1. Suppose two types of firms wish to borrow in the bond market. Firms of type A are in good financial health and are relatively low risk. The appropriate premium over the risk-free rate of lending to these firms is 2%. Firms of type B are in poor financial health and are relatively high risk. The appropriate premium over the risk-free rate of lending to these firms is 6%. As an investor, you have no other information about these firms except that type A and type B firms exist in equal numbers. a. At what interest rate would you be willing to lend if the risk-free rate were 5%

Answers

Answer 1

Answer:

Type A is 7%, type b is 11%

Explanation:

We have these two firm's as type a and type b

For type A

Interest would be = risk Free rate of 2% + risk free rate of 5% = 7%

For type B

= Risk free rate of 5% + risk free rate of 6% = 11%

I would use the average of this two 9% as interest but this is not going to work for type A because this interest rate is too high. People won't want to pay this much.


Related Questions

do you really think reseller partners will help out to uplift the factors of macro environment?

Answers

Answer:

yes

Explanation:

1.15
This financial statement reflects the flow of money in and out of a business.
occeed cash flow
Stato
Total: 15 marks
Question 2​

Answers

Answer:

cash flow statement

Explanation:

because it determines the inflows and outflows of the business

Solvency refers to: A. long-term ability to generate sufficient cash to satisfy plant capacity needs, fuel growth, and to repay debt when due. B. short-term ability to fund the company's operating needs. C. long-term ability to generate cash to for plant capacity needs and to fuel growth. D. the company's ability to generate sufficient cash to repay debt when due.

Answers

Answer:

A. long-term ability to generate sufficient cash to satisfy plant capacity needs, fuel growth, and to repay debt when due.

Explanation:

Solvency is defined as the long-term ability of a business the generate enough cash flow that will allow it to continue its operations and also to pay of its debt when due.

It is used as a measure of the financial health of the business.

A business with good solvency has a high probability of remaining in operation for the foreseeable future.

An advantage of a corporation is that
A
owners pay fewer taxes than owners of other forms of business.
B
the business is subject to little government regulation.
с
owners have limited liability for debt.
D
owners have direct and immediate control over daily management of the business.

Answers

Answer:

Explanation:

An advantage of a corporation is that owners have limited liability for debt.

The advantage of a corporation is that owners have limited liability for debt. Thus, option (c) is correct.

This means that the corporate entity shields the shareholders from liability beyond the value of their investments, so protecting their personal assets.

When a company regularly assumes significant risks for which it could be held liable, limited liability is a distinct advantage. A corporation also offers protection from personal liability, continuity, and security for the business, quicker access to financing, and simple ownership transfers.

Therefore, option (c) is correct.

Learn more about on corporation, here:

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Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following case: Graham Pharmaceuticals has a quick ratio of 2.00x, $31, 500 in cash, $17, 500 in accounts receivable, some assets of inventory, total $70,000, and total abilities of $24, 500. The company reported annual sales of $100,000 in the most recent annual report, over the past year, how often did Graham Pharmaceuticals sell and replace its inventory? a. 8.01 x.b. 5.24 x.c. 2.85 x.d. 4.75 x.The inventory turnover ratio across companies in the pharmaceutical industry is 4.05x. Based on this information, which of the following statements is true for Graham Pharmaceuticals? A. Graham Pharmaceuticals is holding less inventory per dollar of sales compared to the industry average. B. Graham Pharmaceuticals is holding more inventory per dollar of sales compared to the industry average. You are analyzing two companies that manufacture electronic toy s-Like Games Inc. and our Play Inc. Like Games was launched eight years ago, whereas Our Play is a relatively new company that has been in operation for only the past two years. However, both companies have an equal market share with sales of $100,000 each. You've collected company data to compare Like Games and our play. Last year the average companies in the coming year. You've collected data from the companies financial statements. This information is listed as follows:Using this information, complete the following statements to include in your analysis. Data collected (in dollars) Like Games Our Play Industary AverageAccounts receivable 2,700 3,900 3,850Net fixed assets 55,000 80,000 216,750Total assets 95,000 125,000 234,6001. A ____ days of sales outstanding represents an efficient credit and collection policy. between the two companies ____ is collecting cash from its customers faster than ____ but both companies are collecting their receivables less quickly than the industry average. 2. Our Play's fixed assets turnover ratio is ___ than that of Like Games. This could be because our play is relatively new company, so the acquisition cost of its fixed assets is ____ than the recorded cost of Like Games's fixed assets. 3. Like Games's total assets turnover ratio is ____ which is ___ than the industry's average total assets turnover ratio. In general, a higher total assets turnover ratio indicates greater efficiency.

