Answer:
1. Identification of mentioned entities:
a. Ray Steen and Steen Enterprises
b. Steen Enterprises and Ray Steen
c. First Bank and Steen Enterprises
d. Stan Rhoades and Steen Enterprises
e. Zoro Realty Company and Steen Enterprises
f. Steen Enterprises, Customers, and Employees
2. Effects on Entities' Cash Accounts:
a. Ray Steen's personal Cash Account decreased and Steen Enterprises' increased by $100,000
b. Steen Enterprises' Cash Account increased as above.
c. First Bank's Cash Account decreased and Steen Enterprises' increased by $60,000 respectively.
d. Stan Rhoades' Cash Account decreased and Steen Enterprises' increased by $75,000
e. Zoro Realty Company's Cash Account increased while Steen Enterprises' decreased by $150,000.
f. Steen Enterprises, Customers, and Employees: Cash Account of Steen Enterprises increased and Customers' decreased by $56,000 respectively. Also the cash account of Steen Enterprises decreased and Employees' cash accounts increased by $31,000 respectively.
Explanation:
A legal entity is a person (like Ray Steen, Stan Rhoades, Employees, and Customers, etc), department, team, corporation (First Bank, Zoro Realty Company, and Steen Enterprises), cooperative, partnership, or other groups with whom it is possible to conduct business where economic resources are exchanged between economic agents (entities) undertaking economic events. This shows that in every business transaction, three important things are involved. They are resources, events, and agents. The resources describe the monetary value of assets (economic resources) that are exchanged between the agents. The events are the transactions while the agents are the entities (different personalities) that are involved in the exchange. This is fully developed in the REA model of accounting system.
A client interested in the returns offered by CMOs asks you which type has the lowest prepayment risk. What should you say
Answer: Planned amortization class (PAC) tranches
Explanation:
The planned amortization class (PAC) is a form of CMO which is typically put I place for that risk-averse investors. It gives a principal repayment schedule that have been predetermined in as much as there are certain range for the mortgage prepayment.
It should also be noted that it has top priority and also gets principal payments which can be up to certain amount.
A company uses the weighted average method for inventory costing. At the start of a period the production department had 28,000 units in beginning Work in Process inventory which were 44% complete; the department completed and transferred 169,000 units. At the end of the period, 26,000 units were in the ending Work in Process inventory and are 79% complete. The production department had conversion costs in the beginning goods is process inventory of $103,000 and total conversion costs added during the period are $726,925. Compute the conversion cost per equivalent unit.
Answer: $4.38
Explanation:
Conversion costs are based on completed units so those units that are yet to be completed will be converted into equivalent units.
Units produced = Units completed and transferred out + equivalent WIP
= 169,000 + (26,000 * 79%)
= 169,000 + 20,540
= 189,540 units
Total Conversion costs = beginning conversion costs + conversion costs added during period
= 103,000 + 726,925
= $829,925
Conversion cost per equivalent share
= 829,925/189,540
= 4.3786
= $4.38
When comparing Real Estate Investment Trusts (REITs) to Real Estate Limited Partnerships (RELPs), which of the following statements are TRUE?I REITs allow for flow through of gainII RELPs allows for flow through of gainIII REITs allow for flow through of lossIV RELPs allow for flow through of lossa. I and II onlyb. III and IV onlyc. I, II, IVd. I, II, III, IV
Answer: c. I, II and IV
Explanation:
A real estate investment trust is a company which owns, and operates real estate while real estate limited partnership (RELP) is a real estate investment whereby several investors use their money to either develop or buy real estate.
Based on the information in the question, the true options are:
• REITs allow for flow through of gain
• RELPs allows for flow through of gain
• RELPs allow for flow through of loss
It should be noted that REITs doesn't allow for flow through of loss while RELP is a tax sheltered investment and therefore it gives room for gain and loss.
A measure of GDP in which quantities produced are valued at the prices of a fixed base year is called:
Answer:
Real GDP
Explanation:
A measure of GDP in which quantities produced are valued at the prices of a fixed base year is called "Real GDP"!
