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
When you decide to go and have a dinner with your friends in a world class hotel such as the Golden Tulip or La Pleasure Beach, perhaps you would be horrified by the high price you would have to pay for a bottle of soft drink such as Coca Cola or Pepsi Cola or wine or even bottled water. Perhaps you begin to ponder why the same commodity that you can get at a supermarket at one tenth the hotel price is going for such an astronomical price at the hotel. Of course, such facilities will have a warning such “you are not allowed to bring in your own food or drinks” posted at appropriate places in the facility for the attention of customers.In another scenario, you enter a designer shop to buy clothes with a designer label for a friend on their birthday or on Valentine day and you reckon the clothes are so much expensive compared to similar own brand clothes from a clothing or chain store, even though they may cost a similar amount to produce. Using your knowledge in basic economics, especially of the concept of demand and supply, attributes of a competitive market and price elasticity of demand, briefly discuss the following:
A. Why may a hotel charge such very high prices for wine, soft drinks or even bottled water and yet quite reasonable prices for food and still get away with such high prices? B. Why are designer shops able to price their clothes so very expensive and yet still get clients even though similar clothes that are available in a supermarket chain shops cost pretty much less?
Answer:
A. Price makers
B. Brand name
Explanation:
A. The hotels charge very high prices for wine and soft drinks because they are not price takers. They do not consider the price prevailing in the market for the products they are offering to the customers. They are price makers and select to charge the price they want to maintain their current hospitality. It their perception that wine and soft drinks are part of luxury. The food is an essential and people are not allowed to bring outside food in the hotel so they will buy it but when they will consume food they will also require the drinks as a part of their meal.
B. The people in today's world are so much brand conscious. They will pay for a name tag so they will be regarded for their high status in the society despite of low quality products. The ease of shopping at the branded stores is another reason for their high sales.
You want to have $13,000 in 9 years for a dream vacation. If you can earn an interest rate of .4 percent per month, how much will you have to deposit today?
Answer:
PV= $8,447
Explanation:
Giving the following information:
Future value= $13,000
Number of months= 9*12= 108
Interest rate= 0.4/100= 0.004 compounded montlhy
To calculate the initial investment required, we need to use the following formula:
PV= FV/(1+i)^n
PV= 13,000/(1.004^108)
PV= $8,447
Item 3Item 3 On January 1, 2018, Hoosier Company purchased $922,000 of 10% bonds at face value. The bond market value was $976,000 on December 31, 2018. Required: Prepare the appropriate journal entry on December 31, 2018, to properly value the bonds assuming the bonds are classified as
Answer:
Note: The missing last part of the question is as follows
"(1.) Trading securities.
(2.) Securities available for sale.
(3.) Held-to-maturity securities"
Solution
1. Journal Entries - Hoosier Company
Date Particulars Debit Credit
31-Dec-18 Fair value adjustment $54,000
To Unrealized holding $54,000
gain or loss - NI
(To adjust bond investment held for trading to fair value)
2. Journal Entries - Hoosier Company
Date Particulars Debit Credit
31-Dec-18 Fair value adjustment $54,000
To Unrealized holding $50,000
gain or loss - OCI
(To adjust bond investment available for sale to fair value)
3. Journal Entries - Hoosier Company
Date Particulars Debit Credit
31-Dec-18 No Journal Entry Required
A support level is the price range at which a technical analyst would expect the Multiple Choice demand for a stock to decrease substantially. price of a stock to fall. supply of a stock to increase dramatically. supply of a stock to decrease substantially. demand for a stock to increase substantially.
Answer:
The answer is D. demand for a stock to increase substantially.
Explanation:
The point where technical analysts expect a substantial increase in the demand for a stock to occur is called a support level.
Most stock prices remain stable and fluctuate up and down. The lower limit to these fluctuations is called a support level - the price range where a stock appears cheap, making its demand to increase substantially.
You are the supervisor for a team of employees who have a high number of product defects. They also waste materials. You recognize that products defects and wasted materials affect your department's budget. You have told your team to decrease the amount of wasted materials, bur your employees do not seem to are. How can you get them to increase their quality and decrease waste
Answer:
I will write a memo to the management office requesting for a complete change of team members in my department.
