Answer:
$1803.33
Explanation:
average total cost = average variable cost + average fixed cost
average total cost = total cost / quantity = $35000 / 15 = $2,333.33
average fixed cost = $2,333.33 - $530 = $1803.33
A company is obligated to pay its creditors $6,100 at the end of the year. If the value of the company's assets equals $5,800 at that time, what is the value of shareholders' equity
Answer:
The value of shareholders' equity is -$300
Explanation:
Shareholders' equity is the corporation's owners' residual claim on assets after debts have been paid.
Total assets= Total liability + shareholders' equity
Shareholders' equity = Total assets - Total liability
Shareholders' equity = $5,800 - $6,100
Shareholders' equity = -$300
The number of support staff needed to handle the volume of incidents in a help desk operation is a similar problem to the number of cashiers a grocery store needs to keep checkout lines from getting too long.
a. True
b. False
Answer:
a. True
Explanation:
The number of support staff needed to handle the volume of incidents in a help desk operation depends on the amount of calls that are received at different times and according to that a number of staff is defined to handle the calls without having customers waiting for a long time on the phone which is the same that happens with the number cashiers at a grocery store which is determined based on the amount of people in the store to avoid long lines and we can see that the stores have more cash registers open when they are full of people.
Bradley's Miniature Golf and Driving Range Inc. was opened on March 1 by Bob Dean. These selected events and transactions occurred during March.
Mar. 1 Stockholder invested $59,000 cash in the business in exchange for common stock of the corporation
3 Purchased Snead's Golf Land for $41,200 cash. The price consists of land $22,900, building $8,310, and equipment $9,990. (Record this in a single entry.)
5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,560 cash
6 Paid cash $3,500 for a 1-year insurance policy.
10 Purchased golf clubs and other equipment for $4,800 from Tahoe Company, payable in 30 days
18 Received golf fees of $1,550 in cash from customers for golf services performed
19 Sold 105 coupon books for $10 each in cash. Each book contains 10 coupons that enable the holder to play one round of miniature golf or to hit one bucket of golf balls. (Hint: The revenue should not be recognized until the customers use the coupons.)
25 Paid a $420 cash dividend. 30 Paid salaries of $810.
30 Paid Tahoe Company in full for equipment purchased on March 10.
31 Received $800 in cash from customers for golf services performed
Journalize the March transactions. Bradley's records golf fees as service revenue. (Record journal entries in the order presented in the problem.)
Answer:
Mar. 1
Cash $59,000 (debit)
Common Stock $59,000 (credit)
Mar. 3
Land $22,900 (debit)
Building $8,310 (debit)
Equipment $9,990 (debit)
Cash $41,200 (credit)
Mar. 5
Advertising expenses $1,560 (debit)
Cash $1,560 (credit)
Mar. 6
Prepaid Insurance $3,500 (debit)
Cash $3,500 (credit)
Mar. 10
Equipment $4,800 (debit)
Account Payable : Tahoe Company $4,800 (credit)
Mar. 18
Cash $1,550 (debit)
Sales Revenue $1,550 (credit)
Mar. 19
Cash $1,050 (debit)
Unearned Revenue $1,050 (credit)
Mar. 25
Dividend $420 (debit)
Cash $420 (credit)
Mar. 30
Salaries Expenses $810 (debit)
Cash $810 (debit)
Mar. 30
Account Payable : Tahoe Company $4,800 (debit)
Cash $4,800 (credit)
Mar. 31
Cash $800 (debit)
Service Revenue $800 (credit)
Explanation:
Note the following :
1.The cash earned from coupon books is posted to a Liability account : Unearned Revenue instead of Sales Revenue Account. This is because revenue is recognized until customers use the coupons.
2. Repayment of an Account Payable decreases both the Assets of Cash and the Liability of Accounts Payables.
Billy Thornton borrowed $20,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month
Answer:
Interest for a 30 day month = $120.83
Explanation:
Interest rate rate is the price paid by a borrower for the use of money and the return earned by a lender for postponing his consumption in favour of investment.
