Answer:
b. Net Income
e. Cash from Investing Activities
Explanation:
Calculation to determine Which of the following items would be increased by the sale of the marketable securities
Using this formula
Gain from investment = Selling price of the security - Value of the security
Let plug in the formula
Gain from investment= $93,000 - $85,000
Gain from investment= $8,000
Based on the above calculation The sell of marketable security will INCREASE CASH which means that CASH FROM INVESTING ACTIVITIES will increase and NET INCOME will increase.
Therefore the items that would be increased by the sale of the marketable securities are :
b. Net Income
e. Cash from Investing Activities
Kaspar Industries expects credit sales for January, February, and March to be $205,200, $266,800, and $316,800, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Compute cash collections from customers for each month.
Collections from Customers
Credit Sales January February March
January
February
March
Answer:
Results are below.
Explanation:
Giving the following information:
It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month.
Sales:
January= $205,000
February= $266,800
March= $316,800
Cash collection January:
Sales in cash from January= 205,000*0.75= 153,750
Total cash collection January= $153,750
Cash collection February:
Sales in cash from February= 266,800*0.75= 200,100
Sales in account from January= 205,000*0.25= 51,250
Total cash collection February= $251,350
Cash collection March:
Sales in cash from March= 316,800*0.75= 237,600
Sales in account from February= 266,800*0.25= 66,700
Total cash collection March= $304,300
If the company repaid the loan in a lump sum amount after 2 years, what was the amount of the payment
Answer:
The correct answer is "$2.18 million".
Explanation:
The given problem seems to be incomplete. The attachment of the complete question is attached below.
Given that,
Principle,
= 1.8 million
Interest rate,
= 10%
Number of years,
= 2 years
Now,
The factor will be:
= [tex](1+0.10)^2[/tex]
= [tex](1.1)^2[/tex]
= [tex]1.21[/tex]
hence,
The amount of payment will be:
= [tex]Principle\times factor[/tex]
= [tex]1.8\times 1.21[/tex]
= [tex]2.18 \ million[/tex]
help please!!
46. To find the net worth of a company, liabilities are subtracted from assets.
True
False
Suppose you want to invest $10,000. You have two options: (1) Invest in California municipal bonds with an expected rate of return of 7.00%, or (2) invest in J and K Corp.’s bonds with an expected rate of return of 10.50%. Assume that your decision is based on a tax perspective. If everything else is the same for both bonds, at what tax rate would you be indifferent between these two bonds?
Answer: 33.33%
Explanation:
Based on the information given in the question, the tax rate that the individual will be indifferent between these two bonds will be calculated thus:
= Corporate bond yield × (1-tax rate) = Municipal bond yield
10.50% × (1 - Tax rate) = 7.00%
(1 - Tax rate) = 7.00% / 10.50%
(1 - Tax rate) = 0.6667
Tax rate = 1 - 0.6667
Tax rate = 0.3333
Tax rate = 33.33%
During the 2008 recession the demand for ice cream went down, the demand for shampoo stayed the same, and the demand for beer increased. The increase in the demand for beer caused the price of beer to increase. The increase in the price of beer caused the demand for wine to decrease and the demand for soda to increase. Based on this information, match each product or pair of products to the term that best describes the product or the relationship between the 2 products.
- A. B. C. D. E. Ice Cream
- A. B. C. D. E. Shampoo
- A. B. C. D. E. Beer
- A. B. C. D. E. Beer and Wine
- A. B. C. D. E. Cheese and Wine
Answer and Explanation:
The classification is as follows:
1. The ice cream should be considered as the normal good as when the demand of the ice cream is reduced when there is the recession that means the income of the people is also reduced
2. The shampoo is considered to be the neutral good as the demand not impacted because of the recession
3. The beer should be considered as the inferior good as because of the recession the demand should increased but the income should be decreased
4. The beer and wine are complementary goods for each other that means if the price of the beer is rised so the demand of the wine is reduced and vice versa
5. The beer and soda should be substitute goods that means if the price of the beer is rise so the demand of the soda should also be rised
g In the United States, price discrimination is ________. Group of answer choices Encouraged permitted Illegal Available only for monopolies.
