Answer:
$500,000 of notes payable as short-term and $3,500,000 as long-term obligations.
Explanation:
SHORT-TERM debt which is also known as current liabilities can be defined as a company or an organisation financial obligations which are expected to be pay off with one year.
LONG TERM liability which is also known as non current liabilities can be defined as the type of liability which is an obligation that occured from a previous event which is not due within one year of the said date of the balance sheet
$4,000,000 of notes payable due on March 11, 2017 -$3,500,000 cash on a two-year renewable basis
=$500,000 of notes payable as short-term
Therefore On the December 31, 2016, balance sheet, Reunion should classify as :
$500,000 of notes payable as short-term and $3,500,000 as long-term obligations.
You are given the following information for Bowie Pizza Co.: Sales = $64,000; Costs = $30,700; Addition to retained earnings = $5,700; Dividends paid = $1,980; Interest expense = $4,400; Tax rate = 22 percent. Calculate the depreciation expense. (Do not round intermediate calculations and round your answer to the nearest dollar.)
Answer:
$18554
Explanation:
The formula for addition to retained earnings can be used to determine the amount of depreciation expense as shown below:
addition to retained earnings=sales-costs-depreciation expense-interest expense-tax paid-dividends
addition to retained earnings=net income-dividends
5700=net income-1980
net income=5700+1980=7680
if tax 22%,net income is 1-22%=0.78
profit before tax=7680 /0.78= 9,846.15
tax = 9,846.15*22%= 2,166.15
using the long formula,we have depreciation expense
5700=64000-30700-depreciation expense-4400-2666.15-1980
depreciation expense=64000-30700-4400-2666.15-1980-5700
depreciatio expense=$18553.85
When stocks are held in street name, Group of answer choices the investor receives a stock certificate without the owner's street address. the investor does not receive a stock certificate. the broker holds the stock in the brokerage firm's name on behalf of the client. the investor does not receive a stock certificate, and the broker holds the stock in the brokerage firm's name on behalf of the client. the investor receives a stock certificate with the owner's street address.
Answer:
the broker holds the stock in the brokerage firm's name on behalf of the client.
Explanation:
In simple words, A security would be carried in "street name," when that is retained by a fund manager or a brokerage on a client 's behest. The title appearing on such stock or bond certification is the buyer 's definition however the person paying for the shares maintains property rights.
If brokers held the physical access credentials, the danger of psychical damage , loss as well as robbery would boost. Brokerage firms are able to maintain the shares electronically by retaining them in street names.
Question 3
You are the Chief Operations Officer responsible for overall company operations in ATCHULO Company Ltd, a large courier company in Ghana. Your company has 16 regional offices (terminals) scattered around the country in each of the regional capitals and a main office (hub) located in the capital city of the country. Your operations are strictly domestic. You do not accept international shipments.
The day at each terminal begins with the arrival of packages from the hub. The packages are loaded onto trucks for delivery to customers during morning hours. In the afternoon, the same trucks pick up packages that are returned to the terminal in late afternoon and then shipped to the hub where shipments arrive from the terminals into the late evening and are sorted for delivery early the next day for the terminals.
Examiner: Dr. Abubakari Atchulo Page 1 of 2
Each terminal in your company is treated as an investment centre and prepares individual income statements each month. Each terminal receives 30% of the revenue from packages that it picks up and 30% of the revenue from the packages it delivers. The remaining 40% of the revenue from each transaction goes to the hub. Each terminal accumulates its own costs. All costs relating to travel to and from the hub are charged to the hub. The revenue per package is based on size and service type and not the distance the package travels. (There are two services: overnight and ground delivery, which takes between 1 and 7 days, depending on the distance traveled).
All customer service is done through a central service group located in the hub. Customers access this service centre through a toll-free telephone number. The most common calls to customer service include requests for package pickup, requests to trace an overdue package, and requests for billing information. The company has invested in complex and expensive package tracking equipment that monitors the package’s trip through the system by scanning the bar code placed on every package. The bar code is scanned when the package is picked up, enters the originating terminal, leaves the originating terminal, arrives at the hub, leaves the hub, arrives at the destination terminal, and is delivered to the customers. All scanning is done with hand held wands that transmit the information to the regional and then central computer.