Explanation:
In this case in which the staffs do not care about the high number of defective products, and material wastage, I will try to persuade the team to decrease the amount of waste as stated. If talking to the team members does not fix the problem, then I will write to the management office requesting for a complete change of team members. The reason is that first, my effectiveness and job as the supervisor of such a wasteful team will be questioned and will be at risk, and I stand to lose a lot if I do not do anything about it. Requesting for a change of some of the team member won't fix the problem, the members that are retained in the team will still pass this wasteful culture to the new team members, which would not justify the change. Bringing in a fresh batch of workers will allow me set the new standard, and enforce the new standard, which will be to minimizing defective products and waste.
From the income statement, the corporation had a net income of $724 million for the year. Total dividends were $106 million. There were 400 million shares outstanding. How much is the dividends per share
Answer:
Dividend per year= $0.265 per share
Explanation:
Calculation of the dividend per year
Using this formula
Dividends per share=Total dividends/Total shares outstanding
Let plug in the formula
Dividend per share=$106/400
Dividend per share= $0.265 per share
Therefore the amount of dividend per share will be $0.265
Suppose that Antonio, an economist from an AM talk radio program, and Caroline, an economist from a school of industrial relations, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
Caroline: The usefulness of government intervention in the economy is a long-standing issue that economists continue to debate.
Antonio: I feel that government involvement in the economy should be reduced because government programs cause more harm than good.
Caroline: While I do agree that government programs can be inefficient, I really think they are necessary to help the less fortunate.
1. The disagreement between these economists is most likely due to
a. differences in values
b. differences in scientific judgement
c.differences in perception verse reality.
2. Despite their differences, with which proposition are two economists chosen at random most likely to agree?
a. Lawyers make up an excessive percentage of elected officials.
b. Minimum wage laws do more to harm low-skilled workers than help them.
c. Tariffs and import quotas generally reduce economic welfare.
Answer:
1) Option A. differences in values
2) Option C. Tariffs and import quotas generally reduce economic welfare
Explanation:
1) Difference in values which can also be called value conflicts are due to variations in belief systems. I.e. when the belief systems of two groups do not allign. While Antonio believes that government programmes should be reduced because they cause more harm than good, Caroline is of the opinion that despite the inefficiency of government programmes, they are still necessary for the less fortunate. This disagreement is as a result of value conflict.
2) Both economists agree on the inefficiency of government programmes. The focal point of Caroline's argument is that government's intervention in the economy is needed for the less fortunate. Based on this premise, two economies chosen at random will most likely agree to the proposition that tariffs and import quotas generally reduce economic welfare.
Gross Profit MethodBased on the following data, estimate the cost of the ending merchandise inventory: Sales (net) $9,250,000 Estimated gross profit rate 36% Beginning merchandise inventory $180,000 Purchases (net) 5,945,000 Merchandise available for sale $6,125,000
Answer:
$205,000
Explanation:
The computation of the cost of the ending merchandise inventory is shown below:-
Cost of the ending merchandise inventory = Merchandise available for sale - (Net Sales - Gross profit)
= $6,125,000 - ($9,250,000 - $9,250,000 × 36%)
= $6,125,000 - ($9,250,000 - $3,330,000)
= $205,000
Therefore we applied the above formula so that the cost of ending merchandise inventory could come
Employee vacation benefits: Multiple Choice Are recorded as an expense when the employee retires. Increase net income. Are estimated liabilities. Are contingent liabilities. Are recorded as an expense when the employee takes a vacation.
Answer: are estimated liabilities
Explanation:
Employee vacation benefits are estimated liabilities. It should be noted that an estimated liability is an obligation or a debt of an unknown amount which an economic agent i.e an individual, firm or the government can reasonably estimated.
It is a known liability that everyone is aware of but don't really know the exact cost.
