rolling machines increase, due to the low cost of getting loose tobacco.

Answer:

It endures over the lifetime of a third person, after which the property passes from the tenant holder to the original grantor

Explanation:

"Pur autre vie" is a French phrase which refers to "for another's life".  In such cases, the grantor passes on a property to a party, the duration of which is dependent on the life of a third person.

Upon the demise of such a third party, the estate in such a property gets reverted to the original grantor.

For example, A grants an estate in property to B, the duration of which is limited till the lifetime of C. In the event of C's death, the property reverts back to A i.e the original grantor.

The single-step income statement for Starr Co. for 2014 shows total revenues of $560,000 and total expenses of $485,000, yielding a net income of $75,000. The earnings per share are $0.75.

In order to prepare a single-step income statement for Starr Co. for the year 2014, you need to tally the total revenues and the total expenses.

Revenues include Sales Revenue of $540,000 and an unrealized gain on value of patents for $20,000, giving total revenues of $560,000.

Expenses include Cost of Goods Sold ($330,000), Salaries and wages expense ($120,000), Income tax expense ($25,000), and Other operating expenses ($10,000), giving total expenses of $485,000.

By subtracting total expenses from total revenues, we arrive at a Net Income of $75,000.

Finally, to determine earnings per share, you divide the Net Income by the number of outstanding shares. So, $75,000 divided by 100,000 shares gives an Earnings Per Share(EPS) of $0.75.

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Answer:

$134,235

Explanation:

The future value (FV) of each when you retire in 10 years:

FV of Bond = $200,000 *(1+7.5%)^10 = $412,206

FV of Stock = $400,000 *(1+11.5%)^10 = $1,187,979

After 10 years, the total amount you have is $1,600,185 (= $412,206 +  $1,187,979)

The we use formula PMT in excel to calculate the amount you can withdraw in 25 years:

=PMT(6.75%,25,-1600185) = $134,235

Please see excel attached for the calculation.

Answer:

True

Explanation:

This will not accomplish the senator's goal because payroll taxes work in the same way as taxes on goods. Labor is the good here and wage is the price that is being paid for it. Tax is a wedge between what firms pay and what workers receive. When a payroll tax is enacted the wage received by workers falls and that paid by firms rises. The payment of taxes will be made by the firm according to the legislation and the wages for the workers will decrease according to the elasticity of demand and supply of labor market and ultimately the tax paid by the firms and the workers will not change.

Answer: True

Explanation: The tax wedge here is the difference between the wages employees take home and how much employers actually pay to employ them. It is also the difference in the market forces of demand and supply due to imposing tax on goods and services.

Firstly, the burden of tax will not rest with firms but will be transferred to consumers through goods and services which will affect demand. Also increasing the payroll tax paid by employers will make employees worse off as the burden of payroll tax still rest on the employees, it will only decrease  take home wages.

Answer:

PART A

A constructive receipt is a term often used in both accounting and taxation to describe the taxation of an income even when the income had not been received by the person being taxed.

IMPORTANCE OF CONSTRUCTIVE RECEIPTS

It guarantees the early payment of taxes without undue delays from the tax payer.

It ensures effective taxation by effective tracking of the tax payers.

PARTB

(B) Under the concept of constructive​ receipt, income is taxed when it becomes available to the tax payer. The taxpayer cannot defer the tax by refusing to accept payment.

Explanation:

Constructive reciept is of great importance and relevance in the field of cost accounting and taxation,it guarantees early payment of taxes and effective tracking of tax payers by the regulatory or taxation bodies.

Under the concept of constructive reciept, income is taxed when it becomes available to the tax payer and it can not be deferred by refusing to accept payment.

Constructive receipt is a tax law concept where income is taxed when it becomes available to the taxpayer, regardless of when it is actually received. This prevents manipulation of tax payment timing by delaying income acceptance.

The term Constructive Receipt is defined under the tax law context. According to this concept, income is considered to be received, and subsequently liable for tax, when it becomes readily available to the taxpayer, irrespective of when it is actually received. In other words, option (B) is the accurate definition of constructive receipt. The taxpayer cannot defer tax by refusing to accept the payment or by directing it to be paid to another party.

The importance of constructive receipt lies in its role in determining the taxation period for any given income. It prevents the taxpayer from manipulating the timing of their tax payment by refusing or delaying the acceptance of their income. Constructive receipt is a critical aspect of income recognition and timing of tax liability for cash-based accounting systems.

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Given:

Beginning retained earnings = $217,000

Revenues = $417,000

Expenses = $358,500

Dividends = $12,700

To find:

Ending retained earnings

Solution:

To calculate the ending retained earnings first we have to calculate the net income of the company. The formula to calculate the net income is as follows,

[tex]\bold{\text{Net income = Revenues - Expenses}}[/tex]

On plugging in the values in the above formula we get,

[tex]\Rightarrow \$417,000 - \$358,500 = \$58,500[/tex]

The formula to calculate the ending retained earnings is as follows,

[tex]\bold{\text{Ending retained earnings = Beginning retained earnings + Net income - Dividends}}[/tex]

[tex]\Rightarrow \$217,000 + \$58,500 - \$12,700 = \$262,800[/tex]

Therefore, the retained earnings on the balance sheet as of December 31, 2016 will be $262,800 that is option c.

