Answer:
A,)Unit of Account
B)Standard of Deferred Payment:
C)Store of Value
D)Medium of Exchange:
Explanation:
.
1. Unit of Account ( this explains that good can be measured for a value)
2. Standard of Deferred Payment( it explains that one can make purchase now and pay later)
3. Medium of Exchange( overall purchasing power is attributed to money)
4. Store of Value( Money is used to complete the transaction between the buyer and seller.
John only had $40 to spend and couldn't decide whether
to buy a new pair of jeans or to go to an amusement park.
He finally decided to spend his money on the amusement
park. What was the opportunity cost of his decision?
No opportunity cost was involved.
O $40
Trip to amusement park
New pair of jeans
Answer:
The opportunity cost of John's decision is the benefit that he could have derived from the:
New pair of jeans,
which he did not choose to buy.
Explanation:
In this scenario, John is faced with two alternative decisions. By choosing to spend his limited financial resource, $40, on the amusement park, the forgone benefit that would have been derived by choosing a new pair of jeans is lost by the cost of visiting the amusement park. The concept of opportunity cost helps in clarifying economic decisions among alternative courses of action, enabling the decision-maker to reach a favorable decision.
THESE ARE TRUE OR FALSE!! PLEASE HELP ASAP!! WILL MARK BRAINLIEST!!
1. Economic growth refers to a steady increase in the production of goods and services in an
economic system.
2. There are over 120 million workers in the U.S. economy.
3. The total dollar value of all final goods and services produced in a country during one year
is called the Gross Domestic Product (GDP).
4. The GDP in our economy has declined steadily for the past few years.
5. The base year used in comparing GDPs adds confusion to the comparison.
6. GDP per capita is found by dividing total GDP by the total work force.
7. Both worker training and management techniques have helped improve our productivity.
8. Changes in the business cycle form a pattern of good times to bad times and back.
9. When the economy slows down, it enters a phase of the business cycle known as recession.
10. Recovery in the business cycle occurs after a period of inflation.
Answer:
hi
Explanation:
1. True
2. True
3. True
4. False
5. False
6. False
7. False
8. True (not sure)
9. True
10. False
Have a good day!
If a sales tax is the same for all goods sold within a given area, why are sales taxes considered regressive?
High-income earners avoid paying sales tax through deductions.
Sales taxes tend to be higher in areas with large low-income populations.
Sales tax disproportionately affects low-income earners.
Low-income earners make purchase decisions based exclusively on sales tax.
Answer:
the answer is c on edge
Explanation:
Read each of the four activities and put them in their proper sequence. Be advised that the action listed is not the only action needed in that step. Other activities may be included in each step. Step Activities Change the oil, rotate the tires, and replace the windshield wipers as needed. Negotiate the lowest price by getting bids from at least three dealers and hold firm to your target price when selecting the source of your car. Identify the car that meets your needs and wants in terms of size, styling, performance, and safety and obtain online quotes for three target cars. Determine how expensive a car you can afford.
Answer:
Step Activities
1 Determine how expensive a car you can afford.
2. Identify the car that meets your needs and wants in terms of size, styling, performance, and safety and obtain online quotes for three target cars.
3. Negotiate the lowest price by getting bids from at least three dealers and hold firm to your target price when selecting the source of your car.
4. Change the oil, rotate the tires, and replace the windshield wipers as needed.
Explanation:
The steps above are arranged to ensure that the next step follows from the last sequentially. The sequence started with making purchase decisions to maintenance activities after the purchase of a car had been completed successfully.
Which of the following are ways to build credibility for your report? Check all that apply.
Cite supporting statistics and their sources.
Provide lengthy explanations.
Provide lengthy explanations and pontificate.
Present opinions as fact.
Use authoritative quotes to emphasize the seriousness of the problem.
Consider the following data for a closed economy: Y = $ trillion C = $ trillion I = $ trillion TR = $ trillion T = $ trillion Use the data to calculate the following. (Enter your responses as integers.) a. Private saving: $ nothing trillion. b. Public saving: $ nothing trillion. c. Government purchases: $ nothing trillion. d. The government budget balance is $ nothing trillion and as a result the government budget is in ▼ surplus balance deficit .
Answer:
a. Private saving = $3 trillion
b. Public saving = $3 trillion
c. G = Government purchases = $0
d. The government budget balance is $3 trillion and as a result the government budget is in surplus.
Explanation:
Note: This question is not complete as the data are omitted. The complete question is therefore provided before answering the question as follows:
Consider the following data for a closed economy:
Y = $12 trillion
C = $6 trillion
I = $3 trillion
TR = $1 trillion
T = $4 trillion
Use the data to calculate the following. (Enter your responses as integers.) a. Private saving: $ nothing trillion.
b. Public saving: $ nothing trillion.
c. Government purchases: $ nothing trillion.
d. The government budget balance is $ nothing trillion and as a result the government budget is in ▼ surplus balance deficit .
The explanation of the answer is now given as follows:
Note that:
Y = national income (GDP) = $12 trillion
C = consumption = $6 trillion
I = investment = $3 trillion
TR = Transfers paid by the government to the consumers = $1 trillion
T = Taxes paid by consumers = $4 trillion
a. Private saving: $ nothing trillion.
Private saving = Y − T + TR − C = $12 trillion - $4 trillion + $1 trillion - $6 trillion = $3 trillion
b. Public saving: $ nothing trillion.
