The revalued amount for the land is RM9.6 million, and for the buildings is RM28 million. Accumulated depreciation for buildings is RM16,000, and for plant and equipment is RM19,600. A plant worth RM480,000 with accumulated depreciation of RM238,000 was damaged and estimated to have a remaining life of two years.
Its current disposal value is RM15,000, and the present value in use is RM163,000. Aesthetic was offered a trade-in value of RM135,000 for a replacement machine costing RM750,000.
Aesthetic Berhad revalued their land and buildings, with the land valued at RM9.6 million and the buildings at RM28 million. The accumulated depreciation for buildings is RM16,000, and for plant and equipment is RM19,600. A plant worth RM480,000 with accumulated depreciation of RM238,000 was damaged and has a remaining life of two years. Its current disposal value is RM15,000, and its present value in use is RM163,000. A trade-in value of RM135,000 is offered for a replacement machine costing RM750,000.
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You're running a small firm, and you have an estimate of both your cost function and your demand curve. Your cost function is TC=852-13q+5q^2, while your inverse demand curve is P=1,228-0.4q, where P is the price of one unit of your output and q is the quantity of units produced and sold.
If you wanted to maximize revenue, what quantity would you produce? Please round your answer to the nearest whole number (i.e., no decimal places).
Given that the cost function of a small firm is TC=852-13q+5q² while its inverse demand curve is P=1228-0.4q, where P is the price of one unit of the output, and q is the number of units produced and sold.
The formula for revenue is revenue = price x quantity. Therefore, the formula for revenue is P(q) = (1228 - 0.4q)q or P(q) = 1228q - 0.4q².Substitute the cost function into the revenue function to get P(q) = 1228q - 0.4q² and TC = 852 - 13q + 5q².The formula for profit is profit = revenue - cost. Therefore, Profit = P(q) - TC.Substitute P(q) = 1228q - 0.4q² and TC = 852 - 13q + 5q² into the profit formula to get Profit = 1228q - 0.4q² - (852 - 13q + 5q²)Simplify the profit equation by combining like terms to get Profit = 8q² - 5q + 376.To maximize profits.
we will take the first derivative of the profit function and set it to zero. This is because the slope of the profit function will be zero at its maximum point.The derivative of the profit function is 16q - 5.To find the maximum point of the profit function, set the derivative equal to zero and solve for q.16q - 5 = 0 ⇒ 16q = 5 ⇒ q = 5/16 ≈ 0.3125 (rounded to 1 decimal place).Rounding the answer to the nearest whole number, the quantity to be produced is q = 0. Hence, the quantity to be produced is 0 units.
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please when you answer the question make it clear so I can
fill out the blank
For each of the following sltuations, Indicate the type of report that would be required as well as how various paragraphs/sections of the auditors' report would be modified In the audit of a nonissue
In the audit of a nonissuer, the type of report required would be an unqualified opinion report. This report will be modified based on the following paragraphs/sections of the auditor's report: Introduction Paragraph: This paragraph explains the responsibilities of the auditor and the management in relation to the financial statements.
It also highlights the audit's scope and objectives. The language of this paragraph does not need any modification in the audit of a nonissuer.
Management's Responsibility for the Financial Statements Paragraph: This paragraph states that management is responsible for preparing and presenting the financial statements. The auditor does not make any judgment about the adequacy of the presentation of the financial statements by management. Hence, this paragraph remains unchanged in the audit of a nonissuer. Auditor's Responsibility Paragraph: This paragraph explains the auditor's responsibilities regarding the financial statements and the audit. In the audit of a nonissuer, this paragraph should not be modified. Basis for Opinion Paragraph: This paragraph explains the basis of the auditor's opinion and is written after the auditor has completed the audit. In the audit of a nonissuer, this paragraph does not require any modification.
Opinion Paragraph: In the audit of a nonissuer, this paragraph is crucial and should be unmodified. It is the section that provides the auditor's conclusion on the financial statements as a whole and indicates the opinion of the auditor. In a nonissuer's audit, the opinion should be unqualified. The unqualified opinion means that the auditor's opinion on the financial statements is fair and presented accurately.
The auditors' report in the audit of a nonissuer is simple, as there are no legal requirements and no need to be complicated. The auditor needs to issue an unqualified opinion, as this will give the client confidence in the reliability of the financial statements.
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Sandpiper Company has 15,000 shares of cumulative preferred 3% stock, $50 par and 50,000 shares of $20 par cornmon stock. The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places, If an answer is zero, enter ' 0 :
We need to know the total amount of dividends distributed as well as the number of shares for each class of stock in order to calculate the dividends per share for preferred and common stock for each year.
Information provided: - 15,000 shares of cumulative preferred stock, 3% dividend rate, and $50 par value 50,000 shares of common stock with a $20 par value. - Dividends paid out: No amounts are given. We divide the total dividends by the number of shares for each class of stock to get the dividends per share. Dividends per share, Year 1 Dividends per Share for Preferred Stock are calculated as Total Preferred Dividends / Preferred Shares. Dividends per Share for Common Stock are calculated as follows: Total Common Dividends / Common Shares Year 2: Preferred Stock Dividends per Share Dividends per Share = Total Preferred Dividends / Number of Preferred Dividends per share are determined by dividing the total common dividends by the number of common shares. The dividends per share for each year cannot be determined without the precise amounts of dividends distributed. I will be pleased to help you determine the dividends per share if you can only let me know how much was distributed in dividends each year.