Interest is computed in two ways; Simple interest and compound interest
Simple interest: This is the interest paid on the principal invested or borrowed. To calculate simple interest, we use the formula below:
Annual Simple interest= Principal × interest Rate (%) × Time.
Monthly simple interest =Principal ×interest Rate (%)× 30/360
= 20,000 × 7.25% × 30/360= 120.833
Interest for a 30 day month = $120.83
A publishing company sells 450 comma 000 copies of certain books each year. It costs the company $ 1 to store each book for a year. Each time it must print additional copies, it costs the company $ 1 comma 000 to set up the presses. How many books should the company produce during each printing in order to minimize its total storage and setup costs?
Answer:
The company produce 30,000 books during each printing in order to minimize its total storage and setup costs.
Explanation:
The quantity that minimizes total storage and setup costs is known as Economic Order Quantity, in this case it is called the Optimum Batch Quantity.
Optimum Batch Quantity = √((2 × Annual demand × Setup cost per process) / Holding Cost per book.)
= √( (2 × 450,000 × $1,000) / $1)
= 30,000
Conclusion :
The company produce 30,000 books during each printing in order to minimize its total storage and setup costs.
Chutes & Co. has interest expense of $ 1.25 million and an operating margin of 10.8 % on total sales of $ 30.7 million. What is Chutes' interest coverage ratio?
Answer:
2.7 times
Explanation:
Chutes and co. has an interest expense of 1.25 million
Operating margin of 10.8%
Total sales of 30.7 million
The first step is to calculate the operating income
Operating income= Sales×operating margin
= $30,700,000×10.8/100
= $30,700,000×0.108
= $3,315,600
Therefore, the interest coverage ratio can be calculated as follows
Interest coverage ratio= Operating income/Interest expense
= $3,315,600/$1,250,000
= 2.65
= 2.7 times
Hence Chutes' interest coverage ratio is 2.7 times
Big-Mouth Frog Corporation had revenues of $200,000, expenses of $120,000, and dividends of $30,000. When Income Summary is closed to Retained Earnings, the amount of the debit or credit to Retained Earnings is a Group of answer choices debit of $50,000. debit of $80,000. credit of $50,000. credit of $80,000.
Answer:
Credit of $80,000
Explanation:
Big-Mouth Frog Corporation Calculation for Retained earnings
Using this formula
Retained earnings =Revenue- Expenses
Where,
Revenue =$200,000
Expenses =$180,000
Let plug in the formula
Retained earnings =$200,000-$180,000
Retained earnings =$80,000
Therefore when the Income Summary is closed to Retained Earnings, the amount of the credit to Retained Earnings will be $80,000
Suppose that Larimer Company sells a product for $24. Unit costs are as follows:
Direct materials $4.98
Direct labor 2.10
Variable factory overhead 1.00
Variable selling and administrative expense 2.00
Total fixed factory overhead is $26,500 per year, and total fixed selling and administrative expense is $15,260.
Requried:
a. Calculate the variable cost per unit and the contribution margin per unit.
b. Calculate the contribution margin ratio and the variable cost ratio.
c. Calculate the break-even units.
Answer:
a)
Variable cost per unit=$10.08
Contribution per unit=$13.92
b)
Contribution margin ratio=58%
Variable cost ratio= 42%
c) Break-even units=3,000 units
Explanation:
Variable cost per unit
= 4.98 + 2.10 + 1.00 + 2.00 = $10.08
Variable cost per unit=$10.08
Contribution per unit = Selling price per unit - Variable cost per unit
= 24 - 10.08 =13.92
Contribution per unit=$13.92
b)
Contribution margin ratio= contribution/selling price= 13.92/24 × 100=58%
Contribution margin ratio=58%
Variable cost ratio = variable cost/selling price= 10.08 /24× 100 = 42%
Variable cost ratio=42%
c)
Break-even units = Total general fixed cost/contribution per unit
= (26,500 + 15,260)/ 13.92 = 3000 units
Break-even units=3,000 units
Consider two bonds, a 3-year bond paying an annual coupon of 6.90% and a 10-year bond also with an annual coupon of 6.90%. Both currently sell at a face value of $1,000. Now suppose interest rates rise to 12%.
Required:
a. What is the new price of the 3-year bonds?
b. What is the new price of the 10-year bonds?
