Answer:
Rf=risk-free rate=3.91%
Explanation:
E(R) = Rf + ß( Rmarket - Rf )
E(R)= Expected return =12.15%=0.1215
Rf= Risk free rate = ?
ß = Beta = 1.31
Rmarket = Expected return of market = 10.2 %= 0.102
Changing to fraction before solving
0.1215= Rf + 1.31(0.102- rf)
0.1215= Rf +0.13362-1.31Rf
0.13362-0.1215= -Rf+1.3Rf
0.01212=0.31Rf
Rf= 0.01212/0.31= 0.03909 x 100%= 3.909% =3.91%
or Solving directly
12.15= Rf +1.31(10.2-Rf)
12.15= Rf +13.362 -1.31Rf
13.362 -12.15=-Rf + 1.31Rf
1.212= 0.31Rf
Rf =3.909% round off to 3.91%
On January 1, acquired 70 percent of common stock for $210,000 cash. The fair value of the noncontrolling interest at that date was determined to be $90,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
Gulliver Corp. Sea-Gull Corp.
Cash $60,000 $20,000
Accounts Receivable 80,000 30,000
Inventory 90,000 40,000
Land 100,000 40,000
Buildings and Equipment 200,000 150,000
Less: Accumulated Depreciation (80,000) (50,000)
Investment in Sea-Gull Corp. 160,000
Total Assets $610,000 $230,000
Accounts Payable $110,000 $30,000
Bonds Payable 95,000 40,000
Common Stock 200,000 40,000
Retained Earnings 205,000 120,000
Total Liabilities and Equity $610,000 $230,000
At the date of the business combination, the book values of Sea-Gull's net assets and liabilities approximated fair value except for inventory, which had a fair value of $45,000, and land, which had a fair value of $60,000.
Based on the preceding information, what amount of total inventory will be reported in the consolidated balance sheet prepared immediately after the business combination?
a. $130,000
b. $135,000
c. $90,000
d. $45,000
Answer:
Gulliver Corp. and Sea-Gull Corp.
Amount of Inventory in the consolidated Balance Sheet, immediately after the business combination:
b. $135,000
Explanation:
Inventory:
Gulliver Corp. = $90,000
Sea-Gull Corp. = 45,000
Total = $135,000
In consolidated financial statements, assets and liabilities are recognized based on their fair values. The procedure is to add such assets and liabilities together, line item by line item, in the consolidated financial statements. It is mainly equity interests and investments in the subsidiary by the investor entity that are eliminated.
Which goal of the U.S. economy is important in reducing the amount of waste of resources?
O efficiency
O stability
O growth
O equity
The answer is....
A.) EfficiencyJust trust a bro
If the government guarantees sugar farmers a price of $1 per pound when the market equilibrium price is actually $0.50 per pound, which of the following will occur?
a) A shortage of sugar will occur, increasing inefficiency.
b) A shortage of sugar will occur, decreasing inefficiency.
c) A surplus of sugar will occur, increasing inefficiency.
d) A surplus of sugar will occur,decreasing inefficiency.
Answer:
C
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
the price per pound of sugar is above equilibrium price, as a result the supply of sugar would increase while the demand for sugar would decrease. this would lead to a surplus. because at $1, supply would exceed demand, there would be an increase in inefficiency
Answer:
A surplus of sugar will occur, increasing inefficiency.
Explanation:
When the price of sugar is set above the market equilibrium price, the quantity supplied will be greater than the quantity demanded by consumers. Therefore, a surplus of sugar occurs that increases the level of inefficiency.
The market supply curve is: perfectly inelastic in the long run, but not the short run. more elastic in the long run than in the short run. less elastic in the long run than in the short run. perfectly elastic in the short run, but not the long run.
Answer:
The answer is B. more elastic in the long run than in the short run
Explanation:
Supply is usually more elastic in the long run than in the short run because it is a known fact factors of production(labor, capital etc.) can be utilised to increase supply in the long run whereas in the short run only labor can be increased.
And also, because because there is time for firms to enter or leave the industry.
You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: Asset Investment Beta Stock A $ 146,000 .91 Stock B $ 134,000 1.36 Stock C 1.51 Risk-free asset How much will you invest in Stock C
Answer:
Investment in stock C is $122450.3311 rounded off to $122450.33
Explanation:
A portfolio which is equally as risky as market should have a beta equal to the beta of the market as beta is a measure of the riskiness. The beta of market is always equal to 1. The formula for beta of a portfolio is as follows:
Portfolio beta = wA * Beta A + wB * Beta B + ... + wN * Beta N
Where w represents the weight of each stock in the portfolio.
