Answer:1.business cycles 2. an economy's growth rate 3. less 4. aggregate demand-aggregate supply model
Explanation:
One branch of macroeconomics focuses on long-run growth and development, while the other branch focuses on___business cycles_______which are fluctuations in__an economy's growth rate______typically over time periods of five years_ less___ .One model that macro economists use to study these fluctuations, which are called recessions and expansions, is the aggregate demand-aggregate supply__model.
Macroeconomics is defined as that branch of economics which studies the behavior, performance and changes of economic situations as a whole considering the factors of general price level, technology, output, consumption, aggregate demand and supply, unemployment, inflation, recession, savings, investment etc and how these affects national income and best decisions that can improve the national economic growth
The goal of macro economists is to solve problems on the business cycle ( factors the cause short term fluctuations and their effects in national income) and ways to improve long-run economic growth.
The cost of an asset is $ 1 comma 050 comma 000, and its residual value is $ 130 comma 000. Estimated useful life of the asset is ten years. Calculate depreciation for the second year using the doubleminusdecliningminusbalance method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)
Answer:
$168,000
Explanation:
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life)
Depreciation factor = 2 x (1/10) = 0.2
depreciation expense in year 1 = 0.2 x $1,050,000 =$210,000
book value at the beginning of year 2 = $1,050,000 - $210,000 = $840,000
depreciation expense in year 2 = 0.2 x $840,000 = $168,000
Sharon Corporation redeems 20 shares of Kevin's common stock. Kevin directly owned 50 shares prior to the redemption. Kevin is also a 50% partner in AMI Partnership which also holds 50 shares of Sharon. How many shares is Kevin treated as owning prior to the redemption
Answer:
75 shares
Explanation:
In this specific scenario, it seems that Kevin is treated to 75 shares prior to the redemption. This is calculated by adding the 50 shares that Kevin holds directly prior to the redemption itself as well as the 25 extra shares that are held by AMI. These 25 shares are 50% of the total 50 shares that AMI holds since Kevin is a 50% partner.
Choose the most accurate statement: If these projects are mutually exclusive, which project should be chosen by the CEO of the firm if the CEO’s primary objective is to maximize shareholder value? Assume the opportunity cost of capital is 10% for both projects
Answer:
Project A is the better option than Project B.
Explanation:
The NPV of the project will decide which is the option with greater value to shareholders. As we can see that the NPV of Project A at 10% cost of capital is greater than the NPV of Project B at the same 10% cost of capital. So the best option here is Project A as is more in value than project B. Hence the CEO must select Project A.
Annual percentage rates (APRs) are computed using Group of answer choices None of the options are correct. best estimates of expected real costs. simple interest. either simple interest or compound interest. compound interest.
Answer: either simple interest or compound interest.
Explanation:
The annual percentage rate is the yearly interest rate that is charged to the borrowers and also paid to the investors. Annual percentage rate are computed using either simple interest or compound interest.
It should be noted that the annual percentage rate is expressed as a percentage and it represents actual annual cost of funds for a loan or an income that is earned on an investment.
Prepare the Budgets given the following information Budgeted sales are expected to be: January 200 Units February 300 Units March 400 Units April 300 Units May 400 Units Selling Price $10 Per unit A. Prepare the sales Budget (5 points) Sales Budget January February March Quarter Budgeted sales in units 200 300 400 900 Times selling price per unit $10 $10 $10 $10 Budgeted sells in dollars $2,000 $3,000 $4,000 $9,000 B. Prepare the Production Budget (5 points)
Answer:
Sales Budget
January February March April May
Units Sold 200 300 400 300 400
Price per unit $10 $ 10 $ 10 $ 10 $ 10
Sales Rev $ 2.000 $ 3.000 $ 4.000 $ 3.000 $ 4.000
Explanation:
We have to multiplithe amount of units sold each month by the sales price per unit of each month.
For the second question, which is the production budget we require the beginning inventory at Jan 1st and the desired inventory policy else, we cannot complete it. Please add this as details for the question Thank you =)
In its 2014 annual report, Campbell Soup Company reports beginning-of-the-year total assets of $8,113 million, end-of-the-year total assets of $8,323 million, total sales of $8,268 million, and net income of $807 million.
a. Compute Campbell?s asset turnover.
b. Compute Campbell?s profit margin on the sale.
c. Compute Campbell?s return on an asset using (1) asset turnover and profit margin and (2) net income.
