To determine the answers, let's calculate the price of a share of stock, the value of the investment, and the per-share stock price with and without the new investment:
a. Price of a share of stock without the new investment:
The firm expects to earn $71 million per year in perpetuity. Using the required rate of return of 12 percent, we can calculate the price per share using the Gordon Growth Model:
Price per share = Earnings / Required rate of return
Price per share = $71 million / 0.12 = $591.67 million / 15 million shares
Price per share = $39.44
b. Value of the investment:
The investment involves an initial investment of $16 million today and $5 million in one year, with annual earnings of $11 million in perpetuity starting two years from today. We can calculate the present value of the investment using the discounted cash flow (DCF) method:
Present value = Initial investment + Present value of future earnings
Present value = $16 million + ($11 million / 0.12) + ($11 million / 0.12^2)
Present value = $16 million + $91.67 million + $763.89 million
Present value = $871.56 million
c. Per-share stock price with the new investment:
To determine the per-share stock price with the new investment, we need to consider the additional earnings from the investment. The new investment generates $11 million in perpetuity, starting two years from today. We can calculate the additional earnings per share:
Additional earnings per share = Additional earnings / Number of shares
Additional earnings per share = $11 million / 15 million shares
Additional earnings per share = $0.73
The new per-share stock price will be the sum of the original stock price and the additional earnings per share:
Per-share stock price = Price of a share of stock without the investment + Additional earnings per share
Per-share stock price = $39.44 + $0.73
Per-share stock price = $40.17
Therefore, the answers are:
a. The price of a share of stock without the new investment is $39.44.
b. The value of the investment is $871.56 million.
c. The per-share stock price with the new investment is $40.17.
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if the payroll tax were increased, the empirical evidence suggests that:
If the payroll tax were increased, the empirical evidence suggests that: secondary earners would change their hours worked more than would primary earners. The correct option is C.
This is because secondary earners, who often have more flexible working schedules or are in part-time roles, are generally more responsive to changes in tax rates. They may choose to adjust their working hours to compensate for the increased tax burden or to maintain a certain level of after-tax income.
On the other hand, primary earners, who usually have less flexibility in their work hours and are responsible for a larger portion of the household income, tend to be less responsive to changes in payroll tax rates. Overall, this scenario highlights the differing labor market behavior of primary and secondary earners in response to changes in tax policies. The correct option is C.
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Complete question:
If the payroll tax were increased, the empirical evidence suggests that:
a secondary earners would work more.
b. primary earners would work more.
c. secondary earners would change their hours worked more than would primary earners.
d primary earners would change their hours worked more than would secondary earners.
The engineers at Apple discovered that the MacBook could explode if it fell from a height of over 10 feet. The most ethical decision that Apple world make is to: a) Conduct a cost-benefit analysis to determine whether it would e nore costly to change the design or pay victims. b) Take responsibility and fix the design, even if it costs then money. c) Do nothing, as it is the customer's own fault if they drop the product. d) Blame the customer for being careless, and avoid responsibility. e) None of the above
The most ethical decision that Apple could make is to take responsibility and fix the design, even if it costs them money. The correct answer is option b.
This is because a company has a moral and ethical obligation to ensure that its products are safe for use and do not pose any harm or danger to its users.
Apple's discovery of the potential for the MacBook to explode when dropped from a certain height indicates that the product has a design flaw that needs to be addressed. Failing to take responsibility and fix the design would be unethical, as it would put customers' safety and well-being at risk.
Conducting a cost-benefit analysis, blaming the customer, or doing nothing would also be unethical and prioritize financial gain over customer safety.
The correct answer is option b.
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(Legal restrictions on dividend payments) Describe the types of limitations firms can face from legal restrictions on dividend payments Which of the following statements describe the types of limitations firms can face from legal restrictions on dividend payments? (Select all that apply.) A. A corporation may not pay a dividend if the amount of the dividend exceeds the firm's retained earnings. C. A corporation may not pay a dividend if the dividend is being paid from capital invested in the firm. E. A corporation may not pay a dividend when any preferred dividends are delinquent. B. A corporation may not pay a dividend if the firm's liabilities exceed its assets. D. A corporation may not pay a dividend before the debt is repaid
Legal restrictions on dividend payments can place limitations on a corporation's ability to pay dividends to shareholders.
A. This statement is correct. Legal restrictions may prevent a corporation from paying a dividend that exceeds the firm's retained earnings. This is to ensure that a corporation does not distribute dividends that exceed its profits and therefore protect the interests of its creditors.
B. This statement is also correct. Legal restrictions may prevent a corporation from paying a dividend if its liabilities exceed its assets. This is because a corporation must first pay off its obligations before it can distribute dividends to its shareholders.
