Answer:
C
Explanation:
the manager should not have included the names because even though they were newly appointed, individuals join and leave and the company.
The manager made a mistake including the names of the individuals assigned to the roles and responsibilities, because these individuals were newly appointed and although they have played an active role in reviewing and providing feedback on the policy people join companies at anytime and also have the choice of leaving whenever they want.
bartleby Bramble Co. uses the gross method to record sales made on credit. On July 1, 2020, it made sales of 59,000 with terms 2/10 n/30. On July 9, 2020, Bramble received full payment for the July 1 sale. Prepare the required journal entries for Bramble Co.
Answer:
Dr cash $57,820.00
Dr sales discount $1180.00
Cr accounts receivable $59,000.00
Explanation:
Since payment was made during the discount period,hence the payment received would have been net of discount of 2%.
Discount=2%*$59,000=$1180
cash received=$59,000-$1,180=$ 57,820.00
The cash would be debited to cash account and the discount would also b debited to sales discount with the full amount being being credited to accounts receivable.
Depreciation associated with a project will: Answer A. cause incremental cash flows to increase B. only affect the fixed asset account as depreciation is a sunk cost C. have no effect on incremental cash flows D. cause incremental operating cash flows to decrease
Answer: A. cause incremental cash flows to increase
Explanation:
Incremental Cashflow (ICF) is the added cash that a company gets from embarking on a project which means that this Cashflow must be independent of expenses. If ICF is positive then the company will see it's Cashflow increase if they accept the project because it will contribute to their cash flow.
ICF is calculated from the Net Income of the project but seeing as Depreciation is a non-cash expense that is removed from the Income Statement. In calculating ICF it is added back as ICF deals with actual cash and Depreciation did not cost any actual cash.
More Depreciation therefore means an increase in Incremental Cash flow when it is being calculated from Net Income.
Your parents are giving you $170 a month for 5 years while you are in college. At a 7 percent discount rate, what are these payments worth to you when you first start college
Answer:
PV= $8,586.15
Explanation:
Giving the following information:
Cash flow= $170
Number of months= 5*12= 60
Discount rate= 0.07/12= 0.00583
First, we need to calculate the future value, using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {170*[(1.00583 ^60)-1]} / 0.00583
FV= $12,169.53
Now, the present value:
PV= FV/(1+i)^n
PV= 12,169.53/(1.00583^60)
PV= $8,586.15
Ayayai Inc. presented the following data. Net income $2,680,000 Preferred stock: 48,000 shares outstanding, $100 par, 8% cumulative, not convertible 4,800,000 Common stock: Shares outstanding 1/1 729,600 Issued for cash, 5/1 273,600 Acquired treasury stock for cash, 8/1 160,800 2-for-1 stock split, 10/1
Compute earnings per share. (Round answer to 2 decimal places, e.g. $2.55.)
Answer:
$1.35 per share
Explanation:
Note: See the attached excel file for the calculation of the weighted shares outstanding.
The earnings per share can be computed as follows:
Weighted shares outstanding = 1,702,000 shares
Preferred stock dividend = 48,000 * $100 * 8% = $384,000
Net income = $2,680,000
Net income after preferred stock dividend = $2,680,000 - $384,000 = $2,296,000
Earnings per share = Net income after preferred stock dividend / Weighted shares outstanding = $2,296,000 / 1,702,000 = $1.35 per share
Greenleaf Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the cash payments journal.
June 3 Issued Check No. 380 to Skipp Corp. to buy office supplies for $615.
5 Purchased merchandise for $7,000 on credit from Buck Co., terms n/15.
20 Issued Check No. 381 for $7,000 to Buck Co. to pay for the purchase of June 5.
23 Paid salary of $8,600 to T. Bourne by issuing Check No. 382.
26 Issued Check No. 383 for $11,750 to pay off a note payable to UT Bank.
Date Ck. No Payee Account debited Cash Inventory Other Accounts
Cr. Cr. accounts payable
Dr. Dr.
Answer:
Greenleaf CompanyCash Payments Journal:Date Description Debit Credit
June 3 Office Supplies $615
Cash Account $615
To record the issue of check No. 380 to Skipp Corp for office supplies.
