Answer:
Inflation targeting usually requires that central banks do not prioritize concerns about unemployment. - True
There is a trade-off, in the short-term, between inflation and unemployment. If a central bank prioritizes keeping inflation low, that is to say, inflation targeting, then, it cannot prioritize keeping unemployment as low as possible at the same time.
The use of strict inflation targets generally give central banks greater autonomy regarding what decisions to make. - False
Very strict inflation targets actually reduce the amount of options that a central bank can take, and the amount of decisions it can make, because all the actions of the central bank must be channeled towards a very specific objective which is keeping inflation under a strict target.
Most inflation targets are ranges rather than an exact level that central banks must meet. - True
Central banks do not control inflation directly, they do so through indirect tools like open market operations, discount window rates, and other interbank rates. This results in inflation targets that are ranges rather than exact numbers.
Advocates of inflation targeting argue that it will increase the need for an active monetary policy. - False
Inflation targeting is a policy that promotes passive action from central banks. Central banks are kept to a more or less secondary role under normal economic conditions.
U.S. Steel has established an alcoholic rehabilitation program for the city of Pittsburgh. The company provides the facilities and the personnel to operate the program. U.S. Steel is practicing
Answer:
social responsibility
Explanation:
For the city of Pittsburgh, U.S. Steel has launched an alcoholic rehabilitation programme. The company offers the necessary facilities and employees to run the programme. U.S. Steel is practicing social responsibility.
Social responsibility is an ethical paradigm in which an individual is expected to collaborate and engage with other individuals and organisations for the benefit of those around them which will inherit the world that the individual leaves behind.
Every individual is responsible for maintaining a balance among the economy as well as the ecosystem in which they live. There may be a trade-off between material economic development and the welfare of society and the environment. Social responsibility applies not only to businesses, but to anybody whose actions have an impact on the environment.
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1) In the TOPCASH model, Analytics considerations include:
a. Is the analytics installation reliable?
b. The potential value of including specific goal tracking
c. All of the above
Answer:
b. The potential value of including specific goal tracking.
Explanation:
Top cash model is the one which prioritizes the cash value as compared to the product features. The potential value of a product is identified and then the price for the product is set. This creates value for money for customers.
Assume that a company cannot determine the market value of equipment acquired by reference to a similar purchase for cash. Explain how the company determines the cost of equipment purchased by exchanging it for each of the following 3 items: Bonds having an established market price. Bonds that do not have an established market price. Common stock not having an established market price. Similar equipment having a determinable market value.
Solution :
Let us suppose that a company cannot predict the market value of an equipment that acquired by the reference to the similar purchase for the cash. Thus the company finds cost of purchased of the equipment by exchanging :
-- the market price of the bonds when they have an established price in the market.
-- the market price of the bonds when the common stocks does not have a established market price.
-- market price of the equipment when the similar kind of an equipment have a determinable value in the market.
b. A Venezuelan-style economic collapse would be less likely in a mixed economy like the United States because
a. corruption is less likely when economic power is more diffused.
b. private industry has strong financial incentives to produce efficiently.
c. mixed economies like the United States usually have a more equal distribution of income.
d. inflation is always low in a mixed economy.
Answer:
a. corruption is less likely when economic power is more diffused. b. private industry has strong financial incentives to produce efficiently.Explanation:
Venezuela is a planned / command economy which means that the government directs production of goods and services in the country. This can lead to corruption as those in government would become quite powerful and engage in activities that would make them richer at the expense of the nation because they will have the required access to do so.
As the government directs most things, there is less private industry and competition. With a lack of competition, companies will not see the need to compete and would end up being inefficient.
These are what happened in Venezuela.
Sandy Shores Corporation operates two stores: J and K. The following information relates to J: Sales revenue$1,300,000 Variable operating expenses 600,000 Fixed expenses: Traceable to J and controllable by J 275,000 Traceable to J and controllable by others 80,000 J's segment contribution margin is: Multiple Choice $700,000. $745,000. $425,000. $620,000. $345,000.
Answer:
Sandy Shores Corporation
J's Segment Contribution Margin is:
= $700,000.
Explanation:
a) Data and Calculations:
Sales revenue $1,300,000
Variable operating expenses 600,000
Contribution $700,000
Fixed expenses:
Traceable to J and controllable by J 275,000
Traceable to J and controllable by others 80,000
Total fixed expenses 355,000
Net operating income $345,000
b) The contribution margin is the difference between total sales revenue and the variable costs. The idea of segment contribution margin is that it covers the fixed expenses, whether controllable by the segment or not.
Ann lives in Princeton, New Jersey, and commutes by train each day to her job in New York City (20 round trips per month). When the price of a round trip goes up from $10 to $20, she responds by consuming exactly the same number of trips as before, while spending $200 per month less on restaurant meals. Does the fact that her quantity of train travel is completely unresponsive to the price increase imply that Ann is not a rational consumer
Answer:
Yes
Explanation:
Seth Erkenbeck, a recent college graduate, has just completed the basic format to be used in preparing the statement of cash flows (indirect method) for ATM Software Developers. All amounts are in thousands (000s).
