Comfort Mattresses, Inc. sold 26,000 shares of its $1 par value common stock at a cash price of $12 per share. The entry to record this transaction would be:

Answers

Answer 1

Answer:

Debit cash for $312,000

Credit common stock for $26,000

Credit Paid in capital in excess of par value, common stock for $286,000.

Explanation:

Selling the share at $12 per share which is higher than the par value of $1 indicates that the shares are sold at a premium of $11 (i.e. $12 - $1 = $11). Therefore, there is a paid in capital in excess of par value of $11 per share.

Before posting the entries, we do the following calculation first.

Cash received = 26,000 * $12 = $312,000

Common stock = 26,000 * $12 = $26,000

Paid in capital in excess of par value = 26,000 * 11 = $286,000

The entry to record this transaction would therefore appear as follows:

Pariculars                                                               Dr ($)            Cr ($)      

Cash                                                                    312,000

Common stock                                                                           26,000

Paid in capital in ex. of par v. - Common stock                      286,000

To record issue of common stock at a premium.                                    


Related Questions

ACME Inc. has decided on a 10for1 reverse stock split. If the firm currently has​ 40,000,000 shares​ outstanding, how many shares will be outstanding after the stock​ split?

Answers

Answer:

$4,000,000 Shares

Explanation:

Calculation for how many shares will be outstanding after the stock​ split

Using this formula

Outstanding Shares after stock split =Shares​ outstanding ÷Reverse stock split

Let plug in the formula

Outstanding Shares after stock split =$40,000,000÷10

Outstanding Shares after stock split =$4,000,000 Shares

Therefore the amount of shares that will be outstanding after the stock​ split will be $4,000,000

If a company presently has B+ credit rating, which one of the following will NOT contribute to achieving a higher credit rating?
A. A "low" default risk ratio
B. Larger retained earnings
C. A lower debt to assets ratio
D. A higher interest coverage ratio
E. A higher default risk ratio

Answers

Answer:

C

Explanation:

The option that would not contribute to achieving a higher credit rating for the company is  a higher default risk ratio.

What do the financial ratios mean?

A low default risk ratio mean that the company has a low probability of defualting on its obligations. This would increases its rating.

A lower debt to assets ratio indicates lower financial risk and greater solvency. A higher interest coverage ratio indicates greater solvency.

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Which team access level gives the user view only access to QuickBooks Online Accountant firm information, but no access to team and subscription billing and no access to the firm’s books?

Answers

Answer:

Basic Access

Explanation:

QuickBooks Online Accountant has three levels of access that can be granted to Team users. These includes:

1. Full Access: this grants the user to perform editing, modifications, update and access firm's QuickBooks Online Accountant.

2. Basic Access: this grants the user to VIEW-ONLY access to QuickBooks Online Accountant firm.

3. Custom Access: this grants the user to pick different mix of permission for the team user.

Hence, the right answer is BASIC ACCESS

Your crazy uncle left you a trust that will pay you $39,000 per year for the next 30 years with the first payment received one year from today. If the appropriate interest rate is 7.2 percent, what is the value of the payments today

Answers

Answer:

$474,386.27

Explanation:

For computing the value of the payment today we need to apply the present value formula i.e to be shown in the attachment below:

Given that,  

Future value = $0

Rate of interest = 7.2%

NPER = 30 years

PMT = $39,000

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $474,386.27

Cash received from customers includes all $139,000 of the accounts receivable that were outstanding at November 30, 2017. Accounts receivable at December 31, 2017 totaled $141,000. Accounts payable (to suppliers of inventory) decreased by $19,000 from November 30, 2017 to December 31, 2017. The balance in the inventory account decreased by $39,000 over the same period. Required: What is gross profit for the month of December under accrual accounting

Answers

Answer:

Gross profit from the month of December is $238000

Explanation:

Question is incomplete but the missing part is:

