Answer:
The Designer Journal Entry
Date General Journal Debit Credit
July 31 Unearned Revenue $7,500
Design Services Revenue $7,500
Altoona Corporation has two divisions, Hinges and Doors, which are both organized as profit centers; the Hinge Division produces and sells hinges to the Door Division and to outside customers. The Hinge Division has total costs of $43, $26 of which are variable. The Hinge Division is operating significantly below capacity and sells the hinges for $58.The Door Division has received an offer from an outsider vendor to supply all the hinges it needs (32,000 hinges) at a cost of $53. The manager of the Door Division is considering the offer but wants to approach the Hinge Division first.What would be the profit impact to Altoona Corporation as a whole if the Door Division purchased the 32,000 hinges it needs from the outside vendor for $53?a. No change in profit to Altoona.b. $160,000 increase in profits.c. $160,000 decrease in profits.d. $864,000 decrease in profits.
Answer:
d. $864,000 decrease in profits.
Explanation:
Hinge Division's total cost per unit:
variable $26
fixed $17
total $43
sales price $58
contribution margin $32
profit margin $15
Alternative A Alternative B Differential
intercompany outside amount
money paid to $0 $1,696,000 ($1,696,000)
outside vendor
variable costs $832,000 $0 $832,000
fixed costs $544,000 $544,000 $0
total costs $1,376,000 $2,240,000 ($864,000)
If the hinges are purchased form an outside vendor, the corporation's total profits will decrease by $864,000.
Based on the information provided, what rental rates would you include in your forecast/proforma model from the tenants?
Select the answer and briefly explain your rationale
Contract rental rates
Market rental rates
A blend of contract and market rental rates
Insufficient information to determine
Answer:
Insufficient information to determine
Explanation:
The question makes reference to information provided as a basis for making a decision. But, there is no information provided. This makes it impossible to select any rental rates, whether Contract rental rates, Market rental rates, or a blend of contract and market rental rates, to include in the forecast or proforma model from the tenants. So, the conclusion is that there is insufficient information to determine.
Explain how the Federal Reserve Board can increase or decrease the money supply using each of the following tools: reserve requirements, open-market activities, and discount rates
Answer:
Reserve requirements – Reserve requirement increases to decrease the money supply or vice versa.
Open-market activities – the Fed sell the securities to reduce money supply or purchase it to increase the money supply.
Discount rates – Decrease the discount rate to increase the money supply or vice versa.
Explanation:
The Federal Reserve increases or decreases the money supply by using various tools. So in the case of the reserve requirement, the bank increases the percentage of reserve requirement if the Fed wants to decrease the money supply and to increase the money supply it reduces the reserve requirements. In the case of open market operations, the Fed sells securities and bonds in the market in order to reduce the supply of money or to decrease the supply of money it buys the securities from the market.
In the case of a discount rate, the Fed reduces the discount rate to increase the money supply because reducing the discount rate will induce the banks to give more loans. But to decrease the money supply, the Fed increases the discount rate because an increase in the discount rate reduces the ability of banks to give loans.
Formaggio Vecchio announced its regular quarterly cash dividend of $0.20 per share. Currently there are one million shares outstanding.
Declaration date: October 24, 2006
Ex-dividend date: November 20, 2006
Record date: November 22, 2006
Payment date: December 15, 2006
On ____ will the stock price change to reflect the value of the dividend;
Formaggioâs stock price at the end of November is expected to be $20. The dividend yield is ____;
Suppose that the marginal tax rate on dividend is 15% and the marginal tax rate on capital gain is 10%, the stock price will fall by _____ after the ex-dividend date;
Suppose that the company decides to use the same amount of cash to buy back shares rather than to issue cash dividends. The company will buy back shares at the market price at the end of November. You currently hold 10000 shares, and you decide to sell 1000 shares during the repurchase. The percentage ownership after the repurchase is ____ ;
Suppose that the company decides to issue a 10% stock dividend instead of a cash dividend. The stock price will fall by ___ due to the dilution
Answer:
A.On Ex-dividend date: November 20, 2006
B.1%
C.$0.19
D. $1.82
Explanation:
1.On Ex-dividend date: November 20, 2006
will the stock price change to reflect the value of the dividend
b. Calculation for Formaggio’s dividend yield
Using this formula
Dividend yield = dividend/share price
Let plug in the formula
= .20/20 = 1%
c. Calculation of how much the stock price is likely to fall
0.20*(1 – 15%) = P*(1 – 10%)
Solve for P = $0.19
d. Calculation of How much is the stock price likely to fall Suppose that the company decides to issue a 10% stock dividend instead of a cash dividend.