ATM SOFTWARE DEVELOPERS Statement of Cash Flows For the year ended December 31, 2021
Cash Flows from Operating Activities
Net income
Adjustments to reconcile net income to net cash flows from operating activities:
Net cash flows from operating activities
Cash Flows from Investing Activities
Net cash flows from investing activities
Cash Flows from Financing Activities
Net cash flows from financing activities
Net increase (decrease) in cash $1,725
Cash at the beginning of the period 8,215
Cash at the end of the period $9,940
Listed below in random order are line items to be included in the statement of cash flows.
Cash received from the sale of land $8,590
Issuance of common stock 12,925
Depreciation expense 5,435
Increase in account receivable 4,030
Decrease in account payable 1,730
Issuance of long-term notes payable 16,345
Purchase of equipment 39,715
Decrease in inventory 1,445
Decrease in prepaid rent 875
Payment of divivdends 6,310
Net income 11,800
Purchase of treasury stock 2,585
Required:
Prepare the statement of cash flows for ATM software developers using the indirect method. List cash outflows and any decrease in cash as negative amounts. Enter the answer in thousands.
Answer:
See below
Explanation:
Statement of cash flow for ATM SOFTWARE
• The figures seems to be in thousands already.
Cash flow from operating activities
Net income
$11,800
Increase in Account receivable
($4,030)
Decrease in Account payable
($1,730)
Depreciation expense
$5,435
Decrease in inventory
$1,445
Decrease in prepaid rent
$875
Net cash flow from operating activities
$13,795
Cash flow from investing activities
Sale of land
$8,590
Purchase of equipment
($39,715 )
Net cash flow from financing activities
($31,125)
Cash flow from financing activities
Issuance of stock
$12,925
Long term note payable
$16,345
Purchase of treasury stock
($2,585 )
Payments of dividends
($6,310)
Net cash flow from financing activities
$20,375
Net increase in cash
$1,725
Cash at the beginning
$8,215
Cash at the end
$9,940
What stock should I buy
Mcewan Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on 48,000 direct labor-hours, total fixed manufacturing overhead cost of $307,200, and a variable manufacturing overhead rate of $2.80 per direct labor-hour. Job X941, which was for 50 units of a custom product, was recently completed. The job cost sheet for the job contained the following data:
Total direct labor-hours 300
Direct materials $600
Direct labor cost $6,400
Required:
Calculate the selling price for Job X941 if the company marks up its unit product costs by 20%.
Answer:
$234.24 per unit
Explanation:
The computation of the selling price for Job X941 is shown below:
But before that following calculations need to be determined
The Predetermined overhead rate is
= Variable overhead per DLH + Fixed overhead per DLH
= $2.80 + ($307,200 ÷ 48,000)
= $9.2 per DLH
Now the Total cost of Job X941 is
= Direct materials + Direct labor + Overhead applied
= $600 + $6,400 + (300 × $10)
= $9,760
And, finally
The Selling price per unit of Job X941 is
= Unit product costs × 120%
= ($9,760 ÷ 50) × 120%
= $234.24 per unit
Barbara owns 40% of the stock of Cassowary Corporation (a C corporation) and 40% of the stock of Emu Corporation (an S corporation). In the current year, each corporation has operating income of $120,000 (before income tax expense) and tax-exempt interest income of $8,000. Neither corporation pays any dividends during the year. Complete the statements below regarding how this information will be reported by the corporations and Barbara for the current year.
Since C corporations are separate taxable entities, Cassowary Corporation will report the operating income and tax-exempt income. An S corporation is a tax reporting entity. Therefore, Barbara will report ordinary business income of $________ and tax-exempt interest income of $________ .
Answer:
$ 48,000
$3,200
Explanation:
Since C corporations are separate taxable entities, Cassowary Corporation will report the operating income and tax-exempt income. An S corporation is a tax reporting entity. Therefore, Barbara will report ordinary business income of $ 48,000 and tax-exempt $ 3,200.
Reason -
Business income = 120,000×40%
= [tex]120,000.\frac{40}{100}[/tex]
= $48,000
⇒Business income = $48,000
Tax-exempt = 8,000×40%
= [tex]8,000.\frac{40}{100}[/tex]
= $3,200
⇒Tax-exempt = $3,200
Gato Inc. had the following inventory situations to consider at January 31, its year-end. (a1) Identify which of the following items should be included in inventory.
