In which type of organizational structure is the agency problem least likely to exist?
The agency problem arises when there is a conflict of interest between the owners/shareholders and the management of a company. This conflict of interest occurs because the owners/shareholders want to maximize their wealth while the management may have different goals. Therefore, the agency problem can arise in any type of organizational structure.
However, if we have to choose among the given options, the organizational structure in which the agency problem is least likely to exist is a Sole Proprietorship. In a sole proprietorship, the owner has complete control over the business and is the only decision-maker. Hence, there is no conflict of interest between the owner and the management. Moreover, the owner takes all the risks and rewards of the business, which further aligns their interests with those of the business.
In contrast, the other options like Professional Corporations, Partnerships, and Limited Liability Corporations have a separate legal entity from the owners, which can lead to conflicts of interest between the owners and the management. For example, in a partnership, the partners may have different goals, leading to disputes and conflicts. Similarly, in a limited liability corporation, the shareholders may not have control over the management, which can lead to an agency problem.
In conclusion, while the agency problem can exist in any organizational structure, a Sole Proprietorship is the type of structure in which it is least likely to occur.
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Suppose the economy begins in a short-run recessionary equilibrium. As price expectations and wages adjust and the economy moves from the short-run equilibrium to the new long-run equilibrium, A. consumer spending increases as prices fall and the AD curve shifts to the left B. consumer spending increases as prices fall and the AD curve shifts to the right C.consumer spending increases as prices fall generating a movement along the AD curve D. government spending rises as shown by a movement along the AD curve
Suppose the economy begins in a short-run recessionary equilibrium. As price expectations and wages adjust and the economy moves from the short-run equilibrium to the new long-run equilibrium, the correct answer is: C. Consumer spending increases as prices fall, generating a movement along the AD (aggregate demand) curve.
In this scenario, when prices fall, consumers find goods and services more affordable, leading to an increase in consumer spending. This increase in spending corresponds to a movement along the AD curve, as the quantity of goods and services demanded increases at lower price levels.
Consumer spending increases as prices fall generating a movement along the AD curve. As the economy moves from a short-run recessionary equilibrium to a new long-run equilibrium, prices and wages adjust to reach a new equilibrium point.
As prices fall, consumers are more willing and able to spend, which leads to an increase in aggregate demand (AD). This increase in consumer spending generates a movement along the AD curve, rather than a shift to the left or right. Government spending may also play a role in the adjustment process, but it is not necessarily the primary driver of the change in equilibrium.
Therefore, the correct answer is C. consumer spending increases as prices fall generating a movement along the AD curve .
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When a firm sells a new issue through an investment banker, the costs incurred
Group of answer choices
are the "give up" expense of the spread, plus the legal and accounting fees, printing expense, and other small fees.
are the spread to the underwriter, which includes all the costs of legal and accounting fees, printing expense, and other small fees.
are dependent upon the number of underwriters in the syndicate.
are the "give up" expense of the spread, plus the legal and accounting fees, printing expense, and other small fees, and are dependent upon the number of underwriters in the syndicate.
When a firm sells a new issue through an investment banker, the costs incurred are the "give up" expense of the spread, plus the legal and accounting fees, printing expense, and other small fees. The correct option is A.
These costs are associated with the process of issuing new securities to raise capital. The spread to the underwriter includes all the costs of legal and accounting fees, printing expense, and other small fees, but it's important to note that the total costs are not solely dependent upon the number of underwriters in the syndicate.
While the number of underwriters may have an impact on the overall costs, other factors such as the complexity of the transaction, the size of the issue, and market conditions can also influence the expenses involved in selling a new issue through an investment banker. The correct option is A.
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Complete question:
When a firm sells a new issue through an investment banker, the costs incurred
a. are the "give up" expense of the spread, plus the legal and accounting fees, printing expense, and other small fees.
b. are the spread to the underwriter, which includes all the costs of legal and accounting fees, printing expense, and other small fees.
c. are dependent upon the number of underwriters in the syndicate.
d. are the "give up" expense of the spread, plus the legal and accounting fees, printing expense, and other small fees, and are dependent upon the number of underwriters in the syndicate.
Professor Cupinda performed a field study of employee resistance to computers. She gathered data on many different issues. In her research report, she dismissed information that she thought to be less relevant in explaining employee resistance but which later turned out to be relevant. Which logical error did she commit
Professor Cupinda committed which logical error: confirmation bias. Confirmation bias is a logical fallacy that causes individuals to search for, interpret, and remember information that supports their current beliefs while disregarding information that contradicts them.
This can lead to poor decision-making, as important information is overlooked or dismissed. Professor Cupinda committed this error when she dismissed information that she considered less relevant in explaining employee resistance to computers but which later turned out to be relevant.In her research report, Professor Cupinda dismissed the information she considered less relevant in explaining employee resistance to computers. However, the information she ignored later turned out to be relevant, implying that her reasoning was incorrect. Confirmation bias was at play here because she selectively focused on data that supported her current beliefs, causing her to ignore critical information that contradicted her assumptions, and this led to her making incorrect conclusions about the situation.