$1,000,000 + (1,000,000 * 10%)
$1,000,00+$100,000
= 1,100,000 total shares
Hence,
$20,000,000 / 1,100,000 = $18.18 per share
$20 – 18.18 = $1.82 fall
If the straight-line depreciation method is used, the annual average investment amount used in calculating the accounting rate of return is calculated as (beginning book value + ending book value)/2.
a. True
b. False
Answer:
The answer is true
Explanation:
Accounting Rate of Return is a financial ratio used in capital budgeting decision making. It is the ratio of estimated accounting profit(net income) of a project to the average investment made in the project.
And average investment is calculated as the sum of the beginning and ending book value of the project/investment divided by 2
Depreciation is termed as the phase of the value of the assets when they keep on decreasing year by year or monthly. It is caused due to the overutilization of the assets for the production function of the firm.
The correct answer is true
An Accounting Rate of Return (ARR) is a financial ratio that is used to make capital budgeting decisions. It is the ratio of a project's estimated retained earnings (retained earnings) to a project's average investment.
Investment is equal to the sum of the project/initial investments and ending book values divided by two.
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An investor buys a 10-year, 7% coupon bond for $1,050, holds it for 1 year, and then sells it for $1,040. What was the investor's rate of return?
Answer:
The answer is 5.71%
Explanation:
Solution
Given that
Coupon rate = 7%
Bond = $1050
Sale of the bond = $1040
n = 10 years, n = 1 year
Now we find the investor's rate of return
Thus
Coupon payment = 7%* 1000
=70
1050 = 70/(1+r) + $1,040/(1+r)
r= 5.71%
Therefore the rate of return of the investor is 5.71%
or
Rate of return = (P1-P0+ Interest ) /P0
= (1040 -1050 + 70 )/1050
= .0571 or 5.71%
For each of the following, compute the future value (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)): Present Value Years Interest Rate Future Value $ 2,250 11 13 % $ 8,752 7 9 76,355 14 12 183,796 8 6
Answer:
1. $8,630.69
2. $15,999
3. $373,155.46
4. $292.942.90
Explanation:
The formula for calculating future value = P(1 + r)^n
P = Present value
R = interest rate
N = number of years
1. $ 2,250 (1 + 0.13)^11 = $8,630.69
2. 8,752 (1 + 0.09)^7 = $15,999
3. 76,355 (1 + 0.12)^14 = $373,155.46
4. 183,796(1 + 0.06)^8 = $292.942.90
I hope my answer helps you
For each of the following, the future value can be computed as:
1. $8,630.69
2. $15,999
3. $373,155.46
4. $292.942.90
The worth of a present asset at some point in the future based on an estimated rate of growth is known as future value (FV). For investors as well as financial planners, the future value is crucial because they use it to predict the amount an investment made now is going to be worth throughout the future. Investors may make wise investment choices based on their projected demands by knowing the future worth.
future value = P(1 + r)^n
P = Present value
R = interest rate
N = number of years
1. $ 2,250 (1 + 0.13)^11 = $8,630.69
2. 8,752 (1 + 0.09)^7 = $15,999
3. 76,355 (1 + 0.12)^14 = $373,155.46
4. 183,796(1 + 0.06)^8 = $292.942.90
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Which of the following is a substantive culture-changing action that a company's managers can undertake to alter a problem culture?
A. Identify aspects of the present culture that pose problems.
B. Revise policies and procedures in ways that will help drive cultural change and replace senior executives who are resisting and obstructing needed organizational and cultural changes.