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When you go to a store, you want to know whether things are high quality or low quality and whether they are underpriced or overpriced. When buying goods, you do this in many different ways - you comparison shop, check for sales, read online reviews, and consult professional surveys (such as Consumer Reports magazine). Let's zero in on that last one: the professionals who review products and say which ones are high-quality and well-priced.
Equity analysts like Alberto Moel are the Consumer Reports of capital markets. They look at the equity values of companies and make judgments on the relationship between a company’s value and their current price. On the basis of their analysis, they makes a final call - buy, hold or sell.
Analysts need information to do this important task, and they spend most of their days on the phone trying to get it. Who do you think they are on the phone with?
Equity analysts are the Consumer Reports of capital markets. They look at the equity values of companies and make judgments on the relationship between a company's value and their current price. On the basis of their analysis, they make a final call - buy, hold or sell.
Who are they on the phone with?
Equity analysts are usually on the phone with the following people to get information:
Management: Management is usually the first point of contact for the analyst. Analysts may reach out to the management of a company for clarity on certain aspects of the business such as strategy, outlook, management style, etc. In some cases, the management may even offer up information without being prompted to gain investor interest.
Customers and competitors: Analysts reach out to the customers of a company for feedback and opinions on the company's products and services. Competitors may also be contacted to get a better understanding of the competitive landscape and how the company is doing compared to its peers.
Industry experts: Analysts contact industry experts for their opinions on the industry and the company. They may also ask for industry data to form the basis of their analysis.Regulators: Equity analysts may reach out to regulators for information on the regulatory environment in which the company operates. Analysts need to understand how regulatory changes may affect the company's financial performance.
Other experts: Equity analysts may reach out to other experts such as accountants and auditors to get an understanding of the company's financials and how they are being accounted for.
Overall, equity analysts are on the phone with a wide range of people and organizations to get information that will help them form an opinion on the company.
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a company purchased a piece of equipment by paying $20,000 cash. a shipping cost of $1150 to get the equipm
Question: A company purchased a piece of equipment by paying $20,000 cash. A shipping cost of $1150 was incurred to get the equipment.
Answer:
The total cost of the equipment, including the purchase price and shipping cost, can be calculated by adding the two amounts together.
First, we add the purchase price of the equipment, which is $20,000, to the shipping cost of $1150.
$20,000 + $1150 = $21,150
Therefore, the total cost of the equipment, including the purchase price and shipping cost, is $21,150.
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The Consolidated Appropriations Act included an increase in funding for the program. Multiple Choice Medicare PATH SECURE E-Verify
The Consolidated Appropriations Act included an increase in funding for the Medicare program.
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The manufacturer of Brand X floor polish is developing a new polish that they hope will dry faster than the competition’s polish. The competition’s polish is advertised to have an average (median) drying time of 7 minutes. In a random sample of 1300 polishes with the new polish, 900 of the polishes dried in less than 7 minutes. Without making any assumptions about the distribution, can the manufacturer conclude that the median drying time for Brand X is faster than the competition's brand? Use the sign test to analyze the results. Step 1 of 2 : Find the value of the test statistic to test that the new polish dries faster than the competition's polish. Round your answer to two decimal places if necessary.
The test statistic to test whether the new polish dries faster than the competition's polish is 4.64.
To analyze the results using the sign test, we compare the observed number of polishes that dried in less than 7 minutes (900) with the expected number of polishes that would dry in less than 7 minutes if the drying time was the same as the competition's polish (650, which is half of the total sample size). Next, we calculate the test statistic using the formula: test statistic = (observed number of successes - expected number of successes) / sqrt(expected number of successes * (1 - expected number of successes) / sample size) Plugging in the values, we have: test statistic = (900 - 650) / sqrt(650 * (1 - 650/1300) / 1300) = 4.64 The test statistic represents the number of standard deviations away from the expected value. In this case, the test statistic of 4.64 suggests that the observed number of polishes drying in less than 7 minutes is significantly greater than the expected number under the assumption that the drying time is the same as the competition's polish.
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the auditing profession has established guidelines for setting inherent risk a) true b)false
a) True. The auditing profession has indeed established guidelines for setting inherent risk.
Inherent risk refers to the susceptibility of an assertion or transaction to material misstatement, in the absence of any internal controls. Auditors assess inherent risk as part of their risk assessment procedures to determine the nature, timing, and extent of audit procedures. These guidelines help auditors in evaluating various factors such as industry conditions, complexity of transactions, and the entity's internal control environment to determine the level of inherent risk associated with different areas of the financial statements. By considering these guidelines, auditors can effectively plan their audits and allocate resources based on the assessed inherent risk levels.
