Answer:
High-tech firms are hiring expensive, sophisticated people who are in high demand compared to fast food franchises and treat them better to avoid losing them to other companies
Explanation:
High-tech firms are hiring expensive, sophisticated people who are in high demand. This brings about a better treatment of their employees because if they do not offer these amenities to employees, they would become employees of other high-tech companies. Individuals with low skill levels do not get high salaries or benefits. They are not in as high demand as highly skilled workers. It is efficient, but many would argue that it is not fair.
The income elasticity for most staple foods, such as wheat, is known to be between zero and one. As incomes rise over time, what will happen to the demand for wheat? What will happen to the quantity of wheat purchased by consumers? What will happen to the percentage of their budgets that consumers spend on wheat? All other things equal, are farmers likely to be relatively better off or relatively worse off in periods of rising incomes?
Answer and Explanation:
a. As it is given that the income elasticity of wheat is between zero and one that reflects inelastic and less than unity condition.
So in this, when the income is increased the demand for wheat is also increased but it would be less proportionally
And, the percentage increase in demand for wheat is lower than the increase in income
b. The quantity of wheat purchased is increased as there is an increase in income which increased the demand for all goods
c. The percentage of their budget will go decline as the income elasticity is between zero and one that results into an increase in income and they can switch more expenditure for other goods
d. The farmer condition does not affect overall as if the income increased the demand for other goods is also increased but it is more than the wheat
During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 44 $ 36 $ 1,584 Apr. 7 Purchase 124 38 4,712 Jul. 16 Purchase 194 41 7,954 Oct. 6 Purchase 104 42 4,368 466 $ 18,618 For the entire year, the company sells 413 units of inventory for $54 each. Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Answer:
TRC Corporation
Calculations, using FIFO:
a) Ending Inventory:
Ending Inventory in units = Units available for sale minus Units sold
Ending Inventory in units = 466 - 413 = 53 units
Ending Inventory value = Units x FIFO cost of last purchase = 53 x $42 = $2,226
b) Cost of goods sold:
Cost of goods sold = Beginning Inventory + Purchases - Ending Inventory
Cost of goods sold = $1,584 + 17,034 - 2,226 = $16,392
c) Sales Revenue:
Sales Revenue = Units sold x Selling price = 414 x $54 = $22,302
d) Gross Profit:
Gross Profit = Sales Revenue minus Cost of goods sold
Gross Profit = $22,302 - $16,392 = $5,910
Explanation:
a) Summary of Inventory Transactions:
Date Transaction Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 44 $ 36 $ 1,584
Apr. 7 Purchase 124 38 4,712
Jul. 16 Purchase 194 41 7,954
Oct. 6 Purchase 104 42 4,368
b) Cost of goods available 466 $ 18,618
c) Sales 413 $ 54 $ 22,302
d) Dec. 31 Ending Inventory 53 42 $ 2,226
e) The FIFO (First-in, First-out) inventory method assumes that goods sold are from earlier inventory units, unlike Last-in, First-out (LIFO). This means that beginning and earlier purchased inventory units are sold first before the latest purchases. Using the FIFO method, the ending inventory is valued at the cost of the most recent inventory purchases.
Prepare Journal Entries in a Revenue Journal Horizon Consulting Company had the following transactions during the month of October: Oct. 2 Oct. 3 Oct. 14. Oct. 24 Oct. 29 Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $380 Issued Invoice No. 322 to Armor Inc. for services rendered on account, $540. Issued Invoice No. 323 to Pryor Corp. for services rendered on account, $190. Issued Invoice No. 324 to Rose Co. for services rendered on account, $790 Collected Invoice No. 321 from Pryor Corp.
a. Record the October revenue transactions for Horizon Consulting Company in the following revenue journal format revenue journal Accounts Rec. Dr DATE Invoice No. Account Debited Post. Ref Fees Earned Cr Oct. 2 Oct. 3 Oct. 14 Oct. 24 Oct. 31
b. What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for October? Accounts receivable Fees earned c. What is the October 31 balance of the Pryor Corp, customer account assuming a zero balance on October 1?
Answer and Explanation:
The recording and the computations are as follows
a. The recording of the October revenue transactions are shown below:
DATE INVOICE NO. ACCOUNT DEBITED POST.REF.
ACCOUNT REC. DR. FEES EARNED CR.
Oct 2 321 Pryor Co.
380
Oct 3 322 Armor Co.