Cash received from customer during december 2017 - 387,000

Cash paid to supplier for inventory during december 2017 - 131,000

Accrual basis revenues

Particulars                                              Amount $

Cash received from customer                387000

during December 2017

Cash received in December  for            -139000

November accounts receivable

December sales made on account         141000

collected in January

Accrual basis revenues                          389000

Accrual basis expenses

Particulars                                              Amount $

Cash paid to suppliers for inventory      131000

during December 2017

Payments for inventory purchased         -19000

and used in November

Inventory purchased in November          39000

but not used in December

Accrual basis expenses                           151000

Gross profit from the month of December=  Accrual basis revenues - Accrual basis expenses

Gross profit = 389000 - 151000

Gross profit =  $238000

Exercise 9-6 Payroll-related journal entries LO P2 Assuming situation a, prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $70 for this pay period. (Round your answers to 2 decimal places.)

Answers

Answer:

Sep 30

DR Salaries expense $700  

CR FICA—Social Security taxes payable  $43.40

CR FICA—Medicare taxes payable  $10.15

CR Employee federal income taxes payable  $70

CR Salaries payable  $576.45

Explanation:

FICA—Social Security taxes payable

6.2% of the first $118,500

= 6.2% * 700

= $43.40

FICA—Medicare taxes payable

1.45% of gross pay

= 1.45% * 700

= $10.15

Aloha Inc. has 8 percent coupon bonds on the market that have 11 years left to maturity. If the YTM on these bonds is 10.22 percent, what is the current bond price

Answers

Answer:

The answer is $85.73

Explanation:

N(Number of periods) = 11years

I/Y(Yield to maturity) = 10.22 percent

PV(present value or market price) = ?

PMT( coupon payment) = $8

FV( Future value or par value) = $10

We are using a Financial calculator for this.

N= 11; I/Y = 10.22 ; PMT = 8; FV= $100; CPT PV= -85.73

Therefore, the market price of the bond is $85.73

Imagine that you are a senior executive of a large organization such as Starbucks that has geographically scattered operating units. What would NOT be on your agenda?

Answers

Answer:

Orchestrate the action steps and the implementation sequence for each operational unit.

Explanation:

A senior executive at a large organization like Starbucks has great responsibilities for managing a company correctly, such as making important decisions, allocating resources to the right places, and directing other people's activities to achieve goals.

Therefore, among its functions are, to establish a clear and effective communication about important organizational changes and behaviors, to establish deadlines and measures to reach objectives and to build consensus on certain procedures.

However, each operating unit of the company contains a specific management responsible for orchestrating the implementation and the actions necessary for the success of the unit, so this is not the function of a senior executive.

Transactions for Jayne Company for the month of June are presented below.
June
1 Issues common stock to investors in exchange for $5,000 cash.
2 Buys equipment on account for $1,100.
3 Pays $740 to landlord for June rent.
12 Sends Wil Wheaton a bill for $700 after completing welding work.
Identify the accounts to be debited and credited for each transaction.
Account Debited Account Credited
june 1
june 2
june 3
june 12

Answers

Answer:

June 1 , common stocks are issued

Dr Cash 5,000

    Cr Common stock 5,000

June 2 , equipment purchased on account

Dr Equipment 1,100

    Cr Accounts payable 1,100

June 3 , monthly rent paid

Dr Rent expense 740

    Cr Cash 740

June 12, service revenue

Dr Accounts receivable 700

    Cr Service revenue 700

10) Financial intermediaries can substantially reduce transaction costs per dollar of transactions
because their large size allows them to take advantage of

Answers

Answer: D) economies of scale.

Explanation:

Economies of scale refers to when an entity is able to reduce its total costs as quantities of the good causing the costs increase.

Financial Intermediaries such as Commercial banks, Mutual funds, Investment banks etcetera have a lot of funds available for trade which they use to execute large trades. As a result, the costs on average are lower or them per transaction as opposed to traders executing with lower volumes. For example, when purchasing shares they will be able to negotiate better fees with stockbrokers because they are buying a lot of shares as opposed a single buyer trading.

