Answer: The correct answer is $333,333.33
Explanation: Perpetuity is a cashflow that is payable or receivable forever.
In calculating the present value of a Perpetuity, the cash flow will be divided by the rate.
That is $15,000/ 4.5%
=$15,000/ 0.045
=$333,333.33
The money to be set aside now to be able to pay $15,000 every year is $333,333.33
Listed as follows are nine technical accounting terms.
Unrecorded revenue Adjusting entries Accrued expenses
Book value Matching principle Accumulated depreciation
Unearned revenue Materiality Prepaid expenses
Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.
a. The net amount at which an asset is carried in the accounting records as distinguished from its market value.
b. An accounting concept that may justify departure from other accounting principles for purposes of convenience and economy.
c. The offsetting of revenue with expenses incurred in generating that revenue.
d. Revenue earned during the current accounting period but not yet recorded or billed, which requires an adjusting entry at the end of the period.
e. Entries made at the end of the period to achieve the goals of accrual accounting by recording revenue when it is earned and by recording expenses when the related goods and services are used.
f. A type of account credited when customers pay in advance for services to be rendered in the future.
g. A balance sheet category used for reporting advance payments of such items as insurance, rent, and office supplies.
h. An expense representing the systematic allocation of an asset's cost over its useful life.
Answer:
a. Book value
b. Materiality
c. Matching principle
d. Unrecorded revenue
e. Adjusting entries
f. Unearned revenue
g. Prepaid expenses
h. Accumulated depreciation
Explanation:
The assets are recorded at cost and then depreciated over their useful lives . The net balance of an asset being the cost less its accumulated depreciation is its Net Book Value.
Materiality is the concept whereby any accounting principle can be departed from if it is of a small amount
All expenses incurred during a period to earn revenues is known as matching principle.
Any revenue earned but not recorded or billed is known as unrecorded revenue.
Adjusting entries are recorded at period end to record revenues and expenses under accrual method.
Advances received for services to be provided after the period end is recorded as unearned revenue.
Amounts paid in advance for services/ benefits to be received in the future are known as prepaid expenses
Assets cost are allocated over its estimated useful life is known as accumulated depreciation.
William McChesney Martin, who served as Chairman of the Federal Reserve in the 1950s and 1960s, is famous for saying that central banks should "take away the punch bowl just as the party is heating up".
What does this saying mean? Why wouldn't we want the "party" to get too exciting? What are the potential impacts of adding too much fuel to the economy?
Answer:
PART A
The saying means that it should remove the economic incentives when it has reached its peak in order to prevent it from impacting negatively on the economy.
PART B
(1) It can lead to Inflation.
(2) it can lead to reduced Productivity within the economy.
Explanation:Central banks all over the world are known to put incentives and Stimulus factors in place in order to help improve, resuscitate or sustain the economy in terms of crisis, but the impacts of the Incentives or Stimulus programs of the central banks can lead to certain negative consequences if not effectively monitored or removed when necessary.
SOME OF THE NEGATIVE CONSEQUENCES WHICH CAN ARISE IF THE INCENTIVES OR STIMULUS PROGRAMS USED TO SUSTAIN THE ECONOMY ARE NIT REMOVED EXAMPLES INCLUDE IT CAN LEAD TO INFLATION,IT CAN LEAD TO REDUCTION IN THE OVERALL PRODUCTIVITY WITHIN THE ECONOMY ETC.
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2014 (19.80 %) (16.10 %) 2015 28.75 17.80 2016 14.50 30.60 2017 (3.00 ) (8.90 ) 2018 22.75 19.80 Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A: 8.64 % Stock B: 8.64 % Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year
Answer:
Year Stock A's Returns (rA) Stock B's Returns (rB)
2014 (19.80%) (16.10%)
2015 28.75% 17.80%
2016 14.50% 30.60%
2017 (3.00%) (8.90%)
2018 22.75% 19.80%
a) Calculate the average rate of return for each stock during the period 2014 through 2018.
Average rate of return of each stock will be calculated by taking an aggregate for all the returns of each stock and dividing it by 5, which is the total number of years.
a) The average rate of return for Stock A during the period 2014 through 2015 is given by ,
Average Return = ( -19.80 + 28.75 + 14.50 – 3.00 +22.75)/5 = 8.64%
The average rate of return for Stock b during the period 2014 through 2015 is given by ,
Average Return = ( -16.10 + 17.80 + 30.60 – 8.90 +19.80)/5 = 8.64%
b) Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year?
Since the investment in the portfolio created by stock A and stock B is 50-50, we will calculate portfolio return each year by multiplying each return with it's weight in the portfolio (50%) to find out the realized rate of return each year and then take an average to find out the average return of the portfolio during these 5 years
Realized Return for 2014:
= 0.5*(-19.80) + 0.5*(-16.10%) = -17.95%
Realized Return for 2015:
= 0.5*(28.75)+ 0.5*(17.80)= 23.27%
Realized Return for 2016:
= 0.5*(14.50) + 0.5*(30.60) = 22.55%
Realized Return for 2017:
= 0.5*(-3.0) + 0.5*(-8.90) = -5.95%
Realized Return for 2018:
= 0.5*(22.75)+ 0.5*(19.8) = 21.27%
The average return on the portfolio have been during this period is given by ,
Realized Rate of Return = ( - 17.95% + 23.27% + 22.55% - 5.95% + 21.27% )/5 = 8.638%
Thomas Brothers is expected to pay a $0 50 per share dividend at the end of the year (i.s., D1=$0.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 15%. What is the stock’s current value per share?
