Answer:
$250,000
Explanation:
Calculation to determine At what sales volume would the two stores have equal profits or losses
First step is to determine the Difference in Fixed Cost
Fixed Cost - Store B $200,000
Fixed Cost - Store A $125,000
Different in Fixed Cost $75,000
($200,000-$125,000)
Second step is to determine the Change in Variable Cost Ratio
Variable Cost Ratio - Store A 60%
Variable Cost Ratio - Store B 30%
Change in Variable Cost Ratio 30%
(60%-30%)
Now let determine what the sales volume would the two stores have equal profits or losses
Using this formula
Sales volume = Fixed Cost/Change in Variable Cost Ratio
Let plug in the formula
Sales volume=$75,000/30%
Sales volume=$250,000
Therefore the sales volume in which the two stores would have equal profits or losses is $250,000
Demand increases in an increasing-cost industry that is initially in long-run competitive equilibrium. After full adjustment, price will be
Answer: above its original value
Explanation:
An increasing-cost industry simply means the industries whereby there's a rise in the average costs when the output increases.
Demand increases in an increasing-cost industry which is in long-run competitive equilibrium. After full adjustment, price will be above its original value.
During the current year, Penman Inc. issued three short-term notes payable with principal and interest due at the end of the term of the note. Compute interest accrued for each of the notes payable as of December 31 of the current year (assume a 365-day year). Round answers to two decimal places. Lender Issuance Date Principal Coupon Rate (%) Term Accrued Interest Nissim 11/21 $30,000 10% 120 days Answer Klein 12/13 22,000 8 90 days Answer
Answer and Explanation:
The computation of the interest accrued for each of the notes payable is given below:
Nissim $328.77 ($30,000 × 10% × 40 ÷ 365)
Klein $86.79 ($22,000 × 8% × 18 ÷ 365)
In this way it should be calculated and determined
The same should be considered and relevant
Companies HD and LD have identical tax rates, total assets, and return on invested capital (ROIC), and their ROIC exceeds their after-tax cost of debt, (1-T) r d. However, Company HD has a higher debt ratio and thus more interest expense than Company LD. Which of the following statements is correct?
A) company hd has a lower roa than company ld.
B) company hd has a lower roe than company ld.
C) the two companies have the same roa.
D) the two companies have the same roe.
E) company hd has a higher net income than company ld.
Answer: A) company hd has a lower ROA than company ld.
Explanation:
Company HD has more debt than Company LD which is why they have a higher interest expense. Interest expense is deducted from revenue to reach net profit so Company HD will have a lower profit than Company LD.
Return on Assets is calculated by dividing Net Income by Total assets. With Company HD having a lower net income, it will also have a lower ROA as a result seeing as the numerator will be lower than that of company LD.
disadvantages of unit trust investment
Assume the two countries specialize based on their comparative advantage. If the two countries engage in trade and one unit of food is exchanged for 5 units of clothing, will these terms of trade be mutually beneficial?
Answer:
None of the country have comparative advantage in producing food.
Explanation:
Marland and Teckana are the two countries who produces food and clothing. Marland can produce 20 units of food or 120 units of clothing while Teckana can produce 20 units of food or 80 units of clothing. Since both countries can produce same units of food neither country has comparative advantage in producing food. If the countries engage in exchange for 1 unit of food for 5 units of clothing Teckana country can benefit from the trade because it will get 100 units of clothing for 20 units of food.
For product costs associated with a particular product to be reported on the income statement: Group of answer choices The product must be sold. The product must be transferred to Finished Goods Inventory. The company must expect to sell the product during the next twelve months. The product must still be in Work in Process Inventory. The product may be in any of the manufacturer's inventory accounts.
American Inc. had gross sales of $925,000. Cost of goods sold and selling expenses were $490,00 and $220, 000 respectively American also had notes payable with an interest of 4%. Depreciation was $120,000. The tax rate at the time was 35%.
