Answer: A. 3,100
the total distance (in meters) loads that would be moved each week is 3,100
Explanation:
First we arrange the workflow of the departments in descending order while the distance will be in ascending order.
TRIPS DISTANCE(metres)
1 -11 10
11 - 111 10
1 - 111 20
DEPARTMENTAL PAIR WORKFLOW
Y-Z 150
Z-Y 130
Z-X 100
X-Z 80
Y-X 30
Given that question provided to allocate departments X, Y, and Z in areas 1, 2, and 3 respectively.
So, having that in mind, allocate the distance for each suitable departmental pair;
DEPARTMENTAL PAIR WORKFLOW DISTANCE TOTAL DISTANCE
(meter loads)
Y-Z 150 10 1500
Z-Y 130 -
Z-X 100 10 1000
X-Z 80 -
Y-X 30 20 600
3100
Therefore the total distance (in meters) loads that would be moved each week is 3,100
An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $6,400. If Allowance for Doubtful Accounts has a $1,300 debit balance, the adjustment to record the bad debt expense for the period will require a
Answer:
Debit to Bad Debt Expense for $7,700
Explanation:
Based on the information given we were told that company's accounts receivable shows the estimate of uncollectible accounts totals of the amount of $6,400 while the Allowance for Doubtful Accounts has the amount of $1,300 as the debit balance. This means that the adjustment to record the bad debt expense for the period will require a
Debit to Bad Debt Expense for $7,700 Calculate as:
Dr Bad Debts 7700
(6300+1300)
Cr To Allowance for Doubtful Accounts 7700
On December 1, 2018, ABC signed a $300,000, 5%, six-month note payable with the amount borrowed plus accrued interest due six months later on June 1, 2019. ABC records the appropriate adjusting entry for the note on December 31, 2018. What amount of cash will be needed to pay back the note payable plus any accrued interest on June 1, 2019?
Answer:
$315,000 will be needed to pay back
Explanation:
When the note payable is signed, the entries would be as follows :
Cash $300,000 (debit)
Note Payable $300,000 (credit)
Interest that accrues over the period of the over the note receivable is
Interest expense $15,000 (debit)
Note Payable $15,000 (credit)
Interest expense = $300,000 × 5%
= $15,000
On June 1, 2019 the Note Payable plus Interest that needs to be paid would be :
Note Payable $315,000 (debit)
Cash $315,000 (credit)
The amount of cash should be $315,000 will be needed to payback.
Calculation of the amount of the cash needed:At the time When the note payable is signed, the entries should be
Cash $300,000 (debit)
Note Payable $300,000 (credit)
Interest that accrues over the period of the over the note receivable should be
Interest expense $15,000 (debit)
Note Payable $15,000 (credit)
here,
Interest expense = $300,000 × 5%
= $15,000
On June 1, 2019, the Note Payable plus Interest that needs to be paid should be
Note Payable $315,000 (debit)
Cash $315,000 (credit)
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If a firm raises capital by selling new bonds, it could be called the "issuing firm," and the coupon rate is generally set equal to the required rate on bonds of equal risk.
1. True
2. False
Answer: True
Explanation:
An issuing firm is an organization which registers, and then sells security like bonds and stocks on the primary market.
It should be noted that when a firm raises capital through the sale of new bonds, they can be also referred to a the issuing firm, and the coupon rate is usually set to be equal to the required rate on bonds of equal risk.
Vaughn Manufacturing incurs the following costs to produce 10700 units of a subcomponent: Direct materials $8988 Direct labor 12091 Variable overhead 13482 Fixed overhead 16200 An outside supplier has offered to sell Vaughn the subcomponent for $2.85 a unit. If Vaughn accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be
Answer:
Buying the subcomponent will increase income by $7,666.
Explanation:
Giving the following information:
Units= 10,700
Production costs:
Direct materials $8,988
Direct labor $12,091
Variable overhead $13,482
An outside supplier has offered to sell Vaughn the subcomponent for $2.85 a unit.
Additional income= $3,600
To calculate which one is better, we need to determine the total cost of both options. We will not take into account the fixed costs.