(a) Goods held on consignment for Steele Corp. since December 12. select including or not
(b) Goods shipped on consignment to Logan Holdings Inc. on January 5. select including or not
(c) Goods shipped to a customer, FOB destination, on January 29 that are still in transit. select including or not
(d) Goods shipped to a customer, FOB shipping point, on January 29 that are still in transit. select including or not
(e) Goods purchased FOB destination from a supplier on January 25 that are still in transit. select including or not
(f) Goods purchased FOB shipping point from a supplier on January 25 that are still in transit. select including or not
(g) Office supplies on hand at January 31.
Instructions:
Identify which of the preceding items should be included in inventory. If the item should not be included in inventory, state in what account, if any, it should have been recorded.
Answer:
A) Should not be included in inventory but included in Steele Corp's inventory
B) Should be included in inventory
C) Should be included in inventory
D) Should not be included in inventory because once they are shipped, they become the buyers property.
E) Should not be included in inventory but suppliers inventory.
F) Should be included in inventory
G) Should not be included in inventory. Should be included in Office Supplies inventory rather than Merchandise Inventory
Explanation:
A) Should not be included in inventory but included in Steele Corp's inventory
B) Should be included in inventory
C) Should be included in inventory
D) Should not be included in inventory because once they are shipped, they become the buyers property.
E) Should not be included in inventory but suppliers inventory.
F) Should be included in inventory
G) Should not be included in inventory. Should be included in Office Supplies inventory rather than Merchandise Inventory
Alice MeyerMeyer?,owner of Flower DirectFlower Direct?, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery? fee,
MeyerMeyer wants to set the delivery fee based on the distance driven to deliver the flowers. MeyerMeyer wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. She has the following data from the past 7? months:
February and May are always Flower DirectFlower Direct?'s biggest months because of? Valentine's Day and? Mother's Day, respectively. Use the? high-low method to determine
Flower DirectFlower Direct?'s cost equation for van operating costs. Use your results to predict van operating costs at a volume of 16 comma 00016,000 kilometres.
? / ? = variable cost (slope)
? - ? = fixed cost
Use the? high-low method to determine Flower DirectFlower Direct?'s operating cost equation. ?(Round the variable cost to the nearest cent and the fixed cost to the nearest whole? dollar.)
Y = $?x + $?
Use the operating cost equation you determined above to predict van operating costs at a volume of 16 comma 00016,000 kilometres
the operating costs at a volume of 16 comma 00016,000 kilometres is ?$ ?
Table :
Month Kilometres Driven Van Operating Costs
January 16,000 $5,490
February 17,500 5,700
March 14,900 4,910
April 16,200 5,340
May 16,900 5,820
June 15,100 5,410
July 14,500 4,920
Answer:
Flower Direct1. Operating cost equation = $0.26x + $1,150
2. Prediction of operating costs at a volume of 16,000 is:
= $5,310
Explanation:
a) Data and Calculations:
Month Kilometres Driven Van Operating Costs
January 16,000 $5,490
February 17,500 5,700
March 14,900 4,910
April 16,200 5,340
May 16,900 5,820
June 15,100 5,410
July 14,500 4,920
High-Low Method:
February 17,500 5,700
July 14,500 4,920
Difference 3,000 780
Variable cost per unit = $780/3,000 = $0.26
Total variable cost at February figures = $4,550 (17,500 * $0.26)
Total fixed costs at February figures = $1,150 ($5,700 - $4,550)
Operating cost equation = $0.26x + $1,150
Operating cost at a volume of 16,000 = $1,150 + $0.26 * 16,000
= $1,150 + 4,160
= $5,310
You are interested in valuing a 2-year semi-annual corporate coupon bond using spot rates but there are no liquid strips available. However, you do find the following 4 comparable semi-annual bonds (below) maturing over the next 2 years. Using the bootstrap approach, calculate the 12-month spot rate.