The major staff functions in each terminal are administrative (accounting, clerical, and executive), marketing (the sales staff), courier (the people who pick up and deliver the shipments and the equipment they use), and operations (the people and equipment who sort packages in the terminal).
This organisation takes customer service very seriously. The revenue for any package that fails to meet the organisation’s service commitment to the customer is not assigned to the originating and destination terminals.
All company employees receive a wage and a bonus based on the terminal’s economic value added. This system has promoted many debates about the sharing rules for revenues, the inherent inequity of the existing system, and the appropriateness of the revenue share for the hub. Service problems have arisen primarily relating to overdue packages. The terminals believe that most of the service problems relate to wrong sorting in the hub, resulting in packages being sent to the wrong terminals.
Required:
A) Explain why an investment centre is or not an appropriate organisational design in ATCHULO Company Ltd. (15 marks)
B) Assuming that ATCHULO Company Ltd is committed to the current design, how would you improve it? (15 marks)
C) Assuming that ATCHULO Company Ltd has decided that the investment centre model is
unacceptable, what model to performance evaluation would you recommend and why? (15 marks)
Answer:
ATCHULO Company Ltd
A) ATCHULO Company Ltd, as it is currently being operated should not be using an investment center as the appropriate organizational design when a profit center structure could have been applied. However, if it wants to continue the use of the investment center model as a preferred organizational structure, then it should implement the structure fully. For one, an investment center is a division in ATCHULO company that is supposed to be in control of all its investment activities (assets), and is responsible for generating profits (revenue and costs) for its sustenance. Its performance will then be evaluated based on the revenue it generates less the expenses, including the capital costs incurred for generating the revenue.
B) For a better operation of the investment center, revenues generated by the investment centers should be assigned to the investment centers and all their costs will be assigned as well. The investment centers should have their operational assets and make the necessary decisions regarding their use.
The hub should not be sorting packages for the investment centers as each investment center could handle the sorting at their various centers and route packages to appropriate destinations, accordingly. The investment centers should operate their own trucks or outsource such services at some costs. Since packages are sent from one center to the other and vice versa, they can charge for the services they provide for one another. In this way, each investment center's performance will be more accurately evaluated.
C) The investment center approach would have been the best for ATCHULO Company Ltd if it were being properly implemented, both in terms of operational activities and performance evaluation.
However, since ATCHULO Company has decided to change the model, I recommend the centers to be operated as profit centers, because this is the next best thing in terms of performance evaluation. However, each center must be able to make its own revenue and cost decisions, so that it can be assessed based on profit performance.
Explanation:
An investment center in ATCHULO Company should be a unit of the firm that is responsible for its revenue, cost, and investment decisions, with its performance judged based on the overall outcome achieved or the value added to the company.
A profit center in ATCHULO Company is a unit that is only responsible for its revenue and cost decisions, while investment activities are handled from the headquarters. Its performance is evaluated on profits without consideration of the capital costs incurred in generating the profits.
Do you think the Business practices in an Islamic country are likely differ from Business practices in the United States? If so, how?
Explanation:
Yes, the business practices of an Islamic country certainly differ from the business practices of the United States, starting with the significant cultural differences between those countries, including differences in the rules of etiquette, employee benefits, communication, the presence of women in the workplace, etc.
There is also strict government control in companies in Islamic countries, which obliges them to follow certain religious laws and regulations, which prevents them from managing an organization more aggressively with regard to paying interest and establishing a culture geared towards receiving "fair" profits, while business in the United States survives without obligation to comply with religious laws or impede profit.
On December 2, 2018, Eshares, Inc. purchases land. In payment for the land, Eshares, Inc. issues 6 comma 000shares of common stock with $ 10par value. The land has been appraised at a market value of $ 480 comma 000.Which of the following is included in the journal entry to record this transaction?
