Answer:
The answer is B.
Explanation:
Capital is what is used to start a business. It is what the owner's contribution in the business. In advanced class, it is called stock or equity. Capital is usually from the owner's savings. But if this money is borrowed either from an individual or a bank, the person is a borrower while the other party is the lender.
Option A is incorrect because money raised from someone makes the person borrowing a borrower and not a saver.
Option C and D are incorrect because the items needed for the business are not consumables, they are needed for the smooth running of the business, hence they are not consumption.
A statute passed by both houses of Congress and signed by the President authorizes a federal agency to select a site for and to construct a monument honoring members of the capitol police force killed in the line of duty. The statute appropriates the necessary funds but provides that the funds may not be expended until both houses of Congress have adopted a concurrent resolution, not subject to presentment to the President, approving the agency's plans for the monument's location and design.Required:Is the provision requiring further congressional approval before expenditure of the funds constitutional?
Answer: No
Explanation:
The statute has already conferred the powers to both select a site for and to construct a monument on a federal agency which by extension is the Executive branch. The Executive should therefore have final say in the monument's location and design to enable them break ground as soon as the necessary funds have been appropriated.
To still include a provision that the funds may not be expended until both houses of Congress have given further approval amounts to interference with an executive function rendering it unconstitutional as the powers of the Executive and the Legislative are to be separated.
One year ago, you purchased a stock at a price of $55.20 per share. Today, you sold your stock at a loss of 18.63 percent. Your capital loss was $12.62 per share. What was the total dividends per share paid on this stock over the year
Answer:
Dividend = $2.34
Explanation:
Purchase Price = $55.20
Loss on stock = 18.63% of $55.20 = $10.28
Capital Loss = $12.62
Dividend = Capital Loss - Total Loss
Dividend = $12.62 - $10.28
Dividend = $2.34
The optimum capital structure Question 4 options: a) Provides the lowest cost of capital b) Has the best mix of debt, preferred stock, and common equity c) Can change over time as market and firm conditions change d) All of these apply
Answer:
d) All of these apply.
Explanation:
An optimum capital structure can be defined as a financial instrument used by firms to determine the best mix of debt and equity financing that maximizes its market value, as well as minimizes its cost of capital such as operations and expansion. It minimizes the weighted average cost of capital (WACC) of a firm to the least most possible value.
Generally, the optimum capital structure used by a firm to maximize its market value;
a) Provides the lowest cost of capital.
b) Has the best mix of debt, preferred stock, and common equity.
c) Can change over time as market and firm conditions change.
Drew and Tammy decide to start a new cake-decorating business. They each contribute $10,000 to get the business off the ground. This money is considered
Answer: a down payment or deposit
Explanation:
Drew and Tammy decide to start a new cake-decorating business. They each contribute $10,000 to get the business off the ground. This money is considered as equity capital.
What do you mean by Business?The exchange, acquisition, sale, or creation of goods and services with the aim of making money and meeting client demands constitutes business. Businesses can be for-profit or nonprofit entities that work to further a social cause or make a profit, respectively.
Equity in the context of finance refers to ownership of assets with potential obligations such as debts. For accounting reasons, equity is calculated by deducting liabilities from the value of the assets. The difference of $14,000, for instance, is equity if a person owns a car worth $24,000 and owes $10,000 on the loan used to purchase the vehicle.
A single asset, like a car or house, or an entire company may be covered by equity. A company that needs to launch or grow its operations can sell equity to raise money that doesn't need to be repaid on a predetermined timeline.
Therefore, The money will be considered as Equity capital.
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Gretta's portfolio consists of $700,000 invested in a stock that has a beta of 1.2 and $300,000 invested in a stock that has a beta of 0.8. The risk-free rate is 6% and the market risk premium is 5%. Which of the following statements is CORRECT?
a. The required return on the market is 10%.
b. The portfolio's required return is less than 11%.
c. If the risk-free rate remains unchanged but the market risk premium increases by 2%, Gretta's portfolio's required return will increase by more than 2%.
d. If the market risk premium remains unchanged but expected inflation increases by 2%, Gretta's portfolio's required return will increase by more than 2%.
e. If the stock market is efficient, Gretta's portfolio's expected return should equal.
