Answer:
Return on investment = 27.35 %
Explanation:
Below is the given information.
Residual Income = $23000
Operating income = 49,998
Cost of Capital = 12%
Now calculate the invested amount. Here, below is the calculation of the investment amount.
Invetment amount = (Operating income- Residual income) / Cost of capital
= (49998 - 23000) / 12%
= $ 224983
Now calculate the return on investment by using below formula.
The Return on investment = (operating income ÷ investment)×100
=(49998 / 224983) × 100
= 22.22 %
Return on investment = 27.35 %
Undertaking initiatives that help an organization assume an enhanced citizenship role aligns with the human resource management goal of:
Answer:
complying with legal and social obligations
Explanation:
Every organisation runs its business to achieve the objectives of the business.
Further, the organisation seeks to work in an environment which is legally and socially free from any obligations.
The organisation which assumes too have greater citizenship roles automatically aligns the human resource management with the goal of complying with the legal and social obligations.
As with greater citizenship roles there comes greater diversity which helps to ensure the legal and social obligations.
If the interest is compounded more than once per year, which rate is higher, the stated rate or the effective rate?
Answer:
the effective rate is higher
Explanation:
the formula used to calculate effective rate is: effective rate = (1 + r/n)ⁿ - 1
for example, he stated rate is 6%:
if it is compounded annually, the effective rate is 6%if it is compounded semiannually, the effective rate = (1 + 6%/2)² - 1 = 6.09%if it is compounded quarterly, the effective rate = (1 + 6%/4)⁴ - 1 = 6.14%and so onA 5.5%, 20-year municipal bond is currently priced to yield 7.2%. For a taxpayer in the 33% marginal tax bracket, this bond would offer an equivalent taxable yield of:_____.
A) 8.2000.
B) 10.75%.
C) 11.40%.
D) 4.82%.
Answer:
B) 10.75%.
Explanation:
Marginal tax bracket = 33%
The 20 year old bond is being priced to yield 7.2%
We are required to find the equivalent taxable yield that this bond is going to offer.
Equivalent taxable yield =
Yield/(1-tax%)
= 7.2%/(1-33%)
= 10.75%
this bond would offer an equivalent taxable yield of 10.75%
In terms of minimizing tax liability, how would estate planning differ from a partnership to a corporation?
Answer:
The nature of a partnership is the major reason why many businessmen opt for partnership. Businesses of partnership are not taxable since the organizations consistently permit livelihoods and findings to get through the proprietors before any tax collection is finished. Secondly, when an accomplice bites the dust, under default guidelines, the association is broken down. In any case, if there were organization understandings, these understandings and the guidelines administering the association are followed which can permit the living accomplice to close the business, convey assets, and the tax collection trouble is given to the accomplices alive.
Then again, partnerships offer an open door for giving out lifetime business intrigue endowments. Hence, a parent who wishes to blessing their posterity with business endowments can move a few advantages for them. As Kaya and Vereshchagina state, this fills in as a method of decreasing the duty obligation since their youngsters as viewed as on the lower charge section subsequently paying lower charge rates. Essentially, a parent who does this likewise begins to pay lesser duty since they fall under a lower charge classification. A thing significant is that any individual who gets a lifetime business blessing from a company turns into an investor who doesn't have power over the business the executives. Then again, an individual who gets from an organization turns into an accomplice and an operator of the association also with the option to control and deal with the business.
Another distinction is that an partnership can utilize trusts to diminish their tax liability. Nonetheless, there is a distinction between the two. Under an organization, there exists no restriction on the quantity of trust accomplices permitted to possess a home. In enterprises, there is an impediment on the sort of trust they can have. In this way, an organization is esteemed to be more adaptable contrasted with companies.
Jaye Company purchased a new building by signing a note for . The entry to record the transaction is:
Answer:
b. building 28,000
notes payable 28,000
Explanation:
jaye company purchased a new building by signing a note for $28,000. the entry to record the transaction is:
a. building 28,000
cash 28,000
b. building 28,000
notes payable 28,000
c. note payable 28,000
cash 28,000
d. cash 28,000
note payable 28,000
Jaye's company is signing a note of 28,000 and purchasing a building of 28,000
The entry to record Jaye company's transaction is building 28,000, notes payable 28,000
The transaction will not be recorded in
Building:28,000, cash:28,000.