Answer:
Available only for monopolies
Explanation:
In simple words, price discrimination in America is illegal only when it impedes competition in market or is done on the basis of race, religion etc. America is a capital intensive market which makes it a free market as well, in such a market framework, the market forces affect the prices and competition always remains high.
Therefore, monopolies are the only firms that can perform price discrimination to some extent.
The supplies account had a beginning balance of $1,823. Supplies purchased during the period totaled $4,344. At the end of the period before adjustment, $286 of supplies were on hand. Prepare the adjusting entry for supplies. If an amount box does not require an entry, leave it blank.
Answer and Explanation:
The adjusting entry is as follows:
Supplies expense ($1,823 + $4,344 - $286) $5,881
To supplies payable $5,881
(being the supplies expense is recorded)
Here the supplies expense is debited as it increased the expense and supply payable is credited as it also increased the liabilities
help please!!
39. When a business collapses, only those who work directly for the business are impacted.
True
False
Answer:
I can't say 100% but I am pretty sure it is false because anyone who works hand in hand with the business will also be affected as well as people that have like invested in it or etc so I'd have to say false.
also I love your pfp :p
Hightown Electronics deposits $75,000 at the end of each 6-month period for the next 3 years, to accumulate enough money to meet debts that mature in 3 years. What is the future value that the company will have on deposit at the end of 3 years if the annual interest rate is 10%?
Answer:
$510,143.25
Explanation:
Calculation to determine the future value that the company will have on deposit at the end of 3 years
First step is to calculate the Present value (PV) using financial calculator
N = ( 3 years x 2 )=6
I/Y = ( 10% / 2 )=5%
PV = ?
PMT = -$75,000
FV = 0
Hence,
PV = $380676.91
Now let calculate Face value (FV) using financial calculator
N = 6
I/Y = 5%
PV = -$380,676.91
PMT = 0
FV = ?
Hence,
FV = $510,143.25
Therefore the future value that the company will have on deposit at the end of 3 years is $510,143.25
Derek has the opportunity to buy a money machine today. The money machine will pay Derek $35,847.00 exactly 16.00 years from today. Assuming that Derek believes the appropriate discount rate is 15.00%, how much is he willing to pay for this money machine
Answer:
$3830.78
Explanation:
We are to determine the present value of the lump sum
Present value is the sum of discounted cash flows
$35,847 / (1.15^16) = $3830.78
Computing and Assessing Plant Asset Impairment
On January 1, Zeibart Company purchases equipment for $225,000. The equipment has an estimated useful life of 10 years and expected salvage value of $25,000. The company uses straight-line depreciation. Four years later, economic factors cause the fair value of the equipment to decline to $90,000. On this date, Zeibart examines the equipment for impairment and estimates undiscounted expected cash inflows from this equipment of $125,000
(a) Compute the annual depreciation expense relating to this equipment.
(b) Compute the equipment's net book value at the end of the fourth year.
(c) Apply the test of impairment to this equipment as of the end of the fourth year. Is the equipment impaired?
Answer:
a. Depreciation expense = (Cost - Salvage value / Useful life
Depreciation expense = ($225,000 - $25,000) / 10 years
Depreciation expense = $20,000
b. Equipment's net book value = Cost of equipment - Depreciation for 4 years
Equipment's net book value = $225,000 - ($20,000 * 4)
Equipment's net book value = $225,000 - $80,000
Equipment's net book value = $145,000
c. When the sum of undiscounted expected cash flows < Net book value of asset, then the asset is impaired
Here, $125,000 < $145,000. So, the equipment is impaired.