Answers

Answer:

Asset Management Ratios

Part A:

1. Inventory turnover:

= d. 4.75 x

2. Based on this information, the true statement for Graham Pharmaceuticals is:

B. Graham Pharmaceuticals is holding more inventory per dollar of sales compared to the industry average.

Part B:

1. A __Average__ days of sales outstanding represents an efficient credit and collection policy.  Between the two companies _Like Games__ is collecting cash from its customers faster than _Our Play_ but both companies are collecting their receivables less quickly than the industry average.

2. Our Play's fixed assets turnover ratio is _lower__ than that of Like Games. This could be because Our Play is relatively new company, so the acquisition cost of its fixed assets is _higher___ than the recorded cost of Like Games's fixed assets.

3. Like Games's total assets turnover ratio is _1.05x_ which is _higher_ than the industry's average total assets turnover ratio. In general, a higher total assets turnover ratio indicates greater efficiency.

Explanation:

a) Data and Calculations:

Graham Pharmaceuticals

Quick ratio = 2.00x

Cash = $31,500

Accounts receivable = $17,500

Inventory = x

Total current assets = $70,000

Total current liabilities = $24,500

Quick assets = $24,500 * 2 = $49,000 ($31,500 + $17,500)

Inventory (x) = $21,000 ($70,000 - $49,000)

Annual sales = $100,000

Inventory Turnover = $100,000/$21,000 = 4.76x

Part B:

                                      Like Games   Our Play    Industry Average

Accounts receivable             2,700         3,900           3,850

Net fixed assets                 55,000       80,000       216,750

Total assets                        95,000     125,000      234,600

Sales revenue                   100,000     100,000     100,000

Days Sales Outstanding      9.9 days   14.2 days      14x

Accounts receivable turnover 37x       25.6x          26x

Average Collection Period    9.9 days   14.3 days    14x

Fixed assets turnover ratio  1.82x        1.25x          0.46x

Total assets turnover ratio   1.05x        0.8x           0.43x

Average days of sales outstanding = Average Accounts Receivable/Sales * 365

Accounts receivable turnover = Net Sales/Average Receivable

Average Collection Period = 365/Accounts receivable turnover

Fixed assets turnover ratio = Net Sales/Net Fixed Assets

Total assets turnover ratio = Net Sales/Total assets

It doesn't surprise you at all that Alex is a bit confused by what these activities mean. You explain the following: Cash flows from operations are cash inflows and outflows caused by the restaurant's main business -- selling food and beverages and catering. Cash flows from investing are payments made to acquire long-term assets or cash received from the sale of long-term assets. Cash flows from financing reflect changes in debt, loans, or dividends. You're still getting a blank look from Alex, so you give him a series of examples to help him understand the different categories. Consider each of the following items and determine whether it affects cash flows from operating, investing, or financing, and whether it is a cash inflow or a cash outflow. Then drag and drop that item into the correct bucket and click Submit. 1. The restaurant buys a new 10-burner range and convection oven. 2. You pay off the mortgage on the building. 3. You obtain a short-term loan from the bank. 4. You pay the supplier for a shipment of meat. 5. You sell a used walk-in cooler. 6. A company pays for its catering bill by giving you a check. 7. You send in your quarterly estimated income tax payment. 8. The restaurant buys a new delivery truck to be used in its growing catering business. 9. You incorporate the restaurant and sell shares of stock. 10. You purchase the building next door to the restaurant so you can add more seating area for customers.A. Cash Inflow from Operations B. Cash Outflow from OperationsC. Cash Inflow from InvestingD. Cash Outflow from InvestingE. Cash Inflow from FinancingF. Cash Outflow from Financing