Note payable:28,00, cash:28,000
Cash:28,000, note payable:28,000
Therefore the correct answer is
b. building 28,000
notes payable 28,000
Which of Michael Porter's generic strategies did Renault primarily pursue after the economic crisis?
Answer: Overall cost leadership
Explanation:
Michael Porter's generic strategy that Renault primarily pursued after the economic crisis was overall cost leadership.
This can be noticed when Renault had to reduce its cost and hance started producing cars that were low cost and has result led to sm increase in the profit that was made by Renault.
Poseidon Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Poseidon uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows:
Direct materials: 3 pounds per unit; $3 per pound
Direct labor: 5 hours per unit; $15 per hour
Poseidon produced 5000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the direct labor cost variance was $8000 F. Which of the following is a logical explanation for this variance?
A. The company paid a lower cost for the direct materials than allowed by the standards.
B. The company used a lower quantity of direct materials than allowed by the standards.
C. The company paid a lower cost per hour for labor than allowed by the standards.
D. The company used fewer labor hours than allowed by the standards.
Answer:
C. The company paid a lower cost per hour for labor than allowed by the standards.
Explanation:
direct labor rate/price variance = (AR - SR) x AH
Any favorable variance will result from a lower actual rate than the standard rate. Any difference in the actual number of hours will result in a variance of labor efficiency.
In this case, assuming that actual hours were the same as standard hours, 5,000 x 5 = 25,000 direct labor hours were employed. This means that the actual rate was:
-8,000 = (AR - 15) x 25,000
AR - 15 = -8,000 / 25,000 = 0.32
AR = $14.68
CoffeeCarts has a cost of equity of , has an effective cost of debt of , and is financed with equity and with debt. What is this firm's WACC?
Answer: 12.6%
Explanation:
The Weighted Average Cost of Capital like the term suggests , is the wieghted average cost of the various forms of capital used by a company including debt, equity and preferred equity.
Formula is;
= (Weight of equity* cost of equity) + (weight of debt * cost of debt)
= ( 15.5% * 0.75) + ( 3.9% * 0.25)
= 12.6%
The futures price of gold is $1,000. Futures contracts are for 100 ounces of gold, and the margin requirement is $3,000 a contract. The maintenance market requirement is $1,500. A speculator expects the price of gold to rise and enters into a contract to buy gold.
a. How much must the speculator initially remit?
b. If the futures price of gold rises to $1,005, what is the profit and return on the position?
c. If the futures price of gold declines to $998, what is the loss on the position?
d. If the futures price declines to $984, what must the speculator do?
e. If the futures price continues to decline to $982, how much does the speculator have in the account?
Answer:
a. The initial remittance is the same as the initial margin requirement of $3,000.
b. The profit is;
= 100 ounces * ( 1,005 - 1,000)
= $500
Return is;
= Profit/ Margin
= 500/3,000
= 16.67%
c. The loss is;
= 100 * ( 1,000 - 998)
= -$200
d. If the futures price declines to $984, what must the speculator do?
Depends on if the maintenance requirement is still below the balance.
= 3,000 - 100 * (1,000 - 984)
= $1,400
This is below the maintenance margin of $1,500 and so the speculator will have to deposit an amount that will take it back to the original margin requirement.
= 3,000 - 1,400
= $1,600
Speculator should deposit $1,600.
e. = 3,000 - 100 (1,000 - 982)
= $1,200
How would one demonstrate empathy in a problem resolution with a customer if they are prohibited from helping the customer?
Answer and Explanation:
In simple words, empathy refers to the capability to understand and share the feelings for another person. It contains a long way fro building trust and develops a positive relationship.
Now just take an example suppose a person help the client so he would represent the empathy by speaking in soft spoken language so that the confidence and the trust in the company products could be seen. Also it does not permit the person to fulfill the customer demand as per the company policies.
what percentage of the total variation in candy bar sales is explained by prices? a. 88.54% b. 48.19% c. 78.39% d. 100%
Answer:
The correct option is c. 78.39%.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.
The explanation to the answer is now given as follows:
In regression model, R-squared (R^2) is the statistical measure that shows the percentage of the total variation a dependent variable that is explained by an independent variable(s).
From the question, the candy bar sales is the dependent variable while the Price is the independent variable.
Therefore, the R^2 is calculated using the RSQ function in the Microsoft excel.
Note: See the attached excel file for the calculation of the R^2 using the RSQ function.
