Answer:
The Belmont principle of beneficence requires that both protecting individual subject against risk of harm and consideration of not only the benefits for the individual,but also the societal benefits that might be gained from the research.
A company has the following aging schedule of its accounts receivable with the estimated percent uncollectible:______.
Age Group Amount Receivable Estimated Percent Uncollectible
Not yet due $ 175,000 4 %
0-60 days past due $ 40,000 10 %
61-120 days past due $ 10,000 30 %
More than 120 days past due $ 5,000 60 %
Assuming the balance of Allowance for Uncollectible Accounts is $3,000 (credit) before adjustment, which of the following would be recorded in the year-end adjusting entry?
Answer: $14,000
Explanation:
Estimated Uncollectible = (4% * 175,000) + ( 10% * 40,000) + ( 30% * 10,000) + (60% * 5,000)
= 7,000 + 4,000 + 3,000 + 3,000
= $17,000
The credit balance on the Allowance account will be used to account for some of the uncollectibles. The remaining amount will be the year-end adjusting entry;
= 17,000 - 3,000
= $14,000
Consider each of the transactions below. All of the expenditures were made in cash.
a. The Edison Company spent $16,000 during the year for experimental purposes in connection with the development of a new product.
b. In April, the Marshall Company lost a patent infringement suit and paid the plaintiff $9,500.
c. In March, the Cleanway Laundromat bought equipment. Cleanway paid $10,000 down and signed a noninterest-bearing note requiring the payment of $20,000 in nine months. The cash price for this equipment was $27,000.
d. On June 1, the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $32,000.
e. The Mayer Company, plaintiff, paid $16,000 in legal fees in November, in connection with a successful infringement suit on its patent.
f. The Johnson Company traded its old equipment for new equipment. The new equipment has a fair value of $11,200. The old equipment had an original cost of $9,400 and a book value of $4,200 at the time of the trade. Johnson also paid cash of $8,800 as part of the trade. The exchange has commercial substance.
Required:
Prepare journal entries to record each of the above transactions.
Answer: See attachment
Explanation:
The journals entry shows the transactions that Edison Company has undertaken. The transactions are shows both the debit and credit balances.
The attachments for the question have been attached for further analysis.
Company XYZ closed at $ per share with a P/E ratio of . Answer the following questions. a. How much were earnings per share? b. Does the stock seem overpriced, underpriced, or about right given that the historical P/E ratio is 12-14?
Answer:
Hello your question is incomplete below is the complete question
Company XYZ closed at $53.02 per share with a P/E ratio of 14.02 .
Answer :
A) $3.79
B) underpriced
Explanation:
Given data:
Closing price ( price per share ) = $53.02
P/E ratio = 14.02
A ) How much earnings per share
Earnings per share = price per share / (P/E) ratio
= 53.02 / 14.02 = $3.79
B) To check if the stock is overpriced, underpriced or about right
i) At P/E ratio = 12
Earnings per share = 53.02 / 12 = $4.43
Earning yield = ( earning per share / market value ) * 100
= ( 4.43 / 53.02 ) * 100 = 8.33%
ii) At P/E ratio = 13
Earnings per share = 53.02 / 13 = $4.09
Earning Yield = ( earning per share / market value ) * 100
= (4.09 / 53.02 ) * 100 = 7.69%
iii) At P/E ratio = 14
Earnings per share = 53.02 / 14 = $ 3.8
Earnings yield = ( earning per share / market value ) * 100
= ( 3.8 / 53.02 ) * 100 = 7.14%
The average of the earning yield given P/E ratio is 12-14
= ( 8.33 + 7.69 + 7.14 ) % / 3 = 7.72%
while The earning yield given P/E ratio is 14.02
= ( earning per share / market value ) * 100
= ( 3.79 / 53.02 ) * 100 = 7.12%
Therefore the stock is underpriced
Midland Petroleum is holding a stockholders’ meeting next month. Ms. Ramsey is the president of the company and has the support of the existing board of directors. All 12 members of the board are up for reelection. Mr. Clark is a dissident stockholder. He controls proxies for 42,001 shares. Ms. Ramsey and her friends on the board control 52,001 shares. Other stockholders, whose loyalties are unknown, will be voting the remaining 24,998 shares. The company uses cumulative voting.
Required:
a. How many directors can Mr. Clark be sure of electing?
b. How many can Ms Rmasey be sure of electing
c. How many votes could clark have if he had all the uncommitted votes
d. Does that give him control?
e. If nine directors were to be elected, and Ms. Ramsey and her friends had 70,001 shares and Mr. Clark had 48,001 shares plus half the uncommitted votes, how many directors could Mr. Clark elect?
