P11-45. Statement of Cash Flows (Indirect Method). Artic Company’s income statement and comparative balance sheet follow. ARTIC COMPANY Income Statement For Year Ended December 31, 2019. Sales……………………………………………………………….. $728,000 Cost of goods sold $534,000 Wages expense 190,000 Advertising expense 31,000 Depreciation expense 22,000 Interest expense 18,000 Gain on sale of land (25,000) 770,000 Net loss $ (42,000) ARTIC COMPANY Balance Sheet December 31, 2019 December 31, 2018 Assets Cash……………………………………… 49,000 28,000 Accounts receivable …………. 42,000 50,000 Inventory ……………………………… 107,000 113,000 Prepaid advertising……………….. 10,000 13,000 Property, plant, equipment……. 360,000 222,000 Accumulated depreciation……... (78,000) (56,000) Total assts………………………………. 490,000 370,000 Liabilities and Stockholders’ Equity. Accounts payable……………………….. 17,000 31,000 Interest payable…………………………. 6,000 - Bonds payable……………………………. 200,000 - Common stock………………………….. 245,000 245,000 Retained earnings…………………….. 52,000 94,000 Treasury Sock……………………………. (30,000) - Total liabilities and equity…………. 490,000 370,000 During 2019, Artic sold land for $70,000 cash that had originally cost $45,000. Artic also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable for cash in 2019. Accounts payable relate to merchandise purchases. Required. a. Compute the change in cash that occurred during 2019 b. Prepare a 2019 statement of cash flows using the indirect method.

Answers

Answer 1

Answer and Explanation:

a. The computation of change in cash during 2019 is shown below:-

Change in cash = Cash balance on 31 Dec 2019 - Cash balance on 31 Dec 2018

= $49,000 - $28,000

= $21,000

b. The Preparation of statement of cash flows using the indirect method of 2019 is shown below:-

                                       Artic Company’s

                                 By using the direct method

                                For the year ended 2019

Particulars                                                                    Amount

Cash flow from operating activities

Net income/loss                                                            ($42,000)

Adjustment to reconcile the net income

Depreciation expenses                     $22,000

Less: Gain on sales of land                ($25,000)

Changes in current assets and current liabilities

Decrease in accounts receivable       $8,000

($50,000 - $42,000)

Decrease in Inventory                          $6,000

($113,000 - $107,000)

Decrease in Prepaid advertising          $3,000

($13,000 - $10,000)

Increase in Interest payable                  $6,000

Less: Decrease in accounts payable    ($14,000)           $6,000

($31,000 - $17,000)

Net cash provided by operating activities                     ($36,000)

Cash flow from investing activities    

Cash received from sale of land               $70,000

Cash paid for equipment                            ($183,000)

($360,000 - ($222,000 - $45,000)

Cash flow provided by investing activities                       ($113,000)

Cash flow from financing activities

Cash received from issue of bonds payable $200,000

Cash payment for Treasury stock                   ($30,000)

Net cash provided by financing activities                        $170,000    

Net Increase (Decrease) in cash                                        $21,000

Cash baalance on 21 Dec 2018                                          $28,000

Cash balance on 31 Dec 2019                                             $49,000

Answer 2
Answer A:

The computation of change in cash during 2019 is shown below:-

Change in cash = Cash balance on 31 Dec 2019 - Cash balance on 31 Dec 2018Change in cash = $49,000 - $28,000Change in cash = $21,000

Answer B:

The Preparation of statement of cash flows using the indirect method of 2019 is shown below:-

                                      Artic Company’s

                                By using the direct method

                               For the year ended 2019

Particulars                                                                    Amount

Cash flow from operating activities

Net income/loss                                                            ($42,000)

Adjustment to reconcile the net income

Depreciation expenses                     $22,000

Less: Gain on sales of land                ($25,000)

Changes in current assets and current liabilities

Decrease in accounts receivable       $8,000

($50,000 - $42,000)

Decrease in Inventory                          $6,000

($113,000 - $107,000)

Decrease in Prepaid advertising          $3,000

($13,000 - $10,000)

Increase in Interest payable                  $6,000

Less: Decrease in accounts payable    ($14,000)           $6,000

($31,000 - $17,000)

Net cash provided by operating activities                     ($36,000)

