The cost of equity is calculated using the discounted cash flow (DCF) approach, which takes into account the present value of expected future cash flows.
How is the cost of equity calculated using the discounted cash flow approach?In this case, we can use the dividend discount model (DDM) to estimate the cost of equity. The DDM formula is as follows:
\[ \text{Cost of Equity} = \frac{\text{Dividend at Time } t+1}{\text{Current Stock Price}} + \text{Growth Rate} \]
Given that Shelby's last dividend was $1.60, the dividend at the end of the current year will be $1.68, and the stock price is $24.50, we can substitute these values into the formula:
\[ \text{Cost of Equity} = \frac{1.68}{24.50} + 0.05 = 0.0686 + 0.05 = 0.1186 \]
Converting the decimal to a percentage, the cost of equity for Shelby Inc. is 11.86%.
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If you want to raise $3,000,000 and you are willing to give 75% of your company to investors, what is your pre-money valuation
The pre-money valuation would be $12,000,000.
If you want to raise $3,000,000 and you are willing to give 75% of your company to investors, your pre-money valuation would be $12,000,000
To calculate the pre-money valuation, you can divide the amount you want to raise ($3,000,000) by the percentage of the company you are willing to give to investors (75% or 0.75). Mathematically, it can be expressed as:
Pre-money valuation = Amount to raise / Percentage of company given to investors
= $3,000,000 / 0.75
= $12,000,000
Therefore, your pre-money valuation would be $12,000,000.
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The authors of the textbook noted regarding the financial support available for divorced women that:
The authors of the textbook noted regarding the financial support available for divorced women that the government's aid "content loaded" with moralistic messages that paint divorce as a moral and social evil, blaming women for their divorce, and presuming that a divorced woman has a male relative who can support her.
What the authors meant by "content loaded" is that the government's aid regarding financial support for divorced women is not only informational but also contains social and moral attitudes towards divorced women. The government's aid is not neutral in tone, as it conveys a sense of disapproval and blame for divorce and a woman's decision to leave her spouse
The authors argue that this bias in the government's aid system reflects a patriarchal ideology that prioritizes male financial support and control over women's autonomy and economic independence. Furthermore, this system places the burden of financial hardship and blame on divorced women, rather than addressing the systemic inequalities and social pressures that may contribute to the high rates of divorce in the first place.
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acme inc produces specialized instrument for specific use. the production rate is 7,482 units per day. annual demand for the instrument is 55,731 units per year. the setup cost the production run is $3,059, and the variable cost is $4.49 per unit. acme inc interest rate is 20.25% per year. assume that there are 269 working days per year. what is the optimal size of the production run for this specialized instrument?
The optimal size of the production run for the specialized instrument using the EOQ model is approximately 1189 units, considering factors such as annual demand, setup cost, variable cost per unit, and interest rate to minimize total production and inventory costs.
The optimal size of the production run for the specialized instrument can be determined using the Economic Order Quantity (EOQ) model. The EOQ formula takes into account the production rate, annual demand, setup cost, variable cost per unit, and the interest rate.
To calculate the EOQ, we can use the following formula:
EOQ = √((2 * annual demand * setup cost) / (variable cost per unit * interest rate))
Let's plug in the given values:
Annual demand = 55,731 units
Setup cost = $3,059
Variable cost per unit = $4.49
Interest rate = 20.25% (0.2025)
EOQ = √((2 * 55731 * 3059) / (4.49 * 0.2025))
Simplifying this equation, we find:
EOQ ≈ 1188.66 units
Therefore, the optimal size of the production run for this specialized instrument is approximately 1189 units.
The EOQ represents the order quantity that minimizes the total cost of production and inventory. It considers the trade-off between setup costs (incurred when starting production) and holding costs (incurred while inventory is held). By producing and ordering 1189 units at a time, Acme Inc can minimize the total cost of production and inventory for this instrument.
It's important to note that the EOQ assumes that demand is constant and known in advance. Additionally, other factors such as storage capacity and production capacity should also be considered in practice.
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5 Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die
If the five twin brothers starting a new business want to find the most affordable type of insurance while still providing a death benefit in the event that one of them dies, the type of insurance that would be the most suitable is term life insurance.