Answer: c. If the risk-free rate remains unchanged but the market risk premium increases by 2%, Gretta's portfolio's required return will increase by more than 2%.
Explanation:
To prove the above option, the Capital Asset Pricing Model can be used.
Required Return = Risk free rate + portfolio beta(market premium)
Portfolio Beta
This the weighted average of the individual betas.
Total portfolio value = 700,000 + 300,000 = $1,000,000
= ( 1.2 * 700,000/1,000,000) + ( 0.8 * 300,000/1,000,000)
= 0.84 + 0.24
= 1.08
Required return = 6% + 1.08 ( 5%)
= 6% + 5.4%
= 11.4%
Assuming risk-free rate remains unchanged but the market risk premium increases by 2%.
Required return = 6% + 1.08 ( 5% + 2%)
= 6% + 7.56%
= 13.56%
The change in required return
= (13.56% - 11.4%)/11.4%
= 18.9%
Proving that if the risk-free rate remains unchanged but the market risk premium increases by 2%, Gretta's portfolio's required return will increase by more than 2%.
Which if the following companies is most likely to benefit from economies of scale? (Select the best answer.)
a. a company that had only variable costs
b. a company that has many variables startup costs
c. a company that has many fixed costs
d. a company that doesn't have many employees
Answer:C
Explanation: A company that has many fixed costs
15 POINTS IF U ANSWER NOW!!!!! Which non-income factor for a potential job promotion would influence a person whose mother needs frequent medical attention? Location Personal satisfaction Independence Family
Answer:
Family
Explanation:
Because the person's mother needs medical attention and the mother is family, she would be influenced by family
True or false: At 2019 year-end, a government has $25,000 of outstanding encumbrances. The 2019 Budgetary Comparison Scheduled will include the $25,000 whether or not the encumbrances lapse at year-end.
Answer:
True.
Explanation:
The 2019 Budgetary Comparison Schedule will include the $25,000 whether or not the encumbrances lapse at the year-end, either as outstanding encumbrances or settled encumbrances. These $25,000 encumbrances are budget reservations of appropriations so that they can be used to settle specified expenditures in the future. The purpose of making these reservations is to signal that the expenditures have been earmarked so that their cash allocations are not used for other purposes.
Which of the following recognizes the intellectual property licensing of copyrights by all the signatory nations to the act?
a. The Madrid Convention
b. The Export Administration Act of 1985
c. The Berne Convention Implementation Act of 1988
d. The International Emergency Economic Powers Act of 1977
Answer:
c. The Berne Convention Implementation Act of 1988.
Explanation:
This was put into force in the United States of America in the year 1988 even though its laws were been vehemently upheld from the next year. This was a law put in place to be a guide to a lot of United States citizens who are known to ply their trades in the literary and also artistic sphere. It was seen as a protection agency to writers and artists in literary world. Their work at this early stages may have been performed only pursuant to appropriate domestic law. Also, in a bid to make this law a better one, it was said to be amended together with the law as it exists on the date of the enactment of this law been amended, satisfy the obligations to the citizens of the US.
Suppose a stock had an initial price of $54 per share, paid a dividend of $1.30 per share during the year, and had an ending share price of $51. Compute the percentage total return. What was the dividend yield and the capital gains yield?