C. This statement is correct. Legal restrictions may prevent a corporation from paying a dividend if it is being paid from capital invested in the firm. This is to ensure that a corporation does not distribute dividends that are funded by its shareholders' capital.
D. This statement is not correct. A corporation may choose to pay dividends before repaying debt. However, it may impact the corporation's ability to raise capital in the future as investors may prefer corporations that prioritize debt repayment.
E. This statement is correct. Legal restrictions may prevent a corporation from paying a dividend when any preferred dividends are delinquent. This is to ensure that a corporation first satisfies its obligations to its preferred shareholders before distributing dividends to its common shareholders.
A. A corporation may not pay a dividend if the amount of the dividend exceeds the firm's retained earnings. This is because retained earnings represent the accumulated profits available for distribution to shareholders.
B. A corporation may not pay a dividend if the firm's liabilities exceed its assets. This is to ensure that the company does not jeopardize its financial stability by distributing dividends when it is in a financially distressed situation.
C. A corporation may not pay a dividend if the dividend is being paid from capital invested in the firm. Dividends should be paid from the profits generated by the company and not from the initial investment made by shareholders.
E. A corporation may not pay a dividend when any preferred dividends are delinquent. Preferred stockholders have a priority claim on dividends, and companies must satisfy these obligations before paying dividends to common stockholders.
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The group has decided to survey a methodically chosen sample of students in each business major. This is an example of Multiple Choice a) stratified random sampling. b) convenience sampling. c) purposeful sampling. d) cluster sampling. e) simple random sampling.
The group's decision to survey a methodically chosen sample of students in each business major is an example of stratified random sampling.
This method involves dividing the population (in this case, all students in business majors) into smaller groups or strata based on certain characteristics (e.g. major). A random sample is then selected from each stratum to ensure representation from all groups. This approach allows for a more accurate representation of the population compared to other sampling methods, such as convenience sampling or simple random sampling, which may not provide a representative sample. By using stratified random sampling, the group can gather more reliable data and make more informed decisions related to their business goals. Overall, this decision showcases the group's dedication to using a rigorous and systematic approach to their research.
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Pharoah Company has assets of $4429000, common stock of $1099000, and retained earnings of $620000. What are the creditors' daims on their assets? OA. $4894000 OB. $4040000 C.$2024000 D.$2710000
Their assets are subject to $2710000 in demands from creditors. As a result, choice (D) is accurate.
The two main categories of assets are physical assets and intangible assets. There are several subcategories of tangible assets, including current assets and fixed assets.
Current assets include cash, inventories, and accounts receivable, whereas fixed assets are comprised of real estate, creditors structures, and machinery.
Intangible assets are non-physical resources and rights that are valuable to a company because they provide it a competitive edge.
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If 1. 5 thousand gallons are in stock at the beginning of the week and no new supply is due in during the week, how much of the 1. 5 thousand gallons is expected to be left at the end of the week
If 1.5 thousand gallons are in stock at the beginning of the week and no new supply is due in during the week, the expected amount of 1.5 thousand gallons that will be left at the end of the week is 1.5 thousand gallons, assuming no usage has occurred.
This is because there is no new supply of stock that will be available for usage throughout the week.What is a gallon?A gallon is a unit of measurement for volume and capacity in both the US customary system and the British imperial system. A gallon is defined as 128 fluid ounces, 231 cubic inches, or approximately 3.785 liters. It is commonly used to measure liquid substances such as water, gasoline, and milk.
In the context of this problem, 1.5 thousand gallons refers to 1,500 gallons.What is stock?Stock refers to the total amount of a product that is available for sale, distribution, or use at a given time. In the context of this problem, the stock refers to the total amount of gallons available at the beginning of the week. No new supply is due in during the week, so the stock will remain at 1.5 thousand gallons throughout the week.
What is the answer?The expected amount of 1.5 thousand gallons that will be left at the end of the week is 1.5 thousand gallons, assuming no usage has occurred. This is because there is no new supply of stock that will be available for usage throughout the week.
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During 2006, Camp Company sold equipment with a book value of $45,000 for proceeds of $52,000. The company purchased new equipment for $120,000 by signing a long-term note payable. No other transactions impacted long-term asset accounts during 2006. The investing section of the statement of cash flows will report net cash outflows of $113,000. net cash outflows of $68,000. net cash inflows of$7,000.
The investing section of the statement of cash flows will report net cash outflows of $113,000 in 2006.
The investing section of the statement of cash flows reports cash inflows and outflows from the acquisition and disposition of long-term assets, such as property, plant, and equipment.
In this scenario, Camp Company sold equipment with a book value of $45,000 for proceeds of $52,000, which resulted in a cash inflow of $7,000. However, the company also purchased new equipment for $120,000 by signing a long-term note payable, resulting in a cash outflow of $120,000.