What is term life insurance?Term life insurance refers to a type of life insurance that provides coverage for a specific period of time. If the insured person passes away while the policy is still active, a death benefit is paid to the designated beneficiary. However, if the policy expires before the insured person dies, there is no payout.
A policy term can range from a few years to 30 years or more. Term life insurance policies have lower premiums compared to whole life insurance policies. Therefore, term life insurance is often the most affordable type of life insurance.
How much coverage will they need?To determine the coverage they will need, each brother's contribution to the business must be calculated and multiplied by 150. If each brother contributes $30,000 to the business, they will need a term life insurance policy with coverage of at least $4.5 million. 150 is used as a multiplier because it is believed that 150 times each brother's annual contribution will be enough to cover the future value of their contribution to the business.
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Please calculate a car payment assuming a cost of $30,000 with an interest rate of 6.5 percent for 60 months
The car payment for a $30,000 loan with an interest rate of 6.5% for 60 months would be approximately $579.98.
To calculate the car payment, you will need to use the formula for loan amortization. The formula is:
[tex]P = (r * A) / (1 - (1 + r)^{(-n)})[/tex]
Where:
P = car payment
A = loan amount (cost of the car)
r = monthly interest rate (annual interest rate divided by 12)
n = number of months
Given that the cost of the car is $30,000, the interest rate is 6.5%, and the loan term is 60 months, we can plug in the values into the formula.
First, convert the annual interest rate to a monthly rate: 6.5% / 100 / 12 = 0.00542.
Next, substitute the values into the formula:
[tex]P = (0.00542 * 30000) / (1 - (1 + 0.00542)^{(-60)})[/tex]
Using a calculator, the car payment (P) comes out to be approximately $579.98.
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Carlos is trying to determine how music affects the growth of bean plants. he hypothesizes that classical music will cause a plant to grow at a higher rate than no music or rap music. he grows nine bean plants in similar lighting, temperature, and soil conditions. three are exposed to classical music 24 hours a day, three are exposed to rap music 24 hours a day, and three are grown in complete silence. carlos measures the growth of the plants every day and finds that the plants all seem to have the same rate of growth. what is missing from carlos's scientific investigation?
In Carlos's scientific investigation, one important component is missing ia a control group. By including a control group, Carlos would have been able to make a more accurate and conclusive interpretation of his results.
In Carlos's scientific investigation, one important component is missing: a control group. A control group serves as a baseline for comparison in an experiment. It allows researchers to isolate and identify the effects of the independent variable (in this case, the type of music) on the dependent variable (plant growth).
To address this, Carlos should have included a group of bean plants that were not exposed to any music at all. This would have allowed him to compare the growth rate of the plants exposed to classical music, rap music, and silence, against the normal growth rate of bean plants.
Without a control group, Carlos cannot draw a valid conclusion regarding the effect of music on plant growth. The absence of a significant difference in growth rates among the three groups could be due to factors other than the type of music. By including a control group, Carlos would have been able to make a more accurate and conclusive interpretation of his results.
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the portfolio of a growth and income fund is likely to contain question content area bottom part 1 a. a high percentage of stocks in established companies and a small amount of fixed income securities.
A growth and income fund typically aims to provide a combination of capital appreciation (growth) and income generation. Yes it is correct .
To achieve this objective, the portfolio of a growth and income fund is likely to contain a high percentage of stocks in established companies and a smaller amount of fixed income securities.
The emphasis on stocks in established companies reflects the growth aspect of the fund's objective. These companies are generally well-established and have a track record of generating steady earnings and potentially increasing their stock value over time. Investing in such stocks provides the potential for capital appreciation.
On the other hand, the inclusion of a smaller amount of fixed income securities helps to generate income for the fund. Fixed income securities, such as bonds or preferred stocks, generally offer regular interest payments, which can contribute to the income component of the fund. While fixed income securities may have lower potential for capital appreciation compared to stocks, they provide a more stable income stream.
By combining stocks in established companies with fixed income securities, a growth and income fund aims to provide investors with a balanced portfolio that offers the potential for both capital growth and income generation.
This approach caters to investors who seek a combination of growth and regular income from their investment portfolio.
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The risk-free security is____.
A. riskless
B. a stock risky
C. a corporate bond
The risk-free security is a financial instrument that carries no risk of losing the principal investment. The correct option is A. riskless.
A risk-free security typically refers to a specific type of investment that guarantees the return of the original investment amount, along with a predetermined rate of return.
These investments are considered to be low-risk because they are backed by a reliable and creditworthy issuer, such as the government or a highly rated financial institution.
Some examples of risk-free securities include:
1. Treasury bonds:
These are debt securities issued by the government. They are backed by the full faith and credit of the government, making them virtually risk-free. Treasury bonds typically have a fixed interest rate and a maturity date, at which point the investor receives the full principal amount back.
2. Certificates of deposit (CDs):
These are time deposits offered by banks and credit unions. When you purchase a CD, you agree to keep your money with the financial institution for a specified period of time, known as the term. In return, you receive a fixed interest rate. CDs are insured by the Federal Deposit Insurance Corporation (FDIC), which adds an extra layer of security.
3. Money market funds:
These are mutual funds that invest in short-term debt securities, such as Treasury bills and commercial paper. Money market funds aim to maintain a stable net asset value (NAV) of $1 per share, making them a relatively low-risk investment option.
It's important to note that while risk-free securities are generally considered to have minimal risk, they still carry some degree of risk. For example, the risk of inflation eroding the purchasing power of the investment or the issuer defaulting on its obligations.
However, these risks are considered to be very low compared to other investment options.
In summary, a risk-free security is a financial instrument that offers a guaranteed return of the principal investment amount and is typically backed by a reliable issuer. Examples include Treasury bonds, certificates of deposit, and money market funds.
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If you are willing to pay $28,949.00 today to receive a perpetuity with the first payment occurring next year then the payment must be $______. Assume a 14.00% discount rate.
Present value = $28,949, discount rate = 14%, payment to be calculatedFormula to calculate the payment of perpetuity: Payment = Present Value / (1 + Discount rate)Explanation:To find the payment of perpetuity,
we can use the formula:Payment = Present Value / (1 + Discount rate)Using the given values, we get:Payment = $28,949 / (1 + 0.14) [As the discount rate is in percentage,
we need to convert it into decimal by dividing it by 100]Payment = $25,331.68Therefore, the main answer is: $25,331.68.The payment must be $25,331.68 if someone is willing to pay $28,949.00 today to receive a perpetuity with the first payment occurring next year, assuming a 14.00% discount rate.
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A monopolistically competitive firm produces where _________, while a perfectly competitive firm produces where _________.
In conclusion, a monopolistically competitive firm produces where MR = MC, while a perfectly competitive firm produces where MC = market price.
A monopolistically competitive firm produces where its marginal revenue equals its marginal cost, while a perfectly competitive firm produces where its marginal cost equals the market price.
In a monopolistically competitive market, firms have some degree of market power and can differentiate their products. They face a downward-sloping demand curve, meaning they can increase sales by lowering their price. To maximize profits, a monopolistically competitive firm will produce where marginal revenue (MR) equals marginal cost (MC). This is because MR represents the additional revenue earned from selling one more unit, while MC represents the additional cost of producing one more unit. By equating these values, the firm ensures that producing an additional unit is profitable.
On the other hand, a perfectly competitive firm operates in a market where there are many buyers and sellers, and all firms produce identical products. Since they have no market power, they are price takers and can sell as much as they want at the market price. In this case, a perfectly competitive firm will produce where its marginal cost equals the market price. This ensures that the firm is minimizing costs and maximizing profits.
In conclusion, a monopolistically competitive firm produces where MR = MC, while a perfectly competitive firm produces where MC = market price.
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In many parts of the world, ____________________ is common because family interests are more important than individual interests; consequently, spouses are selected by more experienced family members.
In many parts of the world, arranged marriage is common because family interests are more important than individual interests; consequently, spouses are selected by more experienced family members.
Arranged marriage refers to a marital union where the decision regarding the choice of a spouse is made by the family, rather than the individuals involved. This practice is prevalent in cultures where collective values and family honor are highly prioritized.
In such societies, the primary goal of marriage is often to strengthen family ties, ensure economic stability, and preserve social status. Therefore, parents or other elders take on the responsibility of finding a suitable match for their children based on various factors such as social background, education, financial status, and compatibility.
The process of arranged marriage involves several steps. Firstly, the family initiates the search for a potential spouse, typically within their social circle or through matchmakers. Once a suitable match is identified, the families exchange detailed information about their respective children, including personal traits, interests, and family background.
