Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure getaways in the desert for tourists. The following information is available for several months of the current year:
Month Sales Purchases Cash Expenses Paid
May $96,000 $70,000 $19,000
June 121,000 87,000 24,000
July 133,000 117,000 33,500
August 127,000 72,000 33,600
The majority of Martin's sales (65 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 40 percent are collected in the month of sale and 60 percent are collected in the following month. All of Martin's purchases are on account with 55 percent paid in the month of purchase and 45 percent paid the following month.
Required:
1. Determine budgeted cash collections for July and August.
2. Determine budgeted cash payments for July and August.
Answer:
Martin Clothing company
July August
1. Budgeted cash collections $130,480 $128,260
2. Budgeted cash payments $137,000 $125,850
Explanation:
a) Data and Calculations:
Month Sales Purchases Cash Expenses Paid
May $96,000 $70,000 $19,000
June 121,000 87,000 24,000
July 133,000 117,000 33,500
August 127,000 72,000 33,600
May June July August
Sales $96,000 $121,000 $133,000 $127,000
Purchases 70,000 87,000 117,000 72,000
Expense 19,000 24,000 33,500 33,600
Cash Collections:
May June July August
Sales $96,000 $121,000 $133,000 $127,000
Collections:
65% cash $62,400 $78,650 $86,450 $82,550
14% month 13,440 16,940 18,620 17,780
21% following 20,160 25,410 27,930
Total collections for July and August $130,480 $128,260
Cash payments:
May June July August
Purchases 70,000 87,000 117,000 72,000
55% $38,500 $47,850 $64,350 $39,600
45% 31,500 39,150 52,650
Expense 19,000 24,000 33,500 33,600
Payments for July and August $137,000 $125,850
Tickets Today contracts with the producer of Riverdance to sell tickets online. Tickets Today charges each customer a fee of $6 per ticket and receives $15 per ticket from the producer. Tickets Today does not take control of the ticket inventory. Average ticket price for the event is $150. How much revenue should Tickets Today recognize for each Riverdance ticket sold?
a. $6 because the $15 from the producer is similar to a negative cost of goods sold
b. $150 because the $135 is cost of goods sold paid to the Riverdance producer
c. $21 because both the fee from the customer and the producer are earned
d. $156 because the $135 is cost of goods sold paid to the Riverdance producer
e. None of the above
Albert owns 100 acres of land on which he grows spruce trees. His adjusted basis for the land is $89,600. He receives condemnation proceeds of $8,960 when the city's new beltway takes 5 acres along the eastern boundary of his property. He also receives a severance award of $5,376 associated with the possible harmful effects of exhaust fumes on his trees. Albert invests the $14,336 in a growth mutual fund.
Required:
a. Determine the tax consequences to Albert of the condemnation proceeds.
b. Determine the tax consequences to Albert of the severance award.
Answer:
A. Albert has a $4,480 realized gain of which $4,480 is recognized.
B. Adjusted basis $79,744
Explanation:
a. Calculation to determine the tax consequences to Albert of the condemnation proceeds.
Based on the information given Albert has a REALIZED GAIN of the amount of $4,480 of which the amount of $4,480 is RECOGNIZED, calculated as:
=$8,960 - [(5 acres / 100 acres) x $89,600)]
=$8,960 -$4,480
=$4,480
Therefore the tax consequences to Albert of the condemnation proceeds will be $4,480 realized gain of which $4,480 is recognized.
B. Calculation to Determine the tax consequences to Albert of the severance award.
Based on the information the SEVERANCE AWARD tend to decrease Albert's basis of remaining property which therefore means that His ADJUSTED BASIS in the remaining property will be calculated as:
Adjusted basis=($89,600 - $4,480)- $5,376
Adjusted basis=$85,120-$5,376
Adjusted basis=$79,744
Therefore The the tax consequences to Albert of the severance award will be Adjusted basis of $79,744
Nancy and Joan bought a small farm for $300,000 under an installment land contract with a $50,000 down payment. They will pay interest only at 6% for five years when the remaining principal balance becomes due. How much interest will they pay over the life of the contract?