Mary Beth Marrs, the manager of an apartment complex, feels overwhelmed by the number of complaints she is receiving. Below is the check sheet she has kept for the past 12 weeks. Develop a Pareto chart using this information. What recommendations would you make?

Answers

The correct answer to this open question is the following.

Unfortunately, the question does not attach the check sheet with the needed information.

However, we can say that the Pareto chart helps us understand where the priority is to focus on it. The Pareto chart is based on the 80%-20% rule. The Pareto chart says that 20% of the solutions help resolve 80% of the issues.

So Mary Beth Marrs, the manager of the apartment complex must focus on issues such as the parking lot, the ground, and the pool, to appease most of the people and diminish the complaints.

To Develop a Pareto chart using this information the recommendations would you make:

The Pareto chart makes a difference in us getting it where the need is to center on it. The Pareto chart is based on the 80%-20% run of the show. The Pareto chart says that 20% of the arrangements offer assistance to resolve 80% of the issues. So Mary Beth Marrs, the chief of the flat complex must center on issues such as the stopping part, the ground, and the pool, to conciliate most of the individuals and reduce the complaints.

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Which of the following would most directly affect the purchasing power of benefits paid on a fixed annuity?
A) Guaranteed minimum payout.
B) Economic inflation.
C) Interest rates
D) Company investment performance

Answers

The correct answer is B.Economic inflation.

The purchasing power of benefits on a fixed annuity is directly affected by economic inflation, which reduces the value of money over time. Therefore,  option B is correct.

In the context of fixed annuities, inflation refers to the general increase in prices of goods and services over time, leading to a decrease in the purchasing power of money.

Inflation erodes the value of annuity payments, as the fixed benefit amount remains constant while the cost of living rises.

This means that over time, the annuity payments may not be sufficient to meet the same level of expenses. Managing inflation risk becomes crucial in maintaining the long-term purchasing power of annuity benefits, ensuring that they can adequately cover future expenses despite the impact of rising prices.

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Noma plans to save $4,800 per year for the next 40 years. If she can earn an annual interest rate of 10.6 percent, how much will she have in 40 years

Answers

Answer:

Total amount after 40 years = $2502371.012

Explanation:

Annual saving by Noma = $4800 per year

Total time period for saving = 40 years

Interest rate on savings = 10.6 percent

Now we have to find the amount that will be after 40 years if the annual saving is 4800 dollars that earns 10.6 percent interest rate.

[tex]\text{Total amount after 40 years} =Annuity [ \frac{(1+r)^{n} - 1}{r}] \\= 4800[ \frac{(1+ 0.106)^{40} - 1}{0.106}] \\= 2502371.012 \ dollars[/tex]

Total amount after 40 years = $2502371.021

Annual charge per unit

When the Annual saving by Noma = $4800 annually

Then the Total period for saving is = 40 years

After that charge per unit on savings = 10.6 percent

Now we've to seek out the quantity that may plan40 years if the annual saving is "4800 dollars, 10.64, annuity  that earns 10.6 percent charge per unit.

Then the Total amount after 40 year=

Annuity  [tex](1+r)n-1/r =4800 (1+0.106)40-1/0.106=250237[/tex]

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During the coming year, Colgate expects an increase in variable manufacturing costs of $8 per unit and in fixed manufacturing costs of $35,000. (a) If sales for 2015 remain at 13,000 units, what price should Colgate charge to obtain the same profit as last year? Round to the nearest cent.

Answers

Answer: $130.69

Explanation:

Colgate made a Net Income of $167,000 in 2014 and sold 13,000 units.

Variable costs were $663,000 and fixed costs were $730,000.

Variable costs are to increase by $8 per unit and fixed costs by $35,000.