Answers

Answer:

Statement of Cash Flows Activities

1. Investing activity:    D. Cash Outflow from Investing

2. Financing activity:  F. Cash Outflow from Financing

3. Financing activity:  E. Cash Inflow from Financing

4. Operating activity:  B. Cash Outflow from Operations

5. Investing activity:    C. Cash Inflow from Investing

6. Operating activity:  A. Cash Inflow from Operations

7. Operating activity:  B. Cash Outflow from Operations

8. Investing activity:    D. Cash Outflow from Investing

9. Financing activity:   E. Cash Inflow from Financing

10. Investing activity:   D. Cash Outflow from Investing

Explanation:

a) Data and Options:

A. Cash Inflow from Operations

B. Cash Outflow from Operations

C. Cash Inflow from Investing

D. Cash Outflow from Investing

E. Cash Inflow from Financing

F. Cash Outflow from Financing

All the terms are already explained in the scenario.

On June 3, Novak Company sold to Chester Company merchandise having a sale price of $3,100 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $99, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company.Prepare journal entries on the Sage Company books to record all the events noted above under each of the following bases.
(1) Sales and receivables are entered at gross selling price.
(2) Sales and receivables are entered at net of cash discounts.
(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No.
Date Account Titles and Explanation Debit Credit
(1)
June 3June 12
June 12
(2)
June 3June 12 June 3June 12
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
July 29
SHOW LIST OF ACCOUNTS
LINK TO TEXT

Answers

Answer:

(a) Date       Account Titles & Explanation                       Debit    Credit                

1.  Jun-03     Accounts Receivable-Chester Company    $3,100

                           Sales                                                                     $3,100

                    (To record sales)

Jun-12           Cash                                                              $3,038

                     Sales Discounts                                            $62

                     (3,100*2%)

                              Accounts ReceivableChester Company          $3,100

                     (To record payment received)

2.  Jun-03    Accounts Receivable-Chester Company     $3,038

                     ($3,100*0.98)

                            Sales                                                                     $3,038

                     (To record sales)

Jun-12            Cash                                                           $3,038

                            Accounts Receivable-Chester Company           $3,038

                     (To record payment received)

(b) Date       Account Titles & Explanation                       Debit    Credit  

    Jul-29      Cash                                                               $3,100

                             Accounts Receivable—Chester Company         $3,038

                             Sales Discounts Forfeited                                    $62

                     (To record payment received)

rationing a product by coupons when recipients are allowed to sell them will cause

Answers

the answer is ...a market for coupons to develop

Rationing a product by coupons when recipients are allowed to sell them will cause

a) the price to rise and the revenues to flow to producers of the product
b) greater congestion problems in the marketplace
c) a market for coupons to develop
d) the price of the product to be held constant at the control price
e) all of the above
c) a market for coupons to develop

I tell you that if you rake all the leaves in my yard, I will show up to Business Law class next week. You immediately come over and start raking the leaves. Halfway through the job you decide to leave to do some extra Business Law reading for fun. I run after you and say, "you didn’t finish, I will sue you for this!" Your best defense is:

Answers

Answer: d. There was no valid consideration

Explanation:

Valid consideration is a clause in contract law that states that the contract cannot be valid if both sides did not make a promise to fulfil some duty to each other.

You made a promise that you would come to Business Law class if I raked the yard, however, I never made a promise that I would rake the yard if you came to class. There was therefore no valid consideration.

In a Lindahl equilibrium: Group of answer choices no one could be made better off by reducing his or her tax burden, all things equal. most but not all individuals are happy to pay their taxes to receive the benefits. the government must subsidize the project by using nontax financing schemes. everyone is willing to pay the taxes to receive the benefits.