Answer:
a.
$877.51
b.
$711.84
Explanation:
Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Both of these cash flows discounted and added to calculate the value of the bond.
According to given data
Face value of the bond is $1,000
Coupon payment = C = $1,000 x 6.9% = $69 annually
Market Rate = 12% annually
Price of the bond is calculated by following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
a.
Numbers of period = 3
Placing values in the formula
Price of the Bond = $69 x [ ( 1 - ( 1 + 12% )^-3 ) / 12% ] + [ $1,000 / ( 1 + 12% )^3 ]
Price of the Bond = $165.73 + $711.78
Price of the Bond = $877.51
b.
Numbers of period = 10
Placing values in the formula
Price of the Bond = $69 x [ ( 1 - ( 1 + 12% )^-10 ) / 12% ] + [ $1,000 / ( 1 + 12% )^10 ]
Price of the Bond = $389.87 + 321.97
Price of the Bond = $711.84
Some studies done by economists have found that the original inventor receives _________________________________________________ from innovations, while other businesses and new product users receive the rest of the benefit.
Answer:
one-third to one-half of the total economic benefits
Explanation:
It has been found that although most inventors put in a lot of time, money, energy, and intellect into discovering new products, they most times do not make much gains from their discoveries. The rate at which other competing firms copy the new innovations, make it such that the innovative company might lose the sole right to market the product and make any gains from the sale.
Economists from their own research have also found that the original inventor just makes one-third to one-half of the total economic benefits from the new product, while other businesses receive the remaining benefits because of their ability to copy the original. Sometimes the innovators go through legal battles to secure patent rights, and even after this, they may not make enough money to cover all the expenses.
Suppose a firm has the following expenditures per day: $240 for wages, $150 for materials, and $80 for equipment rental. The owner of the firm owns the building in which it operates. If the firm were not operating in the building, he could rent the building for $70 per day. Total daily revenue is $600.
1. What are the daily accounting costs for the firm described above?
2. What are the daily explicit costs for the firm described above?
3. What are the daily implicit costs for the firm described above?
Answer:
1. $470
2. $470
3. $70
Explanation:
Accounting costs or explicit cost are the actually costs incurred in running the business. They include :
1. $240 for wages
2. $150 for materials
3. $80 for equipment rental.
Total = $470
Implicit costs are opportunity cost. They are the costs of the next best option forgone when one alternative is chosen over other alternatives. The amount that could have been earned as rent is the implicit cost. So implicit cost is $70
I hope my answer helps you
2014 ending inventory was overstated by $25,000, but it was too late to correct the financial statements. Which of the following describes the effect of the inventory error on the 2014 financial statements?A. Net income and stockholders' equity are both understated.
B. Net income is understated and stockholders' equity is correct.
C. Net income and stockholders' equity are both overstated.
D. Net income and stockholders' equity are both unaffected.
Answer:
C. Net income and stockholders' equity are both overstated.
Explanation:
In the income statement , ending inventory is deducted from the addition of the beginning inventory and net purchases to arrive at the cost of goods sold. Therefore, the cost of goods can be stated as an equation stated as follows:
Cost of goods sold = Beginning inventory + Net purchases - Ending inventory
From the above equation, it can be observed that if the ending inventory is overstated, cost of goods sold will be understated by that amount.
Since gross income is determined by deducting cost of goods sold from the net sales, an understated cost of goods sold will result in an overstated gross income and subsequently overstated net income.
Since net income is one of the components of the stockholders' equity, an overstated net income will leads to an overstated stockholders' equity.
Therefore, the correct option is C. Net income and stockholders' equity are both overstated.
Ellen, as a manager, has always been driven by scheduling, directing group activities, planning, and trying out new ideas. For her, meeting deadlines is critical and she always gives explicit standards of performance. Ellen can be described as high on which of these?
a. Transformation
b. Delegating
c. Consideration
d. Participating
Answer: Delegating
Explanation:
Delegation is a concept of a managerial leadership which involves the transfer and directing of specific and explicit duties or activities on what needs to be accomplished and how it should be carried out usually by an experienced manager to his or her subordinates especially for the outcome of work which he or she is accountable for.