June 20 Accounts Payable (Buck Co.) $7,000
Cash Account $7,000
To record the issue of check No. 381 to Buck Co for inventory.
June 23 Salary (T. Bourne) $8,600
Cash Account $8,600
To record the issue of check No. 382 for salary to T. Bourne.
June 26 Note Payable (UT Bank) $11,750
Cash Account $11,750
To record the issue of check No. 383 to pay off a note payable.
Explanation:
A cash payments journal is one of the specialized journals that can be used to initiate the recording of a business transaction, especially with regard to cash payments. Like all journals, it shows the account to be debited and the one to be credited in the general ledger.
Packard Corporation transferred its 100 percent interest to State Company as part of a complete liquidation of the company. In the exchange, Packard received land with a fair market value of $380,000. Packard's basis in the State stock was $740,000. The land had a basis to State Company of $562,000. What amount of loss does State recognize in the exchange and what is Packard's basis in the land it receives
Answer:
No loss recognized by State and a basis in the land of $562,000 to Packard.
Explanation:
Given that:
Percentage amount transferred by Packard Corporation = 100%
In exchange ;
Packard received land with a fair market value of $380,000
Packard's basis in the State stock was $740,000
The land had a basis to State Company of $562,000
We are to determine What amount of loss does State recognize in the exchange and what is Packard's basis in the land it receives.
Since there is complete liquidation of the state's company.
The state will not recognize any amount of loss due to the fact that the complete liquidation is tax-deferred to Packard Corporation.
Similarly, Packard's basis in the land is equal to State's basis in the land.
Thus;
In present case, The State Company has basis of $562000; Hence; $562000 is the basis in the land for Packard's.
McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the contribution margin per composite unit
Answer:
Weighted average contribution margin= $44.29
Explanation:
Giving the following information:
Sales proportion:
Product A= 5/7= 0.714
Product Z= 2/7= 0.286
Product A sells for $75; Z sells for $95.
Variable costs for product A are $35; for Z $40.
To determine the contribution margin per composite unit, we need to use the following formula:
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)
Weighted average contribution margin= (0.714*75 + 0.286*95) - (0.714*35 + 0.286*40)
Weighted average contribution margin= 80.72 - 36.43
Weighted average contribution margin= $44.29
Review the "Types of Distribution Channels" study material. Explain why the selection of distribution channels is essential to a successful marketing strategy. Provide an example of a well-known company's distribution channels and defend their choices. In replies to peers, agree or disagree with their assessment and justify your response.
The correct answer to this open question is the following.
Although the question does not provide a specific text, we can say that the selection of distribution channels is essential to a successful marketing strategy because that is how companies deliver their products to consumers. This is of key importance due to the fact that there are numerous competitors selling the same or similar products so the company has to be precise and effective in delivering the product to match the client's expectations.
One good example of a successful company would be Underarmour. This Maryland company sells its products through direct distribution, uses intermediaries and brokers, has open many outlets where the company sells direct to the consumer, and also sells products through e-commerce portals. You can find Underarmour apparel in big chain stores, fashion stores, the internet, and sports stores.
At the beginning of its current fiscal year, Willie Corp.’s balance sheet showed assets of $13,400 and liabilities of $5,200. During the year, liabilities decreased by $1,400. Net income for the year was $2,850, and net assets at the end of the year were $8,950. There were no changes in paid-in capital during the year. Required: Calculate the dividends, if any, declared during the year.
Answer:
Willie Corp.
Calculation of dividends during the year:
Dividends = $5,900 ($14,850 - $8,950)
The difference between the accounting equation of Assets = Liabilities + Equity
Explanation:
Past Fiscal Year:
Assets = $13,400
Liabilities = $5,200
Equity = $8,200 ($13,400 - 5,200)
Current Fiscal Year:
Assets = $8,950
Liabilities = $3,800 ($5,200 - 1,400)
Equity = $8,200
Net Income = $2,850
Total Liabilities + Equity + Net Income = $14,850
Dividends paid = $5,900 ($14,850 - $8,950)
The solution is in the accounting equation, which states that Assets are equal to the Liabilities plus the Equity. Any difference must therefore be an increase in equity (Retained Earnings) or a decrease (Net Loss or Dividends). What reduces equity is the dividends paid out to stockholders or the loss incurred during the period. Since there was a net income of $2,850, there was no loss, therefore, equity reduces as a result of dividends.