Answer:
Use the equation for total return:
total stock return= (P1-P0)+D/P0
P0=Initial Stock Price
P1=Ending Stock Price (Period One)
D=Dividends
-3.15%---Percentage of total return
Dividend Yield-2.41%
Capital Gains-- -5.56%
The next dividend payment by Hoffman, Inc., will be $2.90 per share. The dividends are anticipated to maintain a growth rate of 4.75 percent forever. If the stock currently sells for $49.40 per share, what is the required return? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
10.6%
Explanation:
Calculation for the required return
Using this formula
Required return=(Dividend payment/Stock per share)+Anticipated growth rate
Let plug in the formula
Required return =($2.90 per share/$49.40 per share)+0.0475
Required return=0.05870+0.0475
Required return =0.106*100
Required return =10.6%
Therefore the Required return will be 10.6%
An asset has had an arithmetic return of 11.9 percent and a geometric return of 9.9 percent over the last 86 years. What return would you estimate for this asset over the next 8 years? 23 years? 39 years? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
11.74% ; 11.38%; 11.01%
Explanation:
Given the following :
Arithmetic return (Ar) = 11.9%
Geometric return (Gr) = 9.9%
N = 86 years = Past period
A) Return in the next 8 years
T = future period = 8 years
Return = (T - 1) / (N - 1) * Geometric average + (N - T) / (N - 1) * Arithmetic average.
Return = (8 - 1) / (86 - 1) * 0.099 + (86 - 8) / (86 - 1) * 0.119
(0.0823529 * 0.099) + (0.9176470 * 0.119)
= 0.1173529301
= 0.1173529301 * 100 = 11.74%
B) over the next 23 years
T = 23 years
Return = (T - 1) / (N - 1) * Geometric average + (N - T) / (N - 1) * Arithmetic average.
Return = (23 - 1) / (86 - 1) * 0.099 + (86 - 23) / (86 - 1) * 0.119
(0.2588235 * 0.099) + (0.7411764 * 0.119)
= 0.1138235181
= 0.1138235181 * 100 = 11.38%
C.) over 39 years
F = 39 years
Return = (T - 1) / (N - 1) * Geometric average + (N - T) / (N - 1) * Arithmetic average.
Return = (39 - 1) / (86 - 1) * 0.099 + (86 - 39) / (86 - 1) * 0.119
(0.4470588 * 0.099) + (0.5529411 * 0.119)
= 0.1100588121
= 0.1100588121 * 100 = 11.01%
obligations not expected to be paid within the longer of one year or the company's operating cycle are reported as
Answer:
Long term liabilities.
Explanation:
This can be easily or mostly be used in companies and also firms. In most cases they are been tagged a non-current liability.
They are generally defined to be obligations that are not been settled for/paid off in the current year or accounting period. Therefore, debts of this kind are not due within a year. Dept of this kind ranges from notes payable to bonds payable, also mortgages and are also seen as leases in a company settings.
In as much as this is not good for a company's financial health, investors and creditors see how the company is financed through this. Current obligations are seen to be more risky than non-current debts because they will need to be paid sooner.
If sales are $803,000, variable costs are 66% of sales, and operating income is $262,000, what is the contribution margin ratio
Answer:
34%
Explanation:
The formula to calculate the contribution margin ratio is:
Contribution margin ratio= (Sales – variable expenses)/sales
Sales=$803,000
Variable expenses=$803,000*66%=$529,980
Now, you can replace the values:
Contribution margin ratio=($803,000-$529,980)/$803,000
Contribution margin ratio=0.34
According to this, the answer is that the contribution margin ratio is 34%.
GoSnow sells snowboards. Each snowboard requires direct materials of $128, direct labor of $53, and variable overhead of $63. The company expects fixed overhead costs of $844,976 and fixed selling and administrative costs of $391,000 for the next year. The company has a target profit of $290,000. It expects to produce and sell 11,800 snowboards in the next year. The company has a target profit of $189,800. It expects to produce and sell 11,800 snowboards in the next year. Required:Compute the selling price using the variable cost method.
