Answer:
Full question is "A six-month call option contract on 100 shares of Home Depot common stock with a strike price of $60 can be purchased for $600. Assuming that the market price of Home Depot stock rises to $75 per share by the expiration date of the option, what is the call holder’s profit? What is the holding period return?"
1. Call holder's profit = Value at expiration - Purchase price
Call holder's profit = [[Underlying stock price-Strike price]*Number of shares] - Purchase price
Call holder's profit = [($75-$60)*100] - $600
Call holder's profit = $900
2. Holding period return = Value at expiration - Purchase price / Purchase price
Holding period return = [[Underlying stock price-Strike price]*Number of shares] Purchase price / Purchase price
Holding period return = [[Underlying stock price-Strike price]*Number of shares] Purchase price [($75-$60)*100] - $600 / $600
Holding period return = $900 / $600
Holding period return = 1.5
Holding period return = 150%
Risk and Return. We have seen that over long periods of time, stock investments have tended to substantially outperform bond investments. However, it is not at all uncommon to observe investors with long horizons holding entirely bonds. Are such investors irrational?
Answer:
No they are not irrational. They are risk averse
Explanation:
As a general rule the higher the returns on an investment the higher the risk of losing one's funds invested, and the lower the returns the lower the risk.
Bonds have lower returns than stocks but for investors that have long horizon holdings they would prefer investing in bonds.
This is because they are risk averse and the risk in bonds is low.
They are willing to make low returns over a long time than to risk losing their investment on stocks that are riskier
Dennis sells short 100 shares of ARC stock at $152 per share on January 15, 2020. He buys 200 shares of ARC stock on April 1, 2020, at $190 per share. On May 2, 2020, he closes the short sale by delivering 100 of the shares purchased on April 1
a. What are the amount and nature of Dennis’s loss upon closing the short sale?
b. When does the holding period for the remaining 100 shares begin?
c. If Dennis sells (at $27 per share) the remaining 100 shares on January 20, 2017, what will be the nature of his gain or loss?
Answer: See explanation
Explanation:
a. What are the amount and nature of Dennis’s loss upon closing the short sale?
Sales consideration = $100 × $152 = $15200
Less: Closing Value of Short sales = 100 × $190 = $19000
Short term capital loss = $3800
b. When does the holding period for the remaining 100 shares begin?
The holding period for the remaining 100 shares begin on May 2, 2020, which was when the short sale was closed.
c. If Dennis sells (at $27 per share) the remaining 100 shares on January 20, 2017, what will be the nature of his gain or loss?
Sales consideration = 100 × $27 = $2700
Less: Base value = $19000
Short term capital loss = $16300
During 2016, its first year of operations, Baginski Steel Corporation reported a net operating loss of $375,000 for financial reporting and tax purposes. The enacted tax rate is 40%.
Required:
1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available evidence suggests future taxable income sufficient to benefit from future deductible amounts from the net operating loss carryforward.
2. Show the lower portion of the 2016 income statement that reports the income tax benefit of the net operating loss.
Answer:
1. Debit Deferred Tax Liability for $150,000; and Credit Income Tax Benefit -Operating Loss for $150,000.
2. See part 2 below for how it is shown.
Explanation:
1. Prepare the journal entry to recognize the income tax benefit of the net operating loss.
Income tax benefit = Net operating loss * Tax rate = $375,000 * 40% = $150,000
The journal entry will look as follows:
Particulars Debit ($) Credit ($)
Deferred Tax Liability 150,000
Income Tax Benefit - Operating Loss 150,000
(To record the income tax benefit)
2. Show the lower portion of the 2016 income statement that reports the income tax benefit of the net operating loss.
This can be shown as follows:
Baginski Steel Corporation
Income Statement
For the Year Ended 2016
Details $
Net operating loss (375,000)
Income tax benefit 150,000
Net loss (225,000)
The master budget of Tenenbaum Ltd. shows that the planned activity level for next year is expected to be 30,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:
Indirect labor................................................. $720,000
Machine supplies..........................................180,000
Indirect materials..........................................210,000
Depreciation on factory building..................150,000
Total manufacturing overhead.....................$1,260,000
A flexible budget for a level of activity of 40,000 machine hours would show total manufacturing overhead costs of:________
Answer:
$1,630,000
Explanation:
The computation of the flexible budget for a level of activity of 40,000 machine hours would show total manufacturing overhead costs is shown below:-
Variable overhead for 30,000 machine hours
= $1,260,000 - $150,000 = $1,110,000
Variable overhead for 40,000 machine hours
= ($1,110,000 / 30,000) × 40,000 = $1,480,000 (a)
Fixed overhead = Depreciation = $150,000 (b)
Total manufacturing Overhead (a + b)
= $14,80,000 + $150,000
= $1,630,000
What is the primary reason for keeping money in the form of cash
Answer: To make transactions
Explanation:
Coastal Health Care is creating a plan in the event of a hurricane or other natural disaster. The leadership team assigns specific responsibilities to each department, even the ancillary areas like finance and human resources. Which of the benefits of planning does this example best represent?