Answer:
Midland Petroleum
a. Mr. Clark can be sure of electing = 4 directors
b. Ms Ramsey can be sure of electing = 5 directors
c. If Mr. Clark had all the uncommitted votes, he can elect = 7 directors
d. With 7 directors, he has control.
e. Mr. Clark can elect (60,50/143,000 * 9) = 4 directors.
Explanation:
Board members = 12
Mr. Clark control = 42,001 shares or 35.295%
Ms. Ramsey control = 52,001 shares or 43.698%
Undecided shareholders = 24,998 shares or 21.01%
Total shareholding = 119,000 shares or 100%
Mr. Clark can elect = 35.295% of directors = 4
Ms. Ramsey can elect = 43.698% of directors = 5
Other shareholders can elect = 21.01% of directors = 3
New shareholding:
Ms. Ramsey and friends = 70,001 shares
Mr. Clark and half uncommitted votes = 60,500 (48,001 + 12,499)
Half of the other uncommitted votes = 12,499
Total votes = 143,000
Mr. Clark can elect (60,50/143,000 * 9) = 4 directors.
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $139,107.
Related Information:
Lease term 2 years (8 quarterly periods)
Quarterly rental payments $18,000 at the beginning of each period
Economic life of asset 2 years
Fair value of asset $139,107
Implicit interest rate 4% (Also lessee’s incremental borrowing rate)
Required:
Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2019. Edison’s fiscal year ends December 31.
Answer:
Amortization table
Opening liability Installments Interest Principal payment Closing liability
139,108 18000 1211 16788.92498 122,319
122,319 18000 1043 16956.81423 105,362
105,362 18000 873 17126.38238 88,235
88,235 18000 702 17297.6462 70,938
70,938 18000 529 17470.62266 53,467
53,467 18000 354 17645.32889 35,822
35,822 18000 178 17821.78218 18,000
18,000 18000 0 0 0
General store accounts were the easiest forms of credit
-true
-false
Answer:
false
Explanation:
Im just guessing
Bristo Corporation has sales of 1,750 units at $40 per unit. Variable expenses are 30% of the selling price. If total fixed expenses are $39,000, the degree of operating leverage is:
Answer:
1,750=$40=1,750×40=70-30÷100×39,000=58,3
Explanation:
is total cost of production can be fixed cost +variable cost
Answer:
degree of operating leverage= 4.9
Explanation:
To calculate the degree of operating leverage, we need to use the following formula:
degree of operating leverage= Total contribution margin / operating income
Total Contribution margin= 1,750*(40*0.7)= $49,000
Operating income= 49,000 - 39,000= $10,000
degree of operating leverage= 49,000/10,000
degree of operating leverage= 4.9
The nation of Textilia does not allow imports of clothing. In its equilibrium without trade, a T-shirt costs $24, and the equilibrium quantity is 4 million T-shirts. One day, after reading Adam Smith's The Wealth of Nations while on vacation, the president decides to open the Textilian market to international trade. The market price of a T-shirt falls to the world price of $16. The number of T-shirts consumed in Textilia rises to 8 million, while the number of T-shirts produced declines to 2 million.
a. Illustrate the situation just described in a graph. Your graph should show all the numbers.
b. Calculate the change in consumer surplus, producer surplus, and total surplus that results from opening up trade. (Hint: Recall that the area of a triangle is1/2×base×height
Answer:
a) attached graph
b) triangle S represents the change in supplier surplus = 1/2 x -2,000,000 shirts x $8 = -$8,000,000
triangle C represents the change in consumer surplus = 1/2 x 4,000,000 shirts x ($8) = $16,000,000
The following are a trial balance and several transactions that relate to Lewisville's Concert Hall Bond Fund:
Lewisville Debt Service Fund Concert Hall Bond Fund Trial Balance July 1, 2012
Cash $60,000
Investments 40,000
Restricted fund balance $100,000
$100,000 $100,000
The following transactions took place between July 1, 2012, and June 30, 2013:
1. The city council of Lewisville adopted the budget for the Concert Hall Bond Fund for the fiscal year. The estimated revenues totaled $100,000, the estimated other financing sources totaled $50,000, and the appropriations totaled $125,000.
2. The General Fund transferred $50,000 to the fund.
3. To provide additional resources to service the bond issue, a property tax was levied upon the citizens. The total levy was $100,000, of which $95,000 was expected to be collected.
4. Property taxes of $60,000 were collected.
5. Revenue received in cash from the investments totaled $1,000.
6. Property taxes of $30,000 were collected.
7. The fund liability of $37,500 for interest was recorded, and that amount of cash was transferred to the fiscal agent.
8. A fee of $500 was paid to the fiscal agent.
9. Investment revenue totaling $1,000 was received in cash.
10. The fund liabilities for interest in the amount of $37,500 and principal in the amount of $50,000 were recorded, and cash for the total amount was transferred to the fiscal agent.