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5. Last week, Meerai and her friend Sean organized a school group to raise funds for AIDS research. Yesterday, on their desks, they both found crudely-drawn cartoons making fun of people who are bisexual. Last night, several students shouting anti-LGBTQ comments verbally attacked them on the street opposite the school yard. Their teacher saw the cartoons and has heard rumours of the verbal attack, but feels that nothing can be done because the attack took place off the school premises. Neither student has complained to school officials. Have the students violated Meerai and Sean's human rights?
Yes, the students have violated Meerai and Sean's human rights. Human rights are a set of rights that belong to everyone, regardless of their gender, race, religion, nationality, or any other aspect. Human rights are a set of basic rights that should be protected and ensured for everyone without discrimination of any kind.
The Universal Declaration of Human Rights (UDHR), adopted by the United Nations General Assembly in 1948, contains a list of fundamental human rights that should be safeguarded in all societies. Some of the essential rights included in the UDHR are the right to life, liberty, and security of person; freedom from torture and slavery; freedom of opinion, expression, and religion; and the right to work and an education. As per the scenario mentioned in the question, the students have violated Meerai and Sean's human rights because they shouted anti-LGBTQ comments verbally and also drew cartoons which are making fun of people who are bisexual. Human rights violations can occur when people's rights are violated because of their race, gender, religion, ethnicity, nationality, or any other aspect. It is the responsibility of everyone to respect and protect the human rights of all individuals.
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Alpha Products Inc. is considering a project with the purchase of $1.4 million in new equipment. The equipment belongs in a 20% CCA class. Alpha expects to sell the equipment at the end of the project for 20% of its original cost. Annual sales from this project are estimated at $1.2 million. Net working capital equal to 20% of sales will be required to support the project. All of the net working capital will be recouped at the end of the project. The firm desires a minimal 14% rate of return on this project. The tax rate is 34% and the project is expected to last 7 years. What is the present value of the CCA Tax Shield associated with the project? $95,913 B) $262,807 (C) $244,427 (D) $22,380
To calculate the present value of the CCA (Capital Cost Allowance) tax shield associated with the project, we need to follow these steps:
1. Determine the annual CCA tax shield.
2. Calculate the present value of the annual tax shield using the desired rate of return.
Step 1: Calculate the annual CCA tax shield
The CCA tax shield is the tax savings resulting from claiming CCA on the equipment. The CCA tax shield can be calculated using the formula:
CCA Tax Shield = CCA Rate * Equipment Cost * Tax Rate
In this case, the CCA rate is 20%, the equipment cost is $1.4 million, and the tax rate is 34%.
CCA Tax Shield = 0.20 * $1,400,000 * 0.34
CCA Tax Shield = $95,200
Step 2: Calculate the present value of the annual tax shield
To calculate the present value of the annual tax shield, we need to discount the future tax shield amounts to their present value using the desired rate of return.
PV of Tax Shield = CCA Tax Shield * Present Value Factor
The present value factor can be calculated using the formula:
Present Value Factor = (1 - (1 + r)^(-n)) / r
Where:
r = discount rate (14% or 0.14)
n = number of years (7)
Present Value Factor = (1 - (1 + 0.14)^(-7)) / 0.14
Present Value Factor = 4.11147
PV of Tax Shield = CCA Tax Shield * Present Value Factor
PV of Tax Shield = $95,200 * 4.11147
PV of Tax Shield ≈ $392,398
Therefore, the present value of the CCA Tax Shield associated with the project is approximately $392,398.
None of the provided answer choices match the calculated value.
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Discuss 3 reasons of why EU countries have high volumes of
mutual trade flows
The European Union has a single market, which allows for free trade and movement of goods and services. As a result, EU countries have high volumes of mutual trade flows.
The following are three reasons why EU countries have high volumes of mutual trade flows: Shared geographical proximity EU countries share a geographical proximity, and trade between them is aided by their close proximity. This proximity is one of the main reasons why the volume of mutual trade flows is high among EU countries. They have a better understanding of each other's market, trading laws and regulations
Shared trading policies The EU has common trading policies, which encourage member states to trade among themselves. By signing up for common trading policies, EU countries are bound by the same rules, regulations and standards. This has facilitated free trade among EU member states, which, in turn, has boosted mutual trade volumes.
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Kindly answer with complete solution. Needed ASAP.
Zee Po Gee Cooperative is a credit cooperative operating in the whole Province of Benguet including Baguio City. At the end of taxable year 2021 , the accumulated reserves and undivided net savings of
Zee Po Gee Cooperative is a credit cooperative operating in the whole Province of Benguet including Baguio City. At the end of taxable year 2021, the accumulated reserves and undivided net savings of the cooperative amounted to P9,750,000.00. Compute the income tax due for the year 2021. The income tax due for Zee Po Gee Cooperative for the year 2021 is P1,591,000.00.
