Answer:
Intellectual
Explanation:
Intellectual capital refers to the capital in which the intangible assets should be considered with respect to the relationship, relative capital invested in the company
Therefore in the given case it is a measure of an intangible assets and shows the difference between the market value and the book value of a firm
Fallen Company commonly issues long-term notes payable to its various lenders. Fallen has had a pretty good credit rating such that its effective borrowing rate is quite low (less than 8% on an annual basis). Fallen has elected to use the fair value option for the long-term notes issued to Barclay's Bank and has the following data related to the carrying and fair value for these notes.
Carrying Value Fair Value
December 31,2014 54,000 54,000
December 31,2015 44,000 42,500
December 31,2016 36,000 38,000
A. Prepare the journal entry at December 31 (Fallen's year end) for 2014, 2015, and 2016 to record the fair value option for these notes.B. At what amount will the note be reported on Fallen's 2015 balance sheet?C. What is the effect of recording the fair value option on these notes on Fallen's 2016 income?D. Assuming that general market interest rates have been stable ove the period, does the fair value data for the notes indicate that Fallen's credit-worthiness has improved or declined in 2016? Explain.
Answer:
A) Journal entries
Date Account Titles Debit Credit
Dec 31, 2014 No Journal Entry
Dec 31,2015 Notes Payable $1,500
(44,000 – 42,500)
Unrealized Holding Gain/Loss $1,500
(Net Income)
Dec 31,2016 Unrealized Holding Gain/Loss $3,500
(Net Income)
Notes Payable $3,500
(38,000 – 36,000 + 1,500)
B) The note will be reported at the fair value of notes payable as on 31 December 2015. Therefore, the note will get reported at $42,500 in the Fallen's 2015 balance sheet.
C) Fallen's 2016 net income will get reduced by $3,500 (refer to journal entry 3) as any change in fair value will be reported as an adjustment to the net income for the respective year.
D) Since, the general market interest rates have been stable over the period and similar risk investment in the year 2016, the changes in fair value indicate that Fallen's creditworthiness has improved.
There are several ways that governments can increase or decrease the money supply. Match the descriptions below with the corresponding policy tool. It is possible that a description does not apply to any of the terms.
1. Open Market Operations
2. Reserve Requirement
3. Discount Rate
4. Quantitative Easing
A. A government printing more currency.
B. An increase in government spending.
C. An increase in the interest rate that a central bank charges commercial banks for loans.
D. A central bank purchasing existing bonds.
E. An increase in the percentage of deposits that banks must keep on hand.
F. A central bank purchasing a large quantity of longer-term Treasury bonds.
Answer:
1. Open Market Operations - A central bank purchasing existing bonds.
When the central bank purchases existing bonds, this is an expansionary monetary policy because by buying bonds they are putting money back into people's hands by paying them for the bonds.
2. Reserve Requirement - An increase in the percentage of deposits that banks must keep on hand.
When the Central bank increases the reserve requirement, it means that banks should keep a larger percentage of deposits kept with them. This is a contractionary Monetary Policy because the banks will have less money to loan out to the public.
3. Discount Rate - An increase in the interest rate that a central bank charges commercial banks for loans.
The Central bank loans money to commercial banks using the discount rate. Should they increase this rate, banks would find it more expensive to borrow from them and reduce borrowing. This means that they would then not have a lot of money to loan out making this a contractionary monetary policy.
4. Quantitative Easing - A central bank purchasing a large quantity of longer-term Treasury bonds.
Quantitative Easing refers to the Government buying a large quantity of longer-term treasury bonds to increase money supply so that rates would fall and people can borrow more money to boost the economy. This policy is not usually done and indeed is considered unconventional.
Hodgkiss Mfg., Inc., is currently operating at only 80 percent of fixed asset capacity. Fixed assets are $462,000. Current sales are $550,000 and projected to grow to $790,625. How much in new fixed assets are required to support this growth in sales
Answer:
New Fixed assets required = $69300
Explanation:
To calculate the amount of new fixed assets required to support project sales, we first need to determine the amount of fixed assets required to support $1 of sale.