If both families agree to proceed, the individuals are introduced to each other, and a period of courtship may follow. During this time, they can get to know each other better, although the final decision usually rests with the families. If all goes well, the couple will be formally engaged and eventually married.
It is important to note that while arranged marriage may seem unfamiliar or restrictive to some, it has been an integral part of many cultures for centuries. It is a complex practice influenced by societal, cultural, and economic factors, and its significance and approach can vary across regions.
In conclusion, arranged marriage is common in many parts of the world where family interests outweigh individual desires. It is a practice rooted in traditions and customs that aim to strengthen familial ties and maintain social cohesion. While this practice may differ from the concept of marriage based on personal choice, it is essential to understand and respect the cultural diversity and values associated with different marriage customs.
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thank you for giving my team the opportunity to present our proposal for the opening of eleven new stores in copenhagen; we’d like to meet again to discuss the details further.
The speaker is expressing gratitude for the opportunity to present a proposal for opening eleven new stores in Copenhagen and is requesting a meeting to further discuss the details.
The person speaking is thanking someone for giving their team the chance to present a proposal. The proposal is for the opening of eleven new stores in Copenhagen. The speaker is expressing gratitude for the opportunity and is interested in discussing the details further. They would like to have another meeting to go into more depth about the proposal.
The speaker is expressing their appreciation for being given the opportunity to present their proposal for the opening of eleven new stores in Copenhagen. This implies that they have prepared a plan for expanding their business and are eager to share it with the person they are addressing. By thanking the recipient for providing this chance, the speaker is acknowledging the significance of the opportunity and expressing their gratitude.
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The following information pertains to Tanzi Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $43,435 Accounts receivable (net) 34,536 Inventory 36,433 Property, plant and equipment 229,666 Total Assets $344,070 Liabilities and Stockholders' Equity Current liabilities $55,244 Long-term liabilities 93,205 Stockholders' equity-common 195,621 Total Liabilities and stockholders' equity $344,070 Income Statement Sales $99,796 Cost of goods sold 44,908 Gross margin $54,888 Operating expenses 22,163 Net income $32,725 Number of shares of common stock 5,982 Market price of common stock $27 What is the current ratio for this company
The current ratio for Tanzi Company is approximately 2.07.
To calculate the current ratio, we need to divide the current assets by the current liabilities.
From the information provided, the current assets of Tanzi Company consist of cash and short-term investments, accounts receivable (net), and inventory, which add up to 43,435 + 34,536 + 36,433 = 114,404.
The current liabilities of Tanzi Company are given as 55,244.
Now we can calculate the current ratio by dividing the current assets by the current liabilities:
Current Ratio = Current Assets / Current Liabilities
Current Ratio = 114,404 / 55,244
Current Ratio = 2.07
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Recall that money serves three functions in the economy. what are those functions? how does inflation affect the ability of money to serve each of these functions?
Money serves as a medium of exchange, unit of account, and store of value in the economy. Inflation negatively affects the ability of money to serve these functions by reducing its purchasing power, distorting the unit of account, and eroding the value of stored wealth.
The three functions of money in the economy are:
1. Medium of exchange:
Money serves as a medium of exchange, allowing individuals to trade goods and services without the need for bartering.
It simplifies transactions and facilitates economic activity.
For example, if you want to buy a book, you can use money to exchange it with the bookseller.
2. Unit of account:
Money provides a standard unit of measurement for valuing goods, services, and assets.
It allows for easy comparison of prices and helps determine the value of different products.
For instance, if you are comparing the prices of two laptops, you can use money as the common unit of account to decide which one offers better value for your budget.
3. Store of value:
Money can be stored and held for future use. It allows individuals to save their wealth and use it at a later time.
People can store money in bank accounts, invest it, or hold physical currency.
This function helps in planning for the future and meeting future needs.
Inflation affects the ability of money to serve these functions. When there is inflation, the value of money decreases over time. As a result:
- Medium of exchange: Inflation erodes the purchasing power of money.
If prices rise due to inflation, the same amount of money will buy fewer goods and services.
This makes it harder to use money as a medium of exchange efficiently.
- Unit of account:
Inflation distorts the unit of account function of money.
With rising prices, it becomes challenging to compare prices accurately and make informed decisions.