Cash flow from investing activities    

Cash received from sale of land               $70,000

Cash paid for equipment                            ($183,000)

($360,000 - ($222,000 - $45,000)

Cash flow provided by investing activities                       ($113,000)

Cash flow from financing activities

Cash received from issue of bonds payable $200,000

Cash payment for Treasury stock                   ($30,000)

Net cash provided by financing activities                        $170,000    

Net Increase (Decrease) in cash                                        $21,000

Cash balance on 21 Dec 2018                                          $28,000

Cash balance on 31 Dec 2019                                             $49,000

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Related Questions

The selling price of a particular product is $6 per​ unit, fixed costs total $18,000 ​, and the breakeven sales in dollars is $24,000 . What would be the variable expense per​ unit?

Answers

Answer:

$1.5= unitary variable cost

Explanation:

Giving the following information:

The selling price of a particular product is $6 per​ unit, fixed costs total $18,000​, and the breakeven sales in dollars is $24,000

To calculate the unitary variable cost, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 24,000/6= 4,000

4,000= 18,000/ (6 - unitary variable cost)

24,000 - 4,000unitary variable cost = 18,000

6,000 = 4,000unitary variable cost

1.5= unitary variable cost

Sunland Company reported the following information for 2016: October November December Budgeted sales $1300000 $1200000 $1540000 All sales are on credit. Customer amounts on account are collected 50% in the month of sale and 50% in the following month. How much cash will Sunland receive in November?

Answers

Answer:

Total cash receipts - November = $1250000

Explanation:

The credit sales are collected for in such a manner that the 50% amount of this month's sale and the 50% amount of previous month's sales are collected in the correct month. Thus, when calculating the cash receipts for November, we know that the 50% of collections will be for October's sales and the 50% of collections will be from the November's sales.

Cash receipts in November:

From October's sales = 1300000 * 0.5  = $650000

From November's sales = 1200000 * 0.5 = $60000

Total cash receipts - November = 650000 + 600000

Total cash receipts - November = $1250000

MONTGOMERY INC.
Comparative Balance Sheets
December 31
Current Year Prior Year
Assets
Cash $ 30,800 $ 31,000
Accounts receivable, net 8,900 10,900
Inventory 79,800 63,000
Total current assets 119,500 104,900
Equipment 44,200 37,300
Accum. depreciation—Equipment (19,900) (13,800)
Total assets $ 143,800 $ 128,400
Liabilities and Equity
Accounts payable $ 21,200 $ 22,900
Salaries payable 400 500
Total current liabilities 21,600 23,400
Equity
Common stock, no par value 102,400 94,100
Retained earnings 19,800 10,900
Total liabilities and equity $ 143,800 $ 128,400
MONTGOMERY INC.
Income Statement
For Current Year Ended December 31
Sales $ 38,500
Cost of goods sold (16,000)
Gross profit 22,500
Operating expenses
Depreciation expense $ 6,100
Other expenses 4,700
Total operating expense 10,800
Income before taxes 11,700
Income tax expense 2,800
Net income $ 8,900
Additional Information on Current-Year Transactions
1. No dividends are declared or paid.
2. Issued additional stock for $8,300 cash.
3. Purchased equipment for cash; no equipment was sold.
Use the above information to prepare a statement of cash flows for the current year using the indirect method. (A

Answers

Answer:

Montgomery Inc.

Statement of Cash Flow, using the indirect method:

Net income                                     $ 8,900

adjusting non-cash expense:

Depreciation                                      6,100

Net Cash from operations           $15,000

Add: Working Capital:

Accounts receivable                      (2,000)

Inventory                                       (16,800)

Accounts Payable                           (1,700)

Salaries payable                                (100)

Cash from operating activities   ($5,600)

Investing Activities:

Purchase of Equipment                (6,900)

Financing Activities:

Issue of additional stock               8,300

Net cash flow                              $4,200

Explanation:

MONTGOMERY INC.  Comparative Balance Sheets

December 31

                                                 Current Year     Prior Year

Assets

Cash                                              $ 30,800           $ 31,000

Accounts receivable, net                   8,900              10,900

Inventory                                          79,800              63,000

Total current assets                        119,500            104,900

Equipment                                        44,200              37,300

Accum. depreciation: Equipment   (19,900)             (13,800)

Total assets                                 $ 143,800          $ 128,400

Liabilities and Equity

Accounts payable                         $ 21,200          $ 22,900

Salaries payable                                   400                   500

Total current liabilities                     21,600             23,400

Equity

Common stock, no par value       102,400              94,100

Retained earnings                          19,800               10,900

Total liabilities and equity         $ 143,800         $ 128,400

MONTGOMERY INC.