Here, Ellen is always scheduling, directing and gives explicit standard of performance shows she is high on Delegating duties.
The capital accounts of Hawk and Martin have balances of $160,000 and $140,000, respectively, on January 1, the beginning of the current fiscal year. On April 10, Hawk invested an additional $10,000. During the year, Hawk and Martin withdrew $86,000 and $68,000, respectively, and net income for the year was $258,000. The articles of partnership make no reference to the division of net income. Based on this information, the statement of partners' equity would show what amount in the capital account for Martin on December 31?
Answer:
$213,000
Explanation:
We will figure out first Hawk's share of profit to reach the capital account is shown below:-
Hawk's share of profit = $258,000 ÷ 2
= $129,000
Capital account of Hawk as on December 31 = Opening Balance + Capital Introduced + Profit Share - Drawings
= $160,000 + $10,000 + $129,000 - $86,000
= $213,000
So, we have got the answer after solve the below formula.
Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $4 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 6%, and the forecasted retention ratio is 45%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent.
Answer:
$538,000
Explanation:
EFN = [(assets/sales) x ($ Δ sales)] - [(liabilities/sales) x ($ Δ sales)] - [profit margin x forecasted sales x (1 - dividend payout)]
current sales = $5,000,000
change in sales = $1,000,000
assets $4,000,000
profit margin = 6%
1 - dividend payout = 45%
current liabilities that change in proportion to sales = $500,000
forecasted sales = $6,000,000
EFN = [($4,000,000/$5,000,000) x ($1,000,000)] - [($500,000/$5,000,000) x ($1,000,000)] - (6% x $6,000,000 x 0.45)
EFN = $800,000 - $100,000 - $162,000 = $538,000
Assume that a bond makes 10 equal annual payments of $1,000 starting one year from today. The bond will make an additional payment of $100,000 at the end of the last year, year 10. (This security is sometimes referred to as a coupon bond.) If the discount rate is 3.5$% per annum, what is the current price of the bond? (Hint: Recognize that this bond can be viewed as two cash flow streams: (1) a 10-year annuity with annual payments of $1,000, and (2) a single cash flow of $100,000 arriving 10 years from today. Apply the tools you've learned to value both cash flow streams separately and then add.)
Answer:
$79,208.48
Explanation:
The computation of the current price of the bond is shown below:-
Number of Cash flow PV annuity factor Discounted cash
years flow
1 -10 years $1,000 8.3166 $8,316.6
10 years $100,000 0.7089188 $70,891.88
Current price of the bond $79,208.48
Refer to the PV annuity factor so that we get to know the discounting factor value.
Based on the information given, the current price of the bond will be $71721.66
The current price of the bond is calculated thus:
Cash flow = $1000Annuity factor = 0.83166Discounted cash flow = $1000 × 0.83166 = $831.66Also for 10 years, the discounted cash flow will be:
= $100000 × 0.7089 = $70890
The current bond price will be:
= $70890 + $831.66
= $71721.66
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Red Sun Rising Corp. has just signed a lease for its new manufacturing facility. The lease agreement calls for annual payments of $1,600,000 for 20 years with the first payment due today. If the interest rate is 3.45 percent, what is the value of this liability today
Answer:
The present value of the liability today is $23,631,155.52
Explanation:
The lease payments form an annuity due as the lease payments meet the criteria of the annuity due. The lease pays equal amount of payments, after equal intervals of time and for a definite period of times. Besides, the payments made are at the start of the period. Thus, it is an annuity due.
The formula to calculate the present value of an annuity due is attached and using this formula we can calculate the present value of the lease liability today.
PV = 1600000 + 1600000 * [ (1 - (1+0.0345)^-19) / 0.0345 ]
PV = $23,631,155.52
imhoff company leases a new building form noble construction, inc. The present value of the lease payments is $700000. The lease is a finance lease. Prepare the journal entry that the lesse should make to record this transaction.
Answer:
Dr right-of-use asset $700,000
Cr lease liability $700,000
Explanation:
The company upon entering into the finance lease would have to show the lease as an asset(right-of-use asset) as well as the lease liability(present value of lease obligations owed to the lessor).
