Answer:
a. The company pays cash toward an account payable. ⇒ Decreases an asset and decreases liability.
Cash is an assets and is reduced by this transaction. Accounts payable is a liability that is also reduced by this.
b. The company purchases equipment on credit. ⇒ Increases an asset and increases a liability.
Equipment is an asset so buying it increases assets. It was bought on credit however so liabilities increased.
c. The owner invests cash in the business. ⇒ Increase in assets and increase in equity.
Money brought into a business by the owner is equity and that increased here so this is an increase in equity. Cash is an asset so when it increases, so do assets.
d. The company pays workers for wages earned. ⇒ Decrease in asset and decrease in equity.
Cash was used to pay the workers so assets reduce. Wages earned are an expense that are reduced from income which is equity so equity reduces as well.
e. The company purchases supplies for cash. ⇒ Increase in asset and decrease in asset.
Purchases bring in inventory which are assets so assets increase. Cash was used to buy the asset and so it will reduce so assets will reduce. There is no net effect as these cancel each other out.
f. The company provides services for cash. ⇒ Increase in assets and increase in equity.
Services bring in income which is an equity transaction so equity increases. Cash increases as well as these services bring more cash so assets increase.
g Because the monopolist is the only firm in the market, its demand curve Group of answer choices upward-sloping Vertical Flat. downward-sloping. Flag question: Question 2
Answer:
downward-sloping
Explanation:
If the government of Balancia runs a deficit of $50 million per year in Year 1 and in Year 2 due to its recession, but then has a $100 million surplus in Year 3 due to strong economic recovery, Balancia is likely following which type of rule?
Answer:
Cyclically balanced budget
Explanation:
Heinz Company began operations on January 1, 2020, and uses the FIFO method in costing its raw material inventory. Management is contemplating a change to the LIFO method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed:
Final Inventory
2017 2018
FIFO $640,000 $712,000
LIFO $560,000 $636,000
Net Income
(computed under the FIFO method) $980,000 $1,030,000
Based on the above information, a change to the LIFO method in 2020 would result in net income for 2018 of ________.
a. $1,070,000
b. $1,030,000
c. $954,000
d. $950,000
Answer: $954,000
Explanation:
Thw difference in the final inventory between the FIFO and the LIFO method in 2018 will be:
= $712,000 - $636,000
= $76,000
Then, based on the above information, a change to the LIFO method in 2018 would result in net income for 2018 of:
Net income as per FIFO = $1,030,000
Less: Decrease in income = $76,000
Net income as per LIFO = $954,000
Monte Motors sells two different products. Following are the monthly revenues and costs. Product A Sales Quantity: 10,000 units Sales Price per Unit: $6.00 Variable Costs per Unit: $1.25 Product B Sales Quantity: 30,000 Units Sales Price per Unit: $2.50 Variable Costs per Unit: $0.75 Total fixed costs are $200,000. What is the break-even point for this company in units
Answer:
80,000 units
Explanation:
First, calculate the contribution margin of both products using the following formula
Contribution margin = Selling Price - Variable cost
Product A
CM = $6 - $1.25 = $4.75
Product B
CM = $2.5 - $0.75 = $1.75
Now calculate the Weighted average contribution margin
Weighted average contribution margin = ( $4.75 x 10,000 / ( 10,000 + 30,000 ) ) + ( $1.75 x 30,000 / ( 10,000 + 30,000 ) ) = $1.1875 + $1.3125 = $2.50
Use the following formula to calculate the breakeven point in unit
Breakeven point in unit = Fixed Cost / Weighted average contribution margin = $200,000 / $2.50 = 80,000 units
Identify a chart of accounts, using correct headings from the list of account titles below: Account Titles Chart of Accounts Accounts Payable Accounts Receivable Building Cash Equipment Insurance Expense Prepaid Insurance Rent Expense Service Fees Dunlop, Capital Dunlop, Drawing Supplies Wage Expense Wages Payable
Answer:
The question wants the given accounts to be grouped by what type of account they are. For instance, Accounts Payable is a liability.
Liabilities:
Accounts Payable Wages payableAssets
Accounts Receivable Building Cash Equipment Prepaid Insurance SuppliesExpenses
Insurance expense Rent expense Wage expenseRevenue
Service feesOwner's Equity
Dunlop, CapitalDunlop, DrawingAt December 31, 2018, Oriole Company reported the following information on its balance sheet.