a. debit Cash $500,000
b. credit Common Stock-$10.00 Par Value for $100.000 and credit Paid-In Capital in Excess of Par-Common $400000
c. $1000 Par Value for S100 000 and debit Paid-In Capital in Excess of Par debit omm on Stock -Common $400,000
d. credit Common Stock--$10 00 Par Value for $500,000 Click to select your answer
Answer:
Credit Common Stock $ 10 Par Value for $ 60,000 and Credit Paid-In Capital in Excess of Par-Common $ 420, 000
Explanation:
Since we were told that On December 2, 2018, Eshares, Inc. purchases a land in which Eshares issues 6 ,000 shares of common stock with $ 10par value and the land was appraised at a market value of $ 480,000 this means the Journal entry will be recorded as:
Credit Common Stock $ 10 Par Value for $ 60,000
Credit Paid-In Capital in Excess of Par-Common $ 420, 000
Calculated as:
Common stock = 6,000 shares x $10 = $60,000
Paid-in Excess of par = $480,000 - $60,000
= $420,000
You need to make 70
servings of Caesar dressing,
Each serving takes 2
teaspoons of crushed garlic,
How many teaspoons of
crushed garlic do you need?
Answer:
Answer:
140 teaspoons of crushed garlic.
Explanation:
Since you're going to make 70 servings and each requires 2 tsp of crushed garlic, we simply multiply 70 x 2.
I hope this helps :)
The effective management of diversity can enhance the social responsibility goals of an organization. Other areas where sound management of diverse workforces can improve the effectiveness of an organization and its competitive advantages include all but one of the following?
a. Problem creation
b. Organizational flexibility
c. Marketing
d. Resource acquisition
Answer:
The correct answer is the option A: Problem creation.
Explanation:
To begin with, when it comes to diversity in the organization the right management of it can ensure the fact of increase the development and growth of the company in its whole, and moreover when it comes to areas that are really needed of diversity of thoughts and cultures in general. Therefore that the marketing area, the resource acquisiton and organization flexibility are the areas that obviously would be benefit by the increase of the diversity of the workforce so that the effectiveness of the organization as a whole will be increase as well too.
Tate Company purchased equipment on November 1, 2015 and gave a 3-month, 9% note with a face value of $20,000. The December 31, 2015 adjusting entry is
Answer:
Dr Interest expense 300
Cr Interest payable 300
Explanation:
Preparation of December 31, 2015 adjusting entry for Tate Company
Since Tate Company had purchased the equipment on November 1, 2015 in which the company gave a 3-month with 9% note and a face value of $20,000, this means we have to record the transaction by Debiting Interest expense with 300 and Crediting Interest payable with the same amount . The amount of 300 is calculated as 2/12×9%×20,000
Therefore Tmthe December 31, 2015 adjusting entry will be :
Dr Interest expense 300
Cr Interest payable 300
The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of a digital video monitor.
a. Purchased $168,500 of materials.
b. Used $149,250 of direct materials in production.
c. Incurred $360,000 of direct labor wages.
d. Incurred $120,000 of factory overhead.
e. Transferred $600,000 of work in process to finished goods.
f. Sold goods for $875,000.
g. Sold goods with a cost of $525,000.
h. Incurred $125,000 of selling expenses.
i. Incurred $80,000 of administrative expenses.
Using the information given, complete the following:
a. Prepare the January income statement for the Digital Vibe Manufacturing Company.
b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.
Answer:
1. Income Statement for Digital Vibe Manufacturing company
For the Month ended January 31
Sales 875,000
Cost of goods sold 525,000
Gross Profit 350,000
Operating Expenses:
Selling expenses 125,000
Administrative expenses 80,000
Total Operating expenses 205,000
Net Income $145,000
B.
1. Ending material inventory = Material purchased - Used material in production
= 168,500 - 149,250
= $19,250
2. Ending work in Process inventory = Material used in production + Direct labor + Factory overhead - Transferred of work in process to finished goods
= 149,250 + 360,000 + 120,000 - 600,000
=$29,250
3. Ending finished goods inventory = Transfer from work in progress - Cost of goods sold
= 600,000 - 525,000
= $75,000
29) If the rate of interest (r) is 9%, then you should be indifferent about receiving $750 in one year or $________ today A) $688.07 today B) $750 today C) $825.68 today D) None of the above
Answer:
$688.07
Explanation:
To find the answer, we can use the Future Value of an Investment formula:
FV = PV(1 + i)^n
Where:
FV = Future value
PV = Present value
i = interest rate
n = number of compounding periods.