Price to sell at to maintain same profit as last year will be x

167,000 = 13,000x - (Old + New Variable cost) - ( Old + New Fixed Cost)

167,000 = 13,000x - (663,000 + (8* 13,000)) - ( 730,000 + 35,000)

167,000 = 13,000x - 767,000 - 765,000

167,000 = 13,000x - 1,532,000

13,000x = 1,699,000

x = 1,699,000/13,000

x = $130.69

Farrow Co. expects to sell 300,000 units of its product in the next period with the following results. Sales (300,000 units) $ 4,500,000 Costs and expenses D The company has an opportunity to sell 30,000 additional units at $13 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume would create the following incremental costs: (1) total overhead would increase by 15% and (2) administrative expenses would increase by $129,000. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit. Should the company accept or reject the offer?irect materials 600,000 Direct labor 1,200,000 Overhead 300,000 Selling expenses 450,000 Administrative expenses 771,000 Total costs and expenses 3,321,000 Net income $ 1,179,000

Answers

Answer:

Explanation:

workings

Unit selling price = 4,500,000/300,000 = 15

Unit Direct material = 600,000/300,000 = 2

Direct labor rate = 1,200,000/300,000 = 4

selling expenses = 450,000/300,000 = 1.5

                        Normal Sales    Extra Sales                  Total

Turnover           4,500,000       390,000 (30,000*13)    4,890,000

Direct  material    600,000           60,000(30,000*2)        660,000

Direct labor        1,200,000          120,000(30,000*4)       1,320,000

Overhead              300,000          45,000 (300,000*15%)  345,000

Selling Expenses   450,000           45,000 (1.5*30000)      495,000

Admin Expenses     771,000            129,000                         900,000

Total cost               3,321,000         399,000                          3,720,000

Net income            1,179,000            (9000)                             1,170,000

B) The offer for additional sales at a reduced price of $13 should be declined as it ends up in a loss of $9,000 due to the related increase in the operating costs

A company uses a process costing system. It's welding department completed and transferred out 100,000 units during the current period. The ending inventory in the welding department consists of 30,000 units (75% complete with respect to direct materials and 40% complete with respect to conversion costs).

Determine the equivalent units of production for the welding department for direct materials and conversion costs assuming the weighted average method.

A. 130,000; 130,000
B. 130,000; 112,000
C. 107,500; 118,000
D. 122,500; 112,000
E. 112,500; 130,000

Answers

Answer:

Option D is correct

Equivalent units

Material cost  = 122, 500

Conversion cost =  112,000

Explanation:

Equivalent units = Units × degree of completion(%)

Material cost

Item                               Unit                             Equivalent units

transferred out    100,000       100,000× 100%   = 100,000

Closing inventory   30,000      30,000     75%    =   22,500

Equivalent unit                                                            122,500

Conversion cost

Item                               Unit                             Equivalent units

transferred out    100,000       100,000× 100%   = 100,000

Closing inventory   30,000      30,000  ×  40%    =   12,000

Equivalent unit                                                            112,000

Equivalent units

Material cost  = 122, 500

Conversion cost =  112,000

An entrepreneur is looking to open a restaurant in a town with only one other restaurant. The incumbent restaurant is very successful with high profits. Which of the following business strategies are most likely to allow the entrepreneur to start a profitable restaurant? Select all that apply. Offer the most popular dish served by the incumbent restaurant. Open the restaurant location near the incumbent restaurant. Use new technology and business practices to cut variable costs lower than the incumbent restaurant. Specialize in a type of cuisine not served by other restaurants in the region.

Answers

Answer:

Options C and D would be the correct options.

Explanation:

The technological innovation will decrease costs and raise income, even though the other establishment launches a trade dispute, it seems to be profitable.  Specializing in some other quality of diet creates significant consumers and that could stick to something like a restaurant that will boost the product revenue and profit.Fining the least expensive could begin price competition and that it's necessary to play on quality to make costing fewer costly. The upscale steakhouse may have cheaper price capacities than that of the new ones. Specializing in almost the same product will boost rivalry, although with the old store, that the very first leading benefit is.  