C. Shift from decentralized to centralized decision-making so as to give senior executives more authority and control in driving cultural change.
D. Make a concerted effort to turn the company's core competencies into distinctive competencies.
E. Empower employees to adopt whatever new work practices they believe will be an improvement.
Answer:
B. Revise policies and procedures in ways that will help drive cultural change and replace senior executives who are resisting and obstructing needed organizational and cultural changes.
Explanation:
Culture of a company are the accepted ways of doing things on a daily basis with a view of achieving organisational goals. It includes the way employees interact with one another and their customers, procedures carrying out tasks, and so on.
The management of the company are the drivers of company culture, so a substantiative culture-changing action that can be taken to solve a problem culture will include replacing senior executives who are resisting and obstructing needed organizational and cultural changes, and revising policies and procedures in a way that will drive culture change
Consider each situation and determine whether the person is structurally unemployed, frictionally unemployed, or cyclically unemployed.
a. Julie had to leave her old job when she moved to a new city. She works in customer service and is looking for a new job.
b. Julie graduates from college and is looking for a job as an accountant.
c. Bob loses his job as the economy slips into a recession.
d. Jim got laid off from his job at an auto manufacturer as the company became more automated.
Answer:
The correct answers are:
a - Frictionally unemployed
b - Frictionally unemployed
c - Cyclically unemployed
d - Structurally unemployed
Explanation:
To begin with, the term of "Frictional unemployment" refers to the situation that is caused when a person does not have a job because of the fact that she has recently quit one and is looking for a new one. The name of frictional unemployement refers to the time that the person quits a job and gets a new one.
Secondly, the term of "Cyclical unemployment" refers to the situation that is caused due to the economics situations of the country. Therefore that this type of unemployment is caused because of the bad sales, the bad production and the bad moment that the economy is having. It is refered to the economic cycles.
Finally, the term of "Structural unemployment" refers to the situation that is caused when a person in without a job due to the specialties and necessities that the companies are requiring or looking for. Therefore that this type of unemployment is caused by the lack of education in the workforce.
The correct answers are:
Frictionally unemployedFrictionally unemployed Cyclically unemployed Structurally unemployed.Explain the types of employment mentioned above ?The clinical unemployment refers to the component of the overall unemployment that is an output of the cycles of direct economic upturn and downturns.
Structural unemployment is the involuntary unemployment that is due to the mismatch between the skills that the workers in the economy can offer. Frictional unemployment is a voluntary transmission within the economy.
Find out more information about the unemployed.
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Mountain Lake Corporation's accounting records show the following at year-end December 31, 2014:
Purchase Discounts $7,230 Beginning Inventory $32,660
Freight-In 8,730 Ending Inventory 29,170
Freight-Out 12,260 Purchase Returns and Allowances 4,190
Purchases 164,250
Assuming that Mountain Lake Corporation uses the periodic system, compute the cost of goods purchased and cost of goods sold.
1. Cost of goods purchased$=?
2. Cost of goods sold$=?
Answer:
Cost of goods purchased= $161,560
Cost of goods sold= $165,050
Explanation:
1. Cost of goods purchased (net) = Purchases - Purchase discount - purchase returns and allowances + Freight in
= $164,250 - $7,230 - $4,190 + $8,730
=$161,560
2. Cost of goods sold = Beginning inventory + Net purchase - Ending inventory
= $32,660 + $161,560 - $29,170
= $165,050
Often in business the greater the risk, the __________.
Answer:
greater the potential reward
Explanation:
If the factory overhead is underapplied, then the adjusting journal entry to close the factory overhead account includes a: (Check all that apply.)\
Answer:
Debit to cost of goods sold and credit to factory overhead
Explanation:
Here we are interested in knowing the appropriate journal entry when the factory overhead is under applied.
What happens to the factory overhead journal in this case is that the we should have an adjusting journal entry.
The adjusting journal entry here is that we debit cost of goods sold and credit factory overhead
Assume that taxes are constant. If the government borrows $17 billion in new funds and has a budget deficit of $35 billion, then the central bank has to:
Answer:
increase the money supply by $18 billion.