Mayan Company had net income of $132,000. The company had 89,000 shares of common stock issued. The company had 9,000 shares of treasury stock. The company declared a $27,000 dividend on its preferred stock. There were no other stock transactions. What is the company's Earnings Per Share
Answer:
The company's Earnings Per Share is $1.18
Explanation:
Earnings per share = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Stock Holders
= ($132,000 - $27,000) / 89,000
= $1.179775 or $1.18
Trade adjustment assistance:_________.a. provides financial assistance to all unemployed workers in the United Statesb. guarantees jobs for all workers displaced by imports or plant relocations abroadc. provides assisntace to about 20 percent of unemployed U.S. workers each yeard. provides cash assistance for workers displaced by imports or plant relocations abroad
Answer:
The correct answer is the option B: guarantees jobs for all workers displaced by imports or plant relocations.
Explanation:
To begin with, the name of "Trade Adjustment Assistance" or TAA refers to a federal program from the United States that establish that its government must act in the situations necessary in order to reduce the damage cause by imports that are felt by certain sectors of the U. S. economy. Moreover, this program's structure features four components and one of them is the program for workers in which is established that the TAA provides a variety of reemployment services to those workers who were displaced or lost their jobs due to the increase of the imports or the relocation of their work plants.
West Corp. issued 13-year bonds 2 years ago at a coupon rate of 9.4 percent. The bonds make semiannual payments. If these bonds currently sell for 98 percent of par value, what is the YTM?
Answer:
9.68%
Explanation:
yield to maturity (YTM) = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]
face value = $1,000
market value = $1,000 x 0.98 = $980
n = (13 - 2) x 2 = 22
coupon = $1,000 x 0.094 x 1/2 = $47
YTM = {$47 + [($1,000 - $980) / 22]} / [($1,000 + $980) / 2] = $47.9090 / $990 = 0.4839 x 2 (annual rate) = 0.09678 = 9.68%
The production possibilities curve represents: a) The maximum amount of labor and capital available for production. b) Combinations of goods and services among which consumers are indifferent. c) Maximum combinations of products available with fixed resources and technology. d) The maximum rate of growth of capital and labor in an economy.
Answer:
c) Maximum combinations of products available with fixed resources and technology.
Explanation:
The production possibilities curve (PPC) is also known as the production possibilities frontier (PPF) and its a curve which illustrates the maximum (best) combinations of two products that can be produce in an economy if they both depend on these factors;
1. Technology is fixed.
2. Resources are fixed.
Hence, the production possibilities curve represents maximum combinations of products available with fixed resources and technology. This ultimately implies that the manufacturing or production of one item (product) is likely to rise or increase provided the production of the other item (product) falls or decreases.
Additionally, the production possibilities curve influences the choice of production used by companies and as such it helps to make the best decision regarding the optimum product mix for a company. This simply means that, all points in a production possibilities curve is efficient and resources should be used efficiently or to the fullest.
Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing on July 31, the end of the current year:
Common Stock, $10 par $440,000
Paid-In Capital from Sale of Treasury Stock-Common 33,200
Paid-In Capital in Excess of Par-Common Stock 132,000
Paid-In Capital in Excess of Par-Preferred Stock 61,200
Preferred 4% Stock, $50 par 1,020,000
Retained Earnings 2,057,400
Treasury Stock-Common 38,500
Fifty thousand shares of preferred and 200,000 shares of common stock are authorized. There are 3,500 shares of common stock held as treasury stock.
Required:
Prepare the Stockholders' Equity section of the balance sheet as of July 31, the end of the current year.
Answer:
Specialty Auto Racing Inc.Stockholders' Equity section of the balance sheet as at July 31:
Authorized Share Capital:
Common Stock, 200,000 $10 par
Preferred 4% Stock, 50,000 $50 par
Common Stock, Issued share capital, $10 par $440,000
Paid-In Capital in Excess of Par-Common
Stock (132,000 + 33,200) 165,200
Treasury Stock-Common, 3,500 shares (38,500)
Preferred 4% Stock, $50 par 1,020,000
Paid-In Capital in Excess of Par-Preferred Stock 61,200
Retained Earnings 2,057,400
Total Equity $3,705,300
Explanation:
The Stockholders equity section of the balance reports the Preferred stock, common stock, additional paid‐in‐capital, retained earnings, and treasury stock. It also discloses information regarding the par value, authorized shares, issued shares, and outstanding shares for each type of stock.
The Paid-in Capital from sale of Treasury stock- common of $33,200 is added to the Paid-in Capital in Excess of Par- Common Stock as there is no separate account for it.
