Answer:
Budgeted financial statements
Explanation:
A fire has destroyed a large percentage of the financial records of the Excandesco Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 14.9 percent. Sales were $1,750,000, the total debt ratio was .33, and total debt was $651,000.
What is the return on assets (ROA)? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Return on assets __%
Answer:
10%
Explanation:
For computing the return on assets we have to do the following calculations:
As we know that
Total debt ratio = Total debt ÷ Total assets
0.33 = $651,000 ÷ Total assets
So,
Total assets = $1,972,727.27
Now the total equity is
Total assets = Total debt + Total Equity
$1,972,727.27 = $651,000 + Equity
So,
Equity = $1,321,727.27
Now
ROE = Net income ÷ Equity
0.1490 = Net income ÷ $1,321,727.27
Net income = $196,937
So,
ROA = Net income ÷ Total assets
= $196,937 ÷ $1,972,727.27
= 9.98%
= 10%
If government regulations force employers to provide dental insurance, then there is a movement up the:________.
1. AS curve as price level increased.
2. AS shifts right and price level would decrease.
3. AS shifts right and price level would increase.
4. AS shifts left and price level would decrease.
5. AS shifts left and price level would increase.
Answer:
The correct answer is the option 3: AS shifts right and price level would increase.
Explanation:
To begin with, the Aggregate Supply Curve is the total amount of goods and services that the suppliers are willing and able to offer at a certain price level given and at a certain period of time. If the costs of the sellers increases then that would mean that they would try to obtain more profits so that would implicate in an increase in the amount of quantity offered by them. So that means that the aggregate supply curve would shift to the right and the price level would increase as the sellers would try to earn more profits so that they could cover all the new costs given by the government.
Imagine you are writing a classroom management program. In which of the following scenarios will dynamic data structures approach make your program more efficient? Group of answer choices
a. A classroom with a MAX of 24 students, being assigned 24 students.
b. A classroom with a MAX of 24 students, being assigned 15 students.
c. A school building with a MAX of 50 classrooms being assigned 30 classes.
d. A school building with a MAX of 50 classrooms being assigned 50 classes both
e. Both b and c
Answer: e. . Both b and c
Explanation:
When using a Dynamic Data Structure, the structure in place is not fixed but rather has an allowance for growth or shrinkage. The capacity has an allowance to take more data or less data as it is operated on.
When using the Dynamic data structure approach for the classroom management program therefore, there must be an allowance for an increase in students. This is why options B and C are correct because the classroom has more capacity than students and the school has more classroom capacity than classrooms utilized respectively.
How can a firm pursuing a diversification strategy enhance its overall corporate performance by leveraging financial economies?
Available options are:
A. by using internal capital markets as a source of value creation
B. by adding more unrelated businesses into its corporate portfolio
C. by increasing its coordination and influence costs
D. by investing in businesses under the question mark quadrant of the BCG matrix
Answer:
Option A. By using internal capital markets as a source of value creation
Explanation:
The internal capital market is a mechanism of allocation of funds of an organization to its various projects that meets its desired return criteria and is in-accordance with their mission statement.
Option A is correct because the The reason is that if the organization is investing in the projects that will generate greater value by using its funds then it will increase the corporate performance.
Option B is incorrect because investing in unrelated business decreases the risk level associated with the corporate operations and is serious trouble for the company if it doesn't have any prior experience of the unrelated business.
Option C is incorrect because cordination might not bring value to corporations as there are many examples of mismanagement and collapse of corporations in the past.
Option D is also incorrect because almost one third of new businesses collapse every year. The investment in question mark is thus a very risky option and can effect the company by significant losses.
Sharon Corporation redeems 20 shares of Kevin's common stock. Kevin directly owned 50 shares prior to the redemption. Kevin is also a 50% partner in AMI Partnership which also holds 50 shares of Sharon. How many shares is Kevin treated as owning prior to the redemption
Answer:
75 shares
Explanation:
In this specific scenario, it seems that Kevin is treated to 75 shares prior to the redemption. This is calculated by adding the 50 shares that Kevin holds directly prior to the redemption itself as well as the 25 extra shares that are held by AMI. These 25 shares are 50% of the total 50 shares that AMI holds since Kevin is a 50% partner.