As a result, the company would debit right-of-use asset with $700,000 while lease liability is also credited with the same amount
This year, Nancy, a single taxpayer, paid $12,300 of real estate taxes on her personal residence and $7,500 of state income taxes. Assuming Nancy itemizes her deductions, what amout can she deduct for taxes this year
Answer:
$12,500
Explanation:
Nancy can deduct both her real estate taxes and state income taxes from her gross income. This way, she will end up paying less federal income taxes. The exact amount that she saves depends on her tax bracket, which is not given.
Assuming Nancy doesn't take the standard deduction, she can deduct 100% of her state income taxes ($7,500) and up to $5,000 in real estate taxes since she is a single taxpayer. Her total deduction on these two items will be $12,500.
In the current year, Riflebird Company had operating income of $220,000, operating expenses of $175,000, and a long-term capital loss of $10,000. How do Riflebird Company and Roger, the sole owner of Riflebird, report this information on their respective Federal income tax returns for the current year under the following assumptions?
a. Riflebird Company is a proprietorship (Roger did not make any withdrawals from the business). Roger reports $ ________ net operating profit and $_______ long-term capital loss on his tax return.
b. Riflebird Company is a C corporation (no dividends were paid during the year). Roger reports $__________ net operating profit and $________ long-term capital loss on his tax return.
Answer:
a. Riflebird Company is a SOLE proprietorship (Roger did not make any withdrawals from the business). Roger reports $45,000 net operating profit and $10,000 long-term capital loss on his tax return.
Sole proprietorships are not taxed directly ,they are pass through entities. Their sole proprietor is taxed, and since individuals get taxed differently for ordinary income than capital income, they must segregate them.
b. Riflebird Company is a C corporation (no dividends were paid during the year). Roger reports $35,000 net operating profit and $0 long-term capital loss on his tax return.
Corporations do not segregate capital gains from ordinary income, so they must include them together in their income taxes.
g Jack and Jill borrow $21,000 at 7.2% amortized over 6 years to drill a well and renovate their kitchen and bathrooms. Assuming that the monthly principal and interest payments are made as agreed, what is the loan balance at the end of 3 years
Answer:
The loan balance at the end of 3 years is $11,626.26.
Explanation:
Prepare an Amortization Table to determine the loan balance at end of year 3
First, enter the following data in Financial Calculator to find the PMT, payment per month:
Pv = $21,000
r = 7.2%
n = 6 × 12 = 72
P/yr = 12
Fv = $0
PMT = ? - $360.0493
Thus the payment PMT per month is $360.0493.
Year 3
The following are balances extracted from Amortization schedule for Year 3.
Note : 36 months would have expired at end of year 3.
Principle = $ 3,619.94
Interest = $1,060.70
Balance = $11,626.26
Conclusion :
The loan balance at the end of 3 years is $11,626.26
A stock has an expected return of 10.2 percent, the risk-free rate is 3.9 percent, and the market risk premium is 7.2 percent. What must the beta of this stock be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Beta= 0.88
Explanation:
The Capital Asset pricing Model (CAPM) can be used to determined the beta.
According to the Capital Asset pricing Model the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio.
These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.
Under CAPM, Ke= Rf + β(Rm-Rf)
Rf-risk-free rate (treasury bill rate), β= Beta, Rm= Return on market.
Ke- expected return.
Note that (Rm-Rf) is known as equity risk premium
Using this model,
10.2%= 3.9% + β× (7.2%)
0.102=0.039 + 0.072β
collect like terms
0.072β = 0.102 -0.039
0.072β = 0.063
Divide both sides by 0.072
β = 0.063 /0.072
β= 0.875
Beta= 0.88
Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable Ending Accounts Receivable Net SalesWalCo $1,795 $2,742 $320,427 TarMart 6,066 6,594 65,878 CostGet 609 645 66,963 Required:1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Do not round intermediate calculations. Enter your answers in millions. Round your "Average accounts receivable" and "Receivables turnover ratio" answers to one decimal place.)2.Which company appears most efficient in collecting cash from sales?a) WalCob) TarMartc) CostGetWalCo TarMart CostGet WalCo TarMart CostGet Net sales Receivables Turnover Ratio Average accounts receivable Receivables turnover ratio times times times Average Collection Period Average collection period days days days
Answer:
1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet.