Drag each option to the correct location on the image. Match the pairs to their respective categories.
The correct answers are Pairs of Substitutes: tea- coffee, butter-margarine, petroleum-natural gas; Pairs of Complementary goods: printer-ink cartridge, pen-refill
Explanation:
In economics and related fields, substitutes are goods or products that are considered similar by customers and due to this, one product can replace the other. For example, butter and margarine are substitutes because they have similar properties and uses, which makes one product replace the other. This also occurs with tea and coffee, and petroleum and natural gas because one product can replace the other. Also, because of this, it is common customers buy only one of the products rather than both depending on preferences, price, availability, etc.
On the other hand, complementary goods are those that are used together, this often implies customers buy the two products and changes in one product affect the other. This occurs in the case of printer and ink cartridge because the products are used together and buying a printer often implies customers need to buy the cartridges. Similarly, pens and refills for pens are used and bought together, and one cannot replace the other.
A manager with many direct subordinates has a wider___________ than does a manager with only a few subordinates. Employees make greater use of their skills and enjoy more opportunities for professional development in a organization
Answer:
Span of management
Explanation:
The span of management refers to managing the number of subordinates by the superior in an efficient and effective manner
In this, the superiors directly report to the superior with respect to the work, suggestions, grievances
This above explanation we are known as span of management
Therefore in the given scenario, the best option is the span of management that perfectly fits
The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30, for Finnegan Co.:
Accumulated Depreciation $32,000
Fees Earned 78,000
Depreciation Expense 7,250
Rent Expense 34,000
Prepaid Insurance 6,000
Supplies 400
Supplies Expense 1,800
Requried:
Prepare an income statement.
Answer:
Its 4oo
Explanation:
Its option C
Answer:
Fees Earned: 78,000
Expenses:
Rent Expense: (7,250)
Depreciation Expense: (34,000)
Supplies Expense: (1,000)
Total Expenses: 43,050
Net Income: 34,950
If a firm with a positive net worth is operating its fixed assets at full capacity, if its dividend payout ratio is 100%, and if it wants to hold all financial ratios constant, then for any positive growth rate in sales, it will require external financing.
A. True
B. False
Answer:
TRUE
Explanation:
I got this question right on a test! Please make as brainiest!
Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income [EBIT(1 - T)] for 2020 is expected to be $700 million. The depreciation expense for 2020 is expected to be $150 million. The capital expenditures for 2020 are expected to be $375 million. No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 7% per year. The required return on equity is 13%. The WACC is 11%. The firm has $199 million of non-operating assets. The market value of the company's debt is $3.534 billion. 120 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today
Answer:
The company's stock price today should be $71.17 per share.
Explanation:
The corporate valuation model approach can be used to estimate this by using the following steps:
Step 1: Calculation of the free cash flow
Free cash flow is the cash a firm generates after accounting for capital expenditure. This can be estimated using the following formula:
Free Cash Flow (FCF) = After-tax operating income + Depreciation expenses - Capital expenditure
For this question, we therefore have:
Free Cash Flow (FCF) = $700 + $150 - $375 = $475 million
Step 2: Calculation of Value of operations (Vo)
Vo = FCF / (WACC - FCF growth rate) = 475 / (11% - 7%) = $11,875 million
Step 3: Calculation of the Firm value
Firm value = Vo + Non-operating assets = $11,875 + $199 = $12,074 million
Step 4: Calculation of value of equity
Value of equity = Firm value - Debt = $12,074 - $3,534 = $8,540 million
Note: The correct amount of debt is $3,534 not $3.540 as mistakenly given, may be due to typographical error, in the question.
Step 5: Calculation of stock price per share today
Stock price per share = Value of equity / Number of shares outstanding = $8,540 / 120 = $71.17 per share
Therefore, the company's stock price today should be $71.17 per share.
ABC purchases inventory for $2,000 and incurs shipping costs of $100 for the goods to be delivered. To record this transaction, the company debits Inventory for $2,000, debits Selling Expenses for $100, and credits Cash for $2,100. Which of the following statements is correct?
A) Revenues are understated.
B) All accounts are accurately stated.
C) Net income is overstated.
D) Assets are understated.