11. Investment revenue of S500 was accrued. Use the preceding information to do the following:
a. Prepare all the journal entries necessary to record the preceding transactions for the Concert Hall Bond Fund.
b. Prepare a trial balance for the Concert Hall Bond Fund as of June 30, 2013.
c. Prepare a statement of revenues, expenditures, and changes in fund balance and a balance sheet for the Concert Hall Bond Fund (assume all fund balance is restricted).
d. Prepare closing entries for the Concert Hall Bond Fund
Answer:
a. Journal entries
1. Estimated revenues (Dr.) $100,000
Estimated other financing sources (Dr.) $50,000
Appropriations (Cr.) $125,000
Fund Balance Budget (Cr.) $25,000
2. Cash (Dr.) $50,000
General Fund Transfer (Cr.) $50,000
3. Property Tax receivable (Dr.) $100,000
Uncollectable Taxes (Cr.) $5,000
Collectable Property taxes revenue (Cr.) $95,000
4. Cash (Dr.) $60,000
Collectable property tax revenue (Cr.) $60,000
5. Cash (Dr.) $1,000
Revenue From Investments (Cr.) $1,000
6. Cash (Dr.) $30,000
Collectable property tax revenue (Cr.) $30,000
7. Interest expense (Dr.) $37,500
Interest Payable (Cr.) $37,500
8. Fiscal Agent fee (Dr.) $500
Cash (Cr.) $500
9. Cash (Dr.) $1,000
Investment Revenue (Cr.) $1,000
10. Interest Expense (Dr.) $37,500
Principal payment (Dr.) $50,000
[Fiscal Agent] Cash (Cr.) $87,500
11. Investment Revenue Receivable (Dr.) $500
Investment Revenue (Cr.) $500
Explanation:
b. Trial Balance
Particulars : Debit (Dr.) $ ; Credit (Cr.) $
Cash: 76,500 ; 0
Property Taxes receivable 10,000 ; 0
Allowance for uncollectable property 0 ; 5,000
Investments 40,000 ; 0
Investment revenue receivable 500 ; 0
Restricted fund balance 0 ; 100,000
Revenue - property taxes 0 ; 95,000
Revenue- Investments 0 ; 2,500
Transfer to general fund 0 ; 50,000
Interest Expense 75,000 ; 0
Bond principal 50,000 ; 0
Fiscal agent fees 500 ; 0
Estimated revenues 100,000 ; 0
Estimated other financing sources 50,000 ; 0
Appropriations 0 ; 125,000
Fund balance Budget 0 ; 25,000
You are in the business of producing and selling snow shovels, and you need to determine how many shovels should be produced during each of the next four quarters to meet the following demands: 11,000 shovels in quarter 1; 48,000 shovels in quarter 2; 64,000 shovels in quarter 3; and 15,000 shovels in quarter 4.
Due to labor limitations, at most 65,000 shovels can be produced in any one quarter at a cost of $5/shovel. Additionally, a fixed cost of $30,000 must be paid for any quarter in which shovels are produced. You may assume that any shovels produced during a quarter can be used to satisfy demand for that quarter. At the end of the quarter, a holding cost of $0.50 per shovel in inventory is incurred. Currently, you have no shovels in inventory.
Required:
Formulate an integer-linear program to determine a production schedule that minimizes the sum of production and inventory costs over the next four quarters.
Answer:
Quarter Production
Q1 11000
Q2 62000
Q3 65000
Q4 0
This will generate lower production and inventory cost as it savesthe fixed cost of 30,000 if we produce in the fourth quarter.
Explanation:
First, we construct the formula for the relevant cost:
Holding Cost: $0.50 per shovel
$0.50 x 2 x (Q2-48,000) + $0.50 x (Q1-11,000) = Holding Cost Q2
$0.50 x 1 x (Q3-64,000) = Holding Cost Q3
First, the restrictions:
P1 P2 P3 P4 are Integer
P1 < 65,000
P2 < 65,000
P3 < 65,000
P4 < 65,000
Then, we have the inventory formulas:
I1 = P1 - S1
I2 = P2 + I1 -S2
I3 = P3 + I2 - S3
I4 = P4 + I3 - S4
The holding cost
H1 = I1 x 0.50
H2 = I2 x 0.50
H3 = I3 x 0.50
H4 = I4 x 0.50
The fixed cost
if P1> 0 then FC1 = 30,000
if P2> 0 then FC2 = 30,000
if P3> 0 then FC3 = 30,000
if P4> 0 then FC4 = 30,000
And last,the total cost:
FC1 + H1 +FC2 + H2 +FC3 + H3 +FC4 + H4 = Total Cost
This is the formula we want to minimize
We place this into excel solver and get the answer:
What type of competition stems from new products, new processes, new markets, and new forms of business organization
Answer: Creative destruction
Explanation:
Creative destruction, just like the name suggest is used to refer to the creation of new products and processes. Or an innovative mechanism by which new production units are produced. this are used to replace outdated or obsolete ones. This usually results in the production of new products, process, and markets.
a stock will pay dividend of $4 at the end of the year. it sells today for $104 and it its dividends are expected grow at a rate of 9%. what is the implied rate of return on this stock
Answer:
the implied rate of return on the stock is 14.80%
Explanation:
The computation of the implied rate of return is shown below:
The Rate of return is
= (Dividend at year 1 ÷ share price) + growth rate
= ( $6 ÷ 104) + 0.09
= 0.058 + 0.09
= 14.80%
We simply applied the above formula
And, the same is to be considered
hence, the implied rate of return on the stock is 14.80%
To increase a company’s performance, a manager suggests that the company needs to increase the value of its product to customers. Describe three ways in which this advice might be incorrect
Answer and Explanation:
The explanation of the advice that represents three ways which can be considered as an incorrect is as follows
1. If the amount is rises than it cannot change the commodities or goods cost
2. In case when the customer is ready for paying than in this case the value of the amount rises
3. Also when the amount of the customer rises so the performance would remains constant without considering the rise in the profit.
3. Identify TWO possible suitable sources of external finance Chris could consider, if the local bank
manager refuses to give him a loan for purchasing a new van for his business. (10 marks)
Please help
Answer:
Hire Purchase
Loans from friends
Explanation:
Hire purchase
A hire purchase (HP) , is also called an installment plan, it is is an financing contract whereby a customer agrees to acquire an asset by paying an initial deposit and repays the balance of the price plus interest on installment bases over a period of time .
Loans from friends
These are loans received from friends which are mostly interest free
The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2021 ($ in 000s): sales revenue, $22,600; cost of goods sold, $14,650; selling expense, $2,330; general and administrative expense, $1,230; dividend revenue from investments, $230; interest expense, $330. Income taxes have not yet been accrued. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in 000s). All transactions are material in amount.
1. Investments were sold during the year at a loss of $300. Foxworthy also had unrealized losses of $200 for the year on investments.
2. One of the company’s factories was closed during the year. Restructuring costs incurred were $2,000.
3. During the year, Foxworthy completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $800 in 2016 prior to the sale, and its assets were sold at a
loss of $1,800.
4. Foreign currency translation gains for the year totaled $600.
Required:
Prepare Foxworthy's single, continuous statement of comprehensive income for 2021, including basic earnings per share disclosures. Two million shares of common stock were outstanding throughout the year.
Question attached
Answer and Explanation:
Please find attached
Mathias Corporation manufactures and sells wire rakes. The rakes sell for $20 each. Information about the company's costs is as follows.
Variable manufacturing cost per unit $6
Variable selling and administrative cost per unit 2
Fixed manufacturing overhead per month $300,000
Fixed selling and administrative cost per month 600,000
Required:
a. Determine the company's monthly break-even point in units.
b. Determine the sales volume (in dollars) required for a monthly operating income of $1,200,000.
c. Compute the company’s margin of safety if its current monthly sales level is $2,500,000.
d. Estimate the amount by which monthly operating income will increase if the company anticipates a $100,000 increase in monthly sales volume.
Answer:
a. 75,000 units
b. $1,700,000
c. 0.40 or 40 %
d. $60,000
Explanation:
Break-even point is the level of activity where a firm neither makes a profit nor a loss.
Break-even point (units) = Fixed Costs ÷ Contribution per unit
Where,
Contribution per unit = Unit Selling Price less Variable Costs per unit
= $20 - $6 - $2
= $12.00
Therefore,
Break-even point (units) = ($300,000 + $600,000) ÷ $12.00
= 75,000 units
Sales (dollars) to reach target profit = (Fixed Costs + Target Profit) ÷ Contribution Margin Ratio
Where,
Contribution Margin Ratio = Contribution ÷ Sales
= $12.00 ÷ $20.00
= 0.60
Therefore,
Sales (dollars) to reach target profit = ($300,000 + $600,000 + 1,200,000) ÷ 0.60
= $1,700,000
Margin of Safety = (Sales level - Break-even Sales level) ÷ Sales level
= ($2,500,000 - $1,500,000) ÷ $2,500,000
= 0.40 or 40 %
Calculation of Incremental Monthly Operating Income
Incremental Sales $100,000
Less Incremental Variable Costs (5,000 × $8) ($40.000)
Incremental Contribution $60,000
Less Incremental Fixed Costs $0
Incremental Operating Income $60,000
Nanjones Company manufactures a line of products distributed nationally through wholesalers. Presented below are planned manufacturing data for the year and actual data for November of the current year. The company applies overhead based on planned machine hours using a predetermined annual rate.
Planning Data
Annual November
Fixed overhead $1,200,000 $100,000
Variable overhead $2,400,000 $220,000
Direct labor hours 48,000 4,000
Machine hours 240,000 22,000
Data for November
Direct labor hours (actual) 4,200
Direct labor hours (plan based on output) 4,000
Machine hours (actual) 21,600
Machine hours (plan based on output) 21,000
Fixed overhead $101,200
Variable overhead $214,000
Nanjones’ variable overhead spending variance for November was:
a. $6,000 favorable.
b. $2,000 favorable.
c. $14,000 unfavorable.
d. $6,000 unfavorable.
Answer:
Variable manufacturing overhead spending variance= $2,000 favorable
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,400,000 / 240,000
Predetermined manufacturing overhead rate= $10 per machine hour
To calculate the variable overhead spending variance, we need to use the following formula:
Variable manufacturing overhead spending variance= (standard rate - actual rate)* actual quantity
Variable manufacturing overhead spending variance= (15 - 214,000/21,600)*21,600
Variable manufacturing overhead spending variance= $2,000 favorable
The Nanjones' variable overhead spending variance for November is a. $6,000 favorable.
Data and Calculations:
Planning Data Actual Data Variances
Annual November November
Fixed overhead $1,200,000 $100,000 $101,200 $1,200 U
Variable overhead $2,400,000 $220,000 $214,000 $6,000 F
Direct labor hours 48,000 4,000 4,200 200 U
Machine hours 240,000 22,000 21,600 400 F
Thus, the Nanjones' variable overhead spending variance for November is the difference between planned expenses and actual expenses, which is $6,000 ($214,000 - $220,000) favorable.
Learn more about variable overhead spending variance here: https://brainly.com/question/4535958
Mark M. Upp has just been fired as the university book store manager for setting prices too low (only 20% above suggested retail). He is considering opening a competing bookstore near the campus, and he has begun an analysis of the situation. There are two possible sites under consideration. One is relatively small, while the other is large. If he opens at Site 1 and demand is good, he will generate a profit of $50,000. If demand is low, he will lose $10,000. If he opens at Site 2 and demand is high he will generate a profit of $80,000, but he will lose $30,000 if demand is low. He also has decided that he will open at one of these sites. He believes that there is a 50% chance that demand will be high. He assigns the following utilities to the different profits:
U = 50,000 = ? U(-10,000) = 0.22
U = 80,000 = 1 U(-30,000) = 0
For what value of utility for $50,000, U(50000), will Mark be indifferent between the two alternatives?
Answer:
The utility of Mark for getting a 50,000 profit should be of 0.78 to make both Site option indifferent.
Explanation:
To be indifferent between the two sites the utility of Site 1 should match the utility of Site 2
Site 2:
weighted Utility of good demand +
weighted Utility of low demand:
50% x 1 + 50% 0 = 0.5
Site 1
50% of Ux + 50% 0.22
This shold match 0.50 to be indifferent
0.5Ux + 0.11 = 0.50
Ux = (0.50 - 0.11) / 0.5 = 0.39/0.50 = 0.78
Eastern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018.
Other information:
Lease term 5 years
Annual payments $79,000 on January 1 each year
Life of asset 5 years
Implicit interest rate 7%
PV, annuity due, 5 periods, 7% 4.3872
PV, ordinary annuity, 5 periods, 7% 4,1002
Hi-Tech's cost of the equipment $346,589 There is no expected residual value.
Required:
Prepare appropriate journal entries for Hi-Tech Leasing for 2018 and 2019. Assume a December 31 year-end.
Answer:
January 1, 2018
Dr Lease receivable 395,000
Cr Unearned interest revenue 48,411
Cr Equipment inventory 346,589
Dr Cash 79,000
Cr Lease receivable 79,000
December 31, 2018
Dr Unearned interest revenue 18,731
Cr Interest revenue 18,731
January 2019
Dr cash 79,000
Cr lease receivable 79,000
December 31 2019
Dr Unearned interest revenue 14,512
Cr Interest revenue 14,512
Explanation:
Preparation of Journal entries for Hi-Tech Leasing for 2018 and 2019.
January 1, 2018
Dr Lease receivable 395,000
($79,000 x 5)
Cr Unearned interest revenue 48,411
(395,000-346,589)
Cr Equipment inventory 346,589
Dr Cash 79,000
Cr Lease receivable 79,000
December 31, 2018
Dr Unearned interest revenue 18,731
[($346,589- $79,000) x 7%]
Cr Interest revenue 18,731
January 2019
Dr cash 79,000
Cr lease receivable 79,000
December 31 2019
Dr Unearned interest revenue 14,512
[($346,589- $79,000-$60,269) x 7%]
(79,000-18,731=60,269)
Cr Interest revenue 14,512
Suppose that France and Austria both produce rye and wine. France's opportunity cost of producing a bottle of wine is 4 bushels of rye while Austria's opportunity cost of producing a bottle of wine is 10 bushels of rye. By comparing the opportunity cost of producing wine in the two countries, you can tell that __________ has a comparative advantage in the production of wine and __________has a comparative advantage in the production of rye.
Suppose that France and Austria consider trading wine and rye with each other. France can gain from specialization and trade as long as it receives more than __________of rye for each bottle of wine it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than __________of wine for each bushel of rye it exports to France.
Based on your answer to the last question, which of the following prices of trade (that is, price of wine in terms of rye) would allow both Austria and France to gain from trade?
a. 7 bushels of rye per bottle of wine
b. 4 bushels of rye per bottle of wine
c. 1 bushel of rye per bottle of wine
d. 11 bushels of rye per bottle of wine
Answer:
France has comparative advantage in production of wine
Austria has comparative advantage in production of rye.
4 bushels of rye for each bottle of wine
1 bottle of wine for each bushel.
b. 4 bushel of rye per bottle of wine.
Explanation:
France has comparative advantage in producing wine as it has opportunity cost of 4 bushels per bottle of wine. Austria has comparative advantage in producing bushels as it has opportunity cost of 10 bushels per bottle of wine. The both countries can gain advantage if they agree for 4 bushels per wine.
berkshire hathaway a corporation, owns Goldman Sachs preferred stock with a 12 dividend yield. What is Berthshire Hathaway's after-tax dividend yield on this preferred stock if their marginal tax rate is
Answer: 11.2%
Explanation:
Here is the completed question:
berkshire hathaway a corporation, owns Goldman Sachs preferred stock with a 12 dividend yield. What is Berthshire Hathaway's after-tax dividend yield on this preferred stock if their marginal tax rate is 21%?
The dividend yield that's not subject to tax will be:
= 12% × 70%
= 0.12 × 0.7
= 0.084
The dividend yield that's subject to tax will be:
= 12% × 30% × (1 - 21%)
= 0.12 × 0.3 × 0.79
= 0.02844
Berthshire Hathaway's after-tax dividend yield will now be:
= 0.084 - 0.02844
= 0.11244
= 11.2%
Statz Company had sales of $1,900,000 and related cost of goods sold of $1,100,000 for its first year of operations ending December 31, 20Y1. Statz provides customers a refund for any returned or damaged merchandise. At the end of 20Y1, Statz Company estimates that customers will request refunds for 1.7% of sales and estimates that merchandise costing $12,000 will be returned. Assume that on February 3, 20Y2, Buck Co. returned merchandise with an invoice amount of $5,300 for a cash refund. The returned merchandise originally cost Statz Company $3,200.
Required:
a. Journalize the adjusting entries on December 31 to record the expected customer returns.
b. Journalize the entries to record the returned merchandise and cash refund to Buck Co. on February 3.
Answer:
pasensya na di ko alam ang sagot
31. Which one is not the barriers of Enterpreneurship:
(A) Lack of technical skills
(B) Political instability
(C) Technical knowledge
(D) Time pressure and distractions
Answer:
d
Explanation:
I think so, I'm not sure
Minion, Inc., has no debt outstanding and a total market value of $211,875. Earnings before interest and taxes, EBIT, are projected to be $14,300 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 35 percent lower. The company is considering a $33,900 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 7,500 shares outstanding. Assume the company has a tax rate of 21 percent.
Required:
a. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued.
b. Calculate the percentage changes in EPS when the economy expands or enters a recession.
c. Calculate earnings per share, EPS, under each of the three economic scenarios after the recapitalization.
d. Calculate the percentage changes in EPS when the economy expands or enters a recession assuming recapitalization has occurred.
Answer:
EPS and percentage change is calculated below
Explanation:
Earnings per share (EPS) is the monetary value of earnings per outstanding share of common stock for a company.
a.EPS
Recession Normal Expansion
EBIT 9,295 14,300 17,160
Less: Interest 0 0 0
Earnings before taxes 9,295 14,300 17,160
Less: Taxes (1,952) (3,003) (3,604 )
Net Income 7,343 11,297 13,556
Number of Shares 7,500 7,500 7,500
EPS 0.979073 1.506267 1.80752
b. Percentage change
Recession = (2.683-3.833)/3.833
Recession = -35.00%
Expansion 20.00%
c. EPS
Recession Normal Expansion
EBIT 9,295 14,300 17,160
Less: Interest (2034) (2034) (2034 )
Earnings before taxes 7,261 12,266 15,126
Less: Taxes (1,525) (2,576) (3,176 )
Net Income 5,736 9,690 11,950
Number of Shares 6,300 6,300 6,300
EPS 0.91 1.53 1.89
d. Percentage change
Recession = (2.683-3.833)/3.833
Recession = -40.80%
Expansion 23.32%
Value per share = 211875/7500 = $28.25
Number of shares bought back = 33900/28.25 = 1200 shares
20. The consumer price index was 120 in 2013 and 126 in 2014. The nominal interest rate during this period was 8 percent. What was the real interest rate during this period? A) 3 percent B) 2 percent C) 3.3 percent D) 5.2 percent E) 12.8 percent
Answer: 3%
Explanation:
To calculate the real interest rate, it should be noted that the inflation rate is needed and this can be calculated using the consumer price index as:
= [(126-120)/120] × 100
= 6/120 × 100
= 5%
Real interest rate will now be:
= Nominal Rate - Inflation Rate
= 8% - 5%
= 3%
CAM charges for retail leases in a shopping mall must be calculated. The retail mall consists of a total area of 2.8 million square feet, of which 800,000 square feet has been leased to anchor tenants that have agreed to pay $2 per rentable square foot in CAM charges. In-line tenants occupy 1.3 million square feet, and the remainder is a common area, which the landlord believeswill require $8 per square foot to maintain and operate each year. If the owner is to cover total CAM charges, how much will in-line tenants have to pay per square foot?
Answer:
$3.08 per square foot
Explanation:
Calculation for how much will in-line tenants have to pay per square foot
First step is to find the common area
Common area = 2,800,000−800,000−1,300,000 Common area= 700,000
Second step is to find Common area operating costs
Common area operating costs = 700,000×8
Common area operating costs= $5.6 million
Third step is to find the Operating costs charged to in-line tenants
Operating costs charged to in-line tenants = 5,600,000−800,000×2
Operating costs charged to in-line tenants = 4,000,000
Last step is to calculate the In-line CAM charges using this formula
In-line CAM charges=Operating costs charged to in-line tenants -In-line tenants square feet
Let plug in the formula
In-line CAM charges = 4,000,000 ÷ 1,300,000
In-line CAM charges= $3.08
Therefore the amount that in-line tenants have to pay per square foot will be $3.08 per square foot.
Lambert Company acquired machinery costing $110,000 on January 2, 2019. At that time, Lambert estimated that the useful life of the equipment was 6 years and that the residual value would be $15,000 at the end of its useful life. Compute depreciation expense for this asset for 2019, 2020, and 2021 using the:
Compute depreciation expense for this asset for 2016, 2017, and 2018 using the a. Straight-line method b. Double-declining balance method C. Assume that on January 2, 2018, Lambert revised its estimate of the useful life to 7 years and changed its estimate of the residual value to $ 10,000. What effect would this have on depreciation expense in 2018 for each of the above depreciation methods?
Answer:
The answer is below
Explanation:
(a) Under straight-line method,
We have depreciation expense to be (cost - residual value) ÷ No of years =
=> ($110,000 - $15,000) ÷ 6 years = $15,833 yearly depreciation expense.
Hence, the year depreciation expense of $15,833 is applicable to all the Years 2016, 2017 and 2018.
Therefore, sum of depreciation for all the three years is calculated as
=> $15,833 * 3 years = $47,499.
(b) Under the double-declining method
We have = 2 * SLDP * BV
Where SLDP = Straight - Line Depreciation Percentage
BV = Book value
Hence, SLDP is 100% ÷ 6 years = 16.67%,
Thus, 16.67% * 2 => 33.33%
Therefore, Year 2016, 33.33% * $110,000 = $36,663
For Year 2017, 33.33% * $73,337 ($110,000 - $36,663) = $24,443
For Year 2018, 33.33% * $48,894 ($73,337 - $24,443) = $16,296
Adding all the three Years together => 2016 to 2018, => $77,402
(c) Given that after 2 years, the revised estimated useful life becomes 7 years and the residual value is $10,000, depreciation would be calculated as follows:
Under the straight-line method,
NBV = Net Book Value, at the end of 2017 is: $110,000 - $15,833 * 2 years = $78,334
Depreciation expense is therefore: ($78,334 - $10,000) ÷ 7 years = $9,762 (decrease in 2018 yearly depreciation charge)
Also,
Under the double-declining method,
SLDP is 100% ÷ 7 years = 14.29%, * 2 => 28.57%.
