Answer:
True of financial account auditors.
Explanation:
A financial account auditor often act as skeptics (having suspicion and lack of trust) when reviewing financial transactions.
Thus financial accounts adjustments that increase or decrease earnings are usually investigated with more skepticism by auditors. Such increased skepticism is important because it enables the auditor undo errors and better position the business for success.
3. What techniques would you use as alternatives to traditional discipline? What do such alternatives have to do with organizational justice? Why do you think alternatives like these are important, given industry’s need today for highly committed employees?
Answer & Explanation: Traditional discipline refers to correctional strategies. Often times, this form of discipline is punitive in nature hence the use of alternatives.
Some alternatives to traditional discipline include the use of MEDIATION, FACILITATION, COUNSELLING.
The use of alternatives to traditional discipline is important to organizational justice when it is complied with across board all employees so that they have a perception of fairness. Also such alternatives are seen to be ethically right, leads to employees being committed, reduces employee turnover and prevents avoidable litigation.
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:
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.
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.
You decide to borrow $100,000 at the riskless interest rate, and you then invest all $300,000 ($200,000 of your own cash and the $100,000 borrowed cash) in the market index fund. Calculate the expected return and standard deviation of this investment portfolio
You have $200,000 of cash. The riskless interest rate is 3%. The market index fund has an expected return of 10% and a standard deviation of 20%
You decide to borrow $100,000 at the riskless interest rate, and you then invest all $300,000 ($200,000 of your own cash and the $100,000 borrowed cash) in the market index fund. Calculate the expected return and standard deviation of this investment portfolio
Answer:
The expected return of this portfolio = 13.50%
standard deviation of this portfolio = 30.00%
Explanation:
From the information given:
The percentage of riskless = -100000/200000
The percentage of riskless = -0.50%
Now; the investment in market index = 1.50%
The expected return of this portfolio = 1.50 × 10% + ( - 0.5 ×3 %)
The expected return of this portfolio = 1.50 × 0.1 - 0.5 × 0.03
The expected return of this portfolio = 0.15 - 0.015
The expected return of this portfolio = 0.135
The expected return of this portfolio = 13.50%
standard deviation of this portfolio = the investment in market index × market index standard deviation
standard deviation of this portfolio = 1.50 × 20%
standard deviation of this portfolio = 30.00%
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.
Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of foreign ___________ in Argentina.
1. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries?
a. Protecting property rights and enforce contracts
b. Providing tax breaks and patents for firms that pursue research and development in health and sciences.
c. Increasing taxes on income from savings
d. Imposing restrictions on foreign ownership of domestic capital.
2. In less developed countries, what does the brain drain refer to?
a. The emigration of highly skilled workers to rich countries
b. Lower productivity due to a malnourished workforce
c. Rapid population growth that increases the burden on the educational system
d. Rapid population growth that lowers the stock of capital per worker
Answer:
Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of foreign PORTFOLIO INVESTMENT in Argentina.
1. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries?
a. Protecting property rights and enforce contracts b. Providing tax breaks and patents for firms that pursue research and development in health and sciences.Both A and B are essential for increasing economic growth. E.g. if Coke was not able to keep its formula secret in certain country, it will not engage in business there. Investment in R&D is essential for future economic growth.
2. In less developed countries, what does the brain drain refer to?
a. The emigration of highly skilled workers to rich countriesBrain drain refers to the immigration of highly skilled workers from poor countries into rich countries. E.g. a doctor moves from mexico to the US because he/she can earn a much higher salary. But at the same time, all the money and time spent educating the doctor is lost by Mexico and its economy.
Which of the following could be considered barriers to entry that would prevent potential competitors from entering a monopoly market?
Select the two correct answers below.
a) patent and copyright laws
b) few workers in the industry
c) extremely high demand for a certain product
d) ownership of a critical factor of production
Answer:
a) patent and copyright laws
d) ownership of a critical factor of production
Explanation:
a monopoly is when there is only one firm operating in an industry.
the different reasons why monopoly exists are :
ownership of a key resource. this is natural monopoly
high start up cost
legal barriers - patent and copyright laws
Economies of scale.
You have just made your first $5,000 contribution to your individual retirement account. Assume you earn an annual return of 10.65 percent and make no additional contributions.
Required:
a. What will your account be worth when you retire in 42 years?
b. What if you wait 10 years before contributing?
Answer:
Results are below.
