Answer:
The Skulls
The location that Skulls should select is:
Alpha Avenue.
Explanation:
a) Data and Calculations:
Estimated number of persons living in this new chapter house = 30
Fixed Variable Total Cost
Alpha Ave. $5,000 $200 per person $11,000
Beta Blvd. $8,000 $150 per person $12,500
b) The location that Skulls should select must minimize the total cost. The location which meets this criterion is Alpha Avenue, with a total cost of $11,000. This is purely because of the number of persons living in the chapter house. Assuming that this number would increase, then it may be considered economically better to choose the Beta Boulevard instead of the Alpha Avenue.
Megasoft Corporation develops, produces, and markets a wide range of computer software including the Windows operating system. Megasoft reported the following information about Net Sales Revenue and Accounts Receivable (all amounts in millions).June 30, 2016 June 30, 2015Accounts Receivable, Net of Allowance for Doubtful Accounts of $310 and $360 $ 16,950 $ 15,700Net Revenues 68,000 62,000According to its Form 10-K, Megasoft recorded Bad Debt Expense of $22 and did not recover any previously written-off accounts during the year ended June 30, 2016.Required:What amount of accounts receivable was written off during the year ended June 30, 2016? (Enter your answer in millions.)What was Megasoft’s receivables turnover ratio in 2016? (Round your answer to 1 decimal place.)
Answer:
Megasoft Corporation
1. The amount of accounts receivable that was written off during the year ended June 30, 2016 was:
= $72 million
2. Receivable Turnover Ratio in 2016
= 2016 Net Sales/Average receivables
= $68,000/$16,660 = 4.1
Explanation:
a) Data and Calculations:
June 30, 2016 June 30, 2015
Net Sales Revenue $68,000 $62,000
Accounts Receivable
(all amounts in millions) $17,260 $16,060
Allowance for
Doubtful Accounts of 310 360
Net Accounts receivable $ 16,950 $ 15,700
Bad Debts Expense = $22
Allowance for Doubtful Accounts
Date Account Titles Debit Credit
June 30, 2015 Beginning balance $310
2016 Bad Debts Expense 22
2016 Accounts receivable 72
June 30, 2016 Ending balance $360
Accounts Receivable
Date Account Titles Debit Credit
June 30, 2015 Beginning balance $16,060
2016 Net sales 68,000
2016 Allowance for Doubtful $72
2016 Cash 66,728
June 30, 2016 Ending balance $17,260
Average receivables = $16,660 ($16,060 + $17,260)/2
Receivable Turnover Ratio in 2016
= 2016 Net Sales/Average receivables
= $68,000/$16,660 = 4.1
Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively. Determine their participation in the year's net income of $104,000 under each of the following independent assumptions. No agreement concerning division of net income. Divided in the ratio of original capital investment. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. Salary allowances of $36,000 and $45,000, respectively, and the balance divided equally. Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $45,000, respectively, and the remainder divided equally.
Hawes Albright
(a) $ $
(b) $ $
(c) $ $
(d) $ $
(e) $ $
Answer:
No agreement concerning division of net income.
Hawes = $52,000
Albright = $52,000
Divided in the ratio of original capital investment.
Hawes = (210/280) x $104,000 = $78,000
Albright = (70/280) x $104,000 = $26,000
Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3.
Hawes = ($210,000 x 5%) + $36,000 = $46,500
Albright = ($70,000 x 5%) + $54,000 = $57,500
Salary allowances of $36,000 and $45,000, respectively, and the balance divided equally.
Hawes = $36,000 + $11,500 = $47,500
Albright = $45,000 + $11,500 = $56,500
Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $45,000, respectively, and the remainder divided equally.