Rodgers Inc. is imports paper from Shanghai China. In a typical transaction Rodgers receives a delivery of paper from the Chinese Company and pays the company in Yuan. In all transactions, the amounts and payments are set today, but all deliveries, payments, and revenues come 90 days later. How can Rodgers hedge its foreign currency risk
Answer:
Rodgers can hedge its foreign risk by using a Contract to buy Yuan in the futures market today at an agreed upon price in 90 days.
Explanation:
Solution
Since Rodgers receives a delivery of paper from the Chinese Company and pays the company in Yuan, so he has to hedge his exchange rate risk by buying or purchasing Yuan future contract for 90 days.
So, Rodgers Incorporation should make a contract to buy Yuan in the future market today at an agreed price in 90 days.
Managers spend less on prevention costs because managers are typically evaluated on a short term basis, while investments on prevention may experience long gestation periods to returns and their ROIs may be uncertain.
1. True
2. False
Managers spend less on prevention costs because managers are typically evaluated on a short-term basis, while investments in prevention may experience long gestation periods to returns and their ROIs may be uncertain. The given statement is True.
What is the cost-benefit analysis rule?When possible, cost-benefit analysis involves quantifying and monetizing the potential costs and benefits of regulation and otherwise describing them in qualitative terms.
In general, a cost-benefit analysis is based on three key indicators: the net present value (NPV), the economic rate of return (ERR), and the benefit-cost ratio. Each of these three indicators evaluates the project's viability, and when combined, they provide a realistic picture of the IPF.
Thus, the given statement is true.
Learn more about the cost-benefit analysis here:
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Based on the following information, prepare the bank reconciliation for Cougar Corp. as of December 31. A. On December 31, Cougar Corp. general ledger showed a cash balance of $26,504. The company's bank statement showed an ending balance of $24,575. B. A deposit on December 31 for $2,500 was not recorded by the bank until January 1. C. A check for $550 received from one of Cougar's customers was noted as NSF by the bank. D. A review of the company's deposits shows that a deposit entered in the company's general ledger for $5400 was actually a deposit for $4500. E. The company's checking account shows interest of $21. F. Cougar's bank statement shows an EFT received from a customer for $1,700. G. The following information related to outstanding checks was prepared.
Answer and Explanation:
The Preparation of bank reconciliation for Cougar Corp. as of December 31 is shown below:-
Cougar Corp.
Bank reconciliation
For the year ended December 31
Particulars Amount
Bank balance Dec 31 $24,575
Add: Deposit in transit $2,500
Less:
Outstanding checks #302 ($180)
Outstanding checks #303 ($95)
Outstanding checks #304 ($25) ($300)
Bank balance adjusted $26,775
Cash balance on 31 Dec $26,504
Add: EFT from customer $1,700
Add: Interest income $21 $1,721
Less: Posting error
($5,400 - $4,500) $900
Less: NSF check $500 $1,400
Book balance adjusted $26,775
Hence, the bank balance and the book balance are matched
On January 2, 2020, Bridgeport Company borrowed $174,000 from Lyon Country Bank. The terms of the loan agreement specified 4 equal annual payments at 4% annual interest. Compute the amount of each of these payments, assuming they begin on December 31, 2020.
Answer:
annual payment = $50,460
Explanation:
In order to solve this, we will use the formula for calculating simple interest on an invested amount over a period of time.
Simple interest = Principal × Rate × Time
Where:
Principal = $174,000
Rate = 4% = 4/100 = 0.04
Time = 4 years (4 annual payments)
∴ Simple interest = 174,000 × 0,04 × 4 = $27,840
Total amount to be paid = principal + interest
= 174,000 + 27,840 = $201,840
since 4 equal annual payments were made, the amount to be repaid is divided into 4. This is done as follows:
annual payments = 201,840 ÷ 4 = $50,460
During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the company's accounting records:
From the Income Statement:
Depreciation expense $860
Loss on sale of equipment 2,800
From the Balance Sheet:
Beginning equipment 20,000
Ending equipment 10,200
Beginning accumulated depreciation 1,950
Ending accumulated depreciation 1,790
No new equipment was bought during the period.