WalCo = 70.63TarMart = 10.41CostGet = 106.802.Which company appears most efficient in collecting cash from sales?
CostGet because its average collection period is shortestExplanation:
Beginning Accounts Ending Accounts Net Sales
Receivable Receivable
WalCo $1,795 $2,742 $320,427
TarMart $6,066 $6,594 $65,878
CostGet $609 $645 $66,963
accounts receivable turnover ratio = net sales / average accounts receivable
WalCo = $320,427 / [($1,795 + $2,742)/2] = 70.63
TarMart = $65,878 / [($6,066 + $6,594)/2] = 10.41
CostGet = $66,963 / [($609 + $645)/2] = 106.80
average collection period = 365 / accounts receivable turnover ratio
WalCo = 365 / 70.63 = 5.17 days
TarMart = 365 / 10.41 = 35.06 days
CostGet = 365 / 106.80 = 3.42 days
A trucking company sold its fleet of trucks for $56,300. The trucks originally cost $1,471,000 and had Accumulated Depreciation of $1,282,000 recorded through the date of disposal. What gain or loss did the trucking company record when it sold the fleet of trucks
Answer:
$132,700
Explanation:
The computation of the gain or loss in case of sale of fleet of trucks is shown below:
But before that we have to find that written down value which is
WDV of Trucks is
= Original Cost - Accumulated Depreciation
= $1,471,000 - $1,282,000
= $189,000
And, the Sale value is $56,300
So, the loss is
= $189,000 - $56,300
= $132,700
Dusty would like to buy a new car in six years. He currently has $13,500 saved. He’s considering buying a car for around $17,500 but would like to add a Turbo engine to increase the car’s performance. This would increase the price of the car to $21,500.If dusty can earn 9% interest compounded anually will he be able to get a car with a turbo engine in six years?
Answer:
yes he will
Explanation:
with a compund intrest of 9 percent and he didnt put in any money after the 13,500 he will have $22,640.85 in 6 years, so now he can go buy his car and also buy a new exhaust system
Answer: Yes he can
with a compound interest of 9 percent and he didn't put in any money after the $13,500 he will have $22,640.85 in 6 years, so now he can go buy his car and also buy with a turbo engine.
What is an example of compound interest?Compound interest definition
When you add money to a savings account or a similar account, you receive interest based on the amount that you deposited. For example, if you deposit $1,000 in an account that pays 1 percent annual interest, you'd earn $10 in interest after a year.
How do we calculate compound interest?
Compound interest, or 'interest on interest', is calculated using the compound interest formula. The formula for compound interest is A = P(1 + r/n)^nt, where P is the principal balance, r is the interest rate, n is the number of times interest is compounded per time period and t is the number of time periods.
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An eight-year bond has a yield of 10% and a duration of 7.208 years. If the bond's yield increases by 50 basis points, what is the percentage change in the bond's price as predicted by the duration formula
Answer:
3.28%
Explanation:
For the computation of percentage change in the bond's price first, we need to find out the modified duration which is shown below:-
Modified duration = duration ÷ (1+yield)
= 7.208 ÷ (1 + 10%)
= 6.553
Percentage change in price = modified duration × change in yield
= 6.553 × 0.5%
= 3.28%
Therefore for computing the percentage change in the bond's price we simply applied the above formula.
The producer of a downloadable antivirus software program spends exactly $2 comma 650 comma 000 producing the first copy and incurring various costs required to make the software"user-friendly." The firm can produce and distribute additional copies at a per-unit cost of $1.00. If the company sold as many copies as consumers wished to purchase at a price of $1.00 percopy, it would sell 425 comma 000 copies. If the company maximizes its economic profits in the short-run, it sells 225 comma 000 copies at a price of $40. Finally, the company earns zero economic profits when it sells 275 comma 000 copies.What are the firm's economic profits (or losses) if it sells 425 comma 000 copies of the antivirus software program at a $1.00 price per copy? $ -2,650,000 .What are the maximum economic profits that the firm can earn in the short run? $ 6,125,000 . What is marginal revenue when the firm maximizes its short-run economic profits? $ 1.00 .In the long run, after entry of competing firms, to the nearest dollar, and including the correct sign, what amount of economic profits will this firm earn? $ 0 0.