Answer:
$6.25
Explanation:
Use the dividend discount model the Gordon growth model
given
expected dividend per share = $0.50
growth rate =7%
Required rate o return = 15%
P = D1/r-g
=0.50/0.15-0.07
=$6.25
Which of the following is a characteristic of the Consolidation phase of e-commerce? predominance of pure online strategies brand extension and strengthening becomes more important than creating new brands shift to a technology-driven approach emphasis on revenue growth versus profits
Answer: Extension and strengthening becomes more important than creating new brands
Explanation: E-commerce (electronic commerce) is a term used in the trade and commerce to describe the trading or commercial activities driven by electronic systems such as internet, social media etc,this type of commerce or trade is technologically driven. It is made up of the following stages
Stage 1 : involves the initial starting and it is characterized by a fast growth.
Stage 2: PLATEAUING GROWTH OR CONSOLIDATION OF GROWTH IS CHARACTERIZED BY THE LEVELING UP OR STABILISATION OF GROWTH AFTER THE INITIAL FAST GROWTH EXPERIENCED IN THE FIRST STAGE. In this stage, Extension and strengthening becomes more important than creating new brands.
Stage 3: Renewed growth characterized by the implemention of changes both platforms or systems, characteristics, resources and procedures etc.
The consolidation phase of e-commerce is characterized by a predominance of pure online strategies, brand extension and strengthening, a shift to a technology-driven approach, and an emphasis on revenue growth over profits.
Explanation:The consolidation phase of e-commerce is typically characterized by several key features. One critical characteristic is the predominance of pure online strategies. This is a time when fully-digital strategies take precedence over others. Another significant characteristic of this phase is the importance of brand extension and strengthening over the creation of new brands. Rather than creating new brands, companies focus on strengthening and expanding the brands they already have. A third characteristic is the shift to a technology-driven approach. This implies that more emphasis is placed on the use of technology for achieving business objectives. The last characteristic is an emphasis on the revenue growth versus profits which may not be as important in this phase.
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The following is the Bravo Unlimited unadjusted Trial Balance. Bravo Unlimited Unadjusted Trial Balance December 31, 2016 Account Title Debit Credit Cash $88,450 Accounts Receivable 231,860 Supplies 6,255 Prepaid Rent 11,000 Equipment 395,285 Accumulated Depreciation $224,260 Accounts Payable 72,555 Wages Payable 0 Capital Stock 220,000 Retained Earnings 111,145 Service Revenue 893,105 Interest Income 1,500 Rent Expense 60,500 Wages Expense 527,260 Supplies Expense 42,520 Utilities Expense 8,595 Depreciation Expense 144,000 Interest Expense 6,840 _______ Totals $1,522,565 $1,522,565 Adjusting Items: 1. A physical inventory shows supplies on hand of $3,000 at year end. 2. The prepaid rent covers December 2016 thru March 2017 rents. 3. December depreciation on equipment is $11,000 per month. 4. At year end Wages of $10,000 were earned but unpaid. Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment. If no entry is required then write "No Entry Required."
Answer:
supplies expense 3255 debit
supplies 3255 credit
--to record supplies consumed--
rent expense 2750 debit
prepaid rent 2750 credit
--to record expired rent--
depreciation expense 11000 debit
acc. Dep. equipment 11000 credit
-to record depreication over the year--
wages expense 10000 debit
wages payable 10000 credit
--to record earned wages from emplyees--
Explanation:
a) we subtract dfrom the book value the physical count of suppliesd and assume the difference as expense. (if there is purcahse we add them)
b) we divide the 11,000 rent over the four months to get the value for December (one-month
c) and d) the values are given
Jonathan purchased coffee for $5 at Jennifer's coffee shop, although he was willing to pay $9. Jennifer was willing to accept $3 for the coffee. The results of this transaction are a consumer surplus of _____ and a producer surplus of $______
Answer:
1) Consumer surplus of $4
2) producer surplus of $2
Explanation:
1) The consumer surplus is the difference between the highest price a consumer is willing to pay and the actual market price of the good or service.
Consumer surplus = Maximum price willing to pay - actual price
Consumer surplus = $9 - $5
Consumer surplus = $4
2) The producer surplus is the difference between the market price and the lowest price a producer would be willing to accept.
Producer surplus = Total revenue - total cost.
Total revenue is the revenue received from selling.
Producer surplus = $5 - $3
Producer surplus = $2
Therefore, the results of the transaction between Jonathan and Jennifer are a consumer surplus of $4 and a producer surplus of $2.
Suppose that in 1945 Japan had an initial per capita GDP of $10,000 per year and China had a per capita GDP of $250. Subsequently, China is growing at 7 percent per year and Japan is growing at 3.5 percent per year until 2005 and then stops growing altogether. In 2015, ________ would have been the lower-income country, with a per capita GDP of approximately ________. (Hint: you may want to use the Rule of 70 to answer this question.)
Answer:
In 2015, China would have been the lower-income country, with a per capita GDP of approximately 32,000.
We would use the rule of 70 to answer this question.
2015-1945= 70 years.
China annual growth rate is 7%. so according to the rule of 70.