The value of money becomes uncertain, making it difficult to measure economic value accurately.
- Store of value:
Inflation reduces the value of money held as savings or investments.
As the purchasing power of money decreases, the stored wealth loses value over time.
This discourages saving and investment, as people seek alternatives to preserve their wealth.
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Presented below is information related to Viel Company at December 31, 2020, the end of its first year of operations. Sales revenue Cost of goods sold Selling and administrative expenses Gain on sale of plant assets Unrealized gain on available-for-sale debt investments Interest expense Loss on discontinued operations Dividends declared and paid $310,000 140,000 50,000 30,000 10,000 6,000 12,000 5,000 Compute the following:
(a) Income from operations
(b) Net income
(c) Comprehensive income
(d) Retained earnings balance at December 31, 2020 Click if you would like to Show Work for this question:
The values of (a), (b), (c) and (d) are $120,000$142,000$152,000$137,000 respectively.
Sales revenue = $310,000
Cost of goods sold = $140,000
Selling and administrative expenses = $50,000
Gain on sale of plant assets = $30,000
Unrealized gain on available-for-sale debt investments
= $10,000Interest expense = $6,000Loss on discontinued operations
= $12,000
Dividends declared and paid = $5,000
(a) expenses come
Calculation of Income from operations:
Income from operations = Sales revenue - Cost of goods sold - Selling and administrative expenses
Income from operations = $310,000 - $140,000 - $50,000
= $120,000
(b) Calculation of Net income:
Net income = Income from operations + Gain on sale of plant assets - Interest expense - Loss on discontinued operations + Unrealized gain on available-for-sale debt investments - Income taxes
Net income = $120,000 + $30,000 - $6,000 - $12,000 + $10,000 - 0
= $142,000(
c) Calculation of Comprehensive income:
Comprehensive income = Net income + Unrealized gain on available-for-sale debt investments
Comprehensive income = $142,000 + $10,000
= $152,000
(d) Calculation of Retained earnings balance at December 31, 2020:
Retained earnings = Net income - Dividends declared and paid
Retained earnings = $142,000 - $5,000
= $137,000
Therefore, the values of (a), (b), (c) and (d) are:$120,000$142,000$152,000$137,000 respectively.
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Onbalance volume is a secondary indicator used to confirm price trends. a. True b. False
True. On-Balance Volume (OBV) is indeed a secondary indicator used to confirm price trends in technical analysis.
OBV was developed by Joseph Granville in the 1960s and is based on the principle that volume precedes price movement. The OBV indicator tracks the cumulative volume of an asset by adding or subtracting the trading volume based on the price movement. When the price closes higher than the previous period, the volume is considered positive and added to the OBV. Conversely, when the price closes lower than the previous period, the volume is considered negative and subtracted from the OBV.
The purpose of using OBV is to determine the strength of price trends. If the OBV is rising, it suggests that buying pressure is increasing and confirms an upward price trend. Conversely, if the OBV is falling, it indicates selling pressure is increasing, confirming a downward price trend.
Traders and analysts use OBV in conjunction with other technical indicators to validate price movements and identify potential trend reversals or continuations. By confirming the relationship between volume and price, OBV helps traders make informed decisions and enhance their understanding of market dynamics.
In conclusion, the statement "On-Balance Volume is a secondary indicator used to confirm price trends" is true.
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______ may only be used to help determine an appropriate list price for a property or to help a buyer determine fair market value.
Answer: Comparative Market Analysis.
Explanation: Comparative Market Analysis or CMA: This is the tool used in the real estate industry to determine the value of a property by comparing it to similar properties that have recently sold or are currently on the market.
Variable+costs+as+a+percentage+of+sales+for+lemon+inc.+are+70%,+current+sales+are+$500,000,+and+fixed+costs+are+$202,000.+how+much+will+operating+income+change+if+sales+increase+by+$40,400?
Operating income will change by $28,280 if sales increase by $40,400.
To calculate this, first, determine the contribution margin (100% - variable cost percentage) which is 30%. Multiply the contribution margin by the increase in sales ($40,400) to find the increase in the contribution margin, which is $12,120. Operating income will change in the rise in contribution margin minus the fixed costs ($12,120 - $202,000) which equals $28,280.Sure!