Hawes = ($210,000 x 5%) + $36,000 + $4,500 = $51,000
Albright = ($70,000 x 5%) + $45,000 + $4,500 = $53,000
express 75 kobo as a decimal of 1 naira 50 kobo
How are wages for a particular job determined?
by the federal Wage and Hour Department
by the amount of inflation in the economy
by the equilibrium between supply and demand for workers
by advertisements in the newspaper or online
Answer:
by the equilibrium between supply and demand for workers
Explanation:
Wages are the amount to pay workers for a particular job when employed. Therefore, determining the wages for a particular job is mostly dependent "on the equilibrium between supply and demand for workers, " and sometimes location.
This is because the higher the number of workers available, the lesser the employers would be willing to increase the wage level of employees given the fact that they can easily find another employee. However, where there is a lesser number of employees for a particular job, the employers would be willing to increase the employees' wages to entice them.
According to the labor market equilibrium, The wages for a particular job are determined by the equilibrium between supply and demand for workers. Thus, the correct answer is option (c).
The term "labor market," sometimes referred to as the "job market," describes the supply and demand for labor, with employers meeting the demand and employees meeting the supply.
The supply and demand of labor, which are met by employees and employers respectively, are referred to as the labor market.Both macroeconomic and microeconomic perspectives on the labor market are important because they provide useful information on employment and the state of the economy as a whole.Two crucial macroeconomic indicators are labor productivity rates and unemployment rates.Therefore, The wages for a particular job are determined by the equilibrium between supply and demand for workers. Thus, the correct answer is option (c).
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What conditions make a market perfectly competitive? A market is perfectly competitive if A. it has many buyers and one firm, which produces a product with no close substitutes, with barriers to new firms entering the market. B. it has many buyers and a few sellers, all of whom are selling differentiated products, with no barriers to new firms entering the market. C. it has many buyers and a few sellers, all of whom are selling identical products, with barriers to new firms entering the market. D. it has many buyers and many sellers, all of whom are selling identical products, with no barriers to new firms entering the market. E. it has many buyers and many sellers, all of whom are selling differentiated products, with no barriers to new firms entering the market.
Answer:
E. It has many buyers and many sellers , all of whom are selling differentiated products , with no barriers to new firms entering the market.
Explanation:
A perfect market is a market where there are large number of buyers such that all participants are price takers hence cannot influence the price of commodities sold in such market.
In a perfect market, there are no barriers to entry and exit. This also means that new firms can enter the market. Here, the buyers are free to buy from any person and the sellers are free to sell to anyone. Differentiated products are also sold there.
The US Government is forecasting that the nominal risk-free rate of return on Treasury Notes maturing in 7 years is 2.5% and is expected to be constant for the foreseeable future. Apple Computer's Treasury department is considering issuing a 7 year corporate bond and they know that Apple's corporate bonds generally yield investors 100 basis points or 1% over the nominal risk free rate at the time of issuance. The bonds will be issued at par value. What is the coupon percentage and total yield expected on these new 7 year bonds?
a. 3.5%
b. 10%
c. 2.5
d. Cannot determine
Answer:
a. 3.5%
Explanation:
If the nominal interest rate of the Treasury bonds is 2.5%, and Apple's corporate bonds yield 1%, just add 2.5% + 1% = 3.5%.
when you are talking about bonds, 100 points = 1%. This many times confuses people that are not aware of this since you hear that a bond will pay 50 points more and you imagine a really high interest rate.
Answer:
A
Explanation:
Six Sigma programs: Group of answer choices suggest that all activities can be controlled, employee empowerment is the best control tool, and 100 percent control is possible. consist of a disciplined, statistics-based system aimed at producing not more than 2.5 defects per million iterations for a manufacturing or assembly process. All of these. are based on three principles: (1) all work is a statistically controllable process; (2) no well-controlled process allows variability; and (3) defect-free work requires tight statistical controls. utilize advanced statistical methods to improve quality by reducing defects and variability in the performance of business processes.
Answer: utilize advanced statistical methods to improve quality by reducing defects and variability in the performance of business processes.
Explanation:
Six Sigma simply refers to a set of tools that are utilized for the process improvement. They are the management techniques that are used for the enhancement of the business processes through the reduction in the occurence of an error. This helps in boosting the performance and the improvement in the company's profits, and as well boosting the morale of employees.