Now, we replace the amounts into the formula to find the value of that the $750 had a year ago.
$750 = PV(1 + 0.09)^1
$750 = PV(1.09)
$750 / 1.09 = PV
$750 / 1.09 = $688.07
We can see that $750 is the value that $688.07 will have in one year, under a 9% interest rate. For that reason, the correct answer is A).
Knowledge Check 01 On February 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man, who pays in cash. The sale is subject to a 9.75 percent sales tax. Prepare the revenue portion of the February 13 journal entry for the jewelry store by selecting the account names and dollar amounts from the drop-down menus.
Answer:
Date Account Title Debit Credit
Feb 13 Cash $10,975
Sales $10,000
Sales Tax Payable $975
(10000 * 9.75%)
g "7. Explain how a company could: (a) avoid a backlog of orders when sales exceed expectations; (b) avoid product defects on new products; (c) offer more credit to its customers when it already has a bad debt problem; (d) improve its credit rating with suppliers after paying some late; (e) lower its cost of financing when the market interest rate has increased."
Answer and Explanation:
a. Outsource the lesser portion of the order furnishings to third parties. Likewise, the company can improve its productivity while ensuring that the core knowledge of the business is not shared.
b. Implement strict quality assurance system to ensure that goods are of the highest quality. In order to initially acquire market share it is essential to maintain quality for new products.
c. By requesting collateral or non-funded guarantees such as "Credit Letter," "Bank Guarantee," "Corporate Guarantee," etc. That would provide additional cushion to mitigate the risk of counter parties.
d. By offering over collateralize or facilities dependent on non-funding as described above. The method works in both directions.
e. By improving the company's capital structure, either by lowering its debt obligation or by infusing more promoter capital.
Better cash accrual through increased productivity will also provide support for the forthcoming cash flow that would favorably impact the liquidity risk. Risk reduction thus gives way to lower borrowing costs irrespective of the rise in market interest rates.
As settlement of a 100,000 death benefit, a beneficiary elected to take an annuity-immediate payable monthly for 25 years. The monthly payment was calculated using an effective annual interest rate of 3 percent. After making payments for 10 years, the insurance company decided to increase the monthly payments for the remaining 15 years by changing the effective annual interest rate to 5 percent. Calculate the increase in the monthly payment.
Answer:
Increase in monthly payment = 66
Explanation:
Given:
Amount = 100,000
Time, n = 25 years
Rate of 3% was used for the first 10 years.
Rate of 5% was used for the remaining 15 years.
Required:
Calculate the increase in the monthly payment.
To find the increase we are to subtract the original monthly payment from the new monthly payment.
First find the original monthly payment:
Original monthly payment [tex]= 100000* \frac{(1+0.03)^(^1^/^1^2^)-1)}{(1-1/(1+((1+0.03)^(^1^/^1^2^)-1))^(^1^2^*^2^5^))} = 472.108741438514[/tex]
Therefore, original monthly payment % 472.109
Now calculate the new monthly payment:
New monthly payment [tex]= 472.108741438514 / [((1+0.03)^(^1^/^1^2^)-1)* (1-1/(1+((1+0.03)^(^1^/^1^2^)-1)^(^1^2^*^1^5^))*((1+0.05)^(^1^/^1^2^)-1)/(1-1/(1+((1+0.05)^(^1^/^1^2^)-1))^(^1^2^*^1^5^))] = 538.1868715[/tex]
New monthly payment = 538.187
Increase in monthly payment = 538.187 - 472.109 = 66.078
Increase in monthly payment ≈ 66
Identify the best definition of money. whatever serves society in three functions: medium of exchange, store of value, and unit of account paper bills and coins metal or paper currency produced by governments to enable the exchange of goods and services the exchange of goods and services enabled via the double coincidence of wants
Answer:
Unit account of paper bills
Explanation:
I took test during school
The additional paid-in capital account represents profit to the corporation and, as such, it is credited to Retained Earnings.
A. True
B. False
Answer:
B. False
Explanation:
The retained earnings show distributions available out of profit to the company shareholders after all other obligations to third parties are satisfied.
Hence, additional paid-in capital account would not necessarily form part of Retained Earnings but is included as an increase in the equity account.