For the data in the excel, the R^2 is calculated by simply typing =RSQ(C3:C8,B3:B8) anywhere in the attached excel file. This gives 0.7839. Converting this to a percentage gives 78.39%.
Therefore, percentage of the total variation in candy bar sales explained by prices is 78.39%. The correct option is c. 78.39%.
When should the tip be replaced in the PAC torch?
After 10 hours of use
When the opening is 50% oversized
When the opening is 75% oversized
When the opening is 25% oversized
The correct answer is 50% this is because at that point the tip’s opening will be too large to cut properly.
Determine the amount by which net income would be misstated if Vito's failed to record these adjusting entries. (Ignore income tax expense.) (Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.)
Answer:
-$3,320
Explanation:
The information is missing, so I looked for a similar question:
"a. On July 1, 2021, purchased $14,000 of IBM Corporation bonds at face value. The bonds pay interest twice a year on January 1 and July 1. The annual interest rate is 10%. b. Vito's depreciable equipment has a cost of $27,200, a four-year life, and no salvage value. The equipment was purchased in 2019. The straight-line depreciation method is used. c. On November 1, 2021, the bar area was leased to Jack Donaldson for one year. Vito's received $8,400 representing the first six months' rent and credited deferred rent revenue. d. On April 1, 2021, the company paid $3,360 for a two-year fire and liability Insurance policy and debited Insurance expense. e. On October 1, 2021, the company borrowed $28,000 from a local bank and signed a note. Principal and Interest at 10% will be paid on September 30, 2022. At year-end, there is a $2,200 debit balance in the supplies (asset) account. Only $780 of supplies remain on hand."
a)
Dr Interest receivable 700
Cr Interest revenue 700
b)
Dr Depreciation expense 6,800
Cr Accumulated depreciation: equipment 6,800
c)
Dr Deferred rent revenue 2,800
Cr Rent revenue 2,800
d)
Dr Prepaid insurance 2,100
Cr Insurance expense 2,100
e)
Dr Interest expense 700
Cr Interest payable 700
f)
Dr Supplies expense 1,420
Cr Supplies 1,420
The income statement must be adjusted in the following way:
+ Interest revenue $700
+ Rent revenue $2,800
+ Adjustment to insurance expense $2,100
- Depreciation expense -$6,800
- Interest expense -$700
- Supplies expense -$1,420
Net adjustments = -$3,320 (income statement was overstated)
Trade-offs occur in all of the following scenarios EXCEPT:___________
a) a student has two exams on the following day and must divide study time between the classes.
b) a couple chooses between two equally appealing vacation destinations for the following weekend.
c) a shopper wants to buy two equally appealing shirts totaling $50, and has $35 to spend on each.
d) a caterer selects from two potential jobs, both paying $2,500 on a Saturday night.
e) consumers are often forced to make a compromise between quality and price.
Answer:
c) a shopper wants to buy two equally appealing shirts totaling $50, and has $35 to spend on each.
Explanation:
A trade off is a situation that requires one to make a choice between two alternative lines of action.
The person has to weigh the benefits of each action and choose the best options for him.
In the scenarios above the shopper wants to buy two shirts that cost $50 in total. He has $35 for each so he has a total of $70. This is enough to buy both shirts so there is no trade off.
However in the other options there are trade offs:
- a couple choosing between 2 destinations
- a student must allocate different times between two exams he has the next day
- a caterer selects from two jobs
- consumers compromise between quality and price
Homework American Corporation has the following financial information.
Year 1 Year 2
Cash $202.95 $245.90
A/R 398.02 485.34
Inventory 785.12 648.54
If Year 1 is the base year, what is the percentage increase/decrease of each current asset amount?
A. Cash = 21% increase, A/R = 22% increase, Inventory = 17% decrease.
B. Cash = 25% decrease, A/R = 21% increase, Inventory = 27% decrease.
C. Cash = 21% increase, A/R = 22% decrease, inventory = 17% decrease.
Answer:
A. Cash = 21% increase, A/R = 22% increase, Inventory = 17% decrease.
Explanation:
A base year can be described as a year that is used as a reference year for comparison with other years.
To calculate the percentage increase/decrease of each current asset amount of Homework American Corporation, the following formula is used suing Year 1 as the base year.
