Answer:
GAZ's price/earnings ratio is 4.8
Explanation:
In order to calculate GAZ's price/earnings ratio we would have to calculate the following formula:
GAZ's price/earnings ratio=market value per share/earnings per share
market value per share= $ 12
earnings per share=net income- preferred dividend/Average number of common shares
earnings per share=$42,000-$4,500/(16,000+14,000)/2
earnings per share=$2.50
Therefore, GAZ's price/earnings ratio= $ 12/$2.50
GAZ's price/earnings ratio=4.8
GAZ's price/earnings ratio is 4.8
In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption function is Upper C equals 1000 plus 0.9 Upper YC = 1000 + 0.9Y.
Thus, autonomous consumption is _________ nothing and the marginal propensity to consume is ______________.
A consumer whose income increases by $100 will increase consumption by $ ____________.
Answer:
Autonomous consumption is $1,000 and the marginal propensity to consume is 0.9.
A consumer whose income increases by $100 will increase consumption by $90.
Explanation:
Given C = 1000 + 0.9Y
Autonomous consumption refers to consumption expenditure of consumers that does not depend on income. Therefore, autonomous consumption is therefore the consumption expenditure made by the consumers when they do not have income or when income is zero (i.e. when Y = 0).
Substituting for Y = 0 into the consumption function, we can obtain autonomous consumption is follows:
Autonomous consumption = 1000 + (0.9 * 0) = 1,000
The marginal propensity to consume refers to the proportion of the increase in disposable income that is spent on the consumption of goods and services by a consumer. From the consumption function, the marginal propensity to consume is 0.9.
Since marginal propensity to consume is 0.9, a consumer whose income increases by $100 will therefore increase consumption by $90 (i.e. $100 * 0.9 = $90).
Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics:
Fuel $11,506
Flight crew salaries 8,813
Airplane depreciation 4,161
Variable cost per passenger—business class 45
Variable cost per passenger—economy class 35
Round-trip ticket price—business class 515
Round-trip ticket price—economy class 285
It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. If required round the answers to nearest whole number.
Required:
a. Compute the break-even number of seats sold on a single round-trip flight for the overall product. Assume that the overall product is 10% business class and 90% economy class tickets.
b. How many business class and economy class seats would be sold at the break-even point?
Answer:
a. Compute the break-even number of seats sold on a single round-trip flight for the overall product. Assume that the overall product is 10% business class and 90% economy class tickets.
90 ticketsb. How many business class and economy class seats would be sold at the break-even point?
business class = 9 ticketseconomy class = 81 ticketsExplanation:
Fixed costs:
Fuel $11,506 Flight crew salaries $8,813 Airplane depreciation $4,161Total $24,480Variable costs:
Variable cost per passenger - business class 45 Variable cost per passenger - economy class 35Contribution margin:
Business class ticket = $515 - $45 = $470Economy class ticket = $285 - $55 = $250Weighted average contribution margin:
(10% x $470) + (90% x $250) = $272break even point in units = $24,480 / $272 = 90 seats
business class = 90 x 10% = 9 seats
economy class = 90 x 90% = 81 seats
True or False: Computing interest using the sum-of-the-digits method allocates more interest at the beginning of a loan than at the end of the loan.
Answer:
True
Explanation:
To illustrate how the sum-of-the-digits method allocates interest we can use a lease example:
You are the lessor and you will lease a machine during 4 years. The lease requires 4 equal payments of $100,000 at the beginning of the year. After the lease, the asset's salvage value = $0.
The asset's current value = $300,000, so total interests received = $100,000
Using the sum-of-the-digits method, you will allocate interest as follows:
year 1 = 3/6 x $100,000 = $50,000year 2 = 2/6 x $100,000 = $33,333year 3 = 1/6 x $100,000 = $17,000The largest portion of interests is allocated during the beginning of the loan.