Impairment loss = Net book value of asset - Fair value of asset
Impairment loss = $145,000 - $90,000
Impairment loss = $55,000
Gibson Valves produces cast bronze valves on an assembly line, currently producing 1560 valves per shift. If the production is increased to 1920 valves per shift, labor productivity will increase by:
Answer:
the increased in the labor productivity is 23.08%
Explanation:
The computation of the increased in the labor productivity is given below;
= (Increase in production - current production) ÷ current production
= (1,920 valves - 1,560 valves) ÷ 1,560 valves
= 23.08%
hence, the increased in the labor productivity is 23.08%
Therefore the same should be considered
When recording variances in a standard cost system: Question 22 options: A. Only unfavorable material variances are debited. B. Only unfavorable material variances are credited. C. Both unfavorable material and labor variances are credited. D. All unfavorable variances are debited. E. All unfavorable variances are credited.
Answer: D. All unfavorable variances are debited.
Explanation:
When recording variances in a standard cost system, all unfavorable variances are debited.
The reason for this is that it should be noted that the unfavorable variances simply means that there's excess production costs, and hence this will bring about reduction in the operating income. Hence, all unfavorable variances are debited.
Therefore, the correct option is D.
Which of the following statements is false?
A) Keynesians would not advocate an expansionary monetary policy to eliminate a recessionary gap if they believed that investment demand was interest-insensitive.
B) Keynesians would not advocate an expansionary monetary policy to eliminate a recessionary gap if they believed the money market was in the liquidity trap.
C) Keynesians would advocate an expansionary monetary policy to eliminate a recessionary gap if they believed investment spending was insensitive to changes in the interest rate.
D) Keynesians believe that money wages are inflexible in the downward direction.
Answer:
C) Keynesians would advocate an expansionary monetary policy to eliminate a recessionary gap if they believed investment spending was insensitive to changes in the interest rate.
Explanation:
Keynesians advocated for an expansionary monetary policy in order to remove the recession gap in the case when the trust that the investment spending should not be sensitive at the time when the interest rate varies
but this should be totally wrong as first fall it should not be advocated and also the wages should not be flexible
Therefore the option c is to be considered
In order to purchase the parts from the supplier, Torc Tools Corp. had to agree with all of the terms set forth in the document the supplier provided which detailed the rights and obligations of the supplier and Torc Tools Corp. This document is a type of
Answer:
Contract
Explanation:
From the question we are informed about instance, whereby In order to purchase the parts from the supplier, Torc Tools Corp. had to agree with all of the terms set forth in the document the supplier provided which detailed the rights and obligations of the supplier and Torc Tools Corp. In this case, This document is a type of contract. A contract can be regarded as written agreement that binds. Contracts can be explained as documents which define responsibilities as well as roles, and “Work” which is still under the construction Contract, this document can be seen as one that is legally-binding on involved parties, this could be between Owner and Contractor. It do contains information such as General Conditions as well as Special Conditions and Scope of Work.
The benchmark for the profitability index (PI) is the:
You inherit $10,000 with the stipulation that for the first year the money must be invested in two stocks paying 6% and 11% annual interest, respectively. How much should be invested at each rate if the total interest earned for the year is to be $900
Answer:
5000 at 6%
6000 at 11%
Explanation:
Given that :
Total principal = 10000
Let :
Principal invested in business A = x
Principal invested in business B = y
Interest = Principal * rate * time
(x * 6% * 1) + (y * 11% * 1) = 900
0.06x + 0.11y = 900 - - - - (1)
x + y = 10000 - - - (2)
From (2)
x = 10000 - y
Put x = 10000 - y in (1)
0.06(10000 - y) + 0.11y = 900
600 - 0.06y + 0.11y = 900
600 + 0.05y = 900
0.05y = 900 - 600
0.05y = 300
y = 300 / 0.05
y = 6000
x = 10000 - y
x = 10000 - 6000
x = 5000
For product costs associated with a particular product to be reported on the income statement: Group of answer choices The product must be sold. The product must be transferred to Finished Goods Inventory. The company must expect to sell the product during the next twelve months. The product must still be in Work in Process Inventory. The product may be in any of the manufacturer's inventory accounts.