Many alternatives have no relation to the given instance. Therefore the answer to the above seems to be the right one.

Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4.06 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $5.08 million in automated equipment for test machine assembly. The divisionâs expected income statement at the beginning of the year was as follows:

Sales revenue $ 16,140,000
Operating costs
Variable 2,010,000
Fixed (all cash) 7,600,000
Depreciation
New equipment 1,600,000
Other 1,380,000
Division operating profit $ 3,550,000
A sales representative from LSI Machine Company approached Oscar in October. LSI has for $6.51 million a new assembly machine that offers significant improvements over the equipment Oscar bought at the beginning of the year. The new equipment would expand division output by 10 percent while reducing cash fixed costs by 5 percent. It would be depreciated for accounting purposes over a three-year life. Depreciation would be net of the $579,000 salvage value of the new machine. The new equipment meets Pitt's 12 percent cost of capital criterion. If Oscar purchases the new machine, it must be installed prior to the end of the year. For practical purposes, though, Oscar can ignore depreciation on the new machine because it will not go into operation until the start of the next year.

The old machine, which has no salvage value, must be disposed of to make room for the new machine.

Pitt has a performance evaluation and bonus plan based on residual income. Pitt uses a cost of capital of 12 percent in computing residual income. Income includes any losses on disposal of equipment. Investment is computed based on the end-of-year balance of assets, net book value. Ignore taxes.

Required:

a. What is Forbes Divisionâs residual income if Oscar does not acquire the new machine? (Negative amount should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your final answers to nearest whole dollar.)

Residual income ___________
b. What is Forbes Divisionâs residual income this year if Oscar acquires the new machine? (Negative amount should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your final answers to nearest whole dollar.)

Residual income _____________
c. If Oscar acquires the new machine and operates it according to specifications, what residual income is expected for next year? (Negative amount should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your final answers to nearest whole dollar.)

Residual income _______________

Answers

Answer:

a. What is Forbes Division's residual income if Oscar does not acquire the new machine?

residual income = $3,550,000 - ($6,160,000 x 12%) = $2,810,800

b. What is Forbes Division's residual income this year if Oscar acquires the new machine?

residual income = $70,000 - ($9,190,000 x 12%) = -$1,032,800

c. If Oscar acquires the new machine and operates it according to specifications, what residual income is expected for next year?

residual income = $5,167,000 - ($5,833,000 x 12%) = $4,467,040

In order to calculate net income, I assumed other depreciation remained the same for both years.

Explanation:

residual income = net income - (capital x cost of capital)

if new machine is not purchased:

net income = $3,550,000

cost of capital = 12%

capital = ($4,060,000 + $5,080,000) - depreciation $2,980,000 = $6,160,000

if new machine is purchased, current year's residual income

net income = $3,550,000 - $3,480,000 loss on disposal = $70,000

capital = ($4,060,000 + $5,080,000 + $6,510,000) - $5,080,000 - $1,380,000 = $9,190,000

if new machine is purchased, calculations for next year

net income:

sales revenue $17,754,000

variable costs ($2,010,000)

Fixed (all cash) ($7,220,000)

depreciation new machine ($1,977,000)

depreciation other ($1,380,000)

loss on disposal new machine ($3,480,000)

net income = $5,167,000

cost of capital = 12%

capital = ($2,680,000 + $6,510,000) - depreciation ($1,380,000 + $1,977,000) = $5,833,000

residual income = $5,167,000 - ($5,833,000 x 12%) = $4,467,040

A foundation was endowed with $15,000,000 in July 2010. In July 2014, $5,000,000 was expended for facilities, and it was decided to provide $250,000 at the end of each year forever to cover operating expenses. The first operating expense is in July 2015, and the first replacement expense in July 2014. If all money earns interest at 5% after the time of endowment, what amount would be available for the capital replacements at the end of every fifth year forever