Real GDP measures the values of the output adjusted for price changes. It reflects the value of all goods and services which are produced in a particular year.
It is also known as "constant-price" GDP. Mathematically, Real GDP = nominal GDP/ deflator.
You have been asked to give a presentation to your co-workers in the digital marketing department at your current employer on what factors should be considered in assessing the effectiveness of your firm’s search and display ads more accurately. Choose any two of the five issues related to measuring the effectiveness of search and display ad that are discussed in the Digital Marketing reading and briefly outline what you will tell your co-workers.
Answer:
Five metrics for measuring the effectiveness of Display Ads are:
ImpressionsClick-Through RateViewersConversions/Return on Investment (ROI)Returning visitorsI will speak on item 1 and item 4 using the following outlines:
Item 1:
Unfilled ImpressionsFluctuating ImpressionsHow ad impressions are measured by GoogleItem 2:
How to calculate Conversions/ROI on Display ADsConversion TrackingImproving Conversion and ROI on Display ADsCheers!
A registered representative conducts a seminar about investing in the meeting room of a local apartment complex. At the end of the talk, he hands out his business card and tells the attendees that if they want additional information, please write their contact information on the reverse side of the business card and return it to him. When he gets back to the office and starts to re-contact some of the attendees who returned the business card, he finds that one of them is blocked because the client name is on the National Do Not Call Registry. Which statement is TRUE
Answer:
This prospect can be called by the registered representative expressed consent.
Explanation:
Based on the policy information available, it possible for such a call to occur despite the fact the client is on the National Do Not Call Registry if the registered representative gains expressed consent from the client.
There are many activities in marketing that are interrelated and similar in purpose. These
activities are referred to as marketing
Explanation:
they are in the chain of distribution
channels of distribution aremanufacturer ---agent --- wholesale---retailer ---consumer
At the beginning of 2018, ABC began offering a 1-year warranty on its products. The warranty program was expected to cost ABC 4% of net sales. Net sales made under warranty in 2018 were $180 milion. Five percent of the units sold were returned in 2018 and repaired or replaced at a cost of $5.3 million. The amount of warranty expense on ABC's 2018 income statement is
A) $27.0 million.
D) S5.3 million.
B) S9.0 million.
C) S7.2 million.
Answer:
$7.2 million
Explanation:
Calculation for the amount of warranty expense on Angel's 2016 income statement
Using this formula
Warranty expense =Net sales ×Expected percentage of net sales
Let plug in the formula
Warranty expense=$180 million×4%
Warranty expense=$7.2 million
Therefore the amount of warranty expense on Angel's 2016 income statement will be $7.2 million
Long-term creditors are usually most interested in evaluating
a) liquidity and solvency.
b) solvency and marketability.
c) liquidity and profitability.
d) profitability and solvency.
Answer:
d) Profitability and Solvency
Explanation:
The long term creditors are transacting with the company for a long term. The long term creditors are looking to the company for paying debt in the future . So long term creditors are looking on profitability ratios and solvency ratio to study on it.
Long-term creditors are usually most interested in evaluating a) liquidity and solvency.
What is Long-term creditorsBanks and bondholders, who lend money for a long time, are worried about how likely a borrower is to pay back their debts over a long period of time. Assessing liquidity means checking if the borrower can pay off its short-term debts, like interest or loan amounts.
Creditors use liquidity and solvency assessments to understand if a borrower is financially stable and will be able to repay their debt on time. This helps the creditors feel confident in the borrower's ability to make payments.
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LDR manufacturing produces a pesticide chemical and uses process costing. There are three processing departments - Mixing, Refining, and Packaging. On January 1, 2012, the first department , Mixing, had a zero beginning balance. During January, 40000 liters of chemicals were started into production. During the month, 32,000 liters were completed, and 8000 remained in process, partially completed. In the mixing department, all raw materials are added at the beginning of the production process, and conversion costs are applied evenly through the process.
