Answer: $990
Explanation:
Based on the information that we are given in the question, the net income will be calculated as:
= Dividends + Retained earnings
= $1300 + (-$310)
= $1300 - $310
= $990
Therefore, the net income is $990.
The impact of taxes on different groups in society varies. Some taxes create a larger burden for poorer people while others create a larger burden for wealthier people. Arrange the tax classifications according to the level of burden placed on poorer people.
Answer:
Progressive places the least burden on poor people
Proportional places the second highest burden
regressive places the most burden
Explanation:
Regressive tax system is a tax system where those that earn lower income pay more tax and those that earn higher income pay less tax.
A proportionate tax taxes everyone the same regardless of the amount earned.
A progressive tax is a tax structure where those who earn higher income are taxed more and those that earn less pay less amount of tax. A progressive tax ensures vertical equity.
DW has an ending Retained Earnings balance of $51,600. If during the year DW paid dividends of $4,100 and had net income of $21,100, then what was the beginning Retained Earnings balance
Answer:
$34,600
Explanation:
The computation of beginning retained earnings balance is seen below:
But we know that;
Ending balance of retained earnings = Beginning balance of retained earnings + Net income - Dividend paid
$51,600 = Beginning retained earnings + $21,100 - $4,100
Beginning retained earnings = $51,600 - $21,100 + $4,100
Beginning retained earnings = $34,600
You are to make monthly deposits of $1,721 into a retirement account that pays 8 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 5 years?
Answer:
FV= $126,585.60
Explanation:
Giving the following information:
Monthly deposit (A)= $1,721
Interest rate (i)= 0.08/12= 0.0067
Number of periods (n)= 12*5= 60 months
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {1,721*[(1.0067^60) - 1]} / 0.0067
FV= $126,585.60
An investment project has annual cash inflows of $4,200, $5,100, $6,300, and $5,500, and a discount rate of 15 percent. a. What is the discounted payback period for these cash flows if the initial cost is $6,900
Answer:
It will take 1 year and 307 days to cover the initial investment.
Explanation:
Giving the following information:
Initial investment= $6,900
Cash flows:
Cf1= $4,200
Cf2= $5,100
Cf3= $6,300
Cf4= $5,500
Discount rate= 15%
The payback period is the time required to cover the initial investment. We need to discount each cash flow.
Year 1= 4,200/1.15 - 6,900= -3,247.83
Year 2= 5,100/1.15^2 - 3,247.83= 608.50
To be more accurate:
(3,247.83 / 3,856.33)*365= 307 days
It will take 1 year and 307 days to cover the initial investment.
The major advantage of a regular partnership or a corporation as a form of business organization is the fact that both offer their owners limited liability, whereas proprietorships do not. True False
Answer:
True
Explanation:
Some owners of a regular partnership (limited liability partnership) or a corporation (S-corporation) enjoy limited liability, unlike the owners of proprietorships, whose business liabilities and solvency are backed with the personal assets of the owners. The owners of a C-corporation enjoy full limited liability unless the corporate veil is lifted by the court, depending on prevailing circumstances. With limited liability also comes limited participation in the management of the entity.
The initial value of your 401k savings plan is $35,000. The value your 401k savings plan at a later point in time is $44,500. The percent change in the value of your 401k plan over the period is
Answer: 27.14%
Explanation:
Percent change in value of 401k = (Ending value - Initial value) / Initial value * 100%
= (44,500 - 35,000) / 35,000 * 100%
= 9,500 / 35,000 * 100%
= 27.14%
Solutions to the moral hazard problem include Select one: a. low net worth b. greater reliance on equity contracts and less on debt contracts c. monitoring and enforcement of restrictive covenants. d. greater reliance on debt contracts than financial intermediaries
Answer:
C) monitoring and enforcement of restrictive covenants.
Explanation:
Moral hazard can be regarded as the situation which take place when an individual get some chances whereby he/she can take advantage of a financial deal or financial situation, when he/she knows that all the risks as well as fallout will be accounted to another party. moral hazard can be reduced by strong up policies which will prevent immoral behavior as well as regular monitoring. One of the Solutions to the moral hazard problem is monitoring and enforcement of restrictive covenants.