=[tex]\frac{70}{7}[/tex] = 10 years is the time it takes China to double.
70/10 = China's GDP would double 7 times in these 70 years.
China GDP in 2015: 250 * 2 * 2 * 2 * 2 * 2 * 2 * 2= 32,000.
Japan GDP in 1945: $10,000
Since Japan's economy stops growing in 2005.
2005-1945 = 60 years.
Japan annual growth rate is 3.5%. so according to the rule of 70.
[tex]\frac{70}{3.5}[/tex] = 20 years is the time it takes Japan to double.
60/20 = China's GDP would double 3 times in these 60 years.
Japan GDP in 2015: 10,000 * 2 * 2 * 2= 80,000.
Marionnette International is a worldwide operator and franchisor of hotels and related lodging facilities totaling nearly $1.6 billion in net property and equipment. Assume that Marionnette replaced furniture that had been used in the business for five years. The records of the company refilected the following regarding the sale of the existing furniture.
Furniture (cost) $6,060,000
Accumulated depreciation 5,551,000
Required:
1. Prepare the journal entry for the disposal of the furniture, assuming that it was sold for: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars not in millions.)
a. $509,000 cash
b.$1,619,000 cash
c.$407,000 cash
Answer: The following journal entries apply in each of the scenarios:
(a) If the furniture was sold for $509,000 cash,
Debit ($) Credit ($)
Accumulated depreciation 5,551,000
Furniture (cost) 6,060,000
Cash (sale proceeds) 509,000
(Being entries to record disposal of furniture at the net book value)
(b) If the furniture was sold for $1,619,000 cash,
Debit ($) Credit ($)
Accumulated depreciation 5,551,000
Furniture (cost) 6,060,000
Gain on disposal of asset 1,110,000
Cash (sale proceeds) 1,619,000
(Being entries to record disposal of furniture)
(c) If the furniture was sold for $407,000 cash,
Debit ($) Credit ($)
Accumulated depreciation 5,551,000
Furniture (cost) 6,060,000
Loss on disposal of asset 102,000
Cash (sale proceeds) 407,000
(Being entries to record disposal of furniture)
Explanation: Normally, most organizations dispose their assets using the net book value (cost minus the accumulated depreciation) to determine the price to sell the assets. So, most of them do not intend to sell below the NBV, they usually add margins to make profit except in certain other considerations. To recognize the disposal, the cost (asset account) has to be credited while the accumulated depreciation has to be debited. Of course the sales proceed goes into your cash account as receipt (debit), then the difference between the sales proceed and the NBV is either a gain on disposal or loss.
Information necessary to prepare the year-end adjusting entries appears below.
Depreciation on the office equipment for the year is $12,000.
Employee salaries and wages are paid twice a month, on the 22nd for salaries and wages earned from the 1st through the 15th, and on the 7th of the following month for salaries and wages earned from the 16th through the end of the month. Salaries and wages earned from December 16 through December 31, 2018, were $1,700.
On October 1, 2018, Pastina borrowed $72,300 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years.
On March 1, 2018, the company lent a supplier $30,300 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2019.
On April 1, 2018, the company paid an insurance company $6,400 for a two-year fire insurance policy. The entire $6,400 was debited to insurance expense.
$1,010 of supplies remained on hand at December 31, 2018.
A customer paid Pastina $1,980 in December for 1,650 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue.
On December 1, 2018, $2,800 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $1,400 per month.
For requirement 4, Assume that no common stock was issued during the year and that $3,600 in cash dividends were paid to shareholders during the year.
4. Prepare the income statement, statement of shareholders' equity and classified balance sheet for the year ended December 31, 2018
Answer:
Although the Question seems incomplete, i have made out the Income statement, Balance sheet and Shareholders'equity statement from the information provided to ease you into completing it as soon as the full details of questions is provided
Explanation:
Income Statement
For the Year Ended 31 December 2018
Sales Not Provided
Income
Accrued interest on loan (8% x 10/12 x 30,300) $1939.2
Total Income $1,939.2
Expense
Depreciation $12,000
Employee Salaries & Wages ($1,700 x 2 x 12) $40,800
Interest on loan Accruals (12% x 3/12 x $72300) $2,169
Insurance (recognizable in 2018 is half of $6,400) $3,200
Total expenses $58,169
Net Loss -$56,229.8
Dividend Paid -$3,600
Net transfer to retained earnings -$59,829.80
Balance Sheet
As at December 31, 2018
Current Account
Supplier loan (Accounts receivable) A $30,300
Fire insurance policy prepayment $3,200
Stock in hand $1,010
Prepaid rent $1,400
Total Current Assets $35,910
Current Liability
Customer Advance Payment $1,980
Total Current Liability $1,980
Long term liability
12% interest backed 10yr Bank loan $72,300
Total Long term liability $72,300
Total Net Assets -$38,370
Shareholders Fund (Statement of Shareholders'equity)
Retained Earnings transferred from Income statement -$59,829.80
The leadership team meets weekly to update each other on what events are taking place in each unit. Each division director completes an update report to be attached to the minutes. Since many of the division directors meet with each other, there are rarely any surprises. This weekly communication calls for ____.
Answer:
The leadership team meets weekly to update each other on what events are taking place in each unit. Each division director completes an update report to be attached to the minutes. Since many of the division directors meet with each other, there are rarely any surprises. This weekly communication calls for an increased number of face to face meetings.