Let G = Government purchases
Therefore, we have:
Public saving = T − G − TR = $4 trillion - $0 - $1 trillion = $3 trillion
c. Government purchases: $ nothing trillion.
National saving = Private saving + Public saving = $3 trillion + $3 trillion = $6 trillion
The Government purchases (G) can therefore be derived using the following equation:
National saving = Y - C - G ................. (1)
Substituting the relevant values into equation (1) and solve for G, we have:
$6 trillion = $12 trillion - $6 trillion - G
G = $12 trillion - $6 trillion - $6 trillion
G = $0
d. The government budget balance is $ nothing trillion and as a result the government budget is in ▼ surplus balance deficit .
In economics, Public saving is also know as Budget surplus. Therefore, we have:
Public saving = Budget surplus = $3 trillion
Therefore, the government budget balance is $3 trillion and as a result the government budget is in surplus.
Baker Industriesâ net income is $23000, its interest expense is $6000, and its tax rate is 45%. Its notes payable equals $24000, long-term debt equals $80000, and common equity equals $250000. The firm finances with only debt and common equity, so it has no preferred stock.
Required:
What are the firmâs ROE and ROIC?
Answer:A) ROE=9.2%
B)ROIC =7.43%
Explanation:
Given that
Net income = $23,000 ,
Interest expense = $6000 ,
Tax rate = 45%
Notes payable = $24,000 ,
Longterm debt = $80,000 ,
Common equity = $250,000
A) ROE is calculated as Net income/ Common equity
= 23000/250,000 = 0.092= 9.2%
B.) ROIC = EBIT X (1- Tax rate ) / Invested capital
So we have that Net income before Tax = Net Income X 100/ 100-tax rate
23000x 100 /100-45
2300000/55
=$41,818.18
So that EBIT becomes = Net income before tax + Interest
= $41,818.18 + 6000 = $47,818.18
And
Invested capital = Notes payable + Longterm debt + Common equity
= 24,000+80,000+250,000
=$354,000
Therefore, ROIC = EBIT X (1- Tax rate ) / Invested capital
$47,818.18 X(1-0.45)/354,000
$47,818.18 x 0.55 / 354000
26,299.999/354,000
=0.07429
=7.429%
Rounding up becomes =7.43%
Use the WS and PS relations to examine the effects of the following events on the natural rate of unemployment and on the real wage. Be sure to explain the effects of the event on the WS and PS relations. Do not post problem sets on other places.
a. A new U.S. trade policy with a hope to protect American workers decreases international trade and makes product markets less competitive in the U.S.
b. A new law that bans the formation of labor unions has been passed.
Answer:
Attached below is the WP and WS graph
A) since the new U.S trade policy decreases international trade and makes product markets less competitive in the U.S . hence this affects the PS equation and PS curve. PS curve ( W/P ) = 1 ( 1 + u ) . here U > 0 due to the decrease in market competition. hence the PS curve will shift downward from PS to PS’ and the equilibrium points will shift from A to A’. while the real wage will be lower i.e. from r to r’ and the natural rate of unemployment will be higher i.e. from Un to Un' ( image 1 )
B) When the new law that bans the formation of labor unions has been passed the power of the union weakens and this will affect wage setting (WS) curve. Hence The WS curve will shift leftward from WS to WS’ also, the equilibrium point will change from B to B’. Since the PS curve is horizontal, at this new level of equilibrium, the real wages will remain unchanged, while the natural rate of unemployment will be reduced from Un to Un’.
Explanation:
A) since the new U.S trade policy decreases international trade and makes product markets less competitive in the U.S . hence this affects the PS equation and PS curve. PS curve ( W/P ) = 1 ( 1 + u ) . here U > 0 due to the decrease in market competition. hence the PS curve will shift downward from PS to PS’ and the equilibrium points will shift from A to A’. while the real wage will be lower i.e. from r to r’ and the natural rate of unemployment will be higher i.e. from Un to Un' ( image 1 )
B) When the new law that bans the formation of labor unions has been passed the power of the union weakens and this will affect wage setting (WS) curve. Hence The WS curve will shift leftward from WS to WS’ also, the equilibrium point will change from B to B’. Since the PS curve is horizontal, at this new level of equilibrium, the real wages will remain unchanged, while the natural rate of unemployment will be reduced from Un to Un’.
Patty and Bob were in a romantic relationship. While they were seeing each other, Patty and Bob acquired an electronics service center, Bob paying $60,000 and Patty running all facets of the center. The center becomes very profitable. Two years later, when the romantic relationship ended, Bob goes to court for a declaration that they had no partnership because they did not have a written partnership agreement and Patty contributed no cash, she was merely an employee. Did they have a partnership
Answer:
Most states accept oral agreements when forming partnerships. This would not be an exception. the fact that Patty didn't contribute any money doesn't mean that she cannot be considered a partner. Her contribution might be her labor. Unless the partnership previously recorded Patty as an employee, then she can claim being a partner. Since no written agreement was made, profits must be divided equally.
Explanation:
The decision regarding the partnership between Patty and Bob would be as follows:
Yes, they have been partners where one has employed capital while the other has employed his entrepreneurship.
What is Partnership?A Partnership is described as an acquaintance and association that exists between two or more individuals in order to run a business.
In the given situation, although there is no written agreement between them, Bob will have an equal share in the profit of the business.