At the end of January, the equivalent unit data for the Mixing Department were as follows:
equivalent units | transferred in
units to account for
completed 32000 | 0
end bal WIP 8000 | 0
40000| 0
equivalent units
Direct Mtls Cost | conversion cost
32000 | 32000
8000 | 4800
40000 | 36800
In addition to the above, the costs per equivalent unit were $1.20 for direct materials and $5.75 for conversion costs. Using this data, please calculate the full cost of the units that were transferred out of the Mixing Department and into the Refining Department.
a) $222400
b) $48000
c) $37200
d) $211600
Answer:
Total cost transferred to Refining would be $222400
Explanation:
The costs per equivalent unit were $1.20 for direct materials and $5.75 for conversion costs
Since all the materials are added in the beginning of the process the equivalent units for materials are 40,000
The Equivalents units transferred out are 32000 both for materials and conversion
So the total cost transferred to Refining would be
32000 * 1.20 = $ 38400
32000 * 5.75 = $ 184000
Total $222400
Two different products are obtained by refining one ore. The refining process would be considered as:
Answer: Joint process
Explanation:
Joint products result when the same raw resource is processed so Joint process refers to the process by which two (or even more) products are obtained by refining one ore.
The processing of oil for instance results in the production of kerosene, gasoline, bitumen, airplane fuel and even petroleum jelly so all those products are joint products.
Joint products result when the same raw material is processed, so Joint Process refers to the process by which two (or more) products are obtained by refining one ore.
What do you mean by Joint Product?A joint product can be the result of a process with fixed or variable dimensions. A joint product is a product that results in collaboration with other products in the processing of the same input; this common process is also called joint production.
The processing of oil for example results in the production of kerosene, gasoline, bitumen, airplane fuel, and even petroleum jelly so all of these products are joint products.
Hence, Joint Process is the correct choice.
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Which of the following statements about steering needed resources to execution-critical value chain activities is false?
A) Good execution of a new or revised strategy often requires devoting more resources to some value chain activities and perhaps downsizing the operating budgets and resources devoted to activities/organizational units with a lesser role in the new strategy.
B) Both strategy changes and efforts to improve execution of an existing strategy typically entail budget reallocation and resource shifting.
C) A company's operating budget must be both strategy-driven (in order to amply fund competent performance of strategy-critical value chain activities) and lean (in order to operate as cost-efficiently as possible).
D) Strategy changes and new execution initiatives should normally be made without adding to total expenses.
E) Underfunding organizational units and execution-critical value chain activities slows down the whole process of implementing and executing strategy and impedes the efforts of organizational units to execute their pieces of the strategic plan proficiently.
Answer:
A) Good execution of a new or revised strategy often requires devoting more resources to some value chain activities and perhaps downsizing the operating budgets and resources devoted to activities/organizational units with a lesser role in the new strategy.
Explanation:
Businesses have limited resources that needs to be allocated to critical activities that will make it meet its objectives. So it is important for proper prioritisation to be done to maximise use of these resources.
There is need to focus activities on the company's objectives and to use a lean budgeting approach to ensure cost efficiency.
It is important to note that underfunding execution critical activities may result in slowdown of the whole process.
Reallocating resources to critical activities is also necessary.
So the statement - Good execution of a new or revised strategy often requires devoting more resources to some value chain activities. Is false
All effort must be on activities that fit into the company's strategy.
If the inflation rate is zero, changes in relative prices signal a change in the _____ for the economy.
Answer: desirable mix of output.
Explanation:
It should be noted that spending of consumers will rise when there's an healthy economy and growth in stock market. This implies that more goods are been bought by the people are therefore there'll be more demand for goods.
When inflation rate is at zero, it simply bmeans that there's no robust economy and the demand for goods is not competitive. Therefore, changes in relative prices signal a change in the desirable mix of output.
Suppose there are three firms in a market. The largest firm has sales of $50 million, and each of the other two firms has sales of $25 million. The Herfindahl-Hirschman Index of this industry is:________.
a. 2,500.
b. 3,750.
c. 2,550.
d. 3,125.
