Answer:
$20,000
Explanation:
Calculation for the maximum permitted contribution of Keogh Plan.
Based on the information given the maximum permitted contribution for Keogh Plan will be based only on their personal service income and wont be based on their investment income.
Based on this let find the maximum permitted contribution for Keogh Plan
$100,000 *20% Effective contribution rate = $20,000
Therefore their maximum permitted contribution is: $20,000
The acid-test (quick) ratio Group of answer choices is used to quickly determine a company's solvency and long-term debt paying ability. relates cash, short-term investments, and net receivables to current liabilities. is calculated by taking one item from the income statement and one item from the balance sheet. is the same as the current ratio except it is rounded to the nearest whole percent.
Answer:
relates cash, short-term investments, and net receivables to current liabilities
Explanation:
The quick ratio is am example of a liquidity ratio. Liquidity ratios measure a company's ability to meet its short term obligations
Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.22 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $36.21 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $83.33 per order. (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Ericson Wedding Haupt Wedding Number of reception guests 72 191 Number of tiers on the cake 6 4 Cost of purchased decorations for cake $ 21.45 $ 77.65 Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down, what amount would the company have to charge for the Ericson wedding cake to just break even
Answer:
$409.88
Explanation:
The computation of the amount that the company have to charge for break even is shown below:
Particulars Ericson Wedding Rate Amount
Guest 72 $1.22 $87.84
Tiers 6 $36.21 $217.26
Orders 1 $83.33 $83.33
Decoration 1 $21.45 $21.45
Total $409.88
We simply applied the number of units with the rate so that the final amount could come
The purpose of a buffer statement in a negative message is to ________. a. ensure that the company avoids legal liability. b. reduce the reader's shock or pain related to the bad news. c. inform the reader of the reasons for the bad news. d. explain company policy regarding the bad-news message.
Answer:
The correct answer is: b. reduce the reader's shock or pain related to the bad news.
Explanation:
Communication is a fundamental tool that promotes synergy for a company to achieve its objectives and goals. Through this process, it is possible to pass on essential information, integrate employees, strengthen the organization's reputation, promote a good relationship with the internal and external environment, etc.
However, many times companies also need to transmit some bad news, so it is important that there are resources and tools so that communication is carried out in a clear and effective manner without causing any type of situation that alarms the recipients of the message, therefore the buffer statement is used at the beginning of a letter or commercial communication to reduce the impact of bad news, helping to prepare the reader for what will be communicated, explaining the context of the message in a more neutral and not so alarming way.
Semans is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (X) is 127 units. The following is the BOM in indented form:
ITEM DESCRIPTION USAGE
X Bracket assembly 1
A Wall board 5
B Hanger subassembly 2
D Hanger casting 3
E Ceramic knob 2
C Rivet head screw 3
F Metal tong 4
G Plastic cap 1
Below is a table indicating current inventory levels:
Item X A B C D E F G
Inventory 27 19 74 23 201 262 975 100
b. What are the net requirements for each item? (Leave no cells blank - be certain to enter "0" wherever required.)
Item Net Requirements
X
A
B
C
D
E
F
G
Answer and Explanation:
The computation of net requirements for each item is shown below:-
Net requirement = Gross requirement - Inventory
To compute the Gross requirement we will use the following formulas:
A = 5 × Net requirement of X
= 5 × 127
= 635
B = 2 × Net requirement of X
= 2 × 127
= 254
C = 3 × Net requirement of X
= 3 × 127
= 381
D = 3 × Net requirement of B
= 3 × 180
= 540
E = 2 × Net requirement of B
= 2 × 180
= 360
F = 4 × Net requirement of C
= 4 × 358
= 1,432
G = 1 × Net requirement of C
= 1 × 358
= 358
Item Gross Requirement Inventory Net Requirement
X 127 1 127
A 635 19 616
B 254 74 180
C 381 23 358
D 540 201 339
E 360 262 98
F 1,432 975 457
G 358 100 258
Therefore we have applied the net requirement formula.