The reason behind this is that one employed his capital while the other employed his skills and efforts(entrepreneurship).
Thus, they would be considered as partners as he was not hired as an employee in the company.
Learn more about "Declaration" here:
brainly.com/question/985067
The following trial balance was taken from the records of Fairport Manufacturing Company at the beginning of 2019:
Cash $ 20,000
Raw materials inventory 1,800
Work in process inventory 2,400
Finished goods inventory 4,200
Property, plant, and equipment 15,000
Accumulated depreciation $ 6,000
Common stock 16,800
Retained earnings 20,600
Total $ 43,400 $ 43,400
Transactions for the Accounting Period:
Fairport purchased $11,400 of direct raw materials and $600 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $10,800 of direct raw materials had been used for production during the period. The use of indirect materials is determined at the end of the year by physically counting the supplies on hand.
By the end of the year, $10,500 of the accounts payable had been paid in cash.
During the year, direct labor amounted to 950 hours recorded in the Wages Payable account at $21 per hour.
By the end of the year, $18,000 of wages payable had been paid in cash.
At the beginning of the year, the company expected overhead cost for the period to be $12,600 and 1,000 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 950 for the year.
Selling and administrative expenses for the year amounted to $1,800 paid in cash.
Utilities and rent for production facilities amounted to $9,300 paid in cash.
Depreciation on the plant and equipment used in production amounted to $3,000.
There was $24,000 of goods completed during the year.
There was $25,500 of finished goods inventory sold for $36,000 cash.
A count of the production supplies revealed a balance of $178 on hand at the end of the year.
Any over- or underapplied overhead is considered to be insignificant.
Required
a) Prepare T-accounts with the beginning balances shown in the preceding list and record all transactions for the year including closing entries in the T-accounts.
b) Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet.
Answer:
Fairport Manufacturing Company
T-accounts
Cash
Account Titles Debit Credit
Beginning balance $ 20,000
Accounts payable $10,500
Wages payable 18,000
Selling and distribution expense 1,800
Utilities and Rent for production 9,300
Sales Revenue 36,000
Ending balance $16,400
Raw materials inventory
Account Titles Debit Credit
Beginning balance $ 1,800
Accounts Payable 11,400
Work-in-Process $10,800
Ending balance $2,400
Work in process inventory
Account Titles Debit Credit
Beginning balance $ 2,400
Raw materials 10,800
Wages Payable 19,950
Overhead Applied 11,970
Finished Goods Inventory $24,000
Ending balance $21,120
Finished goods inventory
Account Titles Debit Credit
Beginning balance $ 4,200
Work-in-Process 24,000
Cost of goods sold $25,500
Ending balance $2,700
Property, plant, and equipment
Account Titles Debit Credit
Beginning balance $ 15,000
Accumulated depreciation
Account Titles Debit Credit
Beginning balance $ 6,000
Depreciation expense 3,000
Ending Balance $9,000
Accounts Payable
Account Titles Debit Credit
Raw materials $12,000
Cash $10,500
Ending balance $1,500
Wages Payable
Account Titles Debit Credit
Work-in-Process $19,950
Cash $18,000
Ending balance $1,950
Common stock
Account Titles Debit Credit
Beginning balance $ 16,800
Retained earnings
Account Titles Debit Credit
Beginning balance $ 20,600
Production Supplies
Account Titles Debit Credit
Accounts Payable $600
Overhead $422
Ending balance $178
Overhead Expenses
Account Titles Debit Credit
Work-in-Process $11,970
Cash (Utilities) 9,300
Depreciation expense 3,000
Production supplies 422
Cost of goods sold (Underapplied) 752
Sales Revenue
Account Titles Debit Credit
Cash $36,000
Income Summary $36,000
Cost of Goods Sold
Account Titles Debit Credit
Finished Goods Inventory $25,500
Overhead (underapplied) 752
Income Summary $26,252
Selling and Distribution Expense
Account Titles Debit Credit
Cash $1,800
Utilities and Rent
Account Titles Debit Credit
Cash $9,300
Overhead $9,300
Depreciation Expense - Plant & Equipment
Account Titles Debit Credit
Accumulated Depreciation $3,000
Overhead $3,000
b) Schedule of Cost of Goods Manufactured and Sold:
WIP Beginning Inventory $ 2,400
Raw materials 10,800
Direct labor 19,950
Overhead Applied 11,970
Cost of goods in production $45,120
Ending WIP Inventory 21,120
Cost of manufactured $24,000
Finished Goods Inventory $ 4,200
Cost of manufactured 24,000
Cost of goods available $28,200
Ending FG Inventory 2,700
Cost of goods sold $25,500
Income Statement for the year ended December 31, 2019:
Sales Revenue $36,000
Cost of Goods Sold 26,252
Gross profit 9,748
Selling and distribution exp. 1,800
Net income $7,948
Retained Earnings, January 1, 2019 $20,600
Net income 7,948
Retained Earnings, December 31, $28,548
Balance Sheet as of December 31, 2019:
Assets:
Cash $ 16,400
Raw materials inventory 2,400
Work in process inventory 21,120
Finished goods inventory 2,700
Production Supplies 178 $42,798