Required:
a. What is the company’s net income? Show work.
b. What is the companies operating cash flow? Show work
Answer:
a. Particulars Amount
Gross sales $925,000
Less: COGS $490,000
EBITDA $435,000
Less: Depreciation $120,000
EBIT $315,000
Less: Interest on notes payable $8,800 (220000*4%)
EBT $306,200
Less: Tax (35%*306200) $107,170
Net Income $199,030
b. Operating cash flow = Net income + Depreciation
Operating cash flow = $199,030 + $120,000
Operating cash flow = $319,030
You inherit $10,000 with the stipulation that for the first year the money must be invested in two stocks paying 6% and 11% annual interest, respectively. How much should be invested at each rate if the total interest earned for the year is to be $900
Answer:
5000 at 6%
6000 at 11%
Explanation:
Given that :
Total principal = 10000
Let :
Principal invested in business A = x
Principal invested in business B = y
Interest = Principal * rate * time
(x * 6% * 1) + (y * 11% * 1) = 900
0.06x + 0.11y = 900 - - - - (1)
x + y = 10000 - - - (2)
From (2)
x = 10000 - y
Put x = 10000 - y in (1)
0.06(10000 - y) + 0.11y = 900
600 - 0.06y + 0.11y = 900
600 + 0.05y = 900
0.05y = 900 - 600
0.05y = 300
y = 300 / 0.05
y = 6000
x = 10000 - y
x = 10000 - 6000
x = 5000
If something happens to alter the quantity supplied at any given price, then a. the supply curve shifts. b. we move along the supply curve. c. the supply curve becomes flatter. d. the supply curve becomes steeper.
Answer:
B
Explanation:
Zoey Bella Corp. has a payroll of $7,960 for a five-day workweek. Its employees are paid each Friday for the five-day workweek. Required: Prepare the adjusting entry on December 31 assuming the year ends on Thursday. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Dr Wages expense $6,368
Cr Wages payable $6,368
Explanation:
Preparation ofn the adjusting entry on December 31 assuming the year ends on Thursday
Based on the information adjusting entry on December 31 assuming the year ends on Thursday will be :
Dr Wages expense $6,368
Cr Wages payable $6,368
[($7,960/5 days)*4]
Drag the tiles to the correct boxes to complete the pairs.
Match the four types of tasks in a priority matrix with their associated order of priority.
Answer:
1st → important and urgent
2nd → urgent, but not important
3rd → important but not urgent
4th → neither important nor urgent
Edit: I'm pretty sure this is it, but not entirely
Answer:
See below
Explanation:
1 important and urgent
2 urgent bit not important
3 important but not urgent
4 not important or urgent
A study is designed to evaluate how an employee reacts to interruptions when attempting to answer his/her email. After several interrupts, the employee comments to his coworkers, "What’s with all the interruptions?" In terms of the participant’s research awareness, your design revealed ______.
Answer:
participant perceives deviations but unrelated to researcher
Explanation:
In the case when the study is designed in order to evaluate how an employee reaction for interrupt at the time when an employee attempt to answer his or her email. After various interruption, the design should represent that there is a the participant that perceives the deviation but it is not related to the researcher as the changes responses via participants attach with the deviations
Therefore as per the given situation, the above represent the answer
Computing and Assessing Plant Asset Impairment
On January 1, Zeibart Company purchases equipment for $225,000. The equipment has an estimated useful life of 10 years and expected salvage value of $25,000. The company uses straight-line depreciation. Four years later, economic factors cause the fair value of the equipment to decline to $90,000. On this date, Zeibart examines the equipment for impairment and estimates undiscounted expected cash inflows from this equipment of $125,000
(a) Compute the annual depreciation expense relating to this equipment.
(b) Compute the equipment's net book value at the end of the fourth year.
(c) Apply the test of impairment to this equipment as of the end of the fourth year. Is the equipment impaired?
Answer:
a. Depreciation expense = (Cost - Salvage value / Useful life
Depreciation expense = ($225,000 - $25,000) / 10 years
Depreciation expense = $20,000
b. Equipment's net book value = Cost of equipment - Depreciation for 4 years
Equipment's net book value = $225,000 - ($20,000 * 4)
Equipment's net book value = $225,000 - $80,000
Equipment's net book value = $145,000
c. When the sum of undiscounted expected cash flows < Net book value of asset, then the asset is impaired
Here, $125,000 < $145,000. So, the equipment is impaired.