For Year 2018,
28.57% * $48,894 ($73,337 - $24,443) = $13,969 (decrease in 2018 yearly depreciation charge)
Answer:
the question is incomplete, so I looked for a similar question:
the requirements are:
calculate depreciation expense using straight line, double depreciation, sum of the years' digits methods
straight line depreciation:
depreciable value = $110,000 - $15,000 = $95,000
depreciation expense per yer = $95,000 / 6 = $15,833.33
depreciation expense 2019 = $15,833depreciation expense 2020 = $15,833depreciation expense 2021 = $15,834double declining balance:
depreciation expense 2019 = $110,000 x 2/6 = $36,667depreciation expense 2020 = ($110,000 - $36,667) x 2/6 = $24,444depreciation expense 2021 = ($73,333 - $24,444) x 2/6 = $16,296sum of the years' digits method:
depreciable value = $110,000 - $15,000 = $95,000
sum of years = 6 + 5 + 4 + 3 + 2 + 1 = 21 years
depreciation expense 2019 = $110,000 x 6/21 = $31,429depreciation expense 2020 = $110,000 x 5/21 = $26,190depreciation expense 2021 = $110,000 x 4/21 = $20,952Suppose the classical linear model assumptions hold, and the population model for log(wage) is given by:
Answer:
Throughout the clarification segment down, the definition including its concern is explained.
Explanation:
The query presented seems to be incomplete. Please notice the full issue attachment below.
The classical model relies on either the calculation as well as assumption of "finite sample," suggesting that perhaps the amount of measurements "n" is defined.Present work does not affect salary seems to be:
⇒ H₀ : B₃ = 0
One side of the alterbate theory would be that ceteris paribus, duration at current employment seems to harm incomes.It is possible to state everything as:
⇒ H₁ : B₃<0
The current portion of long-term debt should
a. be paid immediately
b.not be separated from the long-term portion of debt
c. be reclassified as a current liability
d. be classified as a long-term liability
The current portion of long-term debt should be classified as a long-term liability. Thus, option (d) is correct.
What is debt?
The phrase “debt” refers to the money that one can borrow. Debt is the cash raised by issuing bonds or debentures.
A company's ability to pay off a long-term debt's current component within a year is represented by this number. So, a sum of this magnitude that is due in the next 12 months shouldn't be listed as a long-term liability.
Therefore, option (d) is correct.
Learn more about on debt, here:
https://brainly.com/question/17286021
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A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts:
Karaoke Machines CDs
Quantity Price(Dollars) Quantity Price (Dollars)
2020 20 50 60 5
2021 21 70 80 6
Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is_____________ . (Note: Use 2020 as the base year, and fix the basket at 2 karaoke machines and 6 CDs.) Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is_____________ . (Note: Again, use 2020 as the base year.) Which of the following statements is correct? Check all that apply.
a. The inflation rate in 2021 is not the same using the two methods.
b. The CPI allows the basket of goods and services to change.
c. The GDP deflator holds the basket of goods and services constant.
Answer:
The inflation rate is different using the two methods as the rate of inflation calculated by the CPI holds basket of goods and services constant while the GDP deflator allows it to change.
Explanation:
i. Value of market basket of the good in 2020 = ($50*2) + ($5*6) = $130
Value of market basket of the good in 2021 = ($70*2) + ($6*6) = $176
CPI in 2020 = ($130 / $130) * 100 = 100
CPI in 2021 = ($176 / $130) * 100 = 135.38
Thus, The percentage change in overall price level is = [(135.38 - 100) / 100) * 100 = 35.38%
ii. Nominal GDP in 2020 = ($50 * 20) + ($5 * 60) = $1300
Nominal GDP in 2021 = ($70 * 21) + ($6 * 80) = $1950
Real GDP in 2020 = ($50 * 20) + ($5 * 60) = $1300
Real GDP in 2021 = ($50 * 21) + ($5 * 80) = $1450
GDP deflator in 2020 = (Nominal GDP in 2107 / Nominal GDP in 2107) * 100 = ($1300 / $1300) * 100 = 100
GDP deflator in 2021 = (Nominal GDP in 2108 / Nominal GDP in 2108) * 100 = ($1950 / $1450) * 100 = 134.48
Thus, the percentage change in overall price level is = [(134.48 - 100) / 100) * 100 = 34.48%