Answer:

C.

Explanation:

The change model was developed by Kurt Lewin. The model is divide into three steps: unfreezing, changing and refreezing.

According to this three-step model of Kurt, the step that represents the 'unfreezing' stage is option C.

The unfreezing stage of the change model helps people to gain an overview of daily life. It helps to unlearn the bad habits and adopt new and innovative ways to reach the goal or objectives.

So, according to the definition of the 'unfreezing' stage of the change model, the correct answer is option C as in this step, Kotter is creating a new vision or ways to reach the goal or vision.

In John Kotter's change model, the 'unfreezing' stage in Lewin's model corresponds to the first few steps, encapsulated best by the step that involves creating a new vision to direct change and strategies for achieving that vision.

In John Kotter's eight-step plan for implementing change, the equivalent to the 'unfreezing' stage in Kurt Lewin's three-step model would most fittingly be 'Create a new vision to direct the change and strategies for achieving the vision'. This is because the unfreezing stage in Lewin's model entails getting ready to change, which involves making individuals or organizations aware of the necessity and impending nature of change, a criterion that aligns with creating a new vision for change.

However, it's important to note that Kotter's model is a more granular expansion on Lewin's model, and so doesn't map directly onto the three stages of Lewin's model. The unfreezing stage corresponds to the first few steps of Kotter's model, which collectively articulate the need for change and pave the way for it.

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Answer:

The amount of amortization expense recognized for the year 2017 would be =$174000.

Explanation:

Amortization expense for year 2017 = ($1044000 / 4 years) * 8 months/12 months

Amortization expense for year 2017  = ($261000*8 months/12 months)

Amortization expense for year 2017= $174000

Answer:

internal rate of return is 20.463%

Explanation:

given data

Year   Cash Flow

1         $48,000

2         $46,000

3          $41,000

equipment cost = $95,000

to find out

Determine the internal rate of return

solution

we consider here  internal rate of return  is x

so we can say present value of inflows = present value of outflows

equate here

$95000 = [tex]\frac{48000}{(x)} +\frac{46000}{(x)^2} +\frac{41000}{(x)^3}[/tex]  

solve it we get

x = 20.463 %

so internal rate of return is 20.463%

Final answer:

To analyze the investment in manufacturing equipment, calculate the Net Present Value (NPV) using discounting and cash inflow values which gives 20.44%

Explanation:

Home Security Systems is analyzing the purchase of manufacturing equipment. To evaluate the investment, we can calculate the Net Present Value (NPV) of the cash inflows over the next three years. To do this, we discount each cash inflow using an appropriate discount rate to account for the time value of money. We then subtract the initial cost of $95,000 from the present value of all cash inflows to determine the NPV.

Year   Cash Flow

1         $48,000

2         $46,000

3          $41,000

Equipment cost = $95,000

Thus,

95,000 = 48000/x + 46000/x + 41000/x

= 20.44

Answer:

Correct option is F,$41,000

Explanation:

The cash dividends paid in the year is the sum of the cash dividends payable at the beginning of the year and cash dividends declared in the year less cash dividends payable at the end of the year.

The cash dividends paid in the year is summarized thus:

Cash dividends payable at the beginning of the year   $10,000

Cash dividends declared in the year                               $42,000

Cash dividends payable at the end of the year              ($11,000)

cash dividends paid in the year                                         $41000

This cash dividends paid would appear under the financing activities section of the cash flow statement as an outflow.

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Expected sales= 2,000 units

Selling price= $400​

Unitary variable cost= $300

Fixed costs= $100,000.

First, we need to calculate the break-even point both in units and dollars:

Break-even point= fixed costs/ contribution margin

Break-even point= 100,000/ (400 - 300)= 1,000 units

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 100,000/ (100/400)= $4,000,000

Now, we can calculate the margin of safety in units, dollars and as a percentage:

Margin of safety (units)= (current sales level - break-even point)

Margin of safety (units)= 2,000 - 1,000= 1,000 units

Margin of safety (dollars)= 8,000,000 - 4,000,000= $4,000,000

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= 4,000,000/8,000,000= 0.5= 50%

Answer:

a. $12,700

b. $2,700

Explanation:

The $10,000 she began with is an asset to the company and is also the owners equity.

Equipment purchased reduces cash but gives rise to another asset (fixed assets) hence the assets value does not change. Supplies is purchased on account, resulting in the creation of an asset and a liability.

Hence total asset owned by Shane Catering

= $10,000 + $2,700

= $12,700

Total liabilities = $2,700

Shane's Catering has $19,200 in total assets and owes $2,700 in liabilities.

Shane's Catering began with cash of $10,000. Shane then bought supplies for $2,700 on account. Separately, Shane paid $6,500 for equipment.

a. To calculate the total assets, we need to add up the cash, supplies, and equipment. So, Shane has a total of $10,000 + $2,700 + $6,500 = $19,200 in total assets.

b. Shane owes $2,700 in liabilities, which represents the amount owed for the supplies purchased on account. This is the only liability mentioned in the question.

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