Inez is compensated based on a plan that pays a base salary, with commission in addition. Inez receives $40,000/year salary (and is paid monthly); additionally, she receives 8% on all sales in excess of $50,000 in sales/month. In April, Inez sold $69,500 of product. Calculate her monthly earnings.
Answer:
$4,893.33
Explanation:
Inez's monthly earnings in April comprises of her monthly salary and the performance bonus which are both computed as shown below:
monthly salary=annual salary/12 months
annual salary
monthly salary=$40,000/12
monthly salary=$3,333.33
Note that the performance bonus is not based on the entire sales revenue generated by her but on the sales revenue above the threshold of $50,000
sales performance bonus=($69,500-$50,000)*8%
sales performance bonus=$1,560
monthly earnings=$3,333.33+$1,560
monthly earnings=$4,893.33
Durable goods are: a. consumers' goods b. raw materials combined to produce consumer goods c. those that must be replaced after each use d. those that may be stored and repaired e. none of the above
Answer:
d. those that may be stored and repaired
Explanation:
Durable goods are those goods that are stored and repaired. It is to be considered for the long-lasting so it can be stored. Also it can be repaired when they wear out
For example: mobile phone, table, chair, toys, etc
Therefore as per the given situation, the option d is correct
And, the remaining options are to be considered
Operations Management:is a network of manufacturing and service options.is an essential function for primarily for-profit organizations.is narrowly dedicated to a single corporate function.focuses on decisions about the production and delivery of a firm s products and services.prioritizes sustainability over profits.
Answer:
focuses on decisions about the production and delivery of a firm's products and services.
Explanation:
Operations management can be regarded as a field of business which involves administration of business practices that carried out maximization of efficiency in a firm or an organization. It entails process such as planning, organizing, as well as taking responsibility for processes in organization in order to balance revenues as well as costs. It should be noted that Operations Management focuses on decisions about the production and delivery of a firm's products and services.
If fixed costs are $200,000 and the unit contribution margin is $20, what amount of units must be sold in order to have a zero profit
Answer:
the amount of units that should be sold in the case when there is a zero profit is 10,000 units
Explanation:
The computation of the amount of units that should be sold in the case when there is a zero profit is given below:
No. of units to be sold is
= Fixed Cost ÷ Contribution per unit
= $200,000 ÷ $20
= 10,000 units.
hence, the amount of units that should be sold in the case when there is a zero profit is 10,000 units
Consider the following game. Harry has four quarters. He can offer Sally from one to four of them. I
Answer:
i think Harry should be nice a gave Sally 2 of them.Then, they well have the same amount
Explanation:
Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. Her total revenue for the year was $100,000. If Christine hadn't worked as a consultant, she would have worked at a real estate firm earning $40,000 a year. Last year, Christine's explicit costs were ______, and her implicit costs were ______.
Answer:
Explicit costs - $51,000
Explicit costs are those for which a person incurs in actual spending of money. In this case, Christine had to pay $15,000 in wages, and $36,000 in rent ($3,000 x 12). These are expenses that she had to pay money for, and that had to be accounted for in the accounting books, and in the financial statements. These are in other words, explicit costs.
Implicit costs - $40,000
Implicit costs are simply the opportunity costs. An opportunity cost is the cost of the next more valuable alternative when faced with two or more options. No money is paid for this costs. The implicit costs for Christine were the $40,000 that she not receive as wages if she had continued working at a real state firm.
In the space provided, using the letters (a-e), indicate in which category of the statement of cash flows the preceding items would. After each item, indicate with a plus sign ( ) or a minus sign (-) whether the item would be reported as an increase / inflow or a decrease/ outflow.