Income Statement  

For Current Year Ended December 31

Sales                              $ 38,500

Cost of goods sold          (16,000)

Gross profit                      22,500

Operating expenses

Depreciation expense    $ 6,100

Other expenses                 4,700

Total operating expense 10,800

Income before taxes        11,700

Income tax expense         2,800

Net income                    $ 8,900

b) The indirect method of preparing the statement of cash flows starts with the net income and uses the balances in the balance sheet to determine if they are net cash outflows or inflows.

If oligopolistic firms banded together with the intention of acting like a monopoly, it would likely result in their being able to Group of answer choices

Answers

Answer:

a. divide up the monopoly level of profit amongst themselves

Explanation:

Here are the options :

a. divide up the monopoly level of profit amongst themselves

b. hold down output in the short-run

c. charge a higher price in the short-run

d. both b and c are correct

An oligopoly is when there are few firms operating in an industry.

characteristics of an oligopoly includes :

1. few large firms operating in the industry

2.high barriers to entry or exit of firms.

when oligopolistic firms banded together with the intention of acting like a monopoly, it is known as a collusion.

when there is a collusion, the firms act like a monopoly, that is they decide on the price or quantity to sell at. the profits they earn is divided among the firms

a) While excavating, the Contractor hits a rock layer. Since the plans and soil report did not mention such rock, the contractor files a claim under: i. Force majeure. ii. Differing site conditions. iii. Design errors/omissions. iv. Unusual weather conditions. v. Changes in owner’s requirements.

Answers

Answer:

Differing site conditions

Explanation:

A differing site condition is a condition that has been changed. Since the plan did not mention this rock, the contractor can file a claim under this.

It is a hidden physical condition that is discovered at a site which is actually different from what was expected. It can also be regarded as unforeseen site condition.

Suppose the 2017 financial statements of 3M Company report net sales of $21.7 billion. Accounts receivable (net) are $3.40 billion at the beginning of the year and $3.42 billion at the end of the year.
1. Compute 3M’s receivable turnover.
2. Compute 3M’s average collection period for accounts receivable in days.

Answers

Answer:

A.Receivable turnover 6.36

B. Average collection period 57.38

Explanation:

A. Computation of 3M Company’s receivable turnover

Using this formula

Receivable turnover= Net annual credit sale / (beginning accounts receivable+ending accounts receivable)/2

Let plug in the formula

Receivable turnover=21.7/ ((3.40 +3.42)/2)

Receivable turnover= 21.7/(6.82/2)

Receivable turnover=21.7/3.41

Receivable turnover=6.36

B. Computation of 3M Company’s average collection period for accounts receivable in days

Using this formula

Average collection period = Number of days in a year/Receivable Turnover

Let plug in the formula

Average collection period=365 /6.36

Average collection period= 57.38

Therefore Receivable turnover will be 6.36 and the Average collection period will be 57.38.

From past records it is known that 10% of items from a production line are defective. If two items are selected at random, what is the probability that only one is defective?

Answers

Answer:

0.2

Explanation:

The Probability distribution is the function which describes the likelihood of possible values assuming a random variable. The 10% of the items from the production line are assumed to be defective. There is a sample selection of 2 items. The probability that one of the item among the selected sample of two items is found defective is 0.2 (2 items sample *10%)

he Clark Company fails to record these two adjusting journal entries: Depreciation on Equipment: $10 Cash Dividends declared: $40 Working capital will be:

Answers

Answer:

Working Capital will be overstated by the amount of $40.

Explanation:

Of the two the adjusting entries, we need to identify the adjusting entry that affects any element of Working Capital (Current Assets or Current Liability).

Depreciation Entries include : Debit Depreciation Expense (Expense)  $10 and Credit Accumulated Depreciation  $10.

Cash Dividends Declared Entries include : Debit Dividend (Equity) $40 and Credit Shareholders for Dividends (Liability) $40.

Thus, the Liabilities will be understated due to omission of Cash Dividends Declared Entries.

Subsequently, Working Capital will be overstated by the amount of $40.

On Jan 15th, Mr. White discovered that the net income for the previous year was understated by $60,000. Mr. Black tells Mr. White that this net income of $60,000 should be shared in the proportion of their current capital balances. (Mr. White = 150,000/$250,000 = 60% = $36,000; Mr. Black = $100,000/$250,000 = 40% = $24,000). But Mr. White feels that the additional income should be shared in the ratio of 2:1 ($60,000 x 2/3 = $40,000 Mr. White; $60,000 x 1/3 = $20,000 Mr. Black). Who is correct? Why?

Answers

Answer:

Mr. Black is correct.  There is a basis established by their current capital balances.  Mr. White's ratio of 2 : 1 has not discernible basis, unless that has been their profit sharing ratio.

Explanation:

In the absence of any contrary agreement, partners in a partnership business always share their net income based on their capital contributions.  Sometimes, this may not be strictly followed, especially with changes effected over the years, it becomes necessary to adopt home-grown solutions.  One of such is the current capital balances, instead of the original capital contributions.  This approach takes care of changes and value contributions over a number of years that the business has been in operation, which the current capital accounts will always show.

Exhibit 35-4 Refer to Exhibit 35-4. Under a fixed exchange rate system, at the exchange rate of E 3, the dollar is __________ and there is a __________.

Answers

Please find diagram for question attached

Question options:

a.

overvalued; surplus of dollars

b.

undervalued; shortage of pesos

c.

overvalued; shortage of dollars

d.

undervalued; surplus of pesos

Answer:

Overvalued and there is a shortage of dollars

Explanation:

An increase in dollar price to buy peso means that dollar here is overvalued as it is above the equilibrium price(E2),and therefore it would be expensive to buy goods that are sold for a certain amount of dollars or in dollar currency with the Mexican pesos. This is because the fixed exchange rate system tries to ensure smooth and inexpensive trade between countries as it has to do with currency trading barriers by pegging a currency to another(in this case dollars) but here the dollar price increase for peso makes it more expensive to buy dollar products with pesos. Also this is caused here by the shortage of dollars.

To answer this question, refer to the crossover chart. For high volume production process, Process A would most likely be the best option. Group of answer choices True False

Answers

Answer: False

Explanation:

For a high volume Process, Process C would be the best option because it has the lowest cost at higher volumes.

Process A would be the best option if the company was looking for a low volume production process because at that point, it has the lowest cost. When it comes to high volume production though, Option A is the worst option as it is the most expensive.

Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,100 each. Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree to reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use. The following data have been collected:
Requirements (annual forecast) 13,200 units
Weight per engine 25 pounds
Order processing cost $230 per order
Inventory carry cost 20 percent of the average value of inventory per year
Note: Assume that half of lot size is in inventory on average (1,100/2 = 550 units).
Two qualified suppliers have submitted the following quotations:
ORDER QUANTITY SUPPLIER 1 SUPPLIER 2
UNIT PRICE UNIT PRICE
1 to 1,499 units/order $ 553 $ 552
1,500 to 2,999 units/order 551 552
3,000 + units/order 543 542
Tooling costs $ 28,300 $ 24,400
Distance 120 miles 100 miles
Your assistant has obtained the following freight rates from your carrier:
Truckload (42,000 lbs. each load): $0.80 per ton-mile
Less-than-truckload: $1.20 per ton-mile
Note: Per ton-mile = 2,000 lbs. per mile.
a-1.Calculate the total cost for each supplier. (Round your answers to the nearest whole number.)
a-2. Which supplier would you select?
b. If you could move the lot size up to ship in truckload quantities, calculate the total cost for each supplier.

Answers

Answer:

A)

Sup 1  $7,415,250

Sup 2 $7,394,080

I will pick supplier 2 as their total cost is lower.

With the assumption of point b:

Supplier 1 $  7,412,612

Supplier 2 $ 7,419,296

Explanation:

We must use the values for 1 to 1,499 units as we are constrained to a maximum of 1,100 lot size.

Weight of the lot:

1,100 x 25 pounds = 27,500 we do not achieve truckload

So we use the 1.20 per ton-mile

27,500 / 2,000 = 13.75 tons

13.75 tons x $1.20 each x 100 miles x 12 per year =  $23,760

13.75 tons x $1.20 each x 120 miles x 12 per year = $19,800

Order cost $230 x 12 per year = $ 2,760

[tex]\left[\begin{array}{cccc}&$Supplier 1&$Supplier 2&$Differential\\$Demand&13200&13200&0\\$Unit Cost&553&552&-1\\$Goods cost&7299600&7286400&-13200\\$Tooling Cost&28300&24400&-3900\\$Truckload&23760&19800&-3960\\$Order Cost&2760&2760&0\\$Holding Cost&60830&60720&-110\\$Total Inventory Cost&7415250&7394080&-21170\\\end{array}\right][/tex]

Truckload: 42,000 / 25 = 1,680 units

new logistic cost:

13,200 / 1,680 = 7.85

This will mean 7 full travels and then another travel with less than full-load with As we cannot send "0.85" of a full load truck

13,200 - 1,680 x 7 = 1,440 units

Logistic cost:

42,000 / 2,000 x $0.80 each x 100 miles x 7 travels

+ 1,440 x 25 / 2000 x $1.20 each x 100 miles =  13920

42,000 / 2,000 x $0.80 each x 120 miles x 7 travels

+ 1,440 x 25 / 2000 x $1.20 each x 120 miles = 16,704

Order Cost: 8 orders x 230 = $1,840

Holding Cost: 1,680 untis / 2  x $551 or $552 x 20%

[tex]\left[\begin{array}{cccc}&Supplier 1&Supplier 2&Differential\\$Demand&13200&13200&0\\$Unit Cost&551&552&1\\$Goods cost&7273200&7286400&13200\\$Tooling Cost&28300&24400&-3900\\$logistic cost&16704&13920&-2784\\$Order Cost&1840&1840&0\\$Holding Cost&92568&92736&168\\$Total Inventory Cost&7412612&7419296&6684\\\end{array}\right][/tex]

Dothan Inc.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return, and a 25% chance of producing a −18% return. What is the firm's expected rate of return?

Answers

Answer:

Therefore, the firm's expected rate of return is 9%.

Explanation:

The expected rate of return of an investment refers to the profit or loss which an investors is anticipating to receive from the investment at a specified rate of return.

The expected rate of return is estimated by totaling the product of potential outcomes and the chances of the outcomes occurring.

For Dothan Inc.'s stock therefore, the expected rate of return can be estimated as follows:

Expected rate of return = (25% * 30%) + (50% * 12%) - (25% * 18%) = 9%

Therefore, the firm's expected rate of return is 9%.

The negotiated ________ agreement outlines the rights of both parties in the negotiating process, including work hours, wages, employee benefits and grievance procedures.

Answers

Answer:

labor-management

Explanation:

Labor-management agreement is when the leaders and the employees of a company make an agreement that has the goal of protecting the rights of the parties involved and define aspects like salaries and working conditions of the employees. According to this, the answer is that the negotiated labor-management agreement outlines the rights of both parties in the negotiating process, including work hours, wages, employee benefits and grievance procedures because this agreement between employees and employers establishes the conditions the employees will receive for their services to avoid disputes and protect the rights of the parties.

Suppose the economy is in a recession. The economy needs to expand by at least $300 billion, and the marginal propensity to consume is 0.6. What is the least amount the government can spend to overcome the $300 billion gap

Answers

Answer: $120 billion

Explanation:

Fron the question, we are told that an economy is in a recession and needs to expand by at least $300 billion, and the marginal propensity to consume is 0.6.

The least amount the government can spend to overcome the $300 billion gap goes thus:

Since MPC = 0.6, then the multiplier will be:

= 1/(1-MPC)

= 1/(1-0.6)

= 1/0.4

=2.5

We are also informed that the required change in the money supply is $300 billion. Then, the investment needed will be:

= Expansion/Multiplier

= $300 billion/2.5

= $120 billion

An option is called a derivative security because: Select one: a. its value is derived from that of another asset b. to calculate its worth requires extensive derivations c. it is the basic building block security we use to value all other derivative securities d. its value is derived from the existence of a convex payoff around an exercise value e. none of the above

Answers

Answer:

The answer is A.

Explanation:

Firstly, what is a derivative? - A derivative is a financial instrument that derives its value from the value of the underlying asset(bonds, equity etc) or forward rate agreement in the case of interest rate swap. A derivative transforms the value of the underlying.

Examples of derivative are, forward contract, futures, options, swaps etc.

Therefore, option A is the correct option.

When using the equity method, receipt of cash dividends increases the carrying (book) value of an investment in equity securities.
A. True
B. False

Answers

The correct answer is false
False most definitely

On March 4, Micro Sales makes $4,850 in sales on bank credit cards that charge a 2.5% service charge and deposits the funds into Micro Sales' bank accounts at the end of the business day. Journalize the sales and recognition of expense as a single journal entry.

Answers

Answer:

Please see the journal entry below

Explanation:

Dr Cash. $4,728

($4,850 - $121.25)

Dr Credit card expense. $121.25

(2.5% × $4,850)

Cr Sales $4,850

We can infer from the question that sales can be debited to cash since the deposit is at the end of the business day.

Michelle Townsend owns stock in National Computers. Based on information in its annual report, National Computers reported after-tax earnings of $9,700,000 and has issued 7,000,000 shares of common stock. The stock is currently selling for $32 a share. a. Calculate the earnings per share for National Computers. (Round your answer to 2 decimal places.) b. Calculate the price-earnings (PE) ratio for National Computers. (Use the rounded earnings per share from part a. Round your answer to 2 decimal places.)

Answers

Answer:

1. Earnings per share = $1.39

2. Price earning ratio = $23.02

Explanation:

1.  Earnings per share = After tax income / Number of shares

Earnings per share = $9,700,000 / 7,000,000

Earnings per share = $1.39

2. Price earning ratio = Price per share / Earning per shares

Price earning ratio = $32 / $1.39

Price earning ratio = $23.02

Researchers often are particularly interested in the subset of a market that contributes most to sales (for example, heavy beer drinkers or large-volume retailers). What type of sampling might be best to use with such a subset? Why?

Answers

Answer:

1122

Explanation:

Stratified Sampling is the type of sampling might be best to use with such a subset.  

What is Stratified Sampling?

In stratified sampling, respondents are divided into groupings known as strata based on shared traits. A different probability sampling technique is used to randomly sample each subgroup once it has been divided.

When a population has a variety of subgroups, stratified sampling is useful to ensure that every group is represented in the sample. Mere random sample and systematic sampling might not be able to fully represent all of these groupings, especially the relatively uncommon ones.

However, proportional stratified random sampling, where a population is divided into strata and a random sample is subsequently drawn from each in proportion to its size, is arguably the most prevalent variety. For instance, if the population as a whole has 60% females and 40% males.

Thus, Stratified Sampling.

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Which of the following is a characteristic of a firm’s optimal dividend policy? It maximizes the firm’s stock price. It maximizes the firm’s return on equity. It maximizes the firm’s earnings per share. It maximizes the firm’s total assets.

Answers

Answer:

It maximizes the firm’s stock price.  

Explanation:

The correct answer is “it maximizes the firm’s stock price” because the optimal dividend policy allows the variable risk parameters and it maximizes the firm’s value. Moreover, the dividend policy attracts the shareholders and it maintains the firm’s or the company’s worth in the market. Therefore, the optimal payment of dividend increases or maximizes the stock price.

Goods that are specifically made for the buyer and are of such an unusual nature that they are not suitable for trade in the ordinary course of the seller's business are called _____.

Answers

Answer:

non-resellable goods

Explanation:

Sometimes goods that are so uniquely customized in order to fit or serve only one client, cannot be sold to anyone else. This type of goods are considered non-resellable since it is very difficult or very unusual for another customer to purchase such a good.

E.g. suppose that you have a lot of money but at the same time like rainbows and decide that you are going to purchase a Porsche, but you are going to customize with a rainbow like paint and interior. This car would be so unique that only you would buy it and drive it.

"A municipality has a tax rate of 18 mills. A piece of real property in the municipality is assessed at $180,000 and has a fair market value of $165,000. The annual tax liability on the property is:"

Answers

Answer:

$3,240

Explanation:

Calculation for the annual tax liability on the property

Using this formula

Annual tax liability= (Tax rate× Real property )

Where= Tax rate =18 million

Real property=180,000

Let plug in the formula

Annual tax liability=( .018x180000)

Annual tax liability=$3,240

Therefore the annual tax liability on the property is $3,240

1. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $84,200. The machine's useful life is estimated at 10 years, or 386,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 32,600 units of product. Determine the machine's second-year depreciation and year end book value under the straight-line method.
2. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $84,200. The machine's useful life is estimated at 10 years, or 386,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 32,600 units of product. Determine the machine's second-year depreciation using the double-declining-balance method.