a. coping with uncertainty
b. checking on progress
c. coordinating activities
d. implementing a vision
e. thinking ahead
The preparation that Coastal Health Care does avoids any need for unnecessary complexity. It enhances coordination, to look at it another way. It assists in the discovery and resolution of work performance difficulties.
Coastal Medical Care's organization will improve when clear tasks are allocated to each department, including auxiliary areas like finances and human resource management.
Option "C" is the correct answer to the following question.
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The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also.
WRIGHT COMPANY
Comparative Balance Sheets
December 31, 2021 and 2020
($ in thousands)
2021 2020
Assets
Cash $ 121 $ 105
Accounts receivable 148 150
Short-term investment 53 18
Inventory 148 145
Land 110 135
Buildings and equipment 725 550
Less: Accumulated depreciation (205) (150)
$ 1,100 953
Liabilities
Accounts payable $ 42 $ 50
Salaries payable 4 8
Interest payable 9 7
Income tax payable 9 12
Notes payable 0 35
Bonds payable 320 250
Shareholders’ Equity
Common stock 420 350
Paid-in capital—excess of par 195 175
Retained earnings 101 66
$ 1,100 $ 953
WRIGHT COMPANY
Income Statement
For Year Ended December 31, 2021
($ in thousands)
Revenues:
Sales revenue $ 620
Expenses:
Cost of goods sold $ 280
Salaries expense 88
Depreciation expense 55
Interest expense 18
Loss on sale of land 5
Income tax expense 94 540
Net income $ 80
Additional information from the accounting records:
Land that originally cost $25,000 was sold for $20,000.
The common stock of Microsoft Corporation was purchased for $35,000 as a short-term investment not classified as a cash equivalent.
New equipment was purchased for $175,000 cash.
A $35,000 note was paid at maturity on January 1.
On January 1, 2021, bonds were sold at their $70,000 face value.
Common stock ($70,000 par) was sold for $90,000.
Net income was $80,000 and cash dividends of $45,000 were paid to shareholders.
Required:
Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method.
Answer and Explanation:
The preparation of the cash flow statement is presented below;
WRIGHT COMPANY
Statement of Cash flows
For the Year Ended December 31, 2021 ($ in 000s)
Cash flows from operating activities
Cash inflows:
Cash received from customers $622 ($620 + $150 - $148)
Cash outflows:
To suppliers ($291) ($280 + $50 - $42 + $148 - $145)
To employees ($92) ($88 + $8 - $4)
For interest ($16) ($18 + $7 - $9)
For income tax ($97) ($94+ $12 -$9)
Net cash provided by operating activities $126
Cash flows from investing activities
Purchase of short term investment ($35)
Purchase of equipment ($175)
Sale land $20
Net cash used by investing activities ($190)
Cash flows from financing activities
Sale of bonds payable $70
Sale of common stock $90
Payment of dividends ($45)
Repayment of notes payable ($35)
Net cash provided by financing activities $80
Net Increase in cash and cash equivalents $16
Cash and cash equivalents at beginning of period $105
Cash and cash equivalents at end of period $121
The statement of cash flows of Wright Company for the year ended December 31, 2021 is $121.
Wright Company Statement of cash flows
Cash flow from operating activity:
Net income $80
Adjustments:
Depreciation expense $55
Loss on sale of land $5
Decrease in Account receivable $2
($148-$150)
Increase in short-term investment ($35)
($53-$18)
Increase in inventory ($3)
($148-$145)
Decrease in Accounts payable ($8)
($42- $50)
Decrease in Salaries payable ($4)
($4-$8)
Increase in Interest payable $2
($9-$7)
Decrease in Income tax payable ($3)
($9-$12)
Cash generated from Operating activity $91
Cash flow from investing activity:
Land sold $20
Equipment purchased ($175)
Cash used for investing activity ($155)
Cash flow from financing activity:
Common stock issued $70
Paid in capital in excess of par $20
Bond sold $70
Cash Dividend ($45)
Note payable paid off ($35)
Cash used for financing activity $80
Net increase in cash $16
[$91+($155)+$80]
Beginning cash balance $105
Ending cash balance $121
($16+$105)
Inconclusion the statement of cash flows of Wright Company for the year ended December 31, 2021 is $121.