Answer:
75,000
Explanation:
300,000-50,000 = 250000*6%*5
Beginning inventory, purchases, and sales for WCS12 are as follows:
Oct. 1 Inventory 300 units at $9
13 Sale 180 units
22 Purchase 380 units at $11
29 Sale 400 units
a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places.
$ per unit
b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal places.
$
c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places.
$
Answer:
WCS12
a. Assuming a perpetual inventory system and using the weighted average method, the weighted-average unit cost after the October 22 Purchase is:
= $10.52.
b. Assuming a perpetual inventory system and using the weighted average method, the cost of goods sold on October 29 is:
= $4,208.
c. Assuming a perpetual inventory system and using the weighted average method, the inventory on October 31 is:
= $1,052.
Explanation:
a) Data and Calculations:
Date Description Units Unit Cost Total Cost
Oct. 1 Inventory 300 $9 $2,700
Oct. 13 Sale (180)
Oct. 22 Purchase 380 $11 4,180
Oct. 29 Sale (400)
Weighted-average unit cost after the October 22 Purchase:
Date Description Units Unit Cost Total Cost
Oct. 1 Inventory 120 $9 $1,080
Oct. 22 Purchase 380 $11 4,180
Total inventory and cost 500 $5,260
Unit cost = $10.52 ($5,260/500)
Cost of goods sold on October 29 = $4,208 (400 * $10.52)
Ending inventory = $1,052 (100 * $10.52)
On December 1, Spencer Department Store borrowed $19,250 from First Bank and Trust. Spencer signed a 90-day note with a face amount of $20,000. The interest rate stated on the face of the note is 15 percent per year.
Required:
a. Provide the journal entry recorded by Spencer on December 1.
b. Provide the adjusting entry recorded by Spencer on December 31 before financial statements are prepared.
Answer:
A. Dr Cash $19,250
Dr Discount on notes payable $750
Cr Notes Payable $20,000
B. Dr Adjusting entries:Interest expense $250
Cr Discount on notes payable $250
Explanation:
A.Preparation of the journal entry recorded by Spencer on December 1.
Dr Cash $19,250
Dr Discount on notes payable $750
($20,000-$19,250)
Cr Notes Payable $20,000
(Being a journal entry to recognize short-term note payable issued)
b. Preparation of the adjusting entry recorded by Spencer on December 31 before financial statements are prepared. Show
Since the nterest for three months is the amount of $750 which means that the Per month interest amount will be calculated as : $750/3 = $250
Dr Adjusting entries:Interest expense $250
Cr Discount on notes payable $250
pormula sa pagsukat ng
“Pamamaraan batay sa gastos”
“Pamamaraan batay sa kita”
Pamamaraan batay sa pinagmulang industriya”
Tatlong Pamamaraan ng Pagsukat ng Pambansang Kita o Gross National Income
Pamamaraan Batay sa Gastos (Expenditure Approach)
Pamamaraan Batay sa Gastos (Expenditure Approach) Ang ekonomiya ng bansa ay may apat na sektor ito ay ang sambahayan, pamahalaan, bahay-kalakal, at panlabas na sektor. Ang bawat sektor na ito ay may pinagkakagastusan at ito ay ang Gastusing personal (C), Gastusin ng mga namumuhunan (I), Gastusin ng pamahalaan (G), Gastusin ng panlabas na sektor (X – M), Statistical discrepancy (SD, at Net Factor Income from Abroad (NFIFA). Ginagamit ang : GNI = C + I + G + (X – M) + SD + NFIFA bilang pormula sa pagkuwenta ng Gross National Income.
Pamamaraan Batay sa Kita (Income Approach)Ito ay mula sa mga sahod ng mga manggagawa, buwis, kita ng mga korporasyon, at iba pa.