Let investment in stock C be x
1 = 146000/500000 * 0.91 + 134000/500000 * 1.36 + x/500000 * 1.51
1 = 0.26572 + 0.36448 + 1.51x / 500000
1 - 0.6302 = 1.51x / 500000
0.3698 * 500000 = 1.51x
1844900 / 1.51 = x
x = $122450.3311 rounded off to $122450.33
A corporation issued 2,500 shares of its no par common stock at a cash price of $11 per share. The entry to record this transaction would be: A. Debit Treasury Stock $27,500; credit Cash $27,500. B. Debit Cash $27,500; credit Common Stock $27,500. C. Debit Common Stock $27,500; credit Cash $27,500. D. Debit Cash $27,500; credit Paid-in Capital in Excess of Par Value, Common Stock $2,500; credit Common Stock $25,000. E. Debit Treasury Stock $2,500; debit Paid-in Capital in Excess of Par Value, Treasury Stock $25,000; credit Common Stock $27,500.
Answer:
B. Debit cash $27,500 ; Credit common stock $27,500
Explanation:
The journal entry to record the transaction is;
Cash account Dr $27,500
(2,500 shares × $11)
To Common stock account Cr $27,500
Cash is an asset hence debited because it decreases as it was used to pay for bills while common stock is credited because it increases shareholder's equity.
The following equations describe consumption, investment, government spending, taxes, and net exports in the country of Economika.
C = 400 + 0.80(Y - T)
I = 500
G = 450
T = 450
X = 100
1. In Economika, equilibrium GDP is equal to $_. (Round your answer to the nearest dollar.)
2. If real GDP in Economika is currently $4,450, which of the following is true?
a) There will be an unplanned decrease in inventories, and real GDP will increase next period.
b) There will be an unplanned increase in inventories, and real GDP will increase next period.
c) There will be an unplanned decrease in inventories, and real GDP will decrease next period.
d) There will be an unplanned increase in inventories, and real GDP will decrease next period.
e) There will be no unplanned change in inventories, and real GDP will stay the same next period.
Answer:
1. $5,450
2. a) There will be an unplanned decrease in inventories, and real GDP will increase next period.
Explanation:
1. GDP (Y) is the total economic output and can be calculated using the Expenditure method which is;
Y = C + I + G + X
Y = (400 + 0.80(Y - 450)) + 500 + 450 + 100
Y = 400 + 0.80Y - 360 + 500 + 450 + 100
Y - 0.80Y = 1,090
0.2Y = 1,090
Y = $5,450
2. With Equilibrium GDP being higher than the Real GDP of the country, the excess Demand (GDP is aggregate demand) will lead to more consumption in the Economy which will lead to an unplanned decrease inventories. This will then spur companies to produce more to meet the higher demand causing Real GDP to go up.
Playtown Corporation purchased 75 percent of Sandbox Corporation common stock and 40 percent of its preferred stock on January 1, 20X6, for $270,000 and $80,000, respectively. At the time of purchase, the fair value of the common shares of Sandbox held by the noncontrolling interest was $90,000. Sandbox's balance sheet contained the following balances:
Preferred Stock ($10 par value) $200,000
Common Stock ($5 par value) 150,000
Retained Earnings 210,000
Total Stockholders' Equity $560,000
Required
Give the eliminating entries needed to prepare a consolidated balance sheet immediately after Clayton purchased the Topple shares.
Answer:
Elimination Journal.
Retained Earnings $210,000 (debit)
Common Stock $ 150,000 (debit)
Investment in Sandbox Corporation $270,000 (credit)
Non-Controlling Interest $90,000 (credit)
Explanation:
When dealing with consolidation of Financial Statements, the Equity and Retained Earning in the Subsidiary has to be eliminated from the records whilst the Investment in Subsidiary and the Non-Controlling Interest in Subsidiary are recognized.
Elimination of the common items in consolidation is done by the use of Pro-forma Journals.
Goodwill or Gain on Bargain Purchase are also recognized on the date of acquisition of subsidiary.
Goodwill is the excess of Purchase Price and Non-Controlling interest over the Net Assets Acquired.While Gain on Bargain Purchase is the excess of Net Assets Acquired over Purchase Price and Non-Controlling interest.
Elimination Journal.
Retained Earnings $210,000 (debit)
Common Stock $ 150,000 (debit)
Investment in Sandbox Corporation $270,000 (credit)
Non-Controlling Interest $90,000 (credit)
Net capital outflow and net exports An open economy interacts with the rest of the world through its involvement in world markets for goods and services and world financial markets. Although it can often result in an imbalance in these markets, the following identity must remain true: In other words, If a transaction directly affects the left side of this equation, then It must also affect the right side. The following problem will help you understand why this Identity must hold. Suppose you are a fashion designer Living In the United States, and a trendy boutique in Bangkok just purchased your entire inventory for THB 80,000.