Percentage increase/decrease = [(Year 2 amount - Year 1 Amount) / Year 1 Amount] * 100 .............................. (1)
Using equation (1), we have:
Percentage increase/decrease in Cash = [($245.90 - $202.95) / $202.95] * 100 = [$42.95 / $202.95] * 100 = 0.21 * 100 = 21% increase
Percentage increase/decrease in Accounts Receivable (A/R) = [($485.34 - $398.02) / $398.02] * 100 = [$87.32 / $398.02] * 100 = 0.22 * 100 = 22% increase
Percentage increase/decrease in Inventory (A/R) = [($648.54 - $785.12) / $785.12] * 100 = [-$136.58 / $785.12] * 100 = -0.17 * 100 = 17%
Based on the calculations above, the correct option is e. A. Cash = 21% increase, A/R = 22% increase, Inventory = 17% decrease.
According to your textbook, which group of economists is most likely to argue that markets are well-functioning and therefore markets should be responsible for how society allocates resources?
a) Radical economists
b) Conservative economists
c) Neither radical nor conservative economists
d) Both radical and conservative economists
Answer:
c) Neither radical nor conservative economists
Explanation:
This is because, non of the views expressed by both group of economists falls within the argument of functionality of a market and how it should determine how society allocates resources.
Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $41,000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $51,000. Variable manufacturing costs are $33,800 per year for this machine. Information on two alternative replacement machines follows.
Alternative A Alternative B
Cost $ 115,000 $ 114,000
Variable manufacturing costs per year 22,800 10,800
1. Calculate the total change in net income if Alternative A is adopted. (Cash outflows should be indicated by a minus sign.)
2. Calculate the total change in net income if Alternative B is adopted. (Cash outflows should be indicated by a minus sign.)
Answer:
assuming a 5 year period:
1) if alternative A is adopted:
initial cash flow = $115,000 - $51,000 = -$64,000
savings per year = $33,800 - $22,800 = $11,000
$11,000 x 5 years = $55,000
net income will decrease by ($9,000)
2) if alternative B is adopted:
initial cash flow = $114,000 - $51,000 = -$63,000
savings per year = $33,800 - $10,800 = $23,000
$23,000 x 5 years = $115,000
net income will increase by $52,000
1. How does a valid offer to contract differ from an invitation to make offers or enter into a contract
Answer:
A valid offer to contract can result in a valid and legal contract if the offeree accepts it. In order for the acceptance to be valid it must be made within certain time limits and communicated to the offeror, and also the acceptance must have identical terms to the offer. If the terms vary, it is considered a counter offer.
On the other hand, an invitation to make offers would be like selling something on Ebay so that everyone can see it and those interested can make an offer or bid for it. But if you are selling a signed baseball card, you probably have only 1 of each type and even if you have thousands of people interested, you are going to sell it to only 1 person. The invitation to make offers or negotiate isnot a firm offer, e.g. you do not have to sell 1,000 signed baseball cards to everyone who wanting to buy it.
Explain why e-Business scenarios are generally more complex than traditional business scenarios. Discuss the interrelationships of the relevant elements, such as business goals, organization of business, and use of information technology.
Answer:
The answer is because of the nature of each business and that is explained below.
Explanation:
On the one hand, when it comes to e-business scenarios the people who work in those places know that it is much more complex due to the fact that the managers are dealing with information that is wide range in terms of searching engine, clicks on the website, marketing approaches and more. The owners of this type of business must know how to work with all type of tools that could help the business grow and all that information can be difficult to read and to use sometimes due to the big changes that happen in the internet and in the general public movements every day that will affect your clientele.
On the other hand, the traditional business scenarios may be a little bit less complex due to the fact that they are workind with information that comes straight ahead from the sources, like sales and marketing campaign impacts and more. Therefore that this type of business use all the information that is has to keep the goals of the company at sight thanks to the organization that the managers have.
Finally, it is quite understood that the information technology will always be more difficult to manage in e-business becuase of all the variables and factors that influece the information and the decision making process of the company.
To avoid liability for intentional injuries, Northwest Power Corporation includes in its contracts an exculpatory clause. This is:________
Answer:
not enforceable
Explanation:
Exculpatory clause is basically inserted in a contract, where the person can demand relief from the damage based on the circumstances, also this provides to increase the liability of all the remaining parties under the contract.
Thus, this is only feasible when the party demanding such relief is genuinely not responsible for such liability, and that the loss/liability has not been incurred in any circumstances in their knowing capacity.
Where the party demanding the exculpatory clause does any damage intentionally, in order to provide other parties with liabilities, is not valid argument.
Thus, such clause cannot be enforceable in intentionally created liabilities.