Return on assets
(1) Assets turnover and profit margin _____%
(2) Net income _____%
Answer:
a. The asset turnover is $1.0061
b. The profit margin on the sale is 9.7605%
c. The return on an asset is 9.82%
Explanation:
a. In order to calculate the company asset turnover we would have to make the following calculation:
asset turnover=Turnover/Average operating assets
According to the given data:
Turnover=$8,268 million
Average operating assets=beginning-of-the-year total assets+nd-of-the-year total assets
Average operating assets=$8,113 million+$8,323 million
Average operating assets=$8,218 million
Therefore, asset turnover=$8,268 million/$8,218 million
asset turnover=$1.0061
b. In order to calculate the company profit margin on the sale we would have to make the following calculation:
profit margin on the sale=Net income*100/sales
Net income=$807 million
Therefore, profit margin on the sale=$807 million*100/$8,268 million
profit margin on the sale=9.7605%
c. In order to calculate the company return on an asset we would have to make the following calculation:
return on an asset=Assets turnover*Profit margin
return on an asset=$1.0061*9.7605%
return on an asset=9.82%
Imagine you are writing a classroom management program. In which of the following scenarios will dynamic data structures approach make your program more efficient? Group of answer choices
a. A classroom with a MAX of 24 students, being assigned 24 students.
b. A classroom with a MAX of 24 students, being assigned 15 students.
c. A school building with a MAX of 50 classrooms being assigned 30 classes.
d. A school building with a MAX of 50 classrooms being assigned 50 classes both
e. Both b and c
Answer: e. . Both b and c
Explanation:
When using a Dynamic Data Structure, the structure in place is not fixed but rather has an allowance for growth or shrinkage. The capacity has an allowance to take more data or less data as it is operated on.
When using the Dynamic data structure approach for the classroom management program therefore, there must be an allowance for an increase in students. This is why options B and C are correct because the classroom has more capacity than students and the school has more classroom capacity than classrooms utilized respectively.
Suppose there are five sellers and five buyers in a rental market, each willing to buy or sell one rental unit, with values of {1000,900,800,700,600}. Assuming no transactions costs and a competitive market, what is the equilibrium price in this market
Answer: $800
Explanation;
The Equilibrium price is the price where the quantity sold by buyers equals the quantity sold by sellers.
Going by the following schedule that price would be $800 because at that point Sellers are willing to sell 3 units and Buyers are willing to buy 3 units.
Price Quantity Demanded Quantity Sold
1,000 1 5
900 2 4
800 3 3
700 4 2
600 5 1
Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms that sell Blu-ray players: Movietonia and Videotech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its players.
Videotech Pricing
High Low
Movietonia Pricing High 11, 11 2, 15
Low 15, 2 8, 8
For example, the lower-left cell shows that if Movietonia prices low and Videotech prices high, Movietonia will earn a profit of $15 million and Videotech will earn a profit of $3 million. Assume this is a simultaneous game and that Movietonia and Videotech are both profit-maximizing firms.
1. If the firms do not collude, what strategies will they end up choosing?
2. The game between Movietonia and Videotech is an example of the prisoners' dilemma.
a. true
b. false
Answer:
pricing low
yes
Explanation:
Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.
Dominant strategy is the best option for a player regardless of what the other player is playing.
Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.
if either firm charges high, they either earn 11 million or 2 million.
if either firm charges low, it would earn either 15 million or 8 million.
because the payoffs of charging low is higher than the payoffs of charging high, the best strategy is for the firms to charge low if there is no cooperation.
the game is a prisoners dilemma because the choice the firms make isn't the choice that will yield the highest payoffs. the choice that would yield the highest payoffs is to both charge high prices.
If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development? What conditions would encourage research and development in competitive industries?