Answers

Answer:

everyone is willing to pay the taxes to receive the benefits.

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

The different types of tax include the following;

1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.

2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.

3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.

A Lindahl equilibrium can be defined as an economic state in which there is a production of an optimal quantity of public goods and the cost of these goods is shared in a fair manner among everybody. It was developed by Erik Lindahl.

In a Lindahl equilibrium everyone is willing to pay the taxes to receive the benefits.

Explain with examples, the process of screening and evaluating new venture opportunities.

Answers

Self-Analysis
According to the Arkansas Small Business Development Center, most small businesses fail because of poor management and the owner’s inability to manage resources. Before you even start researching the feasibility of your idea and the market you plan on entering, evaluate your own talents, desires and goals. Consider your willingness to take risks as well as the amount of time and energy you’ll need to make the business a success. Review your financial, personnel and marketing skills as well to ensure you have the necessary background to make a success of your new venture.

Financial Components
After learning about the investment required to purchase the existing business or franchise or the start-up costs you’ll need initially, evaluate your own resources. Part of a financial assessment includes the amount you have in personal savings to add to the initial investment. Banks typically require entrepreneurs to come up with a portion of the investment to show good faith and willingness to take a risk with the lender. Assess the financing available through the seller, investors and lenders when evaluating your chances of succeeding.

Market Research
To thoroughly understand what you’re getting into, perform an extensive market research project to determine the feasibility of your business. In addition to gleaning statistics of trends and current customer buying patterns, you need to know who your customers are, where they are located and what kind of competition exists in your area. Consider market research your first steps in opportunity analysis that help you understand exactly how you will sell products or services to a specific market.

Support
Finally, evaluate the amount of support you expect to receive from your family and the community.

WalkLikeYou, Corp. is a specialty athletic shoe manufacturer which uses a job order costing system. The following information below is given for WalkLikeYou:
As of January 31 As of February 28
Inventory account balances:
Raw materials inventory $42,000 $30,000
Work in process inventory $9,200 $20,600
Finished goods $56,000 $33,500
Additional information for the month ended February 28:
Raw materials purchased $198,000
Factory payroll $150,000
Actual factory overhead costs:
Indirect materials $15,000
Indirect labor $34,500
Other overhead costs $13,500
Sales $1,100,000
Predetermined overhead rate (based on direct labor costs) = 55% of DL costs
Compute the following amounts for the month of February. You must show all of your work, either using formulas or using T-accounts.
a. Cost of direct materials used.
b. Total manufacturing costs.
c. Cost of goods manufactured.
d. Cost of goods sold.(ignore effects of underapplied / overapplied overhead)
e. Gross profit.
f. Overapplied or underapplied overhead.

Answers

Answer:

a.  $195,000

b.  $423,525

c.  $412,125

d.  $434,625

e.  $665,375

f.   $525 over-applied

Explanation:

a. Cost of direct materials used.

Cost of direct materials used = Opening Materials Inventory + Materials Purchase - Ending Materials Inventory - Indirect materials

                    = $42,000 + $198,000 - $30,000 - $15,000

                    = $195,000

b. Total manufacturing costs.

Total manufacturing costs = Variable Manufacturing Costs + Fixed Manufacturing Costs

Total manufacturing costs calculation

Direct materials                                                         $195,000

Direct Labor ($150,000 - $34,500)                          $115,500

Indirect materials                                                        $15,000

Indirect labor                                                              $34,500

Other overhead costs - applied ($115,500 x 55%)  $63,525

Total Cost                                                                 $423,525

c. Cost of goods manufactured.

Cost of goods manufactured = Opening Work In Process + Total manufacturing costs - Closing Work In Process

                                                = $9,200 + $423,525 - $20,600

                                                = $412,125

d. Cost of goods sold.