To calculate the net cash flow from investing activities, we need to subtract the total cash outflows from the total cash inflows. Therefore, the net cash flow from investing activities in 2006 would be:
Net cash flow = Cash inflow - Cash outflow
Net cash flow = $7,000 - $120,000
Net cash flow = -$113,000
Based on this calculation, the investing section of the statement of cash flows will report net cash outflows of $113,000 in 2006.
In summary, the sale of equipment generated a cash inflow, but the purchase of new equipment resulted in a larger cash outflow. Therefore, the net effect of these transactions on the company's cash position was negative, resulting in a net cash outflow from investing activities.
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what is the required return on assets? tiger towers
In summary, the required return on assets is a crucial component in evaluating the potential return and risk of any investment. However, specific calculations and determinations for investments like Tiger Towers would require further information and analysis.
The required return on assets is the minimum rate of return that an investor or company requires from an investment in order to justify the risk of that investment. The required return on assets can vary depending on factors such as the level of risk associated with the investment, the current economic climate, and the investor's or company's specific goals and objectives.
As for Tiger Towers, without additional information on the investment and the company behind it, it is difficult to determine what the required return on assets for this particular investment would be. However, in general, investments in the real estate industry such as building or developing a property like Tiger Towers can have varying levels of risk and return potential, and the required return on assets for such investments would be based on those factors.
In summary, the required return on assets is a crucial component in evaluating the potential return and risk of any investment. However, specific calculations and determinations for investments like Tiger Towers would require further information and analysis.
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A company purchased equipment, incurring the following costs: Invoice price $55,000 Sales taxes. 3,200 Shipping 850 Insurance for next 6 months 950 Installation and testing 1,500 What amount should be recorded as the acquisiton cost of the equipment
The acquisition cost of the equipment should include all the costs directly attributable to bringing the equipment to its intended location and condition for use. In this case, the costs that should be recorded as the acquisition cost of the equipment are as follows:
Invoice price: $55,000
Sales taxes: $3,200
Shipping: $850
Insurance for the next 6 months: $950
Installation and testing: $1,500
To determine the total acquisition cost, we sum up these costs:
$55,000 + $3,200 + $850 + $950 + $1,500 = $61,500
Therefore, the acquisition cost of the equipment should be recorded as $61,500.
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The Covid-19 pandemic effects on the marketing mix (product, price, promotion, and distribution) may include the following except:
a. Lockdown and shutdown of many retailers and wholesalers
b. Socially conscious public relations and messages
c. New product development and testing
d. Price gouging
The Covid-19 pandemic has certainly had an impact on the marketing mix of many businesses. Therefore, d. Price gouging is not a viable option for businesses during the Covid-19 pandemic.
Lockdown and shutdown of many retailers and wholesalers has led to a disruption in distribution, making it harder to get products into the hands of consumers. However, socially conscious public relations and messages have become increasingly important to connect with customers during this time. Many companies are focusing on promoting the safety measures they are taking to protect their customers and employees. New product development and testing may have been put on hold temporarily due to the pandemic, but businesses are still looking for ways to innovate and adapt to the current climate. Price gouging is never an acceptable practice, and businesses that engage in it risk damaging their reputation and losing customers.
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Part I During 2020, Silver Electronics recorded credit sales of $640,000. Based on prior experience, it estimates a 3.5 percent bad debt rate on credit sales. Required: a. Prepare journal entries for each of the following transactions, i. The appropriate bad debt expense adjustment was recorded for the year 2020. (2 marks) ii. On December 31, 2020, an account receivable for $1,800 from a prior year was determined to be uncollectible and was written off. (2 marks) b. Complete the following tabulation, indicating the amount and effect (+ for increase, - for decrease, and NE for no effect) of each transaction. Net Sales Gross Profit Income from Operations Transaction
The bad debt expense adjustment is a non-cash expense that does not affect net sales, gross profit or income from operations. It is recorded to increase the allowance for doubtful accounts to reflect the estimated uncollectible amount of credit sales.
The write off of uncollectible account is a reduction in accounts receivable, which reduces net sales, gross profit and income from operations. This is because the uncollectible amount is no longer included in the calculation of these financial measures.
Part I:
a. Journal Entries:
i. Bad debt expense adjustment:
Debit Bad Debt Expense for $22,400 (3.5% of $640,000)
Credit Allowance for Doubtful Accounts for $22,400
ii. Write off of uncollectible account:
Debit Allowance for Doubtful Accounts for $1,800
Credit Accounts Receivable for $1,800
b. Tabulation:
Transaction | Amount | Effect on Net Sales | Effect on Gross Profit | Effect on Income from Operations
Bad debt expense adjustment | $22,400 | - | - | -
Write off of uncollectible account | $1,800 | - | - | -
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Which account was displayed in the Deposit to field for the payment deposited in Step 1 of Practice Exercise 1. 1
Select one:
The checking account is displayed in the Deposit to field for the payment deposited in Step 1 of Practice Exercise
What is the checking account?In accounting, the Deposit to field refers to the specific account where a payment or deposit is recorded. In Step 1 of Practice Exercise 1.1, when making a deposit, the most common account displayed in the Deposit to field would be the checking account.