Answer:
1. In a Perfectly Competitive Market firms will always copy the products of other firms to make profit which will drive down the Profitability of the original firm. If firms in a Perfect Competition engage in Research and Development for new products and Technology, they would be incurring a massive expense on their part because such undertakings are not cheap. Were they to succeed and come up with a new product, that Product would be copied within a short period of time by their competitors who did not put up the amount of Investment that the original company did. This is what firms in Perfectly Competitive Markets are trying to avoid.
b. Government Intervention in the form of enforcing Patents, Copyright Protection and Intellectual Property will be needed. If firms can be sure that when they come with a new product, their rights to it will be protected in such a way that they make enough returns from it, they will engage in these R&D endeavors to be able to have an edge over their competitors in the market.
Sony has a better opportunity to reach the potential Millennial market segment, compared to unestablished manufacturers, because of its:_______
Answer:
full spectrum of product offerings
Explanation:
Sony has always been striving to serve its customer better. Millennial are the top brands that are considered in market. They are the organizations which capture major market share and are massive market segment. Sony has offered wide range of products to its customers.
After the JPR Corporation paid its employees on May 15, 2019, and recorded the corporation’s share of payroll taxes for the payroll paid that date, the firm’s general ledger showed a balance of $1,730 in the Social Security Tax Payable account, a balance of $356 in the Medicare Tax Payable account, and a balance of $1,972 in the Employee Income Tax Payable account. On May 16, 2019, the business issued a check to deposit the taxes owed in the local bank. Record this transaction in a general journal form.
Answer:
Given that the firm's general ledger showed the following:
Balance in the Social Security Tax Payable account = $1,730
Balance in the Medicare Tax Payable account = $356
Balance in the Employee Income Tax Payable account = $1,972.
Record this transaction in a general journal form:
Date: May 16, 2019
Account title: Social Security Tax Payale. Dr. $1,730
Medicare Tax Payable. Dr. $356
Employee Income Tax Payable, Dr. $1,972
Bank/Cash(Total), Cr. $4,058
Innovations are allowing consumers to utilize gesture, touch, and voice to control computers and other devices. This is an example of a(n) __________ force that could impact many industries.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Economic
b) Technological
c) Competitive
d) Regulatory
e) Social
And the correct answer is the option B: Technological.
Explanation:
To begin with, those kind of innovations like gesture, touch and voice commands that are focused in controlling the computers in a major amount of ways so therefore the use of the device will be easier for the users, are only trying to tend to the new ways of technology that will eventually in the future dominate in the industries and will cause an increase in the production of those companies that use that kind of technology because it only makes it easier to do the tasks and therefore that the technology force mentioned will only impact in a great way in many industries.
Planning and Writing Persuasive Requests In a business environment, persuasion is critical to success. Persuasion is necessary when you anticipate resistance or when you are making more than routine demands. Which of the following are elements of effective persuasion? Check all that apply. A. Involves coercion or trickery B. Deceives and fabricates evidence C. Explains logically and concisely the purpose of the request D. Establishes credibility E. Proves the merits of your proposal Fill in the blank with the most appropriate answer. In persuasive requests, the reasons and explanations usually (precede, follow, replace) the request.
Answer:
All of these alternatives are correct:
C. Explains logically and concisely the purpose of the request
D. Establishes credibility.
E. Proves the merits of your proposal
Explanation:
A persuasive request in a work environment can often occur, as this is a communication technique used when you want to convey a message in order to convince others to take specific actions.
Knowing how to develop a persuasive speech is essential for an effective leader, who can influence his subordinates through communication that retains attention, reduces resistance, creates interest and motivation.
For a persuasive message to be effective it must be developed through polite and professional writing, whose objectives are explicit and the reasons for the request are logical and demonstrate credibility. It is necessary to add to the persuasive message elements that justify the proposal and generate feelings of identification, emotion and reason, to create interest and to be able to persuade the audience and achieve the objectives.
A retired married customer, age 73, has a portfolio that is invested in Blue Chip stocks and Treasury bonds that provides current income. The customer is concerned that he is paying a very high Federal and State combined income tax rate. An appropriate recommendation for this customer would be to diversify part of his portfolio into an investment in:
Answer:
The answer is Municipal bonds
Explanation:
Municipal bonds are securities(debt securities) issued by states, cities, counties etc. It is generally issued to fund capital project like construction of roads, schools etc.