Explanation:
Data provided in the question
The Borrowed amount by the Government = $17 billion
Budget deficit = $35 million
Based on the above information
The central bank has to raise the money supply by $18 million i.e come form
= Budget deficit - the borrowed amount
= $35 million - $17 million
= $18 million
Hence, the supply is increased by $18 million
If a small electric automobile manufacturer is able to gain the social return generated by its electric motor, its demand for financial capital would
Answer: shift to the left
Explanation:
The social return helps in comparing the value of benefits and the costs to achieving the benefits. The social return is the ratio of net present value of the benefits in comparison to the net present value of the investment or the costs to getting the benefits.
In this case, if a small electric automobile manufacturer is able to gain the social return generated by its electric motor, it would decrease the demand for financial capital which simply means that the demand for financial capital will shift to the left. This shift to the left is as a result of the gain in its social return gotten by the electric motor.
You will pay $7,000 now to purchase a perpetuity which will pay you and your heirs $340 at the end of each year, forever. What is the rate of return on this perpetuity?
Answer:
4.86%
Explanation:
Interest rate of a perpetuity = amount / present value
$340 / $7,000 = 0.048571 = 4.86%
I hope my answer helps you
Answer:
4.86%
Explanation:
Interest rate of a perpetuity = amount / present value
$340 / $7,000 = 0.048571 = 4.86%
Sheridan Corp.’s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 550,500 units of product: sales $2,752,500, total costs and expenses $2,855,400, and net loss $102,900. Costs and expenses consisted of the amounts shown below.
Total Variable Fixed
Cost of goods sold $2,140,000 $1,590,000 $550,000
Selling expenses 250,000 92,000 158,000
Administrative expenses 210,000 68,000 142,000
$2,600,000 $1,750,000 $850,000
Management is considering the following independent alternatives for 2018.
1. Increase unit selling price 20% with no change in costs, expenses, and sales volume.
2. Change the compensation of salespersons from fixed annual salaries totaling $150,000 to total salaries of $60,000 plus a 5% commission on sales.
Required:
a. Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places.)
b. Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places.)
Answer and Explanation:
a. Here we will follow some steps to reach break-even point in dollars for 2017 is shown below:-
Step 1
Selling price per unit = Sales ÷ Number of units
= $2,752,500 ÷ $550,500
= $5
Step 2
Variable cost per unit = Total of variable ÷ Number of units
= $1,750,000 ÷ $550,500
= $3
Step 3
Contribution margin ratio = (Selling price per unit - Variable cost per unit) ÷ Selling price per unit
= ($5 - 3) ÷ $5
= 0.4
and finally
Break even point in dollars = Fixed cost ÷ Contribution margin ratio
= $850,000 ÷ 0.4
= $2,125,000
b. As per the situation the solution of contribution margin under each of the alternative courses of action is below:-
According to the 1 alternative
Selling price per unit = $5 × 1.20
= $6
Contribution margin ratio = (Selling price per unit - Variable cost per unit) ÷ Selling price per unit
= ($6 - 3) ÷ $6
= 0.5
or
= 50%
According to the 2 alternative
Variable cost per unit = $3 + $5 × 5%
= $3.25
Contribution margin ratio = (Selling price per unit - Variable cost per unit) ÷ Selling price per unit
= ($5 - $3.25) ÷ $5
= 0.35
or
= 35%
A sharp increase in interest rates will decrease the price of bonds and increase the interest income available to new bondholders. This will increase the demand for bonds compared to the demand for stocks, all other considerations remaining constant.
A. True
B. False
The Supplies account had a balance at the beginning of year 3 of $8,000 (before the reversing entry). Payments for purchases of supplies during year 3 amounted to $50,000 and were recorded as expense. A physical count at the end of year 3 revealed supplies costing $14,500 were on hand. Reversing entries are used by this company. The required adjusting entry at the end of year 3 will include a debit to:
Answer:
The required adjusting entry at the end of year 3 will include a debit to:
Supplies Expenses Account of $43,500 ($8,000 + 50,000 - 14,500), and a credit to Supplies Account in the sum of $43,500.