Explanation:
This is an example of face to face meetings and quite an increase of the same in the organization in order to update each other on the events that are taking place in the organization.
This weekly communication calls for lean media.
The following information should be considered:
In the given case, the directors of different divisions weekly meet and update each other over the progress. Since many of these division directors meet with each other there hardly are surprises. It is an example of lean media. Lean media involves regular interaction between groups that leaves them with regular updates about each other.Learn more: https://brainly.com/question/3331860?referrer=searchResults
On June 1, Year 3, Pete, a partner in the Sky Castle partnership, contributed to the partnership some undeveloped land (not inventory), which he had purchased on May 15, Year 1. On September 22, Year 7, Sky Castle distributed the land to Linda, who is also a partner. Linda quickly sold the land within 1 month of receipt. Linda's holding period for the land:______
a. Began May 15, Year 1.
b. Began June 1, Year 3.
c. Began September 22, Year 7.
d. Is short-term because she received the land from a partnership in which she is a partner.
Answer:
d. Is short-term because she received the land from a partnership in which she is a partner.
Explanation:
On September 22, Year 7, Sky Castle distributed the land to Linda, who is also a partner.
6. Kroeger Exporters has total assets of $74,300, net working capital of $22,900, owners' equity of $38,600, and long-term debt of $23,900. What is the value of the current assets
Answer:
Current assets = $34,700.
Explanation:
We know,
Total assets = Current assets + Non current assets ( property, plan and equipment).
Again, total assets = Liabilities + Owners equity
Again,
Liabilities = Current liabilities + Long term liabilities.
Finally, net working capital = Current assets - Current liabilities
Given,
Total assets = $74,300
net working capital = $22,900
owners' equity = $38,600
long-term debt = $23,900
Putting the values into the formulas,
Total assets = Liabilities + Owners equity
or, $74,300 = Liabilities + $38,600
or, Liabilities = $74,300 - $38,600
Liabilities = $35,700.
Again,
Liabilities = Current liabilities + Long term liabilities.
or, $35,700 = Current liabilities + $23,900
or, Current liabilities = $35,700 - $23,900
Current liabilities = $11,800.
Therefore, Net working capital = Current assets - Current liabilities
or, $22,900 = Current assets - $11,800
or, Current assets = $22,900 + $11,800
Current assets = $34,700.
What are the benefits of the corporation in comparison with the partnership and proprietorship structures? How is equity treated and reported differently in this structure?
Corporations offer limited liability, perpetual life, and simpler capital raise compared to partnerships and proprietorships. In corporations, equity is reported as share capital, retained earnings, and additional paid-in capital.
Explanation:In comparison with partnership and proprietorship structures, the corporation offers several benefits. Corporations are characterized by limited liability, which insulates owners from personal liability for business debts. They also have perpetual life and can continue operations regardless of changes in ownership. Furthermore, raising capital is often easier for corporations as they can sell shares of stock.
Compared to proprietorships and partnerships, equity is reported differently in corporations. In a corporation, equity is reported as share capital (stock), retained earnings (profit kept within the company after dividends are paid), and additional paid-in capital (amount paid by investors over and above the par value of shares). This contrasts with proprietorships and partnerships where equity primarily represents the owner(s) capital or investment.
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A collection of data that is so large in scale, different in content, and fast in accumulation that is difficult to store and analyze using traditional methods is called ________
Answer:
Big Data
Explanation:
Big data is referred toas a set of large data that is complex and so large in volume that traditional way cannot be used to analyze and store.
Answer:
Big data.
Explanation:
Big data refers to massive amount of data that can be structured or unstructured and it is difficult to process using traditional methods and software. It exceeds traditional data processing speeds.
Big data is collected from a number of sources such as emails, applications, databases, mobile phones, and servers.
This data when analysed can give a business insights that will make companies improve their operations, increase revenue, get and retain customers, and make faster decisions.
For example big data may contain information of millions of people from various sources such as the internet, sales or contact centres. With sizes made up of petabytes ( 1,024 terabytes). The data is usually loosely structured and may be incomplete.
You write one IBM July 120 call contract for a premium of $4. You hold the option until the expiration date when IBM stock sells for $121 per share. You will realize a ______ on the investment. $300 profit $200 loss $600 loss $200 profit
Answer:
The answer is a 'short call profit'
Explanation:
Short call profit = Min [0, ($120- $121)(100)] + $400
= $300.
Answer: $300 profit
Explanation: When you write (sell) a call option, you receive the premium from the buyer. In this case, you received $4 per share, or $400 total (since one contract represents 100 shares).
At expiration, IBM stock is $121 per share, which is above the strike price of $120. The buyer will exercise the option, and you will have to sell the stock at $120 per share. You can buy the stock at the market price of $121 and sell it at $120, resulting in a loss of $1 per share, or $100 total. However, you received the $400 premium, so your net profit is $400 - $100 = $300.
In 2016, sports newscaster Erin Andrews and former wrestler Hulk Hogan were both awarded substantial monetary damages after winning their respective cases involving invasion of privacy. It is believed that the juries in both cases wanted to sanction the defendants by sending a clear message that individual’s privacy must be respected regardless of who they are. The type of monetary damages awarded in these two cases are described as_______________.
a. Nominal damages
b. Compensatory damages
c. Punitive damages
d. Consequential damages
Answer:
Option C, PUNITIVE DAMAGES.