Determine the effects of this transaction on exports, imports, and net exports in the U.S. economy, and enter your results in the following table. If the direction of change is 'No change,'' enter ''0'' in the Magnitude of Change column. Hint: The magnitude of change should always be positive, regardless of the direction of change. Because of the identity equation that relates)_________ to net exports, the in U.S. net exports Is matched by _________in U.S. net capital outflow. Which of the following Is an example of how the United States might be affected in this scenario?
a. You store the Thai baht in your safety deposit box at home.
b. You purchase THB 48,000 worth of stock in a Thai corporation and THB 32,000 worth of Thai bonds.
c. You exchange the THB 80,000 for dollars at your local bank, which then uses the foreign currency to purchase stock in a Thai corporation.
Answer:
1. a. Exports will increase by THB 80,000
You live in the US and you just sold something to someone outide the US. This is an export so you increased US exports by THB 80,000.
b. Imports will be $0.
You did not import anything from outside the country.
c. Net Exports will be THB 80,000
Net Exports are Exports less imports for a given period.
= 80,000 - 0
= THB 80,000
2. Because of the identity equation that relates to net exports, increase in U.S. net exports Is matched by an increase in U.S. net capital outflow.
As a result of the US exporting goods, money from other countries come into it. This flow of capital into the US contributes to the U.S. net capital outflow.
3. a. You store the Thai baht in your safety deposit box at home.
b. You purchase THB 48,000 worth of stock in a Thai corporation and THB 32,000 worth of Thai bonds.
c. You exchange the THB 80,000 for dollars at your local bank, which then uses the foreign currency to purchase stock in a Thai corporation.
In the first scenario, the US would be affected because even though money came in, it is not being used but it rather sitting ideal at home.
In the other 2 scenarios, the money was not used to purchase thing in the US but rather went back outside the country. This means that capital flowed out of the US so negatively affects her Net Capital Outflow.
Net capital outflow refers to the amount that is credited from the country and debited to the other country. This means the country faces an outflow of funds. Exports are the activity in which the goods and services are delivered to the other parts of the country.
1. a. Exports will increase by THB 80,000
Living in the US and you just sold something to someone outside the US. This is export so you increased US exports by THB 80,000.
b. Imports will be $0.
No imports from the other country.
c. Net Exports will be THB 80,000
Net Exports are Exports fewer imports for a given period.
= 80,000 - 0
= THB 80,000
2. Because of the identity equation that relates to net exports, an increase in U.S. net exports Is matched by an increase in U.S. net capital outflow.
As a result of the US exporting goods, money from other countries comes into it. This flow of capital into the US contributes to the U.S. net capital outflow.
3. a. You store the Thai baht in your safety deposit box at home.
b. You purchase THB 48,000 worth of stock in a Thai corporation and THB 32,000 worth of Thai bonds.
c. You exchange the THB 80,000 for dollars at your local bank, which then uses the foreign currency to purchase stock in a Thai corporation.
In the first scenario, the US would be affected because even though the money came in, it is not being used but it rather sitting ideal at home.
In 2 scenarios, the money was not used to purchase things in the US but rather went back outside the country. This means that capital flowed out of the US so negatively affects her Net Capital Outflow.
To know more about the net capital flow, refer to the link below:
https://brainly.com/question/15291246
During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 80,000 mini refrigerators, of which 72,000 were sold. Operating data for the month are summarized as follows:
1 Sales $10,800,000.00
2 Manufacturing costs:
3 Direct materials $6,400,000.00
4 Direct labor 1,600,000.00
5 Variable manufacturing cost 1,280,000.00
6 Fixed manufacturing cost 320,000.00 9,600,000.00
7 Selling and administrative expenses:
8 Variable $1,080,000.00
9 Fixed 180,000.00 1,260,000.00
Required:
1. Prepare an income statement based on the absorption costing concept.*
2. Prepare an income statement based on the variable costing concept.*
3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2).