The following information relates to the Marshall Company for 2010:
Gain on sale of land $ 800
Bond premium amortization (by the issuer) 300
Decrease in accounts payable 700
Increase in prepaid expenses 100
Net income 9,000
Purchased equipment 10,000
Increase in salaries payable 400
Proceeds from sale of land 5,000
Decrease in inventories 1,100
Payment of dividends 600
Depreciation expense 1,000
Required:Compute net cash provided by operating activities for the Marshall Company for 2010.
Answer:
Particulars Amount
Cash Flows from Operating Activities
Net Income $9,000
Adjustments to reconcile net income to
Net Cash flows from Operating Activities
Depreciation Expense $1000
Gain On Sale of land ($800)
Decrease in accounts payable ($700)
Increase in prepaid expenses ($100)
Increase in salaries payable $400
Decrease in Inventories $1100
Amortization of bond premium ($300) $600
Net Cash flows from operating activities $9,600
Which firm is the oligopolist? Choose one: Firm A is in retail. It is one of the largest and most popular clothing stores in the country. It also competes with many rivals and faces intense price competition. Firm B is in the auto rental business. It is not the nation’s largest rental company, but significant barriers to entry enable it to serve customers across the United States more conveniently and at a lower price than local rivals. Firm C is a restaurant in a small, isolated community. It is the only local eatery. People drive from miles away to eat there.
Answer:
Firm B is in the auto rental business. It is not the nation’s largest rental company, but significant barriers to entry enable it to serve customers across the United States more conveniently and at a lower price than local rivals.
Explanation:
For the given options we considered Firm B to be treated as the oligopolist as the firm nor its competitors would have the major impact over the market also there are entry & exit barriers from the market
So the firm B should be chosen as the oligopolist
Therefore the same should be considered and relevant
On January 1, 2024, an investor paid $261,000 for bonds with a face amount of $315,000. The contract rate of interest is 8% while the current market rate of interest is 10%. Using the effective interest method, how much interest income is recognized by the investor in 2025 (assume annual interest payments and amortization)
Answer:
$26,100
Explanation:
Calculation to determine how much interest income is recognized by the investor in 2025
Using this formula
Interest income = Amount paid* market rate of interest
Let plug in the formula
Interest income= $261,000*10%
Interest income= $26,100
Therefore the interest income that is recognized by the investor in 2025 will be $26,100
Cash $13,000; Short-term Debt $21,000; Buildings and Equipment $420,000; Inventory, $44,000; Notes Payable $60,000; Accumulated Depreciation $110,000; Common Stock $80,000; Accounts Receivable $38,000; Retained Earnings $237,000; Accounts Payable $17,000.
Total assets on the balance sheet are: _________
Answer:
$405,000
Explanation:
Computation of total assets on balance sheet.
Fixed assets:
Building and equipment
$420,000
Less:
Accumulated depreciation
($110,000)
Net book value
$310,000
Total fixed assets $310,000
Current assets:
Cash
$13,000
Inventory
$44,000
Accounts receivable
$38,000
Total current assets $95,000
Therefore,
Total assets
= Total fixed assets + Total current assets
= $310,000 + $95,000
= $405,000
In 1 to 2 paragraphs, analyze how a person's ethics or values might affect his performance on the job
Answer:
In simple words, Individual workers' ethical convictions have an impact on team and department productivity as well as individual achievement. Being an ethical worker allows you to be a stronger team participant constantly contributing positively in group situations and just never impeding collective success.
Even though all individuals are important in and of themselves, ethical individuals can be more monetarily useful to their companies as well as more respected by their colleagues and competitors. Reflecting on workplace ethics may help you become a better employee, and it's a good thing to begin if you want to do the right thing all of the time.
Answer:
How can poor ethics devalue you as an asset on the team? Well, if you have poor moral standards and beliefs and what not, people can somewhat easily identify your personality as a negative trait. However if you're a good person with good values and spot on ethics, people will quickly realize that you're a good asset to have on the team.
Your energy, work ethic, and values also determine how good or bad your work ethic is.