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Scott is a young affluent professional who values quality global goods and i and global populations that was discussed in the Core Reading, to which market segment does Scott likely belong?
A. Global citizens
B. Global dreamers
C. Antiglobals
D. Global agnostics
Answer: B. Global dreamers
Explanation:
Global dreamers are those who care about the quality of the goods that they buy such that they will especially turn to quality global goods much like Scott here.
People that fall into this group do not really care about the social responsibility of the company producing to the country they are producing in so long as they get their quality goods. This is the case with Scott so Scott is a global dreamer.
Journalize the following transactions for Tamarisk Company.
(a) Purchased 6,500 units of raw materials on account for $12,200. The standard cost was $13,000.
(b) Issued 6,210 units of raw materials for production. The standard units were 6,360.
Answer:
Transaction a.
Debit : Raw Materials $12,200
Credit : Accounts Payable $12,200
Transaction b.
Debit : Work in Process $11,656
Credit :Raw Materials $11,656
Explanation:
We use the actual costs to account for the purchase and transfer of materials to production.
Unit Cost = Total Cost ÷ Total units purchased = $1.88
Janice, a citizen of Nevada, was injured by a defective product manufactured by Hot Plates, Inc., a company incorporated in California. Janice is suing the company for pain and suffering along with medical bills, which exceed $100,000. With respect to diversity of citizenship cases, which of the following is true?
a. If Janice brings the lawsuit in a Nevada state court, Hot Plates, Inc. can have the case removed to federal court.
b. The plaintiff and defendant are required to be residents of the same state.
c. The dollar amount of the controversy is limited to $100,000.
d. If Janice brings the lawsuit in a Nevada state court, the case must be heard there.
Answer: D. . If Janice brings the lawsuit in a Nevada state court, the case must be heard there
Explanation:
Diversity of citizenship simply refers to cases where the people involved that is, the opposing parties are from different states or countries.
With regards to this, if Janice brings the lawsuit in a Nevada state court, the case must be heard there. In this case, Hot Plates, Inc. cannot have the case removed to federal court.
Therefore, the correct option is D.
On May 13, 2020, Otto, Parker and Quentin bought a parcel of land as tenants in common. The deed provided that Otto owned 1/2 the property and Parker and Quentin each owned 1/4 each. If Quentin dies, the property will be divided as follows:
a. Otto 1/2. Parker 1/2
b. Otto 5/8, Parker 3/8
c. Otto 1/3, Parker 1/3, Quentin's heirs 1/3
d. Otto 1/2. Parker 1/4, Quentin's heirs 1/4
Answer:D. Otto 1/2. Parker 1/4, Quentin's heirs 1/4
Explanation:
Based on the information given in the question, if Quentin dies, the property will be divided as Otto 1/2. Parker 1/4, Quentin's heirs 1/4.
When a tenant in common dies, it should be noted that their share of a property will be passed to their legal heir and thesame percentage of ownership will be shared by the co-owners. Hence the correct option is D
Darcy Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on large homes and commercial properties. Last year, Darcy Roofing spent $71,400 refurbishing the lift. It has just determined that another $37,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $156,500. The company estimates that both lifts would have useful lives of 6 years. The new lift is more efficient and thus would reduce operating expenses by about $23,800 per year. Darcy Roofing could also rent out the new lift for about $9,000 per year. The old lift is not suitable for rental. The old lift could currently be sold for $23,000 if the new lift is purchased.
Prepare an incremental analysis for the life of the machines showing whether the company should replace the equipment. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Retain
Equipment Replace
Equipment Net Income
Increase (Decrease)
Operating expenses $
Answer: The extension lift should b bought as it incurs a lesser cost during the 6 years period.
Explanation:
If lift is retained:
Operating expense = 23800 × 6 = 142800
Repair cost = 37000
Total cost = 142800 + 37000 = 179800
If lift is purchased:
Rental revenue if earned = 9000 × 6 = 54000
New machine cost = 156500
Sale of old machine = 23000
Check explanation for attachment
Which of the following allows an individual to gain from unexpected inflation?