Answer:
$364.83
Explanation:
The computation of selling price using the variable cost method is shown below:-
Sales units for target profit = (Total fixed costs + Target profit) ÷ (Selling price per unit - Total Variable cost per unit)
11,800 = ($1,235,976 + $189,800) ÷ (Selling price per unit - $244)
11,800 = ($1,425,776) ÷ (Selling price per unit - $244)
(Selling price per unit - $244) = $1,425,776 ÷ 11,800
(Selling price per unit - $244) = 120.83
Selling price per unit = $120.83 + 244
= $364.83
Working note
Total fixed cost = Fixed overhead costs + Fixed selling and administrative costs
= $844,976 + $391,000
= $1,235,976
Total variable cost = Direct materials + Direct labor + and variable overhead
= $128 + $53 + $63
= $244
of a portfolio. The beta of four stocksG, H, I, and Jare , , , and , respectively. What is the beta of a portfolio with the following weights in each asset: LOADING...? What is the beta of portfolio 1?
Answer: 1.02
Explanation:
The Portfolio Beta will be the weighted average of the betas of the individual stocks in Portfolio 1.
Portfolio Beta = (weight in G * beta of G) + (weight in H * beta of H) + (weight in I * beta of I) + (weight in J * beta of J)
= (0.25 * 0.45) + ( 0.25 * 0.82) + ( 0.25 * 1.14) + ( 0.25 * 1.66)
= 0.1125 + 0.205 + 0.285 + 0.415
= 1.0175
= 1.02
The government is looking to double the living standards of its population in 18 years, what rate of GDP growth would it need to achieve that? Group of answer choices
Answer:
4%
Explanation:
The rule of 72 is used to calculate the number of years it takes for GDP to double
72 / growth rate = number of years
18 = 72 / growth rate
growth rate = 72 / 18 = 4%
A group of elderly men, whose government disability benefits are the sole source of income, is approached to consider an experimental research study for their current colon cancer. The study involves more than minimal risk, but offers substantial financial incentives that are equal to two months of disability benefits. The IRB will be most concerned about the possibility of:
Answer:
Undue influence on the subjects
Explanation:
An institutional Review Board (IRB) can be said to be a type of committee that uses research ethics by reviewing the procedures (methods) to be used (proposed) for research a studies to ensure that they are ethical.
According to federal regulations of expedited review of a new, proposed study can only be used by the IRB if only the study involves no more than minimal risk and meets one of the allowable categories of expedited review specified in federal regulations. Usually, being involved in the research studies is voluntary, but if you choose to take part, you waive the right to legal redress for any research-related injuries. IRB will be most concerned about the possibility of Undue influence on the subjects is critical to the research studies.
If the economy booms, RTF, Inc., stock is expected to return 9 percent. If the economy goes into a recessionary period, then RTF is expected to only return 4 percent. The probability of a boom is 68 percent while the probability of a recession is 32 percent. What is the variance of the returns on RTF, Inc., stock
Answer:
Variance = 5.44
Explanation:
The variance of a portfolio is a measure of the deviation of the returns of the assets making up the portfolio. Using the standard deviation, the variance can be worked out.
Standard deviation is measure of the total risks of an investment. It measures the volatility in return of an investment as a result of both systematic and non-systematic risks.
Non-systematic risk includes risk that are unique to a company like poor management, legal suit against the company .
The variance would be determined as follows:
Variance = Sum of P×(R- r )^2
P- probality
R- return on each asset
r- Expected return on portfolio
r =( Wa*Ra) + (Wb*Rb)
Expected return (r) = (9% × 0.68 ) + (4% × 0.32) = 7.4 %
Outcome R (R- r )^2 P×(R- r )^2
Recession 9 2.56 1.74
Boom 4 11.56 3.70
Total 5.44
Variance = Sum of P×(R- r )^2
Variance = 5.44
You buy a stock for $55 today, and sell the stock one year later for $54, during which time a $2 dividend is paid. What is your return on this stock
Answer:
1.82%
Explanation:
Calculation for the return on the stock
Using this formula
Return=(Sales of stock - Stock bought today+Dividend)/Sales of stock
Let plug in the formula
Return = (54 - 55 + 2)/55
Return =1/55
Return = 0.0182×100
Return=1.82%
Therefore the return on the stock will be 1.82%
To arrive at an accurate balance on a bank reconciliation statement, a credit memorandum from the bank for the collection of a note and interest should be
Answer:
Must be added to the book balance.