Answer:
What are the firm's economic profits (or losses) if it sells 425 comma 000 copies of the antivirus software program at a $1.00 price per copy?
economic profit = revenue - total costs = $425,000 - $3,075,000 = ($2,650,000)What are the maximum economic profits that the firm can earn in the short run?
maximum economic profit = (225,000 x $40) - $2,875,000 = $6,125,000What is marginal revenue when the firm maximizes its short-run economic profits?
$40Marginal revenue refers to the revenue generated by selling 1 more unit.
In the long run, after entry of competing firms, to the nearest dollar, and including the correct sign, what amount of economic profits will this firm earn?
$0On the long run, economic profit will always = 0
Explanation:
price per copy units sold total revenue
$1 425,000 $425,000
$40 225,000 $9,000,000
total cost to produce and sell 425,000 copies = (425,000 x $1) + $2,650,000 = $3,075,000
total cost to produce and sell 275,000 copies = (275,000 x $1) + $2,650,000 = $2,925,000
total cost to produce and sell 225,000 copies = (225,000 x $1) + $2,650,000 = $2,875,000
the winner of the first annual Tom Morris Golf Invitational won $130 in the competition which was held in 1904. In 2015, the winner received $1,510,000. If the winner's purse continues to increase at the same interest rate, how much will the winner receive in 2055?
Answer:
$44,068,955.96
Explanation:
The annual growth rate can be determined using compound annual growth rate formula below
CAGR=(Succeeding year amount/preceding year amount)^1/n-1
n is the interval of years between the two amount which is 2015-1904=111
CAGR=(1510000/130)^(1/111)-1=8.80%
The amount the winner would receive in the year 2055 can be computed using the future value formula stated below:
FV=PV*(1+r)^n
PV is the present amount which is $1,510,000
r is the 8.80%
n=2055-2015=40 years
FV=$1,510,000*(1+8.80%)^40=$44,068,955.96
Which is the correct sequence for recording transactions and preparing financial statements?
a. Ledger, trial balance, journal, financial statements
b. Journal, ledger, trial balance, financial statements
c. Financial statements, trial balance, ledger, journal
d. Ledger, journal, trial balance, financial statements
Answer:
The answer is B.
Explanation:
The first is the journal. A journal entry may be a summary of the debits and credits of the transaction entry to the journal.
Followed by a ledger which may be a book containing accounts during which the classified and summarized information from the journals is posted as debits and credits.
Trial balance which is that the listing of all accounts (asset, liability, equity, revenue, expense) with the ending account balance or or its a report that lists the balances of all book accounts of a corporation at a specific point in time.
And lastly the financial statements. they're written records of a business's financial situation
Universal Containers (UC) has a custom, internal-only, mobile billing application for users who are commonly out of the office. The app is configured as a Connected App in Salesforce. Due to the nature of this app, UC would like to take the appropriate measures to properly secure access to the app.Which two solutions should be recommended? (Choose two.)A. Use Google Authenticator as an additional part of the login process.B. Require High Assurance sessions in order to use the Connected App.C. Disallow the use of Single Sign-on for any users of the mobile app.D. Set Login IP Ranges to the internal network for all of the app users’ Profiles.
Answer:
A,D
Explanation:
The two solutions that should be recommended when a app is configured as a Connected App in Salesforce. In regards to the nature of this app, UC would prefer to take the suitable or right measures to properly secure access to the app are as follows:
A. The Use Google Authenticator as an added part of the login process.
D. Also Setting Login IP Ranges to the internal network for every of the app users’ Profiles.
A connected app is known as a framework that authorize or allow an external application to merge or blend with Salesforce using APIs and also standard protocols, such as OpenID Connect, SAML, OAuth.
Connected apps make use of these protocols to perform some actions such as authenticate, authorize, and also provide single sign-on (SSO) for external apps.