Impairment loss = Net book value of asset - Fair value of asset
Impairment loss = $145,000 - $90,000
Impairment loss = $55,000
If the price of Good X rises from $4 to $5, and the quantity demanded of it falls from 200 units to 180 units, the absolute value of the price elasticity of demand, using the midpoint as the base, is:
Answer:
-0.4725
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
Midpoint change in quantity demanded = change in quantity demanded / average of both demands
change in quantity demanded = 180 - 200 = -20
average of both demands = (200 + 180 ) / 2 = 190
-20/190 = -0.105
midpoint change in price = change in price / average of both price
change in price = $5 - $4 = 1
Average of both price ($5 + $4) / 2 = $4.5
$1 / $4.5 = 0.222
-0.105 / 0.222 = -0.4725
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.
0.1
List six identifiable periods after World War II that are labor productivity grew
Answer: The major causes of World War II were numerous. They include the impact of the Treaty of Versailles following WWI, the worldwide economic depression, failure of appeasement, the rise of militarism in Germany and Japan, and the failure of the League of Nations.
Explanation:
On June 25, Ritts Roofing extended an offer of $250,000 for land that had been priced for sale at $300,000. On July 9, Ritts accepted the seller’s counteroffer of $275,000. On October 1, the land was assessed at a value of $280,000 for property tax purposes. On December 22, Ritts was offered $305,000 for the land by a national retail chain. At what value should the land be recorded in Ritts Roofing's records? $ fill in the blank 1
Answer:
$275,000
Explanation:
The computation of the value that should the land be recorded is shown below:
= Value at which rits accepted the counteroffer of the seller
= $275,000
Hence, the alue that should the land be recorded is $275,000
Basically it records the cost value as per the cost concept
The same should be considered
Which of the following statements is false?
A) Keynesians would not advocate an expansionary monetary policy to eliminate a recessionary gap if they believed that investment demand was interest-insensitive.
B) Keynesians would not advocate an expansionary monetary policy to eliminate a recessionary gap if they believed the money market was in the liquidity trap.
C) Keynesians would advocate an expansionary monetary policy to eliminate a recessionary gap if they believed investment spending was insensitive to changes in the interest rate.
D) Keynesians believe that money wages are inflexible in the downward direction.
Answer:
C) Keynesians would advocate an expansionary monetary policy to eliminate a recessionary gap if they believed investment spending was insensitive to changes in the interest rate.
Explanation:
Keynesians advocated for an expansionary monetary policy in order to remove the recession gap in the case when the trust that the investment spending should not be sensitive at the time when the interest rate varies
but this should be totally wrong as first fall it should not be advocated and also the wages should not be flexible
Therefore the option c is to be considered
describe the importance of administrative office management
Answer:
Office management helps to maintain a close relationship between different department of people. It regularly supplies order,command and instruction to different people.It oerformsvarious function like planning , organising,controling, staffing,supervising, motivating,and effective leadership.
Explanation:
i hope this will help you
A put option that expires in six months with an exercise price of $45 sells for $2.34. The stock is currently priced at $48, and the risk-free rate is 3.5 percent per year, compounded continuously. What is the price of a call option with the same exercise price
Answer: $6.12
Explanation:
The price of a call option with the same exercise price will be calculated thus:
According to Put-Call Parity, it should be noted that the Call Price will be:
= Put Price + Stock Price - [Exercise Price × e ^-(r × t)]
= $2.34 + $48 - [$45 × e ^ -[0.035 * (6/12)]]
= $50.34 - [$45 × 0.9827]
= $50.34 - $44.22
= $6.12
Therefore, the price is $6.12
Your first job is in hotel management and recently you were promoted to Hotel Manager for a large convention hotel in downtown New Orleans. Answer the following questions given the information below for one day. What is the total contribution to profit and overhead?
