Answer:
Scrap
Explanation:
The scrap material is that material that is not usable for the or the services are no longer available and these products are not used so far for the production process. It is totally and completely discarded and used as a by product production process
Hence, the correct option is scrap
And all other options are wrong and incorrect
Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions.
1. January 1 Issue 10,000 shares of common stock in exchange for $38,000 in cash.
2. January 5 Purchase land for $22,000. A note payable is signed for the full amount.
3. January 9 Purchase storage container equipment for $8,600 cash.
4. January 12 Hire three employees for $2,600 per month.
5. January 18 Receive cash of $12,600 in rental fees for the current month.
6. January 23 Purchase office supplies for $2,600 on account.
7. January 31 Pay employees $7,800 for the first month's salaries.
Required:
1. Record each transaction. Green Wave uses the following accounts: Cash, Supplies, Land, Equipment, Common Stock, Accounts Payable, Notes Payable, Service Revenue, and Salaries Expense.
2. Post each transaction to T-accounts and compute the ending balance of each account. Since this is the first month of operations, all T-accounts have a beginning balance of zero.
3. After calculating the ending balance of each account, prepare a trial balance.
Answer:
1. January 1 Issue 10,000 shares of common stock in exchange for $38,000 in cash.
Dr Cash 38,000
Cr Common stock 38,000
2. January 5 Purchase land for $22,000. A note payable is signed for the full amount.
Dr Land 22,000
Cr Notes payable 22,000
3. January 9 Purchase storage container equipment for $8,600 cash.
Dr Equipment 8,600
Cr Cash 8,600
4. January 12 Hire three employees for $2,600 per month.
no journal entry required
5. January 18 Receive cash of $12,600 in rental fees for the current month.
Dr Cash 12,600
Cr Service revenue 12,600
6. January 23 Purchase office supplies for $2,600 on account.
Dr Supplies 2,600
Cr Accounts payable 2,600
7. January 31 Pay employees $7,800 for the first month's salaries.
Dr Salaries expense 7,800
Cr Cash 7,800
cash common stock
debit credit debit credit
38,000 38,000
8,600
12,600
7,800
34,200
land notes payable
debit credit debit credit
22,000 22,000
equipment service revenue
debit credit debit credit
8,600 12,600
supplies accounts payable
debit credit debit credit
2,600 2,600
salaries expense
debit credit
7,800
Green Wave Company
trial balance
debit credit
Cash $34,200
Supplies $2,600
Land $22,000
Equipment $8,600
Accounts payable $2,600
Notes payable $22,000
Common stock $38,000
Service revenue $12,600
Salaries expense $7,800
total $75,200 $75,200
Jounal enteries are :
1) Dr Cash 38,000
Cr Common stock 38,000
2) Dr Land 22,000
Cr Notes payable 22,000
3) Dr Equipment 8,600
Cr Cash 8,600
4) No journal entry required
5) Dr Cash 12,600
Cr Service revenue 12,600
6. Dr Supplies 2,600
Cr Accounts payable 2,600
7. Dr Salaries expense 7,800
Cr Cash 7,800
Answer 2:cash common stock
debit credit debit credit
38,000 38,000
8,600
12,600
7,800
34,200
land notes payable
debit credit debit credit
22,000 22,000
equipment service revenue
debit credit debit credit
8,600 12,600
supplies accounts payable
debit credit debit credit
2,600 2,600
salaries expense
debit credit
7,800
Answer 3: Green Wave Company Trial balanceEnteries debit credit
Cash $34,200
Supplies $2,600
Land $22,000
Equipment $8,600
Accounts payable $2,600
Notes payable $22,000
Common stock $38,000
Service revenue $12,600
Salaries expense $7,800
Total $75,200 $75,200
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In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption function is Upper C equals 1000 plus 0.9 Upper YC = 1000 + 0.9Y.
Thus, autonomous consumption is _________ nothing and the marginal propensity to consume is ______________.