To calculate the change in operating income, we need to consider the variable costs and fixed costs of Lemon Inc. The given information states that variable costs are 70% of sales, and the current sales are $500,000. This means the variable costs are 70% of $500,000, which is $350,000. the fixed costs are mentioned as $202,000.
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An american businessperson who thinks that all swiss are hardworking, efficient, and neat is demonstrating an example of:________
An american business person who thinks that all swiss are hardworking, efficient, and neat is demonstrating an example of stereotyping.
Stereotyping is the act of making assumptions or generalizations about a group of people based on their shared characteristics. In this case, the businessperson is assuming that all Swiss individuals possess the qualities of being hardworking, efficient, and neat. However, it is important to note that not all Swiss people necessarily possess these traits. Stereotyping can be problematic as it oversimplifies and reduces the diversity within a group, leading to unfair judgments and biases.
It is crucial to recognize that individuals within any group are diverse and should be seen as individuals rather than representatives of a stereotype. It is advisable to avoid generalizations and instead judge individuals based on their own unique qualities and abilities.
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a new government is elected in mireland and decides to make even deeper cuts in direct spending, totaling $14 billion. what will be the total change in real gdp? please provide answer to the nearest whole billion.
The total change in real GDP resulting from the new government's decision to make deeper cuts in direct spending amounting to $14 billion cannot be determined solely based on this information.
The impact on real GDP depends on various factors, including the multiplier effect and the specific sectors or areas affected by the spending cuts.
When the government reduces direct spending, it typically leads to a decrease in aggregate demand, as government expenditure is a component of GDP. However, the extent of the impact on real GDP depends on how households, businesses, and other sectors respond to the reduction in government spending. If the cuts lead to a significant decline in consumer and business confidence, it could result in lower investment and consumption, further dampening economic activity.
To accurately estimate the total change in real GDP, additional information is needed, such as the size of the economy, the magnitude of the multiplier effect, the sectors impacted by the spending cuts, and other macroeconomic variables. Economic models and analysis can provide more insights into the potential effects of such spending cuts on real GDP, but without specific data, it is not possible to provide a precise estimate
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johnson's department stores sold goods costing $1,200 for $2,000 on account. after two weeks the customer returned the goods. there is nothing wrong with the goods; the customer just changed his mind, and you have a return policy that allows customers to return their purchases at any time for any reason. accounts receivable $2,000 sales revenue $2,000 cost of goods sold $1,200 inventory $1,200 which one of the following is included in the journal entries necessary to record this return? note: you are recording the return; assume that the initial sale was recorded correctly. also, note that the initial sale was not a cash sale; the sale was made on account.
The journal entry of Johnson's department stores necessary to record the return would include a credit to Sales Revenue. When recording the return of goods, the Sales Revenue account needs to be decreased to reflect the reversal of the initial sale. Since the customer returned the goods, the revenue generated from the sale needs to be reversed. As the initial sale was made on account, the Sales Revenue account would be credited to reduce the recorded revenue.
The journal entry would typically include a debit to Accounts Receivable to reverse the amount initially recorded as an account receivable from the customer. However, in this specific scenario, it is stated that the customer returned the goods after two weeks, which suggests that the Accounts Receivable had already been collected in full. Therefore, there would be no impact on the Accounts Receivable account.
It is important to note that there may be additional journal entries required to adjust the inventory and Cost of Goods Sold accounts, depending on the specific inventory costing method used by Johnson's Department Stores. However, based on the information provided, the only component included in the journal entry necessary to record the return would be a credit to Sales Revenue.
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Company A has depreciation of $50,000 and earnings after taxes of $210,000. Company B has no depreciation and earnings after taxes of $240,000. Company A enjoys a higher level of cash flows from operations than company B by the amount of __________.
Given that Company A has depreciation of $50,000 and earnings after taxes of $210,000. And Company B has no depreciation and earnings after taxes of $240,000. We are required to find the amount by which Company A enjoys a higher level of cash flows from operations than Company B.