Cost of goods sold = Opening Finished Goods Inventory + Cost of goods manufactured - Closing Finished Goods Inventory

                                = $56,000 + $412,125 -  $33,500

                                = $434,625

e. Gross profit.

Gross profit = Sales - Cost of goods sold

                    = $1,100,000 - $434,625

                    = $665,375

f. Overapplied or underapplied overhead

If Actual Overheads > Applied Overheads, we have under-applied overheads

and

If Applied Overheads > Actual Overheads, we have over-applied overheads

where,

Actual Overheads =  $15,000 + $34,500 + $13,500 = $63,000

Applied Overheads = $63,525

Over-applied overheads = Applied Overheads - Actual Overheads

                                         = $63,525 - $63,000

                                         = $525

a monopolist makes self cleaning jackets. at a price of $100 each it can sell 20 jackets. At a price of $98 each it can sell 21 jackets. When charging $98 per jacket total venue is

Answers

Answer:

Explanation:

100*20=2000

98*21=2058

58

less than the price

Implying Bad News (L.O. 3) YOUR TASK Revise the following statements to imply the bad news. If possible, use passive-voice verbs and subordi-nate clauses to further de-emphasize the bad news. DIRECT REFUSAL: We cannot send you a price list, nor can we sell our lawn mowers directly to customers. We sell only through authorized dealers, and your dealer is HomeCo. IMPLIED REFUSAL: Our lawn mowers are sold only through authorized dealers, and your dealer is HomeCo.
a. We are sorry to tell you that we cannot ship our hand-dipped chocolate-covered fresh strawberries c.o.d. Your order was not accompanied by payment, so we are not shipping it. We have it ready, though, and will rush it to its destination as soon as you call us with your credit card number.
b. Unfortunately, we find it impossible to contribute to your excellent and worthwhile fund-raising campaign this year. At present all the funds of our organization are needed to lease equipment and offices for our new branch in Scottsdale. We hope to be able to support this commendable endeavor in the future.
c. Because of the holiday period, all our billboard space was used this month. Therefore, we are sorry to say that we could not give your charitable group free display space. However, next month, after the holidays, we hope to display your message as we promised.

Answers

Answer:

Implying Bad News

Direct Refusal     Implied Refusal

a.                         Our hand-dipped chocolate-covered fresh strawberries  

                           are prepaid before delivery.

b.                        Our contribution to your fundraising campaign will not be

                          forthcoming this year.

c.                        Our billboard space was used up this month.  We shall

                          display your message from next month.

Explanation:

Implied refusal or bad news is a manner of indirectly presenting information such that the refusal or bad news is not explicitly stated.  This implies that the message is coded by the sender to lessen the bad effect on the recipient.  It is only left for a discerning recipient to untangle the truth behind the message.

Identify which of the following statements is true. Group of answer choices All of the above are false. If a C corporation does not distribute its income to its shareholders annually, double taxation cannot occur. C corporation operating losses are deductible by the individual shareholders. Capital losses incurred by a C corporation can be used to offset the corporation's ordinary income.

Answers

Answer:

All of these are false

Explanation:

The c corporation is a corporation that is entered if the investors or shareholders are large. That is they exceed 100. The investors or shareholders pay taxes on dividends. They are subjected to what is called double taxation and are taxed separately from the owners. The obligations of the corporation are not personal to any individual and liability of the owners, workers or shareholders are limited

Why would it be economically efficient to require a natural monopoly LOADING... to charge a price equal to marginal​ cost? A. Economic efficiency requires natural monopolies to earn zero economic profits. B. Economic efficiency requires the total benefit of producing a good to equal the total cost of producing it. C. Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers equal to the average cost of producing it. D. Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers greater than the additional cost of producing it. E. Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers equal to the additional cost of producing it.

Answers

Answer:

Option C is the correct Option.

Explanation:

First of all, let me clear it to you that, it is a multiple choice question with 5 options in it.

Question Statement:

Why would it be economically efficient to require a natural monopoly to charge a price equal to marginal​ cost?