A consumer whose income increases by $100 will increase consumption by $ ____________.
Answer:
Autonomous consumption is $1,000 and the marginal propensity to consume is 0.9.
A consumer whose income increases by $100 will increase consumption by $90.
Explanation:
Given C = 1000 + 0.9Y
Autonomous consumption refers to consumption expenditure of consumers that does not depend on income. Therefore, autonomous consumption is therefore the consumption expenditure made by the consumers when they do not have income or when income is zero (i.e. when Y = 0).
Substituting for Y = 0 into the consumption function, we can obtain autonomous consumption is follows:
Autonomous consumption = 1000 + (0.9 * 0) = 1,000
The marginal propensity to consume refers to the proportion of the increase in disposable income that is spent on the consumption of goods and services by a consumer. From the consumption function, the marginal propensity to consume is 0.9.
Since marginal propensity to consume is 0.9, a consumer whose income increases by $100 will therefore increase consumption by $90 (i.e. $100 * 0.9 = $90).
Firm Y has issued 500 million shares of stock at $1 par value and $200 millino in additional paid in capital. Retained earnings are $5.6 billion. What is the return on equity if net income if net income is $1.1 billion?
Answer:
Return on equity = 17.46%
Explanation:
DATA:
Issued share capital = $500m
Additional Paid-in capital = $200 million
Retained Earnings = $5.6 billion
Net Income = $1.1 billion
Return on Equity = ?
Solution
Return on equity can be calculated by dividing net income in total shareholder's equity
NOTE: ALL THE WORKINGS ARE IN 1000's
Return on equity = Net Income / Shareholder's Equity
Return on equity = 1,100,000 / (500,000 + 200,000 +5,600,000)
Return on equity = $1,100,000/6,300,000
Return on equity = 17.46%
Two solutions are investigated for a safety program Soution 1 First cost ---25,000 annual maintenance cost 4,000 Life -- 2years Solution 2 First cost ---88,000 annual maint 1400 Life 6 years Neither project has a salvage value Compare the two solutions using present value using 15% interest- what is present cost of solution 2
Answer:
Present value for solution 2 = $93,298.28
Solution 1 has a lower cost compared to solution 2. Solution 1 would be more desirable based on the lower cost
Explanation:
Present value is the sum of discounted cashflows
Solution 1
Cash flow in year 0 = 25,000
Cash flow in year 1 and 2 = 4,000
I = 15%
Present value = $31,502.84
Solution 2
Cash flow in year 0 = 88,000
Cash flow in year 1 and 6 = 1,400
I = 15%
Present value = $93,298.28
Solution 1 has a lower cost compared to solution 2. Solution 1 would be more desirable based on the lower cost
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Refer to the following selected financial information from McCormik, LLC. Compute the company's days' sales in inventory for Year 2. (Use 365 days a year.)
Year 2 Year 1
Cash $39,100 $33,850
Short-term investments 106,000 68,000
Accounts receivable, net 93,500 87,500
Merchandise inventory 129,000 133,000
Prepaid expenses 13,700 11,300
Plant assets 396,000 346,000
Accounts payable 105,400 115,800
Net sales 719,000 684,000
Cost of goods sold 398,000 383,000
a) 53.8.
b) 85.7.
c) 47.5.
d) 45.9.
e) 118.3.
Answer:
e) 118.3.
Explanation:
days' sales in inventory = (average inventory x 365 days) / cost of goods sold year 2
cost of goods sold year 2 = $398,000inventory year 2 = $129,000days' sales in inventory = ($129,000 x 365 days) / $398,000 = 118.30 days
Days' sales in inventory measures how much time it takes on average for a company to sell its inventory.
Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as
Answer:
Period costs
Explanation:
Period costs are Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process. These cost are not related directly to the production process. These costs cannot be capitalized on the company's balance sheet. They are expensed in the period in which they were incurred and are included in the financial statement during their assigned accounting period.