540
Oct 14 323 Pryor co.
190
Oct 24 324 Rose co.
790
Oct 31 1900
b) Now the total amount for account receivable and fees earned is
Account receivable = 1900
Fees earned = 1900
c) The October 31 balance is
October 31 balance
= $380 + $190 - $380
= $190
Lock Division of Morgantown Corp. sells 80,000 units of part Z-25 to the outside market. Part Z-25 sells for $40, has a variable cost of $22, and a fixed cost per unit of $10. The Lock Division has a capacity to produce 100,000 units per period. The Cabinet Division currently purchases 10,000 units of part Z-25 from the Lock Division for $40. The Cabinet Division has been approached by an outside supplier willing to supply the parts for $36. What is the effect on Morgantown's overall profit if the Lock Divisi
Answer:
The effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits
Explanation:
In order to calculate the effect on Morgantown's overall profit we would have to make the following calculations:
Contribution margin per unit for Lock Division = Selling price – Variable costs = $40 - $22 = $18
Contribution lost by lock division if Cabinet division buys from outside = $18 * 10,000 = $180,000
Cost per unit saved by Cabinet division = $40 - $36 = $4
Total cost saved by cabinet division = $4 * 10,000 = $40,000
Net decrease in profit = Contribution lost – Cost saved = $180,000 - $40,000 = $140,000
Therefore, the effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits.
Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,053,000 shares of $10 par common stock. At no time has Newton issued any potentially dilutive securities. Listed below is a summary of Newton’s common stock activities.
1. Number of common shares issued and outstanding at December 31, 2012
2,413,000
2. Shares issued as a result of a 10% stock dividend on September 30, 2013
241,300
3. Shares issued for cash on March 31, 2014
2,136,000
Number of common shares issued and outstanding at December 31, 2014
4,790,300
4. A 2-for-1 stock split of Newton’s common stock took place on March 31, 2015
Compute the weighted-average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement
Compute the weighted-average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement
Compute the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement.
Compute the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement.
Answer:
1. The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 2,654,300 shares.
2. The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2014 is 4,256,300 shares
3. The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 8,512,600 shares
4. The weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 is 9,580,600 shares.
Explanation:
1. To calculate the weighted-average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement we would have to ake the following calculation:
Jan1.2013-Sep30.2013(2,413,000*9/12)=1,809,750
retroactive adjustment for stock dividend ×1.10
Jan1.2013-Sep30.2013 adjusted= 1,990,725
Oct.2013-Dec31.2013(2,654,300*3/12)= 663,575
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 2,654,300 shares.
2. To calculate the weighted-average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement we would have to make the following calculation:
Jan1.2014 -Mar31.2014(2654300*3/12) 663575
April1.2014 -Dec31.2014 (4790300*9/12) 3592725
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2014 is 4,256,300 shares
3. To calculate the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement we would have to make the following calculation:
2014 weighted average no of shares 4256300
Retroactive adjustment for stock split ×2 =8512600
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 8,512,600 shares
4. To calculate the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement we would have to make the following calculation:
Jan1.2015-Mar31.2015 (4790300*3/12)=1197575
Retroactive adjustment for stock split ×2
Jan1-Mar31.2015 adjusted. 2395150
Mar1.-Dec31.2015 (9580600*9/12)= 7185450
Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 is 9,580,600 shares.
Which best describes the role the applicants can fill in the company? Applicants 1 and 3 are best suited to work in network systems, while Applicant 2 could work in programming, information support, or interactive media. Applicants 2 and 3 are best suited to work in network systems, while Applicant 1 could work in programming, information support, or interactive media. Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media. Applicant 3 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Incomplete question, however I made interferences from an employer perspective.
Answer:
Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Explanation:
From a performance point of view the programming, information support and interactive media roles of the company would be better handled by more than one individual since this roles involve more responsibilities that could not be handled by one individual.
The network systems role can better be managed by Applicant 1 only as it is a task that could be handled by a single employee.
Answer:
C. Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.
Explanation:
Took The TestEntry for Issuing Materials Materials issued for the current month are as follows: Requisition No. Material Job No. Amount 103 Plastic 400 $ 2,800 104 Steel 402 24,000 105 Glue Indirect 1,620 106 Rubber 403 3,200 107 Titanium 404 31,600 Journalize the entry to record the issuance of materials. For a compound transaction, if an amount box does not require an entry, leave it blank.