Characteristic/Variable Business Hotel Customers (B) Convention Association Hotel Customers (C)
Customers for this day (D) 280 room nights rented (DB) 400 room nights rented (DC)
Average price/room night (VC) $100 (PB) $75 (PC)
Variable cost/room night (VC) $25 $25
Maximum price/room night (called the rack rate) $150 $110
Maximum number rooms available for sale this day 300 room nights available 700 room nights available
a. $39,500
b. $44,170
c. $38,750
d. $41,000
e. $34,567
Answer:
d. $41,000
Explanation:
The computation of the total contribution to profit and overhead is shown below:
Contribution by Business Hotel Customers is
= Sales - variable cost
= (100-25) ×280
= $21,000
Now
Contribution by Convention Association Hotel Customers = Sales - variable cost
= (75 - 25)× 400
= $20,000
And, finally
Total contribution to profit and overhead is
= $21,000 + $20,000
= $41,000
Use this information for Train Corporation to answer the question that follow. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Division Locomotive Division Corporate Total Cost of goods sold $46,100 $29,000 Direct operating expenses 27,200 20,600 Sales 94,500 67,500 Interest expense $2,200 General overhead 19,400 Income tax 4,200 The net income for Train Corporation is:__________.
a. $13,300
b. $86,900
c. $70,900
d. $39,100
Answer:
a. $13,300
Explanation:
The computation of the net income for train corporation is given below:
= Sales - cost of goods sold - direct operating expense - interest expense - general overhead - income tax
= $94,500 + $67,500 - $46,100 - $29,000 - $27,200 - $20,600 - $2,200 - $19,400 - $4,200
= $13,300
Hence, the correct option is a.
Thrift institutions include Select one: a. insurance companies. b. brokerage firms c. mutual savings banks. d. commercial banks.
Answer:
c
Explanation:
A thrift institution is an institution that receives a large proportion of its funds from savings made by the public
types of thrift institutions include :
Savings and loan association Mutual savings bank Credit unionThe supplies account had a beginning balance of $1,823. Supplies purchased during the period totaled $4,344. At the end of the period before adjustment, $286 of supplies were on hand. Prepare the adjusting entry for supplies. If an amount box does not require an entry, leave it blank.
Answer and Explanation:
The adjusting entry is as follows:
Supplies expense ($1,823 + $4,344 - $286) $5,881
To supplies payable $5,881
(being the supplies expense is recorded)
Here the supplies expense is debited as it increased the expense and supply payable is credited as it also increased the liabilities
Hightown Electronics deposits $75,000 at the end of each 6-month period for the next 3 years, to accumulate enough money to meet debts that mature in 3 years. What is the future value that the company will have on deposit at the end of 3 years if the annual interest rate is 10%?
Answer:
$510,143.25
Explanation:
Calculation to determine the future value that the company will have on deposit at the end of 3 years
First step is to calculate the Present value (PV) using financial calculator
N = ( 3 years x 2 )=6
I/Y = ( 10% / 2 )=5%
PV = ?
PMT = -$75,000
FV = 0
Hence,
PV = $380676.91
Now let calculate Face value (FV) using financial calculator
N = 6
I/Y = 5%
PV = -$380,676.91
PMT = 0
FV = ?
Hence,
FV = $510,143.25
Therefore the future value that the company will have on deposit at the end of 3 years is $510,143.25
Brodrick Company expects to produce 21,000 units for the year ending December 31. A flexible budget for 21,000 units of production reflects sales of $504,000; variable costs of $63,000; and fixed costs of $141,000. Assume that actual sales for the year are $595,600 (26,900 units), actual variable costs for the year are $114,000, and actual fixed costs for the year are $133,000. Prepare a flexible budget performance report for the year.
Answer:
Brodrick Company
Flexible Budget Performance Report for the year ended December 31
Flexible Actual Variance
Budget Budget
Sales unit 21,000 26,900 5,900 units F
Sales revenue $645,600 $595,600 $50,000 U
Variable costs 80,700 114,000 33,300 U
Fixed costs 141,000 133,000 8,000 F
Total costs $221,700 $247,000 $25,300 U
Profit $423,900 $348,600 $75,300 U
Explanation:
a) Data and Calculations:
Flexible Budget for 21,000 units
Sales revenue = $504,000
Variable cost = $63,000
Fixed costs = $141,000
Flexing the budget with 26,900 units:
Sales revenue = $645,600 ($504,000/21,000 * 26,900)
Variable costs = $80,700 ($63,000/21,000 * 26,900)
During the year, the Fletcher Company experienced the following accounting transactions:
1. Purchased equipment with cash in the amount of $130,000.
2. Purchased supplies on account in the amount of $16,500.
3. Collected $37,000 cash from customers.
4. Paid a cash dividend of $17,000.
Using the accounting equation, record each of the transactions.