To find out the amount by which Company A enjoys a higher level of cash flows from operations than Company B, we must calculate the operating cash flow of both companies. Operating Cash Flow is the main answer to our question and it is calculated as follows:
Operating Cash Flow = Earnings After Tax + Depreciation - TaxesTo determine the amount by which Company A enjoys a higher level of cash flows from operations than Company B, we will first calculate the operating cash flow of each company:Operating Cash Flow of Company A= $210,000 + $50,000 - TaxesOperating Cash Flow of Company B= $240,000 - TaxesWe can observe from above that Company A's operating cash flow includes the depreciation expense, whereas Company B does not have any depreciation expense. Hence, Company A enjoys a higher level of cash flows from operations than Company B by the amount of $50,000. Explanation: Operating Cash Flow of Company A= $210,000 + $50,000 - TaxesOperating Cash Flow of Company B= $240,000 - TaxesThe amount by which Company A enjoys a higher level of cash flows from operations than Company B is $50,000.
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Consumers now regard social media as a more trustworthy source of information over traditional marketing communications.
True
False
So, the correct answer is True. Consumers now regard social media as a more trustworthy source of information over traditional marketing communications. This shift can be attributed to several reasons.
Firstly, social media allows for more user-generated content, which is seen as more authentic and reliable. Traditional marketing communications, such as advertisements and commercials, are often seen as biased and self-promotional. On social media platforms, users can share their experiences and opinions about products or services, providing a more diverse and unbiased perspective.
Secondly, social media enables direct interaction between consumers and brands. This fosters transparency and builds trust. Consumers can ask questions, voice concerns, and receive real-time responses from brands, enhancing the credibility of the information shared. In contrast, traditional marketing communications lack this level of immediacy and personal connection.
Thirdly, social media platforms often provide access to reviews, ratings, and recommendations from other consumers. This crowd-sourced information is highly valued by consumers, as it allows them to make informed decisions based on the experiences of others. Traditional marketing communications rarely provide this kind of unbiased feedback.
Social media has emerged as a more trustworthy source of information for consumers compared to traditional marketing communications. The authenticity of user-generated content, direct interaction with brands, and access to crowd-sourced feedback contribute to this shift in consumer perception.
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norris co. has developed an improved version of its most popular product. to get this improvement to the market will cost $48 million but the project will return an additional $13.5 million for 5 years in net cash flows
Getting this improvement to the market will cost $48 million, but the project will return an additional $13.5 million for 5 years in net cash flows.
To determine the profitability of the project, we can calculate the net present value (NPV) using the formula: NPV = Net Cash Flows / (1 + Discount Rate)^n - Initial Investment 1. Calculate the NPV: NPV = $13.5 million / (1 + Discount Rate)^5 - $48 million 2. Determine the Discount Rate: The discount rate represents the minimum rate of return required by the company. This rate takes into account the cost of capital and the risk associated with the project. You will need to determine the appropriate discount rate for Norris Co. 3. Plug in the values and solve for NPV: Using the discount rate, substitute the values into the NPV formula and solve for NPV. If the NPV is positive, the project is considered profitable.
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In a performance based logsitic (pbl) a contract a contractor is never required to use dod inventory.
a. true
b. false
Therefore, it is false to state that a contractor is never required to use DoD inventory in a PBL contract. It is important to understand that PBL contracts are designed to enhance the availability and reliability of logistics support, and the use of DoD inventory may be necessary to achieve these objectives.
In a performance-based logistics (PBL) contract, a contractor is never required to use Department of Defense (DoD) inventory.
The correct answer is b. false.
In a PBL contract, the contractor is responsible for managing and maintaining the required inventory to meet the performance objectives. However, there may be instances where the contractor needs to utilize DoD inventory. For example, if the contractor faces a shortage of a specific item or if the DoD has excess inventory that can be used to fulfill the contract requirements, the contractor may be required to use DoD inventory.
Therefore, it is false to state that a contractor is never required to use DoD inventory in a PBL contract. It is important to understand that PBL contracts are designed to enhance the availability and reliability of logistics support, and the use of DoD inventory may be necessary to achieve these objectives.
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A corporation has 14,000 shares of 13%, $104 par noncumulative preferred stock outstanding and 22,000 shares of no-par common stock outstanding. At the end of the current year, the corporation declares a dividend of $220,000. What is the dividend per share for preferred stock and for common stock
The dividend per share for the preferred stock is $14.04, and the dividend per share for the common stock is $1.06.
To calculate the dividend per share for preferred stock and common stock, we need to know the total amount of dividends allocated to each type of stock.