Randy’s Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $58,800. The sales price averages $11, and it costs the firm $4 to make and deliver each pizza.
A. How many pizzas must Randy's sell to break even?
B. How many pizzas must the company sell to earn a target profit of $54,000?
C. If budgeted sales total 9,900 pizzas, how much is the company's safety margin in dollars?
D. Tony's assistant manager, an accounting major, has suggested that the firm should try to increase the contribution margin per pizza. Explain the meaning of "contribution margin" in layman's terms.
Answer:
Please see answers below
Explanation:
A. For break even point
= fixed expenses - Contribution margin per unit
Where,
Contribution margin per unit = Sales per unit - Variable cost per unit
= $11 - $4
= $7
Therefore,
Break even points in unit = $58,800 ÷ $7
= 8,400 pizzas
B. Target profit
The break even point = Fixed costs expenses + Target profit / Contribution margin per unit
= ($58,800 + $54,000) / $7
= $112,800 / $7
= 16,114 pizzas
C. Margin of safety in dollars
= (Total sales - Break even in sales) * Selling price per unit
= ( 9,900 - 8,400 ) * $11
= 1,500 * $11
= $16,500
D. Contribution margin in lay man's term.
Contribution margin is when a firm makes or produces a product and then sold it, the difference that is left after deducting variable costs(costs associated with the sales like cost of raw materials used in producing the product) from the the sales of such product is the contribution margin.
‘An enterprise may capture value through either innovation leadership or innovation followership’. Discuss this statement with the help of one example each for innovation leadership and innovation followership.
Answer with Explanation:
Innovation Leadership is a technique through which the leaders influence the behaviors of the employees by telling them about the innovative solutions how its achievement can be fruitful to the company. The innovative followers bring creative and innovative ideas at desk so that the problems are timely and effectively solved or the product or service is delivered with more differentiated features. The relationship is more inclined to solving the problems by opting to modern and distinctive solutions that will bring value to the company. In simple words its all about "Modern problems require modern solutions".
Innovation leader in the case of Apple Incorporation would be Steve Jobs who brought countless innovation which today we experience while using computers, hearing music, using graphical user interface, etc. All these was part of his vision. If we consider his vision statement which is as under:
“To make a contribution to the world by making tools for the mind that advance humankind.” Steve Jobs
We can see that the innovation lies in the heart of the vision statement. So no doubt he revolutionized the whole of the world and his innovation fellowership were influenced by this behavior which let Apple to accomplish innovation that advanced humankind by the introduction of graphical user interface, better secure computers, mouse, portable music players, Iphones, iPods, Macbook, etc,.
Recession and inflation have decreased the value of your investments. This is an example of ______.a. economic risk. b. industry risk. c. company riskd. investment risk
Answer:
A
Explanation:
Economic risk is the risk that macroeconomic conditions would affect the value of investment .
Examples of economic risks are Recession and inflation
What is the relationship among organizational theory, organizational design, change, structure, and culture
Answers and Explanation:
Organizational theory is the study of the organization's function and how it relates and is affected by its environment. Organizational structure is the formal organization of authority, roles and responsibilities in the organization in such a way as to achieve the organizational goals and objectives. Organizational design and change is a process that manages organizational structure and culture to achieve organizational goals. Organizational culture are the set of norms and accepted behaviour that is shared and controls communication and interaction in the organization all geared towards achieving organizational goals. We can see that organizational structure,design and change as well as culture fall under organizational theory which studies all its dimensions. Organizational design and change connects and manages organizational structure and change and design. All organizational components are geared towards achieving organizational goals.
Common shares of which of the following issuers are likely to have a Beta coefficient much lower than +1?A. Tool and die makerB. Pharmaceutical manufacturerC. Public utilityD. Electronics manufacturer
Answer:
C
Explanation:
Beta measures the volatility of a stock. The higher the beta, the higher the volatility and the higher the risk of the stock.
Public utility would most like have a beta less than 1 because it would most likely not be affected by business cycles
You would like to have enough money saved after your retirement such that you and your heirs can receive $100,000 per year in perpetuity. How much would you need to have saved at the time of your retirement in order to achieve this goal
Answer:
The amount you need to have saved at the time of your retirement in order to achieve this goal is $800,000.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
You would like to have enough money saved after your retirement such that you and your heirs can receive $100,000 per year in perpetuity. How much would you need to have saved at the time of your retirement in order to achieve this goal? (Assuming that the perpetuity payment starts one year after the date of your retirement. The annual interest rate is 12.5 percent).