Masusukat ang Gross Domestic Product sa pagsasamasama ng kabuuang halaga ng produksiyon; ang sektor ng industriya, agrikultura, at serbisyo ang pangunahin sa bahaging ito.
The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:
2016:
July 1 Issued $75,100,000 of 20-year, 8% callable bonds dated July 1, 2016, at a market (effective) rate of 10%, receiving cash of $62,213,861. Interest is payable semiannually on December 31 and June 30.
Oct. 1 Borrowed $440,000 by issuing a six-year, 7% installment note to Nicks Bank. The note requires annual payments of $92,310, with the first payment occurring on September 30, 2017.
Dec. 31 Accrued $7,700 of interest on the installment note. The interest is payable on the date of the next installment note payment.
31 Paid the semiannual interest on the bonds. The bond discount amortization of $322,153 is combined with the semiannual interest payment.
31 Closed the interest expense account.
2017:
June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $322,153 is combined with the semiannual interest payment.
Sept. 30 Paid the annual payment on the note, which consisted of interest of $30,800 and principal of $61,510.
Dec. 31 Accrued $6,624 of interest on the installment note. The interest is payable on the date of the next installment note payment.
31 Paid the semiannual interest on the bonds. The bond discount amortization of $322,153 is combined with the semiannual interest payment.
31 Closed the interest expense account.
2018:
June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $11,597,527 after payment of interest and amortization of discount have been recorded. (Record the redemption only.)
Sept. 30 Paid the second annual payment on the note, which consisted of interest of $26,494 and principal of $65,816.
Required:
a. Journalize the entries to record the foregoing transactions. Round all amounts to the nearest dollar. Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles.
b. Indicate the amount of the interest expense in (a) 2016 and (b) 2017.
c. Determine the carrying amount of the bonds as of December 31, 2017.
Answer:
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The trial balance afyer one month of operation for Mason;s delivery Service as of September 30 ,20 is shown below. Data to complete the adjustments are as fellows:
(a) supplies inventory as of September 30, $90
(b) Insurance expired (used) $650
(c) Depreciation on delivery equipment $600
(d) Wages earned by employees but not paid as of September 30 $350
1. Enter the adjustments in the adjustments columds of hte work sheet and comeple the work sheet
Mason's Delivery Service
Work Sheet
For Month Ended September 30, 20--
Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 1,600
Accounts Receivable 940
Supplies 635
Prepaid Insurance 1,200
Delivery Equipment 6,400
Accum. Depr. - Delivery Equip.
Accounts Payable 1,220
Wages Payable
Jill Mason, Capital 8,000
Jill Mason, Drawing 1,400
Delivery Fees 6,200
Wages Expense 1,500
Advertising Expense 460
Rent Expense 800
Supplies Expense
Telephone Expense 165
Insurance Expense
Repair Expense 230
Oil and Gas Expense 90
Depr. Exp. - Delivery Equip.
15,420 15,420
Answer:
Mason's Delivery Service
Mason's Delivery Service
Worksheet
For Month Ended September 30, 20--
Trial Balance Adjustments Adjusted Income Balance
Trial Balance Statement Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Dr. Cr.