The first step is to compute for the taxable income by subtracting the total deductions from the gross income. The formula is:Taxable Income = Gross Income - Total Deductions In this case, we have to determine the gross income and total deductions of the cooperative. There is no information provided about the gross income, so we will assume that it is equal to the accumulated reserves and undivided net savings, which is P9,750,000.00. The total deductions will be computed based on the information given in the problem. Here are the deductions allowed by the Bureau of Internal Revenue:Bad debts (must be written off)Depletion Depreciation Employee benefits Foreign taxes Home office
Interest on loans Losses Pensions Rents Representation and entertainment Research and development Retirement benefits Royalties Taxes.The cooperative can claim the following deductions:Interest on loans - P500,000.00 Representation and entertainment - P50,000.00 Depreciation - P150,000.00 Total Deductions = P700,000.00 Taxable Income = P9,750,000.00 - P700,000.00 = P9,050,000.00Next, we need to determine the tax due using the Tax Table. Based on the Tax Table, the tax due is:P575,000.00 + 32% of the excess over P5,000,000.00Tax Due = P575,000.00 + [32% x (P9,050,000.00 - P5,000,000.00)]Tax Due = P575,000.00 + P1,016,000.00Tax Due = P1,591,000.00
Therefore, the income tax due for Zee Po Gee Cooperative for the year 2021 is P1,591,000.00.
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A graph with price and quantity axes and MC, ATC, and AVC curves. MC has sections A, B, and C and is upward sloping. Section A starts at the beginning of the MC curve and ends when MC intersects AVC, Section B starts from that intersection and continues until MC intersects ATC, and Section C starts at the intersection of ATC and MC and continues until the end of the MC curve.
Which sections of the following firm’s marginal cost curve are also part of its supply curve?
1. A+B only
2. B+C only
3. C only
4. B only
A firm's supply curve includes only that part of the marginal cost curve that lies above the average variable cost curve.
It is the minimum price that a firm will accept to produce a certain quantity of goods or services in the short run.
Therefore, the answer to the question above is option 2 (B+C only).
The average total cost curve (ATC) and the marginal cost curve (MC) will intersect at the minimum point of the ATC curve because, at this point, MC will be equal to ATC.
When a firm sets its price, it compares its average total cost with its marginal cost.
If the average total cost is higher than the marginal cost, it will not be profitable to produce the goods, and the firm will shut down.
In the short run, a firm will only produce if the price is greater than the minimum average variable cost (AVC) because, in the short run, a firm must cover its variable costs to stay in business.
In other words, in the short run, a firm's supply curve will be part of the marginal cost curve that lies above the average variable cost curve (AVC).Sections B+C of the firm's marginal cost curve are also part of its supply curve.
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most manufacturing items and their components are defined by part 2 a. group technology. b. the make-or-buy decision. c. an engineering drawing. d. a bom.
d. a bom (bill of materials).
A bill of materials (BOM) is a comprehensive list of all the raw materials, components, and sub-assemblies required to manufacture a finished product. It provides detailed information about the quantities, descriptions, and relationships between the different parts needed for production.
A BOM serves as a central document that defines the structure and composition of a product. It includes information such as part numbers, descriptions, specifications, quantities, and sometimes even the sources or suppliers of each component. By having a clear and accurate BOM, manufacturers can ensure that they have all the necessary materials to build their products and maintain consistency in their production processes.
The BOM is used in various stages of manufacturing, including procurement, inventory management, production planning, and quality control. It helps manufacturers determine their material requirements, estimate costs, track inventory levels, and facilitate smooth production workflows.
Therefore, a BOM is the most common and appropriate document that defines the components and structure of manufacturing items.
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Due to Covid lockdowns, interstate transportation becomes difficult. Meanwhile, construction work is viewed as essential and therefore not affected by lockdowns. Use a demand and supply graph to explain how the lockdowns affect the equilibrium price and quantity. (5 points)
2.6. After the equilibrium change in 2.5, the government introduces tax benefits for house renovation to stimulate the economy. As a result, there is an increase in construction projects. How do the tax benefits change the equilibrium in the timber market? (5 points)
2.7. Bushfires are more likely to happen in summer. If a bushfire happens again in the coming summer, how would you expect it to affect the timber market? (5 points)
2.8. Consider the setup in 2.1-2.4, and suppose the government introduces a subsidy of t=1 dollar to the buyers for every unit of timber purchased. Calculate the new equilibrium quantity, and use a demand and supply graph to explain how the subsidy affects the equilibrium price and quantity. (5 points)
The demand and the supply of timber for construction in Australia are given by
QD =120 – 20P
QS = 40P
We assume the market is perfectly competitive
1. Due to Covid lockdowns, the equilibrium price and quantity of timber will decrease.
The decrease in interstate transportation reduces the demand for timber, shifting the demand curve to the left, resulting in a lower equilibrium price and quantity.
In more detail, the Covid lockdowns restrict interstate transportation, which affects the construction industry's ability to access timber from different regions. This leads to a decrease in the demand for timber, shifting the demand curve to the left. As a result, the equilibrium price and quantity of timber decrease, as the reduced demand meets the unchanged supply curve at a lower price and quantity.
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When long-term debt investments are accounted for using the
amortized cost (AC) method?
Select one:
a. the book value is not adjusted to the investments’ fair value
at the end of the accounting so,
When long-term debt investments are accounted for using the amortized cost (AC) method, the book value is not adjusted to the investments’ fair value at the end of the accounting period. In the amortized cost method, the investor accounts for the long-term debt investment at its initial cost.