Explanation:
Punitive damages also called exemplary damages are legal damages assessed by a judge or jury in order to punish the defendant for outrageous conduct and/or to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit.
Punitive damages are often awarded if compensatory damages are deemed an inadequate remedy.
In many countries, punitive damages can only be awarded if the offensive act arose from a tort(an offense against an individual) and not from a breach of contract.
Since the juries in both cases wanted to sanction the defendants by sending a clear message that individual’s privacy must be respected regardless of who they are, therefore, the type of monetary damages awarded in both cases of sports newscaster Erin Andrews and former wrestler Hulk Hogan are described as PUNITIVE DAMAGES.
Answer: C,
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Explanation:
PUNITIVE DAMAGES. Explanation :Punitive damages also called exemplary damages are legal damages assessed by a judge or jury in order to punish the defendant for outrageous conduct and/or to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit. Punitive damages are often awarded if compensatory damages are deemed an inadequate remedy .In many countries, punitive damages can only be awarded if the offensive act arose from a tort(an offense against an individual) and not from a breach of contract .Since the juries in both cases wanted to sanction the defendants by sending a clear message that individual’s privacy must be respected regardless of who they are, therefore, the type of monetary damages awarded in both cases of sports newscaster Erin Andrews and former wrestler Hulk Hogan are described as PUNITIVE DAMAGES.
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $38,000 and then sells this inventory on account on March 17 for $58,000. Record transactions for the purchase and sale of inventory. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
Debit Inventory $38,000
Credit Accounts Payable $38,000
Being entries to record inventory purchased on account.
Debit Cost of goods sold $38,000
Credit Inventory $38,000
Being entries to account for cost of items sold.
Debit Accounts receivable $58,000
Credit Revenue account $58,000
Being entries to recognize the sale of inventories.
Explanation:
When inventory is purchased on account, it means that cash was yet to be paid for the purchase and as such a liability should be recorded.
The entries required for the purchase of inventory would therefore be
Debit Inventory $38,000
Credit Accounts Payable $38,000
Being entries to record inventory purchased on account.
When the items are sold on account, it means cash was not collected at the point of sale. This creates another asset called accounts receivable. Entries required on sale
Debit Cost of goods sold $38,000
Credit Inventory $38,000
Being entries to account for cost of items sold
Then
Debit Accounts receivable $58,000
Credit Revenue account $58,000
Being entries to recognize the sale of inventories.
Listed below are some items found in the financial statements of Jonas Co. Indicate in which financial statement(s) the following items would appear. (a) Service revenue. (b) Equipment. (c) Advertising expense. (d) Accounts receivable. (e) Retained earnings. (f) Salaries and wages payable.
Final answer:
The items would appear in the Balance Sheet (Equipment, Accounts receivable, Retained earnings, and Salaries and wages payable), the Income Statement (Service revenue and Advertising expense), and the Statement of Retained Earnings (Retained earnings).
Explanation:
The financial statement in which the following items would appear for Jonas Co are as follows:
(a) Service revenue: This would appear in the Income Statement, which presents the organization's revenues and expenses during a specific period.(b) Equipment: This item would be listed on the Balance Sheet as part of the company's assets.(c) Advertising expense: This would also appear in the Income Statement, as it is an expense incurred during the period.(d) Accounts receivable: This would be shown on the Balance Sheet under current assets.(e) Retained earnings: This component is found in the Statement of Retained Earnings and is also a part of the equity section of the Balance Sheet.(f) Salaries and wages payable: This liability item would appear on the Balance Sheet as well.It is essential to review the Balance Sheet for a snapshot of the company's assets, liabilities, and net worth at a point in time. The Income Statement provides insight into profitability by detailing revenues and expenses. For the cash transactions, one would look at the Cash Flow Statement.
AlwaysRain Irrigation, Inc., would like to determine capacity requirements for the next
four years. Currently two production lines are in place for making bronze and plastic
sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management
has forecast demand for the next four years as follows:
Yearly Demand
1 (in 000s) 2 (in 000s) 3 (in 000s) 4 (in 000s)
Plastic 90 32 44 55 56
Plastic 180 15 16 17 18
Plastic 360 50 55 64 67
Bronze 90 7 8 9 10
Bronze 180 3 4 5 6
Bronz360 11 12 15 18
Both production lines can produce all the different types of nozzles. The bronze machines
needed for the bronze sprinklers require two operators and can produce up to 12,000
sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires
four operators and can produce up to 200,000 sprinklers. Three bronze machines
and only one injection molding machine are available. What are the capacity requirements
for the next four years? (Assume that there is no learning.)