Explanation:
Giving the following information:
Initial investment= $5,000
i= 10.65%
To determine future value, we need to use the following formula:
FV= PV(1+i)^n
For 42 years:
FV= 5,000*(1.1065^42)
FV= $350,695
Now, for 32 years:
FV= 5,000*(1.1065^32)
FV= $127,472.17
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)
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)
You have just turned 40 years old and are trying to decide who much money to put into your retirement plan. The plan works as follows: Every dollar in the plan earns 7% per year. You cannot make withdrawals until you retire on your sixty-fifth birthday. After that point, you can make withdrawals as you see fit. You decide that you will plan to live to 95 and work until your turn 65. You estimate that to live comfortably in retirement, you will need $250,000 per year starting at the end of the first year of retirement and ending on your 95th birthday. You already have $200,000 in the retirement plan. You will contribute the same amount to the plan at the end of every year that you work, starting next year. How much do you need to contribute each year to fund your retirement
Answer:
$31,886.09
Explanation:
years until retirement = 65 - 40 = 25 years
interest earned 7%
retirement age 65
expected life span after retiring = 95 - 65 = 30 years
financial needs during retirement $250,000 per year
current account balance $200,000
we must first determine how much money you will need when you are 65:
present value = $250,000 x 12.409 (PV annuity, 30 years, 7%) = $3,102,250
your $200,000 will be worth $200,000 x (1 + 7%)²⁵ = $1,085,486.53 in 25 years
so you need $3,102,250 - $1,085,486.53 = $2,016,763.47 extra
using the FV formula for an annuity:
$2,016,763.47 = payment x 63.249 (FV annuity, 25 years, 7%)
payment = $2,016,763.47 / 63.249 = $31,886.09
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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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 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 .
The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2017: Beginning balances were: Cash, $93,000; Taxes Receivable, $189,500; Accounts Payable, $52,250; and Fund Balance, $230,250. The budget was passed. Estimated revenues amounted to $1,230,000 and appropriations totaled $1,227,400. All expenditures are
Answer:
Estimated Revenue Control (Dr.) $1,230,000
Appropriation (Cr.) $1,227,400
Budgetary Fund (Cr.) $2,600
Tax receivable (Dr.) $189,500
Revenue (Cr.) $189,500
Cash (Dr.) $93,000
Tax receivable (Dr.) $96,500
Revenue (Cr.) $189,500
Expenditure Control (Dr.) $52,250
Accounts Payable (Cr.) $52,250
Accounts Payable (Dr.) $52,250
Cash (Cr.) $52,250
Explanation:
Buffalo Falls earned and received tax revenue of $189,500. This will be reflected on debit side when journal entry is made and revenue is credited as per transaction. The company has now recorded a transaction of expenditure control of $52,250. These transaction are recorded by debiting the expenditure control account and crediting the accounts payable.
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
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.
how to solve this problem:If a borrower can afford to make monthly principal and interest payments of $1,000 and the lender will make a 30-year loan at 5-1/2%, or a 20-year loan at 4-1/2%, what is the largest loan (rounded to the nearest $100) this buyer can afford?
Answer:
30-year loan at 5-1/2% ⇒ MAXIMUM LOAN $176,100
using a loan amortization table, you will pay $5.6786 for every $1,000 that you borrow, so you can borrow up to $1,000 / $5.6786 = 176.1 thousands
principal = $176,100
first payment:
interests = $176,100 x 0.055 x 1/12 = $807.13
repaid principal = $192.87
20-year loan at 4-1/2% ⇒ MAXIMUM LOAN $158,000
using a loan amortization table, you will pay $6.3291 for every $1,000 that you borrow, so you can borrow up to $1,000 / $6.3291 = 158 thousands
principal = $158,000
first payment:
interests = $158,000 x 0.045 x 1/12 = $592.50
repaid principal = $407.50
1. The maximum loan a borrower can take, if he can afford to make a monthly payment of $1,000, including principal and interest, for a 30-year loan at 5.5% interest, is $176,100.
2. The maximum loan a borrower can take, if he can afford to make a monthly payment of $1,000, including principal and interest, for a 20-year loan at 4.5% interest, is $158,100.
Data and Calculations:
a) N (# of periods) 360 months (30 x 12)
I/Y (Interest per year) = 5.5%
PMT (Periodic Payment) = $1,000
FV (Future Value) = $0
Results:
PV = $176,121.76
Sum of all periodic payments = $360,000 ($1,000 x 360)
Total Interest = $183,878.24
b) N (# of periods) = 240 months (20 x 12)
I/Y (Interest per year) = 4.5%
PMT (Periodic Payment) = $1,000
FV (Future Value) = $0
Results:
PV = $158,065.44
Sum of all periodic payments = $240,000 ($1,000 x 240)
Total Interest = $81,934.56
Thus, to solve this problem, input $1,000 as the periodic payment on a financial calculator and then calculate the present value of $1,000 at the interest rate for the given period.
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The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense. Accounts receivable$441,000Debit Allowance for Doubtful Accounts 1,310Debit Net Sales 2,160,000Credit All sales are made on credit. Based on past experience, the company estimates 1.0% of credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Answer:
The Adjusting entry at the end of the current year to record its estimated bad debts expense is:
Journal Entry:
Debit Bad Debts Expense $22,910
Credit Allowance for Doubtful Accounts $22,910
To record the bad debts expense and bring the Allowance for Doubtful Accounts to a credit balance of $21,600.