Answer:
Details below
Explanation:
For issuance of an entry a single transaction is recorded that is work in process account is debited and materials inventory account is credited. In subsidiary ledgers job numbers are debited. For indirect Materials factory overhead is debited.
The given data is as follows.
Requisition No. Material Job No. Amount
103 Plastic 400 $ 2,800
104 Steel 402 24,000
105 Glue Indirect 1,620
106 Rubber 403 3,200
107 Titanium 404 31,600
The entry for materials requisitioned will be
A compound entry can be passed. In this the subsidiary ledger is not included.
Sr. No Particulars Debit Credit
Work In Process 61600
Factory Overhead 1620
Materials Inventory 63200
The one with a subsidiary ledger would look like this.
Sr. No Particulars Debit Credit
(Subsidiary)
1 Work In Process 61600
( Job No 400) 2800
( Job No 402) 24000
( Job No 403) 3200
( Job No 404) 31600
Factory Overhead 1620
Materials Inventory 63200
This is combined entry but separate entries can be passed as well .
Sr. No Particulars Debit Credit
Work In Process 61600
Materials Inventory 61600
Sr. No Particulars Debit Credit
Factory Overhead 1620
Materials Inventory 1620
Sr. No Particulars Debit Credit
(Subsidiary ledger)
( Job No 400) 2800
( Job No 402) 24000
( Job No 403) 3200
( Job No 404) 31600
Materials Inventory Plastic 2800
Materials Inventory Steel 24000
Materials Inventory Titanium 3200
Materials Inventory Rubber 31600
In each of the entries above materials inventory is credited.
The debate on the effects of raising the minimum wage is ongoing. A few years ago, Seattle, Los Angeles, and San Francisco passed laws to gradually raise the minimum wage to $15/hour. Beaudry, Paul, David A. Green, and Ben M. Sand (investigated the possible effects of these laws on the labor market and concluded that "...for workers below $10 per hour in Seattle, the employment rate declines by over 10 percent in response to raising the minimum wage to $15. Meanwhile, for the larger group with wages at or below $15, the decline is approximately 7 percent." The authors' conclusion is consistent with the specific economic theory discussed in the course that
Answer:
The findings are consistent with the specific economic theory about minimum wage that is held by mainstream, neoclassical theories.
According to this theory, a minimum wage is essentially a binding price floor: a minimum price (in this case, the price of labor, which is the wage) set by the government that is above the market rate.
what happens when imposing this binding price floor is that the supply of labor (workers) becomes higher than the demand (the firms that hire the workers), leading to oversupply. In other words, some workers are left unemployed because there is no demand for them at the price set by the government.
The findings are consistent with this economic theory.
Rhys Hoskins is the president of RH Corporation (RHC). RHC has provided the following partial listing of costs incurred during August: Marketing salaries $ 45,300 Utilities, factory $ 11,400 Administrative travel $ 102,300 Sales commissions $ 54,800 Indirect materials $ 39,500 Direct materials $ 166,400 Advertising $ 147,800 Depreciation of production equipment $ 47,000 Direct labor $ 91,700 Required: a. What is the total amount of manufacturing cost listed above?
Answer:
$306,000
Explanation:
To determine manufacturing costs, consider only those cost that can be directly traced to the product manufactured and plant related costs.
Total Manufacturing Cost Calculation :
Factory Utilities $11,400
Indirect Materials $39,500
Direct Materials $166,400
Equipment Depreciation $47,000
Direct labor $91,700
Total Manufacturing Cost $306,000
Two investment advisers are comparing performance. One averaged a 19% return and the other a 16% return. However, the beta for the first adviser was 1.5, while that of the second was 1.
Required:
a. If the T-bill rate was 6% and the market return during the period was 14%, which adviser would be the superior stock selector.
b. Can you tell which adviser was a better selector of individual stocks (aside from the issue of general movements in the market)?
c. What if the T-bill rate were 3% and the market return 15%?
Answer: Adviser B is the superior stock selector.
Explanation:
For the comparision between the two investment advisers, the Jenson's Alpha will be utilized.