Answer:
b. 3,750.
Explanation:
The computation of the Herfindahl-Hirschman Index of this industry is shown below:
Herfindahl-Hirschman Index of this industry is
= ($50 million) ^2 + ($25 million) ^2 + ($25 million) ^2
= $2,500 + $625 + $625
= $3,750 million
Hence, the correct option is b. $3.750
We simply do the above calculation so that the index could come
In the commitment stage of the change process the individual level of commitment can continue to change.a) trueb) false
Answer:
True
Explanation:
In the commitment stage of the change process the individual level of commitment can continue to change.
The individual level of commitment can continue to change as the individual gains experience with the change and continues to find ways to refine and improve the change. The commitment stage is the threshold for change action.
Commitment to change is a force that propels an individual to take action that is deemed necessary for successful implementation of the change.
Which of the following interactions with vendors would potentially lead to inventory reductions?
a. reduced lead times
b. increased safety stock
c. less frequent purchases
d. larger batch quantities
e. longer order intervals
Answer: a. reduced lead times
Explanation:
Lead time in a process refers to the amount of time it takes from the process's initiation to its conclusion. In general in Business, the shorter the lead time of a process, the better for the business as it usually leads to higher productivity, output and revenue levels.
Same goes for the reduction of lead times in transaction with vendors. With a shorter lead time, the process of making goods available for sale would be less and thus the goods can be sold in the market quicker therefore reducing inventory levels.
101. Present Value Find the present value that will grow to $5000 if interest is 3.5% compounded quarterly for 10 yr
Answer:
PV= $3,528.81
Explanation:
Giving the following information:
Future value= $5,000
Interest rate= 3.5% compounded quarterly
Number of periods= 10 years
First, we need to determine the quarterly interest rate and the number of periods:
i= 0.035/4= 0.00875
n=10*4= 40
Now, using the following formula, we can calculate the present value:
PV= FV/(1+i)^n
PV= 5,000/(1.00875^40)
PV= $3,528.81
The following information is available for Shanika Company for 20Y6: Inventories January 1 December 31 Materials $457,760 $563,040 Work in process 823,970 765,730 Finished goods 791,920 782,630 Advertising expense $382,300 Depreciation expense-office equipment 54,050 Depreciation expense-factory equipment 72,630 Direct labor 867,080 Heat, light, and power-factory 28,720 Indirect labor 101,350 Materials purchased 850,190 Office salaries expense 296,720 Property taxes-factory 23,650 Property taxes-headquarters building 48,980 Rent expense-factory 39,980 Sales 3,980,690 Sales salaries expense 488,720 Supplies-factory 19,710 Miscellaneous costs-factory 12,390 Required: 1. Prepare the 20Y6 statement of cost of goods manufactured. Shanika Company Statement of Cost of Goods Manufactured For the Year Ended December 31, 20Y6
Answer:
Shanika CompanyStatement of Cost of Goods Manufactured For the Year Ended December 31, 20Y6:
Materials:
Beginning Inventory $457,760
Purchases 850,190
Cost of materials available $1,307,950
Less Ending Inventory 563,040
Cost of materials used $744,910
Beginning Work in process 823,970
Direct Labor 867,080
Factory Overhead 298,430
Less Ending Work in process (765,730)
Cost of goods manufactured $1,968,660
Explanation:
1) Data and Calculations:
a) Shanika Company for 20Y6:
Inventories January 1 December 31
Materials $457,760 $563,040
Work in process 823,970 765,730
Finished goods 791,920 782,630
Advertising expense $382,300
Depreciation expense-office equipment 54,050
Depreciation expense-factory equipment 72,630
Direct labor 867,080
Heat, light, and power-factory 28,720
Indirect labor 101,350
Materials purchased 850,190
Office salaries expense 296,720
Property taxes-factory 23,650
Property taxes-headquarters building 48,980
Rent expense-factory 39,980
Sales 3,980,690
Sales salaries expense 488,720
Supplies-factory 19,710
Miscellaneous costs-factory 12,390
b) Factory Overhead:
Depreciation expense $72,630
Heat, light, and power 28,720
Indirect labor 101,350
Property taxes-factory 23,650
Rent expense-factory 39,980
Supplies-factory 19,710
Miscellaneous costs 12,390
Total Factory overhead $298,430
c) The cost of goods manufactured is made up of the costs of materials, direct labor, work in process, and manufacturing overhead.