Answers

Answer:

$2,274,639.75

Explanation:

Endowment on July 2010 = $15,000,000

Endowment amount on July 2014 = $15,000,000 (1+0.05)^4 - Expenditure on facilities

= $15,000,000 (1.2155) - $5,000,000

= $18,232,500 - $5,000,000

= $13,232,500

Amount to be set aside for operation expenses = $250,000/0.05 = $5,000,000

Amount available for capital replacement = $13,232,500 - $5,000,000 = $8,232,500

5-years effective interest rate = (1+0.05)^5 - 1 = 0.2763

Annual available for capital replacements every fifth year forever = $8,232,500 (0.2763) = $2,274,639.75

The amount that would be available for the capital replacements at the end of every fifth year forever is $2,274,513.93.

Endowment amount:

Endowment amount=[$15,000,000 (1+0.05)^4]- $5,000,000

Endowment amount=[$15,000,000 (1.21550625)] - $5,000,000

Endowment amount= $18,232,594- $5,000,000

Endowment amount= $13,232,594

Capital replacement:

Capital replacement = $13,232,594- ($250,000/0.05)

Capital replacement = $13,232,594 - $5,000,000

Capital replacement  = $8,232,594

Effective interest rate :

Effective interest rate = (1+0.05)^5 - 1

Effective interest rate = (1.05)^5 - 1

Effective interest rate = 0.2762815625

Every Fifth year Capital replacements:

Every Fifth year Capital replacements= $8,232,594 ( 0.2762815625)

Every Fifth year Capital replacements=$2,274,513.93

Inconclusion the amount that would be available for the capital replacements at the end of every fifth year forever is $2,274,513.93.

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Whitman Printing has contracts to complete weekly supplements required by forty-six customers. For the year 20X5, manufacturing overhead cost estimates total $840,000 for an annual production capacity of 12 million pages.

For 2010, Whitman Printing decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that the number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis:

Cost Pool Manufacturing overhead costs Activity
Design changes $120,000 200 design changes
Setups 640,000 4,000 setups
Inspections    80,000 16,000 inspections
Total manufacturing overhead costs $840,000

During 2010, two customers, Money Managers and Hospital Systems, are expected to use the following printing services:

Activity Money Managers Hospital Systems
Pages 60,000 76,000
Design changes 10 2
Setups 20 10
Inspections 30 38

When costs are assigned using the single cost driver, number of pages printed, then Hospital Systems will ___?

a. contribute too little to profits, and Wallace Printing will not want to accept additional work from the company.
b. Will likely seek to do business with competitors
c. Is grossly under billed for the job, while other jobs will be unfairly over billed.
d. Is fairly billed because resources are allocated uniformly to all jobs.

Answers

Answer:

a. contribute too little to profits, and Wallace Printing will not want to accept additional work from the company.

Explanation:

For reaching any conclusion first we have to determine the cost assigned by using the single cost driver which is shown below:

= Rate × Pages printed

= ($840,000 ÷ 12,000,000) × 76,000

= $5,320

And  Cost assigned using ABC  is

= (120,000 ÷ 200) × 2 + (640,000 ÷ 4000) × 10 + (80,000 ÷ 16000) × 38

= $2,990

By this above calculation, the first option is chosen as the cost are high as compared to the ABC while on the other hand the profit would be NIL

True or False: Used items like used clothing, electronics, and furniture are included in the computation for GDP because buyers and sellers exchanged money. Explain.

Answers

Answer:

False

Used item clothings aren't included in GDP.

The GDP includes only items produced in a given year. The items would have been included in the year they were produced and adding them to GDP again would be double counting

Explanation:

Gross domestic product is the sum of final goods and services produced in an economy within a given period which is usually a year.