Explanation:
a) Allowance for Doubtful Accounts
Beginning balance $1,310 Dr.
Ending balance 21,600
Uncollectible Expense = $22,900
b) Uncollectible for the period = 1% of $2,160,000 = $21,600
This should be the ending balance of the Allowance for Doubtful Accounts.
c) The above journal entry will ensure that the balance in the Allowance for Doubtful Accounts is now $21,600 credit.
Because you can adapt to your audience while you are speaking, don't worry about analyzing the audience for an oral presentation.
A. True
B. False
Answer:
B. False.
Explanation:
This statement is false, due to the fact that a good oral presentation must be prepared before the presentation in accordance with all the procedures to be covered in the presentation. Therefore, the ideal is to know your audience before the presentation, so that there is a preparation aligned with their values and behaviors, in order to retain the attention and interaction of the participants, which makes the presentation more interesting and effective.
Scripting the presentation also avoids possible unforeseen events, in addition to being ideal to also be open to interactions, to provide important and impactful information, to prepare supporting material such as slides, and to always practice before the presentation, to be prepared and interacted on the subject addressed.
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.
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%
In May direct labor was 35% of conversion cost. If the manufacturing overhead for the month was $116,350 and the direct materials cost was $20,200, the direct labor cost was:
Answer:
Direct labor= $62,650
Explanation:
Giving the following information:
In May direct labor was 35% of conversion cost.
The manufacturing overhead for the month was $116,350.
The conversion costs are the sum of the direct labor and the manufacturing overhead:
Overhead= 65%= 116,350
Direct labor= 35%= ?
First, we need to determine the total amount of conversion costs:
Conversion costs= 116,350/0.65= 179,000
Now, the direct labor cost:
Direct labor= 179,000*0.35
Direct labor= $62,650
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
At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2017, it has outstanding accounts receivable of $55,000, and it estimates that 2% will be uncollectible. Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has: (a) a $415 credit balance before the adjustment. (b) a $291 debit balance before the adjustment.
Answer:
Mazie Supply Co.
Adjusting entries under the assumptions that the allowance for doubtful accounts has:
a) A $415 credit balance before the adjustment:
Debit Bad Debts Expense $685
Credit Allowance for Doubtful Accounts $685
To record the bad debts expense for the year.
b) A $291 debit balance before the adjustment:
Debit Bad Debts Expense $1,391
Credit Allowance for Doubtful Accounts $1,391
To record bad debts expense and bring the allowance for doubtful accounts to a balance of $1,100.
Explanation:
a) Accounts Receivable outstanding = $55,000
Uncollectible estimate of 2% = $1,100
b) With a credit balance of $415, the balance will be brought to $1,100 with an adjusting amount of $685 ($1,100 - $415).,
c) With a debit balance of $291, the balance will be brought to $1,100 with an adjusting amount of $1,391 ($1,100 + 291).
d) When the allowance for doubtful accounts has a credit balance, the bad debts expense is calculated as the difference between the new balance and the old credit balance. But, if the allowance for doubtful accounts has a debit balance, the bad debts expense would be the addition of the estimated allowance and the debit balance. These actions will respectively bring the balance of the allowance for doubtful accounts to the new estimated balance.
ROI: Fill in the Unknowns Provide the missing data in the following situations: North American Division Asian Division European Division Sales Answer $5,000,000 Answer Net operating income $80,000 $200,000 $168,000 Operating assets Answer Answer $700,000 Return on investment 16% 10% Answer Return on sales 0.04 Answer 0.16 Investment turnover Answer Answer 1.5
Answer and Explanation:
The computation of the missing data is shown below:
Particulars North American Asian European
division Division Division
Sales $2,000,000 $5,000,000 $1,050,000
Net Operating
Income $80,000 $200,000 $168,000
Operating
assets $500,000 $2,000,000 $700,000
Return on
Investment 16% 10% 24%
Return on sales 0.04 0.04 0.16
Investment
turnover 4 2.5 1.5
Working notes :
1. For North American division
Sales is
= Net operating income ÷ return on sales
= $80,000 ÷ 0.04
= $2,000,000
Operating assets is
= Net Operating income ÷ return on investment
= $80,000 ÷ 16%
= $500,000
Investment turnover is
= Sales ÷ operating assets
= $2,000,000 ÷ $500,000
= 4
For Asian Division
Operating assets is
= Net operating income ÷ return on investment
= $200,000 ÷ 10%
= $2,000,000
Return on sales is
= Net Operating income ÷ sales
= $200,000 ÷ $5,000,000
= 0.04
Investment turnover is
= Sales ÷ operating assets
= $5,000,000 ÷ $2,000,000
= 2.5
For European division:
Sales is
= Operating assets × investment turnover
= $700,000 × 1.5
= $1,050,000
Return on investment is
= Net operating income ÷ operating assets × 100
= $168,000 ÷ $700,000
= 24%
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.
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
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.