The sales value at full capacity is,
Full capacity sales = 550000 / 0.8
Full capacity sales = $687500
To calculate the $ amount of fixed asset required to support $1 in sales, we need to calculate the ratio of fixed assets to sales. The ratio is,
Fixed assets to sales = 462000 / 687500
Fixed assets to sales = 0.672
Thus, to support a sales level of $790625, the total amount of fixed assets needed will be,
Total fixed assets needed = 790625 * 0.672 = $531300
New Fixed assets required = 531300 - 462000 = $69300
A firm issues six-month commercial paper with $500,000 face value and receives $488,000. What is the EAR the firm is paying for these funds? Group of answer choices
Answer:
5.03%
Explanation:
In order to compute the effective annual rate on the commercial paper,we need to first of all establish the interest rate in the six-month instrument
interest=($500,000-$488,000)/$488,000=2.46%
Effective annual rate=(1+2.46% /6)^12-1
By dividing by six, we are reducing the rate to monthly terms
By raising to the power of 12 we are converting from a monthly rate to yearly rate
Effective annual rate=5.03%
Mannisto, Inc., uses the FIFO inventory cost flow assumption. In a year of rising costs and prices, the firm reported net income of $244,087 and average assets of $1,550,550. If Mannisto had used the LIFO cost flow assumption in the same year, its cost of goods sold would have been $44,110 more than under FIFO, and its average assets would have been $40,630 less than under FIFO.
a) Calculate the firm's ROA under each cost flow assumption.
b) Suppose that two years later costs and prices were falling. Under FIFO, net income and average assets were $288,567 and $1,880,970, respectively. If LIFO had been used through the years, inventory values would have been $45,690 less than under FIFO, and current year cost of goods sold would have been $22,660 less than under FIFO. Calculate the firm's ROA under each cost flow assumption.
Answer and Explanation:
a. The solution of return on assets under each cost flow is described below:-
Return on assets under FIFO = Net income ÷ Average total assets
= $244,087 ÷ $1,550,550
= 15.7%
Return on assets under LIFO = Net income ÷ Average total assets
= ($244,087 - $44,110) ÷ ($1,550,550 - $40,630)
= $199,977 ÷ $1,509,920
= 13.2%
b. The computation of return on assets under each cost flow is shown below:-
Return on assets under FIFO = Net income ÷ Average total assets
= $288,567 ÷ $1,880,970
= 15.3%
Return on assets under LIFO = Net income ÷ Average total assets
= ($288,567 + $22,660) ÷ ($1,880,970 - $45,690)
= $311,227 ÷ $1,835,280
= 17%
A company's net sales were $678,400, its cost of goods sold was $218,810, and its net income was $35,550. Its gross margin ratio equals:
Answer:
The answer is 67.75 percent
Explanation:
Gross profit margin is a measure of profitability.
Gross margin ratio = (gross profit ÷ net revenue/sales) x 100 percent.
Gross profit = net sales - cost of sales
Net sales - $678,400
Cost of sales - $218,810
Gross profit = $678,400- $218,810
= $459,590
Now gross margin ratio:
($459,590/$678,400) x 100 percent
= 67.75 percent
If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period, in preparing this period's reconciliation, the amount of this check should be: g
Answer:
If the outstanding check was not cancelled by the bank yet, then it must be subtracted from the bank account balance when you are preparing a reconciliation of the bank account.
The person or business that received the check will eventually cash it out, so there is no reason why you should consider that money in your bank account as yours. checks are basically cash payments that may or may not be delayed. Checks last 6 months before they expire, so there is still a lot of time for the person or business to cash it.
Answer:
Explanation:
The check is still outstanding (still not subtracted by bank) so add it to the book balance to obtain the bank balance.
In producing jelly beans, 4,700 pounds of direct materials were used at a cost of $2.50 per pound. The standard was 4,000 pounds at $2.75 per pound. What is the direct materials quantity variance
Answer:
Direct material quantity variance = $1,925 favorable
Explanation:
Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.
It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price
Pounds
Standard quantity for the actual production 4,700
Actual quantity used 4,000
Direct material quantity variance in units 700 favorable
Standard price perv unit × $2.75
Direct material quantity variance $1925 Favorable
Direct material quantity variance = $1,925
At the beginning of the current year, Penguin Corporation (a calendar year taxpayer) has accumulated E & P of $55,000. During the year, Penguin incurs a $36,000 loss from operations that accrues ratably. On October 1, Penguin distributes $40,000 in cash to Holly, its sole shareholder.