Explanation:
Adjusting entries are made at the end of an accounting period to bring the accounts in line with the accrual concept, which requires that expenses and revenue should be recognized in the period they are incurred or earned.
This implies that transactions should not be based solely on when cash is received or payment made. Expenses incurred but not yet paid should be recognized in the accounts of the period. Revenue earned but not yet received in cash should be accounted for in the period when the revenue is earned. Expenses paid in advance should not be recognized in determining net income. Revenue collected but not yet earned should not be included in the period's accounts for determining net income. Finally, non-cash expenses (depreciation) should be recognized in the period they are incurred.
Given these observed times (in minutes) for four elements of a job, determine the observed time (OT) for each element. Note: the second element only occurs every other cycle.
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6
1 4.1 4.0 4.6 4.1 4.1 4.1
2 - 1.5 - 2.4 - 1.4
3 3.2 3.2 3.8 3.2 3.3 3.3
4 2.7 3.0 2.7 2.8 2.8 2.8
Answer:
Element 1 = 4.17 Observed time
Element 2 = 1.77 Observed time
Element 3 = 3.33 Observed time
Element 4 = 2.8 Observed time
Explanation:
Calculation to determine the observed time (OT) for each element
Based on the information given we have 4 Element and 6 Cycle for Element 1,3 and 4 while Element 2 has 3 cycle
First step is sum up each element cycle i.e addition of cycle 1 to cycle 6
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6
1. 4.1 +4.0 +4.6 + 4.1 +4.1 + 4.1 = 25
2. - 1.5 - 2.4 - 1.4 =(1.5+2.4+1.4)=5.3
3. 3.2 +3.2 +3.8 +3.2+ 3.3 +3.3= 20
4. 2.7 +3.0 +2.7 +2.8 +2.8+ 2.8 = 16.8
Now let find the Observed time by dividing the figure that was sum up for each of the element by the numbers of cycle that each element has.
OBSERVED TIME
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6
1. 4.1 +4.0 +4.6 + 4.1 +4.1 + 4.1 = 25/6= 4.17 Observed time
2. - 1.5 - 2.4 - 1.4 =(1.5+2.4+1.4)=5.3/3=1.77 Observed time
3. 3.2 +3.2 +3.8 +3.2+ 3.3 +3.3= 20/6= 3.33 Observed time
4. 2.7 +3.0 +2.7 +2.8 +2.8+ 2.8 = 16.8/6=2.8 Observed time
The question is about the observed time cycles of 4 given elements.
OT of each cycles will be added together for each element. and divided by total number of cycles for each element.
1 4.1+4.0+4.6+4.1+4.1+4.1 = 25 / 6 = 4.17
2 -1.5 -2.4 -1.4 = 5.3 / 3 = 1.77
3 3.2+3.2+3.8+3.2+3.3+3.3 = 20 / 6 = 3.33
4 2.7+3.0+2.7+2.8+2.8+2.8 = 16.8 / 6 = 2.8
Each elements total cycle OT is added and then it is divided with each elements relevant number of cycles and this as a result provides the answer to the question
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Initially, Eleanor earns a salary of $200 per year and Darnell earns a salary of $100 per year. Eleanor lends Darnell $50 for one year at an annual interest rate of 16% with the expectation that the rate of inflation will be 5% during the one-year life of the loan. At the end of the year, Darnell makes good on the loan by paying Eleanor $58. Consider how the loan repayment affects Eleanor and Darnell under the following scenarios. Scenario 1: Suppose all prices and salaries rise by 5% (as expected) over the course of the year. In the following table, find Eleanor's and Darnell's new salaries after the 5% increase, and then calculate the $58 payment as a percentage of their new salaries. (Hint: Remember that Eleanor's salary is her income from work and that it does not include the loan payment from Darnell.) Value of Eleanor's new salary after one year The $58 payment as a percentage of Eleanor's new salary Value of Darnell's new salary after one year The $58 payment as a percentage of Darnell's new salary Scenario 2: Consider an unanticipated increase in the rate of inflation. The rise in prices and salaries turns out to be 14% over the course of the year rather than 5%. In the following table, find Eleanor's and Darnell's new salaries after the 14% increase, and then calculate the $58 payment as a percentage of their new salaries. Value of Eleanor's new salary after one year The $58 payment as a percentage of Eleanor's new salary Value of Darnell's new salary after one year The $58 payment as a percentage of Darnell's new salary An unanticipated increase in the rate of inflation benefits______ and harms_____ .