GDP calculated using the expenditure approach = Consumption spending + Investment spending by businesses + Government Spending + Net Export

I hope my answer helps you

How does the format of the income statement for Organic Bones differ from the income statement of a​ merchandiser?

Answers

Answer: Cost of Goods Sold for Manufacturer is different from that of a Merchandiser

Explanation:

Organic Bones as a manufacturer will have a different cost of goods sold to a Merchandiser because it will have to include the cost of manufacturing in the Cost of Goods sold. In the Income statement of Organic Bones, the relevant Cost of Goods will be entered as Finished Goods which would be derived from the Cost of Goods Manufactured schedule.

Merchandisers on the other hand, buy the goods that they sell. They will have no need for a Schedule of Costs of Goods manufactured and so will have no Finished Goods as their Inventory. Their relevant cost of goods sold will be Purchases which they bought from suppliers.

1. Which of the following measures is an evaluation of a firm's ability to pay current liabilities?
A. Acid-test ratio.
C. Both (a) and (b).
B. Current ratio.
D. None of the above

Answers

Answer:

B. Current ratio

Current ratio is a comparison of current assets to current liabilities, calculated by dividing your current assets by your current liabilities.

Current ratio is an evaluation of a firm's ability to pay current liabilities. Thus, the correct answer is option B.

What is an current ratio?

The current ratio is a liquidity ratio that measures a company's ability to pay short-term or one-year obligations. It explains to investors and analysts how a company can maximise its current assets on its balance sheet in order to pay off its current debt and other payables.

A current ratio that is comparable to or slightly higher than the industry average is generally regarded as acceptable. A lower current ratio than the industry average may indicate a greater risk of distress or default. Similarly, if a company's current ratio is very high in comparison to its peer group, it indicates that management may not be utilising its assets efficiently.

Therefore, current ratio is the correct answer.

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The total cost of producing 15 tons of butter is $35000. If average variable cost is $530, then what is the firm's average fixed cost? (enter answer as just a number, no commas, dollar signs, or the like)

Answers

Answer:

$1803.33

Explanation:

average total cost = average variable cost + average fixed cost

average total cost = total cost / quantity = $35000  / 15 = $2,333.33

average fixed cost = $2,333.33 -  $530 = $1803.33

The Acmeville Metropolitan Bus Service currently charges $0.77 for an all-day ticket, and has an average of 472 riders a day. The bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. They must therefore find a way to increase revenues. The bus company is considering increasing the ticket price to $ 0.99 . The marketing department's studies indicate this price increase would reduce usage to 195 riders per day. Calculate the absolute value of the price elasticity of demand for bus tickets using the simple percentage change method. Round your answer to one decimal place.

Answers

Answer:

price elasticity of demand = -2.05, price elastic, or in absolute terms 2.05, price elastic

Explanation:

the formula to calculate price elasticity of demand is:

PED = % change in quantity / % change in price

% change in quantity = [(195 - 472) / 472] x 100 = -58.69%% change in price = [($0.99 - $0.77) / $0.77] x 100 = 28.57%

PED = -58.69% / 28.57% = -2.05

Generally when we calculate PED we use absolute values, i.e. this PED = 2.05. When PED > 1, price elastic, which means that any change in price will result in a larger change in quantity demanded. When PED < 1, price inelastic, which means that any change in price will result in a smaller change in quantity demanded. When PED = 1, unit elastic, which means that any change in price will result in a proportional and inverse change in quantity demanded.

Argentina can produce either 20 units of cloth or 2 units of wine, while Chile can produce either 24 units of cloth or 12 units of wine. If each country specializes in the good for which it has comparative advantage, the total output by the two countries will be:

Answers

Answer:

Their combined production should be 20 clothes and 12 wines.