Answer:
For plastic
Year 1 97,000 units per year and 2 operators
Year 2 115,000 units per year and 3 operators
Year 3 136000 units per year and 3 operators
Year 4 141000 units per year and 3 operators
For bronze
Year 1 21000 units per year, 2 machines and 4 operators in total
Year 2 24000 units per year, 2 machines and 4 operators in total
Year 3 29000 units per year, 3 machines, 5 operators in total
Year 4 34000 units per year, 3 machines, 6 operators in total
Explanation:
for plastic,
since there is only one machine that is operated by 4 operators,
Units per operator= Machine speed/number of operator
= 200,000/4
= 50,000 units per operator
so for year 1, for 97,000 units 2 operators will be enough and for year 2, year 3 and year 4, 3 operators will be enough
for Bronze
since there are 3 machines and total number of 6 operators,
Units per operator= sum of speed of all machines/total number of operator
= 36000/6
= 6,000 units per operator
so for year 1 for 21,000 units per year, 4 operators will be required (6000×4) with 2 machines
for year 2 for 24000 units per year, 4 operators will be requried with 2 machines
for year 3 for 29,000 units per year, 3 machines will be required with 5 operators to meet the demand
for year 4 for 34,000 units, 3 machines will be requried with 6 operators
About for plastic, is more detail below:
Thus, there is only 1 machine that is operated by 4 operators,
Units per operator= Machine speed/number of operator
= 200,000/4
= 50,000 units per operator
Then As for year 1, for 97,000 units 2 operators will be enough and for year 2, year 3, and year 4, 3 Its operators will be also enoughAbout for Bronze more detail
when there are 3 machines and a total number of 6 operators,
As per a Unit per operator= sum of the speed of all machines/total number of operator= 36000/6
= 6,000 units per operator
Then for a year 1 for 21,000 units per year, 4 operators will be required (6000×4) That with the 2 machines Also, for year 2 for 24000 units per year, 4 operators will be required with the 2 machines Thus, for year 3 for 29,000 units per year, 3 machines will be required with 5 and its operators to meet the demand. Although for year 4 for 34,000 units, 3 machines will be required with the 6 operators.Learn more:
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Tony purchased 100 shares of T-Rex stock for $43 a share. On the same day, Sam also purchased 100 shares of T-Rex stock for $43 a share. Tony paid cash for his purchase while Sam used margin. The initial margin requirement on this stock is 60 percent while the maintenance margin is 40 percent. Both Tony and Sam sold their shares after eight months at a price of $40 a share. The stock pays no dividends. Tony had a holding period percentage return of _____ percent as compared to Sam's _____ percent return. Ignore margin interest and trading costs.
Answer:
Explanation:
Tony purchased 100 shares of T-Rex stock for $43 a share. On the same day, Sam also purchased 100 shares of T-Rex stock for $43 a share. Tony paid cash for his purchase while Sam used margin. The initial margin requirement on this stock is 60 percent while the maintenance margin is 40 percent. Both Tony and Sam sold their shares after eight months at a price of $40 a share. The stock pays no dividends. Tony had a holding period percentage return of -6.98 percent as compared to Sam's -11.63 percent return. Ignore margin interest and trading costs.
Tony HPR without margin= [100 - ($40-$43)]/(100 x $43)
= -6.98%
Sam HPR without margin= [100 - ($40-$43)]/(100 x $43 x 60%)
= -11.63%
"When he was unable to find the statistics he needed for his report on market demand, Raphael decided to estimate based on historical and current data and trends reported" by the UN. One problem with this is ______.
Answer: inaccurate data
Explanation: Because he was unable to gather accurate data for his statistics report on market demand .
Answer: The reliability and accuracy of the forecasts might decrease.
Explanation:
Trend analysis is the general practice of the collection of information in order to spot a pattern. Even though it is used to forecast future events, it can also be used for the estimation of unknown events in the past. Because trend analysis is hinged on historical data, the reliability and accuracy of the forecasts deteriorate when there is a change in business environment or when cyclical trends is mistaken for long-term influences. Also, when one does not know the changes that might affect a business, forecasts on trend analysis might not be reliable.
You get a sales report every month to show the products sold from each state. You notice the sales from California are down from last month, so you click on the state to get more detailed information on each sales person. You notice one salesperson sold 10% of what he did the previous year. This is an example of a(n) ________ report.
Answer: This is an example of a DRILL DOWN report
Explanation:
Drill down means to seek out detailed additional information on a specific subject. It involves clicking on a subject, or link or object to reveal more detail about a particular information.
To drill down through a series of information means you want to get a specific information, it involves accessing information but starting first with the general options before proceeding through the database to get successive ideas on the subject matter. Most times people drill down on an information when they have only the summary, then they will "dig Futher" to get suitable information according to their logic.
Which type of business organization experiences the least governmental regulation? Joint venture Private corporation Limited partnership Public corporation Sole proprietorship
Answer:
The answer is sole proprietorship
Explanation:
Sole proprietorship is the type of business that is set up by one man. It is also called one man's business. This one man is responsible for the debt and liabilities of the business. The entity concept which states that a business and its owner are separate, distinct and different does not apply here. He takes all the business decisions. He directs and gives order. Sole proprietorship is the oldest form of business.
Out of all the business formations, this enjoys the least governmental regulations. No disclosure is required, no business tax is imposed. Government gives this business room to operate freely
A sole proprietorship type of business organization experiences the least governmental regulation. The correct option is D.
There isn't just one law that applies to a sole proprietorship. Since it lacks a distinct legal identity, this is the case. Both incorporation and the few procedures that must be completed are not necessary. The smallest number of regulations apply to sole proprietorships. Most government regulations apply to businesses. A corporation's obligation is different from that of a partnership or a solo proprietor. There is no limit to the responsibility for sole proprietorships.
Thus, the ideal selection is option D.