How is Holly taxed on the distribution?
Of the $40,000 distribution, ...........................$ is taxed as a dividend and $ ....................represents a return of capital.
Answer:Of the $40,000 distribution, ....$28,000....................... is taxed as a dividend and $12,000...................represents a return of capital.
Explanation:
we will first compute dividend income for Holly
Loss from operations in the year =$36,000
Loss accrued till October 1st, since it accrues ratably
January - September= 9 months
36,000 x 9/12 = $27,000
But E&P at start of the year = $55,000
Therefore, E&P at October 1st = $55,000- $27,000 = $28,000
The remaining balance. $28,000 after the losses accrued have been deducted will be treated as dividend income
From the statement, the total cash distributed to Holly is $40,000,
$28,000 as calculated from above Is taxed as a dividend and $12,000 ( $40,000- $28,000) represents a return of capital.
When an HRM professional utilizes SWOT analysis, and strategic thinking about external and internal competitive issues impacting the company, including political, economic, market, social, geographic, and technological trends, this is called:
Answer:
Environmental scanning.
Explanation:
When an HRM professional utilizes SWOT analysis, and strategic thinking about external and internal competitive issues impacting the company, including political, economic, market, social, geographic, and technological trends, this is called environmental scanning.
Environmental scanning can be defined as a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information in an organisation's external and internal environment.
This simply means that, if an organization wants to succeed and remain competitive in the industry, it is necessary and utterly important that it regularly scans its environment so that it can assess its growth or developments and understand critical factors which contributed to its success.
Hence, the environmental scanning is classified into two (2) main categories and these are;
1. Internal environmental scanning: it is made up of essential elements or components that lie within an organization such as objectives, culture, value systems, mission, vision, goals, organizational structure, employees etc.
2. External environmental scanning: it is made up of essential elements or components that outside of an organization such as customers, market, rivals, politics, economic policies, demography etc.
Generally, the internal environmental scanning offers an organization Strength and Weakness while the external environmental scanning provides information about Opportunities and Threats. These four influencing environmental factors are known as the SWOT analysis (strength, weakness, opportunity and threats).
With the aforementioned four environmental factors, an organization is able to make strategic business decisions by identifying available opportunities and threats affecting the business, as well as used is strengths and improve on its weaknesses.
Epolito Corporation incurred $87,000 of actual Manufacturing Overhead costs during September. During the same period, the Manufacturing Overhead applied to Work in Process was $89,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:
a. debit to Work in Process of $89,000
b. credit to Manufacturing Overhead of $87,000
c. debit to Manufacturing Overhead of $87,000
d. credit to Work in Process of $89,000
Answer:
c. debit to Manufacturing Overhead of $87,000
Explanation:
Account Titles and Explanation Debit Credit
Manufacturing overhead $87,000
Accounts payable $87,000
(Being manufacturing overhead incurred)
Therefore, journal entry for actual manufacturing overhead costs would include a debit to manufacturing overhead of $87,000.
Manufacturing overhead is debited with $87,000 to record actual manufacturing overhead.
On August 15, it sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale?
Answer: $210
Explanation:
When using the First In First Out (FIFO) method of Inventory Valuation, the company sells the goods that it acquired earliest first and then sells the goods acquired later last.
This company sold 30 units on August 15.
That would mean that using FIFO, the company sold all of its August opening inventory of 15 units. It also sold all 10 units purchased on August 5th and then sold 5 units from the August 12th purchase of 20 units.
= 15 + 10 + 5
= 30 units
This means that the only units left are;
= 20 - 5
= 15 units of the August 12th purchase are left.
Units cost $14 each.
Value of Inventory after sale = 15 units * 14
= $210
Beth Corbin's regular hourly wage rate is $14, and she receives an hourly rate of $21 for work in excess of 40 hours. During a January pay period, Beth works 50 hours. Beth's federal income tax withholding is $98, she has no voluntary deductions, and the FICA tax rate is 7.65%. Use January 15 for the end of the pay period and the payment date.
Prepare the journal entries to record:
a. Beth's pay for the period.
b. The payment of Beth's wages.
Answer:
a.
Jan 15
DR Salaries and Wages $770
CR Federal Income tax payable $98
CR FICA taxes payable $58.91
CR Salaries and wages payable $613.09
Working.
Beth's gross pay = (14 * 40 hours) + (21 * 10 extra hours above the 40)
= 560 + 210
= $770
FICA Taxes = 770 * 7.65%
= $58.91
b.
Jan 15
DR Salaries and Wages payable $613.09
CR Cash $613.09
Describe the purposes of the General Journal, General Ledger, Trial Balance, and Financial Statements, and how they "flow into" each other.
Christina will receive annuity payments of $1,200 a year for five years, with the first payment occurring at Year 4. What is the value of this annuity to her today at a discount rate of 7.25 percent
Answer:
The annuity is worth $3,693.99 today.
Explanation:
Giving the following information:
Cash flow= $1,200
Number of years= 5
Waiting years= 4
Discount rate= 7.25%
First, we will determine the future value:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {1,200*[(1.0725^5) - 1]} / 0.0725
FV= $6,935.40
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 6,935.40/ (1.0725^9)
PV= $3,693.99
The description and scope section of a statement of work would contain statements regarding: Major milestones. Termination of project information. Environmental risks. Expected benefits.
Answer:
Expected benefits
Explanation:
The scope of work is a part of the statement of work. Statement Of Work is full of details regarding the project's goals, guidelines, deliverables, schedule, costs. The scope section has its focus on how to achieve these goals. There are obvious benefits to giving an outline on a project scope.
The description and scope section of a statement of work would contain statements regarding expected benefits.
Paul Corporation owns 70 percent of the voting common shares of Sally Corporation, purchased at book value. Noncontrolling interest was assigned $21,000 of income in the 20X0 consolidated income statement. What amount of net income did Sally Corporation report for the year?
Answer: $70,000
Explanation:
From the question, we are informed that Paul Corporation owns 70 percent of the voting common shares of Sally Corporation, purchased at book value and that the noncontrolling interest was assigned $21,000 of income in the 20X0 consolidated income statement.
The amount of net income did Sally Corporation report for the year will be $70,000.
When performing __________, an organization should consider not only those trends that directly impact it, but also those that affect its suppliers and customers.
Answer:
Environmental scanning.
Explanation:
Environmental scanning can be defined as a management strategy or technique which is based on systematically acquiring data (informations) about trends, events or patterns, and occasions by creating or taking surveys and analysis of these data (informations) in the internal and external environment of the organization. After acquiring these data (informations) through the use of environmental scanning, it is then utilized by the executive management for strategic planning of the organisation's future, exploitation of all available opportunities for the success and smooth operations of the organization.
Furthermore, the internal environmental scanning as a management strategy, offers an organization strength and weakness while the external environmental scanning provides information about opportunities and threats. This is typically referred to as the SWOT (Strength, Weakness, Opportunities and Threat).
In a nutshell, the environmental scanning gives an overview of the strength and weakness possessed by an organization, as well as opportunities in the market and potential threats to an organization.
Hence, the following are the key features or applications of an external and internal environmental scanning;
1. Used as a tool for corporations to avoid strategic surprise.
2. Used to monitor, evaluate, and disseminate information relevant to the organizational development of strategy.
3. Used to determine a firm's competitive advantage.
4. Used as a tool to ensure a corporation's long-term health.
5. Using market surveys to get important informations about their customers.
In conclusion, when performing environmental scanning, an organization should consider not only those trends that directly impact it, but also those that affect its suppliers and customers in general.
"An 8% corporate bond with 20 years left to maturity is currently trading at 120. The bond is callable in 4 years at 104. If a client buys the bond and then the issuer calls it in 4 years, the yield to call will be:"
Answer:
The yield to call will be 6%.
Explanation:
Yield to call (YTC) refers to the return a bondholder will receive in the event that he holds the bond until the call date which is sometime before the maturity date.
The YTC can be calculated using the following formula:
YTC = (C + (CP - P) / t) / ((CP + P) / 2) .......................... (1)
Where:
YTC = YTW = yield to call or yield to worst = ?
C = Annual coupon interest payment = Bond interest rate * Bond face value = 8% * $100 = $8.00
CP = Callable price of the bond = $104
P = Current price of the bond = $120
t = time in years remaining until the call date = 20 - 4 = 16 years
Substituting the values into equation (1), we have:
YTC = ($8 + ($104 - $120) / 16) / (($104 + $120) / 2)
YTC = $7 / $112 = 0.06, or 6%.
Therefore, the yield to call will be 6%.
Warner Company purchases $50,500 of raw materials on account, and it incurs $65,000 of factory labor costs. Supporting records show that:_______. A) the Assembly Department used $31,700 of raw materials and $38,300 of the factory labor.B) the Finishing Department used the remainder.
Answer:
1. The Journal Entry for the above will be as follows;
a.
DR Work in Progress - Assembly $31,700
DR Work in Progress - Finishing $ 18,800
CR Raw Materials $50,500
Working
Finishing Department used remainder = 50,500 - 31,700
= $18,800
b.
DR Work in Progress - Assembly $38,300
DR Work in Progress - Finishing $ 26,700
CR Factory Wages $65,000
Working
Finishing Department used remainder = 65,000 - 38,300
= $65,000
Use airlines uses the following performance measures. Classify each of the performance measures below into the most likely balanced scorecard perspective it relates to.
C (customer),
P (internal process),
I (innovation and growth), or
F (financial).
1. Cash flow from operations
2. Number of reports of mishandled or lost baggage
3. Percentage of on-time departures
4. On-time flight percentage
5. Percentage of ground crew trained
6. Return on investment
7. Market value
8. Accidents or safety incidents per mile flown
9. Customer complaints
10. Flight attendant training sessions attended
11. Time airplane is on ground between flights
12. Airplane miles per gallon of fuel
13. Revenue per seat
14. Cost of leasing airplanes
Answer:
1. Cash flow from operations: F (financial).
2. Number of reports of mishandled or lost baggage: C (customer).
3. Percentage of on-time departures: C (customer).
4. On-time flight percentage: C (customer).
5. Percentage of ground crew trained: I (innovation and growth).
6. Return on investment: F (financial).
7. Market value: F (financial).
8. Accidents or safety incidents per mile flown: P (internal process).
9. Customer complaints: C (customer).
10. Flight attendant training sessions attended: I (innovation and growth).
11. Time airplane is on ground between flights: P (internal process).
12. Airplane miles per gallon of fuel: P (internal process).
13. Revenue per seat: F (financial).
14.Cost of leasing airplanes: F (financial).
Explanation:
The performance measures associated with an airline business are;
1. Customer (C): this is comprised of all the passengers or clients that did business with the airline company in the past or in the future. It gives a details into everything pertaining to these clients.
2. Financial (F): this is a measure of all the revenues and expenses associated with the successful running of the airline business.
3. Innovation and growth (I): this is a measure of the manpower or labor, equipments, welfare and training used to ensure the business continues to run smoothly, effectively and efficiently.
4. Internal process (P): it involves all of the strategic decisions, policies, rules and regulations formulated by the executive management in order to enhance the smooth operations of the airline business.
The Bridal Gift Shop, Inc. has 11 units in ending merchandise inventory on December 31. The units were purchased in November for $150 each. The price lists from suppliers indicate the current replacement cost of the item to be $152 each. What would be the amount reported as Merchandise Inventory on the balance sheet?
A $1,650
B. $3.322
C. $1,672
D. $302
Answer:
A $1,650
Explanation:
The computation of amount reported as Merchandise Inventory on the balance sheet is shown below:-
Merchandise inventory = Ending merchandise inventory × Units purchased
= 11 × $150
= $1,650
Therefore for computing the Merchandise Inventory we simply applied the above formula and have not considered the replacement cost as it is not relevant.
During 2021, Farewell Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Farewell did not declare or pay any dividends during 2021. Farewell's net income for the year ended December 31, 2021, was $2.5 million. The income tax rate is 25%. Farewell granted 10,000 stock options to its executives on January 1 of this year. Each option gives its holder the right to buy 20 shares of common stock at an exercise price of $29 per share. The options vest after one year. The market price of the common stock averaged $30 per share during 2021.
What is Farewell's diluted earnings per share for 2021, rounded to the nearest cent?
A) $3.14.
B) $4.90.
C) $4.34.