Explanation:
The correct treatment would be to add this value to book balance because the bank has increased our bank balance by the note and interest amount. This must be accounted for as increase in the book balance because we have borrowed money and also that yearly interest income was also added to our bank checking account.
Hence it must be added to cash book balance in order to reconcile with the bank balance.
Kohler Corporation reports the following components of stockholders' equity on December 31, 2009.
Common stock—$10 par value. 100,000 shares authorized.
40,000 shares Issued and outstanding $400,000
Paid-ln capital In excess of par value, common stock . 60,000
Reamed earnings 270,000
Total stockholders 730,000
In year 2010, the following transactions affected its stockholders' equity accounts.
Jan. 1 Purchased 5,500 shares of its own stock at $15 cash per share.
Jan. 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record.
Feb. 28 Paid the dividend declared on January 5.July 6 Sold 2,063 of its treasury shares at $19 cash per share.
Aug. 22 Sold 3,437 of its treasury shares at $12 cash per share.
Sept. 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record.
Oct. 28 Paid the dividend declared on September 5.
Dec. 31 Closed the $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Required
a. Prepare journal entries to record each of these transactions for 2010.
b. Prepare a statement of retained earnings for the year ended December 31, 2010.
c. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2010.
Answer:
Kohler Corporation
a. Journal Entries:
Jan.1:
Debit Treasury Stock $55,000
Debit Paid-in Capital In Excess of par $27,500
Credit Cash Account $82,500
To record the purchase of 5,500 shares of treasury stock at $15 per share.
Jan. 5:
Debit Dividends $138,000
Credit Dividends Payable $138,000
To record the declaration of a $4 per share cash dividend on 34,500 shares.
Feb. 28:
Debit Dividends Payable $138,000
Credit Cash Account $138,000
To record the payment of dividend.
July 6:
Debit Cash Account $39,197
Credit Treasury Stock $20,630
Credit Paid-in Capital In Excess of par $18,567
To record the resale of 2,063 treasury shares at $19 per share.
Aug. 22:
Debit Cash Account $41,244
Credit Treasury Stock $34,370
Credit Paid-in Capital In Excess of par $6,874
To record the resale of 3,437 treasury shares at $12 per share.
Sept. 5:
Debit Dividends $160,000
Credit Dividends Payable $160,000
To record the declaration of a $4 per share cash dividend on 40,000 shares.
Oct. 28:
Debit Dividends Payable $160,000
Credit Cash Account $160,000
To record the payment of the cash dividends.
Dec. 31:
Debit Income Summary $408,000
Credit Retained Earnings $408,000
To close the net income to the Retained Earnings.
b. Statement of Retained Earnings for the year ended December 31, 2010:
December 31, 2009 balance $270,000
Net Income 408,000
Dividends (298,000)
December 31, 2010 balance $380,000
c. Stockholders' Equity Section of the Balance Sheet as of December 31, 2010:
Common stock—$10 par value:
100,000 shares authorized.
40,000 shares Issued and outstanding $400,000
Paid-in capital In excess of par value,
common stock 57,941
Retained earnings 380,000
Total stockholders $837,941
Explanation:
a) Data and Calculations:
Stockholders' Equity Section of the Balance Sheet as of December 31, 2009:
Common stock—$10 par value:
100,000 shares authorized.