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During the great depression, economists developed new ways of thinking about markets, prices, and the economy as a whole because:
During the Great Depression, economists developed new ways of thinking about markets, prices, and the economy as a whole in response to unprecedented economic challenges.
The Great Depression was a severe worldwide economic downturn that lasted from the late 1920s to the early 1940s. It caused massive unemployment, bank failures, and a collapse in industrial production. In the face of these unprecedented challenges, economists realized that existing economic theories and policies were inadequate to explain and address the situation. As a result, they began developing new ways of thinking about markets, prices, and the economy as a whole.
During this period, economists such as John Maynard Keynes emerged with new theories that emphasized the role of aggregate demand and the importance of government intervention in stabilizing the economy. Keynesian economics, as it came to be known, advocated for government spending and monetary policies to stimulate economic growth and reduce unemployment. This marked a shift from the previously dominant laissez-faire approach.
Furthermore, the Great Depression prompted economists to reevaluate traditional economic theories' assumptions, such as the belief in market efficiency and self-regulation. New schools of thought, such as institutional economics, emerged, which focused on the role of institutions, social factors, and market imperfections in shaping economic outcomes.
Overall, the Great Depression served as a catalyst for economists to reexamine and reformulate their understanding of markets, prices, and the functioning of the economy. The lessons learned during this period shaped the development of new economic theories and policies to prevent and mitigate future economic crises.
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General Electric was relying on short-term borrowing to finance their operations. This strategy worked well before the financial crisis in 2008. What GE experienced illustrates how important working capital management to the firms’ financial position and risk. In order to meet their working capital needs, companies have the option to hold cash or hold on to a line of credit. Find news examples and evidences to support your position.
General Electric's reliance on short-term borrowing to finance their operations is a prime example of how important working capital management is to a firm's financial position and risk.
Prior to the financial crisis in 2008, GE's strategy of borrowing short-term funds at low rates and investing them in long-term projects generated significant profits. However, when the credit markets froze and short-term borrowing became more expensive, GE found itself in a difficult situation.
One option that companies have to meet their working capital needs is to hold cash. This strategy allows firms to have the funds they need on hand without having to rely on borrowing. However, holding cash can be expensive and may limit a company's ability to invest in growth opportunities.
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The first step in the target costing process is to estimate how much a product will cost to develop. True False
True. The target costing process is a method used by companies to manage the costs of their products throughout the product's lifecycle.
This process involves estimating the total cost of a product and then setting a target price that customers are willing to pay for it. The first step in the target costing process is to estimate how much a product will cost to develop. This is important because the cost of development can significantly impact the final cost of the product. By estimating the cost of development upfront, companies can better understand the total cost of the product and set a target price that will allow them to make a profit. Costing is a critical part of the target costing process and involves analyzing all the costs associated with developing and producing a product. This includes direct costs such as materials and labor as well as indirect costs such as overhead expenses. By carefully managing costs throughout the product lifecycle, companies can ensure that they are delivering high-quality products to their customers at a price that is both competitive and profitable.
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Milton Hershey was not only interested in innovative candy making; he also wanted to help the members of the community. An example of his concern for the community was the founding of a home for orphan children, the Hershey Industrial Schools (now called the Milton Hershey School) in 1909. Many of the children who attended the school became Hershey employees, including former Hershey chairman William Dearden (1976–1984). Today, the 10,000-acre campus houses and provides education for nearly 1,300 financially and socially disadvantaged children. Although Hershey remains a public corporation, the Milton Hershey School Trust, which financially supports the school, owns about 30 percent of Hershey Foods' total equity.
The Milton Hershey Trust also owns 100 percent of the Hershey Entertainment and Resort Company, which operates a number of Hershey's non-chocolate properties, including the Hershey Park theme park, the Dutch Wonderland theme park for younger children, the Hershey Hotel, the Hershey Lodge and Convention Center, the Hershey Bears (a minor league hockey team), Hershey's zoo, a four-course golf club, an outdoor sports stadium, and an indoor sports arena.
Because Milton Hershey's original funding was wisely managed by the trust managers, the assets of the Milton Hershey School Trust have grown to a value of more than $7 billion. Milton Hershey was a visionary in terms of using a public corporation to support his philanthropic dreams.
Hershey Trust has equity in the corporation, which means
a loan was made to the company from the trust.
the trust owns shares of stock in the company.
the liabilities of the company are in the name of the trust.
the trust is in charge of business operations.
The Hershey Trust can earn money on its equity investment in the company through the increase of each share's market value and
interest paid on money invested.
change in par value.
direct profit sharing through compensation.
the payment of dividends.
Funds that are generated internally in the firm, in the form of profits that are not distributed to shareholders, are known as
retained earnings.
short-term assets.
equity financing.
accounts receivable.
The selling of stock generates ____________ for the firm.
retained earnings
loans
capital
liabilities
Large corporations, such as Hershey, have a client relationship with a(n) ___________ that can provide advice about financing plans, dividend policy, or stock repurchases.
investment banking firm
accounting firm
law firm
marketing firm
stock firm
Milton Hershey was not only a successful businessman but also a philanthropist who wanted to help the members of his community.