Time remaining to maturity Coupon Bond price
6 months 0.000% 99.000
1 year 1.250% 98.000
18 months 1.500% 97.000
2 years 1.250% 96.000
a. 1.668%
b. 3.335%
c. 4.167%
d. 4.189%
e. 4.204%
Answer:
Following are the solution to this question:
Explanation:
Assume that [tex]r_1[/tex] will be a 12-month for the spot rate:
[tex]\to 1.25 \% \times \frac{100}{2} \times 0.99 + \frac{(1.25\% \times \frac{100}{2}+100)}{(1+\frac{r_1}{2})^2}=98\\\\\to \frac{1.25}{100} \times \frac{100}{2} \times 0.99 + \frac{(\frac{1.25}{100} \times \frac{100}{2}+100)}{(1+\frac{r_1}{2})^2}=98\\\\\to \frac{1.25}{2} \times 0.99 + \frac{(\frac{1.25}{2} +100)}{(1+\frac{r_1}{2})^2}=98\\\\\to 0.61875 + \frac{( 0.625 +100)}{(\frac{2+r_1}{2})^2}=98\\\\\to 0.61875 + \frac{( 100.625)}{(\frac{2+r_1}{2})^2}=98\\\\\to 0.61875 + \frac{402.5}{(2+r_1)^2}=98\\\\[/tex]
[tex]\to 0.61875 + \frac{402.5}{(2+r_1)^2}=98\\\\\to 0.61875 -98 = \frac{402.5}{(2+r_1)^2}\\\\\to -97.38125= \frac{402.5}{(2+r_1)^2}\\\\\to (2+r_1)^2= \frac{402.5}{ -97.38125}\\\\\to (2+r_1)^2= -4.13\\\\ \to r_1=3.304\%[/tex]
Assume that [tex]r_2[/tex] will be a 18-month for the spot rate:
[tex]\to 1.5\% \times \frac{100}{2} \times 0.99+1.5\% \times \frac{100}{2} \times \frac{1}{(1+ \frac{3.300\%}{2})^2}+\frac{(1.5\% \times \frac{100}{2}+100)}{(1+\frac{r_2}{2})^3}=97\\\\\to \frac{1.5}{100} \times \frac{100}{2} \times 0.99+\frac{1.5}{100} \times \frac{100}{2} \times \frac{1}{(1+ \frac{\frac{3.300}{100}}{2})^2}+\frac{(\frac{1.5}{100} \times \frac{100}{2}+100)}{(1+\frac{r_2}{2})^3}=97\\\\[/tex]
[tex]\to \frac{1.5}{2} \times 0.99+\frac{1.5}{2}\times \frac{1}{(1+ \frac{\frac{3.300}{100}}{2})^2}+\frac{(\frac{1.5}{2} +100)}{(1+\frac{r_2}{2})^3}=97\\\\\to 0.7425+0.75 \times \frac{1}{(1+ \frac{\frac{3.300}{100}}{2})^2}+\frac{(0.75 +100)}{(1+\frac{r_2}{2})^3}=97\\\\\to 1.4925 \times \frac{1}{(1+0.0165)^2}+\frac{(100.75 )}{(1+\frac{r_2}{2})^3}=97\\\\\to 1.4925 \times \frac{1}{(1.033)}+\frac{(100.75 )}{(1+\frac{r_2}{2})^3}=97\\\\[/tex]
[tex]\to 1.4925 \times 0.96+\frac{(100.75 )}{(1+\frac{r_2}{2})^3}=97\\\\\to 1.4328+\frac{(100.75 )}{(1+\frac{r_2}{2})^3}=97\\\\\to 1.4328-97= \frac{(100.75 )}{(1+\frac{r_2}{2})^3}\\\\\to -95.5672= \frac{(100.75 )}{(1+\frac{r_2}{2})^3}\\\\\to (1+\frac{r_2}{2})^3= -1.054\\\\\to r_2=3.577\%[/tex]
Assume that [tex]r_3[/tex] will be a 18-month for the spot rate:
[tex]\to 1.25\% \times \frac{100}{2} \times 0.99+1.25\% \times \frac{100}{2} \times \frac{1}{(1+\frac{3.300\%}{2})^2}+1.25\%\times\frac{100}{2} \times \frac{1}{(1+\frac{3.577\%}{2})^3}+(1.25\% \times \frac{\frac{100}{2}+100}{(1+\frac{r_3}{2})^4})=96\\\\[/tex]
to solve this we get [tex]r_3=3.335\%[/tex]
Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 27,900 units.
Per Unit Total
Direct materials $16
Direct labor $10
Variable manufacturing overhead $16
Fixed manufacturing overhead $502,200
Variable selling and administrative expenses $6
Fixed selling and administrative expenses $111,600
The company uses a 40% markup percentage on total cost.
Required:
Compute the total cost per unit.
Answer:
$62.40
Explanation:
Cost per unit = Total manufacturing cost + 40 % markup
therefore
Total manufacturing cost = $16 + $10 + $16 + ($502,200 ÷ 27,900)
= $60
Cost per unit = $60 + ($60 x 40 %)
= $62.40
Conclusion
The total cost per unit is $62.40
AYO BRAINLY
Effective presentations are tailored to their audience, have a central message, and are influenced by their setting.