Production:
Total cost= 8,988 + 12,091 + 13,482= $34,561
Buy:
Total cost= 10,700*2.85 - 3,600= $26,895
Buying the subcomponent will increase income by $7,666.
Abburi Company's manufacturing overhead is 55% of its total conversion costs. If direct labor is $45,900 and if direct materials are $27,200, the manufacturing overhead is:
Answer:
Manufacturing Overheads = $56100
Explanation:
The conversion cost defined simply is the cost involved in turning the raw material or direct material into the finished products. Conversion cost is calculated by adding the direct labor cost and the manufacturing overhead cost.
Conversion cost = Direct labor + Manufacturing overheads
As we know that the manufacturing overhead is 55% of conversion cost, then the direct labor cost is 45% of conversion cost.
If 45% of conversion cost is $45900, then the total conversion cost will be,
Conversion cost = 45900 * 100/45 = $102000
Manufacturing Overheads = 102000 - 45900 = $56100
Suppose you have $1,500 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures
Answer:
$ 1,781.53
Explanation:
The future value of the 5-year CD can be determined by using the future value formula stated below:
FV=PV*(1+r)^n
FV is the future value which is expected future amount after 5 years
PV is the initial amount used in purchasing the CD i.e $1500
r is the rate of return on the CD on an annual basis which is 3.5%
n is the number of years the investment would last which is 5 years
FV=$1500*(1+3.5%)^5
FV=$1500*1.187686306
FV=$ 1,781.53
What's the answer to this question?
We want to send all of our high-value customers a special VIP gift. We are defining high-value customers as those who have made at least 1 order with a total value (not including the discount) equal to $10,000 or more. We only want to consider orders made in the year 2016. Who would we send the gift to? (Show customer ID, name, the order, and the total order amount.)
Answer:
Customer ID HANAR
Customer Name Hanari Carnes
Order ID 10981
Total Amount 15810.00
Explanation:
Companies focus on Customer retention policies for high valued customers. The companies do not want to upset their high valued clients and lose a great part of their sales from these customers. In this question all the high valued customers are sent gifts by the company who has shop for $10,000 or more from the company this year. From the given list we have sorted the high valued customers based on this criteria.
After owning a Maplewood Company bond for five years, Michelle exercised an option that allowed her to exchange her bond for 20 shares of the company stock. Michelle owned a
Answer: B. convertible bond.
Explanation:
A Convertible bond is as the name implies, a fixed income asset. However, it also has a hybrid function in that it can be converted into shares or equity in the company that issued the bond.
In the agreement, when this can be done is up to the bondholder but there might be only specific times in which they can convert the bond. As a result of its ability to be convertible to stock, the price of this bond is quite susceptible to interest rate changes as well as the price of the stock that it can be converted into. If for instance interest rates fall or the stock price rises, these are both incentives to convert the bonds to stock.
Michelle was able to exchange her bond for shares so what she owned was a convertible bond.
As the manager of Margarita Mexican Restaurant, you must deal with a variety of business transactions. Provide an explanation for the following transactions:
A. Debit Equipment and credit Cash.
B. Debit Dividends and credit Cash.
C. Debit Wages Payable and credit Cash.
D. Debit Equipment and credit Common Stock.
E. Debit Cash and credit Unearned Revenue.
F. Debit Advertising Expense and credit Cash.
G. Debit Cash and credit Service Revenue.
Answer:
A. Debit Equipment and credit Cash.
You purchase equipment and you pay in cash.B. Debit Dividends and credit Cash.
You paid cash dividends.C. Debit Wages Payable and credit Cash.
You paid wages that you owed to your employees. Generally wages are paid at the end of the week and not all months end on a weekend. So you must record wages payable until you actually pay the wages.D. Debit Equipment and credit Common Stock.
You received equipment in exchange for common stock.E. Debit Cash and credit Unearned Revenue.
You received cash in advance for some food that you will deliver in the future.F. Debit Advertising Expense and credit Cash.
You incurred in advertising costs and you paid them in cash.G. Debit Cash and credit Service Revenue.
You sold meals and your clients paid you in cash.Assume Highline Company has just paid an annual dividend of $ 1.03. Analysts are predicting an 10.5 % per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 5.3 % per year. If Highline's equity cost of capital is 8.7 % per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell?
Answer:
The stock should sell for $40.04 today
Explanation:
The current price per share or the fair price can be calculated using the two stage growth model of DDM or Dividend Discount Model. The DDM values a stock based on the present value of the expected future dividends from the stock. The price today can be calculated as follows,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [Dn * (1+g2) / (r - g2)] / (1+r)^n
Where,
g1 is the initial growth rateg2 is the constant growth rateD1 is the dividend expected for the next period calculated as D0 * (1+g1)r is the required rate of returnP0 = 1.03 * (1+0.105) / (1+0.087) + 1.03 * (1+0.105)^2 / (1+0.087)^2 + .... +
1.03 * (1+0.105)^5 / (1+0.087)^5 +
[(1.03 * (1+0.105)^5 * (1+0.053)) / (0.087 - 0.053)] / (1+0.087)^5
P0 = $40.04
See the attached photo for the calculation of present values (PV) of dividend for year 1 to 5 dividends.
From the attached photo, we have:
Previous year dividend in year 1 = Dividend just paid = $1.03
Total of PV of dividends from year 1 to year 5 = $4.8973404048370
Year 5 dividend = $1.53562911214375
Therefore, we have:
Year 6 dividend = Year 5 dividend * (100% + Constant dividend growth rate) = $1.53562911214375 * (100% + 5.3%) = $1.61701745508737
Price at year 5 = Year 6 dividend / (Cost of capital - Constant dividend growth rate) = $1.61701745508737 / (8.7% - 5.3%) = $47.5593369143344
PV of price at year 5 = Price at year 5 / (100% + Cost of capital)^Number of years = $47.5593369143344 / (100% + 8.7%)^5 = $31.3392118720597
Therefore, we have:
Current stock price = Total of PV of dividends from year 1 to year 5 + PV of price at year 5 = $4.8973404048370 + $31.3392118720597 = $36.24
Therefore, the price the dividend-discount model predicts Highline stock should sell is the Current stock price of $36.24.
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A food truck operator originally produced hamburgers and hotdogs. To serve the tastes of their various customers, the hot dog vendor decides to start producing turkey dogs and ham sandwiches as well. Since the new products were introduced, average costs rose dramatically. The vendor is experiencing
Answer:
Diseconomies of scope
Explanation:
Diseconomies of scope is when average cost increases as a result of joint production of goods and services.
In terms of the global value system, when Kodak shifted manufacturing to China, what position did China then take in the system, relative to the U.S.
Answer: b. Upstream
Explanation:
The Upstream part of a company's value chain is the part closest to the suppliers and the raw materials they supply to the firm while the downstream relates to how the goods are distributed and sold after produced.
As such, the firm's manufacturing plants are closer to its Upstream value chain portion. When Kodak therefore shifted manufacturing to China, it made China more upstream than the United States as China now dealt more with Kodak suppliers and inputs than the US, who were now more downstream as the consumers.
A recent trend has seen cities opt to leave the stadium management business and either allow the team or a third party (e.g., AEG or SMG) to manage the facility in exchange for a fee.
A. True
B. False
Answer: True
Explanation:
recent trend has seen cities opt to leave the stadium management business and either allow the team or a third party (e.g., AEG or SMG) to manage the facility in exchange for a fee.
This is true. Cities don't really go into Stadium management business and focus on other aspects of business or in certain cases, look out for a third party.
Answer:
true
Explanation:
_______ is a political strategy for managers to exercise power unobtrusively. Controlling uncertainty Being irreplaceable Generating resources Building alliances Relying on objective information
Answer:
Controlling uncertainty
Explanation:
You are given three options. You may have the balance in an account that has been collecting 5 percent interest for 20 years, the balance in an account that has been collecting 10 percent interest for 10 years, or the balance in an account that has been collecting 20 percent interest for five years. Each account had the same original balance. Which account now has the lowest balance
Answer:
Third account has the lowest balance that is 2.49P.