Answer:
Scenario 1: Suppose all prices and salaries rise by 5% (as expected) over the course of the year. In the following table, find Eleanor's and Darnell's new salaries after the 5% increase, and then calculate the $58 payment as a percentage of their new salaries.
Eleanor's new salary = $200 x 1.05 = $210
Darnell's new salary = $100 x 1.05 = $105
the $58 payment represents:
$58 / $210 = 27.62% of Eleanor's new salary
$58 / $105 = 55.24% of Darnell's new salary
Scenario 2: Consider an unanticipated increase in the rate of inflation. The rise in prices and salaries turns out to be 14% over the course of the year rather than 5%. In the following table, find Eleanor's and Darnell's new salaries after the 14% increase, and then calculate the $58 payment as a percentage of their new salaries.
Eleanor's new salary = $200 x 1.14 = $228
Darnell's new salary = $100 x 1.14 = $114
the $58 payment represents:
$58 / $228 = 25.44% of Eleanor's new salary
$58 / $114 = 50.88% of Darnell's new salary
An unanticipated increase in the rate of inflation benefits Darnell and harms Eleanor.
Big Byte Inc. sold 15,000 computers to the government of India. Instead of receiving cash, the company received refined petroleum as payment. This is an example of
Answer:
This is an example of barter
Explanation:
Barter in trade, is a term used to describe a system of exchange where goods and services are exchanged for other goods or services directly. It is used most often in international trading, when there is a financial crisis, or when currency is unstable.
Barter is advantageous when money is in short supply, and when traders cannot afford to store a short supply of money, especially during hyperinflation.
However, there are some challenges with barter, which includes:
that both parties might not have what each other need in goods (double coincidence of wants), there is no common measure of value and indivisibility of certain goods when only half the worth is to be exchanged.
Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $23,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit 2,450 Outstanding checks 1,107 Additionally, a $48 check written and recorded by the company correctly was recorded by the bank as a $84 deduction. The adjusted cash balance per the bank records should be:
Answer:
The adjusted cash balance per the bank records should be: $24,740.
Explanation:
The correct Cash balance can only be verified using a Bank Reconciliation Statement.
Thus prepare a Bank Reconciliation Statement to extract the updated Cash Book Balance.
Bank Reconciliation Statement
Note : The Bank Statement amount has to be adjusted for an overstatement of $36.
Balance as per updated Cash Book (Balancing figure) $24,740
Add Unpresented Cheques $1,107
Less Lodgements not yet credited ($2,450)
Balance as per Bank Statement ($23,361 + $36) $23,397
Conclusion :
The adjusted cash balance per the bank records should be: $24,740.
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 74,000 shares authorized, issued, and outstanding $ 740,000 Paid-in capital in excess of par value, common stock 226,000 Retained earnings 880,000 Total stockholders’ equity $ 1,846,000 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 5,200 shares of its own common stock at $27 per share on October 11. Sold 1,050 treasury shares on November 1 for $33 cash per share. Sold all remaining treasury shares on November 25 for $22 cash per share. 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.
Answer:
1, Journal entries
Date Account and explanation Debi$ Credit$
Treasury stock (5200*27) 140,400
Cash 140,400
(To record purchase treasury stock)
Cash (1,050*33) 34,650
Paid in capital from sale of treasury stock 6,300
Treasury stock (1,050*27) 28,350
(To record sale of treasury stock)
Cash (4,150*22) 91,300
Paid in capital from sale of 6,300
treasury stock
Retained earnings 14,450
Treasury stock (4,150*27) 112,050
(To record sale of treasury stock)
2. Revised equity section
Contributed capital
Common Stock 740,000
Paid in capital in excess of 226,000
par value-Common Stock
Total paid in capital 966,000
Retained earnings 880,000
Total 1,846,000
Less: Treasury stock (140,400)
Total Stockholder's equity $1,705,600
3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?