Henry Jones contributed equipment, inventory, and $53,300 cash to a partnership. The equipment had a book value of $25,500 and market value of $32,900. The inventory had a book value of $51,900 but only had a market value of $16,000 due to obsolescence. The partnership also assumed a $14,500 note payable owed by Henry that was originally used to purchase the equipment.
What amount should Henry's capital account be recorded?
a. $69,000
b. $104,000
c. $84,000
d. $89,000
Answer:
$94,000
Explanation:
Henry Jones contributed a cash of $53,300 to the partnership
The equipment had a book value of $25,500 and a market value of $32,900
The inventory had a book value of $51,900 and a market value of $16,000
The partnership assumed a note payable of $14,500 that was owed by Henry
Therefore, the amount that should be recorded in Henry's capital can be calculated as follows
= $53,300+$39,200+$16,000-$14,500
= $108,500-$14,500
= $94,000
Hence $94,000 should be recorded in Henry's capital account
A hospital purchased new MRI equipment and intended to be used for 4 years. The information is given below. As part of the warranty agreement, the maintenance costs will be waived for the first 4 years. At MARR of 29% per year, determine the minimum revenue per year to realize the expected recovery and return.
Answer:
the information is missing but I looked for a similar question that can help as an example (hopefully it will be the same):
purchase cost $750,000
useful life 4 years, salvage value $150,000
discount rate 29%
in order to answer this question, we would need to calculate a cash flow that results in NPV = 0
0 = -$750,000 + CF/1.29 + CF/1.29² + CF/1.29³ + (CF + $150,000)/1.29⁴
$750,000 = CF/1.29 + CF/1.29² + CF/1.29³ + (CF + $150,000)/1.29⁴
$750,000 = 0.7752CF + 0.6009CF + 0.4658CF + 0.3611CF + $54,166.70
$695,833.30 = 2.203CF
CF = $695,833.30 / 2.203 = $315,857.15
Trak Corporation incurred the following costs while manufacturing its bicycles.
Bicycle components $100,000 Advertising expense $45,000
Depreciation on plant 60,000 Property taxes on plant 14,000
Property taxes on store 7,500 Delivery expense 21,000
Labor costs of assembly-
line workers 110,000 Sales commissions 35,000
Factory supplies used 13,000 Salaries paid to sales clerks 50,000
Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.
Bicycle components
Depreciation on plant
Property taxes on store
Labor costs of assembly-line workers
Factory supplies used
Advertising expense
Property taxes on plant
Delivery expense
Sales commissions
Salaries paid to sales clerks
Answer:
Required: Identify the costs as direct materials, direct labor, manufacturing overhead, or period costs.
They are classified below:
Bicycle components: DIRECT MATERIALS
Depreciation on plant: MANUFACTURING OVERHEAD
Property taxes on store: PERIOD COST
Labor costs of assembly-line workers: DIRECT LABOUR
Factory supplies used: MANUFACTURING OVERHEAD
Advertising expense: PERIOD COST
Property taxes on plant: MANUFACTURING OVERHEAD
Delivery expense: PERIOD COST
Sales commissions: PERIOD COST
Salaries paid to sales clerks: MANUFACTURING OVERHEAD
Definition of terms used:
Period cost is any cost incurred which was not directly involved during production.
Manufacturing overhead can be said to be indirect costs incurred during production.
Direct labour costs involves payment made to workers involved in production.
Direct materials cost are costs of raw materials used in production.
Therefore,
Bicycle components are classified as direct materials.
Depreciation on plant are classified as manufacturing overhead.
Property taxes on store are classified as period cost.
Labor costs of assembly-line workers are classified as direct labour.
Factory supplies used are classified as manufacturing overhead.
Advertising expense is classified as period cost
Property taxes on plant are classified as manufacturing overhead.
Delivery expenseis classified as period cost.
Sales commissions is classified as period cost.
The marginal-cost curve intersects the average-total-cost curve at the output level where average fixed costs are zero.