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Problem 13-02A a-c Whispering Winds Corporation had the following stockholders’ equity accounts on January 1, 2020: Common Stock ($4 par) $400,000, Paid-in Capital in Excess of Par—Common Stock $185,000, and Retained Earnings $110,000. In 2020, the company had the following treasury stock transactions. Mar. 1 Purchased 6,500 shares at $8 per share. June 1 Sold 1,500 shares at $13 per share. Sept. 1 Sold 2,000 shares at $11 per share. Dec. 1 Sold 1,500 shares at $6 per share. Whispering Winds Corporation uses the cost method of accounting for treasury stock. In 2020, the company reported net income of $34,000.
Answer:
The journal entries, open accounts and stockholders equity section for the following information are given below.
Explanation:
Date Account Titles and Explanation Debit Credit
Mar. 1 Treasury Stock 52000
Cash 52000
June 1 Cash 19500
Treasury Stock 12000
Paid-in Capital from Treasury Stock 7500
Sept. 1 Cash 22000
Treasury Stock 16000
Paid-in Capital from Treasury Stock 6000
Dec. 1 Cash 9000
Paid-in Capital from Treasury Stock 3000
Treasury Stock 12000
Dec. 31 Income Summary 34000
Retained Earnings 34000
Paid-in Capital from Treasury Stock
Dec. 1 3000 June 1 7500
Sept. 1 6000
Bal. 10500
Treasury Stock
Mar. 1 52000 June 1 12000
Sept. 1 16000
Dec. 1 12000
Bal. 12000
Retained Earnings
Bal. 110000
Dec. 31 34000
Bal. 144000
WHISPERING WINDS CORPORATION
Balance Sheet (Partial)
December 31, 2020
Stockholders' Equity
Paid-in Capital
Capital Stock
Common Stock 400000
Additional Paid-in Capital
Paid-in Capital in Excess of Par-Common Stock 185000
Paid-in Capital from Treasury Stock 10500
Total Additional Paid-in Capital 195500
Total Paid-in Capital 595500
Retained Earnings 144000
Total Paid-in Capital and Retained Earnings 739500
Less
Treasury Stock (12000)
Total Stockholders' Equity $ 727500
To evaluate the worth of a Babble, Inc. share, one would consider the present and future dividends, discounted to their present value. An investor would analyze the potential returns from immediate profits and the anticipated dividends over the next two years.
Explanation:Buying and selling stocks is a fundamental activity in the finance world, directly impacting an investor's net profit and the overall valuation of companies involved. Let's dissolve the case for Babble, Inc. into its financial anatomy. To ascertain what an investor would be willing to pay for a share of the company, we would need to examine the expected dividends paid out over the timespan prior to the company's disbandment. Given the profit projections totaling $60 million over two years and a total share count of 200, it can be calculated by adding the present value of expected dividends. For example, a share's value today might include the present value of $15 million / 200 shares plus the present value of future dividends, discounted back into today's dollars.
Counton Carriage Company offers guided horse-drawn carriage rides through historic Anderson comma South Carolina. The carriage business is highly regulated by the city. Counton Carriage Company has the following operating costs during April: LOADING...(Click the icon to view the information.) During April (a month during peak season), Counton Carriage Company had 12 comma 800 passengers. Sixty percent of passengers were adults ($26 fare) while 40% were children ($18 fare). Requirements 1. Prepare the company's contribution margin income statement for the month of April. Round all figures to the nearest dollar. 2. Assume that passenger volume increases by 10% in May. Which figures on the income statement would you expect to change, and by what percentage would they change? Which figures would remain the same as in April?
Answer: please refer to the explanation section
Explanation:
The question is incomplete the Variable costs were not given in the question. contribution margin income statement requires variable costs to be subtracted from sales to arrive at a contribution margin. We will assume variable costs per unit were $ 10 for each horse drawn carriage rides in order to be able to prepare a contribution Margin income statement properly.
1. Contribution Margin Income Statement
*Sales 291840
**variable costs - 128000
contribution margin 163840
* sales from adults = (12800 x 60%) x $26 = 7680 x 26 = 199680
sales from childrens = (12800 x 40%) x $18 = 92160
total revenue = 199680 + 921840 = $ 291840
* Variable costs = 12800 x $10 = $128000
2. Effects of a 10 rise in volume (number of passengers)
when the number of passengers rise by 10%, Sales, Variable costs and contribution margin will be affected. Contribution margin will be affected because a change in sales or variable costs directly causes a change in the contribution margin.
Sales will increase by 10%
variable costs will increase by 10%
contribution margin will increase by 10%.
Figures that would remain the same in April
Fixed costs will remain the same regardless of the number of passengers in a month
2. Activities included (and not included) in the calculation of GDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. Scenario 2020 GDP Included Excluded Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 13, 2020. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2020. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.) Tasty's, a U.S. fast-food company, produces a hamburger at one of its many St. Louis locations on January 21, 2020. It sells the hamburger to a customer that same day. An accountant starts a client's 2020 tax return on April 14, 2021, finishing it just before midnight on April 15, 2021. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 5, 2020. An elementary school student buys the chocolate bar on December 24. Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 10, 2020. Athleticus imports the pair of sneakers into the United States on May 20, 2020.