Explanation:

Argentina's opportunity cost to produce 1 unit of cloth = 0.1 wine

Argentina's opportunity cost to produce 1 unit of wine = 10 clothes

Chile's opportunity cost to produce 1 unit of cloth = 0.5 wine

Chile's opportunity cost to produce 1 unit of wine = 2 clothes

Since Argentina' opportunity cost to produce clothes is lower, then it should specialize int he production of clothes. While Chile should specialize in the production of wine. Their combined production should be 20 clothes and 12 wines.

The company in the video relies on a contingent workforce. Why are faculty members at the Maine Media Workshop considered to be contingent workers

Answers

Answer:

a. They are temporary employees.

d. They are part-time employees.

Explanation:

Contingent Employees are employees that are hired by a company on a temporary basis. They are usually hired to perform a job at a time and hence do not cost as much as permanent staff.

The text from the video shows that Maine Media Workshops hires professionals in fields related to film-making to come and instruct at various workshops on a temporary basis which is inferebly a week or less. The temporary basis of this employment means that they are Contingent Employees who work part time.

Penny owned 2,000 shares of Dollar Inc. common stock that were purchased in Year 1 at $10.50 per share. Penny received a 5% non-taxable dividend of Dollar common stock in Year 2. In Year 5, the stock split 2 for 1. In the current year Penny sold 800 shares. What is Penny s basis in the 800 shares sold

Answers

Answer:

$4,000

Explanation:

Penny's originally purchased 2,000 stocks

she then received 5% stock dividends, which means that her total stocks were 2,100

then the stock split 2 for 1, so Penny had 4,200 stocks in total

stocks basis = $10.50 x 2,000 = $21,000

basis per stock = $21,000 / 4,200 stocks = $5 per stock

basis for 800 stocks sold = $5 x 800 = $4,000

atzinger Company budgets sales of $1,270,000, fixed costs of $157,200, and variable costs of $698,500. What is the contribution margin ratio for Matzinger Company?

Answers

Answer:

contribution margin ratio= 0.45

Explanation:

Giving the following information:

Budgets sales of $1,270,000,  and variable costs of $698,500.

To calculate the contribution margin ratio, we need to use the following formula:

contribution margin ratio= (sales - variable cost) / sales

contribution margin ratio= (1,270,000 - 698,500) / 1,270,000

contribution margin ratio= 0.45

Elevators, Inc. does considerable business overseas for high-rise luxury hotels. To speed up the building permit process, it authorized a project manager to pay a government official a "fee" in the amount of $500. It is common practice in the foreign country for government officials to accept a "fee" to expedite processes. In doing so, has Elevators, Inc. broken United States law? Select one

Answers

Answer:

No, Elevators, Inc. has not broken the law because payment was made in United States currency.

Explanation:

It operates a substantial business abroad for high-end luxury hotels. It authorized a project manager to "charge" a government official a charge of 500 for speeding up the building permit process. so

Under the law, it is illegal to bribe foreign officials to get business. But there is an exception to "facilitation payments", also known as grease payments made to speed up general government functions. Flexible payments can be used to persuade government officials to perform work that is already being done. Although many have argued that such payments are important for their operations in some areas, such as Asia and Africa, the difference between facility payment and bribery remains unclear.

Yes, Elevators, Inc. has broken the law because it has paid a bribe to a foreign government official.

Here, to speed up the building permit process, Elevators, Inc .does authorized the project manager to pay the government official in charge of expediting processes a "fee" in the amount of $500

The $500 is this case is known as a bribe payment and it is illegal in United States.

Therefore, the answer is Yes, Elevators, Inc. has broken the law because it has paid a bribe to a foreign government official.

The missing options includes "Yes, Elevators, Inc. has broken the law because it has paid a bribe to a foreign government official. Yes, Elevators, Inc. has broken the law because the amount paid to the government official was $500. No, Elevators, Inc. has not broken the law because payment was made in United States currency. No, Elevators, Inc. has not broken the law because "grease" payments are permitted under United States law."

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