Answers

Answer:

1) Determine the machine's second-year depreciation and year end book value under the straight-line method.

depreciation expense per year = (purchase cost - salvage value) / useful life

depreciation expense per year = ($84,200 - $7,000) / 10 = $7,720

book value at the end of year 2 = $84,200 - ($7,720 x 2) = $68,760

2) Determine the machine's second-year depreciation using the double-declining-balance method.

depreciation year 1 = 2 x 1/10 x $84,200 = $16,840

depreciation year 2 = 2 x 1/10 x $67,360 = $13,472

book value at end of year 2 = $67,360 - $13,472 = $53,888

True or False: All other things being equal, firms exhibiting high degrees of operating leverage exhibit lower levels of business risk. This statement is: True False

Answers

Answer: False

Explanation:

Operating Leverage is used to measure how much a change in sales translates to a change in income. In general, a higher operating leverage means that a small change in sales leads to a higher change in income. This is quite risky because it shows that even a small error when forecasting sales can lead to a larger error in the cash flow that will be expected from the sales. This makes forecasting harder and increases business risk.

You are preparing a presentation on networking for a professional development seminar that your company is hosting for its employees. You look at the attendance list and see that you have good relationships with all of the registered seminar participants. Additionally, this presentation is a follow-up presentation that was requested by previous participants. You know you will have a friendly audience. What organizational pattern would be best for this situation

Answers

Answer:

any pattern.

Explanation:

When preparing a presentation for an organizational seminar, it is ideal to pre-analyze the audience for whom you will be presenting, the common characteristics of the audience will be essential for choosing the best organizational pattern.

In the scenario above, it is possible to perceive that the public is known and friendly, therefore any organizational pattern can be used, the focus in this case should be the use of a pattern that increases the involvement of the participants.

The essential thing is for the presenter to convey confidence by passing on important information, preparing beforehand, maintaining a friendly and cordial posture and being open to interaction with the public.

g If the velocity of money triples, while real GDP and money supply remain unchanged, in the long run, the price level:

Answers

Answer:

if velocity triples, then in the long run, price would triple

Explanation:

According to the quantity theory of money

velocity x money supply = output x price

if velocity triples, then in the long run, price would triple

Cost reduction is still the number one priority for many supply chain executives, according to the MHI and Deloitte survey. Select one: True False

Answers

Answer:

MHI and Deloitte Survey

Cost Reduction #1 Priority

True

Explanation:

For supply chain companies to achieve their profit targets, they need to curtail costs.  Consumers are not ready to absorb much costs as they are presented with low-priced alternatives.  The competition for customers among supply chain organizations is very high.  Everyone competes for the dollar the consumer is willing to spend on goods.  With property and advertising costs skyrocketing, careful management of the cost structure is required.

InstaTrack is a newly emerging athletic shoe manufacturing company. After extensive market research, InstaTrack divides its market into professional athletes, "hobbyists" or amateur players, and people who wear shoes as part of their casual attire. Each category has its own needs, traits, and marketing goals. In this scenario, which of the following most accurately reflects Insta Track's marketing strategy?
a) diversification
b) development
c) positioning
d) segmentation

Answers

Answer:

The answer is D

Explanation:

Market segmentation is the process of dividing a larger consumers or market into a smaller group(segments) based on some criteria.

One of the importances is that it allows a business to know what their customers' demands, or needs are.

Customers in the same segment respond similarly to market strategies.

An investor purchases a put option with a strike price of $100 for $3. This option is considered "in the money" if the underlying is trading:

Answers

Answer: a.below $100

Explanation:

When a Put option is considered "in the money", it means that the underlying stock is trading at a value less than the strike price.

This is because with Put options, a person makes a profit if the underlying stock decreases to a value lower than the Strike Price because the Put option gives them to right to sell at the Strike price which means they would be selling at a value higher than the Market.

The above Put is therefore "in the money" if the underlying is selling less than the Strike price of $100.

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