As a Cost and Management Consultant in the banking industry in Ghana, one of your highly esteemed clients, a top tier banking institution in Ghana has required of you to advise them as to whether target costing can be applied to the banking industry in Ghana. They further require you to advise them on what products or services can target costing be applied
Answer with its Explanation:
The target costing is a costing technique that helps to reduce the cost of the company operations by setting cost targets for the operations. The first step under target costing is to set a selling price for the product and the second step is to set the target profit margin. Now at this position we are able to derive the target cost by taking the difference of profit margin and the selling price of the product. At this stage the actions and reforms required to achieve this target cost are determined and implemented in the current operating activities. The best part of the target costing is that it says that the pricing though matters but the main aspect of a product success is its cost controls. If the company is able to control the cost of the product then it can control the movement of prices in the market. So target costing specially focuses and stresses upon cost control procedures.
As Target costing is all about cost controlling and can be applied to any sector. In Ghana, target costing will help to control the cost of the services that the banking sector renders to its customers. This reduction in services cost can be achieved by automation, installation of new softwares, Investing in automated teller machines, etc. By gaining efficiencies, the banking sector will substantially reduce its cost thus achieving its target cost.
By achieving the target cost the bank will have to sell at the same rate as the bank had invested its time and money in efficiency gaining activities. There are a lot of activities and products that can be automated and that can help to achieve the target cost. For example, promoting internet banking will reduce the cost of ATM management, paper cost, management time, additional branch opening or extension of building, etc. We can see how easily internet banking will assist the banking sector to achieve its target costs.
John, Jay, and Jeff each have an ownership interest in Three Guys Burgers, Inc. Based on the following information, which of them is/are considered to have materially participated the conduct of the Three Guys Burgers business this year?
-1- John dedicated more than 500 hours this year to Three Guys Burgers.
-2- Jay devoted 150 hours to Three Guys Burgers this year.
-3- Jeff devoted 115 hours to Three Guys Burgers this year, but also devoted more than 100 hours to several other activities, for a total of 520 hours in all of the activities combined.
Income Tax
Answer and Explanation:
Material participation in the business is when involvement in the business activity exceeds 500 hours during the year. Furthermore, if the activity is a significant activity of participation and the number of aggregate hours worked in all such activities exceeds 500 hours per year, of that kind participation is also construed as material participation.
Therefore, the participation of John and Jeff would be considered as material.
How might an interactive leader like Mary Barra communicate a policy change that impacts all GM employees from executive-level managers to assembly line workers
Answer:
a. Create task forces at different levels of the organization that communicate the benefits of the policy change
c. Hold a series of town hall meetings to discuss the policy change and listen to employee concerns
d. Hold informal meetings with key managers, department heads, and staff employees to discuss the policy change to develop best practices for communicating the change to other employees
Explanation:
Creating a task force at different levels in GM whose sole purpose is to communicate the new policy change and all the effects it would have will ensure that employees at all levels have a better chance of learning of the changes.
Also by holding a series of Town Hall meetings where employees can voice concerns to Mary Barra and other top executives for clarification would be very useful in the drive to helping the employees learn more about the policy change because they will hear it "from the horse's mouth" so to speak.
Informal meetings with front-line and other leaders in the company about the change can go a long way in the information being disseminated as the leaders will take the information back to their subordinates and will be more informed as to how to clarify concerns they may have.
Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics:
Fuel $11,506
Flight crew salaries 8,813
Airplane depreciation 4,161
Variable cost per passenger—business class 45
Variable cost per passenger—economy class 35
Round-trip ticket price—business class 515
Round-trip ticket price—economy class 285
It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. If required round the answers to nearest whole number.
Required:
a. Compute the break-even number of seats sold on a single round-trip flight for the overall product. Assume that the overall product is 10% business class and 90% economy class tickets.
b. How many business class and economy class seats would be sold at the break-even point?