Solution:

The correct answer to this question is option C .

Option C = Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers equal to the average cost of producing it

Reasoning:

The marginal value of the last unit of output delivered to consumers is equal to the marginal cost of production. The overall welfare surplus is maximized, including both user and producer surpluses. There is no loss of dead weight.

Pension data for Coda Corporation included the following for the current calendar year: Service cost $ 112,000 PBO, January 1 810,000 Plan assets, January 1 860,000 Amortization of prior service cost 6,600 Amortization of net loss 2,600 Discount rate, 8% Expected return on plan assets, 10% Actual return on plan assets, 12% Required: Determine pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.)

Answers

Answer:

Pension expense   $100,000

Explanation:

The computation of the pension expense for the year is shown below:

Service cost   $112,000

Interest cost $64,800 ($810,000 × 8%)  

Amortization of prior service cost $6,600

Amortization of net loss $2,600

Less: Expected return on plan assets -$86,000  ($860,000 × 10%)

Pension expense   $100,000

Returns on ABC, Inc. are forecast to be the following: State Probability Return Boom 0.25 30% Normal 0.65 15% Bust 0.10 -14% What is the standard deviation of this company’s stock? Returns on ABC, Inc. are forecast to be the following: State Probability Return Boom 0.25 30% Normal 0.65 15% Bust 0.10 -14% What is the standard deviation of this company’s stock? 11.82% 11.56% 11.32% 11.07% 10.83%

Answers

Answer:

Standard deviation=11.82%

Explanation:

Standard deviation is measure of the total risks of an investment. It measures the volatility in return of an investment as a result of both systematic and non-systematic risks. Non-systematic risk includes risk that are unique to a company like poor management, legal suit against the company .

Standard deviation is the sum of the squared deviation of the individual return from the mean return under different scenarios

Expected return (r) = (30% × 0.25 ) + (15% × 0.65) + (-14%× 0.10)=15.8%

Outcome (R- r )^2 × P

Boom      (30%-15.8)^2× 0.25 = 50.05

Normal    (15%-15.8)^2×0.65 =   0.47

Bust       ( 13.6%- 15.8)^2 ×0.1=    89.10

                                                    139.63

Standard deviation =√139.63= 11.82%

Standard deviation=11.82%

Ratchet Manufacturing anticipates total sales for August, September, and October of $370,000, $295,000, and $305,500 respectively. Cash sales are normally 25% of total sales and the remaining sales are on credit. All credit sales are collected in the first month after the sale. Compute the amount of cash received for September.Multiple Choice$498,750.$351,250.$166,250.$277,500.$221,250.

Answers

Answer:

$351,250

Explanation:

Computation for the amount of cash received for September

September cash sales $73,750

(25% × $295,000)

August credit sales $277,500

(75% × $370,000)

Cash collected in September $351,250

($73,750+$277,500)

Therefore the amount of cash received for September will be $351,250

Pension data for David Emerson Enterprises include the following:
($ in millions)
Discount rate, 10%
Projected benefit obligation, January 1 $320
Projected benefit obligation, December 31 500
Accumulated benefit obligation, January 1 335
Accumulated benefit obligation, December 31 450
Cash contributions to pension fund, December 31 185
Benefit payments to retirees, December 31 61
Required:
Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.

Answers

Answer:

$209

Explanation:

Calculation to determine the service cost component of pension expense for the year ended December 31

Projected benefit obligation, December 31 500

Add Benefit payments to retirees, December 31 $61

Less Interest cost ($32)

(10%$320)

Less Projected benefit obligation, January 1 ($320)

Service cost $209

($500+$61-$32-$320)

Therefore the service cost component of pension expense for the year ended December 31 will be $209

On January 1, 2020 Roberts acquires 100% of Smith by issuing 100,000 shares (par value $2, fair value $10). Smith will remain as a wholly owned subsidiary of Roberts. At acquisition date, Smith had a book value of assets of $800,000 and a book value of liabilities of $200,000. Included in the assets Smith had land with a book value of $400,000 and a fair value of $330,000. Included in the liabilities, Smith had a Note Payable with a book value of $120,000 and a fair value of $80,000. What is the amount of goodwill or gain on bargain purchase at January 1, 2020.