For each separate company, compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Twix Dots Skor Net income $4,000 $100,000 $72,000 Depreciation expense 30,000 8,000 24,000 Accounts receivable increase (decrease) 40,000 20,000 (4,000 ) Inventory increase (decrease) (20,000 ) (10,000 ) 10,000 Accounts payable increase (decrease) 24,000 (22,000 ) 14,000 Accrued liabilities increase (decrease) (44,000 ) 12,000 (8,000 )
Answer:
Net cash flow from operating activities for Twix $34,000, Dots=$108,800, Skot = $108,000
Explanation:
Twix$ Dots$ Skot$
Net income 4,000 100,000 72,000
Adjustments to reconcile net income
to net cash provided by operations
Depreciation expense 30,000 8,000 24,000
Account receivable increase (decrease) 40,000 20000 -4,000
Inventory increase (decrease) -20,000 -10,000 10,000
Account payable increase (decrease) 24,000 -22,000 14.000
Accrued liabilities increase (decrease) -44,000 12,000 -8,000
Net cash flow from operating activities $34,000 $108,800 $108,000
An investment of $110 comma 000110,000 was made by a business club. The investment was split into three parts and lasted for one year. The first part of the investment earned 8% interest, the second 6%, and the third 9%. Total interest from the investments was $ 8280.$8280. The interest from the first investment was 22 times the interest from the second. Find the amounts of the three parts of the investment.
Answer:
X = amount invested in 8% interest = $54000
Y =amount invested in 6% interest = $36000
Z = amount invested in 9% interest = $20000
Explanation:
Given that:
The amount of investment = $110,000
The investment was split into three parts and lasted for one year.
The first part of the investment earned 8% interest
The Second part of the investment earned 6% interest
The third part of the investment earned 9% interest
Total interest from the investments was $ 8280.
The interest from the first investment was 2 times the interest from the second.
The objective is to find the amounts of the three parts of the investment.
Let XYZ be the first,second and third part of the investment earned respectively.
So; we can say :
X + Y + Z = 110000 --------- (1)
From the total amount of interest from the investment; we have :
[tex]X(\dfrac{8}{100}) + Y (\dfrac{6}{100}) + Z( \dfrac{9}{100}) = 8280[/tex]
0.08 X + 0.06 Y + 0.09 Z = 8280 -------- (2)
Similarly; let's not forget that the interest from the first investment was 2 times the interest from the second investment.
So;
0.08 X = 2(0.06 )Y
0.08 X = 0.12 Y
0.08 X - 0.12 Y = 0 ------------ (3)
From equation (3); let make X, the subject of the formula; by doing so, we have:
0.08 X - 0.12 Y = 0
0.08 X = 0.12 Y
[tex]X = (\dfrac{0.12 }{0.08})Y[/tex]
X = 1.5Y
Replace the value of X into equation (1), we have :
X + Y + Z = 110000 --------- (1)
1.5Y + Y + Z = 110000
2.5Y + Z = 110000 ------- (4)
Replace the value of X = 1.5Y into equation (2), we have :
0.08 X + 0.06 Y + 0.09 Z = 8280 -------- (2)
0.08(1.5 Y) + 0.06 Y + 0.09 Z = 8280
0.12 Y + 0.06 Y +0.09 Z = 8280
0.18 Y + 0.09 Z = 8280 ----- (5)
By Elimination method; we can determine the value of Y from equation 4 and 5 as follows:
Let's multiply Z by (0.09) in equation (4);
2.5Y + Z = 110000
-
0.18 Y + 0.09 Z = 8280
So;
0.225Y + 0.09Z = 9900
-
0.18 Y + 0.09 Z = 8280
0.045 Y + 0 = 1620
0.045 Y = 1620
Y = 1620/0.045
Y = 36000
From;
X = 1.5Y
X = 1.5 ( 36000)
X = 54000
From equation (1)
X + Y + Z = 110000 --------- (1)
54000 + 36000 + Z = 110000
Z = 110000 - 54000 - 36000
Z = 20000
Hence;
X = amount invested in 8% interest = $54000
Y =amount invested in 6% interest = $36000
Z = amount invested in 9% interest = $20000
Jaxson Corporation has the following data related to direct labor costs for September: actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800 hours at $15.50 per hour. What is the direct labor time variance?