Subsequently, it adjusts the book value for the amount of interest earned and the amortization of any premium or discount on the investment. This is done until the long-term debt investment is fully repaid. Therefore, the book value of the long-term debt investment will always be less than its fair value. This is because the fair value includes the changes in interest rates and market conditions that can affect the value of the investment. Thus, the amortized cost method is used when the long-term debt investment is intended to be held until maturity and the investor wants to avoid fluctuations in the fair value of the investment over time.
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the eeoc and ofccp require firms to keep their staffing records in order to
The EEOC (Equal Employment Opportunity Commission) and OFCCP (Office of Federal Contract Compliance Programs) require firms to keep their staffing records in order to ensure compliance with equal employment opportunity and affirmative action regulations. The specific purposes for maintaining staffing records include:
EEO Compliance: The EEOC and OFCCP require companies to keep records to demonstrate that they are not engaging in discriminatory employment practices. These records can be used to track and analyze data related to the recruitment, hiring, promotion, and termination of employees to ensure fair and equal treatment.
Reporting and Auditing: Companies may be required to submit reports to the EEOC and OFCCP, disclosing information about their workforce demographics and employment practices. Staffing records are crucial for generating accurate and comprehensive reports to meet regulatory obligations.
Monitoring and Investigation: The EEOC and OFCCP may conduct audits and investigations to ensure compliance with equal employment opportunity and affirmative action regulations. Staffing records serve as evidence and documentation to assess whether an organization is meeting its legal obligations and to investigate any potential violations.
Affirmative Action Planning: Federal contractors and subcontractors are required to develop and maintain affirmative action plans (AAPs) to promote diversity and equal employment opportunities. Staffing records are essential for establishing baselines, setting goals, and measuring progress toward achieving workforce diversity and inclusion objectives.
Overall, the maintenance of staffing records is crucial for organizations to comply with legal requirements, demonstrate fair employment practices, and support diversity and inclusion initiatives. These records help ensure transparency, accountability, and provide data for analysis to identify areas for improvement in the recruitment, hiring, and advancement of employees.
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Susan, a systems engineer at Mark and Stefunn, is highly satisfied with her job because of the recognition she gets from her manager. The presence of constant opportunities for career growth and job responsibilities also adds to her satisfaction. According to Herzberg's theory, which of the following is a reason for Susan's job satisfaction?
a.
The presence of motivation factors
b.
The absence of manifest needs
c.
Insufficient hygiene factors
d.
Sufficient existence needs
The reason for Susan's job satisfaction according to Herzberg's theory is the presence of motivation factors. Herzberg's theory classifies workplace factors into two: hygiene factors and motivational factors.
Motivation factors refer to job conditions that could lead to job satisfaction because they serve to fulfil the individual's self-actualization needs or growth needs. Recognition, achievement, growth, responsibility, and other job-related opportunities are examples of motivation factors.What are hygiene factors?Hygiene factors refer to working conditions that can lead to job dissatisfaction if absent or inadequate. Salary, job security, organizational policies and regulations, and interpersonal relationships are examples of hygiene factors. In conclusion, Susan's job satisfaction is due to the presence of motivation factors.
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the gaap hierarchy lists which source of authoritative accounting guidance as highest in priority?
The GAAP hierarchy lists the following source of authoritative accounting guidance as the highest in priority: FASB Accounting Standards Codification (ASC).
Financial Accounting Standards Board (FASB) is the source of authoritative accounting guidance for private entities in the United States. The GAAP hierarchy lists the following sources of authoritative accounting guidance in order of priority:
FASB Accounting Standards Codification (ASC), FASB Statements of Financial Accounting Standards (SFAS), FASB Interpretations (FIN), AICPA Statements of Position (SOP), AICPA Accounting Research Bulletins (ARB), and AICPA Practice Bulletins (PB). The hierarchy was established by the Financial Accounting Standards Board (FASB) to ensure that financial statements prepared under GAAP are useful and consistent.
The highest level of GAAP is the FASB Accounting Standards Codification (ASC), which is the single source of authoritative nongovernmental U.S. GAAP. The ASC replaced the myriad of accounting standards that had been issued over the years by various accounting standards-setting bodies and provided a single source of guidance that is more comprehensible. The ASC includes all of the accounting standards issued by the FASB and its predecessors, as well as guidance from SEC staff accounting bulletins and other authoritative sources.
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according to circular 21, as long as a teacher doesn't copy more than three illustrations from a book, it is fair use.
According to Circular 21, as long as a teacher doesn't copy more than three illustrations from a book, it is fair use. To be more specific, Circular 21 is the part of the copyright law that outlines the rules for fair use of copyrighted material.
Under the "fair use" doctrine, teachers and other educators are permitted to make copies of copyrighted works without getting permission from the copyright holder as long as certain conditions are met. These conditions include the purpose of the use, the nature of the copyrighted work, the amount and substantiality of the portion used in relation to the copyrighted work as a whole, and the effect of the use upon the potential market for or value of the copyrighted work.The three-illustration rule means that teachers can copy up to three illustrations from a book without permission from the copyright owner, as long as the use is for nonprofit educational purposes, the copies are made by the teacher, and the copies are not sold for profit. Any use of copyrighted material that does not meet the requirements of fair use may be considered infringement and could result in legal action.