1) For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale.
2) Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities?
3) What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities?
Answer:
1) For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale.
original cost = $9,800accumulated depreciation = $1,020cash received = $5,9802) Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities?
the loss on sale of equipment ($2,800) should be added to the cash flows from operating activities.3) What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities?
the cash received ($5,980) should be added to the cash flow from investing activitiesExplanation:
equipment cost = beginning equipment - ending equipment = $20,000 - $10,200 = $9,800
equipment's accumulated depreciation = beginning accumulated depreciation + depreciation expense - ending depreciation = $1,950 + $860 - $1,790 = $1,020
book value = $9,800 - $1,020 = $8,780
cash received = book value - loss = $8,780 - $2,800 = $5,980
Felipe is an illegal immigrant seeking work in the U.S. He is hired by a small factory doing manual labor. When it is discovered that Felipe is an illegal immigrant:
a. Felipe can be deported, and the employer can be punished.
b. Felipe cannot be deported, and the employer will not be punished.
c. Felipe can be deported, and the employer will not be punished.
d. Felipe can be deported, and the employer can be punished.
Emily is considering purchasing a new home for $400,000. She intends to put 20% down and finance $320,000, but is unsure which financing option to select. Emily is considering the following options: o Option 1: Fixed rate mortgage over 30 years at 8% interest, zero points, or o Option 2: Fixed rate mortgage over 30 years at 4% interest, plus two discount points. How long would her financial planner recommend that she live in the house to break even using Option 2 presuming she is not financing the points
Answer:
The break even for Emily using Option 2 presuming she is not financing the points is 7.8
Explanation:
Solution
In this case, in other to determine this problem, we need to find the monthly payments for both options
For option 1 (EMI)
Where
P = 320,000,
r =0.08/12 = 0.00667
n = 360
Now,
EMI = P *r * (1 + r)^n/ (1 + r)^n -1
So,
EMI =320,000 * 0.00667 * (1 + 0.00667)^360/ (1 + 0.00667)^360
EMI = 23329.56/9.93573
=2348.05
For Option 2
P = 320,000,
n = 360
r = 4%/12 = 0.003333
Thus,
EMI =320,000 * 0.003333 * (1 + 0.003333)^360/ (1 + 0.003333)^360
EMI = 3534.398/2.313498
=1527.73
Note:
When Emily is paying 2 discount point in the second option, she is paying the following:
2% * 320000 = 6400
Also she is saving the following:
2.348.05 - 1527.73
=820.32 on payment (monthly) because of the reduction of EMI in the second option
Thus,
The break even time is =payments due to points/ monthly savings
=6400/820.32
=7.8
blanchard company manufactures a signle product that sells for $104 per unit and whose total viarable costs are $78 per unit. The company's annual fixed costs are $369200. Management targets an annual pretax income of $650000. Assume that fixed cost remains at $369200
(1) Compute the unit sales to earn the target income.
(2) Compute the dollar sales to earn the target income.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Selling price= $104 per unit
Unitary variable cost= $78
Fixed costs= $369,200.
Management targets an annual pretax income of $650,000.
First, we need to calculate the number of units required to reach the objective. We will use the following formula:
Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit
Break-even point in units= (369,200 + 650,000) / (104 - 78)
Break-even point in units= 39,200 units
Now, the sales in dollars required:
Break-even point (dollars)= (fixed costs + desired profit)/ contribution margin ratio
Break-even point (dollars)= 1,019,200 / (26/104)
Break-even point (dollars)= $4,076,800
You purchase a bond with a coupon rate of 8.6 percent, a par value of $1,000, semiannual coupons, and a clean price of $860. If the next coupon payment is due in three months, what is the invoice price
Answer:
The answer is $881.5
Explanation:
Solution
Given that:
The accrued interest is refers to the payment (coupon) for the time with the fraction of the time that has exceed since the last coupon payment.
Since we have a semiannual coupon bond, the coupon payment for six months is 1/2 of the annual coupon payment.