From the options given, the answer is that six sigma programs "utilize advanced statistical methods to improve quality by reducing defects and variability in the performance of business processes".
Which research information could best help a marketer decide whether to
discontinue a product line?
A. Results of an experiment showing the combination of price and
features that consumers most often select
B. Observation results showing the path consumers take through a
store
C. Survey results indicating that the product no longer meets a
customer need
D. Survey results showing that what consumers value most is
reliability
Answer: survey results indicating that the product no longer meets a customer need
Explanation:
The research information that could best help a marketer decide whether to discontinue a product line is: Survey results indicating that the product no longer meets a customer need. Thus option (C) is correct.
What is an information?An information refers to something that has the power to inform. At the most fundamental level information pertains to the interpretation of that which may be sensed.
The digital signals and other data use discrete signs or alogrithms to convey information, other phenomena and artifacts such as analog signals, poems, pictures, music or other sounds, and the electrical currents convey information in a more continuous form.
Information is not knowledge itself, but its interpretation is important. An Information can be in a raw form or in an structured form as data. The information available through a collection of data may be derived by analysis by expert analysts in their domain.
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Crowl Corporation is investigating automating a process by purchasing a machine for $972,000 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $132,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $21,000. The annual depreciation on the new machine would be $108,000. The simple rate of return on the investment is closest to (Ignore income taxes.): (Hint: Give answer in decimal format. For example, if an answer is 10%, use the format 0.10 not 10%.)
Answer:
2.5%
Explanation:
Calculation to determine what The simple rate of return on the investment is closest to
First step is to calculate the Annual incremental net operating income
Annual incremental net operating income=$132,000-$108,000
Annual incremental net operating income=$24,000
Second step is to calculate the Initial investment
Initial investment =$972,000-$21,000
Initial investment=$951,000
Now let calculate the Simple rate of return using this formula
Simple rate of return = Annual incremental net operating income ÷ Initial investment
Let plug in the formula
Simple rate of return= $24,000 ÷ $951,000
Simple rate of return=0.025*100
Simple rate of return= 2.5%
Therefore The simple rate of return on the investment is closest to 2.5%
Mazzeo Co. provided the following information on selected transactions during 2017: Purchase of land by issuing bonds $650,000 Proceeds from issuing stock 520,000 Purchases of inventory 950,000 Purchases of treasury stock 350,000 Loans made to affiliated corporations 175,000 Dividends paid to preferred stockholders 100,000 Proceeds from issuing preferred stock 210,000 Proceeds from sale of land 325,000 The net cash provided (used) by investing activities during 2017 is
Answer:
$150,000
Explanation:
Calculation to determine what The net cash provided (used) by investing activities during 2017 is
Using this formula
The net cash provided (used) by investing activities during 2017 =Proceeds from sale of land -Loans made to affiliated corporations,
Let plug in the formula
The net cash provided (used) by investing activities during 2017=$325,000-$175,000
The net cash provided (used) by investing activities during 2017= $150,000
Therefore The net cash provided (used) by investing activities during 2017 is $150,000
On December 31, 2017, Extreme Fitness has adjusted balances of $980,000 in Accounts Receivable and $91,000 in Allowance for Doubtful Accounts. On January 2, 2018, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $28,000. What amount would the company report as its net accounts receivable on December 31, 2017
Answer:
Account receivable = $889,000
Explanation:
The company would record as net receivables, the total amount on accounts receivable less total amount on the allowance for uncollectible account.
The above means that the balance would represent the amount of credit that has gone bad hence the value represent balance on net receivable account.