He founded the Hershey Industrial Schools, now called the Milton Hershey School, to provide education for financially and socially disadvantaged children. The school is financially supported by the Milton Hershey School Trust, which owns about 30% of Hershey Foods' total equity. The trust also owns the Hershey Entertainment and Resort Company, which operates a number of Hershey's non-chocolate properties. Because of Milton Hershey's original funding and the wise management of the trust managers, the assets of the Milton Hershey School Trust have grown to a value of more than $7 billion. The Hershey Trust has equity in the corporation, which means it owns shares of stock in the company and can earn money on its investment through the increase of each share's market value and the payment of dividends. Retained earnings are funds generated internally in the firm, in the form of profits that are not distributed to shareholders. The selling of stock generates capital for the firm. Large corporations like Hershey have a client relationship with an investment banking firm that can provide advice about financing plans, dividend policy, or stock repurchases.
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Soda Corporation purchased 3,500 shares of its own $1.60 par value common stock for $130,000. As a result of this transaction, the company's stockholders' equity
A. increased by $5,600.
B. decreased by $130,000.
C. increased by $124,400.
D. increased by $130,000.
The correct answer is D. The purchase of 3,500 shares of its own $1.60 par value common stock for $130,000 would result in an increase in the company's stockholders' equity by the same amount.
This is because the company is essentially using its own funds to purchase its own shares, which reduces the number of outstanding shares in the market. This can increase the value of the remaining shares, as well as improve the company's financial position by increasing its equity. It is important to note that the par value of the common stock is irrelevant in this transaction, as the company is buying back its own shares at a market value that is higher than the par value. In summary, the correct answer is D, and the increase in the company's stockholders' equity is $130,000.
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In The Austerity Delusion Prof. Blyth notes that Canada "was able to cut and grow in the 1980s," (a) Use the IS curve to briefly explain this result from the perspective of an austerity supporter (b) Use the IS curve to briefly summarize Prof. Blyth's explanation of Canada's ex (c) What role do unions play in the success of the success of the mechanism you perience. discussed in part 2(b)
The answer is , (a) From the perspective of an austerity supporter, Canada's ability to cut and grow in the 1980s can be explained by the IS curve.
What is IS curve?According to the IS curve, a decrease in government spending leads to a decrease in aggregate demand, which in turn leads to a decrease in output. However, if the decrease in government spending is accompanied by a decrease in interest rates, the decrease in output can be offset by an increase in investment spending. Therefore, an austerity supporter would argue that Canada was able to cut government spending without hurting economic growth because interest rates decreased at the same time.
(b) Prof. Blyth's explanation of Canada's success in the 1980s is also related to the IS curve. According to Blyth, Canada's ability to cut and grow was due to a combination of factors, including a flexible exchange rate, an increase in exports, and a decrease in interest rates. These factors helped to offset the negative effects of government austerity on output.
(c) Unions played a role in Canada's success in the 1980s because they helped to maintain social stability during the austerity measures. By negotiating with employers and the government, unions were able to minimize the negative effects of austerity on workers. This helped to prevent widespread protests and social unrest, which could have undermined the government's efforts to stabilize the economy.
Hence, unions played a key role in ensuring that Canada's austerity measures were implemented in a way that minimized their negative effects on society.
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a bottle of vitamins containing 30 tablets is $8.99. a bottle of the same vitamins containing 100 tablets is $11.99. this is an example ofa. Safety Inventory b. Economies of scalec. Chase strategy d. Bull Whip
When a bottle of vitamins containing 30 tablets is $8.99 and a bottle of the same vitamins containing 100 tablets is $11.99, this is an example of Economies of scale. Therefore, the correct option is B.
Economies of scale refer to the cost advantage that a business obtains due to expansion, which allows for reduced costs per unit as output increases. In this case, purchasing the larger bottle of vitamins (100 tablets) provides a better value per tablet compared to the smaller bottle (30 tablets). This is because the cost per tablet decreases as the number of tablets in the bottle increases, showcasing the benefits of economies of scale.
Hence, the correct answer is option B: Economies of scale.
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• $5,200 fair market value of stock contributed to the Red Cross ($3,000 stock basis). He had owned the stock for two years. Robert also made cash contributions of $8,000 to qualified organizations during the year.
Robert's contribution of stock to the Red Cross with a fair market value of $5,200 and a stock basis of $3,000 is considered a charitable contribution. Since he has owned the stock for two years, he can claim a deduction for the full fair market value of the stock, which is $5,200. However, he cannot claim a deduction for the stock basis of $3,000.
In addition to the stock contribution, Robert also made cash contributions of $8,000 to qualified organizations during the year. These cash contributions can also be claimed as a charitable deduction on his tax return.
To claim the charitable deduction for both the stock contribution and cash contributions, Robert must itemize his deductions on his tax return using Schedule A. The total amount of the charitable deduction cannot exceed 60% of his adjusted gross income.