Jenson's Alpha:
= Portfolio Actual Return - CAPM(Benchmark Portfolio Return)
T Bill Rate(Risk free rate) = 6%
Market return(E(Em) = 14%
Beta of Investment Adviser A = 1.5
Beta of Investment Adviser B = 1
For Adviser A:
CAPM = Risk free return + Beta ( E(Rm) - Risk free return)
CAPM(Benchmark Portfolio) = 6 + 1.5 (14-6)
= 6 + 12
= 18%
Actual Return = 19%
Jenson's Alpha = 19% - 18% = 1%
For Adviser B:
CAPM = Risk free return + Beta ( E(Rm) - Risk free return)
CAPM(Benchmark Portfolio) = 6 + 1(14-6) = 6 + 1(8) = 14%
Actual Return = 16%
Jenson's Alpha = 16% - 14% = 2%
Adviser B is a better selector because he has a larger alpha of 2% compared to Adviser A who has 1%.
T Bill Rate(Risk free rate) = 3%
Market return(E(Rm) = 15%
Beta of Investment Adviser A = 1.5
Beta of Investment Adviser B = 1
For Adviser A:
CAPM = Risk free return + Beta ( E(Rm) - Risk free return)
CAPM(Benchmark Portfolio) = 3 + 1.5 (15-3)
= 3 + 18
= 21%
Actual Return = 19%
Jenson's Alpha = 19% - 21% = -2%
For Adviser B:
CAPM = Risk free return + Beta ( E(Rm) - Risk free return)
CAPM(Benchmark Portfolio) = 3 + 1(15-3) = 3 + 1(12) = 15%
Actual Return = 16%
Jenson's Alpha = 16% - 15% = 1%
Given the changes, Adviser B is still the better selector because he has a larger alpha of 1% compared to Adviser A who has -2%.
TerraLoc competes in the market for global positioning devices and services. The company manufactures its own GPS units, which are smaller than those of any other competitor and include a proprietary battery that lasts 200% longer than any other competitor's battery and that TerraLoc manufacturers on-site. TerraLoc also has developed proprietary software that is much faster and more precise than that of any competitor. When developing the proprietary battery, TerraLoc decided to manufacturer the battery in-house to reduce the possibility that the company it outsourced the battery manufacturing to might reverse engineer the battery and sell a similar product to competitors. This possibility was especially troubling given that the company expected a significant increase in demand due to the improved battery life. Additionally, TerraLoc sells its products and services through its own direct sales force to ensure that its representatives highlight the longer battery life of TerraLoc's units.
TerraLoc's decsion to manufacture the battery in-house is most consistent with which theory(s) of vertical integration?
a. Firm capability-based explanations
b. Alliance-based explanation
c. Opportunism-based explanations
d. Flexibility-based explanations
Answer:
The correct answer is the option A: firm capability-based explanations.
Explanation:
To begin with, given the fact that the company decided to manufactured the battery in-house in order to reduce the possibility of helping other competitors when using an outsourced manufacturer then the company is using its firm capability in order to achieve the goal of manufacturing that component of the final product. Therefore that if the company would not have the resources and capability of doing it then it would necessary outsourced the manufactured of it.
he following information was drawn from the accounting records of Chapin Company. On January 1, Year 1, Chapin paid $56,000 cash to purchase a truck. The truck had a five-year useful life and a $6,000 salvage value. As of December 31, Year 1, Chapin Company had a $68,000 balance in its Accounts Receivable account and a zero balance in its Allowance for Doubtful Accounts account. Sales on account for Year 1 amounted to $320,000. Chapin estimates that 5 percent of credit sales will be uncollectible. Required a. Record the year-end adjusting entry for depreciation expense on the truck in T-accounts. b. Determine the book value of the truck that will appear on the December 31, Year 1, balance sheet. c. Record the year-end adjusting entry of uncollectible accounts expense. d. Determine the net realizable value of receivables that will appear on the December 31, Year 1, balance sheet.
Answer:
a. Record the year-end adjusting entry for depreciation expense on the truck in T-accounts.
December 31, 202x, accrued depreciation expense on truck
Dr Depreciation expense 10,000
Cr Accumulated depreciation - truck 10,000
b. Determine the book value of the truck that will appear on the December 31, Year 1, balance sheet.
Truck $46,000
c. Record the year-end adjusting entry of uncollectible accounts expense.
December 31, 202x, allowance for doubtful accounts
Dr Bad debt expense 16,000
Cr Allowance for doubtful accounts 16,000
d. Determine the net realizable value of receivables that will appear on the December 31, Year 1, balance sheet.