40,000 shares Issued and outstanding $400,000
Paid-in capital In excess of par value,
common stock 60,000
Retained earnings 270,000
Total stockholders $730,000
b) Paid-in Capital In Excess of par:
December 31, 2009 balance $60,000
Treasury stock:
January 1 (27,500)
July 6 18,567
Aug. 22 6,874
December 31, 2010 balance $57,941
c) Kohler's treasury stock account is a contrary account to the common stock account. It is recorded using any of the two methods: cost method or the par value method. It is assumed that Kohler Corporation uses the par value method with the above and below par values in treasury stock transactions recorded in the Paid-in Capital In Excess of par. This is unlike the cost method that records all the treasury transactions in the Treasury Stock account at their cost effects.
In which of the following organization forms is the owners' legal responsibility for the debt of the business limited to the amount they invested in the business?
a. Cooperative
b. Sole proprietorship
c. Partnership
d. Corporation
Answer:
d. Corporation
Explanation:
The Corporation is the business form of an organization in which it has the separate legal entity from its owners. Also, there is a limited liability towards any debt that invested in the business and whenever the person think for an organization so he thinks for the long term
Here in the given situation, the corporation is the best choice as it it has the limited liability of the amount invested
Hence, the correct answer is d.
Location Score
Factor
(100 points each) Weight A B C
Convenience .15 89 78 84
Parking facilities .20 75 93 98
Display area .18 92 90 87
Shopper traffic .27 92 93 82
Operating costs .10 93 97 84
Neighborhood .10 90 96 95
1.00
a.
Using the above factor ratings, calculate the composite score for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Location Composite Score
A
B
C
b.
Determine which location alternative (A, B, or C) should be chosen on the basis of maximum composite score.
B
C
A
Answer and Explanation:
The computation of composite score for each location is shown below:-
Composite score for A is
= 0.15 × 89 + .20 × 75 + 0.18 × 92 + 0.27 × 92 + 0.10 × 93 + 0.10 × 90
= 88.05
Composite score for B is
= 0.15 × 78 + .20 × 93 + 0.18 × 90 + 0.27 × 93 + 0.10 × 97 + 0.10 × 96
= 90.91
Composite score for C is
= 0.15 × 84 + .20 × 98 + 0.18 × 87 + 0.27 × 82 + 0.10 × 84 + 0.10 × 95
= 87.90
Therefore for computing the composite score for each location we simply multiply weight with A location and in the same manner of A, B and C
b. The maximum composite score from A, B and C is B
Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs:
Fixed Cost per Month Cost per Machine-Hour
Direct materials $ 5.40
Direct labor $ 42,400
Supplies $ 0.30
Utilities $ 1,700 $ 0.25
Depreciation $ 15,200
Insurance $ 11,600
For example, utilities should be $1,700 per month plus $0.25 per machine-hour. The company expects to work 4,200 machine-hours in June. Note that the company’s direct labor is a fixed cost.
Required:
Prepare the company's planning budget for manufacturing costs for June.
Answer:
Total Manufacturing Costs is $95,680
Explanation:
Wyckam Manufacturing Inc.
Planning Budget for Manufacturing costs
For the month Ended June 30
Direct Materials (4,200 hours *$5.40) $22,680
Direct Labor Fixed $42,400
Supplies (4,200 hours * $0.25 ) $1,050
Utilities ($1,700+ 4,200 Hours * $0.25) $2,750
Depreciation Fixed $15,200
Insurance Fixed $11,600
Total Manufacturing Costs $95,680
Assume that your parents wanted to have a 170,000 saved for college by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned 6.5% per year on their investmenets.Required:a. How much would they have to save each year to reach their goal?b. If they think you will take five years instead of four to graduate to graduate and decide to have $140,000 saved just in case, how much more would they have to save each year to reach their new goal?
Answer:
a. They will have to save $5,245.28 each year to reach their goal of $170,000.
b. They will have to save $925.63 less to reach their new goal of $140,000.