Therefore,
Accounts receivable
= Adjusted balance in accounts receivable - Allowance for doubtful account
= $980,000 - $91,000
= $889,000
XYZ Corporation is contemplating the replacement of an existing asset used in the operation of its business. The original cost of this asset was $28,000; since date of acquisition, the company has taken a total of $20,000 of depreciation expense on this asset. The current disposal (market) value of this asset is estimated as $18,000. XYZ is subject to a combined income tax rate, t, of 34%. What is the projected after-tax cash flow associated with the sale of the existing asset, rounded to nearest hundred dollars
Answer:
The projected after-tax cash flow associated with the sale of the existing asset is $14,600.
Explanation:
The projected after-tax cash flow can be calculated as follows:
Net book value of the asset = Original cost - Accumulated depreciation expense = $28,000 - $20,000 = $8,000
Capital gains = Estimated current disposal (market) value of the asset - Net book value of the asset = $18,000 - $8,000 = $10,000
Capital gains tax = Capital gains * Tax rate = $10,000 * 34% = $3,400
Projected after-tax cash flow = Estimated current disposal (market) value of the asset - Capital gains tax = $18,000 - $3,400 = $14,600
Therefore, the projected after-tax cash flow associated with the sale of the existing asset is $14,600.
A corporation can earn 7.5% if it invests in municipal bonds. The corporation can also earn 8.5% (before-tax) by investing in preferred stock. Assume that the two investments have equal risk. What is the break-even corporate tax rate that makes the corporation indifferent between the two investments
Answer:
39.22%
Explanation:
Calculation for the break-even corporate tax rate
Using this formula
Municipal yield = After-tax preferred yield
7.50% = BT preference return ´ [1 - (1 - Dividend exclusion %)(T)]
Let plug in the formula
7.50% = 8.50% ´ [1 - 30.00% ´ (T)]
88.24% = [1 - 30.00% ´ (T)]
Tax rate (T) = 39.22%
Therefore the break-even corporate tax rate that makes the corporation indifferent between the two investments is 39.22%
There are only two consumers in a market, Harry and Hermione. Harry is willing to buy 12 magic wands when the price is $20 per wand and 8 magic wands when the price is $30 per wand. Hermione is willing to buy 15 magic wands when the price is $20 per wand and 10 magic wands when the price is $30 per wand. Given that these are the only two individuals in the market, what is the market demand for wands when the price of wands is $30
Answer:
The answer is 14
Explanation:
Market demand is the certain product need that is required by the consumers at a specific price. The market demand, when the price of the wand is $30, is 18.
What is market demand?Market demand is a specific number of services or products that customers or the consumer purchase at a fixed specific value in the market.
As in the above case in the market, only two consumers are present and the formula for the market demand is given by adding the demands all together sold at the specific price.
At the price, $30, Harry is willing to buy 8 magic wands and Hermione is willing to buy 10 magic wands. Form this the two demands can be added as there are only two consumers, resulting in the market demand being 18.
Therefore, the market demand at $30 is 18.
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Ebay, Inc. went public in September of 1998. The following information on shares outstanding was listed in the final prospectus filed with the SEC. In the IPO, the Ebay issued 3,500,000 new shares. The initial price to the public was $18.00 per share. The final first-day closing price was $44.88. If the investment bankers retained $1.26 per share as fees, what was the net proceeds to Ebay in dollars
Answer:
Net proceeds to Ebay = $ 58,590,000.
Explanation:
An Initial Public Offering(IPO) refers to the sales of new block of shares to the general public by a company for the purpose of raising equity capital.
This exercise is always promoted by a third-party company referred to as an underwriter for a fee. The underwriter adds value to the capital raising share offering by contracting to buy up unsold share units should they be undersubscribed. The underwriting fee is a cost to the issuing company.
The net share capital due to the company is computed as follows
Gross share proceeds - underwriting fee
= (3,500,000 × $18.00) - (3,500,000× $1.26)
=$ 58,590,000.
Net proceeds to Ebay = $ 58,590,000.
