Answer:
The answer is "In the classical view, there are ample loanable funds available at the current interest rate. When G increases, no crowding out occurs, interest rates do not rise, and aggregate expenditures rise by the full amount of G."
Explanation:
In the classical view, the capital market will find the balance between the demanded investment quality and the supplied savings one itself. However, in the Keynesian view, for example during a recession, government spending (G) will increase and there will be a competition to acquire available capital supply, that leads to the crowding out occurs and the general interest rate increases.
Which of these would most likely be funded through a Community Facilities District?
Answer:
what ones there's only the question not the answers
A HEADLINE article in the textbook is titled "Hurricane Damage to Gulf Ports Delays Deliveries, Raises Costs." Increased costs are likely to cause:
Answer: Equilibrium price level increases, real equilibrium output decreases
Explanation:
An equilibrium price increase would cause an upward shift in supply and demand curve affecting price and quantity of the product.
When there's a drop in supply and demand there would be a drop in real equilibrium output. Increase in cost as regards the headlines are likely to cause an Equilibrium price level increases and a drop in real equilibrium output.
Kingsbury Manufacturing has net sales revenue of $850,000, cost of goods sold of $344,600, and all other expenses of $328,300. The gross profit percentage is closest to:
Answer:
56.46%
Explanation:
The computation of the gross profit percentage is shown below
Gross profit percentage is
= (Sales - cost of goods sold) ÷ (Sales) × 100
where,
Sales is $850,000
And, the cost of goods sold is $344,600
Now placing these values to the above formula
So, the gross profit percentage is
= ($850,000 - $344,600) ÷ ($850,000) × 100
= $505,400 ÷ $850,000 × 100
= 56.46%
Think about the dwelling type that your target consumers are most likely to live in. As you make your selection, keep the following descriptions in mind:
The average American house is 2600 square feet, with 85% having washer and dryer hookups.
The average American apartment is 940 square feet, with 67% having washer and dryer hookups.
The average American condominium is 1750 square feet, with 91% having washer and dryer hookups.
Select an option from the choices below.
a. Condominium
b. House
c. Apartment
Answer:
Apartment
Explanation:
From the different market segmentations here, we have chosen apartment as the dwelling type where our target consumers reside mostly since they have the lowest washer and dryer hookups. This is because their low percentage here shows us that this group are in more need of our products than any of the other groups who already have them in higher percentages and therefore do not require our washers and dryer hookups as much as the apartment group
On August 1, Blossom Company buys 1,000 shares of BCN common stock for $44,100 cash. On December 1, the stock investments are sold for $45,700 in cash. Journalize the purchase and sale of the common stock
Answer and Explanation:
The Journal entry is shown below:-
1. Stock Investments Dr, $44,100
To Cash $44,100
(Being purchase of stock investment is recorded)
Here we debited the stock investment as the purchase is done and we credited the cash as it decreased the asset
2. Cash Dr, $45,700
To Stock Investments $44,100
To Gain on sale of stock Investments $1,600
(Being sale of stock investment is recorded)
Here we debited the cash as it increased the asset and we credited the stock investment and gain on sale of stock investment as there is a sale of common stock
Smith buys and sells equity securities. On December 15, 2021, Smith purchased $522,000 of Jones shares and elected the fair value option to account for the Jones investment. As of December 31, 2021, the Jones shares had a fair value of $578,000. In the 2021 financial statements, Smith will report (ignore taxes):
Answer:
Smith will report an investment income of $56,000 in its income statement.
Explanation:
Based on the information given we were told that Smith made a purchased of the amount of $522,000 of Jones shares in which as of December 31, 2021, the Jones shares also had a fair value of the amount of $578,000 this means that Smith will report an investment income of $56,000 ($578,000-$522,000) in its income statement.