Explanation:
For Connections Academy Career Development Unit Test
On February 3, Smart Company sold merchandise in the amount of $2,700 to Truman Company, with credit terms of 1/10, n/30. The cost of the items sold is $1,865. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:
Answer:
Journal entry on February 8 :
Debit : Cash $2,673
Debit : Discount received $27
Credit : Account Receivable $2,700
Explanation:
The journal entry that Smart makes on February should show the Cash payment net of cash discount, a decrease in Total Account Receivable balance and recognition of an expense discount allowed up to 1 %.
A perfectly elastic supply curve is: Group of answer choices upward sloping to the right. vertical. horizontal. downward sloping to the left.
Answer:
vertical
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
In fiscal year 2008, the U.S. government ran a deficit of about $459 billion. In fiscal year 2009, the government ran a deficit of about $1,413 billion. If there is crowding out, this change would be expected to have
Answer:
increased interest rates and decreased private investment.
Explanation:
decreased interest rates and private investment.
decreased interest rates and increased private investment.
increased interest rates and private investment.
Crowding out is when increased government borrowing leads to an increase in interest rate and this discourages private spending
governemnt borrowing occurs as a result of the government running a deficit
You are holding a stock that has a beta of 1.39 and is currently in equilibrium. The required return on the stock is 20.47%, and the expected return on the market portfolio is 16.50%. What would be the expected return on the stock if the expected market return increased to 21.00% while the risk-free rate and beta remained unchanged
Answer: 26.73%
Explanation:
You can calculate the expected return using the Capital Asset Pricing Model (CAPM).
Formula is:
Expected return = Risk free rate + beta * (Market return - risk free rate)
Use the previous figures to solve for the risk free rate:
20.47% = Rf + 1.39 * (16.50% - Rf)
20.47% = Rf + 22.935% - 1.39R
20.47% - 22.935% = Rf - 1.39Rf
-2.465% = -0.39Rf
Rf = -2.465% / -0.39
= 6.32%
New expected return is:
= 6.32% + 1.39 * (21% - 6.32%)
= 26.73%
You are an adviser to the Indian government. Until now, government policy in India has been to severely limit imports into India, resulting also in a low level of Indian exports. The government is considering a policy shift toward much freer trade. What are the three strongest arguments that you can offer to the Indian government about why the policy shift to freer trade is desirable for India
Answer:
1. The size of the economy as a whole grows as a result of free trade.
2. Consumers benefit from free trade.
3. Free trade can reduce cost of trading:
Explanation:
The three strongest arguments that you can offer to the Indian government about why the policy shift to freer trade is desirable for India are as follows:
1. The size of the economy as a whole grows as a result of free trade: It provides for more efficient production of goods and services. This is because it encourages goods and services to be created in areas with the finest natural resources, infrastructure, or skills and experience. It boosts productivity, which can lead to greater long-term wages. There is universal consensus that growing global trade has boosted economic growth in recent decades.
2. Consumers benefit from free trade: By removing barriers and promoting competition, it lowers prices. Quality and choice are likely to improve as a result of increased competition.
3. Free trade can reduce cost of trading: Non-tariff barriers can be reduced, resulting in less red tape and lower trading costs. Companies that deal in multiple nations might reduce their compliance expenses by working with a single set of laws. In principle, this will lower the cost of goods and services.
Carr Inc. purchased equipment for $100,000 on January 1, Year 1. The equipment had an estimated 10-year useful life and a $15,000 salvage value. Carr uses the 200 percent declining balance depreciation method. In its Year 2 income statement, what amount should Carr report as depreciation expense for the equipment
Answer:
$16,000
Explanation:
Calculation to determine what amount should Carr report as depreciation expense for the equipment
First step is to calculate Depreciation under Double declining Balance method
Depreciation under DDB = 2/10 x $100,000
Depreciation under DDB =$ 20,000
Now let calculate what amount should Carr report as depreciation expense for the equipment
Depreciation expense=2/10 *($100,000-$20,000)
Depreciation expense=2/10*$80,000
Depreciation expense= $16,000
Therefore what amount should Carr report as depreciation expense for the equipment is $16,000
A developer of a new townhome community estimates that there will be 1,200 home (all types) sales in University City over the next year. An analysis of demographic information has revealed that the core market share for the townhome project within the community is 10%. Assuming a capture rate of 20%, what is the developer's first-year projection of townhome sales in the new community
PAnswer:
24 units
Explanation:
Calculation to determine what is the developer's first-year projection of townhome sales in the new community
First-year projection=10%*1200*20%
First-year projection=24 units
Therefore the developer's first-year projection of townhome sales in the new community is 24 units
Describe the organizational structure of your school or company. What difficulties have you encountered working within this structure
Answer:
My company have a centralized structure of management framework. Under this structure all the decisions are made by the executive level managers of the company.