A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include:
Answer:
A debit to Land for $12,000
Explanation:
The entry to record in this transaction include a debit to Land for $12,000
Particulars Debit Credit
Land $84,000
Common stock $12,000
(6,000 * $2)
Paid in capital in excess $72,000
of par, common stock
A stock has an expected return of 15.0 percent, its beta is 0.90, and the risk-free rate is 5.3 percent. What must the expected return on the market be
Answer:
16.07%
Explanation:
The computation of the expected return on the market is shown below
As we know that
Expected Return on stock = Risk free return + beta ( Expected Market Rate of Return - Risk free return )
15 % = 5.3% + 0.90 × (Expected Market Rate of Return - 5.3%)
15 % - 5.3% ÷ 0.90 = Expected Market Rate of Return - 5.3%
10.77% = Expected Market Rate of Return - 5.3 %
So, expected market rate of return is
= 10.77 + 5.3%
= 16.07%
We simply applied the above formula
Blue Sky Drone Company has a total asset turnover ratio of 3.50x, net annual sales of $25 million, and operating expenses of $11 million (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $2.50 million on which it pays a 7% interest rate. To analyze a company’s financial leverage situation, you need to measure the firm’s debt management ratios. Based on the preceding information, what are the values for Blue Sky Drone’s debt management ratios?
Answer:
The values for Blue Sky Drone’s debt management ratio is 0.35
Explanation:
In order to calculate the values for Blue Sky Drone’s debt management ratios we would have to make the following calculation:
debt management ratio=Total Debt / Total Assets
According to the given we have that it reported total debt of $2.50 million.
To calculate the total assets we would have to use the following formula:
Total Asset Turnover Ratio = Net Sales / Total Assets
3.50=$25,000,000/Total Assets
Total Assets=$25,000,000/3.50
Total Assets=$7,142,857
Therefore, debt management ratio=$2,500,000/$7,142,857
debt management ratio=0.35
The values for Blue Sky Drone’s debt management ratio is 0.35
A seller lists property with a multimillion-dollar broker. The broker's agreement calls for him to enter the listing into the MLS within three working days. On the second day, the broker shows the property to a prospective buyer, who loves it. The buyer is leaving town the next day but will be back in one week to purchase it if it is still on the market. The broker wants to double his commission by selling his own listing, so he withholds the information from the MLS for 10 days. Based on this information, the broker ______________.
Answer: B) may be liable to the seller for violating duties required by the listing agreement.
Explanation:
The Multiple Listing Service (MLS) is a database that allows brokers to cooperate in finding buyers for homes. They list the properties for sale and if other brokers know people who need such a house they will reach out and buy it. The listing broker and the selling broker will then share commissions.
This is what the broker was trying to avoid by withholding the information from the MLS.
However, the broker is in violation of the listing agreement which stated that he should post it on the MLS within 3 working days and as such there is a very real chance that he is liable to the seller for this violation.
A U.S.-based company, Global Products Inc., has wholly owned subsidiaries across the world. Global Products Inc. sells products linked to major holidays in each country.
The president and board members of Global Products Inc. believe that the managers of their wholly owned country-level subsidiaries are best motivated and rewarded with both annual salaries and annual bonuses. The bonuses are calculated as a predetermined percentage of pretax annual income.
Señora Larza, the president of Global Products of Mexico, has worked hard this year to make her Mexican subsidiary profitable. She is looking forward to receiving her annual bonus, which is calculated as a predetermined percentage (15 percent) of this year's pretax annual income earned by Global Products of Mexico. A condensed income statement for Global Products of Mexico for the most recent year is as follows (amounts in thousands of pesos).
Sales MXN 25,000
Expenses 23,000
Pretax Income MXN 2,000
The U.S. headquarters financial group translates each of its wholly owned subsidiary's results into U.S. dollars for evaluation. After translating the Mexican pesos income statement into U.S. dollars, the condensed income statement for Global Products of Mexico is as follows (amounts in thousands of dollars).
Sales US $7,000
Expenses 8,100
Pretax Income US $(1,100)
Required:
A1. Calculate the bonus amount based on (1) the Mexican peso-based Pretax Income and (2) the U.S. dollar-based Pretax Income.
A2. Translate the peso-based bonus to U.S. dollars using a current exchange rate.
B. Calculate the average exchange rate used to translate the Mexican pesos income statement into the U.S. dollar statement for the categories: (1) Sales and (2) Expenses.
A1. Bonus on mexican peso-based Pretax Income
Bonus U.S. dollar-based Pretax Income
A2. U.S. dollars
B. Average exchange rate for sales pesos
Average exchange rate for expenses pesos
Answer:
Global Products Inc.
Global Products of Mexico
Señora Larza
A1. Bonus on mexican peso-based Pretax Income
= MXN 2,000 x 15% = MXN 300
Bonus U.S. dollar-based Pretax Income
= -$1,100 x 15% = -$165, there is no U.S. dollar-based bonus
A2. U.S. dollars
Current Exchange rate = US$1 = MXN 20.0369 (July 18, 2020)
MXN 2,000 = MXN 2,000/MXN 20.0369 = $98.19
B. Average exchange rate for sales pesos
Sales MXN 25,000 = US $7,000,
The exchange rate = US $1 = MXN 3.5714 (MXN 25,000/ US $7,000)
Average exchange rate for expenses pesos
Expenses MXN 23,000 = US $ 8,100
The exchange rate = US $1 = MXN 2.8395 (MXN 23,000/US $ 8,100)
Explanation:
Señora Larza, the president of Global Products of Mexico seems to have a bonus in Mexican peso, but when the bonus pre-tax income is translated into US dollars, the bonus turns negative just like the pre-tax income was negative. This implies that since the U.S. headquarters translates each subsidiary's results into U.S. dollars for evaluation, Señora Larza did not qualify for bonus payment for the current year.
The disparity is caused by the different exchange rates for translating the sales revenue and the expenses. Exchange rates are the rates at which currencies exchange their values for international account settlements.
2016
Mar. 1 Borrowed $ 240,000 from Naples Bank. The twelve-year, 9% note requires payments due annually, on March 1. Each payment consists of $ 20,000 principal plus one year's interest.
Dec. 1 Mortgaged the warehouse for $ 400 comma 000 cash with Sage Bank. The mortgage requires monthly payments of $ 5,000. The interest rate on the note is 11% and accrues monthly. The first payment is due on January 1, 2017.
31 Recorded interest accrued on the Sage Bank note.
31 Recorded interest accrued on the Naples Bank note. 2017
Jan. 1 Paid Sage Bank monthly mortgage payment.
Feb. 1 Paid Sage Bank monthly mortgage payment.
Mar. 1 Paid Sage Bank monthly mortgage payment.
1 Paid first installment on note due to Naples Bank.
Required:
Journalize be transactions in me Green Pharmacies general journal.
Answer:
Green Pharmacies
General journal
Mar. 1:
Debit Cash Account $240,000
Credit Bank 9% Notes Payable (Naples Bank) $240,000
To record the issue of notes payable.
Dec. 1
Debit Warehouse Mortgage $400,000
Credit Warehouse $400,000
To record the transfer of the house to a mortgage bank.
Debit Cash Account $400,000
Credit Mortgage Payable (Sage Bank) $400,000
To record the receipt of cash from the mortgage.
Dec. 31:
Debit Interest on Mortgage Note Expense $3,667
Credit Interest on Mortgage Note Payable $3,667
To record the interest due for the month.
Dec. 31:
Debit Interest on Bank Note Expense $18,000
Credit Interest on Bank Notes Payable $18,000
To accrue interest for 10 months.
Jan. 1:
Debit Mortgage Payable (Sage Bank) $5,000
Debit Interest on Mortgage Note Payable $3,667
Credit Cash Account $8,667
To record monthly repayment plus interest.
Jan. 31:
Debit Interest on Mortgage Note Expense $3,667
Credit Interest on Mortgage Note Payable $3,667
To record the interest due for the month.
Feb. 1:
Debit Mortgage Payable (Sage Bank) $5,000
Debit Interest on Mortgage Note Payable $3,667
Credit Cash Account $8,667
To record monthly repayment plus interest.
Feb 28:
Debit Interest on Bank Note Expense $3,600
Credit Interest on Bank Notes Payable $3,600
To accrue interest for 2 months.
Mar. 1
Debit Mortgage Payable (Sage Bank) $5,000
Debit Interest on Mortgage Note Payable $3,667
Credit Cash Account $8,667
To record monthly repayment plus interest.
Mar. 1:
Debit Notes Payable (Naples Bank) $20,000
Debit Interest on Bank Notes Payable $21,600
Credit Cash Account $41,600
To record the first repayment of principal and interest.
Explanation:
Journals are initial records made in an accounting book. It shows the debit and credit aspects of each business transaction.
Ryan works at a community college and the college requires all employees to contribute to a pension fund. At this time, he is not too worried about the safety of this contribution because
Answer:
pension funds usually make conservative investments
Explanation:
Pension funds are pools of investment that are used to prepare an employee for retirement. Pension contributions are made either by the employer or the employee.
These funds are collected and invested by Pension Fund Administrators (PFA).
Primarily pension funds are invested in stocks and bonds.
The aim of the investments is to make low risk profit on the funds. So Ryan is not worried about the safety of his pension contributions because they are put in conservative investments that have low risk of loss.
George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufacturing overhead cost $235,000 Actual manufacturing overhead cost $244,200 Estimated machine hours 20,300 Actual machine hours 22,700 The estimates were made as of the beginning of the year, while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to
Answer:
$11.58 per machine hour
Explanation:
Given that: Estimated Manufacturing overhead cost =$235,000, Actual manufacturing overhead cost = $244,200 Estimated machine hours = 20,300, Actual machine hours= 22,700
The predetermined manufacturing overhead rate per machine hour = Estimated manufacturing overhead cost / Estimated machine hours
= $235,000 / 20,300
= $11.5763
= $11.58 per machine hour
1. The roles of money Brian is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Brian decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Medium of Exchange Unit of Account Store of Value Brian can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. Brian accumulates money in his savings account for future purchases. Brian buys his lunch with a $10 bill.
Answer:
Brian can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much.
unit of accountBrian accumulates money in his savings account for future purchases.
Store of valueBrian buys his lunch with a $10 bill.
Medium of exchangeExplanation:
Money's four functions are:
Medium of exchange = you can use money to purchase or sells goods and services. Unit of account = money helps us to understand the relative value of goods and services, since the higher the price, the higher the value of a good or service is. Store of value = you can save money for future useStandard of deferred payment = money allows people to take or hand out loans that will be repaid in the futureGather secondary data by reading what others have experienced and observed. You should begin nearly every research project by researching secondary sources to gather information that has already been written about your topic. What kind of data can books provide?
A. In-depth historical data
B. Up-to-date information
C. Electronic indexes
Answer:
A. In-depth historical data
Explanation:
When starting a new research project you should always gather in-depth historical data. This form of data will provide you with a wide array of information that other individuals have already gathered and documented regarding the specific topic that you are currently researching. Aside from providing you with valuable information it also provides you with a guide of what sub-topics previous researchers may have missed, which you can then research yourself.
g If the U.S. real exchange rate appreciates, U.S. exports a. increase and U.S. imports decrease. b. decrease and U.S. imports increase. c. and U.S. imports both increase. d. and U.S. imports both decrease.
Answer:
The answer is B.
Explanation:
If dollar appreciates, imports become cheaper(decrease), meaning dollar will buy more of another foreign currency
because Americans will find foreign goods less expensive because they have to spend less for those goods and services in dollar.
In the same vein, exports rise(increase) or less profitable, causing the domestic demand to fall because foreigners will find American goods more expensive because they have to spend more for those goods and services in dollar
Larkspur Appliance Co. manufactures low-price, no frills appliances that are in great demand for rental units. Pricing and cost information on Larkspur main products are as follows. Item Standalone Selling Price (Cost) Refrigerator $500 ($260 ) Range 570(270 ) Stackable washer/dryer unit 690(400 ) Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,800.The bundle price includes delivery and installation. Larkspur also provides installation (not a separate performance obligation). Respond to the requirements related to the following independent revenue arrangements for Larkspur Appliance Co. On June 1, 2017, Larkspur sold 100 washer/dryer units without installation to Laplante Rentals for $69,000. Laplante is a newer customer and is unsure how this product will work in its older rental units. Larkspur offers a 60-day return privilege and estimates, based on prior experience with sales on this product, 4% of the units will be returned. Prepare the journal entries for the sale and related cost of goods sold on June 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer:
The journal entries to record the sale on June 1 are:
June 1, 2017, 100 units of washer/dryer to Laplante Rentals
Dr Cash 69,000
Cr Sales revenue 69,000
Dr Cost of goods sold 40,000
Cr Inventory 40,000
If the next question asks to record the return privilege and estimates, it should be recorded as both an asset (estimated returns inventory) and a liability (customer refunds payable).
Risk and Return. Suppose that the risk premium on stocks and other securities did, in fact, rise with total risk (i.e., the variability of returns) rather than just market risk. Explain how investors could exploit the situation to create portfolios with high expected rates of return but low levels of risk. (LO12-2)
Answer:
The overview of the given scenario is described in the explanation segment below.
Explanation:
Diversification could never eradicate the systematic risk. It's indeed primarily even though all securities shift somewhat in unison (a significant part of their volatility is purposeful) also that diversified stock strategies remain volatile. Additionally, if I am a thing that separates by purchasing a proportion throughout the S & P indicator, I would also have indeed very variable returns because the global economy as a whole has been fluctuating widely.The unsystematic risk seems to be the volatility in share markets arising through factors unique to something like an individual's abilities. The risk involved with this kind of volatility is essentially the form whereby diversification could increasing.The entire premise of portfolio selection would be that, to both the degree that shares don't shift in unison all of the occasions, variations throughout the performance from every other given sector appear to have been wiped clean or softened out by additional differences in contributions from several other investments.During the summer months Terry makes and sells necklaces on the beach. Last summer he sold the necklaces for 10$ each and his sales averaged 20 per day. When he increased the price by , he found that the average decreased by two sales per day.(a) Find the demand function, assuming that it is linear.(b) If the material for each necklace costs Terry 6$ , what should the selling price be to maximize his profit?
Answer:
$13.00
Explanation:
S10-5 (book/static) On February 28, 2017, Rural Tech Support purchased a copy machine for $ 53 comma 400. Rural Tech Support expects the machine to last for six years and to have a residual value of $ 3 comma 000. Compute depreciation expense on the machine for the year ended December 31, 2017, using the straight-line method.
Answer:
$7,000
Explanation:
depreciation expense using straight line method = (purchase cost - salvage value) / useful life = ($53,400 - $3,000) / 6 years ) = $8,400 per year
since the machine was used for 10 months, the depreciation expense for 2017 = $8,400 x 10/12 = $7,000
the adjusting journal entry should be:
December 31, 2017, depreciation expense
Dr Depreciation expense 7,000
Cr Accumulated depreciation - copy machine 7,000
Darwin is a 60-year-old software engineer for Compuswerve, Inc. Recently, the company went through a reorganization process meant to revamp the business and the work it does. The directors want to rework the company as a fresh, hip business with cutting-edge knowledge from young, creative-minded employees. Obviously, Darwin doesn’t fit into the directors’ vision, so the managers wish to replace him. Sure enough, a few weeks later Compuswerve hires some new employees, and Darwin is offered a severance plan and dismissed.
1. Which of the following, if true, would legally support the company’s decision to fire and replace Darwin? Check all that apply.
a. if the company had fewer than 20 employees
b. if Darwin needed a reasonable accommodation to perform his job due to a disability
c. if Darwin planned to retire in less than five years
d. if Darwin was unable to perform the essential functions of his job
e. if Darwin had another job offer elsewhere
f. if the company was a private (non-governmental) organization
g. if there were more highly skilled workers in the organization who could take his place
2. Which law prevents employees like Darwin from discrimination in employment?
a. ADEA
b. Title VII
c. Affirmative action
d. ADA
3. Are the company’s actions permissible, considering its mission and vision?
a. No, because Darwin was treated less favorably than younger employees based solely on his age.
b. Yes, because age is not a protected class in employment law.
c. No, because Darwin was not given compensation or allowed adequate time to find another job.
d. Yes, because the company is private and therefore has the right to hire or fire whomever they want to.
Answer:
Darwin and Compuserve, Inc.
1. d. if Darwin was unable to perform the essential functions of his job
e. if Darwin had another job offer elsewhere
2. b. Title VII
3. a. No, because Darwin was treated less favorably than younger employees based solely on his age.
Explanation:
Title VII of the Civil Rights Act of 1964 is a federal law that protects employees against discrimination based on certain specified characteristics: race, color, national origin, sex, and religion. Under Title VII, an employer may not discriminate with regard to any term, condition, or privilege of employment.
Federal employment laws prohibit discrimination of persons who are over 40 years.
Answer:
2. ADEA
Explanation:
Age
Discrimination
Employment
Act
of 1967, forbids discrimination to people/employees who are age 40 or older.
Mars Inc. produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should
Answer:
It should continue the production in the short-run.
Explanation:
Given the unit produced by Mars Inc. = 100000 boxes.
The selling price of boxes = $4 per box.
The variable costs = $3 per box.
The fixed costs = $150000
The total sales revenue = number of boxes × selling price
= 100000 × 4
= $ 400000
In the short run, the firm should continue its production because it still covers the variable costs.
Suppose that ABC overstates its ending inventory for 2018. What effect will this have on the reported amount of cost of goods sold for 2018?
A. Cannot be determined given the information provided.
B. Have no effect on cost of goods sold.
C. Understate cost of goods sold.
D. Overstate cost of goods sold.
The adjusting entry required when amounts previously recorded as deferred revenues are earned by providing goods or services to customers includes:_______
A) A debit to an asset.
B) A debit to a liability.
C) A credit to a liability.
D) A credit to an asset.
Sales revenue $350,000
Accounts receivable $280,000
Ending inventory $230,000
Cost of goods sold $180,000
Sales returns $50,000
Sales discount $20,000
Given the information in the above table, what is the company's gross profit?
A) $100,000.
B) $50,000.
C) $170,000.
D) $280,000.
If your employer declares bankruptcy, this can have a major effect on your pension if you are in a
A) Either plan
B) Defined Benefit Plan
C) Neither Plan
D) Defined Contribution Plan
Answer:
Suppose that ABC overstates its ending inventory for 2018. What effect will this have on the reported amount of cost of goods sold for 2018?
C. Understate cost of goods sold.Cost of goods sold = beginning inventory + purchases during the period - ending inventory. If ending inventory is overstated, then COGS are understated.
The adjusting entry required when amounts previously recorded as deferred revenues are earned by providing goods or services to customers includes:_______
B) A debit to a liability.Deferred revenues are liabilities with credit balances, therefore, when they are actually earned, they must decrease with a debit.
Sales revenue $350,000
Accounts receivable $280,000
Ending inventory $230,000
Cost of goods sold $180,000
Sales returns $50,000
Sales discount $20,000
Given the information in the above table, what is the company's gross profit?
A) $100,000.Gross profit = net sales revenue - COGS
net sales revenue = total sales revenue - sales returns - sales discounts
If your employer declares bankruptcy, this can have a major effect on your pension if you are in a
C) Neither PlanAll types of pension plans are currently protected and only a small portion of very high income plans are affected in case of bankruptcy (generally plans that hold over $1 million or those plans with contributions higher than $54,000 per year).
Bruno Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $430,300. The company believes that with this new machine, it will improve productivity and increase quality, resulting in an increase in net annual cash flows of $98,800 for the next 6 years. Management requires a 10% rate of return on all new investments
Required:
a. Calculate the internal rate of return on this new machine. Should the investment be accepted?
b. Calculate cash payback period, internal rate of return, and apply decision rules.
Answer:
10%
Yes
4.36 years
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = $-430,300
Cash flow each year from year one to six = $98,800
IRR =10%
The project should be accepted because the IRR is equal to the required rate of return
Cash payback calculates how long it takes for the amount invested in a project to be recovered from the cumulative cash flow.
Cash payback = amount invested / cash flow =
$430,300 / $98,800 = 4.36 years
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
In the "Input Analysis" section of the spreadsheet model, calculate the correlations between the sales of each type of product and event attendance. Use appropriate ranges from the "Past Event" worksheet for your calculations.
Answer:
The correct formula will be :
=average(past event tab then col in that tab) use this for att, programs, food, and merch
=AVERAGE('Past Events'!C4:C103)
Explanation:
To calculate the correlation between the sales of each kind of product and event attendance, from the Input analysis part of the spreadsheet model.
According to the information provided, in the targeted cell, we will use formula
=Average(data cells)
and for other part of the question is to calculate sales. For this part we can simply use the sum formula, first, we will sum the sales for a single item in past events column than at the end of the past column.
Thus, the correct formula will be :
=average(past event tab then col in that tab) use this for att, programs, food, and merch
=AVERAGE('Past Events'!C4:C103)
Concord Company provides for bad debt expense at the rate of 2% of accounts receivable. The following data are available for 2018: Allowance for doubtful accounts, 1/1/18 (Cr.) $ 12700 Accounts written off as uncollectible during 2018 9200 Ending accounts receivable 1199000 The Allowance for Doubtful Accounts balance at December 31, 2018, should be $3500.00. $20480.00. $27480.00. $23980.00.
Answer:
$27,480
Explanation:
Calculation for Allowance for Doubtful Accounts balance at December 31, 2018
Using this formula
Allowance for Doubtful Accounts=( Ending accounts receivable ×Bad debt expense rate ) + (Allowance for doubtful accounts -Accounts written off as uncollectible)
Let plug in the formula
Allowance for Doubtful Accounts=(1,199,000 ×2%) +(12,700-9,200)
Allowance for Doubtful Accounts =23,980+3,500
Allowance for Doubtful Accounts= $27,480
Therefore the Allowance for Doubtful Accounts balance at December 31, 2018 should be $27,480
A recent survey of 280 small firms (with annual revenue less than $12 million) asked whether an increase in the minimum wage would cause the firm to decrease capital spending. Possible responses to the survey question were: "Yes," "No," or "Don’t Know." This data is best classified as
Answer:
nominal scale
Explanation:
nominal scale are scales that are used to assign events into discrete classifications.
Nominal scales have no order and there is no means to measure the distance between the possible responses. they are just classifications.
When there are lower prices, but waiting lines customers will often be drawn to the competing location of a Monopolistic Competitor with greater customer service and better atmosphere.
A. True
B. False
Footsteps Co. has a bond outstanding with a coupon rate of 5.4 percent and annual payments. The bond currently sells for $1,007.49, matures in 18 years, and has a par value of $1,000. What is the YTM of the bond
Answer: 5.33%
Explanation:
Use a financial calculator to get this faster.
On the calculator input the following.
FV = 1,000 because when it matures in 18 years it will be worth this
PV = -1007.49 as that is the current value. Should be in negative.
PMT = 54 because the coupon payments are 5.4% from the par of $1,000 which is $54.
N = 18
Click compute / CPT and then click I/Y.
You should get a YTM of 5.33%.
Huprey Co. is the defendant in the following legal claims. For each of following claims, does Humphrey (a) record a liability, (b) disclose in notes, or (c) have no disclosure. 1. Humphrey can reasonably estimate that a pending lawsuit will result in damages of $1,280,000it is probable that Huprey will lose the case. Have no disclosure. Disclose in notes. Record a liability. 2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable. Record a liability. Disclose in notes. Have no disclosure. 3. Huprey is being sued for damages of $2,400,000. It is very unlikely (remote) that Huprey will lose the case. Disclose in notes. Record a liability. Have no disclosure.
Answer:
1. Record a liability.
2. Disclose in notes.
3. Disclose in notes.
Explanation:
The issue here relates to a Contingent Liability which is a provision that is recorded in the books as a liability if there is a likelihood that the firm will incur it in future. This is usually done for law suits.
The general rule is: Record a liability if the loss is probable and estimable.
If a loss is not probable, disclose it in the notes.
If a loss is not estimable, disclose it in the notes.
1. Loss is both estimable and it is probable that Humphrey will lose the case. It should be recorded as a liability.
2. It is probable that Humphrey will lose the case however, loss is not estimable. Disclose in the notes.
3. It is not probable that Humphrey will lose the case. Disclose in the notes.
Hi Abigail,
As you may know, Macy’s is in a battle with Abercrombie & Fitch for sales among 15- to 20-year-old female customers. We are relocating our Junior department to the basement of our store to give young people a separate entrance and place to call their own. We want to beat Abercrombie & Fitch, and we’ll all need to work together to make that happen.
Thanks for your hard work. Together we can do this!
Best regards,
William
1. Do you think some kind of reward would be appropriate to motivate Abigail? If so, what should it be?
a. A choice of work assignments
b. Two days off with pay
c. A $200 bonus
2. What sentences should I use to increase Abigail’s expectancy P&O expectancy?
a. You asked for new promotional posters last week—I’ve gotten those for you.
b. Any employee who increases sales by 10% this month will receive a reward.
c. Your attitude is critical in this effort—I know you can do it.
3. Which of the following sentences should I use to increase Abigail’s E&P expectancy?
a. Any employee who increases sales by 10% this month will receive a reward.
b. You can choose your own reward if you hit your goals.
c. You asked for new promotional posters last week—I’ve gotten those for you.
Answer:
c b a
Explanation:
1. c
You need to make the person feel good about their hard work.
2. b
They make the right point.
3. a
It pretty much makes the most sense as you don't want the employ to have too much power.
For employee encouragement Macy’s shall do the following:
1. Reward to Abigail:
a) A choice of work assignments
2. Performance & outcome expectancy:
c) Your attitude is critical in this effort, I know you can do it.
3. Effort & Performance Expectancy:
a) Any employee who increases sales by 10% this month will receive a reward.
What do you mean by Performance and Outcome (P&O) Expectancy?
Performance Expectancy:
The degree to which a person expects that employing a system will enable him or her to improve their performance at work is known as performance expectancy (PE).
Outcome Expectancy:
Expected results of a conduct, whether favorable or bad, are referred to as outcome expectations.
Expectancy theory consists of three parts:
Effort Performance ⇒ Result ⇒ RewardoutcomeTherefore Macy should focus on employee motivation by combining effort, performance & outcome element under agency theory.
To know more about Performance & Outcome (P&O) Expectancy refer:
https://brainly.com/question/14914100
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