In summary, Robert can claim a charitable deduction of $5,200 for the stock contribution and $8,000 for the cash contributions. It is important to keep detailed records of all charitable contributions made during the year in order to provide a detailed solution when claiming deductions on tax returns.
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Compute cost of goods sold using the following information. Merchandise inventory, beginning Cost of merchandise purchased Merchandise inventory, ending $ 13,100 86,100 19, 100 Cost of Goods Sold is Computed as: Merchandise inventory, beginning Add: Cost of merchandise purchased Goods available for sale Less: Merchandise inventory, ending Cost of goods sold $ 13,100 86,100 99,200 19,100 $ 80,100
The cost of goods sold is $80,100. This metric is crucial in assessing the financial health of the business and making informed decisions about pricing, inventory management, and overall profitability.
The cost of goods sold is an important financial metric that represents the cost of the products or goods that were sold during a particular period. In this case, we have the beginning merchandise inventory of $13,100, cost of merchandise purchased of $86,100 and ending merchandise inventory of $19,100. To calculate the cost of goods sold, we add the beginning inventory to the cost of merchandise purchased to get the total goods available for sale, which is $99,200.
Next, we subtract the ending inventory from the goods available for sale to get the cost of goods sold, which is $80,100. This represents the total cost of goods sold during the period in question.
COGS = (Merchandise Inventory, Beginning) + (Cost of Merchandise Purchased) - (Merchandise Inventory, Ending) Merchandise Inventory, Beginning = $13,100
Cost of Merchandise Purchased = $86,100 Merchandise Inventory,
Ending = $19,100
Now, plug these values into the formula: COGS = ($13,100) + ($86,100) - ($19,100) COGS = $99,200 - $19,100 COGS = $80,100 .
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The cost of goods sold (COGS) is calculated by adding the beginning inventory to the cost of goods purchased to get the total available for sale, and then subtracting the ending inventory. After carrying out these steps, the COGS in this case is found to be $80,100.
Explanation:To compute the Cost of Goods Sold (COGS), we start with the beginning inventory, which is $13,100. We then add the Cost of Merchandise Purchased, which comes out to $86,100. These two numbers added together give us the Goods Available for Sale, which is $99,200. To find the final COGS, we subtract the Merchandise Inventory at the end of the period, which is $19,100. So, $99,200 - $19,100 = $80,100, which is the COGS.
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In the accounting cycle, if the two totals of the trial balance are NOT equal, it could be due to the following type of error:
a. failure to record a transaction of post a transaction.
b. recording the same erroneous amount for both debit and credit parts of a transaction.
c. error in determining the account balances, such as a balance being incorrectly computed.
d. recording the same transaction more than once.
However, one of the possible errors is recording the same erroneous amount for both debit and credit parts of a transaction. This mistake can cause the trial balance to be unbalanced, as the erroneous amount will affect both sides of the equation.
Other errors that may cause an imbalance in the trial balance include failure to record a transaction or post a transaction, recording the same transaction more than once, or errors in determining the account balances. It is important to identify and correct any errors in the trial balance to ensure accurate financial reporting and a successful accounting cycle.This type of error is called a transposition error, and it occurs when the same amount is recorded for both the debit and credit parts of a transaction, but in the wrong accounts. As a result, the transaction is recorded twice, once as a debit and once as a credit, which leads to an imbalance in the trial balance. The other options listed - a. failure to record a transaction or post a transaction, c. error in determining the account balances, and d. recording the same transaction more than once - can also cause an imbalance in the trial balance, but they would result in a different type of error.
For example, if a transaction is not recorded, there will be an imbalance in the trial balance because the transaction will be missing from the ledger accounts. If a transaction is recorded more than once, there will be an imbalance in the trial balance because the transaction will be recorded as both a debit and a credit, but with different amounts. If there is an error in determining the account balances, there will be an imbalance in the trial balance because the account balances will be incorrect.
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In the accounting cycle, if the two totals of the trial balance do not match, it could be due to several types of errors, namely failure to record a transaction, recording the same erroneous amount for debit and credit parts of a transaction, error in determining account balances, or recording the same transaction more than once.
In the accounting cycle, if the two totals of the trial balance are NOT equal, it could be due to several types of errors. These could include:
Failure to record a transaction or post a transaction. This means that a financial event that should have been entered into the accounting system was missed.Recording the same erroneous amount for both debit and credit parts of a transaction. This means that an error was made when entering the amounts in the accounting system, and the same incorrect amount was entered twice.Error in determining the account balances, such as a balance being incorrectly computed. This could happen if the amounts of transactions were not added up correctly, leading to an incorrect total balance.Recording the same transaction more than once. This is also called double booking. It means the same transaction was entered into the system more than once, which would inflate the account balance.Learn more about Trial Balance and Errors here:https://brainly.com/question/34588624
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Conditions for monopolistic competition Consider the monopolistically competitive market structure, which has some features of a competitive market and some features of a monopoly. Complete the following table by indicating if each attribute characterizes a competitive market, a monopolistically competitive market, both, or neither. Check all that apply Attributes Competitive Market Monopolistically Competitive Market Product differentiation Price taker Free entry Price equals average total cost in the long run
Attributes are Product differentiation: monopolistically competitive market, Price taker: competitive market, Free entry: competitive market and monopolistically competitive market, Price equals average total cost in the long run: competitive market.