T or F
pretty sure its true. but just need some confirmation of some sort
True. I would say they have a central message. Effective presentations are: Colorful and exciting Created for a specific audience Have many messages Have a central message Are influence by a setting
On January 1, 2019, a city recorded General Fund property tax revenues of $750,000 but made no provision for uncollectible receivables or tax refunds. During the year, it collected property taxes of $720,000, wrote off $4,000 as uncollectible, and made tax refunds of $3,000. At year-end, the city finance director concluded that $10,000 of the delinquent taxes would be collected in January and February of 2020, $12,000 would be collected later in 2020, and $1,000 would need to be written off as uncollectible. How much should the city report as property tax revenue in its General Fund financial statements for the year 2019
Answer:
$730,000
Explanation:
Calculation for How much should the city report as property tax revenue in its General Fund financial statements for the year 2019
Using this formula
Property tax revenue=Collected property taxes +Delinquent taxes
Let plug in the formula
Property tax revenue=$720,000+$10,000
Property tax revenue=$730,000
Therefore How much should the city report as property tax revenue in its General Fund financial statements for the year 2019 is $730,000
Crowding-out is the notion that:_________
a. Since tax revenues vary directly with GDP, a rise in the level of GDP will increase the budget surplus and limit expansion
b. Deficit financing will increase the demand for money, increase the interest rate, and reduce the level of investment spending in the economy
c. The standardized budget is the best indicator of whether a budget deficit crowds out investment
d. The actual budget is the best indicator of whether a budget deficit crowds out saving
Answer:
B
Explanation:
The theory of crowding out is that as government spending and borrowing increases, the demand for money would increase. This would lead to an increase in interest rate. As a result, the level of investment spending would decline. The theory submits that increased government spending would drive down private spending
National defense is a good that is non excludable and nonrival in consumption. Suppose that, instead of national defense being paid with tax dollars, national defense is paid by voluntary contributions from (potentially) all individuals within Latvia.
Alan, who is a Latvian citizen, must decide whether he wants to contribute to the national defense budget Further, suppose that there are a total of 10 citizens, including Alan. For the optimal amount of safety, each citizen should pay $10. Every $1 contributed (by anyone) to the national defense, leads to increased security, which each person values at $0.25. This means that every dollar spent on defense is worth $2.50 to Latvia as a whole.
Suppose that, instead of relying on voluntary contributions, the government simply levies a tax of $10 on each person to pay for national defense. How much better or worse off would Alan be if everyone (including himself) were taxed $10 instead of contributing voluntarily?
If Alan is worse off, be sure to put a negative sign in front of the number.
Answer:
Alan is better off by $15
Explanation:
the number of citizens in latvia = 10
if citizens were levied $10 each, total amount
= 10*10
=$100
each persons valuation = 100*0.25
= $25
$25 is also Alans valuation sice he is a part of this population.
since he contribited $10, his net gain would be
$25.00 - $10.00
= $15.00
Alan is better of by $15 in the tax system.
The corporate charter of Alpaca Co. authorized the issuance of 10 million, $1 par common shares. During 2021, its first year of operations, Alpaca had the following transactions:
January 1 sold 8 million shares at $15 per share
June 3 retired 2 million shares at $18 per share
December 28 sold 2 million shares at $20 per share
What amount should Alpaca report as additional paid-in capital—excess of par, in its December 31, 2021, balance sheet?
A. $104 million
B. $6 million
C. $52 million
D. $208 million
Answer:
Alpaca Co.
The amount that Alpaca should report as additional paid-in capital, in excess of par, in its December 31, 2021 balance sheet is:
= $116 million
Explanation:
a) Data and Calculations:
Authorized share capital = 10 million, $1 par common shares
Transactions during the year:
Date Number of shares issued Price Common Stock Additional
January 1 sold 8 million shares at $15 $8 million $112 million
June 3 retired 2 million shares at $18 (2 million) (34 million)
December 28 sold 2 million shares $20 2 million 38 million
Total $10 million $116 million
b) Additional paid-in capital represents the excess capital that is received above the par value of the shares issued. When the retired shares (treasury stock) are accounted for using the cash method, the additional capital is stated less the treasury stock's excess issue value. When the par value method is used, a treasury stock account is created separately so that the two adjustments to the treasury stock account are reflected differently.
Holly Company has the following information for December 1 to December 31. All direct materials are 100% complete.Work-in-Process Beginning balance December 345 units, 20% complete for conversion $25,185Completed 900 units and transferred to finished goods inventory $245,700Direct materials 135,000Direct labor 49,500Factory overhead:Property taxes 6,750Depreciation 39,000Utilities 23,800Indirect labor 6,000Ending balance December 31, 445 units, 40% completeRequired: Calculate equivalent units using the weighted-average and FIFO methods.
Answer:
Equivalent units using the weighted-average : Materials = 1,345 units, Conversion Costs = 1,078 units and FIFO methods : Materials = 1,000 units, Conversion Costs = 1,009 units.
Explanation:
Weighted-average method
This method focuses on completed units and units in ending work in process
Materials = 900 x 100 % + 445 x 100 % = 1,345 units
Conversion Costs = 900 x 100 % + 445 x 40 % = 1,078 units
FIFO method
This method focuses on work done during the production period only
Materials = 345 x 0 % + 555 x 100% + 445 x 100 % = 1,000 units
Conversion Costs = 345 x 80 % + 555 x 100% + 445 x 40% = 1,009 units
Conclusion
Equivalent units using the weighted-average : Materials = 1,345 units, Conversion Costs = 1,078 units and FIFO methods : Materials = 1,000 units, Conversion Costs = 1,009 units.