Time Remaining 1 hour 48 minutes 56 seconds01:48:56 Item 5Item 5 Time Remaining 1 hour 48 minutes 56 seconds01:48:56 Accounts payable are: Multiple Choice Amounts received in advance from customers for future services. Always payable within 30 days. Estimated liabilities. Amounts owed to suppliers for products and/or services purchased on credit.
Answer:
Amounts owed to suppliers for products and/or services purchased on credit.
Explanation:
Accounts payable are basically short term debts that a company has with its suppliers. E.g. a retailer purchases goods from a wholesaler on terms n/30. In this case, the accounts payable would be the amount of money owed to the retailer. There is no specific time frame for an accounts payable, since it varies depending on the credit that the supplier gives. E.g. sometimes a supplier will sell on a 45 day credit period, or even 60 day period.
Suppose that you just purchased 150 shares of XYZ stock for $60 per share. a. If the initial margin requirement is 71.00%, how much money must you borrow?
Answer:
$2,610
Explanation:
Calculation for how much money you must borrow.
Using this formula
Amount to be borrowed =( Purchased shares* Per share price*(Initial margin requirement percentage)
Let plug in the formula
Amount to be borrowed= 150 shares*$60 per shares *(1-0.71)
Amount to be borrowed=$9,000*(0.29)
Amount to be borrowed=$2,610
Therefore how much money you must borrow will be $2,610
The cost of units transferred from Work in Process Inventory to Finished Goods Inventory is called the cost of goods manufactured.
1. True
2. False
Answer:
1. True
Explanation:
Work in process inventory is inventory that is still undergoing processing. When the processing is completed, the goods (inventory) become finished goods. And they are transferred to Finished Goods Inventory as cost of goods manufactured. Finished Goods Inventory represents goods that are available for sale. The cost of finished goods inventory also forms part of the cost of goods sold, which is used in determining the gross profit. Accounting for work in process inventory is part of the multi-step system of accumulating and allocating cost of production to finished goods.
An example of forbearance is ________. Select one: A. past consideration B. selling assets to avoid payment to creditors C. a promise to do something that you are already obligated to do D. refraining from the use of liquor, assuming the promisor is of legal drinking age E. one party making a promise, knowing the other party will rely on it
Answer:
D. refraining from the use of liquor, assuming the promisor is of legal drinking age
Explanation:
forbearance is having self control or restraint.
An adult of legal age that restrains himself from drinking exhibits forbearance
During the first year of Wilkinson Co.'s operations, all purchases were recorded as assets. Supplies in the amount of $28,800 were purchased. Actual year-end supplies amounted to $6,600. The adjusting entry for store supplies will
Answer:
The expense account will be increased by $22,200
Explanation:
During the first year, all purchases were recorded as assets instead of expenses(supplies). This means asset account have been overstated while expenses account have been understated.
The adjusting entry will be
Supplies purchased - Actual year-end supplies
$28,800 - $6,600
$22,200.
The expense account will be increased by $22,200
Not only do businesses benefit from the protections of __________, consumers do as well; they allow consumers to correctly identify the products they want to purchase.
Answer:
Trademarks.
Explanation:
Trademarks can be said to be symbols or logos that are been attached to a certain product that makes it distinct from the others and with times turns to shine as an authenticity mark or quality symbol of the merchant or the said product.
The above discusses one of the crucial benefits of trademarks; this is seen to be beneficial not only to the business owners or merchants but the customers are inclusive here, this is because these logos help them ascertain or easily identify their likely said products with little or no stress, and this is with peace of mind.
Refer to the following selected financial information from McCormik, LLC. Compute the company's days' sales in inventory for Year 2. (Use 365 days a year.)
Year 2 Year 1
Cash $39,100 $33,850
Short-term investments 106,000 68,000
Accounts receivable, net 93,500 87,500
Merchandise inventory 129,000 133,000
Prepaid expenses 13,700 11,300
Plant assets 396,000 346,000
Accounts payable 105,400 115,800
Net sales 719,000 684,000
Cost of goods sold 398,000 383,000
a) 53.8.
b) 85.7.
c) 47.5.
d) 45.9.
e) 118.3.