Answer:
a. Compute the break-even number of seats sold on a single round-trip flight for the overall product. Assume that the overall product is 10% business class and 90% economy class tickets.
90 ticketsb. How many business class and economy class seats would be sold at the break-even point?
business class = 9 ticketseconomy class = 81 ticketsExplanation:
Fixed costs:
Fuel $11,506 Flight crew salaries $8,813 Airplane depreciation $4,161Total $24,480Variable costs:
Variable cost per passenger - business class 45 Variable cost per passenger - economy class 35Contribution margin:
Business class ticket = $515 - $45 = $470Economy class ticket = $285 - $55 = $250Weighted average contribution margin:
(10% x $470) + (90% x $250) = $272break even point in units = $24,480 / $272 = 90 seats
business class = 90 x 10% = 9 seats
economy class = 90 x 90% = 81 seats
Simkin Corporation purchased land for $420,000. Later in the year, the company sold a different piece of land with a book value of $155,000 for $110,000.How are the effects of these transactions reported on the statement of cash flows? Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank.
Answer:
Transaction Amount Statement of cash-flow
Purchase of land 420000 Investing activities
Sale of land 110000 Investing activities
Loss on sale of land 45000 Operating activities
Department S had no work in process at the beginning of the period. It added 14,800 units of direct materials during the period at a cost of $103,600; 11,100 units were completed during the period; and 3,700 units were 32% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $58,700 and factory overhead was $8,800. The total cost of units completed during the period was a.$77,700 b.$138,694 c.$130,742 d.$166,433
Answer:
b.$138,694
Explanation:
units started during the period 14,800
total cost for the period $103,600
11,100 units were completed
3,700 were 32% completed with respect to overhead and labor = 1,184 equivalent units
100% of units were completed with respect to materials
direct labor $58,700
cost per equivalent unit = $58,700 / 12,284 units = $4.7786 per unit
overhead $8,800
cost per equivalent unit = $8,800 / 12,284 units = $0.7164 per unit
materials $103,600
cost per equivalent unit = $103,600 / 14,800 = $7 per unit
total cost per equivalent unit = $4.7786 + $0.7164 + $7 = $12.495
total cost of completed units = $12.495 x 11,100 = $138,694.50
the 360 degree feedback performance appraisal system tries to improve performance ratings by forcing managers to :
Answer:
Include information from a wide range of sources in their reviews.
Explanation:
Performance appraisal refers to the evaluation of employees' performance by the human resource managers in an organization. The 360-degree feedback performance appraisal system is a type of performance appraisal that sources information about an employee from various sources, which ranges from subordinates, lateral and supervisory sources. This implies that the manager seeks to gain insight about the employee from his fellow employees, from his supervisors, his subordinates, and sometimes from external sources such as the customers who interact with that employee on a daily basis.
Most managers use this system of appraisal for developmental purposes and evaluation of an employee's performance. Information sourced can then be used to help the employees improve on their skills or promote/demote them.
A random sample of 10 parking meters in a beach community showed the following incomes for a day. Assume the incomes are normally distributed. $3.60 $4.50 $2.80 $6.30 $2.60 $5.20 $6.75 $4.25 $8.00 $3.00 Find the 95% confidence interval for the true mean. (Be sure to indicate your calculations for mean and standard deviation)
Answer:
The 95% confidence interval for the true mean would be between 3.39 and 6.01
Explanation:
In order to calculate the 95% confidence interval for the true mean we would have to calculate first the mean and standard deviation as follows:
mean=∑Xi/n
mean=$3.60 $4.50 $2.80 $6.30 $2.60 $5.20 $6.75 $4.25 $8.00 $3.00/10
mean=4.7
standard deviation=√∑(Xi-mean)∧2/n-1
standard deviation=1.83
t critical=2.262
The confidence interval=mean +/- t critical*standard deviation/√10
The confidence interval=4.7 +/- 2.262*1.8338/√10
The confidence interval=(3.39, 6.01)
The 95% confidence interval for the true mean would be between 3.39 and 6.01
If a borrower receives a loan with a variable interest rate, then the interest rate on the loan Multiple Choice always goes up. is subject to the price of the home. always goes down. is fixed. may go up or down.