A company found that they had lost $30,000 in scrap and rework. They had spent $35,000 in prevention-related activities. The ratio of prevention cost to failure cost is ______________.
Answer:
7:6
Explanation:
A company lost $30,000 in scrap and rework
They spent $35,000 in prevention related activities
Therefore the ratio of prevention cost to failure cost can be calculated as follows
= 35,000/30,000
= 7:6
Hence the ratio of the prevention cost to failure cost is 7:6
Two investment centers at Marshman Corporation have the following current-year income and asset data:
Investment Investment
Center A Center B
Investment center income $415,000 $525,000
Investment center average invested assets $2,400,000 $1,950,000
The return on investment (ROI) for Investment Center B is:__________
a) 371.4%
b) 26.9%
c) 24.1%
d) 39.2%
Answer:
b) 26.9%
Explanation:
Computation of the return on investment (ROI) for Investment Center B
Using this formula
Return on investment (ROI) =Investment center income/Investment center average invested assets
Let plug in the formula
Return on investment (ROI) =$525,000/$1,950,000
Return on investment (ROI) = 0.269×100
Return on investment (ROI) = 26.9%
Therefore the return on investment (ROI) for Investment Center B is 26.9%
Financial accounting information ________.
should be incomplete in order to confuse competitors
should be prepared differently by each company
provides investors guarantees about the future
summarizes what has already occurred
Pretty sure it is D. summarizes what has already occurred.
Definitely not A or B. And C is incorrect because this branch of accounting tracks passed transactions, and does not guarantee anything in the future. Hence D.
Jones Corp. reported current assets of $196,000 and current liabilities of $138,500 on its most recent balance sheet. The current assets consisted of $61,000 Cash; $42,100 Accounts Receivable; and $92,900 of Inventory. The acid-test (quick) ratio is
Answer:
0.74
Explanation:
Jones corporation reported a current assets of $196,000
The current liabilities is $138,500
The current assets consists of $61,000 cash , account receivable= $42,100, inventory= $92,900
Therefore the quick ratio can be calculated as follows
= cash + account receivables
= $61,000 + $42,100
= $103,100
$103,100/$138,500
= 0.74
Hence the acid test(quick ) ratio is 0.74
Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: Original Budget Actual Costs Variable overhead costs: Supplies $ 8,300 $ 8,490 Indirect labor 10,770 10,120 Fixed overhead costs: Supervision 16,110 14,540 Utilities 15,400 15,450 Factory depreciation 58,130 59,650 Total overhead cost $ 108,710 $ 108,250 The company based its original budget on 8,300 machine-hours. The company actually worked 8,260 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 8,190 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?
Answer:
$1,188 unfavorable
Explanation:
Volume variance = Budgeted fixed overhead cost - Fixed overhead applied to work in process.
$89,640 ÷ 8,300 machine hours
= $10.8 per machine hours
= $89,640 - ( 8,190 machine hours * $10.8 per machine hours )
= $89,640 - $88,452
= $1,188 unfavorable
In the circular flow of income and spending, financial institutions …
[1] act as an intermediary between those who have surplus funds and those who have deficit funds.
[2] are not always useful, as households generally spend all their available funds.
[3] create an injection into the flow by collecting savings from participants with surplus units only; therefore, there is no need to provide funds to deficit units.
[4] generally exist to collect investment spending and transform it into savings.
Answer:
1] act as an intermediary between those who have surplus funds and those who have deficit funds.
Explanation:
"Which statements are TRUE about IO tranches? I When interest rates rise, the price of the tranche falls II When interest rates rise, the price of the tranche rises III When interest rates fall, the price of the tranche falls IV When interest rates fall, the price of the tranche rises"
The available options are:
A. I and III
B. I and IV
C. II and III
D. II and IV
Answer:
C. II and III
Explanation:
IO tranche which is an acronym for Interest Only tranche is defined as a form of tranche which earns interest only from a secured loan which is derived from Principal Only tranche.
However, Interest Only tranche is quite different from a typical bond, simply because when market interest rate increases the rate of prepayment decreases, which in turn makes the rate of maturity to be longer. Thereby when interest rates increase, prices increase, and vice versa.
Hence the true statements are:
II When interest rates rise, the price of the tranche rises
III When interest rates fall, the price of the tranche falls
Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2018 and 2019 was 8,000 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations: 2018 2019Units sold 6,500 9,000Units produced 8,000 8,000Costs: Variable factory overhead per unit $0.20 $0.20Fixed factory overhead $1,200 $1,200Variable marketing per unit $0.30 $0.30Fixed Selling and Administrative $320 $320Variable costing operating income for 2015 is calculated to be:a. $430.b. $655.c. $149.d. $1,030.e. $1,180.
Answer:
Results are belolw.
Explanation:
First, we need to calculate the total unitary variable cost:
Unitary variable cost= 0.2 + 0.3= $0.5
Income statement:
Sales= 8,000*0.8= 6,400
Total variable cost= (8,000*0.5)= (4,000)
Contribution margin= 2,400
Fixed factory overhead= (1,200)
Fixed Selling and Administrative= (320)
Net operating income= 880
Operating income is the actual income earned by the business from its regular business operations. It is determined from preparing the income statement at the end of the financial year.
The operating income through variable costing is $880.
The variable cost operating income is prepared by deducting all the variable costs from sales and from the contribution margin entire fixed costs are deducted to determine the net operating income.
The variable cost operating income statement is attached in the image below.
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If he earns 5 percent on his money, how much must he deposit at the start of his studies to be able to withdraw $9,000 a year for three years?
Answer:
He must deposit $24,509.23 at the start of his studies.
Explanation:
The amount to be deposited, PV is calculated as follows :
r = 5
Pmt = $9,000
P/yr = 1
n = 3
Fv = $ 0
Pv = ?
Using a Financial Calculator, the amount to be deposited, PV is $24,509.23.
When Isaiah Company has fixed costs of $122,090 and the contribution margin is $29, the break-even point is
Answer:
Break-even point in units= 4,210 units
Explanation:
Giving the following information:
Isaiah Company has fixed costs of $122,090 and the contribution margin is $29.
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 122,090/29
Break-even point in units= 4,210 units
A Multilevel Approach to the Study of Motor Control and Learning (2nd Edition)
The average reader will spend 7 hours and 44 minutes reading this book at 250 WPM (words per minute).
How quickly can you read this book?
Answer:
7 hours and 44 minutes
Explanation:
According to the question, the data provided is as follows
Time taken by average reader = 7 hours and 44 minutes
Number of words per minute = 250
Based on the above information, the number of hours to read this book in quickly is 7 hours and 44 minutes as this is equivalent to the time taken by the average reader
So the same is to be considered for reading the book at 250 WPM
If 30,000 after-tax dollars are invested at 7% in a single-premium tax-deffered annuity, how many after-tax dollars will be accumulated in 20 years
Answer:
$72,000Explanation:
We need to first calculate the interest on investing $30,000 after 20 years at 7% in a single-premium tax-deffered annuity using the simple interest formula.
Simple interest = Principal * Rate * Time/100
Simple interest = $30,000*7*20/100
Simple Interest = $42,000
After-tax dollars that will be accumulated in 20 years = Initial investment + Interest = $30,000+$42,000 = $72,000
Hence, after-tax dollars that will be accumulated in 20 years is $72,000.