eone Corporation sells a product for $21 per unit, and the standard cost card for the product shows the following costs Direct material $2 Direct labor 3 Overhead (70% fixed) 10 Total $15 Refer to Leone Corporation. Leone received a special order for 1,200 units of the product. The only additional cost to Leone would be foreign import taxes of $2 per unit. If Leone is able to sell all of the current production domestically, what would be the minimum sales price that Leone would consider for this special order
Answer:
Leone Corporation
The minimum sales price that Leone should consider for this special order is:
= $16.20 per unit.
Explanation:
a) Data and Calculations:
Normal selling price = $21
Standard costs:
Direct materials $2
Direct labor 3
Overhead (70% fixed) 10
Total $15
Variable costs:
Direct materials $2
Direct labor 3
Overhead (30% fixed) 3
Total $8
Contribution per unit $13 ($21 - $8)
Contribution margin ratio = $62%
Costs of special order:
Variable costs $8 * 1,200 = $9,600
Import taxes $2 * 1,200 = 2,400
Total variable costs = $10
Selling price = $16.20 ($10 * 1.62)
On January 1, 2017, Pennington Corporation purchased 30% of the common shares of Edwards Company for $180,000. During the year, Edwards earned net income of $80,000 and paid dividends of $20,000. Prepare the entries for Pennington to record the purchase and any additional entries related to this investment in Edwards Company in 2017.
Answer:
Date Account Title Debit Credit
12/31/2017 Equity Investment $180,000
Cash $180,000
Date Account Title Debit Credit
12/31/2017 Cash $6,000
Equity Investment $6,000
Working:
Cash received as dividend = 30% * 20,000 dividend
= $6,000
Date Account Title Debit Credit
12/31/2017 Equity Investments $24,000
Investment Revenue $24,000
Working:
Company is entitled to 30% of income:
= 30% * 80,000
= $24,000
American Inc. had gross sales of $925,000. Cost of goods sold and selling expenses were $490,00 and $220, 000 respectively American also had notes payable with an interest of 4%. Depreciation was $120,000. The tax rate at the time was 35%.
Required:
a. What is the company’s net income? Show work.
b. What is the companies operating cash flow? Show work
Answer:
a. Particulars Amount
Gross sales $925,000
Less: COGS $490,000
EBITDA $435,000
Less: Depreciation $120,000
EBIT $315,000
Less: Interest on notes payable $8,800 (220000*4%)
EBT $306,200
Less: Tax (35%*306200) $107,170
Net Income $199,030
b. Operating cash flow = Net income + Depreciation
Operating cash flow = $199,030 + $120,000
Operating cash flow = $319,030
Thrift institutions include Select one: a. insurance companies. b. brokerage firms c. mutual savings banks. d. commercial banks.
Answer:
c
Explanation:
A thrift institution is an institution that receives a large proportion of its funds from savings made by the public
types of thrift institutions include :
Savings and loan association Mutual savings bank Credit uniondisadvantages of unit trust investment
A company produces two products, A and B, which have profits of $9 and $7, respectively. Each unit of product must be processed on two assembly lines, where the required production times are as follows. Product Hours/Unit Line 1 Line 2 A 12 4 B 4 8 Total hours 60 40 a) Formulate a linear programming model to determine the optimal product mix that will maximize profit. b) Transform this model into standard form.