Monopolistic competition is a market structure that combines some features of perfect competition and monopoly. The key characteristic of monopolistic competition is product differentiation, which means that firms can produce similar but not identical products.
This leads to a downward sloping demand curve for each firm, allowing them to have some market power and set their own prices. However, the entry and exit of firms in the industry prevent long-term economic profits, making it similar to a perfectly competitive market in the long run.
Thus, the table shows that monopolistically competitive markets have product differentiation and free entry, making them distinct from a perfectly competitive market, but they are not monopolies and therefore do not have the characteristics of a monopoly, such as being a price taker or having price equal to average total cost in the long run.
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fhfa has authorized which gse to purchase mortgages secured by a group home investment property?
The Federal Housing Finance Agency (FHFA) has authorized Fannie Mae, one of the government-sponsored enterprises (GSEs), to purchase mortgages secured by a group home investment property. A group home is a residential property designed to house multiple unrelated individuals who require assistance with daily living. These properties are typically owned by an investor and managed by a third-party service provider.
The authorization from FHFA allows Fannie Mae to expand its lending portfolio to include mortgages for group home investment properties. This means that investors who own these types of properties can now access financing through Fannie Mae, providing more options for investors looking to finance their group home investments.
This move by FHFA and Fannie Mae is part of an ongoing effort to support affordable housing initiatives and promote access to credit for a wider range of borrowers. By expanding its lending portfolio to include group home investment properties, Fannie Mae can help investors meet the growing demand for affordable housing and support the communities they serve.
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The American Opportunity tax credit
A. Is available for years of post-secondary education
B. Is fully refundable een if the credit exceeds tha tax liability
C. Is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents
D. Is 50 percent of the first $1,200 of tuition and fees paid and 100 percent of the next $1,200
The given answers for the American Opportunity tax credit are:
The American Opportunity Tax Credit (AOTC) is a tax credit that is available for the first four years of post-secondary education (A).
It is not fully refundable; however, 40% of the credit can be refundable, up to $1,000, if the credit exceeds the tax liability (B).
The AOTC is available for qualifying expenses paid on behalf of the taxpayer, their spouse, and their dependents (C).
The credit is calculated as 100% of the first $2,000 of tuition and fees paid, and 25% of the next $2,000, resulting in a maximum annual credit of $2,500 per eligible student (D).
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The American Opportunity tax credit is a tax credit available to eligible taxpayers who pay for qualified education expenses for themselves, their spouse, or their dependents. This credit can be worth up to $2,500 per eligible student per year, and it is available for the first four years of post-secondary education.
One of the key features of the American Opportunity tax credit is its tiered structure. Specifically, the credit is worth 50 percent of the first $1,200 of tuition and fees paid per eligible student, and 100 percent of the next $1,200. This means that if you paid $2,400 in qualified tuition and fees for a particular student, you could receive a credit worth up to $1,500 (50% of $1,200 + 100% of $1,200).
It's worth noting that there are income limitations for the American Opportunity tax credit, and that not all educational expenses qualify. However, for those who are eligible, this credit can provide a valuable boost to help offset the costs of higher education.
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Significant noncash transactions would not include a. conversion of bonds into common stock. b. asset acquisition through bond issuance. c. treasury stock acquisition. d. exchange of plant assets. The statement of cash flows a. must be prepared on a daily basis. b. summarizes the operating, financing, and investing activities of an entity. c. is another name for the income statement. d. is a special section of the income statement. Jean s Vegetable Market had the following transactions during 2016: I. Issued $50,000 of par value common stock for cash. II. Repaid a 6 year note payable in the amount of $22,000. III. Acquired land by issuing common stock of par value $100,000. IV. Declared and paid a cash dividend of $2,000. V. Sold a long-term investment (cost $3,000) for cash of $8,000. VI. Acquired an investment in IBM stock for cash of $15,000. What is the net cash provided (used) by investing activities? a. $15,000 b. $33,000 c. ($7,000) d. $8,000 Which of the following adjustments to convert net income to net cash provided by operating activities is not added to net income? a. Gain on Sale of Equipment b. Depreciation Expense c. Patent Amortization Expense d. Depletion Expense A measure that describes the cash remaining from operations after adjustment for capital expenditures and dividends is a. adjusted cash from operations. b. cash provided by operations. c. free cash flow. d. net cash provided by operating activities.
Significant noncash transactions would not include c. treasury stock acquisition.
The statement of cash flows b. summarizes the operating, financing, and investing activities of an entity. It provides information on the cash inflows and outflows of an entity during a specific period, and is divided into three sections: operating activities, investing activities, and financing activities.