At December 31, 2020, the available-for-sale debt portfolio for Blossom, Inc. is as follows.
Security Cost Fair Value Unrealized Gain (Loss)
A $17,900 $15,200 $(2,700)
B 11,000 15,000 4,000
C 24,000 26,500 2,500
Total $52,900 $56,700 3,800
Previous fair value adjustment balance—Dr. 400
Fair value adjustment—Dr. $3,400
On January 20, 2021, Blossom, Inc. sold security A for $15,300. The sale proceeds are net of brokerage fees. Blossom, Inc. reports net income in 2020 of $123,000 and in 2021 of $142,000. Total holding gains (including any realized holding gain or loss) equal $41,000 in 2021.
Prepare a statement of comprehensive income for 2020, starting with net income.
Prepare a statement of comprehensive income for 2021, starting with net income.
Answer:
a. Blossom Inc
Statement of Comprehensive Income
For the Year Ended December 31, 2020
Particulars Amount
Net income $123,000
Other comprehensive income:
Add: Unrealized holding gain $3,400
Comprehensive income $126,400
b. Blossom Inc
Statement of Comprehensive Income
For the Year Ended December 31, 2021
Particulars Amount
Net income $142,000
Other comprehensive income:
Total holding gains in 2021 $41,000
Add: Reclassification adjustment- $2,700
for loss included in net income $38,300
Comprehensive income $180,300
Note:
Particulars Amount
Net amount received from the sale of Security A $17,900
Less: Cost of Security A $15,200
Loss on the sale of Security A ($2,700)
The borrower questions the amount of the Notary/ Signing fee appearing on the settlement statement, The Notary agent should
Answer: Recommend that such borrower should contact the representative of the lender before the signing of the documents.
Explanation:
In a scenario whereby a borrower is questioning the amount of the notary or the signing fee that appears on the settlement statement, the notary agent should simply tell the borrower that he or she should contact the representative of the lender before the signing of the documents.
If that is done, the borrower can then know the next thing to do after hearing from the lenders representative.
The borrower questions the amount of the Notary/ Signing fee appearing on the settlement statement, The Notary agent should Recommend that the borrower contact the lender's representative before signing the documents.
Recommend that the borrower contact the lender's representative before signing the documents. In the event that a borrower questions the amount of the notary and the signing fee that appears on the settlement declaration, the notary agent should simply inform the borrower that he or she should contact the lender's representative before signing the documents.
If this is done, the borrower will know what to do next after hearing from the lender's representative.
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True or False: The largest companies performed the best over the past 12 months. Give evidence to support your answer.
The largest companies performed the best over the past twelve months, this given statement is false because over the last twelve months companies have faced huge losses due to pandemic.
What losses did businesses face during the Pandemic?Businesses have reduced employment, supply chain have got affected, lack of storage, less demand for products and services, human resource loss, productivity loss, and increased expenditures of the firms, these are some of the major losses faced by the companies during the pandemic.
Thus, the given statement is false.
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ohn joined the military during his senior year in high school with a deferred reporting date. He heard about jobs within the military that he would like to do from a military recruiter who went to his school and showed movies and PowerPoints of military personnel at work. The recruiter answered questions, provided literature, and contact information to the students. After John graduated, he reported to a designated location where he was weighed, required to take a physical fitness test, and take a multiple-choice test. Having passed all of the physical exams and multiple-choice test, John is now on his way to San Antonio, Texas, for boot camp. He will be sent to school in Biloxi, Mississippi, when he completes boot camp. What part of the employment process is represented by boot camp?
Answer: a. Boot camp is the military's version of employee orientation.
Explanation:
To become an employee in a company, it is standard practice for the employer to give the employee an orientation so that they may be able to perform better at their jobs because they would know what is expected of them and how to go about achieving this.
This is the same for the military. When they send recruits to boot camps, they are doing their version of employee orientation because the recruit will learn what Uncle Sam expects from them and how they are to accomplish these tasks.
Fedoras (F)
Very Very Bad-inators (B)
Perry
6/hr
4/hr
Dr. Doofenshmirtz
2/hr
10/hr
Graph the production possibilities frontier per hour for both Perry’s and Dr. Doofenshmirtz’s. (4 points)
Perry’s PPF
Dr. Doofenshmirtz’s PPF
Based on production per hour calculated in b., determine per unit opportunity costs of producing Fedoras and Bad-inators. Show your calculations for both Perry’s and Dr. Doofenshmirtz’s.
Who has comparative advantage in F? (1 point)
Determine a price range that is suitable for trade for both Fedoras and Bad-inators. (4 points)
Price range for Fedoras: 1F = ( , )
Price range for Bad-inators: 1 B = ( , )
If the trade price is 1F = 1B do both Perry and Dr. Doofenshmirtz gain from trade? Why?