Accounts receivable $52,000
Explanation:
truck's depreciation expense straight depreciation = ($56,000 - $6,000) / 5 years = $10,000 per year
accounts receivable balance December 31 = $68,000
allowance for doubtful accounts = $0
total sales on account = $320,000
5% of credit sales are uncollectible
accounts receivable = $68,000 - $16,000 = $52,000
The Stationery Company purchased merchandise on account from a supplier for $9,100, terms 2/10, n/30. The Stationery Company returned merchandise with an invoice amount of $1,100 and received full credit. a. If The Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? $
Answer:
$7,840
Explanation:
The terms 2/10, n/30 means that if the amount is paid in maximum 10 days, the client will receive a 2% discount. If he/she doesn't make the payment in this period, the total amount has to be paid within 30 days.
As Stationary Company returned merchandise with an invoice amount of $1,100, you have to subtract this amount from the initial value of the merchandise they purchased:
$9,100-$1,100= $8,000
Then, you have to calculate the 2% discount they will get from the $8,000 for paying the invoice within the discount period:
$8,000*2%= $160
$8,000-$160= $7,840
According to this, the answer is that the amount of cash required for the payment is $7,840.
At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:
Account Balance
Cash $29,400
Accounts receivable 21,600
Accounts payable 12,000
Common stock 28,300
Retained earnings 10,700
The following events apply to Oak Consulting for Year 2:
Provided $68,400 of services on account.
Incurred $3,100 of operating expenses on account.
Collected $47,400 of accounts receivable.
Paid $31,100 cash for salaries expense.
Paid $13,590 cash as a partial payment on accounts payable.
Paid a $8,500 cash dividend to the stockholders.
Required:
a. What is the amount of net income for the year?
b. What is the amount of change in retained earnings for the year?
Answer:
a. What is the amount of net income for the year?
$34,190b. What is the amount of change in retained earnings for the year?
increased by $25,690Explanation:
net income:
total service revenue $68,400salaries expense -$31,100operating expenses -$3,100net income = $34,190change in retained earnings = net income - dividends = $34,190 - $8,500 = $25,690
Revenue and expenses are recorded on the periods that they occur, regardless of when they are collected or paid respectively.
Who is following the law when it comes to protecting investors’ funds?
Answer:
A mutual fund advisor who informs investors about risks is following the law when it comes to protecting investors’ funds
Explanation:
Answer:B (a mutual fund advisor who informs investors about risks)
Explanation:
Magnolia, Inc. has budgeted sales for the first quarter of the next year to be 45,000 units. The inventory on hand at the beginning of quarter is 5,000 units. The desired ending inventory is 3,000 units. Calculate the budgeted production for the first quarter.
Answer:
Production= 43,000 units
Explanation:
Giving the following information:
Sales= 45,000 units
Beginning inventory= 5,000 units
The desired ending inventory is 3,000 units.
To calculate the budgeted production, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 45,000 + 3,000 - 5,000
Production= 43,000 units
A new American graduate is contemplating buying a
Japanese, German, or an American car. No matter the type of car, he
plans to buy a new one at the end of 8 years.
The Japanese cars will cost $30,000 and have a fuel
usage of 23 Miles Per gallon (mpg) for the first 2 years and will
decrease by 3% per year thereafter. The repair cost will start at $700
per year, and increase by 3% per year. At the end of year 8, the
car can be sold for $5000. Insurance cost will be $700 for the
first year, increasing by 2% per year thereafter.
A German car will cost $45,000 and have fuel usage
of 21mpg for the first 5 years, and decrease by 1% thereafter to
year 8. The repair cost will start at $1000 in year 1 and increase by
4% per year. It will have a salvage value of $7000 at the end of
year 8. Insurance cost will be $850 the first year, increasing by
2% per year thereafter.
The American car will cost $35,000 and have fuel
usage of 20mpg for the first 3 years and will decrease by 3% per
year thereafter. The repair cost will be $800 in year 1, increasing by
4% per year thereafter. Being an American, the graduate will price
the pride of owning an American car at $0.4 for every 20 miles
driven, increasing by 2% per year. Insurance costs will be $800 per
year increasing by 2.2% per year. The car can be sold for $5500 at
the end of year 8.
If the graduate anticipates driving 150000 miles by
the end of year 8 and the average interest rate is expected to
remain at 5% per year, which car is economically affordable based
on present worth analysis? Assume fuel cost will be $3 per gallon
in year 1 and increase by an average of 2% per year. Show all your
workings.
Answer:
The best option is to buy Japanese Car.
Explanation:
Fuel usage per year is 150000/ 8 = 18750 miles per year
Fuel cost (year 1 -8) = $3.0, $3.06, $3.12, $3.18, $3.25, $3.312, $3.38, $3.5
Japanese Car:
Fuel usage 18750 / 23 = 815 * $3 = $2446
Fuel charges (year 1 -8) = $2445, $2494, $2623, $2758. $2900, $3050, $3207, $3372
Repair Cost (year 1 - 8) = $700, $721, $742, $764, $787, $811, $835, $860
Insurance cost (Year 1 - 8) = $700, $714, $728, $742, $757, $772, $788, $804
Present value of cost at 5% = 24674.07
Cost of car is $30,000
Total cost = $54674.07
American Car:
Cost $35,000
Fuel usage 18750/20 = 937.5 * $3 per gallon = $2812.5.
Fuel charges (year 1 -8) = $2812, $2913, $2986, $3011. $3098, $3124, $3176, $3208
Repair Cost (year 1 - 8) = $800, $894, $921, $978, $1109, $1176, $1207, $1301
Insurance cost (Year 1 - 8) = $800, $827, $876, $898, $908, $932, $954, $934
Present value of cost at 5% = 25302.18
Cost of car is $35,000
Total cost = $60302.
German Car:
Cost = $45,000
Fuel usage 18750 / 21 = 892 * $3 = $2678
Fuel charges (year 1 -8) = $2679, $2732, $2786, $2842. $2899, $2987, $3077, $3171
Repair Cost (year 1 - 8) = $1000, $1040, $1081, $1124, $1169, $1216, $1265, $1316
Insurance cost (Year 1 - 8) = $850, $867, $884, $902, $920, $938, $957, $976
Present value of cost at 5% = 27105.73
Cost of car is $45,000
Total cost = $72105.
You want to invite one of the authors of your textbook to come to your school and speak. Name two persuasive points you would include in your letter in order to persuade them to say “yes.”
A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $60; Second purchase $67; Third purchase $64. If the company sold two units for a total of $209 and used FIFO costing, the gross profit for the period would be
Answer:
$82
Explanation:
As company Uses FIFO system, it will sell first two products
The cost price =($60 + $67 = 127).
So Gross profit = Selling Price-Cost Price
Gross Profit = 209-127
= $82
The gross profit for the period is $82
Present and future value
PV of $1 FV of $1 PVA of $1 FVAD of $1 FVA of $1
1 0.91743 1.09000 0.91743 1.0900 1.0000
2 0.84168 1.18810 1.75911 2.2781 2.0900
3 0.77218 1.29503 2.53129 3.5731 3.2781
4 0.70843 1.41158 3.23972 4.9847 4.5731
5 0.64993 1.53862 3.88965 6.5233 5.9847
6 0.59627 1.67710 4.48592 8.2004 7.5233
How much must be invested now at 9% interest to accumulate to $24,000 in four years?
a) $1,753.b) $1,965.c) $2,652.d) $2,317.
Answer:
$ 17,002.21 (none of the options is correct)
Explanation:
The formula for determining the present value ,which is the actual amount invested to give a future value is given below:
PV=FV*(1+r)^-n
The PV is the present value which is unknown
FV is the future worth of the investment which is $24,000
r is the rate of return which is 9% per year
n is the duration of investment which is 4 years
PV=$24,000*(1+9%)^-4
PV=$24,000*(1.09)^-4
PV=$24,000*0.708425211 =$ 17,002.21
If the price of a six-pack of Pepsi falls from $4 to$3 and the quantity purchased increases 80 percent, then demand is
Answer:
low
Explanation:
If the price decreases and the quantity increases, the demand is low.
If the price increases and the quantity decreases, the demand is high.
Hope this helps!!! PLZ MARK BRAINLIEST!!!
2. Jill would like to plan for her son’s college education. She would like for her son, who was born today, to attend college for 5 years, beginning at age 18. Tuition is currently $12,000 per year and tuition inflation is 6%. Jill can earn an after-tax rate of return of 8%. How much must Jill save at the end of each year, if she wants to make the last payment at the beginning of her son’s first year of college?
Answer:
$4,531.50
Explanation:
first we must determine the cost of tuition in 18 years (2038):
$12,000 x (1 + 6%)¹⁸ = $34,252 per year
to calculate the total value of college tuition (5 years) in 2038 we can use the annuity due factor (6% and 5 years) 4.4651:
total college tuition = $34,252 x 4.4651 = $152,939
this means that Jill needs to have $152,939 for the moment her son starts college:
we have to calculate the payment:
to calculate the future value of an annuity (since she starts to save at end of the year, it is an ordinary annuity, not annuity due) we use the following formula:
future value = payment x ordinary annuity factor (8% and 17 years)
we know future value ($152,939) and the annuity factor = 33.7502
payment = future value / annuity factor
payment = $152,939 / 33.7502 = $4,531.50
Pekoe sold stock to his sister Rose for $12,000, its fair market value. Pekoe bought the stock 5 years ago for $16,000. Also, Pekoe sold Earl (an unrelated party) stock for $6,500 that he bought 3 years ago for $9,500. What is Pekoe's recognized gain or loss?
Answer:
The answer is $3000
Explanation:
Solution
Given that:
Pekoe sold stock to his sister rose for the amount = $12,000
The stock cost 5 years ago for Pekoe = $16,000
Pekoe sold earl stock for =$6,500
Previous stock for earl 3 years ago = $9,500
Now we have to find the recognized loss of Pekoe
THus,
The sale of stock to rose will be a loss of $ 4000
which is
($12,000 -$16,000) =$4000 loss
Thus,
The sale of stock to Earl will result to the following loss which is state below:
$6,500 - $9,500 = a loss of $3000
Therefore the recognized loss of pekoe is $3000 or -$3000
Note: A loss was recognized here, no gain earned
Answer:
Pekoe would recognize the loss of $3,000.
Explanation:
The sale of stock to Rose would result in a loss of $3,000 ($12,000 (FMV) - $16,000 (cost) = $4,000 loss).
Under the tax law, "losses from sale or exchange of property ... directly or indirectly" are disallowed between related parties. When the property is later sold to an unrelated party, any disallowed loss may be used to offset gain on that transaction.
The sale of stock to Earl (an unrelated party) also results in a loss ($6,500 (FMV) - $9,500 (cost) = $3,000 loss). This is considered an arms-length transaction.
Pekoe would recognize the loss of $3,000.
During its first year of operations, Mack’s Plumbing Supply Co. had sales of $420,000, wrote off $6,700 of accounts as uncollectible using the direct write-off method, and reported net income of $46,200. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 3/4% of sales would be uncollectible.
Answer:
The net income would have been $45,550
Explanation:
In order to calculate the amount the net income would have been if the allowance method had been used, and the company estimated that 1 3/4% of sales would be uncollectible, we would have make the following calculation:
Net income would have been if the allowance method had been used = $46,200 + $6,700 – ($420,000 × 1 3/4%)
Net income would have been if the allowance method had been used= $45,550
The net income would have been $45,550
On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:
Cash Accounts Payable
Accounts Receivable Shawn Dahl, Capital
Office Equipment Revenue
Canoe and Kayak Equipment Expenses
Following are the transactions:
1. Shawn Dahl invested $44,400 in cash to open the business
2. Paid $12,100 in cash for the purchase of kayak and canoe equipment
3. Paid $1,850 in cash for rent expense
4. Purchased additional kayak and canoe equipment for $4,600 on credit
5. Received $4,700 in cash for kayak rentals
6. Rented canoes and kayaks for $2,000 on account
7. Purchased office equipment for $205 in cash
8. Received $1,200 in cash from credit clients
9. Shawn Dahl withdrew $2,300 in cash for personal expenses
Based on the information shown above, what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?
Answer:
what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?
$800
Explanation:
We can seen in the transactions in the question that Whitewater Rentals first obtained $2,000 from rented canoes on account. These $2,000 represent the initial balance of accounts receivable.
Later, credit clients paid $1,200 cash. This reduced accounts receivable by the same amount.
Therefore, the balance of Accounts Receivable for Whitewater Rentals at the end of September is = $2,000 - $1,200 = 800
Bell expects to produce 1 comma 800 units in January and 2 comma 155 units in February. The company budgets 3 pounds per unit of direct materials at a cost of $ 10 per pound. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is 4 comma 950 pounds. Bell desires the ending balance in Raw Materials Inventory to be 20% of the next month's direct materials needed for production. Desired ending balance for February is 4 comma 860 pounds. Prepare Bell's direct materials budget for January and February.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Production:
January= 1,800 units
February= 2,155 units
The company budgets 3 pounds per unit of direct materials at a cost of $ 10 per pound.