Note: The answer to part b is based on the information in the question. Therefore, the correct answer is "they will have to save $925.63 less" not "save more" as suggested in the question. Kindly confirm this from your teacher.
Explanation:
a. How much would they have to save each year to reach their goal?
Since the saving started on your first birthday to have $170,000 saved, it implies the saving will be on your every birthday for 18 years. Therefore, the relevant formula to use to determine this is the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:
FV = M * {[(1 + r)^n - 1] / r} ................................. (1)
Where,
FV = Future value of the amount after your 18th birthday = $170,000
M = Yearly saving to have $170,000 = ?
r = interest rate = 6.5%, 0.065
n = number of years this savings will be made = 18
Substituting the values into equation (1) and solve for M, we have:
$170,000 = M * {[(1 + 0.065)^18 - 1] / 0.065}
$170,000 = M * 32.4100673759666
M = $170,000 / 32.4100673759666
M = $5,245.28
Therefore, they will have to save $5,245.28 each year to reach their goal of $170,000.
b. If they think you will take five years instead of four to graduate to graduate and decide to have $140,000 saved just in case, how much more would they have to save each year to reach their new goal?
First, we have to calculate how much they will save each year, by also using the Future Value (FV) for calculating an Ordinary Annuity as follows:
FVn = Mn * {[(1 + r)^n - 1] / r} ................................. (1)
Where,
FV1 = New future value of the amount after your 18th birthday = $140,000
M1 = New yearly saving to have $140,000 = ?
r = interest rate = 6.5%, 0.065
n = number of years this savings will be made = 18
Substituting the values into equation (1) and solve for M1, we have:
$140,000 = M1 * {[(1 + 0.065)^18 - 1] / 0.065}
$140,000 = M1 * 32.4100673759666
M1 = $140,000 / 32.4100673759666
M1 = $4,319.65
Therefore, they will have to save $4,319.65 each year to reach their goal of $140,000.
To obtain difference in yearly savings, we have:
Difference in yealy saving = M - M1 = $5,245.28 - $4,319.65 = $925.63
Since $5,245.28 each year to reach their goal of $170,000 is greater than $4,319.65 each year to reach their goal of $140,000, it therefore implies that they will have to save $925.63 less to reach their new goal of $140,000.
The Sprint vs. Verizon ads that compare the features and pricing of the two networks are examples of competitive advertising. True False
Answer:
True
Explanation:
They are trying to win over customers by comparing each others features in a competition
Competitive advertising is demonstrated by the Sprint vs. Verizon adverts, which compare the functionality and pricing of the two networks. So, it is a true statement.
What is competitive advertising?Competitive advertising is the act of showcasing or promoting one's product in comparison to the product of another company.
This form of marketing can be used to target customers who are devoted to the other brand, prompting them to reassess their purchasing patterns.
The three types of competitive advertising are:
ComparativeReminderReinforcementFor more information about competitive advertising, refer below
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On May 1, 2010, Ziek Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Ziek had 100,000 shares of $1 par value common stock issued and outstanding. The fair value of Ziek 's common stock was $20 per share on May 1, 2010. As a result of this stock dividend, Ziek's total stockholders' equity:_________
Answer: did not change
Explanation:
From the question, we are informed that On May 1, 2010, Ziek Corp. declared and issued a 10% common stock dividend and that prior to this dividend, Ziek had 100,000 shares of $1 par value common stock issued and outstanding. We are further informed that the fair value of Ziek 's common stock was $20 per share on May 1, 2010.
As a result of this stock dividend, Ziek's total stockholders' equity did not change. The accounts involved belong to the stockholders' equity, therefore, there will be no change on the total stockholders equity.