Complete Question:
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $19,427.
b. A deposit of $12,300, representing receipts of June 30, had been made too late to appear on the bank statement.
c. The bank collected $26,500 on a $25,000 note, including interest of $1,500.
d. A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
e. A check drawn for $195 had been erroneously charged by the bank as $915.
f. Bank service charges for June amounted to $55.
Answer:
Pala Medical Co.
Cash amount in the balance sheet = $189,281
Explanation:
a) Calculations:
Adjusted Cash balance at June 30, 20Y1
Cash balance $166,436
c) Note received by bank 25,000
c) Interest on the note 1,500
d) Returned check (3,600)
e) Bank charges (55)
Adjusted cash balance $189,281
b) Balance as per bank statement = $195,688
a. Checks outstanding totaled ($19,427)
b. A deposit of $12,300
e. Overstated cheque 720
Adjusted bank statement balance $189,281
c) Preparing a bank reconciliation helps to identify discrepancies between the cash book balance of Pala Medical Co and the company's bank statement balance. After the necessary adjustments, the two balances always agree and the adjusted figure is taken to the balance sheet.
Sandpiper Inc. has a division that manufactures a component that sells for $ 160$160 and has a variable cost of $ 30$30. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $ 20$20. What is the minimum transfer price if the division is operating at capacity?
Answer:
If the division is operating at full capacity and selling all the units that it produces, then it must treat the other division as a normal customer, so the selling price should be the same ($160 per unit). The company is currently making $110 in profits per unit sold (= $160 - $30 - $20 = $110).
If the division sold their products at a lower price, they would be losing money, and no division wants to lose money in order to benefit another division and make them earn higher profits.
If the division was operating below full capacity, then it could sell their products at a lower value.
In choosing between the range of alternative investments typically available to U.S. households, which of the following will play a role in influencing their selection of a particular investment type?
a. the expected rate of return, risk and liquidity of each kind of investment.
b. the interest rate and the expected rate of return.
c. the form of dividends, angel investor, future expectations.
Answer:
b. the interest rate and the expected rate of return.
Explanation:
For choosing the type of particular investment it is necessary to check the interest rate and the expected rate of return as every investor wants that there is a less interest rate, less or moderate risk but high rate of return and according to this they made the selection
Therefore the option b is correct
Since 2003, Walmart has been a proponent of RFID technology, and the company wanted all of its suppliers to make use of RFID technology.The most likely reason that Walmart is supporting this technology is to help them:
Answer:
Explanation:
The most likely reason for Walmart to support this technology is that it will allow them to track and process items from their suppliers at a much more efficient rate. Since RFID technology uses radio waves to read and capture information stored on a tag attached to an object, providing a unique identifier for an object. These unique tags allow each individual item to be tracked throughout the whole process from supplier to warehouse to client. Thus preventing losses and reducing costs.
Which of these countries has a command economy?
A. Cuba
B. France
C. United States
D. India
Answer:
A. Cuba
Explanation: Command economy , simply means planned economy
Some other countries with command economies are;
North KoreaThe former Soviet UnionYour firm (an Australian firm) makes a sale to a Japanese customer. The sale price is 200 million Japanese Yen payable in exactly three months from today. The current exchange rate is AUD/JPY = 90 (i.e., 1 Australian Dollar (AUD) is worth 90 Japanese Yen (JPY)). The current interest rates in Australia and Japan are 3% p.a. and 0.5% p.a., respectively.Given this information, please answer the following questions. Please label your answers according to parts.(a) Given that Australian Dollar is the domestic currency, what is the direct quote of the exchange rate between Australian Dollar and Japanese Yen ? Please round the final answer to five decimal places.(b) What is the theoretical current forward exchange rate quoted directly in terms of Australian Dollar (i.e. JPY/AUD) for delivery three months from today ? Show your input to the formula to arrive at the final answer. Please round the final answer to five decimal places.(c) How can the firm take advantage of any decreases in the exchange rate and also ensure that it receives at least Australian $2 million ? (Hint: Which derivative instrument can be used to achieve this objective?(d) Ignoring the cost of the derivative instrument to be used in part (c), what would be the outcome from hedging if the spot exchange rate in 3 month’s time is (i) AUD/JPY=150 and (ii) AUD/JPY = 50?