1. True
2. False
Answer:
False
Explanation:
The marginal cost curve intersects across total curve at the options level where average costs are zeo
Work
A broker is a person or organization that uses its website to market a different company’s products, usually via online ads, and is paid a commission for each product sold.
a. True
b. False
Answer:
a. True
Explanation:
The broker is a person or a company that works is to sell the company products and charged a commission for each product sold. It worked like an intermediator between the company and the client
Therefore in the given case since the broker or firm used its website so that they offer different products of the company or different company products in orders to increased the sale of the company
Hence, the given statement is true
Suppose there is an ordinary deductible of $40 and the maximum payment by the insurer is $130. Determine the standard deviation of annual losses incurred by the automobile owner before the insurance reimbursement.
An automobile owner has 40% chance of having exactly one accident in a year and 60% chance of having no accidents in a year. There is no chance that the automobile owner incurs more than one accident in a year.
If there is an accident, the loss amount has the following distribution:
Loss amount & Prob
30 0.3
60 0.15
100 0.45
180 0.1
Suppose there is an ordinary deductible of $40 and the maximum payment by the insurer is $130.
Determine the standard deviation of the payment made by the insurer to the automobile owner.
Answer:
The answer is 32.437
Explanation:
Let X be the loss and let Y be the payment by the insurer.
Hence, we have Y = o if x<= 40,
x-40 if 40 < x < 130
130 if x > = 170
Therefore, Var (y) = E (y^2) - [E(y)]^2
E(y) = 0.4[130 (0.1)+60 (0.45) +20 (0.15)] = 17.2
E(^2) = 0.4 [130^2(0.1) + 60^2(0.45) +20^2(0.15)] = 1348
Finally, Var(y) = 1348 -17.2^2 = 1052.16
Sqrt(1052.16) = 32.437
Therefore, the standard deviation of the payment made by the insurer to the automobile owner is 32.437
The absorption-cost approach is used by most companies for all of the following reasons except that:______a) absorption cost information is readily provided by a company’s cost accounting system.b) basing prices on only variable costs could encourage managers to set too low a price to boost sales.c) this approach is more consistent with cost-volume-profit analysis.d) absorption cost provides the most defensible bases for justifying prices to interested parties
Answer:
c) this approach is more consistent with cost-volume-profit analysis.
Explanation:
The absorption costs does not separate the fixed costs and variable cost for profit determination.
This hence, is not adequate for internal purposes of as it does not provide management accountants of the changes in fixed and variable costs that arise as a result of changes in levels of sales demand.
Thus this method is not consistent with cost-volume-profit analysis.
Local Co. has sales of $ 10.8 million and cost of sales of $ 5.7 million. Its selling, general and administrative expenses are $ 550,000 and its research and development is $ 1.2 million. It has annual depreciation charges of $ 1.2 million and a tax rate of 35 %.
a. What is Local's gross margin? (answer in %, Round to one decimal place.)b. What is Local's operating margin? (answer in %, Round to one decimal place.)c. What is Local's net profit margin? (answer in %, Round to two decimal places.)
Answer:
Gross profit Margin = 47.2%
Operating profit margin = 19.9%
Net Profit Margin = 12.93%
Explanation:
Requirement A: Gross profit margin
Gross Profit = Sales - Cost of sales
Gross Profit = 5.1m
Gross profit Margin = Gross profit/Sales x 100
Gross profit Margin = 5.1/10.8 x 100
Gross profit Margin = 47.2%
Requirement B: Operating profit margin
Operating profit margin = Operating Profit/ Sales x 100
Operating Profit = Gross Profit - selling,general and administrative expense -research and development - depriciation
Operating Profit = 5.1m - 0.55m - 1.2m - 1.2m
Operating Profit = 2.15m
Operating profit margin = 2.15m/10.8m x 100
Operating profit margin = 19.9%
Requirement C: Net profit Margin
Net Profit margin = Net profit / Sales x100
Net Profit = Operating profit - tax
Net Profit = 2.15m - (2.15m x 35%)
Net Profit = 2.15m - 0.7525m
Net Profit = 1.3975m
Net Profit Margin = 1.3975m/10.8m x 100
Net Profit Margin = 12.93%
Suppose on January 1 Andrew's Tavern prepaid rent of $ 16 comma 800 for the full year. At November 30, how much rent expense should be recorded for the period January 1 through November 30?
Answer:
The rent expense to be recorded on November 30 will be $15400.