Answer: may go up or down.
Explanation:
From the question, we are told that a borrower receives a loan with a variable interest rate, It should be noted that a variable interest rate loan is a form of loan whereby the interest rate that is charged on outstanding balance is not fixed but varies when there are changes in the market interest rates.
Based on this explanation, the payments the borrower will make will vary as they can either go up or down.
A borrower receives a loan with a variable interest rate, then the interest rate on the loan may go up or down.
A variable interest rate is an interest rate that is anchored on a benchmark interest rate or index. The variable interest rate changes with changes that occurs in the benchmark interest rate. A variable interest rate is also known as a floating interest rate.
If the underlying interest rate increases, the variable interest rate would increase. If the underlying interest rate decreases, the variable interest rate would decrease.
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Using the information below for Singing Dolls, Inc., determine the total manufacturing costs incurred during the year:Work in Process, January 1 $53,000Work in Process, December 31 38,500Direct materials used 14,000Total Factory overhead 7,000Direct labor used 28,000a- $49,000.b- $95,000.c- $102,000.d- $63,500.e- $14,500.
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Work in Process, January 1 $53,000
Work in Process, December 31 38,500
Direct materials used 14,000
Total Factory overhead 7,000
Direct labor used 28,000
To calculate the total manufacturing costs, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 53,000 + 14,000 + 28,000 + 7,000 - 38,500
cost of goods manufactured= $63,500
Based on its 1Q 2014 press release, what is the maximum $ amount the Coca-Cola Company expects to spend in repurchasing its shares during the current fiscal year. Please provide your answer in billions, with 1 decimal place (Ex: 6.2)
Answer: $3.0 billion.
Explanation:
According to the Press Statement released by Coca-Cola on April 15, 2014 as found on the SEC website, the company plans to spend between $2.5 billion and $3.0 billion on share repurchases by the end of the 2014 fiscal year.
As at the end of the first quarter of 2014, the Company had already spent $713 million in share repurchases and so were optimistic about their repurchases plan.
What is Tesla’s long-term portion of capital lease obligations as of December 31, 2013 (in $ thousands)? Please provide your answer without comma separator or decimal (Ex: 23456)
Answer:
Tesla's long-term portion of capital lease obligations as of December 31, 2013 (in $ thousands)
= 10460
This figure was obtained from the sec.gov/Archives/edgar/data.com.htm site.
Explanation:
A capital lease obligation is the amount of lease for capital assets under a capital lease agreement. Generally, lease agreements are usually classified as either operating lease or capital lease. The portion of capital lease obligations that are maturing within the current accounting period or within the next 12 months are classified as current. The reminder which matures after the next 12 months are classified as long-term.
Accounting for leases are currently under the purview and guidance of IFRS 16 Leases or FASB's ASC 842 Leases.
a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 11%, callable, 10-year bonds. These bonds were issued on January 2018 and pay interest on January 1 and July 1. The bonds yield 10%. Instructions: a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018 b. Prepare a bond amortixation schedule up to and including January 1, 2022 c. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021. d. Prepare the journal entry to record the bond called on January 2021 at 106
Answer:
a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018
we must first determine the market price of the bonds:
PV of face value = $2,000,000 / (1 + 5%)²⁰ = $753,778.97 ≈ $753,779
PV of coupon payments = $110,000 x 12.462 (PV annuity factor, 5%, 20 periods) = $1,370,820
market value of the bonds = $753,779 + $1,370,820 = $2,124,599
January 1, 2018, bonds are issued at a premium
Dr Cash 2,124,599
Cr Bonds payable 2,000,000
Cr Premium on bonds payable 124,599
b. Prepare a bond amortization schedule up to and including January 1, 2022
since we are not told which amortization method to use, I will use the straight line method.