The closing price of $44.88 is a distracter and should be ignored.
ou are planning to save for retirement over the next 30 years. To do this, you will invest $890 per month in a stock account and $490 per month in a bond account. The return of the stock account is expected to be 10.9 percent, and the bond account will pay 6.9 percent. When you retire, you will combine your money into an account with a return of 7.9 percent. How much can you withdraw each month from your account assuming a 25-year withdrawal period
Answer:
Monthly withdraw= $23,294.99
Explanation:
Giving the following information:
Stock:
Monthly deposit= $890
Number of periods= 30*12= 360
Interest rate= 0.109 / 12= 0.0091
Bond:
Monthly deposit= $490
Number of periods= 30*12= 360
Interest rate= 0.069 / 12= 0.00575
First, we need to calculate the amount of money collected at the moment of retirement. We need to use the following formula on each investment:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Stock:
FV= {890*[(1.0091^360) - 1]} / 0.0091
FV= $2,452,918.1
Bond:
FV= {490*[(1.00575^360) - 1]} / 0.00575
FV= $586,123.47
Total FV= 2,452,918.1 + 586,123.47
Total FV= $3,039,041.57
Now, the monthly withdrawal for 25 years:
Number of periods= 25*12= 300
Interest rate= 0.079 / 12= 0.0066
Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]
Monthly withdraw= (3,039,041.57*0.0066) / [1 - (1.0066^-300)]
Monthly withdraw= $23,294.99
The following transactions were completed by the company. The company completed consulting work for a client and immediately collected $6,700 cash earned. The company completed commission work for a client and sent a bill for $5,200 to be received within 30 days. The company paid an assistant $2,000 cash as wages for the period. The company collected $2,600 cash as a partial payment for the amount owed by the client in transaction b. The company paid $940 cash for this period's cleaning services. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)
Answer:
The impact of each transaction on individual items of the accounting equation is as follows:
1. Cash $6,700 Consulting Revenue $6,700:
Assets (Cash +$6,700) = Liabilities + Equity (Retained Earnings $6,700)
2. Accounts Receivable $5,200 Commission Revenue $5,200:
Assets (Accounts Receivable +$5,200) = Liabilities + Equity (Retained Earnings $5,200)
3. Wages Expense $2,000 Cash $2,000:
Assets (Cash -$2,000) = Liabilities + Equity (Retained Earnings -$2,000)
4. Cash $2,600 Accounts Receivable $2,600:
Assets (Cash +$2,600 Accounts Receivable -$2,600) = Liabilities + Equity
5. Cleaning Expense $940 Cash $940:
Assets (Cash -$940) = Liabilities + Equity (Retained Earnings -$940)
Explanation:
a) Data and Calculations:
Accounts affected by each transaction:
1. Cash $6,700 Consulting Revenue $6,700
2. Accounts Receivable $5,200 Commission Revenue $5,200
3. Wages Expense $2,000 Cash $2,000
4. Cash $2,600 Accounts Receivable $2,600
5. Cleaning Expense $940 Cash $940
b) The accounting equation is Assets = Liabilities + Equity. It is the basis of accounting, debit and credit sides of accounts or the double-entry system of accounting. It is always in balance with each business transaction when they are properly recorded in the journals and correctly posted to the general ledger.
Bakery A sells bread for $2 per loaf that costs $0.50 per loaf to make. Bakery A gives an 80% discount for its bread at the end of the day. Demand for the bread is normally distributed with a mean of 300 and a standard deviation of 30. What order quantity maximizes expected profit for Bakery A
Answer:
324
Explanation:
Calculation to determine What order quantity maximizes expected profit for Bakery A
First step is for the Salvage value
Salvage value = $2 × (1 - 80%)
Salvage value= $0.40
Second step is to calculate the Overage cost
Overage cost = $0.50 - $0.40
Overage cost = $0.10
Second step is to calculate the Underage cost
Underage cost = $2 - $0.50
Underage cost = $1.50
Third step is to calculate the The critical ratio
The critical ratio = 1.5/(1.5 + 0.4) = 0.79. z = 0.8
Now let calculate the Order quantity
Order quantity = 300 + (0.8× 30)
Order quantity= 324
Therefore the order quantity maximizes expected profit for Bakery A is 324
Suppose the current price of a good is $167. At this price, the quantity supplied is 170 units, and the quantity demanded is 120 units. For every $1 decrease in price, the quantity supplied decreases by 10 units and the quantity demanded increases by 15 units. At the current price, the quantity demanded is than the quantity supplied. This means that the market is currently experiencing a . In order to adjust, the market price will until the quantity demanded and quantity supplied are equal. The result is an equilibrium quantity of and an equilibrium price of $ .