An estate provides a perpetuity with payments of X at the end of each year. Seth, Susan, and Lori share the perpetuity such that Seth receives the payments of X for the first n years and Susan receives the payments of X for the next m years, after which Lori receives all the remaining payments of X. Which of the following represents the difference between the present value of Seth's and Susan's payments using a constant rate of interest?
a. X[an-vnam]
b. X[¨an-vn¨am]
c. X[an-vn+1am]
d. X[an-vn-1am]
e. X[van-vn+1am]
Answer: a. [tex]X[a_{n} -v^{n} a_{m} ][/tex]
Explanation:
The Present Value of the perpetuity for Seth is denoted by;
= [tex]X * a_{n}[/tex] because Seth receives it for n years.
The Present Value of the perpetuity for Susan is denoted by;
= [tex]Xv^{n} * a_{m}[/tex] because it is the value after n periods multiplied by the payments received for m periods.
The result is;
= [tex]X * a_{n}[/tex] - [tex]Xv^{n} * a_{m}[/tex]
= [tex]X[a_{n} -v^{n} a_{m} ][/tex]
While examining cash receipts information, the accounting department determined the following information: opening cash balance $180, cash on hand $1,350.89, and cash sales per register tape $1,186.34. Prepare the required journal entry based upon the cash count sheet.
Answer:
Cash $1,170.89
Cash Over/Short $15.45
To Sales Revenue $1,186.34
(Beingthe cash is recorded)
Explanation:
Before passing the journal entry first we have to determine the ending cash balance which is shown below:
Ending Cash Balance is
= Opening Cash Balance + Sales
= $180 + $1,186.34
= $1,366.34
Short cash is
= Ending cash balance - cash on hand
= $1,366.34 - $1,350.89
= $15.45
And, the actual cash is
= Cash on hand - opening cash balance
= $1,350.89 - $180
= $1,170.89
Now the journal entry is
Cash $1,170.89
Cash Over/Short $15.45
To Sales Revenue $1,186.34
(Being the cash is recorded)
Matthew owns 30 percent of the outstanding stock of Lindman and has the ability to significantly influence the investee's operations and decision making. On January 1, 2015, the balance in the Investment in Lindman account is $335,000. Amortization associated with this acquisition is 9,000 per year. In 2015, Lindman earns an income of $90,000 and declares cash dividends of $30,000. Previously, in 2014, Lindman had sold inventory costing $24,000 to Matthew for $40,000. Matthew consumed all but 25 percent of this merchandise during 2014 and used the rest during 2015. Lindman sold additional inventory costing $28,000 to Matthew for $50,000 in 2015. Matthew did not consume 40 percent of these 2015 purchases from Lindman until 2016.
Required:
a. What amount of equity method income would Matthew recognize in 2015 from its ownership interest in Lindman?
b. What is the equity method balance in the Investment in Lindman account at the end of 2015?
Answer:
Matthew and Lindman
a. Equity method Income for 2015:
Add 30% share of Lindman Income ($90,000 x 30%) = $27,000
Less share in unrealized profit in Inventory -2,640
Less share in cash dividends ($30,000 x 30%) -9,000
Less Amortization of cost of acquisition -9,000
Net Income from Investment in Lindman $6,360
b. Equity method balance in the Investment in Lindman account at the end of 2015:
Balance in Investment in Lindman account = $341,360
Explanation:
a) Data and Calculations:
Matthew owns 30% percent in Lindman with significant influence
Accounting of ownership interest: Equity Method
1/1/2015 Balance in the Investment in Lindman account = $335,000
Add 30% share of Lindman Income ($90,000 x 30%) = 27,000
Less share in unrealized profit in Inventory -2,640
Less share in cash dividends ($30,000 x 30%) -9,000
Less Amortization of cost of acquisition -9,000
Balance in Investment $341,360
b) Unrealized profit in Inventory:
Profit in Inventory = $22,000 ($50,000 - 28,000)
Less Realized profit 13,200 ($22,000 x 60%)
Unrealized profit 8,800 ($22,000 x 40%)
Share of Unrealized profit $2,640 ($8,800 x 30%)
c) Matthew uses the equity method for accounting for its 30% acquisition of the outstanding stock of Lindman because it is within the 20% to 50% band for accounting for investment in a subsidiary with the method. Secondly, Matthew has significant influence in Lindman's operations and decision making, making it additionally qualified for the equity method.
With this method, Matthew takes into account its 30% share in the Net Income of Lindman and adjusts this with its share of any unrealized profit (loss) in inventory arising from intercompany transactions. Since Lindman has declared a cash dividend of $30,000, Matthew's share from the dividend is subtracted from the share in net income of Lindman. The amortization cost associated with the acquisition of 30% share in Lindman is also subtracted to arrive at the net income due to Matthew, which increases its equity balance.
JK Corporation issued a $700,000 of 3%, 10-year bonds on January 1, 20X2. Interest payable simiannually on June 30 and December 31. The bonds were issued for $642,730 to yeild an effective rate of 4%. What is the amount of discount should
Answer:
JK Corporation
Amount of Discount should be:
$57,270
Explanation:
a) Calculation:
Face Value = $700,000
Issue value = $642,730
Discount = $57,270
b) JK Corporation's bond is issued at a discount when the face value of this bond is more than the issue value. JK Corporation's bond can only be issued at a discount if the effective or market interest rate is more than the face or stated interest rate. It is the higher market interest rate of the JK Corporation's bond that attracts investors to neglect the low stated interest rate.
Yarim corporation produces and sells 6500 units per month of a single product for a price of $170 per unit variable costs are $24 per unit and monthly fixed costs are $120 per unit.
Per Unit Percent of Sales
Selling price $180 100%
Variable expenses 54 30%
Contribution margin $126 70%
The company is currently selling 5,500 units per month. Fixed expenses are $383,300 per month. The marketing manager believes that a $6,500 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
A. Decrease of $6,500.
B. Increase of $4,700.
C. Increase of $11,200.
D. Decrease of $4,700.
Answer:
Effect on income= $11,140 increase
Explanation:
Giving the following information:
Contribution margin $126
The marketing manager believes that a $6,500 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales.
To calculate the effect on income, we need to use the following formula:
Effect on income= total contribution margin increase - fixed costs increase
Effect on income= 140*126 - 6,500
Effect on income= $11,140 increase
Accounts payable are: Multiple Choice Amounts received in advance from customers for future services. Always payable within 30 days. Estimated liabilities. Amounts owed to suppliers for products and/or services purchased on credit. Not usually due on specific dates.
Answer:
Amounts owed to suppliers for products and/or services purchased on credit
Explanation:
Amounts owed to suppliers for products and/or services purchased on credit
Accounts Payable are due to a particular creditor when it order goods or services without paying immediately which means that you bought goods on credit.
If during the process of negotiating a transaction a real estate licensee discourages a buyer from seeking legal advice on the grounds that the licensee will look into the problem, that licensee is acting:________.
Answer: illegally
Explanation:
One of the requirements in real estate agency regulations is that every listing agreement should have an expiration date.
If during the process of negotiating a transaction a real estate licensee discourages a buyer from seeking legal advice on the grounds that the licensee will look into the problem, that licensee is acting illegally. The licensee has no right to discourage the buyer from seeking legal advice.
For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce.
Price Quantity Total Revenue Fixed Cost Variable Cost Profit
(Dollars per polo) (Polos) (Dollars) (Dollars) (Dollars) (Dollars)
25.00 520,000
40.00 520,000
65.00 520,000
If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $520,000 per day. In other words, if it shuts down, the firm would suffer losses of $520,000 per day until its fixed costs end (such as the expiration of a building lease).
This firm's __________ that is, the price below which it is optimal for the firm to shut down is:________
Answer:
This firm's Shut down price, That is, the price below which it is optimal for the firm to shut down is $40.
Explanation:
Shut down point is the point at which a firm or business is not able to gain any profit or benefit from the operations. Firm try to stay in the market until they reach the shut down point in business. It is a point where a business revenue just covers the variable expenses.
if the broker dies or loses her license, the state's real estate licensing agency may choose to appoint a ________ to close any transactions that are pending.
Answer:
temporary broker
Explanation:
A temporary broker is someone who is charged with responsibility of closing, or winding up the existing or pending business of a permanent or original licensed broker, in the event that, the original licensed broker dies or loses her license.
To become a temporary broker, the state's real estate licensing agency will issue a temporary license as a broker to a licensed or unlicensed person for a period of not more than ninety days and will not be extended, except on a special cases such as personal representative.
Hence, if the broker dies or loses her license, the state's real estate licensing agency may choose to appoint a TEMPORARY BROKER to close any transactions that are pending.
Sunland Company estimates that variable costs will be 60.00% of sales, and fixed costs will total $632,000. The selling price of the product is $5. Compute the break-even point in (1) units and (2) dollars.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Sunland Company estimates that variable costs will be 60.00% of sales.
Fixed costs= $632,000
The selling price of the product is $5.
First, we need to calculate the unitary variable cost:
Unitary variable cost= 5*0.6= $3
Now, using the following formulas, we can determine the break-even point in units and dollars.
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 632,000 / (5 - 3)
Break-even point in units= 316,000 units
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 632,000 / (2/5)
Break-even point (dollars)= $1,580,000
Required Information
[The following information applies to the questions displayed below]
Park co is considering an investment that requires immediate payment of $26120 and provides expected cash inflows of 8600 annually for four years. Assume park co. requires a 10% return on investments.
What is the net present value of this investment? (PV Of $1. FV of $1, P A of $1, and FVA of $1. Round your present value factor to 4 declmals.)
Answer:
$1140.28
Explanation:
The computation of the net present value of this investment is shown below:-
= Annual Cash flows × Present Value of Annuity Factor (r , n) - Initial Investment
as
Annual cash flows = $8600
Present Value of Annuity Factor (r , n)
r = 10% and n = 4 years
So, the Present Value of Annuity Factor will be the sum of the present value of 4 years at 10%
For Year 1 = 0.9091
For Year 2 = 0.8264
For Year 3 = 0.7513
For Year 4 = 0.6830
Total = 3.1698
Therefore,
Net Present Value = (Cash inflow × Total) -
Initial Investment
= ($8600 × 3.1698) - $26,120
= $27,260.28 - $26,120
= $1140.28
If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign.
Answer:
-$1,390
Explanation:
The computation of net income using the accrual method is shown below:-
Net income = Received cash meals to customers + Served a banquet account - Received and paid electricity bill - Accrued salary expense - Prepaid insurance expired
= $470 + $1,530 - $250 - $3,000 - $140
= -$1,390
Therefore for computing the net income using the accrual method we simply applied the above formula.
Chevron signs $73b gas deal Gorgon, Chevron's huge liquefied natural gas project, is finally going forward. The company, along with Exxon Mobil and Shell will produce natural gas off the northwest coast of Australia. Gorgon and surrounding fields hold an estimated 40 trillion cubic feet of natural gas, the equivalent of 6.7 billion barrels of oil. Gorgon is located for easy shipment to Asia and will employ 10,000 workers. Source: Radio Australia, September 10, 2009 Explain how this huge project will influence Australia's potential GDP and U.S. potential GDP.
Answer:
Australia - Shift Australia's production function upward, create a movement up along the production function as the full-employment quantity of labor increases, and increase potential GDP
United States - Will not change potential GDP as production happens in Australia
Explanation:
Australia's production potential will rise which will be depicted by a shift upwards in the Production Possibilities Frontier (PPF) thereby leading to an increase in the full employment quality of labor and potential GDP for Australia.
As the production is happening in Australia, it will not affect potential GDP in the US.
Risers Inc. reported total assets of $3,200,000 and net income of $255,000 for the current year. Risers determined that inventory was understated by $69,000 at the beginning of the year and $30,000 at the end of the year. What is the corrected amount for total assets and net income for the year
Answer:
Corrected total assets= $3,230,000
Corrected net income= $216,000
Explanation:
Riser incorporation reported a total assets $3,200,000 and a net income of $255,000 for the Current year
Risers inventory was understated by $69,000 at the beginning of the year and $30,000 at the end of the year
The corrected amount for the total assets can be calculated as follows
= $3,200,000+$30,000
= $3,230,000
The corrected amount for the net income can be calculated as follows
= $255,000-$69,000+$30,000
= $216,000
Hence the corrected amount for total assets and net income for the year is $3,230,000 and $216,000 respectively
Prepare an income statement under absorption costing. Round all final answers to whole dollars. Sullivan Equipment Company Absorption Costing Income Statement For the Month Ended March 31 Sales $ 653,200 Cost of goods sold: Cost of goods manufactured $ 352,000 Inventory, March 31 38,880 Total cost of goods sold 313,120 Gross profit $ 340,080 Selling and administrative expenses 234,400 Income from operations $ 574,480
Answer:
Income Statement For the Month Ended March 31
Sales $ 653,200
Cost of goods sold:
Cost of goods manufactured $ 352,000
Less Inventory, March 31 ($ 38,880)
Total cost of goods sold ($ 313,120)
Gross profit $ 340,080
Less Expenses :
Selling and administrative expenses ($ 234,400)
Income from operations $ 105,680
Explanation:
The Product cost in absorption costing includes All Manufacturing Costs. All Non-Manufacturing Costs are treated as Period Costs that are Expensed during the period of Operation.
"A market maker enters a quote of $20.50 Bid; $21.00 Ask; with a size of "5 x 5" into the NASDAQ System. If a market order to buy is entered into the system for 1,500 shares, and this dealer's quote is matched, the market maker will be obligated to sell:"
Answer: 500 shares at $21.00
Explanation:
A market maker is one who buys and then sells security from which the stated market is made into, and using the account of the the firm. It should be noted that a market order to buy will have to be matched in sequence.
Therefore, if a market order to buy is entered into the system for 1,500 shares, and this dealer's quote is matched, the market maker will be obligated to sell 500 shares at $21.00.
You have just taken a job at a bank in the loans department. Your bank is worried about the current economic climate and its potential to limit the real rate of interest the bank will earn on new loans. The head of the department asks you to determine the proper nominal rate of interest to ensure a 6% real rate of interest, and tells you that the current inflation rate is 4%. You suggest a nominal interest rate of_____% .
Answer:
10.24%
Explanation:
We can use fisher formula to calculate the real rate of return. The fisher equation is given as under:
(1 + i) = (1 + r) * (1 + h)
Here
Nominal Interest Rate is i
Real Interest Rate is r and is 6%
And Current Inflation Rate is 4%
By putting values, we have:
(1 + i) = (1 + 6%) * (1 + 4%)
(1 + i) = (1.06) * (1.04)
(1 + i) = 1.1024
i = 1.1024 - 1 = 10.24%
The nominal interest rate that I would suggest is 10.24%.
On March 1, Pina Colada Corp. sold merchandise on account to Amelia Company for $30,200, terms 2/10, net 45-On March 6, Amelia returns merchandise with a sales price of 900. On March 11, Pina Colada Corp. receives payment from Amelia for the balance due.
Prepare journal entnes to record the March transactions on Pina Colada Corp.'s books. (You may ignore cost of goods sold entries and explanations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Date Account Titles and Explanation Debit Credit
Mar. 11
Answer:
March 1,
DR Accounts Receivable - Amelia $30,200
CR Sales revenue $30,200
March 6,
DR Sales return and allowances $900
CR Accounts Receivable $900
March 11,
DR Cash $28,714
DR Sales discounts $586
CR Accounts Receivable - Amelia $29,300
Workings
Sales Discounts - 2/10 net 45 means a disount of 10% if Amelia pays within 45 days. She did.
= 29,300 * 2%
= $586
A Quality Analyst wants to construct a control chart for determining whether three machines, all producing the same product, are under control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results:
Machine Measurements
Number1 17 15 15 17
Number2 16 25 18 25
Number3 23 24 23 22
What is the estimate of the process mean for whenever it is under control?
a. 16
b. 19
c. 20
d. 21
e. 23
Answer:
c. 20
Explanation:
The summary of the given information shows that a Quality Analyst sampled four units of output from each machine, with the following results:
Machine Measurements
Number 1 17 15 15 17
Number 2 16 25 18 25
Number 3 23 24 23 22
In order to determine the estimate of the process mean for whenever it is under control, we need to find the mean of each Machine and find the average of the three machines together
i.e
For Machine Number 1 ;
Mean = (17+15+15+17)/4
Mean = 64/4
Mean = 16
For Machine Number 2 ;
Mean = (16+25+18+25)/4
Mean = 84/4
Mean = 21
For Machine Number 3;
Mean = ( 23+24+23+22)/4
Mean = 92/4
Mean = 23
∴
The estimate of the process mean for whenever it is under control
= (16 + 21 + 23)/3
The estimate of the process mean for whenever it is under control = 60/3
The estimate of the process mean for whenever it is under control = 20
3. Individual Problems 20-3 Lightweight personal locator beacons are now available to hikers, making it easier for the Forest Service's rescue teams to locate those lost or in trouble in the wilderness. True or False: Forest Service costs will likely fall due to moral hazard. True False
Answer: False
Explanation:
Moral Hazard refers to the tendency of people or entities to take on more risk if they know they will be saved from it.
With the Forest Service now making locator beacons available for hikers, the result will be that more hikers will be emboldened to hike further in the wilderness or into more dangerous areas knowing that should they get in trouble, the rescue teams will locate them faster. It will also mean that more hikers will start coming to the forest because they feel they can hike and be found easily if they get into trouble.
These 2 things will mean that the Forest Service will both have to conduct more rescue missions and maybe hire more personnel as a result of the increased number both of which will increase their costs not reduce them.
A $200,000 loan amortized over 12 years at an interest rate of 10% per year requires payments of $21,215.85 to completely remove the loan when interest is charged on the unrecovered balance of the principal. If interest is charged on the original principal instead of the unrecovered balance, what is the loan balance after 12 years provided the same $21,215.85 payments are made each year?
Answer:
loan balance after 12 years = $185409.8
Explanation:
Loan principal = $200000
interest = 10% of principal
amount paid yearly = $21215.85
For 1st year
principal for the first year = $200000
required interest to be paid = 10% of 200000 = $20000
amount paid = $21215.85
Loan Balance after first year = (principal for first year) - (amount paid - 10% of principal ) = $198,784.15
For 2nd year
principal for the 2nd year = Loan balance after first year = $198,784.15
loan balance after 2nd year = 198784.15 - ( 21215.85 - 10% of 198784.15)
= $197568.30
same applies for the different years until the 12th year
using this formula :
Loan Balance after Nth year = [ Loan balance after (n-1) year - ( amount paid - 10% of loan balance after (n-1) year ) ]
The payroll register of Seaside Architecture Company indicates $910 of Social Security and $250 of Medicare tax withheld on total salaries of $15,000 for the period. Federal withholding for the period totaled $3,245.
Required:
1. Provide the journal entry for the period's payroll.
CHART OF ACCOUNTS
Seaside Architecture Company
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
213 Interest Payable
214 Notes Payable
221 Salaries Payable
222 Social Security Tax Payable
223 Medicare Tax Payable
224 Employees Federal Income Tax Payable
225 State Withholding Tax Payable
226 Federal Unemployment Tax Payable
227 State Unemployment Tax Payable
228 State Disability Insurance
231 Medical Insurance Payable
232 Retirement Savings Deductions Payable
233 Union Dues Payable
234 Vacation Pay Payable
235 Unfunded Pension Liability
241 Product Warranty Payable
242 EPA Fines Payable
243 Litigation Claims Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Merchandise Sold
520 Salaries Expense
525 Delivery Expense
526 Repairs Expense
531 Rent Expense
533 Insurance Expense
534 Supplies Expense
535 Cash Short and Over
536 Product Warranty Expense
541 Vacation Pay Expense
542 Pension Expense
543 Payroll Tax Expense
544 Federal Income Tax Expense
545 State Income Tax Expense
561 Depreciation Expense-Building
562 Depreciation Expense-Office Equipment
570 Damage Awards and Fines
590 Miscellaneous Expense
710 Interest Expense
2. Prepare the journal entry for the period’s payroll on December 31.
Answer and Explanation:
The journal entries are shown below:
Salaries expense Dr $15,000
To Social security tax payable $910
To Medicare tax payable $250
To Employees federal income tax payable $3,245
To Salaries payable $10,595 (Balancing figure)
(Being the payroll expense is recorded)
For recording this we debited the salaries expense as it increased the expenses and credited all payable account as it also increased the liabilities
The comparative cash flow statements from Sears and Wal-Mart are presented above. Amounts presented are in millions. Review both statements considering what you've learned in this chapter about the cash flow statement. Answer the following questions: When analyzing a company's cash flow statement, which section of the statement (operating, investing or financing) do you believe is the best predictor of a company's future profitability? Why? Which company do you believe is healthier based on the cash flow statements presented? Provide at least two specific examples from the statements. Your initial post is due four (4) days prior to the discussion due date or points will be deducted from your discussion score. Please review the discussion board requirements above.
The complete question is attached.
Answer:
Sears Holding Corporation and Wal-Mart Stores, Inc.
1. The section of the cash flow statement that is the best predictor of a company's future profitability is the Operating Activities Section. The reason is that the operating activities section shows the net cash from operating activities or the core business activities of the entity. A business entity's profitability is not determined by subsidiary activities like financing and investing activities. But it is ascertained by reviewing its operating activities which also define the mission of the business and show the strategies it can deploy to attain its goals.
2. Walmart Stores, Inc. is by far healthier than Sears Holdings Corporation, at least based on the January 30, 2016 statements of cash flows. For instance, Walmart Stores recorded a Net Cash Flow from operations in the sum of $27,389 million while Sears recorded a negative Net Cash Flow from operations in the sum of $2,167 million. Again, from the operating activities sections, one can see that Walmart Stores, Inc. was able to make a net income before adjustments of $15,080 million, whereas Sears Holding Corporation performed abysmally poor by incurring a net loss of $1,128 million.
Explanation:
The Sears and Walmart's statements of cash flows are one of the three main financial statements prepared and presented by Sears Holding Corporation or Walmart Stores, Inc. to its stockholders and the general public to show financial information about its activities. Specifically, the statements of cash flows for Sears and Walmart show the flow of cash under three main activity headings: operating, financing, and investing.
Two methods can be used by Sears and Walmart to prepare the statement. They include the indirect method, which starts from the net income, and the direct method, which shows the cash inflows and outflows for each cash flow item for Sears and Walmart.
Monochronic time is a Question 34 options: preference for multitasking. desire to do as little as possible for a period of time. time for the open discussion of problems or challenges. time when little is accomplished. preference for doing one thing at a time.
Answer:
Preference for doing one thing at a time.
Explanation:
Monochronic time has a simple direct explanation which means the preference of doing one thing at a time. This is directly seen in a managerial and business organisation system or bodies; as it affects working patterns and output of employees. In a world that is seen to be globalized, cultural attitudes and behaviours of people play a crucial role in business and role of output or success of a person. This is said to be so because of time perception tend to change peoples orientation and personal organisations towards meeting, work and some other social functions. The time a European appears to a meeting(on time or minutes before) is different from that of an African(minutes or hours behind schedule).