Municipal bonds are generally valued for being exempt from federal, state or local taxes taxes. Hence, the reason why the customer should invest in this type of bond since the customer is being concerned about high tax that he has been paying.
Quince Holman Corporation reports: Cash provided by operating activities $250,000 Cash used by investing activities 110,000 Cash provided by financing activities 140,000 Beginning cash balance 70,000 What is Holman's ending cash balance
Answer:
Holman's ending cash balance is $350,000.
Explanation:
The Ending Cash Balance can be obtained by Preparing a Cash Flow Statement as follows :
Quince Holman Corporation
Cash Flow Statement
Net Cash from Operating Activities $250,000
Net Cash from Investing Activities ($110,000)
Net Cash from Financing Activities $140,000
Movement during the Year $280,000
Cash and Cash Equivalents at the Beginning of the year $70,000
Cash and Cash Equivalents at the End of the year $350,000
Conclusion :
Holman's ending cash balance is $350,000.
Use the following information for Meeker Corp. to determine the amount of equity to report. Cash $ 72,000 Buildings 126,500 Land 208,600 Liabilities 131,500 A. $22,600. B. $275,600. C. $407,100. D. $538,600. E. $285,600.
Answer:
$276,500
Explanation:
The computation of the total equity is shown below;
As we know that
Accounting equation is
Total assets = Total liabilities + total stockholder equity
where,
Total assets is
= Cash + land + buildings
= $72,000 + $208,600 + $126,500
= $407,100
And, the total liabilities is $131,500
So, the total stockholder equity is
= $407,100 - $131,500
= $276,500
We simply applied the above formula
Prepare a bank reconciliation for Show Me, Inc., as of June 30 from the following information:
(a) The June 30 balance shown on the bank statement is $5,796.
(b) Outstanding checks at June 30 totaled $330.
(c) A deposit of $424 made on June 30 was not included in the balance shown on the bank statement.
(d) The bank statement contained an adjustment of $410 for a note receivable collected by the bank on behalf of Show Me, Inc. ($382 principal and $28 interest).
(e) A bank charge of $34 was made to the account during June. Although the company was expecting a charge, the amount was not known until the bank statement arrived.
(f) The bank erroneously charged a $340 check of Shirt, Inc., against the Show Me, Inc., bank account.
(g) The June 30 balance in the general ledger Cash account, before reconciliation, is $6,026.
(h) The bank statement included a notice that a customer's check for $172 that had been deposited on June 14 had been returned NSF.
Required:
(1) Prepare the bank reconciliation for Show Me, Inc., as of June 30.
(2) Prepare the appropriate adjusting entry(ies) or show the reconciling items in a horizontal model, for Show Me, Inc., related to the bank reconciliation.
Answer:
bank account reconciliation:
bank account balance $5,796
- outstanding checks $330
+ deposits in transit $424
+ error from Shirt, Inc., check $340
reconciled balance $6,230
cash account reconciliation:
cash account balance $6,026
+ note collected $410
- bank fee $34
- NSF check $172
reconciled balance $6,230
assets = liabilities + equity
cash acc. rec. notes rec. int. rec.
204 172 -382 -28 = 0 + -34
income statement
revenues - expenses = net income
0 - 34 = -34
All the adjustments are considered cash flows from operations.
For each separate company, compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Twix Dots Skor Net income $4,000 $100,000 $72,000 Depreciation expense 30,000 8,000 24,000 Accounts receivable increase (decrease) 40,000 20,000 (4,000 ) Inventory increase (decrease) (20,000 ) (10,000 ) 10,000 Accounts payable increase (decrease) 24,000 (22,000 ) 14,000 Accrued liabilities increase (decrease) (44,000 ) 12,000 (8,000 )
Answer:
Net cash flow from operating activities for Twix $34,000, Dots=$108,800, Skot = $108,000
Explanation:
Twix$ Dots$ Skot$
Net income 4,000 100,000 72,000
Adjustments to reconcile net income
to net cash provided by operations
Depreciation expense 30,000 8,000 24,000
Account receivable increase (decrease) 40,000 20000 -4,000
Inventory increase (decrease) -20,000 -10,000 10,000
Account payable increase (decrease) 24,000 -22,000 14.000
Accrued liabilities increase (decrease) -44,000 12,000 -8,000
Net cash flow from operating activities $34,000 $108,800 $108,000
Band Box Entertainment (BBE) operates a large store in Atlanta, Georgia.