The checking account is a common type of bank account that businesses use for day-to-day transactions, such as receiving payments and making withdrawals. It serves as a central account where funds are deposited and from which payments are made.
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Which account was displayed in the Deposit to field for the payment deposited in Step 1 of Practice Exercise 1.1? Select one:
a. Cash
b. Accounts Receivable
c. Checking
rollo has a credit card from shopping cards, inc. to change the terms, shoppingA. Must send monthly bills twenty-one days before the change B. Must gove Rollo advance noticeC. Can increase the interest rate only retroactivelyD. Must impose double-cycle billing.
Rollo has a credit card from shopping cards, inc. to change the terms, shopping: D. Must impose double-cycle billing.
Rollo has a credit card from Shopping Cards, Inc. If the terms of the card are to be changed, the company must adhere to certain rules.
Firstly, they must send Rollo monthly bills at least twenty-one days before the change. This gives Rollo enough time to review the changes and decide if he wants to continue using the card or not.
Secondly, the company must give Rollo advance notice before making any changes. This means that they cannot change the terms of the card without informing Rollo beforehand. This gives Rollo time to prepare for any changes and plan his finances accordingly.
Thirdly, the company can only increase the interest rate retroactively. This means that they cannot charge Rollo a higher interest rate on his outstanding leverage . They can only apply the higher interest rate to any new purchases that Rollo makes after the change.
Finally, the company must impose double-cycle billing. This means that they must calculate the interest on Rollo's outstanding balance over two billing cycles instead of one. This can result in Rollo paying more interest than he would have otherwise.
In conclusion, if Shopping Cards, Inc. wants to change the terms of Rollo's credit card, they must follow certain rules. They must send monthly bills twenty-one days before the change, give Rollo advance notice, increase the interest rate only retroactively, and impose double-cycle billing. These rules are in place to protect Rollo's rights as a credit card holder and ensure that he is not taken advantage of by the company, therefore option D) is the correct answer
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The main answer is: Shopping Cards, Inc. must provide Rollo with advance notice before changing the terms of his credit card. The Option B is correct.
What obligation does the firm have on changing credit card terms?Shopping Cards, Inc. has a legal obligation to give Rollo advance notice before making any changes to the terms of his credit card. This means that Rollo should receive notification in advance which will allow him sufficient time to review and understand the changes before they come into effect.
By providing advance notice, Shopping Cards, Inc. ensures transparency and allows Rollo to make informed decisions about his credit card usage. It is an important consumer protection measure that ensures customers are aware of any modifications to their credit card agreements.
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* explain what you believe to be the most pressing ethical leadership challenge facing those serving in your career field today. how can you exercise positive leadership to combat this challenge?
In today's world, the most pressing ethical leadership challenge is to maintain integrity and transparency in all decision-making processes. The rapid pace of technological advancements has resulted in an increase in data breaches and privacy violations, which have raised concerns about the ethical implications of emerging technologies.
Leaders need to prioritize ethics over profits and act responsibly to ensure that they are not compromising the safety and well-being of their employees, customers, or stakeholders.
To combat this challenge, leaders should adopt a proactive approach to ethics and encourage ethical behavior by setting an example for others to follow. They can exercise positive leadership by creating a culture of trust, transparency, and accountability, where ethical considerations are taken seriously and employees are encouraged to speak up when they encounter ethical dilemmas.
This can be achieved through ethical training programs, open communication channels, and regular ethical audits.
In summary, the most pressing ethical leadership challenge today is to maintain integrity and transparency in decision-making processes. Positive leadership can combat this challenge by creating a culture of trust, transparency, and accountability, where ethics are prioritized, and employees are encouraged to speak up.
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the process of lowering the land surface by wind erosion is known as ________. group of answer choices desertification deflation escarpment saltation
The process of lowering the land surface by wind erosion is known as Option B. deflation.
Deflation occurs when wind removes and transports loose particles such as sand, silt, and dust from the Earth's surface. This process contributes to the shaping and alteration of various landscapes, including desert environments.
Deflation typically involves three main components: A. saltation, the bouncing and hopping of sand grains due to wind; C. desertification, the process of fertile land transforming into a desert due to various factors such as drought, deforestation, or improper agricultural practices; and D. escarpment, which is a steep slope or long cliff formed by erosion or faulting.