Beginning inventory= 4,950 pounds.
Desired ending inventory= 20% of the next month's direct materials needed for production.
Desired ending balance for February is 4,860 pounds.
To calculate purchases, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
January (in pounds):
Production= 1,800*3= 5,400
Desired ending inventory= (2,155*3)*0.2= 1,293
Beginning inventory= (4,950)
Total= 1,743
Total cost= 1,743*10= $17,430
February (in pounds):
Production= 2,155*3= 6,465
Desired ending inventory= 4,860
Beginning inventory= (1,293)
Total= 10,032
Total cost= 10,032*10= $100,320
Suppose the market for pizzas is unregulated. That is, pizza prices are free to adjust based on the forces of supply and demand.
If a shortage exists in the pizza market, then the current price must be.............than the equilibrium price. For the market to reach equilibrium, you would expect................
Answer:
Lower
Buyers would offer higher prices
Explanation:
When a shortage occurs when Demand exceeds supply. Excess demand occurs when price is below equilibrium price and as a result suppliers reduce quantity supplied.
As a result of the shortage, buyers would offer higher prices. As a result of the higher prices, the quantity supplied would increase and equilibrium would be restored.
I hope my answer helps you
A C corporation earns $ 9.20 per share before taxes and the company pays a dividend of $ 4.00 per share. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the after-tax amount an individual would receive from the dividend?
Answer:
The answer is $4.27
Explanation:
Solution
Given that:
AC corporation earns = $9.2 per share
Pays a dividend of =$4.00
The tax rate (Corporate ) is =39%
The tax rate on personal dividends is= 15%
The tax rate for non-dividend personal income is = 36%
Now,
We must find the after tax rate amount of after tax rate an individual or a person would earn from the dividend
Thus,
The corporate tax =$9.40 * 39% = 3.67
Personal tax = $4.00 * 15% = 0.6
Now we find the total for the after tax rate
Total = $3.67 + $0.6
= $4.27
Therefore, the after tax rate an individual or a person would earn from the said divided is $4.27
A company's production department was experiencing a high defect rate on the assembly line, which was slowing down production and causing wastage of valuable direct materials. The production manager decided to purchase a higher grade of materials that would be more reliable, but he was worried that the cost of the new materials might negatively affect operating income. This would produce a(n) ________.A. unfavorable direct materials cost variance
B. unfavorable direct materials efficiency variance
C. favorable direct labor cost variance
D. favorable direct labor efficiency variance
Answer:
D
Explanation:
Because the higher the quality of materials the more efficient the product will be
Riverbed Corporation was organized on January 1, 2020. It is authorized to issue 14,500 shares of 8%, $100 par value preferred stock, and 475,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.
Jan. 10 Issued 84,500 shares of common stock for cash at $4 per share.
Mar. 1 Issued 4,050 shares of preferred stock for cash at $110 per share.
Apr. 1 Issued 24,000 shares of common stock for land. The asking price of the land was $88,500. The fair value of the land was $83,500.
May 1 Issued 83,000 shares of common stock for cash at $5.25 per share.
Aug. 1 Issued 12,000 shares of common stock to attorneys in payment of their bill of $40,500 for services performed in helping the company organize.
Sept. 1 Issued 11,500 shares of common stock for cash at $5 per share.
Nov. 1 Issued 2,500 shares of preferred stock for cash at $111 per share
Required:
Journalize the transactions.
Answer:
Jan. 10
Cash $338,000 (debit)
Common Stock $338,000 (credit)
Mar. 1
Cash $445,500 (debit)
Common Stock $445,500 (credit)
Apr. 1
Land $88,500 (debit)
Common Stock $88,500 (credit)
May 1
Cash $435,750 (debit)
Common Stock $435,750 (credit)
Aug 1
Organizing Costs : attorneys $40,500 (debit)
Common Stock $40,500 (credit)
Sept. 1
Cash $57,500 (debit)
Common Stock $57,500 (credit)
Nov. 1
Cash (debit) $277,500
Share Premium ; Preference Stock (credit) $27,500
Preference Stock (credit) $250,000
Explanation:
The Common Stocks are classified as no-par common stock. This means there is no premium account recognized for this classification of stock. The stocks will be presented at their respective value at date of issuance.
With the Preference Stock, this is different. A par value of $100 has been established. Any payment made in excess of the par value will end up in Share Premium Account.