Firm ABC sells 1000 units of widgets for $10 per unit per-week. Per-week it pays its employees $1500, rent $2000, materials $1000, and the owner gives himself a salary of $3000 per week. The owner left his job as an engineer making $5000 per-week to start his business. In addition, he would be making an interest of $200 per week on his savings which he withdrew to start the business.
a. The firm's accounting profit per week is equal to $6500
b. The firm's explicit cost is smaller than its implicit cost per week
c. The firm's economic profit per week is equal to $300
d. The firm's economic loss per week is equal to $700
Answer:
C
Explanation:
A project manager is trying to convince management to use more formal project management procedures and has decided to start improving the company's project management by obtaining a project charter for each of his projects. Which of the following best describes how a project charter would help the project manager?
a. It describes the details of what needs to be done
b. It lists the names of all team members
c. It gives the project manager authority
d. It describes the project's history
Answer: C. It gives the project manager authority.
Explanation:
A project charter is referred to as a formal document that describes what a project will be about. It shows the project objectives, how it will be done, the stakeholders etc
The project charter is used to formally outline a project and authorize it in an organization. It covers the scope of the project, budget, risks involved etc.
Therefore, the correct option is C
It takes three units of B and four units of C to make one unit of A. The gross requirements of item A are 200 units for week 4 and 0 for other weeks. At the beginning of week 1, the following information is available:
Item ID Inventory on hand available Lead Time (week) А 100 B 150 1 week for assembling A using Ban 1 week for making B 1 week for purchasing C C С 320
And there are no scheduled receipts of any parts in the future. Which of the following is correct about the timing of item B's gross requirements?
a. Item B will have gross requirements in week 1.
b. Item B will have gross requirements in week 2.
c. Item B will have gross requirements only in week 3.
d. Item B will have gross requirements only in week 4
e. Neither of the above.
Answer:
d. Item B will have gross requirements only in week 4.
Explanation:
Item B is used with Item C to produce Item A. The demand for Item A is only in week 4. There is requirement for 200 units in week 4 which are to be produced. The units of item B will be required when there is demand for item A. Item B will have gross requirements in week 4 only.
The purpose or objectives of competition policy
Answer:
This Act, by prohibiting private monopolization, unreasonable restraint of trade and unfair trade practices, by preventing excessive concentration of economic power and by eliminating unreasonable restraint on production, sale, price, technology and the like, and all other unjust restriction of business
Explanation:
credits :- wwwjftc
The net income for Bramble Corp. for 2022 was $264,300. For 2022, depreciation on plant assets was $65,600, and the company incurred a loss on disposal of plant assets of $30,300.
Required:
Compute net cash provided by operating activities under the indirect method, assuming there were no other changes in the company’s accounts.
Answer:
$360,200
Explanation:
Indirect method reconciles the Net Income to Cash from operating cashflows.
Cash flow from operating activities
Net Income $264,300
Adjust for non- cash items :
Depreciation $65,600
Loss on disposal of plant asset $30,300
Net Cash Provided by Operating Activities $360,200
thus,
net cash provided by operating activities is $360,200
accounting is the language of business
Discuss, what international business is, why and how it differs from domestic business, why it is important, and its historical development?
Answer:
An international business can be understood as the expansion of business beyond your country. Organizations look for economic opportunities in other countries, to achieve competitive and profitable advantages, to increase their value and their market strength.
This is a strategy that includes greater responsibilities than managing a national business, due to the fact that an international business includes adapting to a different culture, legislation and preferences, which means greater challenges and greater capacity for the organization to adapt its values, products and services the culture and local rules, in order to be well accepted and well positioned in the international market.
International business was only possible due to new technologies, which allowed individuals to move and communicate more quickly, which enabled this international expansion in a more dynamic way and management in real time, regardless of geographic distance.
Currently we live in the era of globalization, where there is a great economic interaction between the countries of the world, in an ultra-competitive environment where each organization seeks the best way to generate value and economic results.
On January 1, 2019, Woodstock, Inc. purchased a machine costing $40,600. Woodstock also paid $1,300 for transportation and installation. The expected useful life of the machine is 6 years and the residual value is $5,300. If Woodstock uses the straight-line depreciation method, which of the following statements is incorrect?
a. The annual depreciation expense is $6.100.
b. The December 31, 2019 book value is $35,800
c. The December 31, 2020 book value is $24,400
d. The December 31, 2021 accumulated depreciation balance is $18,300
Answer:
Book value (2020)= $29,700
Explanation:
Giving the following information:
Total purchase price= 40,600 +´1,300= $41,900
Useful life= 6 years
Residual value= $5,300
To determine which option is incorrect, we are going to calculate the annual depreciation, book value, and accumulated depreciation:
Annual depreciation= (Total purchase price - salvage value)/estimated life (years)
Annual depreciation= (41,900 - 5,300) / 6
Annual depreciation= $6,100
Accumulated depreciation (2021)= 6,100*3= $18,300
Book value (2019)= 41,900 - 6,100= $35,800
Book value (2020)= 35,800 - 6,100= $29,700
Ornamental sculptures MFG. manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $2 per pound and 0.4 direct labor hours at a rate of $15 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $3,900 per month. THe company's policy is to maintain direct materials inventory equal to 20% of the next month's materials requirement. At the end of february the company had 6,180 pounds of direct materials in inventory. The company production budget reports the following:
Production Budget March April May
Units to be produced 4,100 4,700 5,500
Required:
Prepare direct materials budgets for March and April.