While saltation plays a role in deflation by causing particles to become airborne, desertification and escarpment are not directly related to the lowering of the land surface by wind erosion but are associated with broader environmental and geological processes.
In summary, deflation is the process responsible for lowering the land surface through wind erosion, and saltation is one of the mechanisms involved in this process. Desertification and escarpment, although related to broader environmental and geological processes, are not directly involved in the process of deflation. Therefore, the correct option is B.
The question was incomplete, Find the full content below:
The process of lowering the land surface by wind erosion is known as ________.
A. saltation
B. deflation
C. desertification
D. escarpment
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true or false : more than one brainstorming session may be necessary in order to create a list of possible six sigma projects.
True. More than one brainstorming session may be necessary in order to create a list of possible Six Sigma projects. Brainstorming is a highly effective way to generate ideas and solutions to problems.
In Six Sigma, brainstorming sessions are used to identify potential projects that will help improve processes and reduce defects. However, it is important to keep in mind that brainstorming is not a one-time event. It is an iterative process that may require multiple sessions in order to come up with a comprehensive list of potential projects. The first brainstorming session may produce a few ideas, but subsequent sessions can help to build upon those initial ideas and generate even more potential projects.
Furthermore, it is important to involve a diverse group of stakeholders in the brainstorming sessions. This ensures that all perspectives are considered and that a wide range of ideas are generated. The more diverse the group, the more likely it is that unique and innovative ideas will be generated.
In conclusion, while the first brainstorming session can produce some potential Six Sigma projects, it is likely that more than one session will be necessary to generate a comprehensive list. These sessions should involve a diverse group of stakeholders to ensure that a wide range of ideas are generated and considered.
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.Susie Que has asked for a 20-year mortgage to purchase a home at Nag’s Head. The purchase price is $465,000, of which Susie must borrow $395,000 to be repaid in monthly installments. If Susie can get this loan for an APR of 5.50 percent, how much in total finance charges must she pay?
Show the work for the payment and then explain how to get the finance changes each month and yearly.
Susie Que would pay a total of $163,895.20 in finance charges over the 20-year term of the mortgage.
To determine the monthly installment payments, we need to use a mortgage calculator or formula. The formula is as follows:
[tex]M = \frac{P [ i(1 + i)^n ] }{ [ (1 + i)^n – 1]}[/tex]
Where,
M = Monthly installment payment
P = Principal amount borrowed ($395,000)
i = Monthly interest rate (APR/12) = 0.055/12 = 0.00458
n = Total number of installments (20 years x 12 months = 240 months)
Plugging in the values, we get:
M = $2,326.23
This means that Susie Que needs to pay $2,326.23 every month for the next 20 years to repay the loan.
The next month, the interest charges would be slightly lower as the loan balance has reduced. The installment payment, however, remains the same. This continues each month, with the interest portion decreasing and the principal portion increasing until the loan is fully paid off in 20 years.
To calculate the total finance charges over the entire 20-year term, we can use the following formula:
Total Finance Charges = Total Payments – Principal Amount Borrowed
Total Payments = Monthly Installment Payment x Total Number of Installments
Total Payments = $2,326.23 x 240
Total Payments = $558,895.20
Total Finance Charges = $558,895.20 - $395,000
Total Finance Charges = $163,895.20
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What general ledger account is credited when bills are entered?
When bills are entered, the accounts payable account is credited in the general ledger. Bills are records of the amounts owed by a business for goods or services received.
When these bills are entered into the accounting system, they are recorded as a liability in the accounts payable account. This account represents the amount that the business owes to its vendors or suppliers for goods and services that have been received but not yet paid for.
The credit to the accounts payable account is balanced by a debit to an expense or asset account, depending on the nature of the bill. For example, if the bill is for office supplies, the debit would be to the office supplies expense account. If the bill is for equipment, the debit would be to an asset account such as equipment or fixed assets.
It is important to accurately record bills in the accounts payable account to ensure that the business's financial statements reflect an accurate picture of its liabilities and cash flow.
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when a deferred tax liability is created, the deferred tax liability account is ______; when the item reverses, the deferred tax account is ______.
When a deferred tax liability is created, the deferred tax liability account is credited, indicating an increase in liability.
This is because a deferred tax liability represents the amount of income tax that a company will have to pay in the future, as a result of temporary differences between the financial statement and tax basis of assets and liabilities. When the item reverses, the deferred tax account is debited, indicating a decrease in liability. This is because the temporary difference that originally gave rise to the deferred tax liability has now been reversed, either because the asset or liability has been realized or settled or because the tax law has changed. It is important to note that deferred tax liabilities are non-cash expenses, which means that they do not affect a company's cash flow or cash position. However, they do impact a company's financial statements and tax obligations. Therefore, it is important for companies to properly account for deferred tax liabilities and ensure that they are accurately reflected in their financial statements. Failure to do so can result in penalties and legal issues.