Answers

Answer:

$430,000

Explanation:

The excess of Purchase Price over the Net Assets taken over is known as Goodwill.

Acquisition of Assets and Liabilities of a subsidiary are made at their Acquisition date Fair Value amounts.

Assets Fair Value

Book Value                                       $800,000

Adjust Land Revalued                      ($70,000)

Assets fair value                               $730,000

Liabilities Fair Value

Book Value                                      $200,000

Adjust Note Payable Revalued       ($40,000)

Liabilities fair value                          $160,000

Now,

Net Assets Acquired = $730,000 -  $160,000 = $570,000

Purchase Price = 100,000 x $10 = $1,000,000

Goodwill = $430,000

Therefore,

the amount of goodwill or gain on bargain purchase at January 1, 2020 is $430,000

somebody help pls name two business ethics that the Snack Corner failed to adhere to.​

Answers

Answer:

create a news report paragraph by using active and passive verb forms fictional or real about an environmental event about earthquakes select a location city or country

Explanation:

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Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $420,000 per year for 25 years beginning today, or receiving one lump-sum amount today. Mary Alice can earn 6% investing this money. At what lump-sum payment amount would she be indifferent between the two alternatives

Answers

Answer:

The lum-sum must equal $5,369,009.59

Explanation:

Giving the following information:

First option:

Annual payment= $420,000

Number of periods= 25 years

Interest rate= 6%

First, we need to calculate the future value of the first option using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {420,000*[(1.06^25) - 1]} / 0.06

FV= $23,043,095.04

Now, to determine the lump-sum to receive today, we need to determine the present worth of the annuity:

PV= FV / (1 + i)^n

PV= 23,043,095.04 / (1.06^25)

PV= $5,369,009.59

(4) Asset A has an expected return of 15% and a Sharpe ratio of .4. Asset B has an expected return of 20% and a Sharpe ratio of .3. A rational risk-averse investor would prefer a portfolio using the risk-free asset and ______. A. asset A B. asset B C. no risky asset D. not enough information to determine the answer

Answers

Answer: A. Asset A

Explanation:

The Sharpe ratio is used to adjust the return earned on an asset based on its risk. This allows investors to know the returns they are getting for risk being taken.

A higher Sharpe ratio is preferred to a lower one as it shows that more returns are being received per risk taken. A rational risk averse investor would therefore pick Asset A because they would be getting more return for the risk they take regardless of how little this risk is.

Short Answer: A marketing specialist needed to find a new way of marketing the company's main product to its potential clients. While watching a movie one evening, the marketing specialist saw a scene that gave her some novel thoughts for a new marketing plan. According to the creative process model, which is the stage in the creative process, which is the stage before this, and which is the stage after this

Answers

Answer: The stage in the creative process is the evaluation stage.

The stage before this is the Illumination stage.

The stage after this is the verification stage.

Explanation:

The creative process is simply about how ideas evolve to its final stage through through the way we think and our actions. For one to do this, the individual must possess problem-solving skills and be able to think critically. The stages involved are:

1. Preparation

2. Incubation

3. Illumination

4. Evaluation

5. Verification.

Based on the question, the marketing specialist is in the evaluation stage.

The stage before this is the Illumination stage and the stage after this is the verification stage.

In the illumination stage, new connections are being formed and the individual gets answer to his or her creative quest.

The verification stage is the final stage and this is when the creative process becomes a reality and the idea is then shared.

Select the correct answer.
Which of these trainings does the hospitality certification provide?
OA. ensures the safety of the food served
OB. safely serve alcohol to other individuals
OC. food has been produced and handled according to the recognized standards
OD. create the ultimate experience

Answers

Answer:

I think its all of the above or D

Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 5,700 65% Conversion costs $ 6,800 45% A total of 6,500 units were started and 5,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 125,500 Conversion costs $ 207,000 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round your intermediate calculations to 3 decimal places.)