Date Interest Cash Premium Carrying
expense paid amortization value
7/2018 $103,770 $110,000 $6,230 $2,118,369
1/2019 $103,770 $110,000 $6,230 $2,112,139
7/2019 $103,770 $110,000 $6,230 $2,105,909
1/2020 $103,770 $110,000 $6,230 $2,099,679
7/2020 $103,770 $110,000 $6,230 $2,093,449
1/2021 $103,770 $110,000 $6,230 $2,087,219
7/2021 $103,770 $110,000 $6,230 $2,080,989
1/2022 $103,770 $110,000 $6,230 $2,074,759
c. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021.
bond premium amortization per coupon = 124,599 / 20 = $6,229.95 ≈ $6,230
January 1, 2020, coupon payment
Dr Interest expense 103,770
Dr Premium on bonds payable 6,230
Cr Cash 110,000
January 1, 2021, coupon payment
Dr Interest expense 103,770
Dr Premium on bonds payable 6,230
Cr Cash 110,000
d. Prepare the journal entry to record the bond called on January 2021 at 106
Dr Bonds payable 2,000,000
Dr Premium on bonds payable 87,219
Dr Loss on retirement of debt 32,781
Cr Cash 2,120,000
Cepeda Corporation has the following cost records for June 2017.
Indirect factory labor $5,230
Factory utilities $470
Direct materials used $21,540
Depreciation, factory equipment$1,760
Work in process, 6/1/17 $3,820
Direct labor $41,680
Work in process, 6/30/17 $3,930
Maintenance, factory equipment $1,860
Finished goods, 6/1/17 $5,210
Indirect materials $2,870
Finished goods, 6/30/17 $8,510
Factory manager's salary $3,550
Prepare a Cost of Goods manufactured schedule for June 2017.
Answer:
Cepeda Corporation
Cost of Goods manufactured schedule for June 2017
Work in process, 6/1/17 $3,820
Direct materials used $21,540
Direct labor $41,680
Work in process, 6/30/17 ($3,930 ) $63,110
Factor Overheads:
Factory utilities $470
Depreciation, factory equipment $1,760
Maintenance, factory equipment $1,860
Indirect materials $2,870
Indirect factory labor $5,230
Factory manager's salary $3,550 $15,740
Total cost of manufactured goods $78,850
Explanation:
The cost of goods manufactured is made up of the beginning work in process, direct materials cost, direct labor costs, and factory overheads minus the ending work in process. It is this figure that decides the product cost per unit, which will be a consideration in deciding the selling price in some market situations.
Telegraphic Solution's completed worksheet at November 30, 2018 is as follows:
Revenues:
Service Revenue $9,600
Expenses:
Salaries Expense $2,750
Rent Expense 700
Depreciation Expense-Equipment $350
Supplies Expense 550
Utilities Expense $700
Total Expenses $5,050
Net Income $4,550
Required:
a. Complete the income statement for the month ended November 30, 2018.
b. Complete the statement of owner's equity for the month ended November 30, 2018. Assume there were no contributions made by the owner during the month.
c. Complete the classified balance sheet as of November 30, 2018
Answer:
a. Complete the income statement for the month ended November 30, 2018.
Telegraphic Solution's
Income Statement
For the month ended November 30, 2018
Service Revenue $9,600
Expenses:
Salaries Expense $2,750 Rent Expense 700 Depreciation Expense-Equipment $350 Supplies Expense 550 Utilities Expense $700 ($5,050)Net Income $4,550
b. Complete the statement of owner's equity for the month ended November 30, 2018. Assume there were no contributions made by the owner during the month.