Answer:
is less than
surplus
fall
$165
150
Explanation:
Wjen demand exceeds supply, there is surplus
This is because price is greater than equilibrium price. Price would fall until equilibrium is restored
he following items appeared on the Year 6 year-end trial balance for the Brown Coffee Company:DebitsCreditsRevenues$600,000Operating expenses420,000Gain from disposal of component200,000Restructuring costs100,000Interest expense20,000Unrealized gain on AFS Debt Investment10,000Gain on sale of operating assets30,000Income tax expense has not yet been accrued. The company's income tax rate is 20% on all items. What amount should be reported in the company's year Year 6 income statement as income from continuing operations
Answer:
net income $72,000
Explanation:
The computation of the amount that should be reported is shown below:
Revenue $600,000
less:
operating expense -$420,000
restructing costs -$100,000
interest expense -$20,000
Add: gain on sale of investments $30,000
EBIT $90,000
less income tax at 20% - $18,000
net income $72,000
arrange the scrambled letter
utsbetiust
icevers
pecitionmto
imcltea
ntertsan
Answer:
below
Explanation:
substitute
service
competition
climate
entrants
The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 659,000 Direct labor cost $ 88,000 Raw material purchases $ 135,000 Selling expenses $ 104,000 Administrative expenses $ 49,000 Manufacturing overhead applied to work in process $ 209,000 Actual manufacturing overhead costs $ 221,000 Inventories Beginning Ending Raw materials $ 8,600 $ 10,200 Work in process $ 5,400 $ 20,200 Finished goods $ 78,000 $ 25,600 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement.
Answer:
1. Schedule of cost of goods manufactured.
Beginning Work in Process $ 5,400
Direct labor cost $ 88,000
Direct Material Costs :
Beginning Inventory $ 8,600
Add Raw material purchases $ 135,000
Less Ending Inventory ($ 10,200) $ 133,400
Manufacturing Overhead applied $ 209,000
Ending Work in Process ($ 20,200)
Cost of goods manufactured $415,600
Under-applied overheads = $12,000 ($ 221,000 - $ 209,000)
2. Schedule of cost of goods sold.
Beginning Finished Goods Inventory $ 78,000
Add Cost of Goods Manufactured $ 415,600
Less Ending Finished Goods Inventory ($ 25,600)
Cost of goods sold $467,400
Add Under-applied overheads $12,000
Adjusted Cost of goods sold $479,400
3. Income statement.
Sales $ 659,000
Less Cost of Goods Sold ($479,400)
Gross Profit $179,600
Less Expenses
Selling expenses $ 104,000
Administrative expenses $ 49,000 ($153,000)
Net Income (Loss) $26,600
Explanation:
See the schedules including the income statement prepared above.
Use the following information to answer the next question. Total Asset = $40 million Depreciation = $1.0 million. Basic earning power (BEP) ratio is 20% Lease payments = 0.6 million Times-interest-earned (TIE) ratio is 6.55 Principal payments = 4 million What is the company's EBIT? The company's interest expense? Select one: a. $8.0 million; $1.22 million b. $7.5 million; $0.75 million c. $8.0 million; $0.62 million d. $1.35 million; $0.37 million e. $3.33 million; $0.83 million
Answer:
a. $8.0 million; $1.22 million
Explanation:
The computation is shown below:
As we know that
Basic earnings power = EBIT ÷ total assets
So,
EBIT = Basic earnings power × total assets
= 0.20 × 40 million
= $8 million
Now
Times interest earned = EBIT ÷ interest expense
So,
Interest expense = EBIT ÷ Times interest earned
= $8 million ÷ 6.55
= $1.22 million
A company finds that there is a linear relationship between the amount of money that it spends on advertising and the number of units it sells. If it spends no money on advertising it sells 350 units. For each additional $3000 spent, an additional 15 units are sold.
A) If x is the amount of money that the company spends on advertising, find a formula for y, the number of units sold as a function of x.
B) How many units does the firm sell if it spends $25,000 on advertising?
C) How many units does the firm sell if it spends $50,000 on advertising?
D) How much advertising money must be spent to sell 700 units?
E) Which of the following statements correctly explains the meaning of the slope?
1. If the company spends an additional $1000 on advertising, it will increases the number of units it sells by 10.
2. In order to sell one more unit, the company would need to increase the amount it spends on advertising by $100.
3. If the company spends an additional $0.01 on advertising, it will sell one more additional unit.
4. If the company increases the amount of money it spends on advertising by $300, it will double the number of units it sells.
5. None of the above.
Answer:
A. y = 0.005x + 350
B. 475 units
C. 600 units
D. $70,000
E. None of the above
Explanation:
A)
If the company spend $3,000 on advertisement then it can sell 15 additional units. Total the company can sell 350 units without any advertisement. Then assuming linear relationship the equation will be:
y = 15 /3000 x + 350
y = 1 / 200 x + 350
y = 0.005x + 350
B) y = 0.005 (25,000) + 350
y = 475
C) y = 0.005 (50,000) + 350
y = 600
D) $3,000 / 15 units = $200 per unit
Since 350 units are sold without any cost then additional 350 units will be sold by,
350 units * 200 $ = $70,000
On January 1, 2016, Rapid Airlines issued $200 million of its 8% bonds for $184 million. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2016, the fair value of the bonds was $188 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000 of the increase in fair value was due to a decline in general interest rates.
Required:
1. Prepare the journal entry to record interest on June 30, 2016 (the first interest payment).
2. Prepare the journal entry to record interest on December 31, 2016 (the second interest payment).
3. Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2016, balance sheet.
Answer:
1. June 30, 2016
Dr Interest expense $9.2 million
Cr Discount on bonds payable $1.2million
Cr Cash $8 million
2. December 31, 2016
Dr Interest payment $9.26 million
Cr Discount on bonds payable $1.26million
Cr Cash $8 million
3. December 31, 2016
Dr Unrealized holding loss NI $1,000,000
Dr Unrealized holding loss OCI $5.46
Cr Fair value adjustment $6.46 million
Explanation:
1. Preparation of the journal entry to record interest on June 30, 2016
June 30, 2016
Dr Interest expense $9.2 million
( $184 million*10%2)
Cr Discount on bonds payable $1.2million
($9.2 million-$8 million)
Cr Cash $8 million
($200 million *8% /2)
(Being to record first interest payment)
2. Preparation of the journal entry to record interest on December 31, 2016
December 31, 2016
Dr Interest payment $9.26 million
( $184 million+$1.2million*10%2)
Cr Discount on bonds payable $1.26million
($9.26 million-$8 million)
Cr Cash $8 million
($200 million *8% /2)
(Being to record second interest payment)
3. Preparation of the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2016, balance sheet.
Dr Unrealized holding loss NI $1,000,000
Dr Unrealized holding loss OCI $5.46
($6.46 million-$1,000,000)
Cr Fair value adjustment $6.46 million
($188 million-$184 million+$1.2million+$1.26million)
(Being tl adjust the bonds to fair value)
define private equity funds.
Answer:
Private equity is composed of funds and investors that directly invest in private companies
Hope this helps!
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,700 cash and $33,700 of photography equipment in the company in exchange for common stock. 2 The company paid $2,300 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $900 cash. 20 The company received $3,531 cash in photography fees earned. 31 The company paid $695 cash for August utilities. Required: 1. Post the transactions to the T-accounts. 2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
Answer:
1. See the attached excel file for the T-accounts.
2. Total of credit side = Total of debit side = $43,931
Explanation:
1. Post the transactions to the T-accounts.
Note: See the attached excel file for the T-accounts.
2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
The trial balance will look as follows:
Pose-for-Pics
Trial balance
For August, 31
Details Debit ($) Credit ($)
Cash 6,336
Equipment 33,700
Common stock 40,400
Prepaid Insurance 2,204
Insurance Expenses 96
Office Supplies 900
Photography fees 3,531
Utilities Expense 695
Total 43,931 43,931
Winston Company estimates that the factory overhead for the following year will be $478,800. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 26,600 hours. The total machine hours for the year were 54,000 hours. The actual factory overhead for the year was $986,000. Enter the amount as a positive number.
Answer:
Results are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 478,800 / 26,600
Predetermined manufacturing overhead rate= $18 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 18*54,000
Allocated MOH= $972,000
Finally, the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 986,000 - 972,000
Underallocated overhead= $14,000
The optimal risky portfolio can be identified by finding ____________. I. the minimum variance point on the efficient frontier II. the maximum return point on the efficient frontier the minimum variance point on the efficient frontier III. the tangency point of the capital market line and the efficient frontier IV. the line with the steepest slope that connects the risk free rate to the efficient frontier A. I and II only B. II and III only C. I and IV only D. III and IV only
Answer:
D. III and IV only.
Explanation:
Portfolio variance can be defined as the measurement of risk or dispersion of returns of a set of securities that makes up a portfolio fluctuate over a period of time.
Simply stated, portfolio variance is typically the total returns of the portfolio over a specific period of time.
In order to calculate the portfolio variance, the standard deviations of each security in the portfolio with their respective correlations security pair in the portfolio would be used. Portfolio variance is the square of standard deviation.
A two-asset portfolio with a standard deviation of zero can be formed when the assets have a correlation coefficient equal to negative one (-1) because this defines the efficiency frontier. In Economical portfolio theory, the efficient frontier is a group of optimal portfolios that offers an investor the highest expected return for a specific risk level or offers the lowest risk for a defined level of expected return.
A common risk can be defined as a type of risk that affects the entirety of a business firm or company and as such can't be diversified.
Generally, the optimal risky portfolio can be identified by finding the tangency point of the capital market line and the efficient frontier and the line with the steepest slope that connects the risk free rate to the efficient frontier.
The two main sources of stockholders' equity are Question 4 options: investments by stockholders and net income retained in the business investments by stockholders and dividends paid net income retained in the business and dividends paid investments by stockholders and purchases of assets
Answer:
investments by stockholders and net income retained in the business.
Explanation:
Retained earnings also known as accumulated earnings, can be defined as the total amount of net income held by a corporation for its future use after paying out dividends to its shareholders.
The retained earnings statement refers to a financial statement that enumerate changes in retained earnings for an organization over a specific period of time. The retained earnings statement is the statement of owner's equity that outlines details of changes in the amount of retained earnings (profits) over a specified period in an organization.
The main purpose of preparing a retained earnings statement is to boost investor's confidence and improve market value.
Generally, retained earnings are used to pay off debts, used for capital expenditures and working capitals.
Retained earnings represents the total stockholders' equity reinvested back into the company.
This ultimately implies that, Retained Earnings statement refers to the changes in the retained earnings account of an organization or business firm, which occurred during the accounting period and typically comprises of net income arising from the income statement.
Thus, the Retained Earnings statement is based upon;
Retained Earnings + Net Income – Dividends.
Retained Earnings statement can be defined as a financial statement that enumerate changes in retained earnings for an organization over a specific period of time. The retained earnings statement is the statement of owner's equity that outlines details of changes in the amount of retained earnings (profits) over a specified period in an organization.
Hence, the two main sources of stockholders' equity are investments by stockholders and net income retained in the business.