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1. labor burden __________________ with allowance because allowance is subjected to_____________________________
Labor burden increases with allowance, as allowance is subjected to various additional costs and overheads that an employer must account for.
Labor burden refers to the total cost of employing a worker beyond their base salary or wages, including benefits, taxes, insurance, and other expenses. Allowance, on the other hand, is a specific type of compensation given to employees in addition to their salary, such as a housing, travel, or meal allowance.
When an employer provides allowances to their employees, the labor burden increases because these allowances are subjected to various overhead costs. Some of these costs may include taxes, such as payroll and social security taxes, as well as any costs associated with administering and managing the allowances. Additionally, allowances may be subjected to legal regulations and requirements that could further increase the employer's expenses.
In conclusion, labor burden increases with allowance because allowance is subjected to additional overhead costs, taxes, and legal requirements that employers must account for when compensating their employees.
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The bonds are issued at a price of $1,901,046. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Reg 2A to 20 Reg 4 Req 1 Reg 5 Reg 3 Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry orksl et Record the issue of bonds with a par value of $2,200,000 cash on January 1, 2019 at an issue price of $1,901,046. Note: Enter debits before credits. Date General Journal Debit Credit Cash January 01 1,901,046 Discount on bonds payable Bonds payable Record entry Clear entry View general journal
The January 1 journal entry to record the issuance of bonds with a par value of $2,200,000 cash on January 1, 2019, at an issue price of $1,901,046 is as follows:
Cash $1,901,046
Discount on bonds payable $298,954
Bonds payable $2,200,000
The bonds are issued at a discount because their issue price is less than their par value. The discount on bonds payable is calculated as the difference between the par value of the bonds and their issue price. In this case, the discount on bonds payable is $298,954. The discount on bonds payable represents the total amount of interest that will be recognized over the life of the bonds, and it will be amortized over the life of the bonds using the effective interest method or the straight-line method.
The cash received from the issuance of the bonds is $1,901,046, which is less than the par value of the bonds. This is because the bonds are issued at a discount, which reduces the amount of cash received. The bonds payable account represents the total amount of principal that must be repaid at maturity. The bonds will have a stated interest rate, which will be used to calculate the semiannual interest payments. The total amount of bond interest expense to be recognized over the bonds' life can be calculated by adding up all of the semiannual interest payments. The amortization table will show the amount of interest expense and discount amortization for each semiannual period.
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. what considerations should be taken into account when making decisions about the package count? what package size would you recommend?
When making decisions about package count, several considerations should be taken into account.
What are the considerations?Firstly, the product's fragility, weight, and size should be considered to ensure that the package is sturdy enough to protect the product during shipping.
Secondly, the shipping distance and mode of transportation should be considered to ensure that the package count is not excessive or insufficient.
Thirdly, the cost of packaging materials and shipping charges should be considered to ensure that the package count is cost-effective for both the seller and the buyer.
As for package size, it would depend on the product's size and weight, as well as the shipping cost. I would recommend finding the most cost-effective package size that is suitable for the product's protection during shipping.
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Part I. (Modification of Problem #3.1-9 from Hillier & Lieberman’s OR text, 10th edition) The Primo Insurance Company is introducing two new product lines: special risk insurance and mortgages. The expected profit is $5 per unit on special risk insurance and $2 per unit on mortgages. Management wishes to establish sales quotas for the new product lines to maximize total expected profit. The work requirements are as follows: Department Work-Hours per Unit Work-Hours Available Special Risk Mortgage Underwriting 3 2 2400 Administration 0 1 800 Claims 2 0 1200 The linear programming model for this problem is:
Maximize Z = 5X1 + 2X2
Subject to. 3X1 + 2X2 ≤ 2400
X2 ≤ 800
2X1 ≤ 1200
X1 ≥ 0, X2 ≥ 0
(a) Draw the feasible region of the above LP (1 point).
(b) Use the simplex algorithm to find the optimal solution of the above LP (Show the initial and each succeeding tableau) (1 point).
(c) On the sketch of the feasible region in (a), indicate the initial basic solution and the basic solution at each succeeding iteration (1 point).
(d) Describe the optimal solution briefly in "plain English" (1 point).
(e) Use the graphical method to find the optimal solution of this problem (Be sure to plot an isovalue line) (1 point).
With work-hour constraints, the linear programming model was formulated and solved using the simplex algorithm and graphical method. The optimal solution is X1 = 1000 and X2 = 800, with a maximum expected profit of $7,800.