Accounts receivable $948,000
Less: Allowance for doubtful accounts 78,000
During 2019, the company had the following transactions related to receivables.
1. Sales on account $3,609,930
2. Sales returns and allowances 51,000
3. Collections of accounts receivable 2,756,000
4. Write-offs of accounts receivable deemed uncollectible 97,000
5. Recovery of bad debts previously written off as uncollectible 28,000
Compute the accounts receivable turnover for 2019, assuming the expected bad debt information provided in (c). (Round answer to 2 decimal places, e.g. 25.25.)
Answer:
Bad debt expense (Dr.) $68,930
Allowance for Doubtful Debt (Cr.) $68,930
Explanation:
Accounts Receivable :
Balance $948,000
Add: Sales $3,609,930
Less: Sales returns $51,000
Less: Collections $2,756,000
Less: Write offs $97,000
Add: Recovery of old Bad debts $28,000
Adjusted Balance $1,653,930
Bad Debts :
Balance $78,000
Less: Allowance for doubtful debts $97,000
Less: Recovery $28,000
Adjusted Balance $9,000
If a country changes its corporate tax laws so that domestic businesses build and manage more business in other countries, then the net capital outflow of that country Group of answer choices
Answer: falls and the net capital outflow of other countries rise
Explanation:
Net capital outflow refers to the net flow of funds that's invested abroad by a particular country at a particular period. It should be noted that a positive net capital flow simply means that such country invests more outside more than than what the other parts of the world invests in it.
Given the question above, since the country changes its corporate tax laws so that domestic businesses build and manage more business in other countries, it means that the net capital outflow of that country falls and the net capital outflow of other countries rise.
15. Assume that Bullen issued 12,000 shares of common stock, with a $5 par value and a $47 fair value, to obtain all of Vicker's outstanding stock. In this acquisition transaction, how much goodwill should be recognized
Answer:
$104,000
Explanation:
Note: The full question is attached as picture below
Fair value of net assets = Cash and receivables + Inventory + Land + Buildings (net) + Equipment (net) - Liabilities
Fair value of net assets = $70,000 + 210,000 + 240,000 + 270,000 + 90,000 - 420,000
Fair value of net assets = $460,000
Purchase consideration paid = 12,000*$47
Purchase consideration paid = $564,000
Goodwill recognized = Purchase consideration - Fair value of net assets
Goodwill recognized = $564,000 - $460,000
Goodwill recognized = $104,000
At the beginning of 20X1, a company issues 100,000 shares of 4%, $10 par value, cumulative preferred stock. All remaining shares outstanding are common stock. The company does not pay any dividends in 20X1, but pays dividends of $100,000 at the end of 20X2. How much of the dividend will be paid to common stockholders in 20X2?
a. $20,000.
B. $100,000.
C. $80,000.
D. $60,000.
Answer:
a. $20,000.
Explanation:
The computation of the dividend that will be paid to common stockholders in 20X2 is shown below:
= $100,000 - ($100,000 × 10 × 4% × 2 years)
= $100,000 - $80,000
= $20,000
Hence, the dividend that will be paid to common stockholders in 20X2 is $20,000
Therefore the option a is correct
f a business has fixed costs of $1k a month, variable costs of $1k a month and has product sales of $2k a month, what statement is a correct analysis of the situation
Answer:
The correct option is b. The business is realizing $0 profit and the business is at break-even point.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
If a business has fixed costs of $1k a month, variable costs of $1k a month and has product sales of $2k a month, what statement is a correct analysis of the situation?
a. The business is realizing $2k profit and the business is at break-even point
b. The business is realizing $0 profit and the business is at break-even point
c. The business is realizing $2k loss and the business is at break-even point
d. The business is realizing $2k profit
The explanation of the answer is now provided as follows:
Total cost = Fixed cost + Variable cost = $1K + $1K = $2k
Total revenue = Product sales = $2k
Profit = Total revenue - Total cost = $2k - $2k = $0
When a business makes $0 profit, it implies that the business is at break-even point.
Therefore, the correct option is b. The business is realizing $0 profit and the business is at break-even point.