Three months has exceeded since the last coupon payment.
So the accrued interest for the bond is given below:
Accrued Interest = $86/2 * 3/6
= $21.5
Thus
The price (dirty) = Clean Price + Accrued Interest
= $860 + $21.5
= $881.5
Therefore the invoice price is $881.5
Stocks A and B each have an expected return of 15%, a standard deviation of 20%, and a beta of 1.2. The returns on the two stocks have a correlation coefficient of 0.6. Your portfolio consists of 50% A and 50% B. Which of the following statements is CORRECT?
A. The portfolio's expected return is 15%.
B. The portfolio's standard deviation is greater than 20%.
C. The portfolio's beta is greater than 1.2.
D. The portfolio's standard deviation is 20%.
E. The portfolio's beta is less than 1.2.
Answer:
The correct answer is option (A) The portfolio's expected return is 15%
Explanation:
Solution
Given that:
Both Stock A and B have a return expected to be =15%
Standard deviation of =20%
Beta = 1.2
Correlation coefficient = 0.6
Now,
The expected return of the portfolio is computed as follows:
Expected return (ERp) = (ERₐ * Wₐ) +(ERb * Wb)
Expected return (ERp) = (15% *50%) +(15%* 50 %)
Expected return (ERp) = (0.075) + (0.075)
Expected return (ERp) =0.15 or 15%
Expected return (ERp) = 15%
11.Jones and company had a balance in their retained earnings account at the end of 2020 in the amount of 990,000. They have forecasted net income in 2021 in the amount of 350,000. They pay an estimated 40% of their net income in dividends. What will be the addition to retained earnings at the end of 2021. What will be the ending balance in retained earnings at the end of 2021
Answer:
$210,000 and $1,200,000
Explanation:
The computation is shown below:
Given that
Ending Balance in retained earnings = $990,000
Net income = $350,000
Dividend paid in 2021 is
= 40% of net income
= 40% of $350,000
= $140,000
So, the Addition to retained earning is
= Net income - dividends
= $350,000 - $140,000
= $210,000
Now the ending balance in retained earnings is
= Beginning balance in retained earnings + addition to retained earnings
= $990,000 + $210,000
= $1,200,000
Assume a company pays tax at a rate of 15% on its first $50,000 of income. Any income above $50,000 is taxed at 25%. If a company has $75,000 of taxable income, which of the following statements is correct?
a. Its marginal tax rate is 15%.
b. Its average tax rate is 25%.
c. Its marginal tax rate is 18.33%.
d. Its average tax rate is 18.33%.
Answer:
Option C, Its marginal tax rate is 18.33%. is correct
Explanation:
The tax payable on its first $50,000 of income is shown below:
tax payable=$50,000*15%=$7500
The tax payable on the remaining balance of $25,000 is computed thus:
tax payable on the balance of $25,000=$25,000*25%=$6250
Total tax payable=$7,500+$6,250=$ 13,750.00
Marginal tax rate=tax payable/taxable income=$ 13,750.00/$75,000=18.33%
You are evaluating an investment that requires $2,000 upfront, and pays $500 at the end of each of the first 2 years, and an additional lump-sum of $1000 at the end of year 2. What would happen to the IRR if the annual payment at the end of the first year go down from $500 to $300 and the annual payment at the end of second year stays at $500
Answer:
The IRR decreases
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
To determine what happens to the IRR when year 1 Cash flow changes, we have to calculate the IRR in both scenarios.