The store has both a movie (DVD) section and a music (CD) section.
BBE reports revenues for the movie section separately from the music section.
Required:
Classify the following Costs that are found in the Merchandising sector.
Cost Direct/ Indirect Variable / Fixed
A. Annual retainer paid to a video distributor
B. Cost of store manager's salary
C. Costs of DVDs purchased for sale to customers
D. Subscription to DVD Trends magazine
E. Leasing of computer software used for financial budgeting at the BBE store
F. Cost of popcorn provided free to all customers of the BBE store
G. Cost of cleaning the store every night after closing
H. Freight costs of DVDs purchased by BBE
Answer:
Direct Costs are those costs that are directly linked to the production of a good or service.
Indirect Costs are not directly related but help facilitate the production of a good.
Fixed Costs are constant throughout the production life of a good.
Variable Costs change per quantity of goods Produced.
A. Annual retainer paid to a video distributor.
DIRECT and FIXED cost.
Video distributors are directly related to the amount of DVDs that will be sold. The amount is also a constant one so it is Fixed.
B. Cost of store manager's salary.
INDIRECT and FIXED Cost.
The manager is not directly related to the buying or selling of DVDs and CDs but is a constant cost that does not change by production.
C. Costs of DVDs purchased for sale to customers.
VARIABLE and DIRECT cost.
The cost of DVDs sold will have a direct impact on the sale of said DVDs because it can determine their price. It also changes as DVD numbers change.
D. Subscription to DVD Trends magazine.
DIRECT and FIXED cost.
Subscriptions enable the store know what to get meaning it is directly related to the DVDs. It will also be a fixed amount that does not change as more DVDs are bought.
E. Leasing of computer software used for financial budgeting at the BBE store.
INDIRECT and FIXED costs.
The computer software is not directly related to the sale or procurement of the DVDs. It is also a fixed amount as it is a lease that will not change regardless of how many DVDs are bought or sold.
F. Cost of popcorn provided free to all customers of the BBE store.
INDIRECT and VARIABLE.
These costs are not directly related to the DVDs being sold. Also they change per customer that comes in so they are Variable as well.
G. Cost of cleaning the store every night after closing.
INDIRECT and FIXED.
Costs again are not directly related to the DVDs and CDs. They are however fixed as they do not change per units sold.
H. Freight costs of DVDs purchased by BBE.
DIRECT and VARIABLE.
Freight Costs to ship DVDs is a cost that can be directly associated with selling the DVDs because they determine how the DVDs will be delivered. They are variable because they depend on the number of DVDs sold.
Pledging receivables: A) Allows firms to raise cash. B) Allows a firm to retain ownership of its receivables. C) Does not transfer risk of bad debts to the lender. D) Should be disclosed in the financial statements. E) All of the above
Answer:
E
Explanation:
Pledging receivables is when the receivables are used as collateral during a financial arrangement. When a business uses it's business assets as collateral to gain a loan.
All the options in the question constitutes what pledging receivables consists. Therefore option E is the right answer.
Leaper Corporation uses an activity-based costing system with the following three activity cost pools:
Total Activity Activity Cost Pool machine- Fabrication 35,000 hours Order processing 300 orders Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries Depreciation $420,000 170,000 190,000 Occupancy $780,000 Total The distribution of resource consumption across activity cost pools is given below:
Activity Cost Pools Order Processing Fabrication other Total Wages and salaries Depreciation 30% 25% 45% 100% 20% 50% 30% 100% 40% 35% 100% 25% Occupancy
The activity rate for the Order Processing activity cost pool is closest to:
The activity rate for the Order Processing activity cost pool is closest to:
a) $633 per order
b) $1,745 per order
c) $855 per order
d) $572 per order
Answer:
Order processing= $846.67 per order
Explanation:
Giving the following information:
Activity costs:
Wages and salaries= 420,000
Depreciation= $170,000
Occupancy= $190,000
Activity Cost Pools:
Order Processing:
Wages and salaries= 0.3
Depreciation= 0.25
Occupancy= 0.45
Order processing 300 orders
First, we need to calculate the total overhead cost for order processing:
Wages and salaries= 0.3*420,000= 126,000
Depreciation= 0.25*170,000= 42,500
Occupancy= 0.45*190,000= 85,500
Total= $254,000
Now, using the following formula, we can determine the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Order processing= 254,000/300= $846.67 per order
_____ illuminates exactly what activities are associated with serving a particular customer and how these activities are linked to revenues and the consumption of resources.
Answer:
Activity based costing
Explanation:
Activity based costing is defined as a method of costing that identifies the activities involved in production in an organisation, and assign cost of the activity to the product.
It provides an objective way of assigning cost. Activities that contribute more to the production of a product will have a higher cost assigned to that product.
Manufacturing companies more accurately assign overhead cost to products.
For example machine hours can be used as a cost driver in the production process. The higher the machine hours of a process the higher the cost of that process assigned to the product.
Bank A quotes a bid rate of $0.300 and an ask rate of $0.305 for the Malaysian ringgit (MYR). Bank B quotes a bid rate of $0.306 and an ask rate of $0.310 for the ringgit. What will be the profit for an investor that has $500,000 available to conduct locational arbitrage
Answer: $1639.3
Explanation:
From the question, we are informed that Bank A quotes a bid rate of $0.300 and an ask rate of $0.305 for the Malaysian ringgit (MYR) and that bank B quotes a bid rate of $0.306 and an ask rate of $0.310 for the ringgit.
The profit for an investor that has $500,000 available to conduct locational arbitrage goes thus:
Purchasing Malaysian ringgit (MYR) from bank A at the ask rate will be:
= $500,000/$0.305
= 1,639,344.3
Selling the Malaysian ringgit (MYR) at bank B based on the ask rate will be:
= 1,639,344.3 × 0.306
= $501,639.3
The profit for an investor that has $500,000 available to conduct locational arbitrage will be:
= $501,639.3 - $500,000
= $1639.3
Nabors Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Current Year Dec. 31, Previous Year Cash $1,430 $1,710 Temporary investments 3,120 3,840 Accounts receivable 7,150 2,610 Inventory 2,340 2,300 Accounts payable 6,500 5,100 Required: a. Compute the quick ratio on December 31 of both years. If required, round your answers to one decimal place. Quick Ratio December 31, current year December 31, previous year b. Is the quick ratio improving or declining?
Answer:
a. Quick ratio for current year =2.16
Quick ratio for current year =2.05
b. Improving
Explanation:
A.
To find quick ratios we need to divide current assets by current liabilities
Quick Ratio = [tex]\frac{currentasssets}{currentliabilities}[/tex]
Current assets Dec 31 current year Dec 31 previous year
Cash $1,430 $1,710
Temporary investment $3,120 $3,840
Accounts receivable $7,150 $2,610
Inventory $2,340 $2,300
Total current assets $14,040 $10,460
Current liability
Account payable $6,500 $5,100
Quick Ratio [tex]\frac{14040}{6500 }[/tex] [tex]\frac{10460}{5100}[/tex]
Quick Ratio 2.16 2.05
B.
As you can see above that in the previous year Nabors company had a quick ratio of 2.05 but it has slightly increased by 0.11 in the current year.
Answer:
Quick Ratio for the current year = 3.78
Quick Ratio for the previous year = 1.6
Explanation:
Nabors Company
Dec. 31, Current Year Dec. 31, Previous Year
Cash $1,430 $1,710
Temporary investments 3,120 3,840
Accounts receivable 7,150 2,610
Inventory 2,340 2,300
Accounts payable 6,500 5,100
Quick Ratio = Cash + Cash Equivalents + Accounts Receivables/ Accounts Payables
Quick Ratio for the current year = $ 1430+ 3120 + 7150/ 6500
= 24570/6500= 3.78
Quick Ratio for the previous year = $ 1710+ 3840 + 2610/ 5100
= 8160/5100= 1.6
A quick ratio less than 1.0 means that the current liabilities exceed the quick assets. a rule of thumb the quick ratio must have a value greater than 1.0 to conclude that the company is unlikely to face near term liquidity problems. . A value less than 1.0 raises the liquidity concerns unless the a company can generate enough cash from inventory sales or if much of its liabilities are not due until late in the next period.