D) Cannot determine from the given information.
Blue Cab Company had 50,000 shares of common stock outstanding on January 1, 2021. On April 1, 2021, the company issued 20,000 shares of common stock. The company had outstanding fully vested incentive stock options for 5,000 shares exercisable at $10 that had not been exercised by its executives. The end-of-year market price of common stock was $13 while the average price for the year was $12. The company reported net income in the amount of $269,915 for 2021. What is the diluted earnings per share (rounded)?
A) $3.60.
B) $4.10.
C) $4.50.
D) $3.81.
Answer:
a) c. $4.34
b) b. $4.10
Explanation:
a) Find Farewell's diluted earnings per share for 2021.
Use the formula below:
Diluted EPS = (Net income after tax - preferred dividend) / diluted common stock
[tex]= \frac{2,500,000 - (50,000*100*0.06)}{500,000+(200,000 - ((29*10,000)/30))}[/tex]
[tex] = \frac{2,500,000 - 300,000}{500,000 + (200,000 - 193,333)} [/tex]
[tex] = \frac{220,000}{506,667} [/tex]
[tex] = 4.34 [/tex]
Diluted EPS = $4.34 per share
b) stock options = 5,000
Value in current shares = 500,000/12 = $4,167
Diluted shares = 5000 - 4167 = 833
Use the formula below to find the diluted earnings per share:
Diluted EPS = Net income/share outstanding
[tex]= \frac{269,915}{50,000 +(20,000-5,000) + 833)}[/tex]
[tex] = \frac{269,915}{50,000 + 15,000 + 833} [/tex]
[tex] = \frac{269,915}{65,833} [/tex]
[tex] = 4.10 [/tex]
Diluted EPS = $4.10 per share
g Last year, Adventure Enterprises reported revenues of $24 million while its total expenses were $10 million. Based on this information, Adventure reported:
Answer:
The answer is ' a profit of $14 million
Explanation:
Revenue = $24 million
Total expenses = $10 million
Profit(loss) = Revenue minus total expenses
$24 million - $10 million
Profit = $14 million.
It is a profit because revenue is greater than total expenses. Adventure Enterprises will report a loss if reported total expenses was greater than reported revenue
Determine the market price that Firm A receives for its product. Assume the price is constant because the firm is a price taker in a perfectly competitive market.
Answer: $28
Explanation:
In a Perfectly Competitive Market, firms are price takers in that the price is set by the market. As a result, the Price is equal to the Average Revenue as well as the Marginal Revenue. P = AR = MR
In the table, the Marginal Revenue (increase in revenue when an additional unit is sold) is $28 for all quantities and the Average Revenue at the fifth (and all units) is;
= 140/5
= $28
With both the Average and Marginal Revenues being $28, the price that Firm A receives is $28 as well.
Communication skills refer to a manager’s ability to effectively convey ideas and information to others and to effectively receive ideas and information from others. This exercise focuses on communication skills as they involve deciding how to best convey information to others.Exercise BackgroundAssume that you are a middle manager for a large electronics firm. People in your organization generally use one of three methods to communicate with one another. One common method is verbal communication, either face-to-face or by telephone. Surprisingly, people also still use a lot of written communication in the form of memos, reports, letters, and other documentation. And, of course, there is also a lot of digital communication such as email and direct messaging.During a typical day you receive and send a variety of messages and other communication, sometimes using only a single method of communication but often using some combination of methods. The questions that follow ask you to select one or more methods that would be most effective for communicating specific kinds of information.Use your communication skills to answer the following questions.1. You need to reprimand a staff assistant who has been coming in to work late for the last several days. Which of these options would most likely be both efficient and effective? Check all that apply.Send an emailRegardless of what you do first, follow-up with a written reprimand to the individual’s personnel fileUse social mediaReprimand the individual in public so as to deter others from being lateSchedule a meeting to discuss the problem2. You need to schedule a meeting with your boss. Which of these options would most likely be both efficient and effective? Check all that apply.Call the boss’s assistant and request a meetingEmail the boss’s assistant and request a meetingWrite a formal letter to your boss asking for a meeting3. You need to inform a supplier that your company will soon be cutting back on its purchases because you plan to shift more of your business to a supplier offering lower prices. Which of these options would most likely be both efficient and effective? Check all that apply.A telephone call to the supplier to explain the situationAn email to the supplier to explain the situationA letter to the supplier to explain the situationA personal meeting with the supplier to explain the situation
Answer:
Communication Skills:
1. Reprimanding a staff assistant for late-coming:
Schedule a meeting to discuss the problem
2. Scheduling a meeting with your boss:
Call the boss's assistant and request a meeting.