IRR can be calculated using a financial calculator
IRR when year 1 cash flow in $500
Cash flow in year 0 = $-2000
Cash flow in year 1 = $500
Cash flow in year 2 = $500 + $1000 = $1500
IRR = 0
IRR when year 1 cash flow in $500
Cash flow in year 0 = $-2000
Cash flow in year 1 = $300
Cash flow in year 2 = $1500
IRR = -5.57%
The IRR decreases and turns negative
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
At Jamal's Juices, each smoothie requires 16 oz of juice, which costs $0.15/oz. It takes 0.10 hrs of direct labor to make smoothies, at $9.35 per DLH. Variable overhead costs $1.15/smoothie, and fixed costs total $98,000 per year. They expect to produce 72,000 smoothies next year. Calculate the manufacturing overhead budget for next yea
Answer:
direct materials = 16 oz x $0.15 per oz = $2.40
direct labor = $9.35 x 0.10 hrs = $0.94
variable overhead = $1.15 per smoothie
fixed costs = $98,000
estimated production per year = 72,000
Jamal's Juices
Manufacturing Overhead Budget
For the Year 202x
Per unit Total
Variable manufacturing overhead $1.15 $82,800
Fixed manufacturing overhead $1.3611 $98,000
Total $2.5111 $180,800
Generally the budget would be more specific, e.g. which costs are included under variable MOH or fixed MOH, but in this case we only should include the total variable and fixed costs.
Liability policies, such as personal liability, professional malpractice, or business liability insurance, do NOT protect the insured against a. a personal injury on the insured's property, such as the mail carrier who slips and falls on the owner's sidewalk. b. intentional harm caused by the insured. c. someone injured by the insured away from home or business. d. claims for property damaged by the insured.
Answer:
b. intentional harm caused by the insured.
Explanation:
Liability insurance is a means to provide the insured party with some protection against claims resulting from injuries and damage to people or property, covering both legal costs and any payouts for which the insured party would be responsible if found legally liable.
Note that there are two types of liability coverage: bodily injury and property damage. Most states in the US require liability coverages, subject to limits, which is the maximum amount the insurer will pay when the incident occurs. For example, a car accident can be expensive. This is why there is a limit of compensation which an insurer can offer.
A jewely firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8.90 per stone for quantities of 600 stones or more, $9.30 per stone for orders of 400 to 599 stones, and $9.80 per stone for lesser quantities. The jewelry firm operates 108 days per year. Usage rate is 26 stones per day, and ordering costs are $406.
a.If carrying costs are $3 per year for each stone,find the order quantity that will minimize total annual cost. (Do not roun d intermediate calculations. Round your final answer to the nearest whole number) Order quantity stones _________
b. If annual carrying costs are 28 percent of unit cost, what is the optimal order size? (Do not round intermediate calculations. Round your final answer to the nearest whole number.) Optimal order size stones ___________
c. If lead time is 4 working days, at what point should the company reorder? (Do not round intermediate calculetions. Round your final answer to the nearest whole number) Reorder quantity stones ___________
Answer:
a. Order quantity that will minimize total cost = 503 stones
b. Optimal order size = 605 stones
c. Reorder point = 104 stones
Explanation:
Demand = 26 stones per day * 108 days = 2808 stones per year
a. Order quantity of Stones:
Economic Order Quantity = [tex]\sqrt{2DS}/H[/tex]
D = Demand, S = Ordering Cost, H = Carrying Cost
= [tex]\sqrt{2*2808*406}[/tex] / 3
EOQ = 503 stones.
b. If Carrying cost is 28% of unit cost then EOQ:
= [tex]\sqrt{2*2808*406}[/tex] / 8.90* 0.28
= 1510 / 2.492 = 605 stones
c. Reorder Point:
= Average Usage per day * Average lead time + Safety stock
= 26 stones per day * 4 working days
= 104.
In the long run, profits in a monopolistically competitive market are zero because: a. of government regulations. b. of collusion. c. firms are free to enter and exit the market. d. firms produce a differentiated product.
Answer:
c. firms are free to enter and exit the market.
Explanation:
A monopolistically competitive market is a market in which there are a lot of organizations that sell products that are similar and it tends to be easy to enter and leave the industry. Because it is easy for a company to enter the market and there is a lot of competition, in the long run the economic profit is zero. According to this, the answer is that in the long run, profits in a monopolistically competitive market are zero because firms are free to enter and exit the market.
The other options are not right because a monopolistically competitive market has zero profits because of its low entry barriers and amount of competitors not because of government regulations or an illegal agreement between organizations to control competition. Also, in a monopolistically competitive market the products are similar.