Answers

Answer:

Annenbaum Corporation

The total cost transferred from the first processing department to the next processing department during the month is closest to:

= $322,022.

Explanation:

a) Data and Calculations:

Units in Beginning WIP Inventory  400

Units started in the period         6,500

Units transferred out                  5,900

Units in Ending WIP Inventory    1,000

                                        Materials costs    Conversion costs

Beginning WIP Inventory      $ 5,700 (65%)      $ 6,800 (45%)

Costs added during month 125,500                207,000

Total costs of production   $131,200               $213,000

Equivalent units:              Materials            Conversion

Units transferred out        5,900                   5,900 (100%)

Ending WIP Inventory          500 (50%)            350  (35%)

Total equivalent units      6,400                    6,250

Cost per equivalent units:  Materials            Conversion

Total costs of production   $131,200               $213,000

Total equivalent units           6,400                     6,250

Cost per equivalent unit       $20.50                 $34.08

Cost assigned to:

                                        Materials costs         Conversion costs   Total

Units transferred out        $120,950                  $201,072            $322,022

                                       ($20.5*5,900)         ($34.08**5,900)

Ending WIP Inventory         $10,250                    $11,928                $22,178

                                       ($20.5*500)              ($34.08**350)

Samuelson Electronics has a required payback period of 4 years for all of its projects. Currently, the firm is analyzing two independent projects. Project A has an expected payback period of 3.1 years and a net present value of $42,000. Project B has an expected payback period of 4.1 years with a net present value of $2,640. Which project(s) should be accepted based on the payback decision rule?

Answers

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The following is a list of account titles and amounts (dollars in millions) from a recent annual report of Calvin, Inc., a leading manufacturer of games, toys, and interactive entertainment software for children and families:

Buildings and improvements $195
Prepaid expenses and other current assets 165
Allowance for doubtful accounts 39
Other noncurrent assets 210
Accumulated amortization (other intangibles) 819
Cash and cash equivalents 636
Goodwill 469
Machinery, equipment, and software 418
Accumulated depreciation 417
Inventories 300
Tools, dies, and molds 71
Other intangibles 1,359
Land and improvements 15
Accounts receivable 641

Required:
Prepare the asset section of the balance sheet for Calvin, Inc., classifying the assets into Current Assets, Property, Plant, and Equipment (net), and Other Assets.

Answers

Answer:

ASSETS

NON -CURRENT ASSETS

Buildings and improvements                              195

Land and improvements                                       15

Other intangibles                                              1,359

Machinery, equipment, and software                418

Tools, dies, and molds                                          71

Accumulated depreciation                               (417)

Goodwill                                                              469

Accumulated amortization (other intangibles) (819)

TOTAL NON -CURRENT ASSETS                    1,291

CURRENT ASSETS

Inventories 300

Prepaid expenses and other current assets   165

Allowance for doubtful accounts                     (39)

Accounts receivable                                          641

Other noncurrent assets                                   210

Cash and cash equivalents                              636

TOTAL CURRENT ASSETS                             1,613

TOTAL ASSETS                                             2,904

Explanation:

Non-current assets are assets of a long term nature ,exceeding period of 12 months.

Current assets are assets of a short term nature, not exceeding a period of 12 months.

A prospective employer reviews an applicant's work history and personal references. In
addition, he or she may review the applicant's credit report. Why would an employer be
interested in the credit report of a job applicant when making hiring decisions?

Answers

Answer: Responsibility check.

Explanation:

A person's credit report can sometimes tell an employer what they need to know about how the prospective employee can handle responsibility because it shows how the person handles their financial obligations.

For instance, a person who's report shows is in financial distress will not be considered very responsible as opposed to some whose credit report is in good shape. To put it in perspective, would a bank like to hire a teller in financial distress? Chances are very negative for that.

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