The net cash provided (used) by investing activities for Jean's Vegetable Market is **($7,000)**. This is calculated as the cash outflows for the acquisition of land and IBM stock ($100,000 + $15,000 = $115,000) minus the cash inflow from the sale of the long-term investment ($8,000).
The adjustment to convert net income to net cash provided by operating activities that is not added to net income is a. Gain on Sale of Equipment. Gains on the sale of equipment are subtracted from net income, while losses on the sale of equipment are added back to net income.
The measure that describes the cash remaining from operations after adjustment for capital expenditures and dividends is c. free cash flow. It is calculated as cash flow from operating activities minus capital expenditures and dividends.
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Your crazy uncle left you a trust that will pay you $29,000 per year for the next 24 years with the first payment received one year from today. If the appropriate interest rate is 6. 2 percent, what is the value of the payments today
The value of the payments today, also known as the present value, is $386,979.78.
To calculate this, we use the formula:
Present Value = Payment Amount × [1 - (1 + Interest Rate)^(-Number of Payments)] / Interest Rate
Substituting the given values, where the payment amount is $29,000, the interest rate is 6.2% (or 0.062 as a decimal), and the number of payments is 24, we can calculate the present value.
Present Value = $29,000 × [1 - (1 + 0.062)^(-24)] / 0.062
After evaluating this expression, the present value of the payments today is approximately $386,979.78.
This means that if you were to receive $29,000 per year for the next 24 years, with the first payment starting one year from today, the value of those payments in today's terms would be $386,979.78.
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Acme Computers, a computer store, takes unethical steps to divert the customers of Cyber Goods, an adjacent competing store. Acme may be liable fora. appropriation.b. wrongful interference with a business relationship.c. wrongful interference with a contractual relationship.d. none of the above.
Acme Computers may be liable for wrongful interference with a business relationship. This occurs when a party intentionally interferes with the business relationships of another party, causing economic harm. Therefore, the correct answer is option B.
In this case, Acme is taking unethical steps to divert customers from Cyber Goods, which could result in a loss of business for Cyber Goods.
Examples of wrongful interference with a business relationship could include spreading false information about the competitor or offering incentives to customers who switch to the interfering company.
If Cyber Goods can prove that Acme's actions were intentional and caused economic harm, they may have grounds to pursue legal action against Acme.
It is important for businesses to compete fairly and ethically in the marketplace, and actions such as those taken by Acme can damage the reputation of the business and result in legal consequences.
Companies should focus on providing high-quality products and services rather than engaging in unethical practices to gain a competitive advantage.
In conclusion, Acme Computers may be liable for wrongful interference with a business relationship due to their unethical actions to divert customers from Cyber Goods.
Such actions can result in legal consequences and damage the reputation of the business. Therefore, the correct answer is option B.
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is a legal contract between a vendor and a user that governs the use of a software package, such as a utility program.
The answer is Yes, a legal contract between a vendor and a user that governs the use of a software package is commonly known as an End-User License Agreement (EULA).
What is an EULA ?An EULA outlines the terms and conditions under which the software can be used by the end-user. It also specifies the limitations of liability, ownership, and restrictions on the usage of the software.
It is essential to read and understand the EULA before installing or using any software, as it is legally binding and can affect the user's rights and obligations.
Overall, an EULA is an important legal document that ensures the proper use of the software and protects the interests of both the vendor and the user.
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Geary Manufacturing has assembled the data appearing in the next column pertaining to two products. Past experience has shown that the unavoidable fixed manufacturing overhead included in the cost per machine hour averages $10. Geary has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Total machine capacity is 50,000 hours.
Electric
Blender
Mixer
Direct materials
$ 6
$11
Direct labor
4
9
Manufacturing overhead
at $16 per hour
16
32
Cost if purchased from an
outside supplier
20
38
Annual demand (units)
20,000
28,000
Question
If 50,000 machine hours are available and Geary Manufacturing desires to follow an optimal strategy, it should
A.Produce 25,000 electric mixers and purchase all other units as needed.
B.Produce 20,000 blenders and 15,000 electric mixers, and purchase all other units as needed.
C.Produce 20,000 blenders and purchase all other units as needed.
D.Produce 28,000 electric mixers and purchase all other units as needed.
The optimal strategy for Geary Manufacturing would be to produce 20,000 blenders and 15,000 electric mixers and purchase all other units as needed.
This strategy maximizes the utilization of the available machine hours by producing the two products with the highest contribution margin per machine hour, which are the blender and electric mixer. The contribution margin per machine hour for the blender is $14 ($31 - $6 - $4 - $10) and for the electric mixer is $13 ($52 - $11 - $4 - $10). The total machine hours required for producing 20,000 blenders and 15,000 electric mixers would be 50,000 hours (20,000 x 2.5 + 15,000 x 3), which fully utilizes the available capacity. By purchasing all other units as needed, Geary can avoid the fixed manufacturing overhead costs and still fulfill all sales orders as per their policy. This strategy would result in maximum profitability for the company while efficiently utilizing their resources.