Cash 1,600 1,600 1,600
Accounts
Receivable 940 940 940
Supplies 635 545 90 90
Prepaid
Insurance 1,200 650 550 550
Delivery
Equipment 6,400 6,400 6,400
Accum. Depr. - Delivery Equip. 600 600 600
Accounts Payable 1,220 1,220 1,220
Wages Payable 350 350 350
Jill Mason, Capital 8,000 8,000 8,000
Jill Mason,
Drawing 1,400 1,400 1,400
Delivery Fees 6,200 6,200 6,200
Wages
Expense 1,500 350 1,850 1,850
Advertising
Expense 460 460 460
Rent Exp. 800 800 800
Supplies Expense 545 545 545
Telephone
Expense 165 165 165
Insurance
Expense 650 650 650
Repair Exp 230 230 230
Oil and Gas
Expense 90 90 90
Depr. Exp. - Delivery Equip. 600 600 600
Total 15,420 15,420 2,145 2,145 16,370 16,370 5,390 6,200 = 810
10,980 10,989
Explanation:
a) Data and Calculations:
Adjustments:
a) Supplies expense $545 Supplies $545
(b) Insurance expense $650 Prepaid Insurance $650
(c) Depr. - Delivery Equip. $600 Accum. Depr. Delivery Equip. $600
(d) Wages expense $350 Wages Payable $350
Suppose Blue Hamster Manufacturing Inc, is evaluation a proposed capital budgeting project (project alpha) that will require an initial investment of $500,000. The project is expected to generate the following net cash flows:
Year Cash Flow
Year 1 $325,000
Year 2 $425,000
Year 3 $450,000
Year 4 $400,000
Blue Hamster Manufacturing Inc’s weighted average cost of the capital is 10%, and project alpha has the same risk as the firm’s average project. Based on the cash flows, what is project Alpha’s net present value (NPV)?
a. $871,690
b. $1,157,991
c. $1,182,991
d. $757,991
Answer:
d. $757,991.26
Explanation:
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
= (325,000/1.10) + (425,000/1.10^2) + (450,000/1.10^3) + (400,000/1.10^4)
= $1,257,991.25743
NPV = Present value of inflows - Present value of outflows
NPV = $1,257,991.25743 - $500,000
NPV = 757991.25743
NPV = $757,991.26
In current business publications, find examples of firms whose strategies to increase profits focus primarily on generating more revenue. Compare these cases with firms that are trying to cut costs to increase profits. In your initial post, include a summary of these firms and how the different strategies have been successful or unsuccessful.
Having a nice size profit margin is the goal for most companies. In order to make this happen there has to be a plan/strategy that is carefully thought out and implemented. You want to take your time and make sure things are done correctly and in a way that it is profitable and not detrimental to your company at the same time. One good example of this act comes from McDonalds. One McDonalds franchise in New York increased the price of their Big Mac from $5.98 to $6.28 currently to increase revenue. Prior to this there was an anual increase that took place. "The Golden Arches' pricing in the U.S. Rose 2% year over year in the first quarter, which was still less than the consumer Price Index's overall".
On the other end of the spectrum we have companies like Apple. Apple fired 1,600 full time employees from retail stores to increase their profit margin. "The retail segment reported operating income of $308 million during the second quarter of 2009 down from #334 million....". In cutting down on those full time positions they were able to increase their profits by paying less full time salaries to employees. "Revenue increase 8.7% to 8.16 Billion, which is more than 7.96 billion expected...". I do not feel that this is the best way to go about getting results. A merger of the two would be effective. Gradually increasing sales prices and not eliminating so many positions at once or merging positions even would be effective. You have to take into account that less employees mean more work for the workers that are left, which could leave them in a stressful work environment. In turn could mean customer service quality decreases drastically. Things have to be looked at on both sides of the spectrum.
Answer:
Following are the responses to these question.
Explanation:
The goal of most businesses is to achieve the optimum gross profit. Moreover, to achieve this, a well-designed plan or plan deserves to be placed in place. The management needs to ensure that things are done properly and so that they are successful at the same period and therefore do not harm the business. That fast-food giant Mcdonald's is a good example of this. One of McDonald's' franchises in York City recently increased its Big Mac sales from $5,98 to $6,28. Before all this, Macdonalds would have an annual boost.
"During first 4th quarter, the price of Eiffel Tower in the U.s. Increased two percent year on year was still less than price index"
They need businesses like Apple at another end of the continuum. Apple also fired 1,600 filled retail employees to increase its gross profit. "Operating revenue inside the second quarter of 2009 were down $308 million to $334 million...." We were able to boost their earnings by cutting such full-time jobs. "To 8.16 billion u.s. dollars, which is over 7.96 percent estimated, the economy increased by 8.7%.