3. Informing a supplier that your company will soon be cutting back on its purchases because you plan to shift more of your business to suppliers offering lower prices:
A telephone call to the supplier to explain the situation
An email to the supplier to explain the situation
Explanation:
Communication is a two-way traffic. The central purpose is to enhance understanding. In reprimanding a staff assistant, I shall first understand the problem he or she is facing. Full understanding of a problem generates workable solutions. Responding to problems without some created solution mechanisms will not ensure lasting relationships. The main purpose in any communication situation is to achieve understanding of the challenges being faced by the other party, whether with my assistant, my boss's assistant, or my company's supplier.
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method
Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan Corporation issued $7,900,000 of 7-year, 10% bonds at a market (effective) interest rate of 7%, receiving cash of $9,194,083. Interest is payable semiannually on April 1 and October 1.
a. Journalize the entry to record the issuance of bonds on April 1, 2016. For a compound transaction, if an amount box does not require an entry, leave it blank.
Cash
Premium on Bonds Payable
Bonds Payable
b. Journalize the entry to record the first interest payment on October 1, 2016, and amortization of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual interest payment. (Round to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank.
Interest Expense
Premium on Bonds Payable
Cash
Answer:
Explanation:
1. Please see journal entry below
a. Cash Dr, $9,194.083
To bonds payable $7,900,000
To premium on bonds payable $1,294,083
(Being issuance of bonds that is recorded)
The above transactions were recorded because cash was debited as it increase the assets, while also increasing the liabilities hence bond payable and premium is credited.
b. Interest expenses Dr, $302,565
Premium on bonds payable $92,435 ($1,294,083 ÷ 7 × 6 ÷ 12)
To cash $395,000
($7,900,00 × 10% × 6 ÷ 12)
(Being interest expenses that is recorded)
For recording the above transaction, interest expense was debited as it increase expenses while cash was credited as it reduced the assets including the balance which is debited to premium on bonds payable.
As supervisors and managers, should one be limited to how one writes by an arbitrary style manual?
Answer:
As supervisors and managers its not necessary that you should be limited to or write by an arbitrary style manual.
Explanation: As supervisors and managers its not necessary that you should be limited to or write by an arbitrary style manual. as a supervisor or manager, you are not limited to arbitary style of manual writing, As generally there is no standard of writing Manual. As the only known or recognizable form is a styl guide and this Varies in each and every organizations.
Suppose the Finnish government undertakes a program that relaxes immigration but only for highly skilled workers. This policy changes will result in an increase in the ________, causing _______.
Answer:
Suppose the Finnish government undertakes a program that relaxes immigration but only for highly skilled workers. This policy changes will result in an increase in the _population of immigrants_______, causing __increased economic performance resulting from increased supply of highly skilled labor, productivity, and GDP and not to forget increased diversity with its attendant benefits and costs_____.
Explanation:
Immigration is the movement of non-natives or citizens into a country from other countries. If the number of immigrants outnumber those emigrating, the population of the country will increase relatively. To boast population, increase diversity, and energize an economy, some countries deliberately embark on programed immigration and acceptance of highly skilled workers. As they come in, they come with their families, some will bear more children, and there will be increased relationships between the immigrants and the domiciled citizen population. The economy of the country will be revitalized since they are highly skilled workers, and there will be increased productivity and beneficial changes in the GDP. Human diversity has many attendant benefits and burdens. Whichever one that outweighs the other depends on factors prevalent in the particular country.