Answer:
An Australian Firm Selling to a Japanese Customer
a) Direct Quote of the Exchange Rate between Australian Dollar and Japanese Yen:
A$ 1 = ¥90
Meaning 1 Australian Dollar = 90 Japanese Yen.
Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90
b)Theoretical Current Forward Exchange Rate, quoted in terms of JPY/AUD for delivery in three months:
= Spot Rate x (1 + Japanese Interest Rate) / (1 + Australian Interest Rate) x 360/90
= ¥90 x (1 +0.005) / (1 +0.03) x 360/90 = ¥90 x 1.005/1.03 x 360/90
= ¥351.26214 =A$1
c) The Australian firm can take advantage of any decreases in the exchange rate and also ensure that it receives at least Australian $2 million by entering into a Currency Forwards Contract.
d) If the spot exchange rate in 3 month's time is:
(i) AUD/JPY=150, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the gain of:
Forward Exchange outcome in Australian Dollars = ¥200 million/ ¥150 =
A$ 1,333,333.33333
Hedging outcome minus Forward Exchange outcome
A$2 million - A$ 1,333,333.33333 = A$666,666.66667
(ii) AUD/JPY = 50, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the loss of:
Forward Exchange outcome = in Australian Dollars = ¥200 million/ ¥50 =
A$4 million
Hedging outcome minus Forward Exchange outcome
A$2 million - $4 million = -A$2million
Explanation:
a) Currency forwards contracts and future contracts are used to hedge the currency risk. For example, a company expecting to receive ¥200 million in 90 days, can enter into a forward contract to deliver the ¥200 million and receive equivalent Australian dollars in 90 days at an exchange rate specified today.
b) If A$ 1 = ¥90
Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90 in Australian Dollars.
1. A complaint of sexual harassment by a part-time worker in a hardware business was upheld when the Tribunal found that the employer had failed to take sufficient action in relation to the employee's report of inappropriate behaviour. The alleged sexual harassment included kissing, touching her breasts and leg, persistent requests to have a drink outside work hours despite an ongoing refusal, asking for cuddles, telephoning her at home and making repeated unsolicited sexual remarks. Based on any four ethical theories, explain how these acts constitute unethical behaviours at the workplace
Answer:
Sexual harassment is an unethical behavior both at or outside workplace and this can be explained using these ethical theories; DEONTOLOGY, UTILITARIANISM, INDIVIDUAL CHARACTER ETHICS, WORKPLACE INDIVIDUAL ETHICS
1. DEONTOLOGY: This ethical theory states that a person's actions are either bad or good depending on sets of rules, actions are morally right if it is in accordance with the rules, rights et cetera. in this case the behavior does not follow any rules and there is no right given to anybody to harass a woman. This theory shows that these acts were unethical.
2. UTILITARIANISM: this theory supports actions and behaviors that brings happiness and joy to others and frowns at actions that brings sadness and unhappiness to people around us. In this case the employee is harassed which makes her unhappy so this theory labels sexual harassment as an unethical behavior.
3. INDIVIDUAL CHARACTER ETHICS: It says that there are certain qualities of a person that determine their ethics, this includes; gratitude, benevolence, respect but in this case the individual has no such traits present in him because of his disrespect towards a woman, so this theory shows how unethical those acts were.
4. WORKPLACE INDIVIDUAL ETHICS: It says that the development or presence of certain traits show the work ethics of an individual and the traits are honor, work pride, trustworthiness but in this case he has proved that there is no such trait present in him so it constitute unethical behavior at workplace.