It doesn't seem to be the right way of achieving performance. It'd be effective to mix the two. Gradual sale rates are an optimal option, not cutting too many roles at once or combination. It is borne in mind that a decrease in the number of jobs is much more work to left workers who can keep them in a demanding working environment. This could mean a dramatic decline in customer support efficiency. Stuff on all sides of the spectrum must be looked at.
During January, Deluxe Printing pays employee salaries of $0.83 million. Withholdings in January are $76,000 for the employee portion of FICA, $210,000 for federal and state income tax, and $40,000 for the employee portion of health insurance (payable to Blue Cross/Blue Shield). The company incurs an additional $48,000 for federal and state unemployment tax, and $20,000 for the employer portion of health insurance.
The journal entry to record employer-provided fringe benefits includes:______.
Answer:
Credit to accounts payable (blue cross/blue shield) of $20,000
Explanation:
Based on the information given we were told that the amount of $20,000 is the amount for the employer portion of health insurance which therefore means that The appropiate journal entry to record employer-provided fringe benefits includes:
CREDIT To Accounts Payable (blue cross/blue shield) of $20,000.
The following are hibiscus company cost of making and selling an item:
Description Amount per unit
Direct materials $9
Direct labor $4
Variable manufacturing overhead $2
Fixed manufacturing overhead $5
Variable selling and administrative $2
Fixed selling and administrative $8
A one-time only special order has been received for 600 units. The company has capacity to accept the oder and it would not affect regular sales. The sales price for the special order is $26 per unit. Total fixed costs would not be affected by this order. The variable selling and administrative costs would have to be incurred for this special order. The order would require an additional $3 per unit for specialized materials and a new machine that costs $2,000. What is the financial advantage or disadvantage of accepting the special order?
A. $3,600 advantage.
B $1,600 advantage.
C. $2,400 disadvantage.
D. $2,800 advantage.
Answer:
A. $3,600 advantage.
Explanation:
Calculating the financial advantage of disadvantage of special order
Increase in revenue (600*$26) $15,600
Less: Increase in direct materials (600*$9) $5,400
Less: Increase in direct labor (600*$4) $2,400
Less: Increase in variable manufacturing $1,200
overhead (600*$2)
Less: Increase in variable selling and $1,200
administrative (600*$2)
Less: Increase in cost for specialized $1,800
material (600*$3)
Financial advantage from special order $3,600
Which of the following is not true of a mass customization process strategy?
Answer:
phone
Explanation:
Patriot Company produces flak jackets for military use. The company recently adopted a standard costing system and set the following standards for materials per unit of product:
Materials (Ballistic Nylon): 8 yards
$4 per yard During the most recent month, Patriot produced 5,500 units of flak jackets. Actual materials purchased and used were 40,000 yards at the price of $4.20 per yard. Based on the information above, answer the following questions: L 5 points]
(1) What was the total material costs incurred by the company during the month (i.e, actual costs of materials)?
(2) What should be the total material costs allowed for the production during the month (i.e., standard costs of materials)?
(3) What is the total variance for materials to be reported during the month? Is it favorable (F) or unfavorable (U)? materials price and quantity (usage) variances below. Indicate whether each variance is favorable (F or unfavorable (U
(4) Using either the template (columnar) approach or the formula approach, compute direct
Answer:
Patriot Company
1. The total material costs incurred by the company during the month (actual costs of materials) = $168,000
2. The total material costs allowed for the production during the month (i.e., standard costs of materials) = $176,000
3. The total variance for materials to be reported during the month is $8,000 F.
4. The Direct material price variance is = $8,000 U
5. The Direct material quantity variance is = $16,000 F
Explanation:
a) Data and Calculations:
Standard for materials per unit:
Materials (Ballistic Nylon): 8 yards $4 per yard = $32 per unit
Production in the most recent month = 5,500 units
Actual materials purchased and used = 40,000 yards at $4.20 per yard
1. The total material costs incurred by the company during the month (actual costs of materials) = $168,000 (40,000 * $4.20)
2. The total material costs allowed for the production during the month (i.e., standard costs of materials) = $176,000 (8 * 5,500 * $4.00)
3. The total variance for materials to be reported during the month = $8,000. It is favorable (F)
4. Direct materials price variance = (Standard price - Actual price) * Actual quantity
= ($4.00 - $4.20) * 40,000
= $8,000 U
5. Direct materials quantity variance = Standard quantity - Actual quantity * Standard price
= (44,000 - 40,000) * $4
= 4,000 * $4
= $16,000 F
Presente perOW IS INTormation rerarea Orrounder company.