Answer:
e) 118.3.
Explanation:
days' sales in inventory = (average inventory x 365 days) / cost of goods sold year 2
cost of goods sold year 2 = $398,000inventory year 2 = $129,000days' sales in inventory = ($129,000 x 365 days) / $398,000 = 118.30 days
Days' sales in inventory measures how much time it takes on average for a company to sell its inventory.
Years ago, a bond was issued at par with a 7% coupon. This year, new issue bonds of similar credit quality are being issued at 10%. Which statement is TRUE
Answer: A. The new bonds will be issued at a premium to the current price of the 7% bonds
Explanation:
The New Bonds will have a coupon of 10% which will be higher than the 7% that was previous on offer for the same type of bonds.
This means that the same type of bond is giving a greater return than before. Investors will therefore want more of the bond giving out better returns and will not mind paying a higher price to get it.
For this reason, the bonds issued this year with a 10% coupon will sell at a Premium (higher than) the bonds that were issued years ago that only have a coupon rate of 7%.
Garcia Company has 10,400 units of its product that were produced last year at a total cost of $156,000. The units were damaged in a rainstorm because the warehouse where they were stored developed a leak in the roof. Garcia can sell the units as is for $3 each or it can repair the units at a total cost of $18,400 and then sell them for $7 each. Calculate the incremental net income if the units are repaired
Answer:
$23,200
Explanation:
Alternative 1 Alternative 2 Incremental
no repairs repair units revenue
sales revenue $31,200 $0 ($31,200)
repair costs $0 -$18,400 ($18,400)
revenue from $0 $72,800 $72,800
selling repaired units
total $23,200
Incremental revenues refer to the extra or additional revenues generated by a business activity or transaction. In this case, repairing and then selling the damaged units would increase income by $23,200.
You need to have $33,250 in 20 years. You can earn an annual interest rate of 4 percent for the first 6 years, 4.6 percent for the next 5 years, and 5.3 percent for the final 9 years. How much do you have to deposit today
Answer:
The amount needed to be deposited today = $13184.93
Explanation:
From the given information;
You need to have $33,250 in 20 years.
Annual interest rate :
4 percent for the first 6 years
4.6 percent for the next 5 years
5.3 percent for the final 9 years
The amount needed to be deposited today =
[tex]\dfrac{33250}{(1+\dfrac{4}{100})^6 \times (1+\dfrac{4.6}{100} )^5 \times (1+\dfrac{5.3}{100} )^9 }[/tex]
The amount needed to be deposited today = [tex]\dfrac{33250}{(1+0.04)^6 \times (1+ 0.046 )^5 \times (1+0.053 )^9 }[/tex]
The amount needed to be deposited today = [tex]\dfrac{33250}{(1.04)^6 \times (1.046 )^5 \times (1.053 )^9 }[/tex]
The amount needed to be deposited today = [tex]\dfrac{33250}{1.265319018 \times 1.252155953 \times 1.591678466 }[/tex]
The amount needed to be deposited today = $13184.93
At the beginning of the year, Ann and Becky own equally all of the stock of Whitman, Inc., an S corporation. Whitman generates a $120,000 loss for the year. On the 189th day of the year, Ann sells her half of the Whitman stock to her son, Scott. Becky's stock basis is $41,300 How much of the Whitman loss belongs to Ann and Becky? In your computations, round any divisions to four decimal places. Round the final answer to the nearest dollar. Assume a 365 day year. Ann's share of Whitman's loss is $_______ and Becky's share of the loss is $______ However,______ loss is limited to $__________.
Answer:
1. Share of Ann's Loss: $31,048
2. Share of Becky's Loss: $60,000
3. Maximum Loss Allowed: $41,300
Explanation:
The total loss for the year is $120,000 and both Ann and Becky own 50% each.
1. Share of Ann's Loss:
Ann had ownership of Whitman Inc. for 189 days which means the 50% of the total loss would be further lessened by 189/365 factor.
Mathematically:
Ann's Loss = $1,20,000 * 50% * (189/365) = $31,048 Loss
2. Share of Becky's Loss:
This means that the share of loss for Becky would be = $120,000 * 50%
= $60,000
3. Maximum Loss Allowed:
As the stock basis is $41,300, hence the maximum loss for Becky would be $41,300.
Knowledge Check 01 Coolidge Company owes $1,000 for merchandise inventory purchased from Ross Company during April. The amount owed is now past-due. On June 15, Coolidge meets with Ross and convinces Ross to accept $400 cash and a 30-day, 10 percent, $600 note payable to replace the account payable. Prepare the June 15 journal entry for Coolidge entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Journal Entry is as follows;
June 15
DR Accounts Payable $1,000
CR Cash $400
CR Notes Payable $600
Two cities are identical in all respects except City A has an assessment ratio of 100% and City B (in another state) has an assessment ratio of 25%. Both cities need to raise $1,000,000 in property tax revenues. The statutory tax rates on property are
Available Options are:
A. higher in City A than City B.
B. higher in City B than City A.
C. identical in both cities.
D. dependent on non-property tax revenues in each.
Answer:
Option B. Higher in the city B than in city A.
Explanation:
If we talk about the assessment ration, then it is calculated as under:
Assessment ratio = Value of property assessed by municipality / Fair Market value of the property
This ratio helps in calculating the property tax for each year and if the ratio is higher then the property tax rate will be set higher to collect the target property tax revenue and vice versa.
As in this case, the assessment ratio of company B is 100% which is higher than city A, which means that the city B will require higher tax rates to collect the target property tax revenue.
Hence the property tax rate in city B will be higher than City A to collect the same target property tax revenue.
Under absorption costing, a company had the following unit costs when 18,000 units were produced.
Direct labor $2
Direct material 3
Variable overhead 4
Total variable cost 9
Fixed overhead ($50,000/10,000 units) 5
Total production cost per unit $14
Required:
Compute the company's total production cost per unit if 12,500 units had been produced. Total production cost per unit.
Answer:
Total unitary cost= $13
Explanation:
Giving the following information:
Direct labor $2
Direct material 3
Variable overhead 4
Total variable cost= 9
Fixed overhead= $50,000
Units produed= 12,500
To calculate the total cost per unit, first, we need to calculate the unitary fixed overhead.
Unitary fixed overhead= 50,000/12,500= $4
Total unitary cost= 9 + 4= $13
A company purchased a commercial dishwasher by paying cash of $5,300. The dishwasher's fair value on the date of the purchase was $5,700. The company incurred $320 in transportation costs, $210 installation fees, and paid a $230 fine for illegal parking while the dishwasher was being delivered. For what amount will the company record the dishwasher
Answer:
$5,830
Explanation:
Relevant data provided
Cash paid = $5,300
Transportation cost = $320
Installation fees = $210
The computation of the amount that will record the dishwasher is shown below:-
Total cost = Cash paid + Transportation cost + Installation fees
= $5,300 + $320 + $210
= $5,830
Therefore for computing the total cost we simply applied the above formula and ignore all other values as they are not relevant.
Given the following items and costs as of the balance sheet date, determine the value of Light Company's merchandise inventory.
- $2,400 goods sold by Light to another company. The goods are in transit and shipping terms are FOB shipping point.
- $3,400 goods sold by another company to Light. The goods are in transit and shipping terms are FOB shipping point.
- $4,400 owned by Light but in the possession of another company, the consignee.
- Damaged goods owned by Light that originally cost $5,400 but now have an $1,200 net realizable value.
Answer:
Light Company
Merchandise Inventory:
Goods $2,400 sold on FOB shipping point = $0
Goods $3,400 bought on FOB shipping point = $3,400
Goods $4,400 on consignment = $4,400
Goods $5,400 with net realizable value of $1,200 = $1,200
Value of inventory owned by Light Company = $9,000
Explanation:
a) Goods $2,400 sold on FOB shipping point: FOB shipping point means Free on Board shipping point. This trade term specifies when ownership right is established, that it is at the shipping point and not the destination of the goods when the buyer takes possession. The ownership was transferred to customer at shipping point with all risks and benefits. They no longer belong to Light and are therefore not part of Light's inventory after the shipment.
b) Goods $3,400 bought on FOB shipping point: As explained above, the ownership right and obligation were transferred at shipping point. The goods belong to Light as it is the lawful owner based on the shipping term.
c) Goods $4,400 on consignment: Goods on consignment do not belong legally to consignee though they are at his physical possession. They belong to the consignor until they are sold to a third party.
d) Goods $5,400 with net realizable value of $1,200: The value of an item is not actually the cost but what it can be sold for. This is especially so for an item that had previously suffered some damage. The net realizable value is therefore to be used to account for the damaged goods so that profit is not overstated.
The purchasing function, sometimes called ________, is an important part of any firm's production strategy.
Answer:
Procurement
Explanation:
The purchasing function, sometimes called procurement is an important part of any firm's production strategy. The role of procurement is simply to get goods and services for the business needs.
Procurement is the act of getting goods or services, for business purposes. It is generally the last act of purchasing.
Can you explain answer below:
#28 The Canadian subsidiary of a U.S. company reported cost of goods sold of 50,000 C$, for the current year ended December 31. The beginning inventory was 15,000 C$, and the ending inventory was 10,000 C$. Spot rates for various dates are as follows:
Date beginning inventory was acquired $1.08 = 1C$
Rate at beginning of the year $1.10 = 1C$
Weighted average rate for the year $1.12 = 1C$
Date ending inventory was acquired $1.13 = 1C$
Assuming the Canadian dollar is the functional currency of the Canadian subsidiary, the translated amount of cost of goods sold that should appear in the consolidated income statement is
Answer is C. $56,000
Answer:
$56,000
Explanation:
Data:
Cost of good sold (single) = $50,000
Weighted average rate of the year = $1.12
Cost of good sold consolidated = ???????
Solution:
In order to find the translated amount of cost of goods sold that should appear in the consolidated income statement, we will multiply the cost of goods sold given for Canadian subsidiary with the weighted average rate of the year.
Calculation:
Cost of good sold (consolidated) = $50,000 x $1.12
Cost of good sold (consolidated) = $56,000
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5. Eleven sellers are also willing to sell at the same prices. How many transactions must the market maker make if he wants to maximize his profits?
Answer:
maximum profit ($30 in total) is obtained by selling 5 units
Explanation:
if the market maker buys and sells one unit, his/her profit = $15 - $5 = $10 if the market maker buys and sells two units, his/her profit = $10 + ($14 - $6) = $18 if the market maker buys and sells three units, his/her profit = $18 + ($13 - $7) = $24 if the market maker buys and sells four units, his/her profit = $24 + ($12 - $8) = $28 if the market maker buys and sells five unit, his/her profit = $28 + ($11 - $9) = $30the maximum profit per unit is obtained by selling only 1 unit, but the total maximum profit is obtained by selling 5 units.
Suppose that the presidents of two auto manufacturing companies exchange text messages in which they discuss jointly raising prices on their new lines of hybrid SUVs. Which law does this illegal communication violate?
Answer:
Sherman Antitrust Act of 1890
Explanation:
Based on the information provided within the question it can be said that this communication is violating the Sherman Antitrust Act of 1890. This Act was passed prohibiting any contract, trust, or conspiracy in restraint of interstate or foreign trade in order to prevent oppressive business practices and monopolies. This is what the two companies are doing by agreeing to jointly raise the price they are able to control the entire markets price thus creating a monopoly in the automotive industry, which forces consumers to pay a lot more than what the vehicles are actually worth.
Parramore Corp has $17 million of sales, $3 million of inventories, $4 million of receivables, and $3 million of payables. Its cost of goods sold is 65% of sales, and it finances working capital with bank loans at an 6% rate. Assume 365 days in year for your calculations. Do not round intermediate steps.
What is Parramore's cash conversion cycle (CCC)? Do not round intermediate calculations. Round your answer to two decimal places.
days
Answer:
Parramore's cash conversion cycle (CCC) is 85.88 days.
Explanation:
The cash conversion cycle (CCC) refers to a metric that is used to express the time or number of days a firm takes to convert its inventory and other investments resources into cash flows from sales.
CCC has three components: Days Inventory Outstanding (DIO), Days Sales Outstanding (DSO), and Days Payable Outstanding (DPO). CCC can therefore be calculated using these three components as follows:
CCC = DIO + DSO - DPO ........................... (1)
We need to calculate each of these components first as follows:
DIO = (Inventories / Cost of good sold) * 365 = [3 / (65% * 17)] * 365 = 99.0950226244344
DSO = (Receivables / Sales) * 365 = (4 / 17) * 365 = 85.8823529411765
DPO = (Payable / Cost of good sold) * 365 = [3 / (65% * 17)] * 365 = 99.0950226244344
Substituting all the values into equation (1), we have:
CCC = 99.0950226244344 + 85.8823529411765 + 99.0950226244344 = 85.88 days.
Therefore, Parramore's cash conversion cycle (CCC) is 85.88 days. That is, it takes Parramore Corp 85.88 days to convert its inventory and other investments resources into cash flows from sales.
g Donald’s employer fires Donald after only four months on the job, a clear breach of Donald’s written twelve-month employment contract. Donald is entitled to recover as damages:
Answer:
Compensatory Damages
Explanation:
Based on this scenario it can be said that Donald is entitled to Compensatory Damages. This is a lawsuit that covers the loss that the non-breaching party incurred as a result of the breach of contract. In this scenario, Donald's employer breached the contract by firing Donald before the twelve months. Therefore Donald can sue for compensatory damages which would be the amount of money that he would have made in the rest of the twelve months.
a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 11%, callable, 10-year bonds. These bonds were issued on January 2018 and pay interest on January 1 and July 1. The bonds yield 10%. Instructions: a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018 b. Prepare a bond amortixation schedule up to and including January 1, 2022 c. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021. d. Prepare the journal entry to record the bond called on January 2021 at 106
Answer:
a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018
we must first determine the market price of the bonds:
PV of face value = $2,000,000 / (1 + 5%)²⁰ = $753,778.97 ≈ $753,779
PV of coupon payments = $110,000 x 12.462 (PV annuity factor, 5%, 20 periods) = $1,370,820
market value of the bonds = $753,779 + $1,370,820 = $2,124,599
January 1, 2018, bonds are issued at a premium
Dr Cash 2,124,599
Cr Bonds payable 2,000,000
Cr Premium on bonds payable 124,599
b. Prepare a bond amortization schedule up to and including January 1, 2022
since we are not told which amortization method to use, I will use the straight line method.
Date Interest Cash Premium Carrying
expense paid amortization value
7/2018 $103,770 $110,000 $6,230 $2,118,369
1/2019 $103,770 $110,000 $6,230 $2,112,139
7/2019 $103,770 $110,000 $6,230 $2,105,909
1/2020 $103,770 $110,000 $6,230 $2,099,679
7/2020 $103,770 $110,000 $6,230 $2,093,449
1/2021 $103,770 $110,000 $6,230 $2,087,219
7/2021 $103,770 $110,000 $6,230 $2,080,989
1/2022 $103,770 $110,000 $6,230 $2,074,759
c. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021.
bond premium amortization per coupon = 124,599 / 20 = $6,229.95 ≈ $6,230
January 1, 2020, coupon payment
Dr Interest expense 103,770
Dr Premium on bonds payable 6,230
Cr Cash 110,000
January 1, 2021, coupon payment
Dr Interest expense 103,770
Dr Premium on bonds payable 6,230
Cr Cash 110,000
d. Prepare the journal entry to record the bond called on January 2021 at 106
Dr Bonds payable 2,000,000
Dr Premium on bonds payable 87,219
Dr Loss on retirement of debt 32,781
Cr Cash 2,120,000
Windsor Corporation has retained earnings of $702,500 at January 1, 2017. Net income during 2017 was $1,426,500, and cash dividends declared and paid during 2017 totaled $83,200. Prepare a retained earnings statement for the year ended December 31, 2017. Assume an error was discovered: land costing $89,590 (net of tax) was charged to maintenance and repairs expense in 2014. (List items that increase retained earnings first.)
Answer:
The end of the year balance in retained earnings after correction of prior period error is $2,135,390
Explanation:
It is important to note that the error discovered has reduced retained earnings previously and by the time it is corrected retained earnings would increase by that amount of $89,590
Beginning retained earnings $702,500
net income for 2017 $1,426,500
dividends declared and paid in 2017 ($83,200)
correction of prior period error $89,590
Ending retained earnings $2,135,390
A manager recorded the performance review scores for each employee and placed the results in the bar chart below. All employees received a rating on each of the Evaluation Categories. If Person 6 obtained the highest score possible, what score did Person 2 receive
Answer and Explanation:
There are six people totaling on behalf of the Score
But as a person 2 scores as much as a person 6 scores And person 1 scores as much as a person 5 scores so for all six people we only need four different ranking categories.
As an individual 6 score thus the highest
There are two people Pers 2 and Individual 6 in Excellent Category
We can say that the highest score belongs to person 3 hence Person 3 categories as Good after them from the graph.
After him, the highest score goes to person 1 and person 5, since both score equal
While person 1 and person 5 appear at Category Fair
The last person who is a minimum score of Person 4 thus falls in Poor Category.
We can also see, as with the highest scorers (2 and 6), that a total of 9 squares (these none squares are counted separately by lines in the graph) if we take each line as 4 units.
Then Individual 2 scores 36
(The only probability divisible by 9 is here 36)
Thus we may claim that individual 2 comes with 36 points in Category Excellence.
Which of the following statements about the General Agreement on Tariffs and Trade (GATT) are true?
A. It was established to reduce barriers to international trade.
B. It was established as a result of the Uruguay Round of negotiations.
C. Its original provisions governed trade in both goods and services.
D. It was established in 1947.
Answer:
A and D
Explanation:
Here, we want to select which of the options are correct;
A is correct
The GATT was established to provide access to more international trade between countries through the reduction of tarrifs. Hence , it helped reduce the tariff barrier in international trade.
B is incorrect
It is the other way round.
In fact, it is thus same Uruguay round of negotiations that gave birth to its successor which is WTO(world trade organization)
C is incorrect
The service provision is under the GATS( General agreement on trades in services).
The service branch was negotiated in 1995 as against the goods branch already in place in 1947
D is correct
It was indeed negotiated in 1947
Chamberlain Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 6 percent coupon bonds on the market that sell for $1,083, make semiannual payments, and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?
Answer:
5.36%
Explanation:
We would need to calculate the yield to maturity of the current bonds:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
coupon = $1,000 x 6% x 1/2 = $30face value = $1,000market value = $1,083n = 20 x 2 = 40YTM = {$30 + [($1,000 - $1,083)/40]} / [($1,000 + $1,083)/2] = $27.925 / $1,041.50 = 0.026812 x 2 = 0.05362 = 5.36%
Since the bond's coupon rate is higher than the market rate, the bonds are sold at a premium. In order to sell bonds at the par value, you must lower the coupon rate.