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VeCo, which uses the perpetual method, records merchandise purchases at gross. On October 3, VeCo buys $42,000 of merchandise on account. Terms are 2/10, n/40. On October 9, VeCo returns goods that cost $10,000. On October 11, VeCo pays $31,360. What entry does VeCo record on October 11?
a. debit Accounts Payable $31,360 and credit Cash $31,360
b. debit Accounts Payable $32,000, credit Cash $31,360, and credit Purchase Discounts $640
c. debit Accounts Payable $32,000, credit Cash $31,360, and credit Inventory $640
d. debit Accounts Payable $31,360 credit Purchase Discounts $640, credit Cash $31,360, and credit Inventory $640
VeCo, utilizing the perpetual inventory method, records merchandise purchases at gross cost.
On October 3, they purchased $42,000 of merchandise on account, with terms of 2/10, n/40. This means that if VeCo pays within 10 days, they will receive a 2% discount; otherwise, the full amount is due in 40 days.
On October 9, VeCo returned goods that cost $10,000, reducing their payable amount to $32,000 ($42,000 - $10,000). Since they still have time to take advantage of the discount, they pay on October 11.
The 2% discount on the remaining payable amount of $32,000 results in a discount of $640 ($32,000 * 0.02). VeCo pays $31,360 ($32,000 - $640) and records the following journal entry on October 11:
- Debit Accounts Payable: $31,360 (to reduce the liability)
- Credit Purchase Discounts: $640 (to recognize the savings)
- Credit Cash: $31,360 (to record the cash payment)
- Credit Inventory: $640 (to adjust the inventory cost, reflecting the discount)
This entry reflects the cash payment, the reduced payable amount, and the appropriate adjustments to both purchase discounts and inventory.
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the transformation of old banking industry, from "country club" to "night club". what are they talking about?
The transformation of the old banking industry from "country club" to "night club" refers to the shift in banking culture and practices from a traditional, exclusive, and conservative environment to a more modern, open, and dynamic one.
In the past, the banking industry was often seen as a "country club," meaning it was an exclusive and conservative sector with limited access and traditional practices. With technological advancements, deregulation, and increasing competition, the industry has evolved into a "nightclub" atmosphere, characterized by innovation, inclusivity, and rapid change. This transformation has led to the introduction of new banking products, services, and channels, making banking more accessible and customer-centric.
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.4.2. if your credit card calculates interest based on 13.90 APR, compounded monthly,
(A) What are you monthly interest rate and annual effective interest rate ?
(B) if your current outstanding balance is 3,000 and you skip payments for two months, what would be the total balance two months from now?
(A)The annual effective interest rate is almost 15%
(B)The total balance will be: 3,034.75 + (3,034.75 x 1.1583%) = 3,069.96.
(A) The monthly interest rate can be calculated by dividing the annual interest rate (APR) by 12, since the interest is compounded monthly. So, the monthly interest rate is 13.90/12 = 1.1583%. To calculate the annual effective interest rate, we need to take into account the effect of compounding. The formula for annual effective interest rate is (1 + r/n)^n - 1, where r is the annual interest rate and n is the number of times interest is compounded per year. In this case, r is 13.90% and n is 12 (since interest is compounded monthly). Plugging these values into the formula, we get: (1 + 0.1390/12)^12 - 1 = 14.999%. So, the annual effective interest rate is almost 15%.
(B) Skipping payments on your credit card can have serious consequences, as it can lead to late fees, increased interest rates, and damage to your credit score. Assuming there are no late fees or other charges, if you skip payments for two months, the interest will continue to accrue on your outstanding balance. Using the monthly interest rate calculated in part (A), we can calculate the interest that will accrue each month as follows: 3,000 x 1.1583% = 34.75. So, after one month, your balance will be 3,000 + 34.75 = 3,034.75. After two months, the interest will accrue on the new balance, so the total balance will be: 3,034.75 + (3,034.75 x 1.1583%) = 3,069.96. This is assuming that no other charges or payments are made during the two-month period.
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for 1-year bond, suppose the face value is 100 and present value is 95, what is the yield of this bond?
The yield of this 1-year bond when face value is 100 and present value is 95 is 5.26%.
To calculate the yield of a 1-year bond with a face value of 100 and a present value of 95, you can use the following formula:
Yield = (Face Value - Present Value) / Present Value
Hence,
1: Identify the face value and present value.
Face Value = 100
Present Value = 95
2: Plug the values into the formula.
Yield = (100 - 95) / 95
3: Calculate the yield.
Yield = 5 / 95
Yield ≈ 0.0526 or 5.26%
So, the yield of this 1-year bond is approximately 5.26%.
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When u.s. businesses established branches in south africa, in the short run, south africa's aggregate supply _______.
When U.S. businesses establish branches in South Africa, in the short run, South Africa's aggregate supply will increase.
This is because the establishment of new businesses will lead to an increase in production and output, which in turn leads to an increase in the aggregate supply. The new businesses will employ workers and purchase goods and services from other businesses, which will further boost the economy and aggregate supply.