Answer:
Direct labor time (efficiency) variance= $9,300 favorable
Explanation:
Giving the following information:
actual costs are 10,200 hours at $15.75 per hour.
standard costs are 10,800 hours at $15.50 per hour.
To calculate the direct labor time (efficiency) variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (10,800 - 10,200)*15.5
Direct labor time (efficiency) variance= $9,300 favorable
A stock has a beta of 1.12, the expected return on the market is 10 percent, and the risk-free rate is 3 percent. What must the expected return on this stock be
Answer:
The expected return on this stock will be 10.84 %.
Explanation:
The return that is expected from this stock is the cost to the company. The equity cost of the company can the calculated using the Capital Asset Pricing Model.
The Capital Asset Pricing Model calculate the expected return on an equity stock by adding a market premium on the return that is provided by the government bond or risk free stock.
Cost of Equity Stock = Risk Free Rate + Company`s Beta × Risk Premium
= 0.03 + 1.12 × (0.10 - 0.03)
= 0.1084 or 10.84 %
Conclusion :
The expected return on this stock will be 10.84 %.
You have a portfolio that is equally invested in Stock F with a beta of .94, Stock G with a beta of 1.36, and the market. What is the beta of your portfolio
Answer:
Beta protfolio= 1.15
Explanation:
Giving the following information:
Stock F:
Beta= 0.94
Stock G:
Beta= 1.36
To calculate the beta of the portfolio, we need to use the following formula:
Beta protfolio= (proportion of investment A*beta A) + (proportion of investment B*beta B)
Beta protfolio= (0.5*0.94) + (0.5*1.36)
Beta protfolio= 1.15
A customer owns 100 shares of ABC stock and owns 1 ABC Put option. The customer wishes to sell the stock by exercising the put, but wishes to retain a recently declared cash dividend. The first date that the customer can exercise the put and still retain the dividend is:
Answer:
July 15th
Explanation:
Hope this helps :)
Which of the following is not an important element of the political/legal segment of the general environment?
a) tort reform
b) genetic engineering
c) Americans with Disabilities Act (ADA)
d) deregulation of utilities and other industries
Answer: genetic engineering
Explanation:
Tort reform has to do with the ideas that are out in place so as to change laws regarding civil justice system in order for tort litigation to be decreased.
Americans with Disabilities Act was put in place to ensure that people that have disabilities are not discriminated. Also, deregulation is used to increase competition which will lead to greater efficiency, lower costs and also lower prices for good and services. All the above are political/legal segment of the general environment.
Genetic engineering simply means using biotechnology to manipulate the gene of an of an organism. This is not part of the legal or political segment.
An aging of a company's accounts receivable indicates that $3140 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $820 debit balance, the adjustment to record bad debts for the period will require a:__________
a. debit to Bad Debt Expense for $3140.
b. credit to Allowance for Doubtful Accounts for $820.
c. debit to Bad Debt Expense for $3960.
d. debit to Bad Debt Expense for $2320.
Answer:
c. debit to Bad Debt Expense for $3960.
Explanation:
The journal entry to record the bad debt expense is shown below;
Bad debt expense Dr ($3,140 + $820) $3,960
To Allowance for doubtful debts $3,960
(Being the bad debt expense is recorded)
For recording this we debited the bad debt expense as it increased the expenses and credited the allowance for doubtful debts as it decreased the assets
Therefore option c is correct
If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development? What conditions would encourage research and development in competitive industries?
Answer:
1. In a Perfectly Competitive Market firms will always copy the products of other firms to make profit which will drive down the Profitability of the original firm. If firms in a Perfect Competition engage in Research and Development for new products and Technology, they would be incurring a massive expense on their part because such undertakings are not cheap. Were they to succeed and come up with a new product, that Product would be copied within a short period of time by their competitors who did not put up the amount of Investment that the original company did. This is what firms in Perfectly Competitive Markets are trying to avoid.
b. Government Intervention in the form of enforcing Patents, Copyright Protection and Intellectual Property will be needed. If firms can be sure that when they come with a new product, their rights to it will be protected in such a way that they make enough returns from it, they will engage in these R&D endeavors to be able to have an edge over their competitors in the market.
Planning and Writing Persuasive Requests In a business environment, persuasion is critical to success. Persuasion is necessary when you anticipate resistance or when you are making more than routine demands. Which of the following are elements of effective persuasion? Check all that apply. A. Involves coercion or trickery B. Deceives and fabricates evidence C. Explains logically and concisely the purpose of the request D. Establishes credibility E. Proves the merits of your proposal Fill in the blank with the most appropriate answer. In persuasive requests, the reasons and explanations usually (precede, follow, replace) the request.
Answer:
All of these alternatives are correct:
C. Explains logically and concisely the purpose of the request
D. Establishes credibility.
E. Proves the merits of your proposal
Explanation:
A persuasive request in a work environment can often occur, as this is a communication technique used when you want to convey a message in order to convince others to take specific actions.
Knowing how to develop a persuasive speech is essential for an effective leader, who can influence his subordinates through communication that retains attention, reduces resistance, creates interest and motivation.
For a persuasive message to be effective it must be developed through polite and professional writing, whose objectives are explicit and the reasons for the request are logical and demonstrate credibility. It is necessary to add to the persuasive message elements that justify the proposal and generate feelings of identification, emotion and reason, to create interest and to be able to persuade the audience and achieve the objectives.
Sony has a better opportunity to reach the potential Millennial market segment, compared to unestablished manufacturers, because of its:_______
Answer:
full spectrum of product offerings
Explanation:
Sony has always been striving to serve its customer better. Millennial are the top brands that are considered in market. They are the organizations which capture major market share and are massive market segment. Sony has offered wide range of products to its customers.
Kaspar and Ludger, two unrelated calendar year corporations, have the following transactions for 2019: Kaspar Corporation Ludger Corporation Gross income from operations $180,000 $300,000 Expenses from operations $255,000 $310,000 Dividends received from domestic corporations (15% ownership) $100,000 $230,000 Taxable income before the dividends received deduction $25,000 $220,000
Determine the dividends received deduction for both companies.
Answer:
The dividends received deduction for Kaspar Corporation is $70,000, while the dividends received deduction for Ludger Corporation is $230,000.
Explanation:
Note that the data in the question are merged together but they are first sorted in the attached excel file before answering the question as follows:
The dividends received deduction refers a federal tax deduction that are enjoyed in the U.S. by some corporations that receives dividends from related entities.
Based on the general rule for dividends received deduction, if the ownership by the company receiving the dividend in the company paying the dividend is less than 20%, the dividends received deduction is the 70% of the dividend received.
Since both Kaspar and Ludger have just 15% ownership which is less than 20% in domestic corporation from which they received dividends, their dividends received deduction can therefore be determined using the following formula:
Dividend received deduction = Dividend received * 70% .............. (1)
Using equation (1), we have:
Kaspar's dividend received deduction = $100,000 * 70% = $70,000
Ludger's dividend received deduction = $230,000 * 70% = $161,000
Therefore, the dividends received deduction for Kaspar Corporation is $70,000, while the dividends received deduction for Ludger Corporation is $230,000.
Suppose Alex owns a business making quilts that generates $7,000 a month in revenue. Each month, Alex spends $1,500 on fabric and other sewing materials, and he pays his two employees a combined total of $4,000 per month (they each earn $2,000). Alex makes his quilts in a workshop he has set up in his basement. If Alex did not own the quilt business, he would work as a yoga instructor earning $2,300 per month, and he would use the basement as a TV room, an option he would value at $40 per month. a. What is Alex's accounting profit
Answer:
Alex's accounting profit is calculated as follows:
Revenue from quilts = $7,000
Materials costs (1,500)
Labor costs (4,000)
Accounting profit $1,500
Explanation:
Alex's accounting profit is different from the profit when calculated from the economist's point of view. The economist would include the opportunity costs of lost earnings as a yoga instructor of $2,300 per month and the monthly rental value of $40 for the TV room in the monthly cost. These are not considered in arriving at the accounting profit. Accounting profit does not include opportunity costs. It only includes the actual costs of goods sold or produced. And it is not the costs that were paid for in cash that accounting profit considers. All related costs whether paid for in cash or not, provided they are incurred in generating the revenue are included in accordance with the accrual concept and the matching principle of generally accepted accounting principles.
Band Box Entertainment (BBE) operates a large store in Atlanta, Georgia.
The store has both a movie (DVD) section and a music (CD) section.
BBE reports revenues for the movie section separately from the music section.
Required:
Classify the following Costs that are found in the Merchandising sector.
Cost Direct/ Indirect Variable / Fixed
A. Annual retainer paid to a video distributor
B. Cost of store manager's salary
C. Costs of DVDs purchased for sale to customers
D. Subscription to DVD Trends magazine
E. Leasing of computer software used for financial budgeting at the BBE store
F. Cost of popcorn provided free to all customers of the BBE store
G. Cost of cleaning the store every night after closing
H. Freight costs of DVDs purchased by BBE
Answer:
Direct Costs are those costs that are directly linked to the production of a good or service.
Indirect Costs are not directly related but help facilitate the production of a good.
Fixed Costs are constant throughout the production life of a good.
Variable Costs change per quantity of goods Produced.
A. Annual retainer paid to a video distributor.
DIRECT and FIXED cost.
Video distributors are directly related to the amount of DVDs that will be sold. The amount is also a constant one so it is Fixed.
B. Cost of store manager's salary.
INDIRECT and FIXED Cost.
The manager is not directly related to the buying or selling of DVDs and CDs but is a constant cost that does not change by production.
C. Costs of DVDs purchased for sale to customers.
VARIABLE and DIRECT cost.
The cost of DVDs sold will have a direct impact on the sale of said DVDs because it can determine their price. It also changes as DVD numbers change.
D. Subscription to DVD Trends magazine.
DIRECT and FIXED cost.
Subscriptions enable the store know what to get meaning it is directly related to the DVDs. It will also be a fixed amount that does not change as more DVDs are bought.
E. Leasing of computer software used for financial budgeting at the BBE store.
INDIRECT and FIXED costs.
The computer software is not directly related to the sale or procurement of the DVDs. It is also a fixed amount as it is a lease that will not change regardless of how many DVDs are bought or sold.
F. Cost of popcorn provided free to all customers of the BBE store.
INDIRECT and VARIABLE.
These costs are not directly related to the DVDs being sold. Also they change per customer that comes in so they are Variable as well.
G. Cost of cleaning the store every night after closing.
INDIRECT and FIXED.
Costs again are not directly related to the DVDs and CDs. They are however fixed as they do not change per units sold.
H. Freight costs of DVDs purchased by BBE.
DIRECT and VARIABLE.
Freight Costs to ship DVDs is a cost that can be directly associated with selling the DVDs because they determine how the DVDs will be delivered. They are variable because they depend on the number of DVDs sold.
Item 35Item 35 You expect to receive $4,100 upon your graduation and will invest your windfall at an interest rate of 0.63 percent per quarter until the account is worth $5,500. How many years do you have to wait until you reach your target account value
Answer:
It will take 11.7 years to reach the objective
Explanation:
Giving the following information:
PV= $4,100
FV= $5,500
i= 0.0063
n= ?
To calculate the time required to reach the future value, we need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(5,500/4,100) / ln(1.0063)
n= 46.78
in years= 46.78/4= 11.70
It will take 11.7 years to reach the objective
A company had average total assets of $932,000. Its gross sales were $1,097,000 and its net sales were $965,000. The company's total asset turnover equals:
Answer:
Total asset turnover is 1.035.
Explanation:
The total assets that the company had = $932000
Gross sales = $1097000
Net sales = $965000
The total asset turnover can be determined by dividing the net sales with average total assets. Here, the average total assets are $932000 and net sales is $965,000.
Total asset turnover = net sales / average total assets
= 965000 / 932000
=1.035
Identify the following questions as most likely to be asked by an internal or an external user of accounting information
1. What are reasonable payroll benefits and wages?
2. Should we make a five-year loan to that business?
3. What are the costs of our product's ingredients?
4. Do income levels justify the current stock price?
5. Should we spend additional money for redesign of our product?
6. Which firm reports the highest sales and income?
7. What are the costs of our service to customers?
Answer:
The answer is:
1. - Internal user of accounting information(management)
2. External user of accounting information(banks)
3. Internal user of accounting information(management)
4. External user of accounting information(potential investors)
5. Internal user of accounting information(management)
6. External user of accounting information
7. Internal user of accounting information(management)
Explanation:
Internal users of accounting information are people within a organization who use the accounting information for decision making. Examples of are the management and employees. External users are people that are not within the organization. Examples are government, the public, banks, potential investors etc
1. - Internal user of accounting information(management)
2. External user of accounting information(banks)
3. Internal user of accounting information(management)
4. External user of accounting information(potential investors)
5. Internal user of accounting information(management)
6. External user of accounting information
7. Internal user of accounting information(management)
Splish Brothers Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Sunland Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement:_________.
1. Sunland has the option to purchase the equipment for $24,000 upon termination of the lease. It is not reasonably certain that Sunland will exercise this option.
2. The equipment has a cost of $280,000 and fair value of $330,500 to Splish Brothers Leasing. The useful economic life is 2 years, with a residual value of $24,000.
3. Splish Brothers Leasing desires to earn a return of 5% on its investment.
4. Collectibility of the payments by Splish Brothers Leasing is probable.
Prepare the journal entries on the books of Splish Brothers Leasing to reflect the payments received under the lease and to recognize income for the years 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places e.g. 5,275.)
Answer:
Journal entries
Date Account title Debit Credit
01-01-2017 Lease Receivable(Fair Value) $3,30,500.00
COGS(280000-21769) $2,58,231.00
Sales Revenue(330500-21769) $3,08,731.00
Equipment(Cost) $2,80,000.00
(Inception of lease)
12/31/2017 Cash $1,66,037.00
Lease Receivable $1,49,512.00
Interest income $16,525.00
(1st instalment recd.)(as per table)
12/31/2018 Cash $1,66,037.00
Lease Receivable $1,56,988.00
Interest income $9,049.00
( 2nd & Last instalment recd.)(as per table)
If Sunland exercises the option to purchase:
12/31/2018 Cash $24,000.00
Lease Receivable $24,000.00
Lease Receivable amortisation schedule:
Year Annuity Tow. Int. at 5% Tow. Lease Lease balance
0 $3,30,500.00
1 $1,66,037.00 $16,525.00 $1,49,512.00 $1,80,988.00
2 $1,66,037.00 $9,049.00 $1,56,988.00 $24,000.00
(Residual value)
If purchased $24,000.00 0
Working Note-1
PV of lease payments= Fair value of the equipment= $3,30,500.00
PV of residual value $21,769.00
So,amt.to be recovered thro' 2 end-of-yr. lease payments $3,08,731.00
Using the PV of ordinary annuity formula as under:
308731=Pmt.*(1-1.05^-2)/0.05
Pmt.=308731/((1-1.05^-2)/0.05)= $166037
Explanation:
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $ 1 comma 000, and a coupon rate of 7.7 % (annual payments). The yield to maturity on this bond when it was issued was 6.3 %. What was the price of this bond when it was issued? When it was issued, the price of the bond was $ nothing. (Round to the nearest cent.)
Answer:
The price of the bond when it was issued was $1101.59
Explanation:
To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms.
Coupon Payment (C) = 1000 * 0.077 = $77
Total periods (n)= 10
r = 6.3%
The formula to calculate the price of the bonds today is attached.
Bond Price = 77 * [( 1 - (1+0.063)^-10) / 0.063] + 1000 / (1+0.063)^10
Bond Price = $1101.592357 rounded off to $1101.59
The price of the bond when it was issued was $1101.59
The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.
Rina spends all of her money on comic books and beignets. In 2011 she earned $14.00 per hour, the price of a comic book was $7.00, and the price of a beignet was $2.00.
Which of the following give the nominal value of a variable?
A) Rina's wage is 2 comic books per hour in 2011.
B) The price of a beignet is $2.00 in 2011.
C) Rina's wage is $14.00 per hour in 2011.
Answer: B) The price of a beignet is $2.00 in 2011.
C) Rina's wage is $14.00 per hour in 2011
Explanation:
A Nominal Value is an expression of a Variable in terms of it's monetary value in a various years.
When something is expressed by it's monetary value in a certain year therefore, this is the nominal value of the variable.
The price of a beignet in 2011 is therefore an example of a Nominal Value as it is the monetary value in 2011.
In the same vein, Rina's wage per hour in 2011 expressed in monetary terms of $14.00 is also a nominal value.
The learning curve is:_______
a. Really no different from a marginal cost curve.
b. Calculates average cost at a particular point in time.
c. Shows the decrease in unit cost as more of the same product is produced over time.
d. None of the above.
Answer:
Option C, Shows the decrease in unit cost as more of the same product is produced over time, is the right answer.
Explanation:
Option C is the correct answer because the learning curve shows the relationship between the cost of the production and output over the time period. Moreover, this curve shows the cost savings when more output is produced over time. The same can be seen in option C that the cost decreases when output rises which means there is a cost-saving.
You need to borrow money and you are considering two loans. The terms of the two loans are equivalent with the exception of the interest rates. Loan A offers a stated rate of 3.125% compounded monthly. Loan B offers a stated rate of 3.15% compounded semi-annually. What are the effective annual rates for the loans? Which one do you prefer
Answer:
For Loan A = 3.170%
For Loan B = 3.174%
Loan B has a higher effective annual rate.
Explanation:
The computation of effective annual rates for the loans is shown below:-
For Loan A
We will assume effective annual rate is a
Stated rate(r) = 3.125% compounded monthly
= Number of periods in an year n = 12
So,
(1 + a) = (1 + r ÷ n) × n
= a = (1+0.03125 ÷ 12) × 12 - 1
= 0.03170
or
= 3.170%
For Loan B
We will assume the effective annual rate is b
Stated rate (r) = 3.15% compounded semi annually
= Number of periods in an year n = 2
So
(1 + a) = (1 + r ÷ n) × n
= a = (1 + 0.0315 ÷ 2) × 2 - 1
= 0.03174
or
= 3.174%
From the above calculation we can see that Loan B, is greater than Loan A and has a higher effective annual rate.
Pledging receivables: A) Allows firms to raise cash. B) Allows a firm to retain ownership of its receivables. C) Does not transfer risk of bad debts to the lender. D) Should be disclosed in the financial statements. E) All of the above
Answer:
E
Explanation:
Pledging receivables is when the receivables are used as collateral during a financial arrangement. When a business uses it's business assets as collateral to gain a loan.
All the options in the question constitutes what pledging receivables consists. Therefore option E is the right answer.
The journal entry to record the transfer of partially completed work in process to the next process in process costing is a(n):
Answer:
Explanation:
The Journal Entry in these types of situations is done as Debit Work in Process-department #2 and credit Work in Process-department #1. Since it is being transferred from one to the other meaning the first department is losing the completed work (credit) while the second department is gaining the completed work (debit)
Prepare the Budgets given the following information Budgeted sales are expected to be: January 200 Units February 300 Units March 400 Units April 300 Units May 400 Units Selling Price $10 Per unit A. Prepare the sales Budget (5 points) Sales Budget January February March Quarter Budgeted sales in units 200 300 400 900 Times selling price per unit $10 $10 $10 $10 Budgeted sells in dollars $2,000 $3,000 $4,000 $9,000 B. Prepare the Production Budget (5 points)
Answer:
Sales Budget
January February March April May
Units Sold 200 300 400 300 400
Price per unit $10 $ 10 $ 10 $ 10 $ 10
Sales Rev $ 2.000 $ 3.000 $ 4.000 $ 3.000 $ 4.000
Explanation:
We have to multiplithe amount of units sold each month by the sales price per unit of each month.
For the second question, which is the production budget we require the beginning inventory at Jan 1st and the desired inventory policy else, we cannot complete it. Please add this as details for the question Thank you =)