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Building a Statement of Financial Position (LO1) Oakville Pucks Inc. has current assets of $4,900, net fixed assets of $27,500, current liabilities of $4,200, and long- term debt of $10,500. What is the value of the shareholders’ equity account for this firm? How much is net working capital?
Building a Statement of Financial Position (LO1)The statement of financial position is also known as the balance sheet. It presents the organization's financial condition at a specific point in time. The statement of financial position is a report that includes three fundamental sections:
assets, liabilities, and owner's equity. In this report,The statement of financial position for Oakville Pucks Inc. can be computed as follows:
Assets[tex]assets = $4,900Net fixed assets = $27,500Total assets = $32,400LiabilitiesCurrent liabilities = $4,200Long-term debt = $10,500Total liabilities = $14,700S[/tex]Working CapitalNet working capital is the difference between current assets and current liabilities.
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On March 17, Advanced Technologies purchased a patent related to laser surgery techniques. The purchase price of the patent is $1,360,000. The patent is expected to benefit the company for the next five years. The company had the following additional costs: $36,000 in legal fees associated with the purchase and filing of the patent, $51,000 to advertise its new laser surgery techniques, and $61,000 to train employees. None of these additional costs were included in the purchase price or paid to the seller. Now assume that instead of purchasing the patent, Advanced Technologles spent $1,360,000 to develop the patent internally, consisting of personnel. ($880,000), equipment ($348,000), and materials ($132,000). All additional costs were incurred for the same amount. What is the recorded cost of the patent?
The recorded cost of the patent is $1,508,000.
This is an example of purchasing intangible assets. Intangible assets are items that don't have a physical substance but instead have value based on the rights they provide the owner. A patent is one of the most common types of intangible assets. For an intangible asset to be recorded on the balance sheet, the following criteria should be met:
It must have identifiable, separable rights or economic benefits
It must arise from legal rights or contractual agreements
It must be able to be separated from the company and sold without affecting normal operations
In this question, Advanced Technologies purchased a patent related to laser surgery techniques. The purchase price of the patent is $1,360,000. The patent is expected to benefit the company for the next five years. The company had the following additional costs: $36,000 in legal fees associated with the purchase and filing of the patent, $51,000 to advertise its new laser surgery techniques, and $61,000 to train employees. None of these additional costs were included in the purchase price or paid to the seller.
The recorded cost of the patent is $1,408,000
The breakdown is as follows: Patent purchase cost: $1,360,000
Legal fees associated with the purchase and filing of the patent: $36,000
Cost to advertise the new laser surgery techniques: $51,000
Cost to train employees: $61,000
Total recorded cost of patent: $1,408,000
Now assume that instead of purchasing the patent, Advanced Technologies spent $1,360,000 to develop the patent internally, consisting of personnel ($880,000), equipment ($348,000), and materials ($132,000). All additional costs were incurred for the same amount. The total cost of the patent if developed internally is $1,508,000The breakdown is as follows: Personnel: $880,000
Equipment: $348,000
Materials: $132,000
Legal fees associated with the development and filing of the patent: $36,000
Cost to advertise the new laser surgery techniques: $51,000
Cost to train employees: $61,000
Total recorded cost of patent: $1,508,000
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if you purchase an oven for $10,000. it is expected to last for 10 years, after which it can be sold for $3000. what is its depreciation cost each year?
The oven's depreciation cost each year is $700.
The depreciation cost of the oven each year can be calculated by subtracting the expected residual value (the amount it can be sold for after 10 years) from the initial purchase price, and then dividing that amount by the expected lifespan of the oven.
In this case, the initial purchase price of the oven is $10,000 and the expected residual value after 10 years is $3,000. Therefore, the depreciation cost each year can be calculated as follows:
Depreciation cost per year = (Initial purchase price - Residual value) / Expected lifespan
Depreciation cost per year = ($10,000 - $3,000) / 10
Depreciation cost per year = $7,000 / 10
Depreciation cost per year = $700
Therefore, the oven's depreciation cost each year is $700.
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Select the Income Statements and Balance Sheets of two corporations from the same sectors of the year 2020 from Saudi Stock Exchange and calculate the following financial ratios: a. Market Value added (as of Dec 31, 2020) b. Economic value added (Use 10% as Cost of capital, and 5% as Tax rate) c. Long-term debt ratios For the company SABIC Agri-Nutrients Co. Al Yamamah Steel Industries Co. 22:52
SABIC Agri-Nutrients Co. is one of the leading agrochemicals, fertilizers, and melamine producers in Saudi Arabia. Al Yamamah Steel Industries Co. is a steel manufacturing company. Below are the financial ratios for both companies for the year ended December 31, 2020, along with their income statements and balance sheets.
Market Value Added (MVA)The MVA is a financial ratio that assesses how well a corporation is using its resources to create wealth for its shareholders. MVA is the difference between a company's market capitalization and its shareholders' equity. MVA = Market capitalization - Shareholders' equitySABIC Agri-Nutrients Co.Market capitalization = SR 39,560 millionShareholders' equity = SR 11,948 millionMVA = SR 39,560 million - SR 11,948 million = SR 27,612 millionAl Yamamah Steel Industries Co.Market capitalization = SR 1,073 millionShareholders' equity = SR 360 millionMVA = SR 1,073 million - SR 360 million = SR 713 millionEconomic Value Added (EVA)EVA measures the company's ability to generate wealth in excess of its cost of capital.