Additionally, the investment by U.S. businesses can lead to an increase in technological advancements and innovation in the country, which can lead to further increases in productivity and output. However, it is important to note that the long-term effects of U.S. businesses establishing branches in South Africa may vary depending on various factors such as government policies, economic stability, and social issues.
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mckkinney farma issued 2000 shares od 1 par value stock for 10 a share the journal entry to record the transaction includes a to common stock
This journal entry reflects the increase in cash by $20,000 and the increase in common stock by $2,000.
The journal entry to record the issuance of 2000 shares of 1 par value stock for 10 a share by Mckinney Farma would be as follows:
Debit: Cash - $20,000 (2000 shares x $10 per share)
Credit: Common Stock - $2,000 (2000 shares x $1 par value)
Common stock is a type of equity that represents ownership in the company. By issuing shares of common stock, the company is able to raise capital and investors are able to buy ownership in the company.
In addition, it is important to note that the transaction is a typical example of a primary market transaction. The company is issuing shares directly to investors, and the proceeds from the sale of the shares go to the company. As a result, the company's equity increases by the amount of the funds raised.
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what is the truck’s estimated residual value (hint: recall the purchase cost of the truck is $240,000)?
The estimated residual value of the truck is $0.
What is the truck's residual value ?To estimate the residual value of the truck, we need to know the expected depreciation rate and the useful life of the truck. Let's assume that the truck has a useful life of 5 years and a straight-line depreciation rate of 20% per year.
Calculate the depreciation expense per yearDepreciation expense = (Purchase cost of truck - Estimated residual value) / Useful life
Depreciation expense = ($240,000 - Estimated residual value) / 5
Calculate the estimated residual valueEstimated residual value = Purchase cost of truck - (Depreciation expense x Useful life)
Estimated residual value = $240,000 - (0.20 x $240,000 x 5)
Estimated residual value = $240,000 - $240,000
Estimated residual value = $0
Based on the assumptions we made, the estimated residual value of the truck is $0. This means that after 5 years of use, the truck's value will have depreciated to the point where it is essentially worthless. However, it's important to note that this is just an estimate, and the actual residual value of the truck may be different based on factors such as market conditions, maintenance, and usage.
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how can auditors determine a company’s true ""tone at the top""?
Auditors can determine a company's true "tone at the top" by evaluating the organization's leadership, culture, and commitment to ethical practices. This involves examining the actions, policies, and communication of the company's top management, which often sets the stage for the overall business environment.
One way auditors can assess the tone at the top is by conducting interviews with senior management and board members, focusing on their perspectives regarding ethical behavior, risk management, and adherence to laws and regulations. These interviews provide insights into the organization's values and priorities, revealing any potential red flags.
Additionally, auditors can review the company's code of conduct, ethics policies, and internal control framework. A well-drafted code of conduct should outline the company's commitment to ethical practices, setting clear expectations for all employees. The presence of a robust internal control framework demonstrates the management's dedication to upholding accountability and transparency.
Auditors can also analyze training programs and employee evaluations to gauge the emphasis placed on ethical conduct. Regular training sessions that address ethical dilemmas and proper decision-making are indicative of a strong tone at the top.
Lastly, auditors can observe employee behavior and review any instances of misconduct. A company with a true commitment to ethical leadership will have a lower incidence of fraudulent activities and employees will be more inclined to report unethical behavior.
In summary, auditors can determine a company's true "tone at the top" by examining leadership's actions and communication, reviewing policies and internal controls, and evaluating employee behavior and training programs. A strong tone at the top fosters a culture of ethical practices, risk management, and compliance, which is crucial for a company's long-term success.
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Suppose that in Econland Bonnie was earning $50,000 a year five years ago when the CPI was equal to 200. Today the CPI is equal to 400 and she is earning $80,000. We would say that Bonnie's. a. Real wage and nominal wage have increased b. Real wage has fallen but nominal wage has increased. c. Nominal wage has fallen but real wage has increased d. Nominal wage has increased but real wage fell e. Real wage has increased but nominal wage has not changed.
We would say that Bonnie's real wage has fallen but nominal wage has increased.
The real wage is the purchasing power of the nominal wage, or the amount of goods and services that can be purchased with a given wage. It is calculated by dividing the nominal wage by the price level, as measured by the CPI. In this case, Bonnie's nominal wage has increased from $50,000 to $80,000 over a period of five years. However, the CPI has also increased from 200 to 400 over the same period, which means that the price level has doubled.
To calculate Bonnie's real wage, we can divide her nominal wage by the price level:
Real wage = Nominal wage / Price level
Five years ago, Bonnie's real wage was:
Real wage (5 years ago) = $50,000 / 200 = $250
Today, Bonnie's real wage is:
Real wage (today) = $80,000 / 400 = $200
Therefore, we can see that Bonnie's real wage has fallen from $250 to $200 over the past five years, even though her nominal wage has increased. This means that Bonnie's purchasing power has decreased over time, as the increase in her nominal wage has not kept pace with the increase in prices.
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