Retail
Cost
$148,740
1,359,000
Beginning inventory
Purchases
Markups
Markup cancellations
Markdowns
Markdown cancellations
Sales revenue
$285,000
2,148.000
96.200
16,300
31,800
4,700
2,209,000
Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, eg.
78% and final answer to O decimal places, eg. 28,987.)
Ending inventory using conventional retail inventory method
$
Answer:
Note: "The complete and organized question is attached below as picture"
Conventional Inventory Method
Particulars Cost Retail
Beginning inventory A $148,740 $285,000
Purchases $1,359,000 $2,148,000
Markups-net $79,900
Current year's addition B $1,359,000 $2,227,900
Goods available for sale C=A+B) $1,507,740 $2,512,900
Markdown-net ($27,100)
Sales ($2,209,000)
Ending inventory at retail $276,800
Cost-to-retail percentage = $1,507,740 / $2,512,900*100
Cost-to-retail percentage = 0.6 * 100
Cost-to-retail percentage = 60%
Ending inventory at cost = Ending inventory at retail * Cost-to-retail percentage
Ending inventory at cost = $276,800 * 60%
Ending inventory at cost = $166,080
Collusion occurs when:________
A) firms refuse to follow their price leaders.
B) a firm chooses a level of output to maximize its own profit.
C) there is an agreement among firms to charge the same price or otherwise not to compete.
D) two firmsʹ price and output decisions come into conflict.
Answer:
The correct answer is the option C: There is an agreement among firms to charge the same price or otherwise not to compete.
Explanation:
To begin with, the term known as "Collusion", in the field of microeconomics and business, refers to the situation where two o more firms decide to actually "work" together by keeping the same amount of quantity and the same price in the market as the most common way to do a collusion. Moreover, the major purpose of this is to increase the amount of benefits among those companies that work in the same industry and that is why they actually decide to colaborate with each other or not compete at all.
There are different ways firms maximize profits. Collusion occurs when firms get together to maximize joint profits.
Collusion is simply known as the mixing up of conspiracies or agreements among sellers so as to raise or fix prices and to lower output so as to increase profits.
It also takes place when rival firms agree to work together. Example is placing higher prices in order to get greater profits. By coming together to make profit, firms often has collision.
Learn more about Collusion from
https://brainly.com/question/1891216
Select the correct answer.
Which sentence is likely to be the opening of a goodwill message?
Answer:
B. My sincere congratulations on your promotion.
Explanation:
Goodwill is generally done at the beginning of the introduction or providing some value and hopeful information and can include a warm courteous massage of thanks hat is appropriate such as regards. For the new product, service, or any opportunity.Paul had a great job as a bank executive. Unfortunately, his bank came under scrutiny by federal regulators, and although Paul had done nothing illegal, he ended up being fired. Unfortunately for Paul, he had a number of debts. Among his assets were a house worth $250,000 on which he owed $150,000 to a bank that held a security interest; three vehicles; an expensive watch worth $5,000; and $120,000 in an Individual Retirement Account (IRA). He owed $900 per month in child support to his ex-wife Suzy and was behind on payments in the amount of $1,800. He also owed $2,000 in wages consisting of four months of back pay to Bob who took care of Paul's landscaping needs and swimming pool care. All creditors angrily demanded payment from liquidation of Paul's assets. Paul, on the other hand, claims that he needs all the above-mentioned assets and that he should not have to give up anything. Only federal bankruptcy exemptions apply to Paul's case. Which of the following is true regarding Paul's claim to his Individual Retirement Account (IRA)?
a. The IRA is entirely exempt from the claims of creditors.
b. The IRA is entirely subject to the claims of creditors.
c. The IRA is exempt up to $1,000.
d. The IRA is exempt up to $10,000.
e. The IRA is exempt up to $100,000.