(4 points)
Determine the new consumption possibilities frontier (CPF) with trade at the trade price of 1F = 1S for both Perry’s and Dr. Doofenshmirtz’s. Show the area of gains from trade in your graphs if it exists. (6 points)
Some people know how it works but 1+1 is 5
On January 1, 2018, Surreal Manufacturing issued 600 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $583,352. Surreal uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year.
Required:
1. Prepare a bond amortization schedule 2-5.
2. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement.
Answer:
Period Bonds Interest Cash Increase in Bonds payable
Payable Expenses Paid Bonds payable at the end
2018 583352 23334.08 18000 5334.08 588686.1
2019 588686.1 23547.44 18000 5547.44 594233.5
2020 594233.5 23766.48 18000 5766.48 600000
Journal entries
Jan 01 2018
Cash account Dr $583352
Discount on Bonds Payable Dr $16648
Bonds payable Cr $600000
Dec 31 2018
Interest expense Dr $23334.08
Cash account Cr $18000
Discount on bonds Payable Cr $5334.08
Dec 31 2019
Interest expense Dr $23547.44
Cash account Cr $18000
Discount on bonds Payable Cr $5547.44
Dec 31 2020
Interest expense Dr 23766.48
Cash account Cr $18000
Discount on bonds Payable Cr $5766.48
Dec 31 2020
Bonds Payable Dr $600000
Cash account Cr $600000
01.01.2020 (Redemption at 101)
Bonds Payable Dr $600000
Loss on redemption of bonds Dr $11766.48
Cash account (600000*101%) Cr $606000
Discount on bonds payable Cr $5766.48
1. Surrel Manufacturing's bond amortization schedule is as follows:
Bond Amortization Schedule
Date Cash Payment Interest Expense Amortization Carrying Value
Jan. 1, 2018 $583,352
Dec. 31, 2018 $18,000 $23,334 $5,334 $588,686
Dec. 31, 2019 $18,000 $23,547 $5,547 $594,233
Dec. 31, 2020 $18,000 $23,767 $5,767 $600,000
2. Journal Entries to record the bond issuance, interest payments are as follows:
January 1, 2018
Debit Cash $583,352
Debit Bonds Discounts $16,648
Credit Bonds Payable $600,000
To record the issuance of the bonds at a discount.December 31, 2018
Debit Interest Expense $23,334
Credit Bonds Discounts $5,334
Credit Cash $18,000
To record the payment of interest and discount amortization.December 31, 2019
Debit Interest Expense $23,547
Credit Bonds Discounts $5,547
Credit Cash $18,000
To record the payment of interest and discount amortization.December 31, 2020
Debit Interest Expense $23,767
Credit Bonds Discounts $5,767
Credit Cash $18,000
To record the payment of interest and discount amortization.December 31, 2020
Debit Bonds Payable $600,000
Credit Cash $600,000
To record the retirement of the bonds payable.Data and Calculations:
Face value of bonds issued = $600,000 (600 x $1,000)
Bonds proceeds = $583,352
Bonds discounts = $16,648
Coupon interest rate = 3%
Market interest rate = 4%
Maturity period = 3 years
Issuance date = January 1, 2018
Maturity date = December 31, 2020
December 31, 2018:
Cash payment = $18,000 ($600,000 x 3%)
Interest Expense = $23,334 ($583,352 x 4%)
Amortization of discounts = $5,334 ($23,334 - $18,000)
Carrying value of bond = $588,686 ($583,353 + $5,334)
December 31, 2019:
Cash payment = $18,000 ($600,000 x 3%)
Interest Expense = $23,547 ($588,686 x 4%)
Amortization of discounts = $5,547 ($23,547 - $18,000)
Carrying value of bond = $594,233 ($588,686 + $5,547)
December 31, 2020:
Cash payment = $18,000 ($600,000 x 3%)
Interest Expense = $23,767 ($594,233 x 4%)
Amortization of discounts = $5,767 ($23,767 - $18,000)
Carrying value of bond = $600,000 ($594,233 + $5,767)
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Johnson and Gomez, Inc. is a small firm involved in the production and sale of electronic business products. The company is well known for its attention to quality and innovation.
During the past 15 months, a new product has been under development that allows users improved access to e-mail and video images. Johnson and Gomez code named the product the Wireless Wizard and has been quietly designing two models: Basic and Enhanced. Development costs have amounted to $183,000 and $264,000, respectively. The total market demand for each model is expected to be 41,000 units, and management anticipates being able to obtain the following market shares: Basic, 20 percent; Enhanced, 15 percent. Forecasted data follow.
Basic Enhanced
Projected Selling Price $350.00 $450.00
Per-unit productions costs:
Direct material 43.00 69.00
Direct labor 23.00 31.00
Variable overhead 37.00 49.00
Marketing and advertising (fixed but avoidable) 196,000 305,000
Sales commissions* 15% 10%
*Computed on the basis of sales dollars.