Selected comparative financial statements of Korbin Company follow:
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2017, 2016, and 2015
2017 2016 2015
Sales $515,770 $395,122 $274,200
Cost of goods sold 310,494 250,507 175,488
Gross profit 205,276 144,615 98,712
Selling expenses 73,239 54,527 36,194
Administrative expenses 46,419 34,771 22,759
Total expenses 119,658 89,298 58,953
Income before taxes 85,618 55,317 39,759
Income taxes 15,925 11,340 8,071
Net income $69,693 $43,977 $31,688
KORBIN COMPANY
Comparative Balance Sheets
December 31, 2017, 2016, and 2015
2017 2016 2015
Assets
Current assets $53,867 $42,145 $56,338
Long-term investments 0 500 3,690
Plant assets, net 100,040 106,805 63,791
Total assets $153,907 $149,450 $123,819
Liabilities and Equity
Current liabilities $22,470 $22,268 $21,668
Common stock 71,000 71,000 53,000
Other paid-in capital 8,875 8,875 5,889
Retained earnings 51,562 47,307 43,262
Total liabilities and equity $153,907 $149,450 $123,819
1. Complete the below table to calculate Income statement data in common-size percents.
KORBIN COMPANY
Common-Size Comparative Income Statements
For Years Ended December 31, 2017, 2016, and 2015
2017 2016 2015
Sales 100.00% 100.00% 100.00%
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total expenses
Income before taxes
Income taxes
Net income _____ % _____ % _____ %
2. Complete the below table to calculate the balance sheet data in trend percents with 2015 as the base year.
KORBIN COMPANY
Balance Sheet Data in Trend Percents
December 31, 2017, 2016, and 2015
2017 2016 2015
Assets
Current assets 100.00 %
Long-term investments 100.00
Plant assets, net 100.00
Total assets _____ %_____ % 100.00 %
Liabilities and Equity
Current liabilities _____ %_____ % 100.00 %
Common Stock 100.00
Other paid-in capital 100.00
Retained earnings 100.00
Total liabilities and equity _____ % _____ % 100.00
Answer:
Korbin Company
Selected Comparative Financial Statements:
1. KORBIN COMPANY Comparative Income Statements
For Years Ended December 31, 2017, 2016, and 2015
2017 % 2016 % 2015 %
Sales $515,770 100% $395,122 100% $274,200 100%
Cost of goods sold 310,494 60% 250,507 63% 175,488 64%
Gross profit 205,276 40% 144,615 37% 98,712 36%
Selling expenses 73,239 14% 54,527 14% 36,194 13%
Admin. expenses 46,419 9% 34,771 9% 22,759 8%
Total expenses 119,658 23% 89,298 23% 58,953 21%
Income before taxes 85,618 17% 55,317 14% 39,759 15%
Income taxes 15,925 3% 11,340 3% 8,071 3%
Net income $69,693 14% $43,977 11% $31,688 12%
2. KORBIN COMPANY
Balance Sheet Data in Trend Percents
for December 31, 2017, 2016, and 2015
2017 2016 2015
Assets
Current assets 100.00 % 78% 105%
Long-term investments 100.00 500% 3,690%
Plant assets, net 100.00 107% 64%
Total assets _124__% _121_ % 100.00 %
Liabilities and Equity
Current liabilities _104_ % _103__ % 100.00 %
Common Stock 100.00 100% 75%
Other paid-in capital 100.00 100% 66%
Retained earnings 100.00 92% 84%
Total liabilities and equity _124_ % _121_ % 100.00
Explanation:
a. Data:
KORBIN COMPANY
Comparative Balance Sheets
December 31, 2017, 2016, and 2015
2017 2016 2015
Assets
Current assets $53,867 $42,145 $56,338
Long-term investments 0 500 3,690
Plant assets, net 100,040 106,805 63,791
Total assets $153,907 $149,450 $123,819
Liabilities and Equity
Current liabilities $22,470 $22,268 $21,668
Common stock 71,000 71,000 53,000
Other paid-in capital 8,875 8,875 5,889
Retained earnings 51,562 47,307 43,262
Total liabilities & equity $153,907 $149,450 $123,819
b) In an income statement vertical analysis, each line item is calculated as a percentage of the sales, which is itself 100%. This enables the proportional analysis of all the items to be computed about their financial performance in relation to the sales for the period. It can help management to dictate unusual items, errors, and other outliers.
c) The balance sheet trend analysis shows whether the entity's financial position is improving or not in relation to the base period. Each item is compared horizontally across periods. The calculation of trend uses the amount in the non-base year and divides it by the amount of the base year x 100.