Feasible region of Maximize Z = 5X1 + 2X2
Subject to. 3X1 + 2X2 ≤ 2400
X2 ≤ 800
2X1 ≤ 1200
X1 ≥ 0, X2 ≥ 0
is shown in graph in image
Initial tableau:
BV | X1 X2 S1 S2 S3 Z
----------------------------------------
S3 | 3 2 1 0 0 0
S2 | 0 1 0 1 0 0
S1 | 2 0 0 0 1 0
----------------------------------------
| 5 2 0 0 0 0
Iteration 1:
BV | X1 X2 S1 S2 S3 Z
----------------------------------------
S3 | 1.5 1 1 0 -0.5 0
S2 | 0 1 0 1 0 0
X1 | 1 0 0 -0.33 0.67 0
----------------------------------------
| 5 2 0 0 2 0
Iteration 2:
BV | X1 X2 S1 S2 S3 Z
----------------------------------------
X2 | 1.5 1 1 0 -0.5 0
S2 | 0 1 0 1 0 0
X1 | 1 -0.67 0 0.33 -0.33 0
----------------------------------------
| 5 3.34 0 0 1.34 0
The optimal solution is X1 = 1,000, X2 = 800, with a total expected profit of $7,800.
The initial basic solution is (0, 0), and the basic solutions at each succeeding iteration are (0, 800), (1, 800), and (1, 1,000).
The optimal solution is to sell 1,000 units of special risk insurance and 800 units of mortgages, which will maximize the total expected profit to $7,800.
To find the optimal solution using the graphical method, we plot the constraints and the objective function on a graph and look for the corner point that maximizes the objective function. The isovalue line for Z = $7,800 is also plotted.
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Which organizational control system uses shared values, norms, and socialization as measures of control?
Multiple Choice
output control
behavior control
feedback control
clan control
concurrent control
The organizational control system that uses shared values, norms, and socialization as measures of control is "clan control."
Clan control is based on creating a strong organizational culture where employees share common values, beliefs, and norms. It emphasizes fostering a cohesive work environment and promoting employee commitment to the organization's goals and objectives.
In clan control, control measures are implemented through socialization processes, including orientation programs, training, mentorship, and team-building activities. The focus is on developing a sense of shared responsibility, mutual trust, and collaboration among employees.
By establishing a strong culture and socializing employees into the desired norms and values, clan control influences employee behavior and decision-making. It relies on the belief that when individuals identify with the organization and its values, they will naturally act in alignment with those values, reducing the need for external control mechanisms.
Therefore, the correct answer is: clan control.
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consider the following sql statement: select * from employee where loc_num = '1004' and title = 'manager'
This SQL statement is querying the employee table and looking for employees who are located in location number 1004 and have the job title of manager. The result set will include all columns for those employees who meet these criteria.
The purpose of this query may be to retrieve a list of all managers who work in location 1004. This information could be useful for various business purposes, such as identifying key decision makers in that location or determining the hierarchy of employees in that department. The use of SQL statements like this one can help managers and other decision makers in a company to access important information about their employees quickly and easily. By querying the database, they can gain insights into employee performance, location, job titles, and other factors that can help them make informed decisions about their workforce. In conclusion, this SQL statement is a simple yet powerful way to retrieve specific information about employees who meet certain criteria. It is an essential tool for managers and other business leaders who need to make informed decisions about their employees and their organization as a whole.
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Scientific investigation is characterized by a good theoretical base and a sound methodological design. These characteristics are both related to the of the investigation.
a
Rigor
b
Precision and confidence.
c
Objectivity.
d
Parsimony.
The correct answer is B) Precision and confidence. Scientific investigation requires a strong theoretical foundation that provides a framework for the research question and guides the development of the research design.
The correct answer is B) Precision and confidence. Scientific investigation requires a strong theoretical foundation that provides a framework for the research question and guides the development of the research design. The theory should be based on previous research and should be logically consistent and well-supported by empirical evidence. In addition to a strong theoretical foundation, scientific investigation requires a sound methodological design. This includes a clear research question, appropriate data collection methods, and appropriate statistical analyses. The design should be carefully planned to ensure that the data collected will be reliable and valid, and that the results will be generalizable to the population of interest. Rigor is the degree to which a scientific investigation adheres to these principles. A rigorous investigation is characterized by a well-developed theoretical foundation, a sound methodological design, and careful attention to detail in the data collection and analysis. This results in research that is both precise and confident, objective, and parsimonious. Ultimately, Precision and confidence.is essential to ensure that scientific investigations produce reliable and valid results that advance our understanding of the world around us.
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What tool might the Fed use to boost the economy during a recession? a. releasing more paper currency and coins. b.raising interest rates. c. Buying government securities d.Sell government securities to the public
During a recession, the Fed may use various tools to boost the economy, including buying government securities, option C). Buying government securities is one tool that the Fed might use to increase the money supply in the economy, hence option C) is the correct option.