Answer:
Following are the solution to the given question:
Explanation:
The decision variable of the green is defined in the given graph:
unit production of [tex]A = X_1[/tex]
unit production of [tex]B = X_2[/tex]
The objective function of the yellow is defined in the given graph:
maximize profit:
[tex]\to 9X_1 + 7X_2[/tex]
Using the excel: [tex]C10 = SUM(C8:C9)[/tex]
Constraints:
1)
For Line 1: maximum 60 hours
[tex]\to 12X_1 + 4X_2 \leq 60, \ \ in \ excel: D4 \leq 60[/tex]
2)
For Line 2: maximum 40 hours
[tex]\to 4X_1 + 8X_2 \leq 40, in\ \ excel: F4 \leq 40[/tex]
3) [tex]X_1,X_2 \geq 0[/tex]
by solve the value we get [tex]X_1 = 4, X_2 = 3,[/tex] maximum profit [tex]= 57[/tex]
For point b:
[tex]maximize: 9X_1 + 7X-2\\\\subject\ \ to:\\\\12X_1 + 4X_2 \leq 60\\\\4X_1 + 8X_2 \leq 40\\\\X1,X2 \geq 0[/tex]
Demand increases in an increasing-cost industry that is initially in long-run competitive equilibrium. After full adjustment, price will be
Answer: above its original value
Explanation:
An increasing-cost industry simply means the industries whereby there's a rise in the average costs when the output increases.
Demand increases in an increasing-cost industry which is in long-run competitive equilibrium. After full adjustment, price will be above its original value.
Thomas was thinking about the car he wants to buy in a few years. He does not know what he should do now so that he
can buy the car. What should Thomas do?
A.He should set aside $100 per month to put in a savings account.
B.He should try to spend less and put whatever he can in a safe place.
C.He should wait a few years and take out a car loan for the full cost of the car.
B.he should become more knowledgeable about smart ways to save and about car loans.
A study is designed to evaluate how an employee reacts to interruptions when attempting to answer his/her email. After several interrupts, the employee comments to his coworkers, "What’s with all the interruptions?" In terms of the participant’s research awareness, your design revealed ______.
Answer:
participant perceives deviations but unrelated to researcher
Explanation:
In the case when the study is designed in order to evaluate how an employee reaction for interrupt at the time when an employee attempt to answer his or her email. After various interruption, the design should represent that there is a the participant that perceives the deviation but it is not related to the researcher as the changes responses via participants attach with the deviations
Therefore as per the given situation, the above represent the answer
On 1/1, RS Handyman Services took out a ten (10) month loan in the amount of $10,000 cash in exchange for signing a 12 month promissory note. On 6/1, what journal entry should RS Handyman Services record? (Select ALL that apply)
Answer:
Cash (Dr.) $10,000
Short term promissory Notes payable (Cr.) $10,000
Explanation:
Handyman services signed a notes for cash of $10,000, which is payable in 12 month time. This will be considered as short term note payable because the duration of notes maturity is less than a year.
Zoey Bella Corp. has a payroll of $7,960 for a five-day workweek. Its employees are paid each Friday for the five-day workweek. Required: Prepare the adjusting entry on December 31 assuming the year ends on Thursday. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Dr Wages expense $6,368
Cr Wages payable $6,368
Explanation:
Preparation ofn the adjusting entry on December 31 assuming the year ends on Thursday
Based on the information adjusting entry on December 31 assuming the year ends on Thursday will be :
Dr Wages expense $6,368
Cr Wages payable $6,368
[($7,960/5 days)*4]
During the year, the Fletcher Company experienced the following accounting transactions:
1. Purchased equipment with cash in the amount of $130,000.
2. Purchased supplies on account in the amount of $16,500.
3. Collected $37,000 cash from customers.
4. Paid a cash dividend of $17,000.
Using the accounting equation, record each of the transactions.
Answer:
Transaction 1
Debit : Equipment $130,000
Credit : Cash $130,000
Transaction 2
Debit : Supplies $16,500
Credit : Account Payable $16,500
Transaction 3
Debit : Cash $37,000
Credit : Account Receivable $37,000
Transaction 4
Debit : Dividend $17,000
Credit : Cash $17,000
Explanation:
The first step to record transactions is to identify two or more accounts affected by the transaction.
After that determine if the assets, liability or equity of the accounts identified are increasing or decreasing.
Assets increase on the debit side and decrease on the credit side. The opposite applies to liability and equity.