Dazzle Inc produces beads for jewelry making use . The following information summarizes production operations for June . The journal entry to record June production activities for overhead allocation is
Answer:
Missing wordings "Direct materials used $104,000, Direct labor used 177,000, Predetermined overhead rate (based on direct labor) 160 %, Goods transferred to finished goods 449,000, Cost of goods sold 461,000, Credit sales 980,000"
Factory overhead = Direct Labor used * Predetermined Overhead rate
Factory overhead = 177,000 * 160%
Factory overhead = 283,200
Journal Entry Debit Credit
Work in Process Inventory $283,200
Factory Overhead $283,200
Kuley owns two investments, A and B, that have a combined total value of $73.600. Investment A is expected to pay $53,000 in 5 years from today and has an expected return of 8.41 percent per year. Investment B is expected to pay $61,400 in 8 years from today and has an expected return of R per year. What is R, the expected annual return for investment B
Solution :
The present value is given by :
[tex]$PV = \frac{FV}{(1+r)^n}$[/tex]
Here r = interest rate per period
n = number of periods
Particulars Amount
Future value $ 53,000
Interest rate 8.41%
Periods 5
The present value is :
[tex]$PV = \frac{FV}{(1+r)^n}$[/tex]
[tex]$ = \frac{53,000}{(1+0.0841)^5}$[/tex]
[tex]$=\frac{53000}{1.4974}$[/tex]
= $ 35,393.96
Therefore, the value of investment A is $ 35,393.96
The value of investment of B = Combined value - value of A
= $ 73600 - $ 35393.96
= $ 38,206.04
The Future Value
[tex]$FV=PV \times (1+r)^n$[/tex]
Particulars Amount
Present value $ 38,206.04
Future value $ 61,400
Periods 8
Therefore, the future value is :
[tex]$FV=PV \times (1+r)^n$[/tex]
[tex]$61,400=38,206.04 \times (1+r)^8$[/tex]
[tex]$(1+r)^8 = \frac{61400}{38206.04}$[/tex]
[tex]$(1+r)^8 = 1.6071$[/tex]
(1 + r) = 1.061096
r = 1.061096 - 1
r = 0.061096
r = 6.1096 %
Therefore, the interest rate per annum is 6.1096%
Marketing communication
Answer:
yes
Explanation:
It's popular!
A company reports the following income statement and balance sheet information for the current year:
Net income $424,000 Interest expense 80,000 Average total assets 4,200,000
Determine the return on total assets. (Round percentages to one decimal place.)
______%
Answer:
10.1%
Explanation:
Given the above information, return on total asset is computed as;
Return on total asset = Net income / Average total assets
Net income = $24,000
Average total assets = $4,200,000
Therefore,
Return on total assets = $424,000 / $4,200,000
Return on total assets = 10.1%
Answer:
10.1%
Explanation:
Determine the return on total assets. (Round percentages to one decimal place.) 10.1%
As a manager, you have been asked to work with your employees to develop goals. What can you expect from this process? Check all that apply.
A: The advantages of setting goals and making plans always outweigh the disadvantages for every organization in any environment.
B: When deciding whether goals and plans will be beneficial, managers should consider whether the environment is more stable or more dynamic.
C: Planning can harm an organization because it distracts employees from important outcomes.
D: A benefit of goals is that they help motivate employees.
Answer:
If you can choose more than 1 answer I would choose these B and D
As a manager, when you have been asked to work with your employees to develop goals, the expectations from this process is
When deciding whether goals and plans will be beneficial, managers should consider whether the environment is more stable or more dynamic.A benefit of goals is that they help motivate employees.Thus options B and D are correct.
What is Manager?A manager is refer to an individual in an organization who is responsible for coordinating and controlling the functions of the organization and helps to perform business activities smoothly and timely.
When a manager is asked to work with employees to develop business goals this will appear as an increased motivation among employees as they feel valued for their contribution to goal setting will be taken.
As culture has a vital influence on growth and development, managers should pay attention to the environment when determining if goals and plans would be beneficial.
Therefore, options B and D are the appropriate answers.
Learn more about Managers, here:
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Which of the following is an example of government expenditure on goods and services? A. The purchase of office supplies for the office of the junior senator from New York B. The salaries paid to Washington correspondents from major networks and newspapers C. All expenditure by lobbyists D. Welfare payments
Answer:
D
Explanation:
Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on January 1. The market interest rate for bonds of similar risk and maturity is 8%. Salt Foods receives interest semiannually on June 30 and December 31.
1. Record the investment in bonds.2. Record receipt of the first interest payment on June 30.
Answer and Explanation:
The journal entries are shown below;
a. Investment Dr $37,282
To Cash $37,282
(being the investment in bonds is recorded)
b.