Answer:
Blanks:-
1) Market value of
2) final goods and services
3) by resources within the United states
Scenario-
1) Excluded
2) Included
3) Included
4) Excluded
5) Excluded
Explanation:
U.S. GDP includes goods produced and services rendered within its borders during a given time period. Therefore, activities by Treetopplers, Tasty's, and Chocolate Express would increase U.S. GDP since these activities occurred within the U.S. in 2020. However, the accountant's services and Athleticus's sneaker production would not contribute to U.S. GDP.
Explanation:The Gross Domestic Product (GDP) includes all products and services produced within a country's borders during a given period. Therefore, the activities that would increase GDP within the given scenarios are Treetopplers producing wood (because it is produced within the U.S.), Tasty’s making a burger (as it is a service completed within the U.S.), and Chocolate Express producing a chocolate bar (even though it is a foreign company, the product is made within the U.S.). The accountant starting a client's 2020 tax return in 2021 would not be included in 2020's GDP because the service was rendered in 2021. Likewise, Athleticus's production of sneakers in Vietnam wouldn't contribute to the U.S.'s GDP as it was produced outside of the country.
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Describe the reasons Lyft entered strategic alliances with GM and Waymo? Are some reasons more important than others? Why or why not? Explain.
Answer:
PART A
(1) In order to meet its demand for cars
(2) in order to use Waymo's Technological advancement in development self driving cars with GM.
(3) In order to strategically position the company to compete favourably in the car lift market and car sharing.
PART B
NO,all the reasons are equally important.
PART C
They are all needed in order to strategically position the company in terms of availability of cars with the required modern technological trends needed to compete favourably in the market for lift cars and car sharing.
Explanation:GM(General Motors) is an American car manufacturer with a long time experience in auto Manufacturing.
Lyft is a car lift and car sharing service provider, it is an American brand with its head quarters in California,United States of America.
Waymo(way forward in mobile)is an American self driven vehicles Manufacturing Company, it is a member of the Alphabet Inc, who also own Google.
Final answer:
Lyft formed strategic alliances with GM and Waymo to achieve economies of scale, leverage expertise in automotive manufacturing and self-driving technology, and to evolve into a comprehensive mobility service provider aiming at economies of scope.
Explanation:
The reasons Lyft entered strategic alliances with General Motors (GM) and Waymo are multifaceted. One crucial driver is the pursuit of economies of scale in the auto and mobility industries. By partnering with GM, Lyft aimed to leverage the automaker's manufacturing capabilities and deep industry knowledge to accelerate the development and deployment of autonomous vehicles. Meanwhile, the alliance with Waymo, a leader in self-driving technology, was likely targeted at integrating cutting-edge autonomous driving technology into Lyft's ride-sharing network.
Another significant factor for these strategic alliances is the concept of economies of scope. Lyft's primary aim is to evolve from just a ride-hailing service to a comprehensive mobility service provider. This would potentially reduce costs and increase demand as services become more integrated. The partnerships would help Lyft in becoming a 'one-stop-shop' for mobility services, similar to how Uber has expanded its offerings.
While both reasons are vital, the need for technological advancement to stay competitive in an evolving market might be slightly more critical. Technological changes and innovation often necessitate substantial investment and expertise. Aligning with companies like GM and Waymo gives Lyft access to necessary resources and a competitive edge in a market where the ability to quickly adapt to technological advancements is key to sustainability and success.
Reducing (and sometimes eliminating) the size of engineering staffs has become a recent trend among airlines since they are no longer as involved with the design of new aircraft.
A. True
B. False
Answer:
True
Explanation:
From recent trends, it has been shown that airlines are cutting down on their engineering crew because most airlines are no longer involved in the designing of new aircraft as it was in the developmental stages of airplanes, what they do now is improving on existing models thus there is no need for a large engineering staff, what is require is just a few aircraft maintenance and repair staff.
Tracy Company, a manufacturer of air conditioners, sold 270 units to Thomas Company on November 17, 2021. The units have a list price of $400 each, but Thomas was given a 25% trade discount. The terms of the sale were 3/10, n/30. Thomas uses a perpetual inventory system.
1. Prepare the journal entries to record the (a) purchase by Thomas on November 17 and (b) payment on November 26, 2021. Thomas uses the gross method of accounting for purchase discounts.
2. Prepare the journal entry for the payment, assuming instead that it was made on December 15, 2021.
1. Record the purchase of air conditioners.
Answer:
See explanation section
Explanation:
Requirement 1
November 17, 2021 Merchandise Inventory Debit $81,000 (Note - 1)
Accounts payable - Tracy Company Credit $81,000
Calculation - $270 units × $400 = $108,000
$108,000 × (100 - 25)% = $81,000
To record the purchase of office equipment on account with a trade discount and a credit terms of 3/10, n/30. As the company uses perpetual inventory system, merchandise inventory is debit.
November 26, 2021 Accounts payable - Tracy Company Debit $81,000
Cash Credit $78,570
Merchandise Inventory Credit $2,430
As Thomas gave the payment within 10 days, Tracy Company provided a 3% discount according to the terms.
Calculation - $81,000 - ($81,000 × 3)% = $81,000 - 2,430 = $78,570
Requirement 2
If Thomas paid on December 15, 2021, Tracy company would not give any discount. However, Thomas paid within 30 days.
Therefore, the journal entry to record the payment is as follows:
December 15, 2021 Accounts payable - Tracy Company Debit $81,000
Cash Credit $81,000
This time he did not receive the discount as he failed to pay within 10 days to get discount.