Answer:
Results are below.
Explanation:
Giving the following information:
Each sculpture requires 8 pounds of direct materials for $2 per pound
The company's policy is to maintain direct materials inventory equal to 20% of the next month's materials requirement.
Beginning inventory= 6,180 pounds
To calculate direct material purchases, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
March:
Purchases= 4,100*8 + (4,700*8)*0.2 - 6,180
Purchases= 34,140 pounds
Direct material busget= 34,140*2= $68,280
April:
Purchases= 4,700*8 + (5,500*8)*0.2 - 7,520
Purchases= 38,880
Direct material budget= 38,880*2= $77,760
The balance between supply and demand is called
O price
O equilibrium
O equal
O quantity
Answer: O EQUILIBRIUM
HOPE THIS HELPS
CAN YOU PLEASE HELP ME TOO
Answer:
B) Equilibrium
Explanation:
I just took the quiz and got 100%
guns has decided to organixe
Answer:
why wont people stop thinking about guns and help your community out let god get into your hangs its not about guns its about communication helping love this outside world is to enjoy the whole world
Select the correct answer.
In the United States, which assessment system measures inflation?
OA
demand for goods
ОВ. .
supply of goods
Oc
consumer price index
OD
money supply in the economy
Pharma One’s analgesic drug KleenKare has a 50% share in the analgesics market in the country of Syria. Its closest competitor, CosSign, has a 25% share in the market, while four other analgesic brands split the remaining 25% of the analgesics market. Which statement indicates that KleenKare is a cash cow according to the Boston Consulting Group (BCG) matrix?
1. A customer survey shows that KleenKare users do not prefer it to other analgesics in the market .
2. The demand for analgesic drugs in the Syrian market is expected to maintain a low-growth, high-share status.
3. Pharma One often takes money from other strategic business units to support KleenKare.
4. CoSign is rapidly gaining market share over KleenKare due to aggressive marketing efforts.
Answer:
Pharma One
The statement that indicates that KleenKare is a cash cow according to the the Boston Consulting Group (BCG) matrix is:
2. The demand for analgesic drugs in the Syrian market is expected to maintain a low-growth, high-share status.
Explanation:
A cash cow depicts the BCG matrix quadrant where there are higher returns, high market share in a low-growth market. The cash cow requires little investment to generate high returns. It also provides the cash for financing the other quadrants (dogs, stars, and question marks). Basically, the BCG matrix, also known as the Growth/Share Matrix, depicts the products' growth opportunities.
What’s the answer here please
I think the answer is b but I could be wrong
A Las Vegas hotel wants to provide a better experience for its rapidly growing customer base from China. The hotel can best do this by hiring
Kristin, a Chinese restaurant owner who likes to cook authentic food.
Brian, a Mandarin interpreter who loves to interact with groups of all sizes.
Sam, a sign-language interpreter who prefers to work with small groups.
Rebecca, an event planner who wants to work with international tourists.
Answer:
a
Explanation:
Suppose that in your first year of college you spend $21,800.00 more than you earn. In your second year, your expenses increase a bit, leading you to spend $22,200.00 more than you earn. This gap goes to $22,480.00 in your third year of college, then falls a bit to $22,480.00 in your fourth and final year.
1. What is your deficit in your third year of college?
2. How much debt do you have that year?
Answer:
$483,000.987
you are RICHHHHHHHHHH
Explanation:
The following data are taken from the financial statements of Bar Harbor Company:
2017 2016
Average accounts receivable $530,000 $550,000
Net sales on account 5,800,000 5,200,000
Terms for all sales are 2/10, n/30
a) Compute the accounts receivable for both years.
b) Compute the average collection period for both years.
Answer:
a. Accounts receivable turnover = Net sales on account/Average accounts receivable
2017
Accounts receivable turnover = $5,800,000/$530,000
Accounts receivable turnover = 10.94
2016
Accounts receivable turnover = $5,200,000 / $550,000
Accounts receivable turnover = 9.45
b. Average collection period = 365 days/Accounts receivable turnover
2017
Average collection period = 365/10.94
Average collection period = 33 days
2016
Average collection period = 365/9.45
Average collection period = 39 days