Irene Watts and John Lyon are forming a partnership to which Watts will devote one-half time and Lyon will devote full time. They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their initial capital investments, which they have agreed will be $42,000 for Watts and $63,000 for Lyon; (b) in proportion to the time devoted to the business; (c) a salary allowance of $6,000 per month to Lyon and the balance in accordance with the ratio of their initial capital investments; or (d) a salary allowance of $6,000 per month to Lyon, 10% interest on their initial capital investments, and the balance shared equally. The partners expect the business to perform as follows: year 1, $36,000 net loss; year 2, $90,000 net income; and year 3, $150,000 net income. Required: Complete the tables, one for each of the first three years, by showing how to allocate partnership income or loss to the partners under each of the four plans being considered. (Do not round intermediate calculations. Round final answers to the nearest whole dollar. Enter all allowances as positive values. Enter losses as negative values.)
Answer:
Irene Watts and John LyonAllocation of Partnership Income or Loss under these plans:(a) in the ratio of their initial capital investments, which they have agreed will be $42,000 for Watts and $63,000 for Lyon:
Year 1 Year 2 Year 3
Net Income / (Loss) ($36,000) $90,000 $150,000
Watts 40% (14,400) 36,000 60,000
Lyon 60% (21,600) 54,000 90,000
(b) in proportion to the time devoted to the business:
Year 1 Year 2 Year 3
Net Income / (Loss) ($36,000) $90,000 $150,000
Watts 1/3 (12,000) 30,000 50,000
Lyon 2/3 (24,000) 60,000 100,000
(c) a salary allowance of $6,000 per month to Lyon and the balance in accordance with the ratio of their initial capital investments:
Year 1 Year 2 Year 3
Net Income / (Loss) ($36,000) $90,000 $150,000
Less Salary (72,000) (72,000) (72,000)
Distributable Income/(Loss) (108,000) $18,000 $78,000
Watts 40% ($43,200) $7,200 $31,200
Lyon:
Salary 72,000 72,000 72,000
Distributable 60% (64,800) 10,800 46,800
Net share $7,200 $82,800 $118,800
(d) a salary allowance of $6,000 per month to Lyon, 10% interest on their initial capital investments, and the balance shared equally:
Year 1 Year 2 Year 3
Net Income / (Loss) ($36,000) $90,000 $150,000
Less Salary (72,000) (72,000) (72,000)
Less Interest on Capital (10,500) (10,500) (10,500)
Distributable Income/(Loss) (118,500) 7,500 67,500
Watts:
Interest on Capital 4,200 4,200 4,200
Distributable income 40% (47,400) 3,000 27,000
Share of profit or loss ($45,400) $7,200 $31,200
Lyon:
Salary 72,000 72,000 72,000
Interest on Capital 6,300 6,300 6,300
Income/Loss 60% (71,100) 4,500 40,500
Net share $7,200 $82,800 $118,800
Explanation:
a) Data and Calculations:
Net Income of Loss:
Year 1 = $36,000 loss
Year 2 = $90,000
Year 3 = $150,000
Sharing plans:
a) Capital:
Watts $42,000 = $42,000/$105,000 = 40%
Lyon $63,000 = $63,000/$105,000 = 60%
b) Time devotion:
Watts 1 = 1/3 or 33%
Lyon 2 = 2/3 or 67%
c) a salary allowance of $6,000 per month to Lyon and the balance in accordance with the ratio of their initial capital investments:
Distributable Income / Loss:
Year 1 = ($36,000) - $72,000 = ($108,000)
Year 2 = $90,000 - $72,000 = $18,000
Year 3 = $150,000 - $72,000 = $78,000
Match the product cost variance with the manager most probably responsible. Some answers may be used more than once. Some answers may not be used.
1. Variable overhead cost variance
2. Direct matierals efficiency variance
3. Direct labor cost variance
4. Fixed overhead cost variance
5. Direct materials cost variance
CHOICES:
a. Human resources
b. Purchasing
c. Production
Answer:
1 = A
2 = C
3 = C
4 = C
5 = B
Explanation:
This would actually depend on how the organization is set up and what type of business it is, but I believe these would be the most likely centers responsible for the difference