Property, plant, and equipment 15,000
Accumulated depreciation 9,000 $6,000
Total assets $48,798
Liabilities and Equity:
Accounts Payable $1,500
Wages Payable 1,950
Total liabilities $3,450
Common stock $16,800
Retained earnings 28,548 $45,348
Total liabilities and equity $48,798
Explanation:
a) Data and Calculations:
Trial Balance at January 1, 2019:
Account Titles Debit Credit
Cash $ 20,000
Raw materials inventory 1,800
Work in process inventory 2,400
Finished goods inventory 4,200
Property, plant, and equipment 15,000
Accumulated depreciation $ 6,000
Common stock 16,800
Retained earnings 20,600
Total $ 43,400 $ 43,400
Analysis of Transactions for the period:
1. Raw materials $11,400 Production Supplies $600 Accounts payable $12,000
2. Work-in-Process $10,800 Raw materials $10,800
3. Accounts payable $10,500 Cash $10,500
4. Work-in-Process $19,950 Wages Payable $19,950
5. Wages Payable $18,000 Cash $18,000
6. Work-in-Process $11,970 Overhead Applied $11,970 ($12,600 * 950/1,000)
7. Selling and Administrative expense $1,800 Cash $1,800
8. Utilities and Rent for production $9,300 Cash $9,300
9. Depreciation Expense-Plant and Equipment $3,000 Accumulated Depreciation $3,000
10. Finished Goods Inventory $24,000 Work-in-Process $24,000
11. Cost of Goods Sold $25,500 Finished Goods Inventory $25,500
12. Cash $36,000 Sales Revenue $36,000
13. Overhead $422 Production Supplies $422 ($600 - $178)
14. Cost of Goods Sold $752 Underapplied Overhead $752
Adjusted Trial Balance at December 31, 2019:
Account Titles Debit Credit
Cash $ 16,400
Raw materials inventory 2,400
Work in process inventory 21,120
Finished goods inventory 2,700
Property, plant, and equipment 15,000
Accumulated depreciation $ 9,000
Accounts Payable 1,500
Wages Payable 1,950
Common stock 16,800
Retained earnings 20,600
Production Supplies 178
Sales Revenue 36,000
Cost of Goods Sold 26,252
Selling and distribution exp. 1,800
Totals $85,850 $85,850
On January 1, 2019, Lightfoot Corporation issues 10%, 5-year bonds with a face value of $275,000 when the effective interest rate is 9%. Interest is to be paid semiannually on June 30 and December 31. Prepare calculations to prove that the selling price of the bonds is $285,880.07. Click here to access the tables to use with this exercise. Round your answers to two decimal places, if necessary. Present value of principal$fill in the blank 1 Present value of interestfill in the blank 2 Selling price
Answer:
Face Value of Bonds = $275,000
Annual Coupon Rate = 10%
Semiannual Coupon Rate = 5%
Semiannual Coupon = 5% * $275,000 = $13,750
Time to Maturity = 5 years
Semiannual Period = 10
Annual Interest Rate = 9%
Semiannual Interest Rate = 4.5%
Present Value of Principal = $275,000 * PV of $1 (4.50%, 10)
Present Value of Principal = $275,000 * 0.643928
Present Value of Principal = $177,080.20
Present Value of Interest = $13,750 * PVA of $1 (4.50%, 10)
Present Value of Interest = $13,750 * 7.912718
Present Value of Interest = $108,799.87
Cross-Check
Selling Price = Present Value of Principal + Present Value of Interest = $177,080.20 + $108,799.87 = $285,880.07
Channing Corporation makes two products (A1 and B2) that require direct materials, direct labor, and overhead. The following data refer to operations expected for next month. A1 B2 Total Revenue $ 170,000 $ 510,000 $ 680,000 Direct material 65,000 130,000 195,000 Direct labor 54,000 128,250 182,250 Overhead: Direct-material related 42,900 Direct-labor related 40,095 Required: Channing uses a two-stage cost allocation system, It uses direct-material costs to allocate direct-materials related overhead and direct-labor costs to allocate direct-labor related overhead costs. a. Compute the direct-material related overhead rate for next month. b. Compute the direct-labor related overhead rate for next month. c. What is the total overhead allocated to product A1 next month
Answer:
Channing Corporation
a. The direct-material related overhead rate = $0.22
b. The direct-labor related overhead rate = $0.22
c. The total overhead allocated to product A1 next month = $26,100
Explanation:
a) Data and Calculations:
Products A1 B2 Total
Total Revenue $ 170,000 $ 510,000 $ 680,000
Direct material 65,000 130,000 195,000
Direct labor 54,000 128,250 182,250
Overhead:
Direct-material related 42,900
Direct-labor related 40,095
Total overhead $82,995
a. Direct-material related overhead rate:
Overhead = $42,900
Total direct materials costs = $195,000
Overhead rate = $42,900/$195,000 = $0.22
b. Direct-labor related overhead rate:
Overhead = $40,095
Total direct labor costs = $182,250
Overhead rate = $40,095/$182,250 = $0.22
c. Total overhead allocated to product A1:
Direct materials related overhead = $14,300 ($0.22 * $65,000)
Direct labor related overhead = 11,800 ($0.22 * $54,000)
Total overhead allocated = $26,100
elisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total Company Division L Division Q Sales $528,000 $142,000 $386,000 Variable expenses 319,460 72,420 247,040 Contribution margin 208,540 69,580 138,960 Traceable fixed expenses 109,920 29,400 80,520 Segment margin 98,620 $ 40,180 $ 58,440 Common fixed expenses 55,370 Net operating income $ 43,250 The break-even in sales dollars for Division Q is closest to:
Answer:
the break even point in sales dollars is $223,667
Explanation:
The computation of the break even point in sales dollars is shown below:
= Fixed cost ÷ contribution margin ratio
= $80,520 ÷ ($138,960 ÷ $386,000)
= $80,520 ÷ 36%
= $223,667
Hence, the break even point in sales dollars is $223,667
Use the following information: Accounts receivable, beginning of year: $16,000 Allowance for Uncollectible Accounts, beginning of year: $1,200 Net credit sales during the year: $105,000 Collections on accounts receivable during the year: $93,000 Delinquent accounts written off during the year: $1,600 Assume all accounts have normal balances. If bad debts are estimated to be 10% of ending accounts receivable, the adjusting entry to recognize bad debts would debit bad debt expense for
Answer:
Bad debts expense is $ 2240
Explanation:
Given that;
Accounts receivable, beginning of year = $16,000
Allowance for Uncollectible Accounts, beginning of year = $1,200
Net credit sales during the year = $105,000
Collections on accounts receivable during the year = $93,000
Delinquent accounts written off during the year: $1,600
If bad debts are estimated to be 10% of ending accounts receivable, the adjusting entry to recognize bad debts would debit bad debt expense for;
Account Receivable, ending = ( Accounts Receivable, beginning + Net credit sales - Collections on account - Accounts written off )
Account Receivable, ending = ( $16,000 + $105,000 - $93,000 - $1,600 )
Account Receivable, ending = $ 26,400
Estimated accounts uncollectible = (26,400 × 10%) = 2640
Allowance for uncollectible accounts debit balance = ( 1600 - 1200) = 400
so
Bad debts expense = Estimated accounts uncollectible - Allowance for uncollectible accounts debit balance
we substitute
Bad debts expense = (26,400 × 10%) - ( 1600 - 1200)
Bad debts expense = 2640 - 400
Bad debts expense = $ 2240
Therefore, Bad debts expense is $ 2240
Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation of the returns for large-company stocks and T-bills over this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. What was the average risk premium over this period
Answer:
a. Arithmetic average returns for large company stocks:
= (0.0389 + 0.1414 + 0.1913 - 0.1455 - 0.3204 + 0.3737) / 6
= 4.66%
Arithmetic average returns for T-bills:
= (0.0581 + 0.0247 + 0.0370 + 0.0713 + 0.0518 + 0.0616) / 6
= 0.05075
= 5.08%
b. First find variance.
Variance of large company stock:
Variance is divided by n - 1
= {(0.0389 - 0.0466)² + (0.1414 - 0.0466)² + (0.1913 - 0.0466)² + (-0.1455 - 0.0466)² + (-0.3204 - 0.0466)² + (0.3737 - 0.0466)²} / 5
= 0.0617140
Standard deviation = √0.0617140
= 24.84%
Variance of T-bills
= {(0.0581 - 0.0508)² + (0.0247 - 0.0508)² + (0.0370 - 0.0508)² + (0.0713 - 0.0508)² + (0.0518 - 0.0508)² + (0.0616 - 0.0508)²} / 5
= 0.0002926
Standard deviation = √0.0002926
= 1.71%
c. Risk Premiums:
Year 1 Year 2 Year 3
= 3.89% - 5.81% = 14.14% - 2.47% = 19.13% - 3.70%
= -1.92% = 11.67% = 15.43%
Year 4 Year 5 Year 6
= -14.55% - 7.13% = -32.04% - 5.18% =37.37% - 6.16%
= -21.68% = -37.22% = 31.21%
Average risk premium:
= (-0.0192 + 0.1167 + 0.1543 - 0.2168 - 0.3722 + 0.3121) / 6
= -0.42%
g At the beginning of the month, the Painting Department of Skye Manufacturing had 39,000 units in inventory, 75% complete as to materials, and 20% complete as to conversion. During the month the department started 134,000 units and transferred 148,500 units to the next manufacturing department. At the end of the month, the department had 24,500 units in inventory, 40% complete as to materials and 15% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Painting Department. Group of answer choices 158,300 materials; 152,175 conversion. 152,175 materials; 158,300 conversion. 158,300 materials; 144,375 conversion. 129,050 materials; 152,175 conversion. 129,050 materials; 144,375 conversion.
Answer:
Skye Manufacturing
Painting Department
Equivalent units:
158,300 materials; 152,175 conversion
Explanation:
a) Data and Calculations:
Beginning WIP = 39,000 units; Degree of completion: 75% materials and 20% conversion.
Units started during the month = 134,000
Units completed and transferred out = 148,500
Ending units of WIP = 24,500
Equivalent units, using the weighted average method of process costing:
Units Materials Conversion
Units transferred out 148,500 148,500 (100%) 148,500 (100%)
Ending Work in Process 24,500 9,800 (40%) 3,675 (15%)
Total equivalent units 158,300 152,175
It is now January 1, 2018, and you are considering the purchase of an outstanding bond that was issued on January 1, 2016. It has a 9% annual coupon and had a 20-year original maturity. (It matures on December 31, 2035.) There is 5 years of call protection (until December 31, 2020), after which time it can be called at 109-that is, at 109% of par, or $1,090. Interest rates have declined since it was issued, and it is now selling at 114.12% of par, or $1,141.20. What is the yield to maturity
Answer:
YTM is 7.54%.
Explanation:
The yield to maturity can be calculated using the following RATE function in Excel:
YTM = RATE(nper,pmt,-pv,fv) .............(1)
Where;
YTM = yield to maturity = ?
nper = number of periods = number of years to maturity = original maturity number of years - number of years between January 1, 2016 and January 1, 2018 = 20 - 2 = 18
pmt = annual coupon payment = face value * annual coupon rate = 1000 * 9% = 90 (Note: This is an inflow to the bondholder and it is therefore a positive figure).
pv = present value = current bond price = -1141.20 (Note: This is an outflow to the buyer of the bond and it is therefore a negative figure).
fv = face value of the bond = 1000 (Note: This is an inflow to the bondholder and it is therefore a positive figure).
Substituting the values into equation (1), we have:
YTM = RATE(18,90,-1141.20,1000) ............ (2)
Inputting =RATE(18,90,-1141.20,1000) into excel (Note: as done in the attached excel file), the YTM is obtained as 7.54%.
Therefore, YTM is 7.54%.
At December 31 of the current year, Cullen Corporation had a number of items that were not reflected in its accounting records. Maintenance and repair costs of $770 were incurred but not paid. Utilities costing $240 were used but not paid, and use of a warehouse space worth $1,900 was provided to a tenant who had not been billed as of the end of the month. Record the required adusting entries related to these events.
Answer:
Cullen Corporation
Adjusting Journal Entries:
Debit Maintenance and Repairs Expense $770
Credit Accounts Payable $770
To record costs incurred but not yet paid for.
Debit Utilities Expense $240
Credit Utilities Payable $240
To record utilities expense incurred but not yet paid for.
Debit Rent Receivable $1,900
Credit Rent Revenue $1,900
To record rent revenue due.
Explanation:
a) Data and Analysis:
Maintenance and Repairs Expense $770 Accounts Payable $770
Utilities Expense $240 Utilities Payable $240
Accounts Receivable $1,900 Rent Revenue $1,900
The adjusting entries related to these events are shown in the image below.
What is adjustment entries?Adjusting entries are those journal entries that are normally made at the end of an accounting period.
It is made at the end of the accounting period to assign income and expenditure to the time period in which they actually happened or occurred.
Required information according to the given case:
Maintenance and Repairs Expense is $770, Accounts Payable $770, Utilities Expense is $240 Utilities Payable is $240, Accounts Receivable is $1,900, and Rent Revenue is $1,900.
Therefore, the adjustment entries of the above transactions are given in the image below.
To learn more about the adjustment entries, refer to:
https://brainly.com/question/14697723
Organizations exchange information internally and externally. External messages go to customers, vendors, the government, and other business partners. Internal messages travel upward to supervisors, downward to employees, and horizontally among workers. Understanding the different types of business messages and following the 3-x-3 writing process will help you write more effective professional messages.
Match the message content area with the correct types of messages.
a. Sales pitches, requests for favors
b. Replies, goodwill messages, direct claims
c. Bad news, refusals
1. persuasive
2. positive
3. negative
Answer:
1. persuasive: a. Sales pitches, requests for favors
2. positive: b. Replies, goodwill messages, direct claims
3. negative: c. Bad news, refusals
Explanation:
a) A persuasive speech is one whose goal is to convince someone of something, so it is correct to say that in an organizational message where there are sales speeches and requests for favors, there is a need for a persuasive speech, whose message seeks to convince the sender of the benefits of make a sale for example.
b) A positive speech is one whose intention is to motivate, give praise, offer positive feedback, etc. Therefore, in responses, messages of goodwill, direct claims, positive speech will help in better understanding of the sender and in the positive positioning of the company.
c) A negative discourse occurs when there is bad news to be shared, it is necessary that this message is written in a soft way, with damping words and indirectly, because this way the acceptability can be greater.
tock J has a beta of 1.38 and an expected return of 14.06 percent, while Stock K has a beta of .93 and an expected return of 11 percent. You want a portfolio with the same risk as the market. a.What is the portfolio weight of each stock? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)b.What is the expected return of your portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
By definition, we know that Beta for market Portfolio is 1. By this, we need weighted average of J and K Beta as 1
1.38x + 0.93(1-x) = 1
1.38x + 0.93-0.93x = 1
0.45x = 0.07
x = 0.07/0.45
x = 0.16
So, we need 0.16 of J and 0.84 of K.
Weighted Average of J = 0.16 and K = 0.84.
Further Expected return of portfolio will be:
Weight Expected Return Expected Return of Portfolio
J 0.16 14.06 2.25
K 0.84 11 9.24
Total Portfolio Expected Return 11.49
Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $135 per unit. Its standard cost per unit produced is $105 and its selling and administrative expenses totaled $235,000. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
Materials price variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,500 F
Materials quantity variance . . . . . . . . . . . . . . . . . . . . . . . . $10,200 U
Labor rate variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,500 U
Labor efficiency variance . . . . . . . . . . . . . . . . . . . . . . . . . . $4,400 F
Fixed overhead budget variance . . . . . . . . . . . . . . . . . . . . . $2,500 F
Fixed overhead volume variance . . . . . . . . . . . . . . . . . . . . $12,000 F
Required:
1. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much?
2. Using Exhibit 10B-5 as a guide, prepare an income statement for the year.
Dylan Corporation
Income Statement
For the year ended 12/31/xx
dollars in thousands
Sales 5270
Cost of goods sold at stanadard 4335
Total variance adustments 36
Cost of goods sold 4371
Gross margin 899
Selling and administrative expenses 450
Net operating income 449
Answer:
See below
Explanation:
1. Computation of cost of goods sold
Materials Price Variance
$6,500 F
Materials Quantity Variance
$10,200 U
Labor Rate Variance
$3,500 U
Labor Efficiency Variance
$4,400 F
Fixed Overhead budget variance
$2,500 F
Fixed Overhead volume variance
$12,000 F
Cost of goods sold
$11,700
2. Net operating statement
Sales[$153 × 10,000]
$1,530,000
Less: Cost of goods sold
Cost of goods sold at standard [$105 × 10,000]
$1,050,000
Cost of good sold adjusted
($11,700)
Variance adjustment Balance
$1,038,300
Gross profit
$491,700
Less selling and administrative expenses
($235,000)
Net operating income
$256,700
Place the following steps for developing a credit policy in the correct order of process: A: The company hopes that few customers will miss payments, so it decides to take no action to collect bad debts. B: The company decides that payments must be made within 45 days. C: The company decides that it's willing to lose sales in exchange for less bad debt risk. B, C, A C, A, B B, A, C C, B, A
Answer: C, B, A
Explanation:
First the company would decide that it would like less bad debt risk and would be willing to risk losing sales by instituting tougher restrictions on credit sales.
One such restriction would be that payments must be made within 45 days.
With this restriction, the firm will hope that less doubts are defaulted on so it will not take any action to collect bad debts.
The marginal product of an input is the addition to total output due to the addition of the last unit of an input, holding all other inputs constant. the addition to total output due to the addition of one unit of all other inputs. total product divided by the amount of the input used to produce this amount of output. the addition to total output that adds nothing to profit. the addition to total output that adds nothing to total revenue.
Answer:
is the addition to total output due to the addition of the last unit of an input, holding all other inputs constant.
Explanation:
The marginal product of an input is the change in total output as a result of the change in output by 1 unit
For example, the table below is the total product of labour
amount of labour output
1 10
2 20
3 40
the marginal product of the 3rd worker = (40 - 20) / (3 - 2) = 20
marginal product of the second worker = (20 - 10) / (2 -1 ) = 10
Average output = total output / labour
On January 20 of the current year, Zealand and Menandez form ZM LLC. Their contributions to the LLC are as follows: Adjusted Basis Fair Market Value From Zealand: Cash $82,000 $82,000 Accounts receivable $0 $214,000 Inventory $19,000 $26,000 From Menandez: Cash $201,000 $201,000 Temporary Investments $121,000 $121,000 Within 30 days of formation, ZM collects the receivables and sells the inventory for $26,000 cash. ZM realized the following income in the current year from these transactions: a. Ordinary income of $fill in the blank 2 from collecting cash basis accounts receivable. b. Ordinary income of $fill in the blank 4 from sale of inventory.
Answer:
Ordinary Income of $214,000 from collecting cash basis accounts receivable
Ordinary Income of $7,000 from sale of Inventory.
Explanation:
a. Adjusted basis of Accounts receivable = $0
Fair Market Value of Accounts Receivable = $214,000
Cash realized from Accounts Receivable = $214,000
Ordinary Income from collecting cash basis accounts receivable = $214,000
It is ordinary income since the Accounts receivable are taxed only after they are collected.
b. Adjusted basis of Inventory = $19,000
Fair Market Value of Inventory = $26,000
Cash realized from sale of Inventory = $26,000
Ordinary Income from sale of Inventory = Cash received from sale - Adjusted basis = $26,000 - $19,000 = $7,000
It is ordinary income since the Inventory only recognizes the adjusted basis i.e. the amount paid for inventory and any income recognized on sale of inventory is taxed accordingly.
Nancy has just purchased a new house that is in need of new flooring. Use the measurements given on the floor plans to the right to answer the following question. The cost of carpeting is $ 10.99 per square foot. This price includes the cost of installation. Determine the cost for Nancy to have this carpeting installed in all three bedrooms.
Answer:
The cost for Nancy to have this carpeting installed in all three bedrooms = $5934.6
Explanation:
P.S - The floor plan is given below :
Given - Nancy has just purchased a new house that is in need of new flooring. Use the measurements given on the floor plans to the right to answer the following question. The cost of carpeting is $ 10.99 per square foot. This price includes the cost of installation.
To find - Determine the cost for Nancy to have this carpeting installed in all three bedrooms.
Proof -
Given that,
Measurement of Bedroom 1 - 11' × 15'
Measurement of Bedroom 2 - 11' × 15'
Measurement of Bedroom 3 - 10' × 21'
Now,
Area of Bedroom 1 = 11 × 15 = 165 ft²
Area of Bedroom 2 = 11 × 15 = 165 ft²
Area of Bedroom 3 = 10 × 21 = 210 ft²
So,
Total carpeted Area = 165 + 165 + 210 = 540 ft²
Now,
Cost of carpeting 1 square foot = $10.99
⇒Cost of carpeting 540 square foot = 540 × 10.99 = $5934.6
∴ we get
The cost for Nancy to have this carpeting installed in all three bedrooms = $5934.6
g Profit margins tend to peak during the growth stage of the Product Life Cycle. This is due to ___________________.this being the stage with the most intense competitionthe fact that companies don't spend on advertising in this stagedeclining unit manufacturing costs while prices can remain highthe fact that sales volumes are starting to declineprices tend to be the lowest in this stage
Answer:
Declining unit manufacturing costs while prices can remain high.
Explanation:
A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.
Generally, there are four (4) stages in the product-life cycle;
1. Introduction.
2. Growth.
3. Maturity.
4. Decline.
Generally, the growth stage is the stage where the product gains acceptance from the consumer and there is a significant increase in demand and sales.
Profit margins tend to peak during the growth stage of the Product Life Cycle. This is due to declining unit manufacturing costs while prices can remain high because the product has been accepted in the market and its unit cost of production is lesser i.e they are manufactured in bulk.
You plan to retire in 28 years. You would like to maintain your current level of consumption which is $52,672 per year. You will need to have 30 years of consumption during your retirement. You can earn 5.03% per year (nominal terms) on your investments. In addition, you expect inflation to be 2.82% inflation per year, from now and through your retirement. How much do you have to invest each year, starting next year, for 13 years, in nominal terms to just cover your retirement needs?
Answer:
The amount to invest each year for 13 years is $5,617.37.
Explanation:
This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = current level of consumption = $52,672
P = amount to invest each year = ?
r = annual nominal interest rate = 5.03%, or 0.0503
n = number of years = 13
Substituting the values into equation (1) and solve for n, we have:
$52,672 = P * ((1 - (1 / (1 + 0.0503))^13) / 0.0503)
$52,672 = P * 9.37662983027493
P = $52,672 / 9.37662983027493
P = $5,617.37
Therefore, the amount to invest each year for 13 years is $5,617.37.
Stanley's Bicycles store buys bicycles on average for $600 and sells them on average for $750. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $1,400 a month rent for his store, and also pays $3,000 a month to his staff in addition to the commissions. Stanley sold 200 bicycles in June. If Stanley prepares a contribution margin income statement for the month of June, what would be his contribution margin
Answer:
Stanley's Bicycles contribution margin is $7,500
Explanation:
Stanley's Bicycles Contribution Margin Income Statement for the month of June
Sales ($750 x 200) $150,000
Less Variable Costs :
Costs of Sales ($600 x 200) $120,000
Commissions ( $150,000 x 15 %) $22,500 ($142,500)
Contribution $7,500
Less Fixed Costs
Rent $1,400
Salaries $3,000 ($4,400)
Net Income $3,100
Conclusion
Contribution Margin is Sales less Variable Costs. Therefore, Stanley's Bicycles contribution margin is $7,500
Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system.1. On February 2, the corporation purchased goods from Martin Company for $70,000 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26.2. On April 1, the corporation bought a truck for $50,000 from General Motors Company, paying $4,000 in cash and signing a one-year, 12% note for the balance of the purchase price.3. On May 1, the corporation borrowed $83,000 from Chicago National Bank by signing a $92,000 zero-interest-bearing note due one year from May 1.4. On August 1, the board of directors declared a $300,000 cash dividend that was payable on September 10 to stockholders of record on August 31.Make all the journal entries necessary to record the transactions above using appropriate dates.Edwardson Corporation
Answer:
Edwardson Corporation
Journal Entries:
February 2:
Debit Purchases $68,600
Credit Accounts Payable $68,600
To record credit purchases, net ($70,000 * 98%) with terms of 2/10, n/30.
February 26: Debit Purchases $1,400
Credit Accounts Payable $1,400
To revise the cash discounts not taken.
February 26: Debit Accounts Payable $70,000
Credit Cash $70,000
To record the full settlement for cash
April 1: Debit Truck $50,000
Credit Cash $4,000
Credit Notes Payable $46,000
To record the purchase of truck with a 12% note.
May 1: Debit Cash $83,000
Debit Interest Expense $9,000
Credit Notes Payable $92,000
To record zero-interest-bearing note due on May 1.
August 1: Debit Dividends $300,000
Credit Dividends Payable $300,000
To record the declaration of dividends.
Explanation:
a) Data and Analysis:
February 2: Purchases $68,600 Accounts Payable $68,600 ($70,000 * 98%)
February 26: Purchases $1,400 Accounts Payable $1,400
Accounts Payable $70,000 Cash $70,000
April 1: Truck $50,000 Cash $4,000 Notes Payable $46,000
May 1: Cash $83,000 Interest Expense $9,000 Notes Payable $92,000
August 1: Dividends $300,000 Dividends Payable $300,000
b) Note that the Interest Expense of $9,000 will be split between the current year and the following year. Specific information for the split is not available.
3. The day after Thanksgiving, known as Black Friday, is the biggest shopping day
of the year. One major retailer advertised a "Black Friday only" laptop for $150.
On Thanksgiving night, hundreds of people waited for the store to open to take
advantage of the laptop deal-only to learn that the store only had two units for
sale at the discounted price. Did the retailer breach its contract with the hundreds
of consumers who sought the deal? What obligation, if any, does the retailer have
to its consumers?
Answer:
No there is no breach of contract since the retailer should have mentioned that stock is limited.
Explanation:
The retailer should have mentioned with the advertisement that the stock is limited. If such is the case then there is no breach as it is up to the store how many units it has kept for sale. The store should be opened on Black Friday and those customers who grab the sale items first will be given the discounted products. It is not responsibility of the store to entertain every customer as the stock in the store is limited.