Answer:
An apple, potato, and onion all taste the same if you eat them with your nose plugged
Explanation:
In a Harvard print journal and ejournal article references for a reference list, which elements, if any, are placed in round brackets?
Author and journal title.
Author and issue number.
Year of publication and issue number, if there is one.
Article title and year of publication.
Answer: Year of publication and issue number, if there is one.
Explanation:
There are quite a number of referencing style conventions available in the world today with some of the most prominent being the APA style, MLA and the Chicago style.
Harvard has its own referencing style that may not be as popular as the above but is very well known nonetheless. When referencing using the Harvard style and the year of publication and issue number needs to be included in a print or e-journal reference, it is to be placed in a round bracket. If there isn't any then there is no need.
Betsy Union is the Pika Division manager and her performance is evaluated by executive management based on Division ROI. The current controllable margin for Pika Division is $46,000. Its current operating assets total $210,000. The division is considering purchasing equipment for $40,000 that will increase sales by an estimated $10,000, with annual depreciation of $10,000. If the equipment is purchased, what will happen to the return on investment for the division
Answer:
Pika Division
Betsy Union
The return on investment will reduce from 21.9% to 18.4%.
Explanation:
a) Data and Calculations:
Current controllable margin = $46,000
Current operating assets = $210,000
Current return on investment = $46,000/$210,000 * 100 = 21.9%
Increase in sales as a result of the new equipment = $10,000
Increase in depreciation = $10,000
Operating assets after the purchase of the new equipment = $250,000 ($210,000 + $40,000)
Future controllable margin = $46,000 ($46,000 + $10,000 - $10,000)
Future return on investment = $46,000/$250,000 * 100
= 18.4%
During year 8, Clark Company manufactured equipment for its own use at a total cost of $2,400,000. The project required the entire year to complete and all costs were incurred uniformly throughout the year. At the beginning of the period, Clark was able to borrow $1,500,000 at 6% specifically for the purchase of materials and the manufacture of the equipment. The entire debt, with interest was repaid on December 31, year 8, replaced with a long-term loan. Throughout year 8, Clark Company had additional debt of $1,000,000 with a weighted average interest rate of 7%. If Clark Company capitalizes the maximum amount of interest allowable under GAAP, how much will Clark report as interest expense in year 8
Answer:
$88,000
Explanation:
Calculation to determine how much will Clark report as interest expense in year 8
First step is to calculate the total interest expense for the year
Total interest expense = ($1,500,000 x 6%) + ($1,000,000 x 7%)
Total interest expense = $90,000 + $70,000
Total interest expense=$160,000
Second step is to calculate the weighted average costs
Weighted average costs = $2,400,000 / 2
Weighted average costs= $1,200,000
Third step is to calculate the capitalize interests
Capitalize interests =$1,200,000 x 6%
Capitalize interests= $72,000
Now let calculate the interest expense in year 8 using this formula
Year 8 Interest expense=Total interests - Capitalized interests
Let plug in the formula
Year 8 Interest expense= $160,000 - $72,000
Year 8 Interest expense= $88,000
Therefore The amount that Clark will report as interest expense in year 8 is $88,000
17. Calculating Future Values Streamsong Credit Bank is offering 4.7 percent compounded daily on its savings accounts. If you deposit $4,750 today, how much will you have in the account in 5 years
Answer:
Future value = $5912.87
Explanation:
Below is the calculation:
Interest rate = 4.7%
Present value of deposit = $4750
Time period, n = 5 years
Future value = Present value ( 1 + interest rate)^n
Future value = 4750 ( 1 + (4.7%/365)^5*365
Future value = 4750 (1 + 0.00012)^1825
Future value = $5912.87
The market for the fast car with so much horsepower that handling becomes an issue is decreasing. People are more interested in buying SUVs and pickups. As a result, General Motors is stopping production of its Camaro, a car that has had limited sales recently. Since the Camaro can no longer generate enough cash to sustain its manufacture, the BCG portfolio would classify it as a:
Answer:
Dog.
Explanation:
In 1970, Bruce D. Henderson developed and created a growth-share matrix for the Boston Consulting Group (BCG). The Boston Consulting Group (BCG) growth-share matrix is a tool used for analyzing and planning product lines in a business unit. It makes use of a graphical representation of a company's product line and services to analyze and make long-term strategic plans on which to invest more on or sell off.
Generally, products are divided into four (4) main categories in the BCG growth-share matrix;
1. Dogs.
2. Stars.
3. Question marks.
4. Cash cows.
A dog refers to a product or business unit that has a very low growth rate or market share and as such generates insufficient amount of revenues.
In this scenario, Camaro isn't able to generate sufficient (enough) cash to sustain its manufacturing or production process, the Boston Consulting Group (BCG) portfolio would classify it as a dog.
Charleston Inc. acquired 75% of Savannah Manufacturing on January 4, 2020. During 2020, Charleston sold Savannah $460,000 of goods, which had cost $380,000. Savannah still owned 20% of the goods at the end of the year. In 2021, Charleston sold goods with a cost of $520,000 to Savannah for $700,000, and Savannah still owned 15% of the goods at year-end. What amount of intra-entity gross profit should be deferred in 2021
Answer:
Amount of profit to be deferred = $27,000Explanation:
The intra-entity gross profit that needs to be deferred can be calculated as follows:
In 2021:
The amount of price on goods sold = $700,000
The actual cost price = $520,000
Less: $180,000
Amount of profit to be deferred = Profit × percentage of goods at the year-end (2021)
Amount of profit to be deferred = $180,000 × 15%
Amount of profit to be deferred = $27,000The Robinson Company reported net income of $90,000 in 2010. Additional information follows:Depreciation expense$18,000Loss on sale of equipment 10,000 Gain on sale of land 17,000 Given just this information, what was the Robinson Company's net cash provided by operating activities in 2010
Answer:
$101,000
Explanation:
With regards to the above information , the net cash provided by operating activities is computed as;
Net income
$90,000
Add:
Depreciation expense
$18,000
Add:
Loss on sale of equipment
$10,000
Less:
Gain on sale of land
($17,000)
Net cash provided by operating activities
$101,000
Therefore, Robinson company's net cash provided by operating activities is 2010 is $101,000
A rectangle has length xcm and width (x-1)cm. If the perimeter is 14cm,
Find the value of x.
Answer:
x = 4 cm
Explanation:
Given that,
Length of a rectangle = x cm
Width = (x-1) cm
The perimeter of the rectangle = 14 cm
We need to find the value of x.
We know that,
Perimeter = sum of all sides
14 = 2(x+x-1)
7 = 2x-1
8 = 2x
x = 4
So, the value of x is equal to 4 cm.
a report must be sent promptly to FINRA if a registered employee of a member firm for all of the following EXCEPT: A has violated the Securities Acts B is the subject of a written customer complaint alleging theft C is suspended or expelled by another Self Regulatory Organization D is ticketed for careless driving
Answer:
D
is ticketed for careless driving
Explanation:
FINRA Rule 4530 says one can report
each member of the firm promptly to FINRA, within 30 calendar days,
Why might it be argued that corporations do not have a comparative advantage when investing in real estate as a means of diversification from the core business?
Solution :
Real estate is defined as something that is related to the buildings or lands. All the properties that are physically present forms real estate in terms of land and buildings. It includes, vacant land or buildings, commercial real estate, industrial as well as residential real estate.
The corporations does not have a comparative advantage when they invest in the real estate by a means of the diversification from its core business. This is because the organizations do not hold the real estate in the large number of the geographical area. They also do not hold a number of different types of the properties. Therefore, they do not tend to diversify from their real estate holdings as the large institutional investor who hold a more diversified and a larger portfolio.
Help please Briefly explain how technology affects promotional strategies.
Answer: Technology has transformed marketing by making campaigns more personalized and immersive for people and creating ecosystems that are more integrated and targeted for marketers. And it's not just the interface between brands and people that have been transformed. ... 30% will prioritise technology over creativity.
Holt Industries received a $2,000 prepayment from the Ramirez Company for the sale of new office furniture. Holt will bill Ramirez an additional $3,000 upon delivery of the furniture to Ramirez. Upon receipt of the $2,000 prepayment, how much should Holt recognize for a contract asset, a contract liability, and accounts receivable?
Answer and Explanation:
The computation of the contract asset, a contract liability, and accounts receivable is shown below:
The contract asset is zero as it is not satisfied with the performance obligation
The current liability is $2,000 as it denotes the deferred revenue of $2,000 so this represent the contract liability
And, the account receivable is zero as it does not have the account receivable till the delivery of the furniture
in this way it should be recorded
a. A new operating system for an existing machine is expected to cost $616,000 and have a useful life of six years. The system yields an incremental after-tax income of $180,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $40,000.
b. b. A machine costs $440,000, has a $32,000 salvage value, is expected to last eight years, and will generate an after-tax income of $90,000 per year after straight-line depreciation. Assume the company requires a 12% rate of return on its investments.
Required:
Compute the net present value of each potential investment.
Answer:
a. Net present value = $539,013.67
b. Net present value = $273,361.47
Explanation:
a. A new operating system for an existing machine is expected to cost $616,000 and have a useful life of six years. The system yields an incremental after-tax income of $180,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $40,000.
Annual depreciation = (Expected machine cost – Predicted salvage value) / Number of useful life = ($616,000 - $40,000) / 6 = $96,000
Annual cash inflows = Annual incremental after-tax income + annual depreciation = $180,000 + $96,000 = $276,000
Present value of the annual cash inflow = Annual cash inflows * ((1 - [1 / (1 + required rate of return)]^Number of years) / required rate of return) = $276,000 * ((1 - [1 / (1 + 0.12)]^6) / 0.12) = $276,000 * 4.11140732352233 = $1,134,748.42
Present value of predicted salvage value = Predicted salvage value / (1 + required rate of return)^Number of years = $40,000 / (1 + 0.12)^6 = $20,265.24
Net present value = Present value of the annual cash inflow + Present value of predicted salvage value - Expected machine cost) = $1,134,748.42 + $20,265.24 - $616,000 = $539,013.67
b. A machine costs $440,000, has a $32,000 salvage value, is expected to last eight years, and will generate an after-tax income of $90,000 per year after straight-line depreciation.
Annual depreciation = (Machine cost – Salvage value) / Number of useful life = ($440,000 - $32,000) / 8 = $51,000
Annual cash inflows = Annual incremental after-tax income + annual depreciation = $90,000 + $51,000 = $141,000
Present value of the annual cash inflow = Annual cash inflows * ((1 - [1 / (1 + required rate of return)]^Number of years) / required rate of return) = $141,000 * ((1 - [1 / (1 + 0.12)]^8) / 0.12) = $141,000 * 4.96763976683859 = $700,437.21
Present value of salvage value = Salvage value / (1 + required rate of return)^Number of years = $32,000 / (1 + 0.12)^8 = $12,924.26
Net present value = Present value of the annual cash inflow + Present value of salvage value - Machine cost) = $700,437.21 + $12,924.26 - $440,000 = $273,361.47
Hart Attorney at Law experienced the follwoing transactions in 2016, the first year of operations:
1. Accepted $36,000 on 4/1/16, as a retainer for services to be performed evenly over the next 12 months
(2) Performed legal services for cash of $54,000
(3) Purchased $2,800 of office suppies on account
(4) Paid $2,400 of the amount due on accounts payable
(5) Paid a cahs dividend to the stockholders of $5,000
(6) Paid cash for operationg expenses of $31,000
(7) Determined that at the end of the accounting period $200 of office supplies remained on hand
(8) On 12/31/16, recognized the revenue that had been earned for services performed in accordance with Transaction 1
Problem: Show the effects of the events on the fianncial statements using a horizontal statement model.
Answer:
The accounting equation therefore holds as follows:
Total assets = Total liabilities + Total Stockholders’ Equity = $51,800
Explanation:
Note: See the attached excel file for the horizontal statement model showing the effects of the events on the financial statements.
The following calculations are made in the attached excel:
For Event 7, we have:
Office supplies = Amount of office supplies purchased - Office supplies remained on hand = $2,800 - $200 = $2,600
For Event 8, we have:
Amount of revenue that is recognized = Number of months from April 1 to December 31 * (Amount accepted on April 1 / Number of months in year) = 9 * ($36,000 /12) = 9 * $3,000 = $27,000
Also, the following can be obtained from the attached excel file:
Total assets = $51,600 + $200 = $51,800
Total liabilities = $400 + $9,000 = $9,400
Total Stockholders’ Equity = $42,400
Total liabilities + Total Stockholders’ Equity = $9,400 + $42,400 = $51,800
The accounting equation therefore holds as follows:
Total assets = Total liabilities + Total Stockholders’ Equity = $51,800
Knowledge Check 01 Feline Watch Company makes wrist watches out of silver metal sheets. Feline sold 200 watches in the month of June. It projects July and August sales to be 400 and 600 respectively. The company`s policy is to have 50% of next month`s sales in inventory. If the June ending inventory of watches is 200, how many watches must be produced in July
Answer:
the number of watches to be produced in July is 500
Explanation:
The calculation of the number of watches to be produced in July is given below;
Units Expected to be sale 400
Add: Desired ending inventory 300 (50% of 600)
Total available 700
Less: Beginning Inventory -200
Units to be produced 500
Hence, the number of watches to be produced in July is 500
BE12-1 Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $15,000 cash, and Nichols contributes $10,000 cash and equipment having a book value of $3,500. Prepare the entry to record Nichols's investment in the partner- ship, assuming the equipment has a fair value of $4,000.
Answer:
Dr Cash $10,000
Dr Equipment (at FairValue) $4,000
Cr Nichols’s Capital Account $14,000
Explanation:
Preparation of the entry to record Nichols's investment in the partner- ship
Dr Cash $10,000
Dr Equipment (at FairValue) $4,000
Cr Nichols’s Capital Account $14,000
($10,000+$4,000)
(To record Nichols's investment in the partner- ship)
Flow Company has provided the following information for the year ended December 31, 2019: Cash paid for interest, $22,500 Cash paid for dividends, $6,500 Cash dividends received, $4,500 Cash proceeds from bank loan, $34,000 Cash purchase of treasury stock, $13,500 Cash paid for equipment purchase, $29,500 Cash received from issuance of common stock, $39,500 Cash received from sale of land with a $34,500 book value, $27,000 Acquisition of land costing $53,500 in exchange for preferred stock issuance. Payment of $125,000 note payable by exchanging used machinery with a $79,500 book value and $125,000 fair value How much was Flow's net cash flow from investing activities
Answer:
$2,500
Explanation:
Net Cash flow from investing activities
Particulars Amount
Cash proceeds from sale of Land $27,000
Cash Paid for Equipment Purchase -$29,500
Net Outflow from investing activities ($2,500)
g On January 1, 2019 FirstEnergy Corp issued 19,000 shares of $100 par, 8%, cumulative, preferred stock for $110 per share. No dividends have been paid to preferred or common shareholders. What amount of dividends will a preferred shareholder owning 100 shares receive in 2021 if FirstEnergy pays $1,000,000 in dividends
Answer: $2640
Explanation:
Based in the information given,
Par value of preferred stock = $110
Rate of dividend = 8%
Therefore, the preferred dividend per share will be:
= $110 × 8%
= $110 × 0.08
= $8.80
It should be noted that the cumulative dividend from 2019 to 2021 will be for 3 years. Therefore, the dividend to 100 preferred shareholder in 2021 will be:
= 100 × $8.80 × 3
= $2640
Assume that the reserve requirement is 5 percent. All other things being equal, will the money supply expand more if the Fed buys $2,000 worth of bonds or if someone deposits in a bank $2,000 that she had been hiding in her cookie jar? If one creates more, how much more does it create? Support your thinking.
Answer: See explanation
Explanation:
Based on the information given in the question, the reserve ratio is given as 5%, then the money multiplier will be:
= 1 / reserve requirement
= 1/5%
= 1 / 0.05
= 20.
Therefore, the money multiplier will increase by 20.
Then, the Money supply will be calculated as:
= amount x money multiplier
= 2000 x 20
= 40000
Therefore, the increase in the money supply will be $40000.
In this case, if the FED purchases $2000 worth of bonds, it'll expand the money supply more.
Crestfield leases office space. On January 3, the company incurs $12,000 to improve the leased office space. These improvements are expected to yield benefits for 10 years. Crestfield has 4 years remaining on its lease. What journal entry would be needed to record the expense for the first year related to the improvements
Answer:
Debit Amortization Expense $3,000; credit Accumulated Amortization $3,000.
Explanation:
Based on the information given the appropiate journal entry that would be needed to record the expense for the first year related to the improvements will be
Debit Amortization Expense $3000
Credit Accumulated Amortization-Leasehold Improvements $3000
(Amortization Expense = 12000/4 = $3000)
(To record the expense for the first year)
Analysts expect Placer Corp. to pay shareholders $2.25 per share annually for the next five years. After that, the dividend will be $3.50 annually forever. Given a discount rate of 12%, what is the value of the stock today
Answer:
$24.66
Explanation:
Calculation to determine the value of the stock today
First step is to calculate the PVP
PVP = $3.50 / .12
PVP= $29.17
Second step is to calculate the PV
PV = $29.17 / 1.125
PV= $16.55
Third step is to calculate the PVA
PVA = $2.25 {[1 - (1 / 1.125)] / .12}
PVA= $8.11
Now let calculate the value of the stock today
Using this formula
Price=PV+PVA
Let plug in the formula
Price = $16.55 + 8.11
Price= $24.66
Therefore the value of the stock today is $24.66
Sandhill Co. purchased machinery that cost $2800000 on January 4, 2019. The entire cost was recorded as an expense. The machinery has a 9-year life and a $180000 residual value. The error was discovered on December 20, 2021. Ignore income tax considerations.
Before the correction was made, and before the books were closed on December 31, 2013, retained earnings was understated by:____.
Answer:
$2,217,777.78
Explanation:
The computation is shown below:
The accumulated depreciation amount till 31 Dec 2013
= ($2,800,000 - $180,000) ÷ 9 × 2
= $582,222.22
Now the expenses recorded as the purchase is $2,800,000
so,
The Retained earnings understated by
= $2,800,000 - $582,222.22
= $2,217,777.78
The following is selected financial information for Osmond Dental Laboratories for 2021 and 2022: 2021 2022 Retained earnings, January 1 $ 53,000 ? Net income 40,000 45,000 Dividends 12,000 25,000 Common stock 78,000 ? Osmond issued 3,000 shares of additional common stock in 2022 for $22,000. There were no other stock transactions. Prepare a statement of stockholders' equity for the year ended December 31, 2022. (Amounts to be deducted should be indicated with minus sign.)
Answer:
Osmond Dental Laboratories
Statement of Stockholders' Equity:
2022
Common stock $90,000
Retained earnings, December 31 101,000
Stockholders' equity $191,000
Explanation:
a) Data and Calculations:
Osmond Dental Laboratories for 2021 and 2022:
2021 2022
Retained earnings, January 1 $ 53,000 ?
Net income 40,000 45,000
Dividends 12,000 25,000
Common stock 78,000 ?
Analysis:
Cash $22,000 Common stock $22,000
Retained earnings, January 1 $ 53,000 81,000
Net income 40,000 45,000
Dividends -12,000 -25,000
Retained earnings, December 31 $ 81,000 $101,000
Common stock on December 31 = $90,000 ($78,000 + $22,000)
Statement of Stockholders' Equity:
Osmond Dental Laboratories for 2021 and 2022:
2021 2022
Common stock $78,000 $90,000
Retained earnings, December 31 81,000 101,000
Stockholders' equity $159,000 $191,000
A man wants to help provide a college education for his young daughter. He can afford to invest $1500/yr for the next 5 years, beginning on the girl 's 5th birthday. He wishes to give his daughter $10,000 on her 18th, 19th , 20th, and 21 st birthdays, for a total of $40,000. Assuming 6% interest, what uniform annual investment will he have to make on the girl's 9th through 17th birthdays?
Answer:
$1,919.69
Explanation:
when the daughter is 9 years old, total savings = $1,500 x 5.6371 (FVIFA, 6%, 5 periods) = $8,455.65
first 5 payments:
birthdays = 5, 6, 7, 8, 9
the present value of the $40,000 that he needs for her daughter's college = $10,000 x 3.4651 (PVIFA, 6%, 4 periods) = $34,651
the FV until the 17th birthday = $8,455.65 x 1.06⁸ = $15,650.82
he needs to save = $34,651 - $15,650.82 = $19,000.18
value of annual deposits = $19,000.18 / 9.8975 (FVIFA, 6%, 8 peridos) = $1,919.69
Home Bepot Inc. has a cost of equity of 11.3 percent. The company has an aftertax cost of debt of 4.9 percent, and the tax rate is 40 percent. If the company's debt–equity ratio is .73, what is the weighted average cost of capital?
Answer: 8.60%
Explanation:
Weighted Average cost of capital = (Cost of equity * Weight of equity) + (After tax cost of debt * Weight of debt)
Weight of debt = Debt-equity ratio / (1 + Debt-equity ratio)
= 73% / (1 + 73%)
= 42.1965%
Weight of Equity = 1 / (1 + Debt - equity ratio)
= 1 / 1.73
= 57.8035%
WACC = (11.3% * 57.8035%) + (4.9% * 42.1965%)
= 8.60%
Crane Company has 900 shares of 4%, $100 par cumulative preferred stock outstanding at December 31, 2018. No dividends have been paid on this stock for 2017 or 2018. Dividends in arrears at December 31, 2018 totala) $400.b) $3600.c) $7200.d) $0.
Answer:
c) $7200
Explanation:
Preference dividends have preference when it comes to payment of dividends.
This means that we pay the Preference Stock holders their dividend (which is fixed) and there after the remainder is paid up to the Common Stockholders
Preference dividend = 900 shares x $100 x 4 % = $3600
When Preference Stock is Cumulative, it means that all previous dividends in arrears have to be paid up before any current year distributions are made.
2018
Cumulative Preference dividend = $3600 (2017) + $3600 (2018) = $7200
therefore,
Dividends in arrears at December 31, 2018 total $7200
If an American firm opens a production facility in India, the total value of the production will be included in the national income of the United States. consumption of fixed capital for India. gross domestic product of India. gross domestic product of the United States.
Answer:
gross domestic product of India
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP records the final good and services produced within a country's borders
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
In the fall of 2008, AIG, the largest insurance company in the world at the time, was at risk of defaulting due to the severity of the global financial crisis. As a result, the U.S. government stepped in to support AIG with large capital injections and an ownership stake. How would this affect, if at all, the yield and risk premium on AIG corporate debt before and after U.S. Government support
• Initially default risk increases, yield increases, price of AIG decreases
• After government intervention, default decreases, yield decreases, price of AIG increases
As of Dec. 31, 2013, a company had current assets of $600,000 and current liabilities of $300,000. Sales of the company are expected to increase by 10 percent for each of the next two years. If all current assets and current liability accounts increase proportionately with sales, what would be the projected current ratio of the company on Dec. 31, 2015
Answer:
2.00
Explanation:
Calculation to determine what would be the projected current ratio of the company on Dec. 31, 2015
Using this formula
Current ratio =Current assets/ Current liabilities
Let plug in the formula
Current ratio =$600,000 /$300,000
Current ratio =2.00
Therefore the projected current ratio of the company on Dec. 31, 2015 is 2.00
Bank charged interest on overdraft Rs. 500 journal entry
Answer:
interest is overdraft a/c.
Explanation:
In the cash book the above entry would be recorded on the credit side and as we know that pass book is an exact opposite record of the cash book so, interest on bank overdraft would be recorded on the debit side of the pass book