Paladin Furnishings generated $4 million in sales during 2016, and its year-end total assets were $2.4 million. Also, at year-end 2016, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. Looking ahead to 2017, the company estimates that its assets must increase by $0.60 for every $1.00 increase in sales. Paladin's profit margin is 3%, and its retention ratio is 55%. How large of a sales increase can the company achieve without having to raise funds externally
Answer:
$105,571.6
Explanation:
Calculation of how large of a sales increase can the company achieve without having to raise funds externally.
The first step is to calculate the self-supporting growth rate using this Formula:
Self-supporting growth rate =
M (1-POR) (S0)÷A0 – L0 – M (1-POR) (S0)
Where:
M = Net Income/Sales = 3%
POR = Payout ratio = 55%
S0 = Sales = $4,000,000
A0 = $2,400,000
L0 = Spontaneous liabilities = $200,000+$100,000 =$300,000
We are using only accounts payable and accruals for LO because they are been considered as spontaneous liabilities
Let plug in the formula
.03 (1 - .55) (4,000,000) ÷2,400,000-300,000 - .01(1-.55)(4,000,000)
=54,000÷2,100,000 – 54,000
=54,000÷2,046,000
=2.63929%
Therefore, the self-sustaining growth rate will be 2.63929%
Second step is to Calculate for how large a sales can increase
Using this formula
Sales amount * Self-sustaining growth rate
Let plug in the formula
$4,000,000×2.63929%
=$105,571.6
Therefore, the sales can increase by $105,571.6
Diane's Designs has two classes of stock authorized: 9%, $10 par value preferred and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January 1 Issue 200,000 shares of common stock for $15 per share. February 6 Issue 900 shares of preferred stock for $13 per share. October 10 Purchase 12,000 shares of its own common stock for $14 per share. November 12 Resell 5,000 shares of treasury stock at $24 per share. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Answer and Explanation:
The Journal entries are shown below:-
1. Cash Dr, $3,000,000 (200,000 × $15)
To Common stock $200,000 (200,000 × $1)
To Paid in capital in excess of par - Common stock $2,800,000
(Being issuance of common stock is recorded)
Here we debited the cash as it increased the current assets and we credited the common stock and paid in capital in excess of par - common stock as it also increased the stockholder equity
2. Cash Dr, 11,700 (900 × $13)
To Preferred stock $10,000 (900 × $10)
To Paid in capital in excess of par - Preferred stock $1,700
(Being issuance of the preferred stock is recorded)
Here we debited the cash as it increased the current assets and we credited the preferred stock and paid in capital in excess of par - Preferred stock as it also increased the stockholder equity
3. Treasury stock Dr, $168,000 (12,000 × $14)
To Cash $168,000
(Being cash paid is recorded)
Here we debited the treasury stock as it increased the treasury stock and we credited the cash as it reduced the current assets
4. Cash Dr, 120,000 (5,000 × $24)
To Treasury stock $70,000 (5,000 × $14)
To Paid in capital in excess of par - Treasury stock $50,000
(Being issuance of the treasury stock is recorded)
Here we debited the cash as it increased the current assets and we credited the treasury stock and paid in capital in excess of par - Treasury stock as it reduced the treasury stock
In 2016, Teller Company sold 3,000 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $270,000. The same selling price, variable expenses, and fixed expenses are expected for 2017. What is Teller's break-even point in units for 2017
Answer:
1500
Explanation:
Breakeven point is the number of units produced and sold where net income is art on it is where revenue equals cost.
The formula for calculating break even points = F / (P - V)
F = fixed cost
P = price
V = variable cost per unit
$270,000 / ($600 - $420) = 1500
I hope my answer helps you
A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. However, adaptations of global brands are made:________.a. if required by government regulations in the host market and for no other reason.b. only in its initial introduction into a market and only until the brand is recognized.c. by domestic competitors causing brand confusion and loss of market share.d. only when necessary to better connect the brand to consumers in different markets.e. when there is a serious drop in market share.
Answer:
Option (D) is the correct answer to this question.
Explanation:
Global brand adaptations are made except when necessary to better communicate the brand to consumers from different markets because it has a particular market image. Global brands are brands that are widely recognized around the world.
Companies which intend to create global brands must do the following:
Classify the perceived attractiveness of your product in each sector. Carry out studies of attitude and usage in each region you are planning to enter.Other options are incorrect because they are not related to the given scenario.