Similarly a value greater than 1.0 can hide a liquidity problem if payable are due shortly and receivables are not collected late until next period.
It is improving.
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below:________.
Activity Cost Pool Activity Measure Activity Rate
Order size Number of direct labor-hours $ 16.85 per direct labor-hour
Customer orders Number of customer orders $ 320.00 per customer order
Product testing Number of testing hours $ 89.00 per testing hour
Selling Number of sales calls $ 1,090.00 per sales call
The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 200 direct labor-hours, 4 hours of product testing, and 2 sales calls.Required:Prepare a report summarizing the overhead costs assigned to the order for heavy-duty trailer axles. What is the total overhead cost assigned to the order?
Answer:
Overhead Report for heavy-duty trailer axles.
Order size ($ 16.85 × 200) $3,370.00
Customer orders ($ 320.00 × 1) $320.00
Product testing ($ 89.00 × 4) $356.00
Selling ( $ 1,090.00 × 2) $2,180.00
Total $6,226.00
Conclusion :
The total overhead cost assigned to the order is $6,226.00
Explanation:
ABC system allocates overheads to jobs using cost drivers.
First an Activity Center where costs accumulate is identified these can be several in our scenario we have four Activity Centers.
Then the Cost driver rate is calculated for each Activity Center. Our question has provided these.
The final step is to allocate the overheads to a particular job using the cost driver rate.
If government regulations force employers to provide dental insurance, then there is a movement up the:________.
1. AS curve as price level increased.
2. AS shifts right and price level would decrease.
3. AS shifts right and price level would increase.
4. AS shifts left and price level would decrease.
5. AS shifts left and price level would increase.
Answer:
The correct answer is the option 3: AS shifts right and price level would increase.
Explanation:
To begin with, the Aggregate Supply Curve is the total amount of goods and services that the suppliers are willing and able to offer at a certain price level given and at a certain period of time. If the costs of the sellers increases then that would mean that they would try to obtain more profits so that would implicate in an increase in the amount of quantity offered by them. So that means that the aggregate supply curve would shift to the right and the price level would increase as the sellers would try to earn more profits so that they could cover all the new costs given by the government.
A customer owns 100 shares of ABC stock and owns 1 ABC Put option. The customer wishes to sell the stock by exercising the put, but wishes to retain a recently declared cash dividend. The first date that the customer can exercise the put and still retain the dividend is:
Answer:
July 15th
Explanation:
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An aging of a company's accounts receivable indicates that $3140 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $820 debit balance, the adjustment to record bad debts for the period will require a:__________
a. debit to Bad Debt Expense for $3140.
b. credit to Allowance for Doubtful Accounts for $820.
c. debit to Bad Debt Expense for $3960.
d. debit to Bad Debt Expense for $2320.
Answer:
c. debit to Bad Debt Expense for $3960.
Explanation:
The journal entry to record the bad debt expense is shown below;
Bad debt expense Dr ($3,140 + $820) $3,960
To Allowance for doubtful debts $3,960
(Being the bad debt expense is recorded)
For recording this we debited the bad debt expense as it increased the expenses and credited the allowance for doubtful debts as it decreased the assets
Therefore option c is correct
You have a portfolio that is equally invested in Stock F with a beta of .94, Stock G with a beta of 1.36, and the market. What is the beta of your portfolio
Answer:
Beta protfolio= 1.15
Explanation:
Giving the following information:
Stock F:
Beta= 0.94
Stock G:
Beta= 1.36
To calculate the beta of the portfolio, we need to use the following formula:
Beta protfolio= (proportion of investment A*beta A) + (proportion of investment B*beta B)
Beta protfolio= (0.5*0.94) + (0.5*1.36)
Beta protfolio= 1.15