Telegraphic Solution's
Statement of Owner's Equity
For the month ended November 30, 2018
Pryor, capital, November 1, 2018 $32,900
Investments during the month $0
Net income $4,550
Subtotal $37,450
Withdrawals during the month ($2,900)
Pryor, capital, November 30, 2018 $34,550
c. Complete the classified balance sheet as of November 30, 2018
Assets:
Current assets
Cash $4,400
Accounts receivable $3,900
Prepaid rent $1,100
Office supplies $2,550
Total current assets $11,950
Non-current assets
Equipment net $28,350
Total non-current assets $28,350
Total assets: $40,300
Liabilities and equity:
Liabilities:
Current liabilities
Accounts payable $5,100
Salaries payable $650
Total current liabilities $5,750
Equity:
Pryor, capital $34,550
Total liabilities and equity: $40,300
Select the most appropriate answer about bringing components from other continents.
A. It never affects innovation of the final product.
B. It potentially results in better products for the customer.
C. It always increases the cost of the final product.
D. It always lowers the quality of the final product.
E. It has no impact on the production lines in the home country.
Answer: B. It potentially results in better products for the customer.
Explanation:
Importation of components for the production of a good might lead to a potentially better product for consumers because the knowledge base of a superior country in manufacturing the said component would be utilized.
One benefit of Globalization is that better products than can be made locally can be sourced from outside countries so that products are better and stronger.
If a company imports components it could be because they are trying to save costs or it could be that they found Superior products than they did at home. Should the latter be the case then there is a chance that they will make better products because of these better components.
Government officials have hired your consulting firm to encourage more people to use the theater . In the initial meeting, you discussed several options for increasing demand. Three suggestions are listed below. Based on your knowledge of the law of demand, what is your recommendation for each suggestion?
Suggestion 1: Reduce the price of public transportation
Choose one:
a. Not recommend
b. Recommend
Suggestion 2: Increase the prices of private transportation by increasing the price of parking and gasoline
Choose one:
a. Not recommend
b. Recommend
Suggestion 3: Offer monthly and yearly passes that reduce the price per ride
Choose one:
a. Not recommend
b. Recommend
Answer:
Suggestion 1: Not Recommended
Suggestion 2: Recommended
Suggestion 3: Not Recommended
Explanation:
The law of demand says that the increase in the price of the commodity will result in decrease in the utility derived from that product and as a result the consumption of the product falls.
So by keeping the law of demand in view, we can say that the:
Reduction in price of public transportation is not recommended because every transporter will start investing in public transport and we will have higher number of buses per person.The increase in the price of parking and gasoline is recommended as the increase in parking fees and gasoline cost will discourage people to buy private transportation.Offer of monthly and yearly passes to reduce the price per ride is not recommended as it encourages the cyclists to travel via bus. Hence it is not recommended.Westchester Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A has an IRR of 11%, while Project B's IRR is 14%. When the WACC is 8%, the projects have the same NPV. Given this information, which of the following statements is CORRECT?a. If the WACC is 9%, Project A's NPV will be higher than Project B's. b. If the WACC is greater than 14%, Project A's IRR will exceed Project B's. c. If the WACC is 13%, Project A's NPV will be higher than Project B's. d. If the WACC is 9%, Project B's NPV will be higher than Project A's. e. If the WACC is 6%, Project B's NPV will be higher than Project A's.
Answer:
d. If the WACC is 9%, Project B's NPV will be higher than Project A's.
Explanation:
The internal rate of return is the return in which the NPV is zero i.e cash inflows equal to the initial investment
While the WACC refers to the cost of capital by considering the capital structure i.e cost of equity, cost of preferred stock and cost of debt by taking their weightage
Now if the WACC is 9% so project B NPV would be higher as compared to project A as we can see that project B IRR is greater than the project A IRR
Therefore option d is correct
E-Eyes just issued some new preferred stock. The issue will pay an annual dividend of $13 in perpetuity, beginning 11 years from now. If the market requires a 6 percent return on this investment, how much does a share of preferred stock cost today
Answer:
The cost of preferred stock today is $114.14
Explanation:
To calculate the cost of preferred stock today, we first need to determine the cost of each share of preferred stock 11 years from now when it starts paying dividends and then discount it back to today's value.