The Federal Reserve, commonly known as the Fed, is responsible for implementing monetary policies that help stabilize the US economy. During a recession, the Fed may use various tools to boost the economy, including buying government securities. Buying government securities is one tool that the Fed might use to increase the money supply in the economy. When the Fed buys government securities, it injects money into the economy, thereby increasing the money supply. This increased money supply helps to lower interest rates, which can stimulate borrowing and spending, leading to increased economic activity. In contrast, selling government securities to the public can reduce the money supply in the economy. By selling government securities, the Fed reduces the amount of money in circulation, which can lead to higher interest rates and decreased economic activity. Therefore, this tool is not typically used to boost the economy during a recession. Raising interest rates is another tool that the Fed might use to stabilize the economy. Higher interest rates can encourage saving and discourage borrowing, which can help to slow down inflation. However, during a recession, higher interest rates can also lead to decreased borrowing and spending, which can further depress the economy. Releasing more paper currency and coins is not typically used as a tool to boost the economy during a recession. Increasing the money supply in this manner can lead to inflation, which can actually make the recession worse. In conclusion, buying government securities is one tool that the Fed might use to boost the economy during a recession. This tool can increase the money supply, lower interest rates, and stimulate borrowing and spending, leading to increased economic activity. Therefore option C) is the correct answer.
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Data backup should be based on a(n) __________ policy that specifies how long log data should be maintained.
a) incident response
b) retention
c) replication
d) business resumption
Data backup should be based on a (b) retention policy that specifies how long log data should be maintained.
A data backup retention policy is a set of guidelines that outlines how long backup data should be kept and when it should be deleted or destroyed.
This policy specifies the retention periods for different types of data, including log data, which records the events and actions that occur in an information system.
A well-defined retention policy ensures that data is retained for a sufficient period of time to meet legal or regulatory requirements, as well as business needs, while minimizing the risk of data breaches or privacy violations.
A retention policy also helps to ensure that backup data is easily accessible and recoverable in the event of a disaster or other unexpected event.
Incident response, replication, and business resumption are other policies that relate to different aspects of data management and information security, but they do not specifically address the issue of how long log data should be maintained.
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Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted bases: Adjusted FMV Basis Inventory 19,25 11,300 73,000 49,250 125,000 65,500 Building Land Total $217,250 $126,050 The falir market value of the corporation's stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Ramon. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Problem 19-36 Part a a. What amount of gain or loss does Ramon realize on the transfer of the property to his corporation? Gain or loss realized
Ramon transferred the property to his corporation and gained $217,250. He received stock in the corporation that was equal in value to the assets transferred, which exempts him from paying taxes on the gain.
Based on the information provided, we can calculate the gain or loss that Ramon would realize on the transfer of the property to his corporation. To do this, we need to determine the total fair market value of the assets transferred and subtract the adjusted basis of those assets.
The total fair market value of the assets transferred is $217,250 + $126,050 = $343,300.
The adjusted basis of the assets transferred is $11,300 + $49,250 + $65,500 = $126,050.
Therefore, Ramon would realize a gain of $343,300 - $126,050 = $217,250 on the transfer of the property to his corporation.
It's important to note that while Ramon realizes a gain on the transfer of the assets, he also receives stock in the corporation that is equal in value to the assets transferred. This means that Ramon is not receiving any additional cash or other assets that would trigger a tax liability for the gain realized.
In summary, Ramon realizes a gain of $217,250 on the transfer of property to his corporation. However, because he receives stock in the corporation that is equal in value to the assets transferred, he is not subject to any tax liability for the gain realized.
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Ashkar Company ordered a machine on January 1 at an invoice price of $21,000 on the date of delivery. January 2, the company paid $6,000 on the machine, with the balance on credit at 10 percent interest due in six months. On January 3, it paid $1,000 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,500. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the end of the accounting period). Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $4,000. Compute the acquisition cost of the machine.
The acquisition cost of the machine can be calculated by adding all the costs associated with purchasing and installing the machine. On January 1, the invoice price of the machine was $21,000. On January 3, Ashkar paid $1,000 for freight, and on January 5, they paid $2,500 for installation costs. Therefore, the total cost of the machine is $24,500.
However, the company paid only $6,000 on January 2, and the remaining balance of $18,500 was paid on July 1, with 10% interest due in six months. The interest on the credit was not factored into the acquisition cost of the machine.
Furthermore, on December 31, the company recorded depreciation on the machine using the straight-line method, which estimates the useful life of the machine as 10 years and the residual value as $4,000. This means that the annual depreciation expense is $2,100 ($21,000 - $4,000) / 10 years.
To summarize, the acquisition cost of the machine is $24,500, but this amount does not include the interest paid on the credit. Additionally, the depreciation expense of $2,100 per year must be recorded until the end of the estimated useful life of the machine.
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