Since the start of development work on the Wireless Wizard, advances in technology have altered the market somewhat, and management now believes that the company can introduce only one of the two models. Consultants confirmed this fact not too long ago, with Johnson and Gomez paying $34,600 for an in-depth market study. Sales salaries (excluding commission) will be $86,000 no matter which product is sold. The marketing and advertising costs indicated for each product are incurred only if that product is sold. Other fixed overhead is expected to be the same, regardless of which product is introduced.
Required:
1. Compute the unit contribution margin for both models. (Round your answers to 2 decimal places.)
2. Which of the following should be ignored in making the product-introduction decision? (You may select more than one answer.)
a. Development costs
b. Market study
c. Marketing and Advertising
d. Fixed manufacturing overhead
e. Variable manufacturing overhead
f. Sales salaries
3-a. Prepare a financial analysis and determine which of the two models should be introduced.
3-b. The company would be advised to select the Enhanced model or Basic model?
4. What other factors should Johnson and Gomez, Inc. consider before a final decision is made? (You may select more than one answer.)
a. Possibility of merger of the firm with a bigger player
b. Growth potential of the Basic and Enhanced models
c. Competitive products in the marketplace
d. Aesthetic differences between the two products
e. Break-even points
f. Data validity
g. Previous years' sales trends
h. Production feasibility
i. Effects, if any, on existing product sales
Answer:
1) contribution margin for each product
basic: $ 194.50
enhanced $ 256.00
2)
we could ignore the sunk cost of development and market study
as they were already incurred.
3) we should introduce the basic model as their operating income is greater than enhanced.
3-b)
b. Growth potential of the Basic and Enhanced models
e. Break-even points
f. Data validity
i. Effects, if any, on existing product sales
Explanation:
1)
Basic:
materials 43
labor 23
variable 37
sales commissions 15% 52.5
total variable cost 155.5
CM 194.5
CMR 0.555714286
Enhanced:
Sales Price 450
Materials 69
Labor 31
Variable MO 49
sales com. 10% 45
total variable cost 194
CM 256
CMR 0.568888889
3)
Market 41000 41000
Share 0 0.15
Sales Volume 8,200 6,150
[tex]\left[\begin{array}{cccc}&Basic&Enhanced&Differential\\Sales Volume&8200&6150&\\CM_{unit}&194.5&256&49792\\ CM_{Total}&1594900&1574400&20500\\S.A&-282000&-391000&109000\\Operating&1398900&1269400&129500\\\end{array}\right][/tex]
Given the following information, which of the following firms has the lowest required rate of return? Group of answer choices
a. Schuldig Co. has a current share price of $5.50, an expected dividend of $1.05 per share, and a negative growth rate of 10%.
b. Iccarus Inc. has a current share price of $275.80, an expected dividend of $3.10, and a growth rate of 14%
c. Simpson, LLC. has a current share price of 94.30, an expected dividend of $3.00, and a growth rate of 10%.
d. I don't know that!
Answer:
Shuldig Co. has the lowest required rate of return
Explanation:
Shuldig Co.
$5.50 = $1.05 / (Re + 10%)
Re = 19% - 10% = 9%
Iccarus Inc.
$275.80 = $3.10 / (Re - 14%)
Re = 1.1% + 14% = 15.1%
Simpson LLC.
$94.30 = $3.00 / (Re - 10%)
Re = 3.2% + 10% = 13.2%
If a firm offers a service that is valuable, rare, and costly to imitate, but a substitute exists for the service, the firm will: a. achieve competitive parity. b. have a competitive disadvantage. c. have a temporary competitive advantage. d. gain a sustainable competitive advantage.
Answer:
c. have a temporary competitive advantage
Explanation:
In this case, it is correct to say that the company has a temporary competitive advantage, as there is a substitute for its valuable, rare and expensive service to imitate.
The company gained a competitive advantage in the market for being the only one to offer that service, which by the attributes confer barriers of entry for new competitors, but when there is a substitute for the service and that have the same characteristics, it is correct to say that the company it will lose its competitive advantage in a matter of time, because with more competitors in the market it is common for there to be some loss of market share, so in this case it is ideal for the company to adapt and seek new attributes to innovate, generate more value for consumers and so seek a differential that will guarantee you a higher position in the market.
We have the following information. We have two companies we are considering. They are Anthony and Ben and their betas are 1 and 1.4, respectively. The T bond rate is .02 and the rate of return in the market is .12. The debt rates of the two firms are .30 and .60 in order we have mentioned them. Finally, their tax rates are .25 and .40, respectively. Compute their cost of equity. If they each pay $4 and their growth rate is .01, what are their prices
Answer:
Goof
Explanation: