Answer:
Early shoppers have elastic demand because of the quantity demanded. That changes significantly as the result of a price change. Elastic means ‘sensitive’. Which means shoppers are responding to Black Friday deals currently happening so they can buy products they/want/need at the prices they wish to spend.
Answer: I personally would say the shoppers who wait in line for hours have an elastic demand.
Explanation: The reason why they have an elastic demand is because an elastic demand means when an elastic product is defined as one where a change in the price of the product leads to a significant change in the demand for that product. Which the people waiting outside are buying the item due to the change in price.
Bob is a minor and buys a BMW, from ABC BMW when he is 16 years old. His parents do not cosign. He signs a financing arrangement where he will pay the car off over a 5- year period. On Bob's 18th birthday, he finds out that he could have disaffirmed the contract when he was a minor. He wonders whether it is too late to
Answer:
It is too late for him to dis-affirmed the contract.
Explanation:
Contract is the legal binding agreement document between two parties for them to obey any given conditions specified in the document. In the case of Bob, despite the fact that he was a minor, his signature on the BMW contract shows that it is binding between ABC Motors and him.
The motor company might not be aware of his legal age which shows he is a minor before entering the agreement with him. It is expected that, he should honor his contract to the latter.
Levine Inc. is considering an investment that has an expected return of 15% and a standard deviation of 10%. What is the investment's coefficient of variation
Answer: 0.67
Explanation:
From the question, we are informed that Levine Inc. is considering an investment that has an expected return of 15% and a standard deviation of 10%.
The investment's coefficient of variation will be the standard deviation divided by the expected return. This will be:
= 10/15
= 0.67
A disadvantage of the centralized organization is that it: lengthens response times by those closest to the market conditions because they must seek approval for their actions. does not encourage responsibility among lower-level managers and rank-and-file employees. discourages lower-level managers and rank-and-file employees from exercising any initiative. diverts authority away from those closest to, and most knowledgeable about, the situation for actions. results in higher-level managers being unaware of actions taken by empowered personnel under their supervision.
Answer:
results in higher-level managers being unaware of actions taken by empowered personnel under their supervision.
Explanation:
The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 54,000 shares authorized, 15,000 shares issued, and 4,000 shares held as treasury stock. What is the entry when the dividends are declared
Answer:
DR Dividends $6,600
CR Dividends Payable $6,600
Explanation:
Out of 54,000 shares, 15,000 are issued. Of those 15,000, 4,000 are held as Treasury stock.
Dividends will be;
= (15,000 - 4,000) * $0.6
= $6,600
1. Calculate the growth rate between 2010 and 2014 for a company with the following revenue. Year Revenue 2010 735 2011 985 2012 1152 2013 1347 2014 1658 2015 1895
Answer: 230.75 (units/ year)
Explanation:
To compute the growth rate between 2010 and 2014, we use the following formula :
Growth rate = [(Revenue in 2014) -(Revenue in 2010)]÷ [Difference between 2010 and 2014]
From the table, Revenue in 2010 = 735
Revenue in 2014= 1658
Then, Growth rate = (1658 -735)÷ (2014-2010)
= 923÷ 4
= 230.75
Hence, the growth rate between 2010 and 2014 = 230.75 (units/ year)
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations.
June 12, 2021 Provide services to customers on account for $41,000.
September 17, 2021 Receive $25,000 from customers on account.
December 31, 2021 Estimate that 458 of accounts receivable at the end of the year will not be received.
March 4, 2022 Provide services to customers on account for $56,000.
May 20, 2022 Receive $10,000 from customers for services provided in 2021.
July 2, 2022 Write of the remaining amounts owed from services provided in 2021.
October 19, 2022 Receive $ 45,000 from customers for services provided in 2022.
December 31, 2022 Estimate that 45% of accounts receivable at the end of the year will not be received.
Record transactions for each date. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Provide services to customers on account for $35,000.
Answer:
Journal Entries are given below
Explanation:
June 12, 2021
Provide services to customers on account of $41,000.
DEBIT CREDIT
Receivable account $41,000
Services Revenue $41,000
September 17, 2021
Receive $25,000 from customers on account.
DEBIT CREDIT
Cash $25,000
Receivable $25,000
December 31, 2021
Estimate that 45% of accounts receivable at the end of the year will not be received.
DEBIT CREDIT
Bad debt($16,000x45%) $7,200
Allowance for doubtful debt $7,200
March 4, 2022
Provide services to customers on account for $56,000
DEBIT CREDIT
Receivable account $56,000
Services Revenue $56,000
May 20, 2022
Receive $10,000 from customers for services provided in 2021.
DEBIT CREDIT
Cash $10,000
Receivable $10,000
July 2, 2022
Write of the remaining amounts owed from services provided in 2021.
Working: $41,000 - $25,000 - $10,000 = $6,000
DEBIT CREDIT
Allowance for doubtful debt $6,000
Account Receivable $6,000
October 19, 2022
Receive $ 45,000 from customers for services provided in 2022.
DEBIT CREDIT
Cash $45,000
Receivable $45,000
December 31, 2022
Estimate that 45% of accounts receivable at the end of the year will not be received.
DEBIT CREDIT
Bad debt (w) $3,750
Allowance for bad debt $3,750
Working:
($56,000 - $45,000) x45% = $4,950
Balance in Allowance account at 31 dec 2021 = 7,200
Bad debt written off = 6,000
Remaining balance = 1,200
Allowance for doubtful debt at 31 dec 2022 = $4,950 - $1,200
Allowance for doubtful debt at 31 dec 2022 = $3,750
Sarah, the controller of a large beverage supplier, supervises two employees. Her boss, Vladimir, instructs her to increase the company's inventory balance for an amount that is material to the financial statements by crediting several small "miscellaneous" expense accounts. She does not understand why he wants her to make these entries but immediately directs one of her staff to make them because she has been instructed to do so. Which of the following statements best describes Sarah's actions?
Answer:
Sarah failed to evaluate a potential ethical issue
Explanation:
According to the given scenario, Ethical concerns occur as workers face pressure from their employers to inflate profits or expenditures that include manipulating financial statements. Workers should be morally responsible and not participate in any dishonest behavior that modify the financial statements.
So, the correct answer is Sarah failed to evaluate a potential ethical issue .
When group investors become aware of overseas investment opportunities and are willing to diversify their portfolios internationally, __________.
Answer:
they benefit from an expanded opportunity set.
Explanation:
As most of the business organizations focused on grabbing the investment opportunities which leads to diversify their business in terms of expanding the business in various locations, maximize the market share etc
This can be done with the help of opportunity set i.e. to expanded through which the firm could get the benefit of it
Hence, this would be the answer
The manager of a gas station noticed that when prices in the convenience store of the gas station decreased, gas sales increased. This could possibly be because the convenience store products are
Answer:
usually complements to the gas sales
Explanation:
Complementary products are those that their demand increases with the increased demand of other products.
Complementary products are usually used together. For example tea and sugar are consumed together, so an increase in tea consumption should result in an increase in sugar consumption.
In this scenario when the price of the convenience store products falls, their demand will increase. If there is an increase in gas sales too it is logical to conclude that the convenience store goods are complements of gas sales.
The inflation rate over the past year was 1.8 percent. If an investment had a real return of 7.2 percent, what was the nominal return on the investment
Answer:
9.13%
Explanation:
The computation of the nominal return on the investment is shown below:
As we know that
Nominal interest rate = {(1 + real interest rate) × (1 + inflation rate)} - 1
= {(1 + 0.072) × (1 + 0.018)} - 1
= (1.072 × 1.018) - 1
= 9.13%
Hence, the nominal interest rate could be find out by applying the above formula i.e by considering the real interest rate and the inflation rate
"The Master Manufacturing Company has just announced a tender offer for its own common stock. Master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. After the announcement of the offer, the stock closed on the NYSE up 2.50 at $18.75. If a customer had 100 shares and sold at tomorrow's opening price, what is the price that he would receive per share?"
Answer:
$0
Explanation:
As it is mentioned in the question that 64% of shares being tendered so at this condition the client has no confirmation with respect to the amount paid for the shares after deciding the tender
Therefore in the given case, the price received per share would be $0 and the other information i.e mentioned in the question is not relevant. Hence, ignored it
Venus Creations sells window treatments (shades, blinds, and awnings) to both commercial and residential customers. The following information relates to its budgeted operations for the current year.
Commercial Residential
Revenues $300,000 $480,000
Direct materials costs $30,000 $50,000
Direct labor costs 100,000 300,000
Overhead costs 85,000 215,000 150,000 500,000
Operating income (loss) $85,000 $(20,000)
The controller, Peggy Kingman, is concerned about the residential product line. She cannot understand why this line is not more profitable given that the installations of window coverings are less complex for residential customers. In addition, the residential client base resides in close proximity to the company office, so travel costs are not as expensive on a per client visit for residential customers. As a result, she has decided to take a closer look at the overhead costs assigned to the two product lines to determine whether a more accurate product costing model can be developed. Here are the three activity cost pools and related information she developed:
Activity Cost Pools Estimated Overhead Cost Drivers
Scheduling and travel $85,000 Hours of travel
Setup time 90,000 Number of setups
Supervision 60,000 Direct labor cost
Expected Use of Cost Drivers per Product
Commercial Residential
Scheduling and travel 750 500
Setup time 350 250
Required:
1. Compute the activity-based overhead rates for each of the three cost pools.
Overhead Rates
Scheduling and travel
Setup time
Supervision
2. Determine the overhead cost assigned to each product line.
Commercial Residential
Scheduling and travel
Setup time
Supervision
Total cost assigned
3. Compute the operating income for each product line, using the activity-based overhead rates.
Operating income (loss)
Commercial
Residential
Answer and Explanation:
The computation is shown below:
1. For activity-based overhead rates
a b (a ÷b)
Particulars Overhead Total Activities Overhead Rates
Scheduling
and Travel 85000 1250 $68
(700 + 500)
Setup time 90000 600 $150
(350 + 250)
Supervision 60000 400000 $0.15
($100,000 + $300,000)
b. For overhead cost assigned
(In dollars)
Particulars Commercial Residential
Scheduling and Travel 51000 34000
($68 × 750) ($68 × 750)
Setup time 52500 37500
($150 × 350) ($150 × 250)
Supervision 15000 45000
($100,000 × 0.15) ($300,000 × 0.15)
Total Cost Assigned 118500 116500
3. For operating income
Particulars Commercial Residential
(In dollars)
Revenue 300000 480000
Less DM 30000 50000
Less DL 100000 300000
Less Overhead Cost 118500 116500
Operating Income 51500 13500
We simply applied the above format
Answer 1:
For activity-based overhead ratesa b (a ÷b)
Particulars Overhead Total Activities Overhead Rates
Scheduling
and Travel 85000 1250 $68
(700 + 500)
Setup time 90000 600 $150
(350 + 250)
Supervision 60000 400000 $0.15
($100,000 + $300,000)
Answer 2:
For overhead cost assigned(In dollars)
Particulars Commercial Residential
Scheduling and Travel 51000 34000
($68 × 750) ($68 × 750)
Setup time 52500 37500
($150 × 350) ($150 × 250)
Supervision 15000 45000
($100,000 × 0.15) ($300,000 × 0.15)
Total Cost Assigned 118500 116500
Answer 3:
For operating incomeParticulars Commercial Residential
(In dollars)
Revenue 300000 480000Less DM 30000 50000Less DL 100000 300000Less Overhead Cost 118500 116500Operating Income 51500 13500
Learn more about " budgeted operations":
https://brainly.com/question/1155250?referrer=searchResults
You have a portfolio that is invested 16 percent in Stock A, 36 percent in Stock B, and 48 percent in Stock C. The betas of the stocks are .61, 1.16, and 1.45, respectively. What is the beta of the portfolio
Answer:
Beta= 1.2112
Explanation:
Giving the following information:
Stock A:
Proportion= 0.16
Beta= 0.61
Stock B:
Proportion= 0.36
Beta= 1.16
Stock C:
Proportion= 0.48
Beta= 1.45
To calculate the beta of the portfolio, we need to use the following formula:
Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B) + (proportion of investment C*beta C)
Beta= (0.16*0.61) + (0.36*1.16) + (0.48*1.45)
Beta= 1.2112
What are two ways to begin setting up a recurring transaction in quick books online
Answer:
The two ways to begin setting up a recurring transaction in quick books online are:
Create a new transaction or Duplicate an existing oneExplanation:
Option One: To set up the transaction,
Click on settings (It's an icon that looks like a gear)From Lists, click on “Recurring Transactions” Then select “New” Select a transaction type to be created, and press “OK” The next step is to name your template then,Choose a Type of Transaction. The options are "Scheduled", "Unscheduled" and "Reminder".Finally, enter the necessary information and Save the Template.
Option Two:
Create templates more quickly by duplicating existing templates. This is a quicker way of setting up transactions.
Go to SettingsFrom Lists, select "Recurring Transactions".
Click on the appropriate template, then select the Action column drop-down menu and select Duplicate. All settings will be inherited by the duplicate copy except the caption.
Cheers!
The balance sheet of Subsidiary Co. shows assets of $86,400 and liabilities of $15,000. The fair value of the assets is $90,000 and the fair value of its liabilities is $15,000. Parent Co. paid Subsidiary $95,000 to acquire it. Parent should record goodwill on this purchase of:
Answer: $20,000
Explanation:
The following information can be gotten from the question:
Investment in Subsidiary Co. = $95,000
Less: Net asset value = $71,400
Less: Balance sheet adjustment = $3,600
Goodwill = $95,000 - $71,400 - $3,600
= $20,000
Note that:
Net asset value = Asset with book value - Liability with book value
= $86,400 - $15,000
= $71,400
Balance sheet adjusted = Fair value of asset - book value of asset
= $90,000 - $86,400
= $3,600
The founder of alchemy products inc. discovered a way to turn gold into lead and patented this new technology. he then formed a corporation and invested $200,000 in setting up a production plant. he believes that he could sell his patent for $50 million.
a. What are the book value and market value of the firm?
b. If there are 1 million shares of stock in the new corporation, what would be the price per share and the book value per share?
Answer:
Explanation:
a. What are the book value and market value of the firm?
The book value is $200,000 which is the amount invested in setting up the production plant.
The market value of the firm is the addition of the book value and the patent. This will be:
= $50,000,000 + $200,000
= $50,200,000
b. If there are 1 million shares of stock in the new corporation, what would be the price per share and the book value per share?
The book value per share is the book value divided by the outstanding shares. This will be:
= $200,000/1,000,000
= $0.2 pee share
Price per share will be:
= $50,200,000/1,000,000
= $50.2
An institution is a significant practice, relationship, or organization in a society. Institutions shape the environment in which decisions are made, and they affect production and income in a nation. The most significant institutions are private property rights, political stability and the rule of law, open and competitive markets, efficient taxes, and stable money and stable prices. Complete each of the following sentences with the correct institution. a. The single greatest incentive for voluntary production is the existence of . b. increase investment in physical and human capital because they increase the predictability of future payoffs. c. Specialization is more likely to occur in nations with and result in more efficient production because of economies of scale. d. The Xiaogang agreement that led to an agricultural boom in China is an example of the power of
Answer:
a. Private Property Rights
b. Political Stability and Rule of Law
c. Open and Competitive Market
d. Private Property Rights
Explanation:
a. By defining private property Rights and giving people a chance to own resources, Individuals will strive to own more and more of such rights and so will produce as much as they can so as to afford such rights.