For the preferred stock:
Preferred dividend = Number of preferred shares * Preferred dividend rate
Preferred dividend = 14,000 shares * 13% * $104 = $196,560
For the common stock:
Common dividend = Total dividends - Preferred dividend
Common dividend = $220,000 - $196,560 = $23,440
Dividend per share for preferred stock = Preferred dividend / Number of preferred shares
Dividend per share for preferred stock = $196,560 / 14,000 shares = $14.04
Dividend per share for common stock = Common dividend / Number of common shares
Dividend per share for common stock = $23,440 / 22,000 shares = $1.06
Therefore, the dividend per share for the preferred stock is $14.04, and the dividend per share for the common stock is $1.06.
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_______ requirements are characteristics of the system other than the business procedures it must support.
The requirements which are characteristics of the system other than the business procedures it must support are called non-functional requirements.Non-functional requirements are the requirements that are based on system attributes such as security, response time, or user interface.
They refer to the technical aspects of the system, rather than its functional features, and they usually describe overall characteristics or qualities of the system. Non-functional requirements can be grouped into categories based on the aspect of the system that they describe.
These categories may include but are not limited to: Usability, Performance, Security, Compatibility, Maintainability,Reliability, Scalability, Interoperability, Portability.
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If the appraised value in the appraisal report is different from the value submitted to LPA, what should the underwriter do
If the appraised value in the appraisal report is different from the value submitted to the LPA (Loan Processing Application), the underwriter should review the appraisal report and assess the reasons for the discrepancy. Based on their analysis, they should determine whether the difference in value affects the loan approval decision.
When the appraised value in the appraisal report differs from the value submitted to the LPA, it indicates a potential discrepancy that needs to be addressed. The underwriter's role is to carefully review the appraisal report and compare it to the submitted value. They should analyze the factors that may have contributed to the difference, such as errors in data, variations in market conditions, or differences in the appraisal methodology.
The underwriter should assess the significance of the discrepancy in relation to the loan application. If the difference is minor and does not significantly impact the loan's risk profile or compliance with lending guidelines, the underwriter may proceed with the loan approval process.
However, if the difference in value is substantial and raises concerns about the loan's feasibility or compliance, the underwriter may need to take further action. This may involve requesting additional information or documentation from the appraiser, conducting a second appraisal, or seeking clarification from the borrower or other relevant parties.
The underwriter's ultimate goal is to ensure that the loan is based on an accurate and reliable appraisal value, aligning with the lender's policies and regulatory requirements.
When faced with a discrepancy between the appraised value in the appraisal report and the value submitted to the LPA, the underwriter plays a crucial role in reviewing the situation and determining the appropriate course of action. Their decision should be based on a thorough analysis of the appraisal report, consideration of loan risks, and compliance with lending guidelines. By addressing the discrepancy effectively, the underwriter helps maintain the integrity of the loan process and ensures accurate valuation of the property.
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Select the most appropriate category for each good or service listed. 1. Appliances multiple choice 1 convenience shopping specialty unsought
1. Appliances: Convenience Shopping this is the most appropriate category for each good or service
Appliances generally fall under the category of convenience shopping. Convenience shopping refers to goods or services that consumers regularly purchase with little effort, usually for everyday needs. Appliances such as refrigerators, washing machines, or microwaves are commonly needed items in households, and consumers often buy them based on convenience and necessity.
While they may require some research and consideration, appliances are not typically considered specialty items that cater to specific tastes or preferences. They are also not unsought goods that consumers do not actively seek out unless they have an immediate need. Therefore, appliances are best classified as convenience shopping items.
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The type of organizational culture change that changes rapidly, usually in times of trouble, is called:___.
In conclusion, crisis-driven change refers to the swift and decisive actions taken by organizations during times of trouble to navigate through challenging situations.
The type of organizational culture change that changes rapidly, usually in times of trouble, is called crisis-driven change. During times of crisis, such as financial difficulties or sudden market changes, organizations often need to quickly adapt to survive. Crisis-driven change involves implementing immediate measures to address the problem at hand and restore stability. This type of change is characterized by urgency, short-term focus, and a top-down decision-making approach. For example, a company facing a major economic downturn may need to rapidly restructure its operations, lay off employees, or change its business strategy. In conclusion, crisis-driven change refers to the swift and decisive actions taken by organizations during times of trouble to navigate through challenging situations.
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