The main problem that me and my fellow workers face under this structure is that we do not get any space for creativity and judgement of our own. Also the organisation, do not emphasize on our suggestions that we believe can actually make us more efficient.
Eric and Ginny Gaffney live in Swarthmore, PA. Ginny's father, Kenji, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M).
a. Ginny's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
b. Ginny gets a new video camera made in the United States.
c. Eric buys a bottle of Italian wine.
d. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
e. Eric's employer upgrades all of its computer systems using U.S.-made parts.
Why are multinational corporations (MNCs) getting involved in corporate social responsibility and sustainable business practice
Answer:
Some are genuinely giving back to the community:
Some MNCs are engaged in Corporate Social Responsibility (CSR) and Sustainable business practices because they genuinely care about the communities they have a presence in and the earth as well. With this is mind, they find out ways to give back to the community to ensure that people's lives are touched and improved so that the wider community benefits from the success of the MNC.
Brand Strengthening and Recognition.
Sometimes MNCs get involved in CSR to build their brand because people would associate their brand with the good works they do. This would go a long way in improving their sales figures as well because people want to support a company that supports its communities.
Tax Considerations.
Various tax credits exist for MNCs across many countries and tax regimes to reward them for their CSR activities. MNCs therefore see this as a chance to kill two birds with one stone as they get to use money that would have gone to taxes to improve their PR standing.
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $12,750 cash and $54,825 of photography equipment in the company in exchange for common stock. 2 The company paid $3,500 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,423 cash. 20 The company received $2,050 cash in photography fees earned. 31 The company paid $868 cash for August utilities. Prepare general journal entries for the above transactions.
Answer:
Aug 1
Dr Cash $12,750
Dr Photography equipment $54,825
Cr Common stock $67,575
Aug 2
Dr Prepaid insurance $3,500
Cr Cash $3,500
Aug 5
Dr Office supplies $2,423
Cr Cash $2,423
Aug 20
Dr Cash $2,050
Cr Photography fees earned $2,050
Aug 31
Dr Utilities Expense $868
Cr Cash $868
Explanation:
Preparation of general journal entries for the above transactions
Aug 1
Dr Cash $12,750
Dr Photography equipment $54,825
Cr Common stock $67,575
($12,750+$54,825)
Aug 2
Dr Prepaid insurance $3,500
Cr Cash $3,500
Aug 5
Dr Office supplies $2,423
Cr Cash $2,423
Aug 20
Dr Cash $2,050
Cr Photography fees earned $2,050
Aug 31
Dr Utilities Expense $868
Cr Cash $868
Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assume that Yankee has 220,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $440,000 at January 1, 2021. The following information pertains to Yankee during 2021:
Net income $240,000
Dividends declared and paid $72,000
Market price of common stock on 12/31/2016 $29/share
What amount would Matsui report in its year-end 2016 balance sheet for its investment in Yankee?
a. $1,608,000.
b. $1,368,000.
c. $1,329,600.
d. None of these answer choices is correct.
Answer: $1,852,320
Explanation:
First find out the proportion owned by Matsui.
= 74,800 shares / 220,000
= 34%
The investment at the end of the year is:
= Cost of investment + Shares of net income - Share of dividend
Share of income:
= Percentage ownership * Net income
= 34% * 240,000
= $81,600
Share of dividend:
= 34% * 72,000
= $24,480
Investment at end of year:
= 1,795,200 + 81,600 - 24,480
= $1,852,320