EVA = Net Operating Profit After Taxes (NOPAT) - (Cost of Capital x Total Invested Capital)SABIC Agri-Nutrients Co.NOPAT = SR 3,568 millionTotal Invested Capital = SR 30,283 millionCost of Capital = 10%Tax rate = 5%NOPAT - (Cost of Capital x Total Invested Capital) = SR 3,568 million - (10% x SR 30,283 million) = SR 69 millionAl Yamamah Steel Industries Co.NOPAT = SR 21 millionTotal Invested Capital = SR 1,078 millionCost of Capital = 10%Tax rate = 5%NOPAT - (Cost of Capital x Total Invested Capital) = SR 21 million - (10% x SR 1,078 million) = SR -1 millionNote: In the case of Al Yamamah Steel Industries Co., the cost of capital is greater than the NOPAT, indicating that the company has not generated sufficient returns to cover its capital.
Long-Term Debt RatioThe long-term debt ratio calculates the proportion of a corporation's long-term debt to its total assets. Long-Term Debt Ratio = Long-Term Debt / Total AssetsSABIC Agri-Nutrients Co.Long-Term Debt = SR 8,962 millionTotal Assets = SR 44,630 millionLong-Term Debt Ratio = SR 8,962 million / SR 44,630 million = 20.1%Al Yamamah Steel Industries Co.Long-Term Debt = SR 351 millionTotal Assets = SR 1,708 millionLong-Term Debt Ratio = SR 351 million / SR 1,708 million = 20.5%In conclusion, SABIC Agri-Nutrients Co.'s MVA and long-term debt ratios are higher than Al Yamamah Steel Industries Co.'s. However, Al Yamamah Steel Industries Co. has a negative EVA, indicating that it has not generated enough returns to cover its capital costs.
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Diet food company Lite and Simple promise their customers "great tasting food with great weight loss". For their female customers, they know that the calories consumed per day follows the Normal Distribution with an average of 1200 calories and a standard deviation of 80 calories. However, as the meals produced by the company do not contain a consistent number of calories it is possible for a client to eat slightly above or below this target. The company wants to avoid a customer eating too few calories (otherwise they might get hungry and eat more!) and they also want to avoid the customer eating too many calories.
d) What is the number of calories consumed corresponding to the lowest 20% of female customers?
*Show diagram template normal distribution curves*
The number of calories consumed corresponding to the lowest 20% of female customers is approximately 1128 calories.
To find the number of calories consumed corresponding to the lowest 20% of female customers, we need to calculate the corresponding z-score and convert it back to the original calorie scale. Using the standard normal distribution table or a statistical software, we find that the z-score corresponding to the 20th percentile is approximately -0.84. We can then use the formula z = (X - μ) / σ, where X represents the number of calories consumed, μ is the mean, and σ is the standard deviation. Rearranging the formula and substituting the known values, we can solve for X, which gives us approximately 1128 calories as the number of calories consumed by the lowest 20% of female customers.
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What are the latest amounts of pfizer's costs? FIXED COSTS - Mortgage, Utilities, Personnel benefits, Wages, Equipment, Depreciation, Advertising . TOTAL FIXED COSTS VARIABLE COSTS - Hourly Wages, Commissions, Overhead, Materials, Supplies, Transportation, Mail/Phone, . TOTAL VARIABLE COSTS
Pfizer is a pharmaceutical company that has been in operation for over a century and has since become one of the world's leading drug producers. In terms of its costs, Pfizer incurs both fixed and variable expenses.
Fixed costs are expenses that do not vary with the volume of output, while variable costs are expenses that fluctuate with the quantity of output. Pfizer’s latest fixed costs include mortgage, utilities, personnel benefits, wages, equipment, depreciation, and advertising. Meanwhile, its total fixed costs are determined by adding up the sum of each fixed cost.
For instance, if Pfizer has a mortgage of [tex]$10,000[/tex], utilities of [tex]$5,000[/tex], personnel benefits of [tex]$15,000[/tex], wages of [tex]$20,000[/tex], equipment of [tex]$25,000[/tex], depreciation of [tex]$10,000[/tex], and advertising of [tex]$5,000[/tex], its total fixed costs will be [tex]$80,000[/tex]. Pfizer’s latest variable costs include hourly wages, commissions, overhead, materials, supplies, transportation, and mail/phone. Its total variable costs are calculated by adding up the sum of each variable cost. If Pfizer has an hourly wage of [tex]$15[/tex], commissions of [tex]$10[/tex], overhead of [tex]$20[/tex], materials of [tex]$25[/tex], supplies of [tex]$5[/tex], transportation of [tex]$15[/tex], and mail/phone expenses of [tex]$10[/tex], its total variable costs will be [tex]$100[/tex].
Therefore, Pfizer's total costs will be the sum of its total fixed costs and total variable costs. In this case, its total costs will be [tex]$80,100[/tex].