The explanation to the answer is now given as follows:
A perpetuity can be described as periodic payments that are receivable or payable indefinitely or forever. A perpetuity is also referred to as an annuity that does have an end.
In order to determine the amount you need to have saved at the time of your retirement in order to achieve the goal, the formula for calculating the present value (PV) of a perpetuity is used as follows:
PV = FV / r ............................................. (1)
Where;
PV = Present value of or the amount needed to be saved at the time of retirement = ?
FV = Future value of the amount you and your heirs can receive = $100,000
r = interest rate = 12.5%
Substituting the values into equation (1), we have:
FV = $100,000 / 12.5%
FV = $800,000
Therefore, the amount you need to have saved at the time of your retirement in order to achieve this goal is $800,000.
A distinguishing feature of a quasi-experimental study is that it:__________.
Answer:
Explanation:
A distinguishing feature of a quasi- experimental study is that it involves manipulating variables of interest but not controlling additional variables that might affect results. Hence, Quasi-experimental research involves the manipulation of an independent variable without the random assignment of participants to conditions or orders of conditions. Among the important types are nonequivalent groups designs, pretest-post-test, and interrupted time-series designs.
A distinguishing feature of a quasi-experimental study is that it involves manipulating variables of interest but not controlling additional variables that might affect results.
Quasi-experimental studies try to assess treatments but do not employ randomization. Quasi-experiments, like randomized trials, seek to show causation between an intervention and a result.
In an experimental research study, participants are randomly allocated to either the treatment (product users) or control (product non-users) groups.
Participants in quasi-experimental research are not allocated to treatment or control groups at random for comparative purposes.
Therefore, Quasi-experimental research is distinguished by the fact that it includes changing variables of interest but without controlling additional factors that may affect outcomes.
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According to your text, the accounting profession has adopted a modified all-inclusive concept to income reporting. Using this approach companies report unusual or irregular items as a part of net income. What are these items and are they reported separately on the income statement
Answer:
The unusual or irregular items are:
Gains or losses from the sales of assetsGains or losses from the restructuring of debtsAsset impairment gains or lossesGains or losses from discontinued operationsGains or losses from the early pay-off of Bonds/DebtsGains or losses arising from Merger and Acquisition or divestitureGains or losses arising from natural disaster damagesGains or losses from changes in accounting policiesLitigation or Insurance settlements and proceedsThese items are reported separately on the income statement. They are not included in the operating income as they do not form part of the core operations of businesses.
Explanation:
The modified all-inclusive concept or comprehensive income concept attempts to report all gains or losses including nonrecurring, unusual, or irregular items as part of the net income in order to ensure more informative and less subjective financial reporting. It is the opposite of the Current operating performance concept which takes nonrecurring, irregular, or unusual items straight to the Equity in the balance sheet. However, with the modified all-inclusive concept, these items are usually reported separately on the income statement so that users of financial statements could decide whether to include or exclude them in their analysis.
_____________ is a promise of future payment issued by a firm and guaranteed by a bank that is used to finance international trade with typical maturities ranging from one to six months.
Answer:
"A banker's acceptance" is a promise of future payment issued by a firm and guaranteed by a bank that is used to finance international trade with typical maturities ranging from one to six months.
Explanation:
A banker's acceptance is a characteristic short-term loan or rather a fixed-rate loan used for international trade. It is safer, easier, gives the seller assurance of getting paid by the buyer's bank. The bank is obligated to pay the party offering service, in this case, "the exporter" at a later time. The buyer's bank after conducting checks to ascertain how creditworthy the buyer who approached them might be, finally they agree to pay the seller with the buyer's account debited as this works as additional security for both parties. Banker's acceptance is considered investments, one of the reasons is that it can be held until maturity or sold at a discount before maturity.
A company sells 800 units at $16 each, has variable costs of $12 per unit, fixed costs of $1,200, and a 40% tax rate. The pre-tax income is $
Answer:
Pretax income= 2,000
Explanation:
Giving the following information:
A company sells 800 units at $16 each, has variable costs of $12 per unit, fixed costs of $1,200.
We need to determine the pretax income:
Sales= 800*16= 12,800
Variable cost= 800*12= (9,600)
Contribution margin= 3,200
Fixed cost= (1,200)
Pretax income= 2,000