Answer:
Transaction 1
Debit : Equipment $130,000
Credit : Cash $130,000
Transaction 2
Debit : Supplies $16,500
Credit : Account Payable $16,500
Transaction 3
Debit : Cash $37,000
Credit : Account Receivable $37,000
Transaction 4
Debit : Dividend $17,000
Credit : Cash $17,000
Explanation:
The first step to record transactions is to identify two or more accounts affected by the transaction.
After that determine if the assets, liability or equity of the accounts identified are increasing or decreasing.
Assets increase on the debit side and decrease on the credit side. The opposite applies to liability and equity.
Byrde Company purchased a truck. The seller asked for $11,000, but Byrde paid only $10,000 after negotiation. The owner of Byrde Company believes he got a great deal and the truck is really worth $15,000. What amount does Byrde record on its financial statements for the truck
Answer:
Byrde Company
The amount that Byrde should record on its financial statements for the truck is:
= $10,000.
Explanation:
a) Data and Calculations:
Seller's asking price = $11,000
Amount paid after negotiation = $10,000
Fair price for the truck = $15,000
b) The amount to be recognized or recorded by Byrde on its financial statements for the truck is the cost price, that is, the amount that Byrde paid actually for the truck. The fair price cannot be recognized, since GAAP does not allow for noncurrent assets to be recognized at their fair prices. The historical cost is objective and verifiable, unlike the $15,000 fair price or the seller's asking price.
The amount that should be recorded on the financial statement for the truck is $10,000.
Given that,
The asked value is $11,000.The Company paid the amount of $10,000.The great deal amount should be $15,000.Since the truck was purchased for $10,000 so the same amount should be recorded on the financial statements.
Therefore we can conclude that the amount that should be recorded on the financial statement for the truck is $10,000.
Learn more about the financial statement here: brainly.com/question/14951563
Suppose you want to invest $10,000. You have two options: (1) Invest in California municipal bonds with an expected rate of return of 7.00%, or (2) invest in J and K Corp.’s bonds with an expected rate of return of 10.50%. Assume that your decision is based on a tax perspective. If everything else is the same for both bonds, at what tax rate would you be indifferent between these two bonds?
Answer: 33.33%
Explanation:
Based on the information given in the question, the tax rate that the individual will be indifferent between these two bonds will be calculated thus:
= Corporate bond yield × (1-tax rate) = Municipal bond yield
10.50% × (1 - Tax rate) = 7.00%
(1 - Tax rate) = 7.00% / 10.50%
(1 - Tax rate) = 0.6667
Tax rate = 1 - 0.6667
Tax rate = 0.3333
Tax rate = 33.33%
On May 2, A-Z Construction prepaid $50,400 to the city for taxes (license foes) for the next 12 months and debited the prepaid taxes account. Az Construction is also required to pay in January an annual tax (on property) for the current calendar year of $27,700.
Required:
a. Journalize the two adjusting entries required to bring the accounts affected by the two taxes up to date as of December 31, the end of the current year.
b. What is the amount of tax expense for the current year?
Answer:
hfhfhfhdhhdhfhfhfhfhfh you are boyExplanation:
to
pn
jvjvjvjvkdoom id the power of
Contingency planning is also known as Group of answer choices a trend analysis. scenario planning and scenario analysis. organizational opportunities. strategic planning. scenario goal-setting and plans.
Answer:
scenario planning and scenario analysis.
Explanation:
Planning can be defined as the process of developing organizational objectives and translating them into action plans or courses of action.
This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods that are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.
Contingency planning is also known as scenario planning and scenario analysis.
Basically, a contingency planning is a type of plan that is typically designed by a business firm to take into account a possible future circumstance or event based on a forecast.