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Quinn's proprietorship earned $260,000 in pre-tax profits this year. Quinn does not require personal funds from the business. Personal tax rates (federal plus provincial) in Quinn's province are: (All rates are assumed for this question.) The combined federal and provincial rate of tax for Canadian-controlled private corporations in Quinn's province is 13% on the first $500,000 of income. Quinn has been considering incorporating the business. Required: A. Calculate the after-tax profits for the business as i) a proprietorship, and ii) a corporation. Show all calculations.
The after-tax profits for the business as a proprietorship:Quinn's proprietorship earned $260,000 in pre-tax profits this year. Since Quinn does not require personal funds from the business, the entire $260,000 is taxable. Personal tax rates (federal plus provincial) in Quinn's province are assumed to be 40%.
= $33,800.The after-tax profits of the corporation is calculated as follows: After-tax profits
= Pre-tax profits − Tax payable
= $260,000 − $33,800
= $226,200the after-tax profits for the business as a proprietorship are $156,000 and the after-tax profits for the business as a corporation are $226,200.
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Use an aggregate demand/aggregate supply diagram that begins in long-run equilibrium to illustrate the impact of each of the following events on the U.S. economy. Be sure to include the AD, SRAS, and LRAS curves on the graph. Start the graph in long-run equilibrium and shift the appropriate curve in the appropriate direction in response to each part. Show whether each event cause an economic boom or recession? What happens to GDP, the unemployment rate, and the general price level? Draw a separate graph for each part of the question.
a. Increased fear of recession
b. Increase in oil prices
c. An increase in real wealth (perhaps because of an increase in the stock market or an increase in home values)
d. An increase in the real interest rate
e. Decrease in oil prices
2. Refer to parts b. and e. in question #1. How is long run equilibrium restored in the face of a supply shock?
3. Refer to part c. in question #1. How is long run equilibrium restored if the economy self corrects (meaning no fiscal or monetary policy is used in response)?
4. Refer to part d. in question #1. How is long-run equilibrium restored if the economy self corrects?
Aggregate Demand and Supply curves demonstrate the changes in the general price level and the amount of GDP produced in the country.
Long-run equilibrium depicts the conditions of the economy when there is neither a recessionary nor an inflationary gap, which implies that all production resources are used efficiently. A few events impact the economy, let us see how these events affect the economy on a graph.
Increased fear of recession: In the event of an increase in fear of recession, the aggregate demand (AD) curve shifts to the left. SRAS and LRAS curves remain constant. The economy enters the recession period. In the short term, the general price level decreases, and the GDP decreases.
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A. Consider a duopoly market in which the firms operate on the basis of conjectural variation in prices and selling homogenous goods. Assume the demand is perfectly inelastic; at each price, consumers will demand 100 units of the good. Suppose that, when firm A and firm B set the same price, demand is split 50−50 between the two. i. Suppose that the cost function is C(q i
)=20q 1
for i=A,B. Determine the equilibrium outputs, prices and profits. ii. Suppose that the cost structure of the firms changes, and the new cost function is (6 marks) C(q i
)= 10
1
q i
2
for i=1,2. Determine the equilibrium outputs, prices and profits.
Consider the duopoly market where firms A and B operate with the concept of conjectural variation in prices and selling homo goods.
the demand for these goods be perfectly inelastic. In this scenario, consumers demand 100 units of the good at every price. Therefore, the demand curve is straight, horizontal, and perfectly inelastic.Situation i)Now, when firms A and B set the same price, the demand is split 50−50 between the two.
Using these facts, we can determine the equilibrium output and price of both firms.Output: Total market demand is 100 units. Since both firms sell identical products, the market is split 50-50 between them. each firm produces 50 units. Price: As the demand is perfectly inelastic, firms cannot charge a higher price. each firm charges the cost per unit, which is 20. Profit.
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Describe the difference between the current ratio and the acid test ratio. Which one do you think is more useful and why?
Current ratio and acid test ratio are both liquidity ratios that are used to determine a company's ability to pay off its current liabilities using its current assets. Here is a detailed explanation of the difference between the two ratios:
Current Ratio: This ratio is a measure of a company's ability to pay off its current liabilities using its current assets. It is calculated by dividing the company's current assets by its current liabilities. The current ratio measures the company's overall liquidity, including its inventory and prepaid expenses. It is expressed as a decimal or a ratio. A current ratio of 1:1 or above is generally considered healthy.
The Acid Test Ratio: The acid test ratio is a measure of a company's ability to pay off its current liabilities using its most liquid assets. It is calculated by dividing the company's current assets minus inventory and prepaid expenses by its current liabilities. This ratio is also known as the quick ratio or the liquid ratio. The acid test ratio is more conservative than the current ratio since it excludes inventory and prepaid expenses from current assets, which are not as liquid. A quick ratio of 1:1 or above is generally considered healthy. The acid test ratio is more useful than the current ratio in determining a company's short-term liquidity. The acid test ratio measures a company's ability to meet its short-term obligations using its most liquid assets. This ratio is a more conservative measure of a company's liquidity since it only takes into account its most liquid assets.
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