Explanation:
First option,
Given interest rate = 5%
Time period = 20 years
Let the initial amount ( present value ) = P
First Account,
Given interest rate (n )= 5%
Time period (n ) = 20 years
Let the initial amount ( present value ) = P
Now find the Future value = PV(1+ r)^n
= P ( 1 + 5%)^20
= 2.65P
Second account:
Given interest rate (n ) = 10%
Time period (n ) = 100 years
Let the initial amount ( present value ) = P
Now find the Future value = PV(1+ r)^n
= P ( 1 + 10%)^10
= 2.59P
Thirs account:
Given interest rate (n ) = 20%
Time period (n ) = 5 years
Let the initial amount ( present value ) = P
Now find the Future value = PV(1+ r)^n
= P ( 1 + 20%)^5
= 2.49P
A financial asset is liquid: Group of answer choices if it can be readily exchanged for another asset or good. if it is held by the public and earning interest. only if it takes the form of cash. if it can be carried easily from one place to another.
Answer:
if it can be readily exchanged for another asset or good
Explanation:
An asset is liquid if it can be easily be exchanged for another asset or good or converted to cash. cash ( currency) is the most liquid asset.
an house for example is less liquid when compared to cash. this is because before it can be converted to cash or exchanged for another asset, it must first be valued, then we have to find a buyer and this process can range from days to years. this makes a house less liquid when compared with a house.
The economic prosperity enjoyed by _____ during the 1980s and 1990s strained the world trading system and created the demand for increased protectionist measures.
Answer: Japan
Explanation:
The economic prosperity enjoyed by Japan during the 1980s and 1990s strained the world trading system and created the demand for increased protectionist measures.
This was due to the fact that the trade that took place between the United States and Japan between these years brought about some deficits in trade for United States while bringing prosperity for Japan and this led to some trade restrictions.
Suppose that purely competitive firms producing cashews discover that P exceeds MC.
a. Is their combined output of cashews too little, too much, or just right to achieve allocative efficiency?
b. In the long run, what will happen to the supply of cashews and the price of cashews?
1. Supply will increase and the price of cashews will increase.
2. Supply will increase and the price of cashews will decrease.
3. Supply will decrease and the price of cashews will decrease.
4. Supply will decrease and the price of cashews will increase.
Answer:
a. Too Little
b. 2. Supply will increase and the price of cashews will decrease.
Explanation:
a. Output is always maximised when Marginal Revenue equals Marginal Cost because at this point it is argued that all resources are being utilised. In a purely competitive market, the Price is equal to the Marginal Revenue. If the price is larger than the Marginal Cost that means that Marginal Revenue is larger than Marginal Cost. The firms are therefore not utilising enough resources to produce as much as they can which should change.
b. In the long run in a purely competitive market, more firms will enter the market as they will see it as a chance to make economic profits. As this happens the Supply will increase due to the larger number of firms and the price will decrease as a result as well.
Find an example of a company's aggregate planning strategy. You can use the strategy from the firm where you currently work or where you have worked in the past; you can conduct an Internet search or use the Hunt Library resources.
Explanation:
An aggregate planning strategy can be defined as the implementation of new strategic action plans used in a company whose objective is to balance supply and demand through the implementation of material resources, sales, promotions, products, etc.
This planning occurs in the short term, and is usually carried out when a company has the capacity to meet a certain market offer, such as consumer demand for an innovative product.
Aggregated planning is a good strategy when the company considers maximizing its profits, so in order to achieve the expected result, market demand must be thoroughly analyzed, the company's operational capacity, risks, budget and other essential variables.
A soft drink factory for example can carry out a promotional campaign in the style buy 1 light 2 to increase its demand, therefore you must be aware that your productive force will be able to meet the demand, in addition to analyzing the strategic results in order to ascertain the effectiveness planning.
On January 1, 2012 Johnson Company issued bonds with a face value of $750,000. The bonds carry an interest rate of 8% payable each January 1.
Required:
a. Prepare the journal entry for the issuance assuming the bonds are issued at 96.
b. Prepare the journal entry for the issuance assuming the bonds are issued at 103.
Answer:
a.
January 1 Cash 720000 Dr
Discount on Bonds Payable 30000 Dr
Bonds Payable 750000 Cr
b.
January 1 Cash 772500 Dr
Bonds Payable 750000 Cr
Premium on Bonds Payable 22500 Cr
Explanation:
a.
When the bonds are issued at 96, this means that they are issued at 96% of the face value of the bond which is 750000 * 0.96 = 720000
So, the cash received from issuing the bonds is 720000. As the face value of the bonds is 750000 which will be recorded as bonds payable, the difference between the cash received and the face value is the discount amount which will be debited.
b.
When the bonds are issued at 103, this means that they are issued at 103% of the face value of the bond which is 750000 * 1.03 = 772500
So, the cash received from issuing the bonds is 772500. As the face value of the bonds is 750000 which will be recorded as bonds payable, the difference between the cash received and the face value is the premium amount which will be credited.
Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.20 Direct labor $ 3.75 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 2.60 Fixed selling expense $ 0.50 Fixed administrative expense $ 0.40 Sales commissions $ 1.50 Variable administrative expense $ 0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to
Answer:
$53,700
Explanation:
Direct manufacturing cost = (Direct material per unit + Direct labor per unit) * Units produced
=($5.20 + $3.75) * 6,000 units
=$8.95 * 6,000
=$53,700
The total amount of direct manufacturing cost incurred is closest to $53,700
Product differentiation is a key component of monopolistic competition. Given the following scenarios, label them accordingly by how products are differentiated.
GrrrArg! Productions attempts to carve out a niche in the crowded zombie film industry by specializing in movies featuring only finger -puppet zombies._______
Jay is a Korean pop star, and as such, he has long, flowing hair. One day, he decides to retire from the singing industry and walks to the local Products right outside his apartment, despite it being more expensive than the Supercuts 10 minutes away.________
Wayne is a beginning photographer. He is in the market to buy a new camera lens and notes that certain lenses take clearer pictures but they become exponentially more expensive to purchase as the sharpness of the image increases. He chooses to start with the lowest grade lens (i.e. the cheapest)._________
The video game industry caters to a wide array of people, with games like Final Fantasy to appeal to the role playing type, Tekken for those who like fighting games, Halo for the first person shooters, and Super Mario for the adventurous.__________
Answer:
1. differentiated by style or type
2. differentiated by Location
3. differentiated by quality
4.differentiated by style or type
Explanation:
For creating a monopoly in a market place first thing the firm should do is to introduce their unique product so the chances of the competition could be less
Here are the cases given, based on this, the type of product differentiation is as follows
a. In the first case, the differentiation in the product is done by style or by type
b. In the second case, the differentiation in the product is done by location as the two locations are given in the question
c. In the third case, the differentiation in the product is done by quality as the discussion is for the cameral lens i.e cheap and expensive one
d. In the fourth case, the differentiation in the product is done by style or by type as the different person has different playing roles
In each part that follows, use the economic data given to find national saving, private saving, public saving, and the national saving rate.
a.
Household saving 200
Business saving 400
Government purchases of goods and services 160
Government transfers and interest payments 110
Tax collections 195
GDP 2500
b.
GDP 6,150
Tax collections 1,425
Government transfers and interest payments 400
Consumption expenditures 4,520
Government budget surplus 100
c.
Consumption expenditures 4,300
Investment 1,000
Government purchases 1,000
Net exports 6
Tax collections 1,575
Government transfers and interest payments 500
Answer:
a. Public saving = Tax collections - Government purchases - Transfers and interest payments
=195 - 160 - 110
= -75
Private saving = Household saving + business saving
= 200 + 400
= 600
National saving = Private saving + public saving
= 600-75
= 525
National saving rate = National saving/GDP
= 525/2500
=0.21
= 21%
b. Private sector disposable income = GDP - Taxes + Transfers
= 6150 - 1425 + 400
= 5125
Private sector savings = Disposable income - consumption
= 5125 - 4520
= 605
Public savings = Govt budget surplus = 100
National savings = Private savings + Govt savings
= 605 + 100
= 705
National savings rate = National savings / GDP
= 705 / 6,150
= 0.1146
=11.46%
c. GDP = Consumption + investment + Government purchase + Net Export
= 4,300 + 1,000 + 1,000 + 6
= 6,306
Govt savings = Taxes - Transfers - Govt purchases
= 1,575 - 500 - 1,000
= 75
Private sector disposable income = GDP - Taxes + Transfers
= 6,306 - 1,575 + 500
= 5,231
Private sector savings = Disposable income - consumption
= 5,231 - 4,300
= 931
National savings = Private savings + Government savings
= 931 + 75
= 1,006
National savings rate = National savings / GDP
= 1,006 / 6,306
=0.1595
= 15.95%
A. Public saving =-75, Private saving, National saving= 525, National saving rate=21% B. Private sector disposable income=5125,C. GDP= 6,306, Govt savings=75
Calculation of Gross domestic productA. Public saving is = Tax collections - Government purchases - Transfers and also interest payments
Then =195 - 160 - 110
= -75
After that Private saving is = Household saving + business saving
= 200 + 400
Thus, = 600
Then National saving is = Private saving + public saving
= 600-75
Therefore, = 525
After that National saving rate = National saving/GDP
= 525/2500
=0.21
Thus, = 21%
B. Private sector disposable income is = GDP - Taxes + Transfers
= 6150 - 1425 + 400
= 5125
After that Private sector savings = Disposable income - consumption
= 5125 - 4520
= 605
Then Public savings = Govt budget surplus = 100
National savings = Private savings + Govt savings
= 605 + 100
= 705
Now, National savings rate = National savings / GDP
= 705 / 6,150
= 0.1146
=11.46%
C. GDP is = Consumption + investment + Government purchase + Net Export
Then = 4,300 + 1,000 + 1,000 + 6
= 6,306
After that Govt savings = Taxes - Transfers - Govt purchases
= 1,575 - 500 - 1,000
= 75
Now, Private sector disposable income = GDP - Taxes + Transfers
= 6,306 - 1,575 + 500
= 5,231
Then Private sector savings = Disposable income - consumption
= 5,231 - 4,300
= 931
Now, National savings = Private savings + Government savings
= 931 + 75
= 1,006
Then National savings rate = National savings / GDP
= 1,006 / 6,306
=0.1595
Therefore, = 15.95%
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2. You are considering entry into a market in which there is currently only one producer (incumbent). If you enter and the incumbent prices low (fights) then you will both lose 10 million. If you enter and the incumbent accommodates than you both will earn 3 Million. If you stay out of the market you will earn nothing and the incumbent will earn 7 million. What is the best strategy for you as the entrant in the market.
Answer: a. You should enter if you expect the incumbent to accommodate
Explanation:
If you expect the incumbent to be accommodating then it is best to enter the market because you will earn 3 million along with the incumbent.
This will be a gain for the both of you that has a chance of success because fighting you will be to the detriment of the incumbent as they will then stand to lose 10 million like you will as well.
The option of the incumbent being accommodating is the best option for the both of you.
Using the following end-of-year information, calculate the number of days' sales in receivables for Year 2. Year 2: Sales are $82,500; average accounts receivable is $11,000. Year 1: Sales are $78,000; average accounts receivable is $10,000. a.48.7 b.46.8 c.7.8 d.7.5
Answer:
Days in Receivables:
Year 2:
= Average Receivables/Sales x 365 days
= $11,000/$82,500 x 365 days
= 48.67
= 49 days
Year 1:
= Average Receivables/Sales x 365 days
= $10,000/$78,000 x 365 days
= 46.79
= 47 days
Explanation:
a) Data:
Sales & Receivables
Year 2: Sales are $82,500; average accounts receivable is $11,000.
Year 1: Sales are $78,000; average accounts receivable is $10,000
b) he days' sales in receivables for company A measures the efficiency of credit collection by showing the number of days it takes company A to receive cash from its credit customers. It is an efficiency ratio that measures management's ability to manage credit policies.
A bridge on a prominent public roadway in the city of Springfield, Ohio, was deteriorating and in need of repair. The city posted notices seeking proposals for an artistic bridge design and reconstruction. Bridges by Madison LLC, owned and managed by Madison Mason and his wife, May Mason, decided to submit a bid for a decorative concrete project that incorporated artistic metalwork. They contacted Pablo Hand, a local sculptor who specialized in large-scale metal designs, to help them design the bridge. The city selected their bridge design and awarded them the contract for a commission of $184,000. Bridges by Madison and Hand then entered into an agreement to work together on the bridge project. Bridges by Madison agreed to install and pay for concrete and structural work, and Hand agreed to install the metalwork at his expense. They agreed that overall profits would be split, with 25 percent to Hand and 75 percent going to Bridges by Madison. Hand designed numerous metal pig sculptures that were incorporated into colorful decorative concrete forms designed by May Mason, while Madison Mason performed the structural engineering. The group worked together successfully until the completion of the project. Suppose Hand had entered into an agreement to rent space in a warehouse that was close to the bridge so that he could work on his sculptures near the location at which they would eventually be installed. He entered into the contract without the knowledge or consent of Bridges by Madison. In this situation, would a court be likely to hold that Bridges by Madison was bound by the contract that Hand entered? Help please here is the multiple choices
Answer:
Bridges by Madison and Hand
Agreement by Hand for a Warehouse:
1. Yes - when they agreed to work together, this implied that they would agree to be liable for each other's contracts.
Explanation:
This is especially as far as this joint project is concerned. Since the purpose of the warehouse was to further and fulfill the project, the agreement entered into by hand for a warehouse affects Bridges by Madison.
In a joint venture, every aspect of the project's lifetime is shared: shared profits, shared losses, shared rewards, shared risks, shared obligations and responsibilities, shared rights and privileges until the end of the project, which also ends the joint venture, unless there is a binding agreement to the contrary. In such a case, Hand would not have been a joint-venturer but a sub-contractor.
Michelle Townsend owns stock in National Computers. Based on information in its annual report, National Computers reported after-tax earnings of $7,436,000 and has issued 2,860,000 shares of common stock. The stock is currently selling for $39 a share.
a. Calculate the earnings per share for National Computers. (Round your final answer to 2 decimal places.) Earnings per share
b. Calculate the price-earnings (PE) ratio for National Computers.
Answer:
Earnings per share=2.6
Price earning ratio= 15
Explanation:
Michelle Townsends owns a stock in National computers
The National computers reported an after-tax earnings of $7,436,000
They issued 2,860,000 common shares
The stock is currently selling at $39 per share
(A) The earnings per share of National computers can be calculated as follows
= After-tax earnings/number of stock
= 7,436,000/2,860,000
= 2.6
(B) The price earning ratio of national computers can be calculated as follows
Price warning ratio= stock price/earnings per share
= 39/2.6
= 15
Hence the earning per share and price earning ratio of national computers are 2.6 and 15 respectively
What is the proper adjusting entry at December 31. the end of the accounting period, if the balance in the prepaid insurance account is dollar 7, 750 before adjustment, and the unexpired amount per analysis of policies is. dollar 3, 250?
A. Debit Insurance Expense, dollar 3, 250; credit Prepaid Insurance. dollar 3, 250.
B. Debit Prepaid Insurance; dollar 4, 500; credit Insurance Expense, dollar 4, 500.
C. Debit Insurance Expense, dollar 4, 500; credit Prepaid Insurance, dollar 4, 500.
D. Debit Insurance Expense, dollar 7, 750; credit Prepaid Insurance, dollar 7, 750.
E. Debit Cash, dollar 7, 750; Credit Prepaid Insurance, dollar 7, 750.
Answer:
C. Debit Insurance Expense, dollar 4, 500; Credit Prepaid Insurance, dollar 4, 500
Explanation:
Date Account Title Debit Credit
Dec 31 Insurance expense $4,500
Prepaid insurance $4,500
($7,750-3,250)
Option C is correct.
On March 31, year 1, Ashley, Inc.'s bondholders exchanged their convertible bonds for common stock. The carrying amount of these bonds on Ashley's books was less than the market value but greater than the par value of the common stock issued.If Ashley used the book value method of accounting for the conversion, which of the following statements is correct for an effect of this conversion?
A. Stockholders' equity is increased.
B. Additional paid-in capital is decreased.
C. Retained earnings is increased.
D. A loss is recognized
Answer:
A. Stockholders' equity is increased.
Explanation:
In this scenario, the correct statement for an effect of this conversion would be that the Sockholders' equity is increased. In such a situation, a sockholders' equity will always increase since debt is being converted into equity. This applies regardless of the method that was used for accounting the conversion of bonds. While retained earnings would not move at all in a conversion of bonds, and a gain or loss on such a debt would only be recognized under the market value approach.