Answer:
1. Absorption Costing Income Statement
For the month ended May 31, 2016
Sales $10,800,000
Cost of goods sold
Beginning inventory -
Cost of goods manufactured $9,600,000
Ending Inventory $960,000
Cost of goods sold $8,640,000
Gross margin $2,160,000
Selling and administrative expenses
$1,080,000 + $180,000 $1,260,000
Income from operation $900,000
2. Variable Costing Income Statement
For the month ended May 31, 2016
Sales $10,800,000
Variable cost of goods sold
Beginning Inventory -
Variable cost of goods manufactured $9,280,000
Ending Inventory $928,000
Variable cost of goods sold $8,352,000
Manufacturing margin $2,448,000
Variable selling and administrative $1,080,000
expenses
Contribution margin $1,368,000
Fixed Cost:
Fixed manufacturing cost $320,000
Fixed selling and administrative $180,000
expenses
Total fixed cost $500,000
Income from operation $868,000
3. The reason for difference of amount for income from operation is $32,000 ($900,000 - $868,000). It is due to fixed manufacturing cost which is included for ending inventory under absorption costing (320,000 / 80,000 * 8,000). Hence, income under absorption costing is higher by $32,000 as compared to income under variable costing.
bond j has a coupon rate of 3 percent and bond k has a coupon rate of 9 percent. Both bonds have 13 years to maturity, make semiannual payments, and have a YTM of 6 percent. what if rates suddenly fall by 2 percent instesd?
Answer:
if interest rates fall by 2%
price of bond j will increase to $756.83, price change = $756.83 - $663.28 = $93.55 or 14.1%
price of bond k will increase to $1,317.99, price change = $1,317.99 - $1,224.47 = $93.52 or 7.64%
Explanation:
bond j coupon rate 3%, 13 years to maturity, semiannual payments, YTM 6%
bond k coupon rate 9%, 13 years to maturity, semiannual payments, YTM 6%
current market price of bond j:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
0.03 = {15 + [(1,000 - market value)/26]} / [(1,000 + market value)/2]
0.015(1,000 + market value) = 15 + [(1,000 - market value)/26]
15 + 0.015market value = 15 + 35.46 - 0.038market value
0.05346market value = 35.46
market value = 35.46 / 0.05346 = $663.28
current market price of bond k:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
0.03 = {45 + [(1,000 - market value)/26]} / [(1,000 + market value)/2]
0.015(1,000 + market value) = 45 + [(1,000 - market value)/26]
15 + 0.015market value = 15 + 65.46 - 0.038market value
0.05346market value = 65.46
market value = 65.46 / 0.05346 = $1,224.47
if YTM decrease by 2%, then:
new market price of bond j:
0.02 = {15 + [(1,000 - market value)/26]} / [(1,000 + market value)/2]
0.01(1,000 + market value) = 15 + [(1,000 - market value)/26]
10 + 0.01market value = 15 + 35.46 - 0.038market value
0.05346market value = 40.46
market value = 40.46 / 0.05346 = $756.83
new market price of bond k:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
0.02 = {45 + [(1,000 - market value)/26]} / [(1,000 + market value)/2]
0.01(1,000 + market value) = 45 + [(1,000 - market value)/26]
10 + 0.01market value = 15 + 65.46 - 0.038market value
0.05346market value = 70.46
market value = 70.46 / 0.05346 = $1,317.99
Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $600,700 and has $350,700 of accumulated depreciation to date, with a new machine that has a purchase price of $484,500. The old machine could be sold for $62,600. The annual variable production costs associated with the old machine are estimated to be $155,100 per year for eight years. The annual variable production costs for the new machine are estimated to be $102,300 per year for eight years. a.1 Prepare a differential analysis dated May 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) May 29 Continue with Old Machine (Alternative 1) Replace Old Machine (Alternative 2) Differential Effects (Alternative 2) Revenues: Proceeds from sale of old machine $ $ $ Costs: Purchase price Variable productions costs (8 years) Profit (Loss) $ $ $ a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. b. What is the sunk cost in this situation
Answer:
1.Incremental loss $300
2.Alternative II Replacing the Old Machine is beneficial because we have Incremental Profit of $300
2b.$250,000
Explanation:
1. Preparation of the differential analysis dated May 29
Differential Analysis
Continue with old machine (Alternative I ) or Replace old machine (Alternative II )
Continue with Replace the Differential effect
Old Machine Old Machine
Alternative 1 Alternative 2 Alternative 2
Revenue:
Revenue from Sale of Old Machine
$0 $62,600 $62,600
Cost:
Purchase Cost
$0 $484,500 $484,500
Variable Production (8 Years)
$1,240,000 $818,400 -$422,400
Profit / (Loss) ($1,240,000) ($1,240,300) -$300
Incremental loss = $300
2. Calculation to Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine.
Alternative II Replacing the Old Machine is not beneficial because we have Incremental loss of $300
2b. Calculation for the sunk cost in this situation
The Sunk Cost will be the Book Value of Old Machine = $600,700-$350,700
= $250,000
Variable production workings
($155,100×8=1,240,800)
($102,300×8= 818,400)
The balance sheet of Subsidiary Co. shows assets of $86,400 and liabilities of $15,000. The fair value of the assets is $90,000 and the fair value of its liabilities is $15,000. Parent Co. paid Subsidiary $95,000 to acquire it. Parent should record goodwill on this purchase of:
Answer: $20,000
Explanation:
The following information can be gotten from the question:
Investment in Subsidiary Co. = $95,000
Less: Net asset value = $71,400
Less: Balance sheet adjustment = $3,600
Goodwill = $95,000 - $71,400 - $3,600
= $20,000
Note that:
Net asset value = Asset with book value - Liability with book value
= $86,400 - $15,000
= $71,400
Balance sheet adjusted = Fair value of asset - book value of asset
= $90,000 - $86,400
= $3,600
Sheffield Company has $145,000 of inventory at the beginning of the year and $131,000 at the end of the year. Sales revenue is $1,972,800, cost of goods sold is $1,145,400, and net income is $248,400 for the year. The inventory turnover ratio is:
Answer:
Sheffield Company
Inventory Turnover Ratio = Cost of goods sold/Average Inventory
= $1,145,400/$138,000
= 8.3 times
Explanation:
a) Data and Calculations:
Beginning inventory = $145,000
Ending inventory = $131,000
Average inventory = (Beginning inventory + Ending inventory)/2
= ($145,000 + 131,000)/2
= $138,000
Sales revenue = $1,972,800
Cost of goods sold = $1,145,400
Net income = $248,400
b) The inventory turnover ratio for Sheffield Company is an efficiency ratio that shows how inventory is managed and the number of times Sheffield sells or consumes the inventory during an accounting period. This is why Sheffield Company takes the average of the inventories in order to smoothen seasonal fluctuations in the inventory level during the year. When this ratio divides the number of days in the accounting period, Sheffield will get the days it takes for inventory to be purchased or produced, and then sold or consumed.
Checking a diversified firm's business portfolio for the competitive advantage potential of cross-business strategic fits entails consideration of Group of answer choices
Complete Question:
Checking a diversified firm's business portfolio for the competitive advantage potential of cross-business strategic fits entails consideration of:
Group of answer choices
A. whether the parent's company's competitive advantages are being deployed to maximum advantage in each of its business units.
B. whether the competitive strategies employed in each business act to reinforce the competitive power of the strategies employed in the company's other businesses.
C. whether the competitive strategies in each business possess good strategic fit with the parent company's corporate strategy.
D. the extent to which there are competitively valuable relationships between the value chains of sister business units and what opportunities they present to reduce costs, share use of a potent brand name, create competitively valuable new capabilities via cross-business collaboration, or transfer skills or technology or intellectual capital from one business to another.
E. how compatible the competitive strategies of the various sister businesses are and whether these strategies are properly aimed at achieving the same kind of competitive advantage.
Answer:
D. the extent to which there are competitively valuable relationships between the value chains of sister
business units and what opportunities they present to reduce costs, share use of a potent brand name, create competitively valuable new capabilities via cross-business collaboration, or transfer skills or technology or intellectual capital from one business to another.
Explanation:
Checking a diversified firm's business portfolio for the competitive advantage potential of cross-business strategic fits entails consideration of the extent to which there are competitively valuable relationships between the value chains of sister business units and what opportunities they present to reduce costs, share use of a potent brand name, create competitively valuable new capabilities via cross-business collaboration, or transfer skills or technology or intellectual capital from one business to another.
Generally, a strategic fit exists whenever one or more activities comprising the value chain of various business entities are evidently similar to avail the choice of transferring competitively valuable expertise, resources, or technology from one business entity to another or combine the similar value chain activities of the sister business unit into a single operation so as to maximize profits and lower the cost of production.
Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted.
Sales $610,000
Cost of goods sold 435,000
Salaries 113,000 ($25,000 is indirect)
Utilities 15,600 ($5,700 is indirect)
Depreciation 54,400 ($17,400 is indirect)
Office expenses 29,600 (all indirect)
1. Prepare a departmental income statement for 2019.
2. & 3. Prepare a departmental contribution to overhead report for 2019. Based on these two performance reports, should Jansen eliminate the ski department?
Answer:
1.
Jansen Company
Departmental Income Statement—Ski Department
For Year Ended 2019
Sales 610,000
Less : Cost of goods sold 435,000
Gross profit 175,000
Less; Expenses
Salaries 113,000
Utilities 15,600
Depreciation 54,400
Office expenses 29,600 212,600
Operating loss $37,600
2.
Jansen Company
Departmental Income Statement—Ski Department
For Year Ended 2019
Sales 610,000
Less : Cost of goods sold 435,000
Gross profit 175,000
Less; Direct Expenses
Salaries 88,000 (113,000 - 25,000)
Utilities 9,900 (15,600 - 5,700)
Depreciation 37,000 (54,400 - 17,400)
Total Direct Expenses 134,900
Contribution to overhead $40,100
They should not eliminate the Ski Department because it would contribute $40,100 to overhead.
When China reformed state-owned enterprises, it tried a new approach to choosing managers: it put managerial jobs up for auction. The bids for the jobs consisted of promises of future profit streams that the managers would generate and then deliver to the state. In cases where the incumbent manager was the winning bidder, firm productivity tended to increase dramatically. When outside bidders won, there was little productivity improvement. Assume that incumbent managers and new managers had similar qualifications. True or False: This result is an example of the winner's curse.
Answer:
True
Explanation:
Winner curse is a situation where the bidder win the bid in an auction that exceeds the true worth or intrinsic value of the item auctioning. In the given scenario the inside managers bid for realistic performance. The outside managers tend to bid for higher performance to get the job. They does not seem to be realistic.
The US Public Debt was $18.2 trillion in 2015. This was up from $16.4 trillion in 2012. In 2015, Foreign ownership was 34% of that total, or $6.1 trillion. Of this $6.1 trillion, China held 20%, Japan 18%, and oil exporting nations 5%.
1) How does the fact that 34% (and increasing) of the debt is held by foreigners make you feel?
2) What are potential risks or pitfalls with foreigners owning an increasing amount of the US Debt?
3) How concerned should we feel?
Answer:
1) The fact that 34% and increasing of the debt of The US is held by Foreigners is worrisome
2) some of the pitfalls to this increasing debts owned by Foreigners includes : partial loss of the country sovereignty, devaluation of the dollar and difficulties in meeting repayment conditions
3 ) we as a Nation should feel very concerned and sort for other means of funding instead of accumulating foreign public debts .
Explanation:
Total debt owed in 2015 = $18.2 trillion
Total debt owed in 2012 = $ 16.4 trillion
increase in debt = $1.8 trillion percentage increase = 1.8 / 16.4 * 100 = 10.98%
1) The fact that 34% of the debt of The US is held by Foreigners is worrisome
2) some of the pitfalls to this increasing debts owned by Foreigners includes : partial loss of the country sovereignty, devaluation of the dollar and difficulties in meeting repayment conditions
3 ) we as a Nation should feel very concerned and sort for other means of funding instead of accumulating foreign public debts .
Tyrell Co. entered into the following transactions involving short-term liabilities. Year 1 Apr. 20 Purchased $36,500 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 7%, $35,000 note payable along with paying $1,500 in cash. July 8 Borrowed $66,000 cash from NBR Bank by signing a 120-day, 11%, $66,000 note payable. __?__ Paid the amount due on the note to Locust at the maturity date. __?__ Paid the amount due on the note to NBR Bank at the maturity date. Nov. 28 Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 9%, $36,000 note payable. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 __?__ Paid the amount due on the note to Fargo Bank at the maturity date.
Answer:
April 20, purchased $30,500 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system.
Dr Merchandise inventory 36,500
Cr Accounts payable 36,500
May 19, replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 7% annual interest along with paying $1,500 in cash.
Dr Accounts payable 38,000
Cr Cash 1,500
Cr Notes payable 35,000
July 8, borrowed $66,000 cash from NBR Bank by signing a 120-day, 11% interest-bearing note with a face value of $66,000.
Dr Cash 66,000
Cr Notes payable 66,000
August 17, paid the note to Locust with interest ($35,000 x 7% x 90/365)
Dr Notes payable 35,000
Dr Interest expense 604.11
Cr Cash 35,604.11
November 5, paid the note to NBR Bank with interest ($66,000 x 11% x 120/365)
Dr Notes payable 66,000
Dr Interest expense 2,386.85
Cr Cash 68,386.85
November 28, borrowed $36,000 cash from Fargo Bank by signing a 60-day, 9%, $36,000 note payable.
Dr Cash 36,000
Cr Notes payable 36,000
December 31, recorded an adjusting entry for accrued interest on the note to Fargo Bank ($36,000 x 9% x 33/365 days)
Dr Interest expense 292.93
Cr Interest payable 292.93
January 27, Year 2, paid the amount due on the note to Fargo Bank at the maturity date.
Dr Notes payable 36,000
Dr Interest payable 292.93
Dr Interest expense 239.67
Cr Cash 36,532.60
The smaller the required reserve ratio the larger the simple deposit multiplier. Do you agree or disagree with this statement. Explain your answer.
Answer:
Agree
Explanation:
A deposit multiplier is maximum amount of money that can be created for each unit of reserve. It is key requirement for maintaining economy's basic money supply. The simple deposit multiplier is 1 / rr * change in R. Deposit multiplier is the inverse of reserve ratio. The higher the reserve ratio the lesser will be the deposit multiplier. Reserve ratio is the minimum amount of money that must be kept in the deposit.
A product sells for $240 per unit, and its variable costs are 70% of sales. The fixed costs are $318,000. What is the break-even point in sales dollars?
Answer:
The Break-Even Point in Sales Dollars will be $1,060,000
Explanation:
Contribution Margin Ratio = 100% - Variable Cost Ratio
= 100% - 70%
= 30%
Therefore, the Break-Even Point in Sales Dollars = Total Fixed Costs / Contribution Margin Ratio
= $318,000 / 0.30
= $1,060,000
The Break-Even Point in Sales Dollars will be $1,060,000
What dividend per share would be reported in the financial press for a stock that currently has 4.5% dividend yield and the most recent stock price was $75
Answer: $3.38
Explanation:
Dividend Yield of a stock refers to the dividend paid by the company expressed in terms of a percentage of the current value of the company's stock.
The Dividend therefore is;
= 75 * 4.5%
= $3.375
= $3.38
Currently Acre is charged $3,693,600 Depreciation on the Income Statement of Andrews. Andrews is planning for an increase in this depreciation. On the financial statements of Andrews will this?
Answer: C)Increase Net Cash from Operations on the Cash Flow Statement
Explanation:
The Cash Flow Statement deals with only cash transactions of a business in an effort to know just how much actual cash the business has. The Operations section of the Cash Flow Statement is derived from the Net Income and to get to the Net Income, Depreciation is removed. Because Depreciation is a non-cash expense, and does not actually reduce cash, it is added back when calculating cash from Operations. A larger depreciation therefore would bring in more cash from Operations in the Cash Flow statement.
One of the major criticisms of functionalist theory is that it ____________. a. assumes greater equality leads to a more successful and productive organization b. ignores macro-level factors affecting social organizations c. correctly identifies how informal social networks influence organizations d. tends to gloss over dysfunctions like worker dissatisfaction and alienation e. emphasizes that social groups and organizations are composed of interrelated parts
Answer: D. tends to gloss over dysfunctions like worker dissatisfaction
Explanation:
The correct option is (D) tends to gloss over dysfunctions like worker dissatisfaction and alienation.
Functionalism has come under fire for failing to adequately account for societal change and underestimating the importance of human activity. The main units of study in the functionalist viewpoint are society and its institutions.Functionalism has drawn criticism for underestimating the importance of human activity and for failing to explain social change.What is a criticism of structural functionalism ?The main critique of structural-functionalism is that it is unable to explain why certain social behaviors continue to exist while having no purpose. The primary premise behind. symbolic interactionism is that humans attribute meaning to things based on interactions with others and society.Learn more about functionalist theory https://brainly.com/question/15169486
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StoreAll produces plastic storage bins for household storage needs. The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the product is so high that StoreAll can sell as many of each size as it can produce. The company uses the same machinery to produce both sizes. The machinery can only be run for 3,300 hours per period. StoreAll can produce 9 large bins every hour, whereas it can produce 15 regular bins in the same amount of time. Fixed costs amount to $110,000 per period. Sales prices and variable costs are as follows:
Requirements
1. Which product should StoreAll emphasize? Why?
2. To maximize profits, how many of each size bin should StoreAll produce?
3. Given this product mix, what will the company's operating income?
Answer:
1. Which product should StoreAll emphasize? Why?
StoreAll should emphasize on producing regular bins since the contribution margin per hour generated by that product is much higher.2. To maximize profits, how many of each size bin should StoreAll produce?
Large bins = 0Regular bins = 49,500 units3. Given this product mix, what will the company's operating income?
operating income = $292,050 - $110,000 = $182,050Explanation:
some information is missing, so I looked it up:
large bin regular bin
sales price per unit $10.80 $9
variable costs per unit $4.20 $3.10
contribution margin $6.60 $5.90
units per hour 9 15
contribution margin p/ hour $59.40 $88.50
total contribution margin $196,020 $292,050
Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 9.00 $ 39.00 Variable expenses per unit $ 2.70 $ 14.00 Traceable fixed expenses per year $ 131,000 $ 33,000 Last year the company produced and sold 40,500 units of Weedban and 18,500 units of Greengrow. Its annual common fixed expenses are $101,000. Required: Prepare a contribution format income statement segmented by product lines.
Answer:
Royal Lawncare Company
Income Statement
Total Weedban Greengrow
Sales revenue $1,086,000 $364,500 $721,500
Variable costs $368,350 $109,350 $259,000
Contribution $717,650 $255,150 $462,500
margin
Traceable fixed $164,000 $131,00 $33,000
costs
Segment margin $553,650 $124,150 $429,500
Common fixed $101,000
costs
Net income $452,650
The Great Depression was the worst economic disaster in U.S. history in terms of declines in real GDP and increases in the unemployment rate. Use the data in the following table to calculate the percentage decline in real GDP between 1929 and 1933.
Year Nominal GDP Billions of Dollars GDP Price Deflator (yr 2000 = 100)
1929 103.6 11.9
1933 56.4 8.9
Real GDP changed by _____% over the 4 year period between 1929 and 1933. Enter a percentage value rounded to one decimal place. Include a minus sign if necessary.
Answer: -27.2%
Explanation:
The Real GDP can be calculated using the formula for calculating the Price Deflator which is the current price level for the year.
Price Deflator = (Nominal GDP / Real GDP) * 100
Real GDP = (Nominal GDP/ Price Deflator ) * 100
1929
= (103.6/11.9 )* 100
= $870.588
1933
= (56.4/8.9) * 100
= $633.70787
Percentage Change
= (870.588 - 633.70787) / 870.588
= 0.272
= -27.2%
GDP changed by -27.2% over the 4 year period between 1929 and 1933
Answer:
the answer is b on edge 2020
Explanation:
Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 2/10, net 30, for $9,200. Emma Co. prepaid the $840 shipping charge. Using the perpetual inventory method, which of the following entries will Isabella Co. make to record the payment for the merchandise if Isabella Co. pays within the discount period?
A. Accounts Payable-Emma Co. $15,000
Freight In $750
Cash $14,250
B. Accounts Payable-Emma Co. $15,750
Merchandise Inventory $300
Cash $16,050
C. Accounts Payable-Emma Co. $15,750
Merchandise Inventory $300
Cash $15,450
D. Accounts Payable-Emma Co. $15,000
Freight In $750
Cash $15,750
Answer:
Dr Accounts Payable-Emma Co. $10,040
Cr Merchandise Inventory $184
Cr Cash $9,856
Explanation:
The Journal entry that Isabella Co. will make to record the payment for the merchandise if Isabella Co. pays within the discount period.
Dr Accounts payable-emma Co. $10,040
($9,200+$840)
Cr Merchandise inventory $184
(2%*$9,200)
Cr Cash $9,856
($10,040-$184)
You want to buy a new sports coupe for $74,500, and the finance office at the dealership has quoted you a loan with an APR of 6.9 percent for 36 months to buy the car.
Required:
a. What will your monthly payments be?
b. What is the effective annual rate on this loan?
Answer:
a) Monthly payments = $22,969.38
b) Effective rate of return= 7.12%
Explanation:
Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.
The monthly installment is computed as follows:
Monthly installment= Loan amount/annuity factor
Loan amount; = 74,500
Annuity factor = (1 - (1+r)^(-n))/r
r -monthly rate of interest, n- number of months
r- 6.9%/12 = 0.575 % = 0.00575, n = 36 =
Annuity factor = ( 1- (1+00575)^(-36)/0.00575= 32.434
Monthly installment = Loan amount /annuity factor
= 74,500/32.434= 22,969.38
Required monthly payments = $22,969.38
Effective annual interest rate
Effective rate of return = ((1+r)^n- 1) × 100
where r - monthly interest rate- 6.9%/12 = 0.575%
n- number of months= 12 months
Effective rate of return - (1+00575)^(12) - 1× 100= 7.12%
Effective rate of return= 7.12%
You expect a share of stock to pay dividends of $1.70, $1.95, and $2.20 in each of the next 3 years. You believe the stock will sell for $29.00 at the end of the third year.
a. What is the std, ak price if the discount rate for the stock is 20%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Stock price $ 20.83
b. What is the dividend yield for year 1? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Dividend yield %
c. What will be the dividend yield at the start of year 2? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Dividend yield %
Answer:
A) 20.82
B) Dividend Yield = 8.16%
C) Second Year values:
market price: 23.30 per share
dividend yield: 8.37%
Explanation:
[tex]\left[\begin{array}{ccc}#&Dividends&Discounted\\&1&\\1&1.7&1.42\\2&1.95&1.35\\3&2.2&1.27\\3&29&16.78\\\\&TOTAL&20.82\\\end{array}\right][/tex]
At the third year we have two return the 2.2 dividends and the 29 dollars from the sale.
Dividends yield first year:
1.7 / 20.82 = 0,08165
Second Year:
Market price:
[tex]\left[\begin{array}{ccc}#&Dividends&Discounted\\1&1.95&1.63\\2&2.2&1.53\\2&29&20.14\\&TOTAL&23.3\\\end{array}\right][/tex]
Dividend Yield:
1.95 / 23.3 = 0,08369