Answer:
The answer is "Choice a".
Explanation:
Over a four-year period, LaKeisha Thompson purchased shares in the Oakmark I Fund. Using the following information, answer the questions that follow.
Year Investment Amount Price per share Number of share
Feb 2008 $1500 $40 37.50
Feb 2009 1500 30 50
Feb 2010 1500 34 43.60
Feb 2011 1500 42 35.71
a. At the end of four years, what is the total amount invested?
b. At the end of four years, what is the total number of shares purchased?
c. At the end of four years, what is the average cost for each share?
Answer:
LaKeisha Thompson
a. At the end of four years, the total amount invested is:
= $6,000
b. At the end of four years, the total number of shares purchased is:
= 166.81
c. At the end of four years, the average cost for each share is:
= $35.97.
Explanation:
a) Data and Calculations:
Investments in Oakmark I Fund:
Year Investment Price Number
Amount per share of share
Feb 2008 $1,500 $40 37.50
Feb 2009 1,500 30 50
Feb 2010 1,500 34 43.60
Feb 2011 1,500 42 35.71
Total $6,000 166.81
Average cost per share = $35.97 ($6,000/166.81)
Butler Corporation is considering the purchase of new equipment costing $30,000. The projected annual after-tax net income from the equipment is $1,200, after deducting $10,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows:
Periods 10 Percent
1 0.9091
2 1.7355
3 2.4869
4 3.1699
Required:
What is the net present value of the machine?
Answer:
($3,100)
Explanation:
Net cash flows each year = Projected annual after-tax net income + Depreciation
Net cash flows each year = $1,200 + $10,000
Net cash flows each year = $11,200 each year
Total value of inflows in 3 years = Net cash flows each year * Annuity factor of (10%,3 years)
Total value of inflows in 3 years = $11,200 * 2.4018
Total value of inflows in 3 years = $26,900
Net Present value = Present value of inflows - Cash outflow
Net Present value = $26,900 - $30,000
Net Present value = ($3,100)
So, tnet present value of the machine is ($3,100).
In regression analysis, the coefficient of determination:
a. Becomes smaller as the fit of the regression line improves.
b. Is used to determine the expected value of the net income based on the regression line.
c. Ranges between negative one and positive one.
d. Is used to determine the proportion of the total variation in the dependent variable (y)
Answer:
The correct answer is the option D and it is incomplete. The correct full option will be: Is used to determine the proportion of the total variation in the dependet variable (y) explained by the independent variable (x).
Explanation:
To begin with, in the statistics field the term of "regression analysis" refers to the type of method used in order to establish the existing relationship between the variables in the chart. Moreover, the "coefficient of determination" consists of a statistic used whose main purpose focus on the prediction of possible future outcomes or either the testing of a hypothesis which the scientits are working on. That is why that this last tool uses the independent variable in order to explain the proportion of the total variation of the dependent variable.
Trizcinky invested a bond with no interest and with a principal of $10,000 at maturity, 9 years from now. According to the risk of the bond it shoudl yeild 11 percent, coumpounded annually. What should be th current makret price of this bond?
Answer:
$3,909.30
Explanation:
Current Price = Principal Amount/{(1+r)^{n}}
Current Price = $10,000 / (1+11%)^9
Current Price = $10,000 / 2.5580
Current Price = $3909.304144
Current Price = $3,909.30
So, the current market price of this bond is $3,909.30.
what is the importance of linear model communication
Answer:
The linear communication model explains the process of one-way communication, whereby a sender transmits a message and a receiver absorbs it. It's a straightforward communication model that's used across businesses to assist with customer communication-driven activities such as marketing, sales and PR.