Cash (($1,000 × $40) × 0.07 × 6 ÷ 12) $1,400
Investment $91
To interest revenue ($37,282 ×8% × 6 ÷ 12) $1,491
(Being the first interest payment is recorded)
A firm has an equity beta of 1.2, the risk-free rate is 3.4 percent, the market return is 15.7 percent, and the pretax cost of debt is 9.4 percent. The debt-equity ratio is .47. If you apply the common beta assumptions, what is the firm's asset beta
Answer:
0.82
Explanation:
Calculation to determine the firm's asset beta
Using this formula
Firm's asset beta=Equity beta/(1+/D/E)
Let plug in the formula
Firm's asset beta=1.2/(1+0.47)
Firm's asset beta=1.2/1.47
Firm's asset beta=0.816
Firm's asset beta=0.82 (Approximately)
Therefore the firm's asset beta is 0.82
The following information describes a company's usage of direct labor in a recent period! Actual Hours Used 22000Actual Rate per Hour 15Standard Rate per Hour 14 Standard Hours for Units Produced 23500The direct labor RATE variance is:__________. A. $21,000 Favorable B. $21,000 Unfavorable C. $22,000 Favorable D. $22,000 Unfavorable E. $23,500 Unfavorable The direct labor EFFICIENCY variance is:_______. A. $21,000 Favorable B. $21,000 Unfavorable C. $22,000 Favorable D. $22,000 Unfavorable E. $23,500 Unfavorable
Answer:
Results are below.
Explanation:
Giving the following information:
Actual Hours Used 22,000
Actual Rate per Hour 15
Standard Rate per Hour 14
Standard Hours for Units Produced 23,500
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (14 - 15)*22,000
Direct labor rate variance= $22,000 unfavorable
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (23,500 - 22,000)*14
Direct labor time (efficiency) variance= $21,000 favorable
James mortgaged his house and received a certain amount of money in return as a loan. However, he repaid half the loan in six months. Which of the following is likely to be true in this scenario, at the present moment?
A) The mortgagee has an insurable interest towards 25 percent of the loan amount.
B) The mortgagee has an insurable interest towards the entire loan amount.
C) The mortgagee does not have an insurable interest in the loan amount.
D) The mortgagee has an insurable interest towards half the loan amount.
Answer:B
Explanation:
The Freeman Corporation issues 2,000, 10-year, 8%, $1,000 bonds dated January 1 at 96. The journal entry to record the issuance will show a:___.
a. debit to Cash of $2,000,000.
b. credit to Discount on Bonds Payable for $80,000.
c. credit to Bonds Payable for $1,920,000.
d. debit to Cash for $1,920,000.
Answer:
d. debit to Cash for $1,920,000
Explanation:
Journal entry
Date Account titles and Explanation Debit Credit
Cash $1,920,000
(2,000*$1,000*0.96)
Discount on Bonds Payable $80,000
(2,000*$1,000*0.04)
Bonds Payable $2,000,000
Preppy Co. makes and sells a single product. The current selling price is $30 per unit. Variable costs are $21 per unit, and fixed expenses total $90,000 per month. Sales volume for July totaled 12,000 units.
Required:
a. Calculate the operating income for July.
b. Calculate the break-even point in units sold and total revenues.
Answer and Explanation:
The computation is shown below:
(a)
Sales = 30 × 12,000 units = $360,000
(Less) variable costs = 21 × 12,000 units = $252,000
(Less) fixed costs = $90,000
Operating income = $18,000
(b)
Break even point in units be X
X × 30 = X × 21 + $90,000
9X = $90,000
X = 10,000 units
Now
Break even point in dollars is
= 10,000 × $30
= $300,000
What was the result in the Lucy v. Zehmer case (referenced in the textbook) involving whether allegations of joking regarding the sale of land prevented the formation of a contract
Answer:
The Supreme Court ruled in favour of the Complainants, enforcing the contract.
Explanation:
The Lucy Vs Zehmer case was one of decision on if a contract was binding or not on the basis of the undisclosed intentions of the parties involved in the contract. Zehmer alleged that he had jokingly sold and transferred title to Lucy while drunk. However the court ruled that contract for the sale of land to Lucy was valid on the basis that the secret intentions of Zehmer was not known or disclosed in the sale of the land and only his actions count for the contract to be binding.