The preferred stock pays a constant dividend and after equal interval of time for an indefinite period. Thus, it is like a perpetuity. The present value of perpetuity is,
Present value = Dividend / r
Where,
r is the required rate of return
Value Year 11 = 13 / 0.06
Value Year 11 = 216.6666667
The present value is,
Present value = 216.6666667 / (1+0.06)^11
Present value = $114.137 rounded off to $114.14
The Supplies Expense account was debited $1,240 by the Sanford Company for office supplies purchased during the first year of operations. At year-end, the office supplies on hand were counted and the cost of the on-hand items was $880. The appropriate adjusting entry would:
Answer:
The Decrease in expenses $360
Explanation:
Since the supplies expense is debited by $1,240 for office supplies purchased
and the office supplies on hand is $880
So, the remaining office supplies left is
= Supplies expenses debited for Office supplies purchased - office supplies on hand
= $1,240 - $880
= $360
This $360 represent that there is a decrease in expenses
Question 3 (2 points)
Which of the following is NOT a way to balance a project?
..
O At the Enterprise Level
At the Business Case Level
.
O At the Program Level
At the Project Level
Answer:
1
Explanation:
at the bisiness casel level
Contracts are a form of private law because the terms contained within a contract bind the relevant parties, not the public as a whole.
a) true
b) false
Answer:
The correct answer is the option A: True.
Explanation:
To begin with, the contracts inside the law are regulated by the Anglo-America common law that defines a contract as the agreement between two or more parties in which they establish the basis and principles of the agreement and the clauses that could cause to end the contract. Moreover, a contract is also part of the civil law and therefore that it does not implicate the public as a whole in any way due to the fact that in order to be a correct contract the parties must accept the bond between only them and nobody else.
On January 1, 2019, Brooks, Inc., borrows $90,000 from a bank to purchase machinery. Brooks signs a 5 percent installment note requiring four annual payments of principal plus interest. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Date General Journal Debit CreditJan 01
Answer:
January 1, 2019, loan received from bank
Dr Cash 90,000
Cr Notes payable 90,000
January 1, 2020, first installment paid
Dr Notes payable 22,500
Dr Interest expense 4,500
Cr Cash 27,000
January 1, 2021, second installment paid
Dr Notes payable 22,500
Dr Interest expense 3,375
Cr Cash 25,875
January 1, 2022, third installment paid
Dr Notes payable 22,500
Dr Interest expense 2,250
Cr Cash 24,750
January 1, 2023, fourth installment paid
Dr Notes payable 22,500
Dr Interest expense 1,125
Cr Cash 23,625
Aspin Corporation’s charter authorizes issuance of
2,000,000 shares of common stock. Currently, 1,400,000 shares are outstand-
ing, and 100,000 shares are being held as treasury stock. The firm wishes to
raise $48,000,000 for a plant expansion. Discussions with its investment bankers
indicate that the sale of new common stock will net the firm $60 per share.
Answer and Explanation:
The calculation of the sale of new common stock is shown below:-
a. Not issued = Authorized shares - Outstanding shares - Treasury stock
= 2,000,000 - 1,400,000 + 100,000
= 500,000
Now
Maximum shares = Not issued + Treasury stock
= 500,000 + 100,000
= 600,000
b. Since if we find out the number of shares that should be issued is
= $48,000,000 ÷ $60 per share
= 800,000
But the maximum shares is 600,000 so this shares would only be issued upto this limit only
Therefore the funds should not be raised
c. Now The firm could also develop extra 200,000 shares together it get amortized also.
Hence, it can sell 800,000 shares and the amount could rise to $48,000,000