Explanation:
The accrual principle in the accounting states that the revenues and expenses for a period should be matched and recorded in their respective periods. Following the principle, we should record the expenses in the period to which they belong. Thus, the rent that is paid in advance is an asset and it will be expensed out as it is consumed.
The rent of $16800 is paid for the period from January to December.
The rent to be recorded as rent expense on 30 November will be for 11 months from January to November.
Rent expense = 16800 * 11/12 = $15400
Feather Tissues Inc. decided to change the color of its tissue box from red to blue because blue was thought to be visually pleasing to consumers at the time of purchase. The change in color represents the ________ aspect of packaging.
Answer:
aesthetic
Explanation:
Based on the information provided within the question it can be said that the change in color represents the aesthetic aspect of packaging. An aesthetic aspect refers to making sure that the packaging has an overall pleasant, positive, beautiful, or artful appearance in order to evoke positive emotions on the viewer. Which in this scenario is exactly what Feather Tissues Inc. is trying to accomplish by changing the color from red to blue, in order to please/attract their customers and in term increase sales.
Assume that the risk-free rate is 4.5% and the required return on the market is 13%. What is the required rate of return on a stock with a beta of 2
Answer:
Required rate of return= 21.5 %
Explanation:
The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.
Under CAPM, Ke= Rf + β(Rm-Rf)
Rf-risk-free rate, β= Beta, Rm= Return on market.
Using this model,
Ke= 4.5% + 2(13-4.5%)
= 21.5 %
Required rate of return= 21.5 %
A post-closing trial balance will reflect balances, after closing entires have been posted to reset the temporary accounts as follows:
A) zero balances for balance sheet accounts.
B) Balances only showing in income statement accounts
C) Balances only showing for balance sheet accounts.
D) zero balances for all accounts.
Answer: C) Balances only showing for balance sheet accounts.
Explanation:
A Post-Closing Trial Balance is used to match debits with credits to ensure that they are equal. It will however contain no items from the Income statement because those were considered to be temporary accounts that are part of the calculation of Retained Earnings and have thus have been dissolved during the Closing process.
This Trial Balance will therefore only have Balance Sheet items listed in it.
If a customer does not give a broker his or her instructions, cost basis reporting on Form 1099-B for a stock holding where there have been multiple purchases at different times is done on a:
Answer:
FIFO basis.
Explanation:
If a customer does not give a broker his or her instructions, cost basis reporting on Form 1099-B for a stock holding where there have been multiple purchases at different times is done on a first in, first out (FIFO) basis.
According to the internal revenue service (IRS), a Form 1099-B is a tax form which is received by individuals from their brokers or barter exchange enumerating their proceeds (gains) and losses from transactions made for a given tax year. The transactions include sales of stocks, forward contracts, derivatives, bonds, commodities, options, debt instruments for cash through a broker or barter exchange. It is necessary to also state on the Form 1099-B whether the holding period is short-term or long-term.
If the customer didn't give a broker his or her instructions and there have been multiple purchases of the stock at different times, it is reported or done on a first in, first out (FIFO) basis because the earliest or oldest unit of stock purchased are also the first unit that are sold.
An investment project provides cash inflows of $615 per year for eight years. a. What is the project payback period if the initial cost is $1,750
Answer:
It will take 3 years and 66 days to pay for the initial investment.
Explanation:
Giving the following information:
Cash flows= $615 for 8 years
Initial investment= $1,750
The payback period is the time required to cover for the initial investment.
Year 1= 615 - 1,750= -1,135
Year 2= 615 - 1,135= -520
Year 3= 615 - 520= 95
Exactly:
(95/520)= 0.18*365= 66
It will take 3 years and 66 days to pay for the initial investment.
In the long run, when price is less than average total cost for all possible levels of production, a firm in a competitive market will choose to exit (or not enter) the market.
a. True
b. False
Answer:
a. True
Explanation:
A competitive market is a market in which there are many buyers and sellers. Also, sellers have similar goods and and they don't have the power to influence the market. This means that in a competitive market companies have to accept the price define by the market and if the price is less than average total cost for all possible levels of production, a firm in a competitive market will choose to exit (or not enter) the market as it doesn't have the possibility to do something to influence the price and it won't be able to make a profit. According to that, the statement is true.