The journal entry to record the issuance of a note for the purpose of converting an existing account payable would be:_______
a. debit Cash; credit Accounts Payable
b. debit Accounts Payable; credit Cash
c. debit Cash; credit Notes Payable
d. debit Accounts Payable; credit Notes Payable
Riley Company borrowed $36,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 7% annual interest rate. Riley earned cash revenue of $1,700 in Year 1 and $1,400 in Year 2. Assume no other transactions. The amount of total liabilities that would appear on Riley's December 31 balance sheets for Year 1 and Year 2, respectively, would be:_____.A) $36,000 and $0. B) $37,890 and $0. C) $37,890 and $38,520. D) $1,890 and $630.
Answer:
B) $37,890 and $0
Explanation:
Calculation to determine The amount of total liabilities that would appear on Riley's December 31 balance sheets for Year 1 and Year 2, respectively, would be
Total liabilities=$36,000+($36,000 * 7% * 9/12)
Total liabilities = $36,000+$1,890
Total liabilities = $37,890
Therefore The amount of total liabilities that would appear on Riley's December 31 balance sheets for Year 1 and Year 2, respectively, would be $37,890
_________ used ingredient branding, which resulted in end consumers requiring that their product be included by the OEM’s.
Answer:
Intel
Explanation:
Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.
Ingredient branding can be defined as a strategic marketing plan or technique which typically involves branding a component of a business firm or organization as a separate entity so as to project its high performance and quality.
Intel is a multinational corporation (MNC) that uses ingredient branding such as "Intel inside", which stimulate end consumers to request that Intel's product such as processors be included by the original equipment manufacturers (OEM's).
What is expansionary policy used for?
Answer:
to stimulate an economy
Explanation:
it stimulates the economy by boosting demand through monetary
A rookie quarterback is in the process of negotiating his first contract. The team's general manager has offered him three possible contracts. Each contract lasts for four years. All of the money is guaranteed and is paid at the end of each year. The payment terms of the contracts are as follows:
(dollars in millions)
Year Contract 1 Contract 2 Contract 3
1 $1.50 1.0 3.5
2 $1.50 1.5 0.5
3 $1.50 2 0.5
4 $1.50 2.5 0.5
The quarterback discounts all the cash flows at 12%. Which of the three contracts offers the most value? (Hint: Calculate the present value of future cash flows)
Answer:
Contract 2 offers the most value.
Explanation:
a) Data and Calculations:
Payment terms of the contracts:
(dollars in millions)
Year Contract 1 Contract 2 Contract 3
1 $1.50 1.0 3.5
2 $1.50 1.5 0.5
3 $1.50 2 0.5
4 $1.50 2.5 0.5
Discount rate = 12%
Present value of Contract 1:
PV annuity factor at 12% for 4 years = 3.037
PV annuity of $1.50 = $1.50 * 3.037 = $4.5555 or $4,555,500
Present value of Contract 2:
$1.0 * 0.893 = $0.893
$1.5 * 0.797 = 1.1955
$2 * 0.712 = 1.424
$2.5 * 0.636 = 1.59
Total = $5.1025 or $5,102,500
Present value of Contract 3:
$3.5 * 0.893 = $3.1255
$0.5 * 0.797 = 0.3985
$0.5 * 0.712 = 0.356
$0.5 * 0.636 = 0.318
Total = $4.198 million or $4,198,000
Which of the following statements is an example of wording that might be included in an
informative advertisement?
a. Machine washable
b. The route to good health
c. Used by the "Whatsit" pop group
d. To keep you young and beautiful
Answer:
a. Machine washable
Explanation:
An informative advertisement is an advert focused on being fact based, unbiassed and accurate. An advert is of the informative form, when it only makes reference to the attributes, advantages, and the tasks the service or goods can do well, in place of making use of emotions to persuade a consumer into purchasing a commodity
From the given options, the statement which is an example of wording that might be included in an informative advertisement is option a. 'Machine washable', because it refers to the strength of the goods which as stated, can be washed with a washing machine
The BRS Corporation makes collections on sales according to the following schedule:45% in month of sale50% in month following sale5% in second month following saleThe following sales have been budgeted:Sales April $ 160,000May $ 180,000June $ 170,000Budgeted cash collections in June would be:___________a) $170,800b) $166,500c) $170,000d) $174,500
Answer:
$170,500
Explanation:
Calculation to determine what the Budgeted cash collections in June would be
Cash collections for June:March credit sales collected in June ($160,000 × 45%)$72,000
February credit sales collected in June ($180,000 × 50%) $90,000
January credit sales collected in June ($170,000 × 5%) $8,500
Total cash collections in June $170,500
Therefore the Budgeted cash collections in June would be:$170,500