b. When a nation is Politically stable and respects the Rule of Law, investment payoffs are easier to predict than in a country where instability can threaten to degrade investments such that the payoffs will be lost. For example, think of all the Western firms that lost money when the Shah of Iran was overthrown by the Ayatollah.
c. Specialization is more likely to occur in nations with Open and Competitive Market. An Open Market means that goods can come in from the outside easily. This will have the effect of the country being able to import goods that cost a lot to produce locally and instead focus on producing those goods that they are well adept at producing. This is Specialization. Also as a result of competition, companies will strive to find better ways to make profit above competitors and come up with more efficient ways of Production as a result.
d. The Xiaogang Agreement refers to an agreement by farmers in Xiaogang to subdivide their lands in secret so that they would each own a small part of it. As a result, the farmers had an incentive to produce for themselves as they now owned resources that they could benefit from. This right to Private Property led to a huge boom in Agriculture.
Calculate the cost of goods manufactured using the following information: Direct materials used $ 298,700 Direct labor used 132,200 Factory overhead costs 264,200 General and administrative expenses 85,700 Selling expenses 49,000 Work in Process inventory, January 1 118,700 Work in Process inventory, December 31 126,100 Finished goods inventory, January 1 232,300 Finished goods inventory, December 31 238,900
Answer:$687,700
Explanation:
$
Direct Materials 298,700
Add: Direct Labour 132,200
--------------
Prime Cost 430,900
Factory Overhead 264,200
Add: Opening WIP 118,700
Less: Closing WIP 126,100
--------------
256,800
--------------
Cost of Good Manufacture 687,700
----------------
If you deposit $1000 in a bank account that pays 12% interest compounded annually, how much would be in your account after 6 years?
Answer:
The amount in the account after 6 years is $ 1,973.82
Explanation:
The future value at year 6 can be computed using the future value formula below:
FV=PV*(1+r)^n
PV is the amount deposited which is $1000
r is the interest rate of 12%
n is the number of years which is 6
FV=$1000*(1+12%)^6
FV=$1000*1.973822685
FV=$ 1,973.82
Levine Company uses the perpetual Inventory system.
Apr. 8 Sold merchandise for $5,700 (that had cost $4,212) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
12 Sold merchandise for $5,600 (that had cost $3,629) and accepted the customer's Continental Card. Continental charges a 2.5% fee.
Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.)
Answer:
Journal entries are given below
Explanation:
April 8
Sales
DEBIT CREDIT
Cash $5,472
Credit Expense (5700x4%) $228
Sales Revenue $5,700
Cost of Sales
DEBIT CREDIT
Cost of goods sold $4,212
Inventory $4,212
April 12
Sales
DEBIT CREDIT
Cash $5,460
Credit card expense (5600x2.5%) $140
Sales Revenue $5,600
Cost of sales
DEBIT CREDIT
Cost of goods sold $3,629
Inventory $3,629
Mary just bought a 20-year bond with an 8% coupon rate (paid semi-annually) and $1000 par value for $1050. She is expecting an effective annual yield (EAY) of
Answer:
7.65%
Explanation:
Calculation for Mary effective annual yield (EAY)
The first step is to find the Semiannual coupon payment using this formula
Semiannual coupon payment=(Par value×Coupon rate percentage/2)
Let plug in the formula
Semiannual coupon payment =($1,000 × 8%) ÷2
Semiannual coupon payment= $80 ÷ 2 = $40
Second step is to find The total number of compounding period will be 20 years bond × The number of the compounding period er year which is 2
Hence,
The total number of compounding period will= 2 periods per year × 20 years = 40 periods.
Third step is to use the financial calculator which calculated the rate as 3.76% which means that:
Semiannual yield will be :3.76%
Therefore the Annual yield will be calculatedas = 3.76% ×2
Annual yield= 7.51%
The last step is to find the effective annual yield (EAY) using this formula
EAY = [1+(Quoted interest rate / m]m -1
Let plug in the formula
EAY = [1+(0.0751÷2)]2 -1
EAY= 7.65%.
Therefore the effective annual yield (EAY) will be 7.65%
The interrelationships with suppliers, customers, distributors and other businesses that are needed to design, build and sell a product make up the network of business entities, relationships and processes that is called a(n)
Answer:
Supply chain.
Explanation:
The interrelationships with suppliers, customers, distributors and other businesses that are needed to design, build and sell a product make up the network of business entities, relationships and processes that is called a supply chain.
Supply chain encompasses all the logistics and distribution cycles of getting the finished goods and services to the final consumers.
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product Z1 Product Z8 Total Labor-related DLHs $ 145,000 4,000 2,000 6,000 Machine setups setups 68,360 1,100 300 1,400 Order size MHs 1,069,190 2,700 3,100 5,800 $ 1,282,550 The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
Answer:
$184.34
Explanation:
The computation of activity rate for the Order Size activity cost pool is shown below:-
The Activity rate for Order size = Estimated order size overhead cost ÷ Total machine hours
= 1,069,190 ÷ 5,800
= $184.34
Therefore for computing the activity rate for the Order Size activity cost pool we simply applied the above formula and ignore all other value.
Alpaca Corporation had revenues of $260,000 in its first year of operations. The company has not collected on $19,300 of its sales and still owes $26,300 on $90,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $13,000 in salaries. Owners invested $10,000 in the business and $10,000 was borrowed on a five-year note. The company paid $4,900 in interest that was the amount owed for the year, and paid $6,000 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. Compute net income for the first year for Alpaca Corporation.
Answer:
$89,460
Explanation:
The computation of the net income is shown below:
Sales $260,000
Less: Cost of goods sold -$90,000
Gross margin $170,000
Less:
Salaries -$13,000
Insurance payment -$3,000 ($6,000 ÷ 2 years)
Interest -$4,900
profit before tax $149,100
Less: tax expense -$59,640
Net income $89,460
We simply deducted all expenses from the revenues so that the net income could arrive and the same is to be considered
You recently began a job as an accounting intern at Raymond Adventures.
Your first task was to help prepare the cash budget for February and March.
Unfortunately the computer with the budget file crashed and you did not have a backup or even a hard copy.
You ran a program to salvage bits of data from the budget file.
After entering the following data in the budget, you may have just enough information to reconstruct the budget.
Raymond Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street Bank where the current interest rate is 7 %.
Raymond Adventures pays interest on its outstanding debt at the end of each month.
The company also repays all borrowed amounts at the end of the month as cash becomes available.
Raymond Adventures
Combined Cash Budget
February and March
February March
Beginning cash balance 16,500 ??
Plus: Cash collections ?? 80,200
Plus: Cash from sale of plant assets 0 2,100
Total cash available 107,100 ??
Less: Cash payments
(purchase inventory) ?? 41,500
Less: Cash payments
(operating expenses) 47,900 ??
Total cash payments 98,700 ??
(1) Ending cash balance before
financing ?? 22,900
Minimum cash balance desired 20,000 20,000
Cash excess (deficiency) ?? ??
Financing:
Plus: New borrowings ?? ??
Less: Debt repayments ?? ??
Less: Interest payments ?? ??
(2) Total effects of financing ?? ??
Ending cash balance (1) + (2) ?? ??
Answer:
Beginning cash balance for March= $20,000
Cash collections for February =$90,600
Total cash available for March =$102,300
Cash payments (purchase inventory) for February =$50,800
Cash payments (operating expenses) for March =$37,900
Total cash payments for March =$79,400
Ending cash balance before
financing for February =$8,400
Cash excess (deficiency) for February and March =$- 11,600 $2,900
New borrowings for February and March
=$11,600 $0
Debt repayments for February and March
=$0 -$2,900
Interest payments for February and March
=$0 $0
Ending cash balance for February and March (1) + (2) =$20,000 $20,000
Explanation
Preparation of Raymond Adventures
Combined Cash Budget for February and March
Raymond Adventures Combined Cash Budget for February and March
Beginning cash balance 16,500 20,000
Plus: Cash collections 90,600 80,200
Plus: Cash from sale of plant assets 0 2,100
Total cash available 107,100 102,300
Less: Cash payments
(purchase inventory) 50,800 41,500
Less: Cash payments
(operating expenses) 47,900 37,900
Total cash payments 98,700 79,400
(1) Ending cash balance before
financing 8,400 22,900
Minimum cash balance desired 20,000 20,000
Cash excess (deficiency) -11,600 2,900
Financing:
Plus: New borrowings 11,600 0
Less: Debt repayments 0 -2,900
Less: Interest payments 0 0
(2) Total effects of financing 11,600 -2,900
Ending cash balance (1) + (2) 20,000 20,000
Beginning cash balance for March
Minimum cash balance desired March 20,000
Calculation for Cash collections for February
Total cash available 107,100-Beginning cash balance 16,500=90,600
Calculation for Total cash available for March
Beginning cash balance 20,000
Plus: Cash collections 80,200
Plus: Cash from sale of plant assets 2,100
=102,300
Calculation for Cash payments (purchase inventory) for February
Total cash payments 98,700 -Cash payments
(operating expenses) 47,900
=50,800
Calculation for Cash payments (operating expenses) for March
Total cash payments for March 79,400-Cash payments(purchase inventory) for March 41,500
=37,900
Calculation for Total cash payments for March
Total cash available for March 102,300-Ending cash balance before
financing for March 22,900
=79,400
Calculation for the Ending cash balance before
financing for February
Total cash available 107,100-Total cash payments 98,700
=8,400
Calculation for Cash excess (deficiency) for February and March
Ending cash balance before
financing 8,400 22,900
Less Minimum cash balance desired 20,000 20,000
=- 11,600 2,900
New borrowings for February and March
11,600 0
Debt repayments for February and March
0 -2,900
Interest payments for February and March
0 0
Calculation for Ending cash balance for February and March (1) + (2)
(1) Ending cash balance before
financing 8,400 22,900
Add (2) Total effects of financing 11,600 -2,900
=20,000 20,000
When you send off the proposal three days later, you inadvertently learn from the client that he never received any correspondence from your coworker. "What dimension of professional behavior did your coworker violate when with the prospective client?
The question is incomplete:
You work for AdSmart, a marketing research firm. You and a new coworker are meeting a potential client for lunch. You have several morning meetings on the same day as the lunch meeting, so you arrange to meet your coworker and the potential client at 12:15 p.m. at the restaurant. You arrive five minutes early, and the prospective client arrives shortly thereafter. You both wait in the lobby until 12:35 p.m. when you decide to be seated. You check your smart phone and see no received communications from your colleague. Finally, at 12:45 p.m., your coworker arrives.
During the lunch, your coworker tells several white lies and reveals information regarding your boss that should have been kept confidential. The prospective client doesn't seem to notice these indiscretions, however, when your coworker begins to badmouth his former employer, a competitor of AdSmart, the client appears ill at ease.
Despite the rough start to the lunch meeting, all ends well. You believe that with the appropiate follow-up, the potential client will become one of the firm's more lucrative partnerships. Once you are back at the office, you debrief with your coworker and discuss the next steps. You decide to take on the task of putting together the proposal the client has requested, and your colleague agrees to send a follow-up note thanking the client and indicating that the proposal will arrive within the next week.
When you send off the proposal three days later, you inadvertently learn from the client that he never received any correspondence from your coworker. "What dimension of professional behavior did your coworker violate when with the prospective client?
Answer:
Courtesy and respect
Explanation:
The dimension of professional behavior that your coworker violated with the prospective client is courtesy and respect. He violated courtesy because it is about being polite and he was not polite because he arrived late to the meeting and he didn't let you know about it.
Also, he violated responsibility because it is about doing the things that you are in charge of and he was in charge of sending a follow-up note and he didn't do it.
If the actual budget deficit is $180 billion, the economy is operating $400 billion above its potential, and the marginal tax rate is 13 percent, what are the structural deficit or surplus and the cyclical deficit or surplus
Answer:
Structural Deficit $232 billion
Cyclical Deficit $52 billion
Explanation:
Calculation for the Structual deficit and the cyclical deficit
STRUCTURAL DEFICIT
Using this formula
Structural Deficit =Actual budget +(Economy Operating amount×Marginal tax rate)
Let plug in the formula
Structural Deficit =$180 billion +($400 billion ×0.13)
Structural Deficit =$180 billion +$52 billion
Structural Deficit =$232 billion
CYCLICAL DEFICT
Using this formula
Cyclical Deficit = Economy Operating amount *Marginal tax rate
Let plug in the formula
Cyclical Deficit=$400 billion ×0.13
Cyclical Deficit=$52 billion
Therefore Structural Deficit is $232 billion while Cyclical Deficit is $52 billion.
Madrid Company plans to issue 8% bonds on January 1, 2017, with a par value of $4,000,000. The company sells $3,600,000 of the bonds at par on January 1, 2017. The remaining $400,000 sells at par on July 1, 2017. The bonds pay interest semiannually as of June 30 and December 31.
1. Record the entry for the first interest payment on June 30, 2017.
2. Record the entry for the July 1 cash sale of bonds.
Answer and Explanation:
The journal entries are shown below:
1. Bond interest expense Dr ($3,600,000 × 8% ÷ 2) $144,000
To Cash $144,000
(Being the first interest payment is recorded)
For recording this , we debited the bond interest expense as it increased the expense and credited the cash as it decreased the assets
2. Cash Dr $400,000
To Bond payable $400,000
(being the cash sale of the bond is recorded)
For recording this we debited the cash as it increased the assets and credited the bond payable as it also increased the liabilities
A company is considering two options for the production of a part needed downstream
in the manufacturing process. Particulars are as follows:
Specialized automation: Fixed Costs = $9,000 / month Variable Cost / Unit = $2
General automation: Fixed Costs = $3,000 / month Variable Cost / Unit = $5
1. What is the monthly break-even quantity for choosing between the two automation approaches?
a. 1,000 units
b. 2,000 units
c. 6,000 units
d. 12,000 units
2. For a monthly volume of 3,000 units, which automation approach should be chosen?
a. Specialized automation
b. General automation
c. Either approach is acceptable, because costs are the same for either option at 3,000 units.
d. Can’t be determined with information given.
Answer:
1= B
2= A
Explanation:
Giving the following information:
Specialized automation:
Fixed Costs = $9,000 / month
Variable Cost / Unit = $2
General automation:
Fixed Costs = $3,000 / month
Variable Cost / Unit = $5
First, we need to structure the costs formula:
Specialized automation:
Total cost= 9,000 + 2x
x= production
General automation:
Total cost= 3,000 + 5x
x= production
To calculate the indifference point, we need to equal both formulas:
9,000 + 2x = 3,000 + 5x
6,000=3x
2,000= x
The indifference point is 2,000 units.
Finally, we need to calculate which process is more convenient for 3,000 units:
Specialized automation:
Total cost= 9,000 + 2*3,000= $15,000
General automation:
Total cost= 3,000 + 5*3,000= $18,000
A consumer values a car at $30,000 and a producer values the same car at $20,000. What amount of tax will result in unconsummated transaction
The question is incomplete:
A consumer values a car at $30,000 and a producer values the same car at $20,000. If the transaction is completed at $24,000, what level of sales tax will result in unconsummated transaction?
a. 0%
b. 25%
c. 20%
d. 40%
Answer:
d. 40%
Explanation:
The unconsummated transaction would occur when the price that the customer has to pay is higher than the value that he gave to the car. According to that, the answer would be the tax that would increase the final price to more than $30,000:
0%: $24,000
25%: 24,000*1.25= $30,000
20%: 24,000*1.20= $28,800
40%: 24,000*1.40= $33,600
The answer is that the amount of tax will result in an unconsummated transaction is 40%.