Explanation:
The Jessica Co. has the following errors on its books as of December 31, 2018. The books for 2018 have not yet been closed.
a. On January 1, 2016, a machine had been purchased for $6,500. The machine had an estimated life of five years, but it was expensed in error. Straight-line depreciation with no salvage value should have been used.
b. On January 1, 2017, the company bought a four-year insurance policy for $800 and immediately charged the full premium to expense.
Required:
Prepare journal entries to correct these errors on December 31, 2018. Ignore income taxes.
Answer and Explanation:
The journal entry is given below;
a. Machine or equipment $6,500
To Accumulated depreciation ($6,500 × 3 ÷ 5) $3,900
To Retained earnings $2,600
(being the correction of the error is recorded)
b. Prepaid insurance Dr ($800 ÷ 4 × 2 ) $400
To Retained earnings $400
(being the correction of the error is recorded)
These two entries should be recorded to correct the given errors
On October 1, 2021, Sonoma Company leased equipment from Napa Inc. in lease payable in five equal annual payments of $540,000, beginning Oct 1, 2022. Similar transactions have carried an 11% interest rate. The right-of-use asset would be recorded at:________ (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Answer:
$1,995,786
Explanation:
Calculation to determine what The right-of-use asset would be recorded at:
Using this formula
Right-of-use asset=Annual payments*PV ordinary annuity
Where,
Annual payments=$540,000
PV ordinary annuity of $1: n = 5; i = 11%=3.69590
Let plug in the formula
Right-of-use asset= $540,000 × 3.69590
Right-of-use asset = $1,995,786
Therefore The right-of-use asset would be recorded at:$1,995,786
In sampling for attributes (i.e. test of controls) the determination of sample size is a function of:___________
a. risk of assessing control risk too low
b. tolerable rate
c. estimated population deviation rate.
Answer:
b. tolerable rate
Explanation:
A sample is defined as a representative part of a population that is used in a study to replicate the characteristics of the population.
For a sample to be any good it must effectively reflect the characteristics of the population.
When sampling for attributes there are three determinants of sample size that is put into consideration:
- risk of incorrect acceptance
- tolerable rate or error
- expected error
Tolerable rate is the largest deviation or variance that can be acceptable in a sample and this reflects on reliability of specific controls.
It is the allowable deviation in population that still allows original plan to be executed
How do family environment influence moral development during adolescence?
Answer:
Explanation:
In the family environment, children come to consider their actions not only in terms of justice but also in terms of emotional needs. Children learn the value of social support from their families and develop motivations based on kindness, generosity, and empathy, rather than on only personal needs and desires.
Answer:
In the family environment, children come to consider their actions not only in terms of justice but also in terms of emotional needs. Children learn the value of social support from their families and develop motivations based on kindness, generosity, and empathy, rather than on only personal needs and desires.
Explanation:
Roy is looking to buy a new HDTV set. He knows from friends that LCD set screens reflect less light than plasma set screens, but that LCD sets are also more subject to blurring than plasma sets. This is an example of the ________ component of his attitude toward HDTVs.
A) conative.
B) objective.
C) cognitive.
D) affective.
E) situational.
Answer:
A) conative.
Explanation:
Conative behavior is a component of the attitude that we pertain or we behave at some point. The conative component or the behavior component is the way the attitude that we influence on how we behave or act. It involves the person's knowledge or belief about the attitude object.
In the context, Roy wishes to buy a HDTV set even though he knows that the screen of the LCD reflects less amount of light and it is also subjected to more of blurring the picture when compared to the plasma TVs.
Thus it show the conative component of the attitude of Roy towards HDTVs.
One of the biggest environmental factors affecting organizational structure is whether the
A) competitor's structure matches industry needs.
B) external culture clashes with intrinsic values.
C) suppliers' cultures match the company's.
D) outside environment is stable or dynamic.
E) internal environment is stable or dynamic.
Answer:
c
Explanation:
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