Specific Identification is used by:
A) Starbucks
B) Manufacturers
C) Grocery Stores
D) Car dealers
Answer: 1. D) Assets are understated
2. D) Car dealers
Explanation:
1. The shipping costs to bring Inventory into a business are known as Carriage Inwards. This amount is to be debited with the Inventory as it is considered to be part of the cost of acquiring the inventory. By not putting this cost with the inventory, ABC is undervaluing the inventory account which is an Asset account. The Assets are therefore understated.
2. The Specific Identification Method of inventory valuation is based on each individual unit purchased or sold. It does not group items and tracks each item from the moment it is purchased to the moment it is sold so the cost of the specific inventory is known. This method is used more often by businesses that deal with easily identifiable items such as Jewellers and Car dealers because each car is big enough to be tracked individually.
MV Corporation has debt with market value of $ 95 million, common equity with a book value of $ 102 million, and preferred stock worth $ 20 million outstanding. Its common equity trades at $ 48 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? g
Answer:
Total market value $383.8 million
Debt is 24.75%
Preferred stock is 5.21%
Common equity is 70.03%
Explanation:
Calculation of the weights that MV Corporation should use in its WACC
Debt value : $95 million
Preferred stock value : $20 million
Market value of common equity:
$48 per share×5.6million shares= $268.8 million
Total market value of firm: $95 +20 +268.8 =$383.8 million
Weights for WACC calculation:
Debt =95/383.8
=24.75%
Preferred Stock =20/383.8
=5.21%
Common Equity =268.8/383.8
=70.03%
Therefore the total market value of the firm will be $383.8 million Debt is 24.85% of the total value, preferred stock is 5.21%, and common equity is 70.03%
You deposit $2,400 into an account that pays 5% per year. Your plan is to withdraw this amount at the end of 5 years to use for a down payment on a new car. How much will you be able to withdraw at the end of 5 years? Do not round intermediate calculations. Round your answer to the nearest cent.
Answer:
3,063.08
Explanation:
To determine how much will you be able to withdraw at the end of 5 years, we have to calculate the present value of the amount paid.
The formula for calculating future value :
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$2,400 (1 + 0.05)^5 = 3,063.08
I hope my answer helps you
A publisher faces the following demand schedule for the next novel from one of its popular authors:
Price Quantity Demanded
(Dollars) (Copies)
100 0
90 100,000
80 200,000
70 300,000
60 400,000
50 500,000
40 600,000
30 700,000
20 800,000
10 900,000
0 1,000,000
The author is paid $2 million to write the novel, and the marginal cost of publishing the novel is a constant $10 per copy.
Complete the second, fourth, and fifth columns of the following table by computing total revenue, total cost, and profit at each quantity.
Quantity Total Revenue Marginal Revenue Total Cost Profit
(Novels) (Dollars) (Dollars) (Dollars) (Dollars)
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Answer and Explanation:
The completion of the second, fourth, and fifth columns of the given table is to be shown in the attachment below:
As we know that
Profit = Total revenue - total cost
Total revenue is the revenue earned by the company by multiplying the price with the quantity demanded
While the total cost is
= Fixed cost + variable cost
The marginal revenue comes from
= Change in total revenue ÷ change in quantity
We simply use these formulas in the spreadsheet below.
The following attachment should be used to demonstrate how the second, fourth, and fifth columns of the provided table have been completed:
As we are aware of
Total revenue - total costs = profit.
Total revenue is the amount of money the business brings in by multiplying the price by the quantity of customers.
While the overall expense is
= Variable cost + fixed cost
The source of the marginal revenue is
= Change in quantity x Change in total revenue
These formulas are merely used in the spreadsheet that follows.
The table is completed and explained in the attachments.
Learn more about marginal revenue here
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Adonis Corporation issued 10-year, 7% bonds with a par value of $220,000. Interest is paid semiannually. The market rate on the issue date was 6%. Adonis received $236,371 in cash proceeds. Which of the following statements is true?
a. Adidas must pay $220,000 at maturity plus 20 interest payments of $6,600 each.
b. Adidas must pay $236,371 at maturity and no interest payments.
c. Adidas must pay $220,000 at maturity plus 20 interest payments of $7,700 each.
d. Adidas must pay $220,000 at maturity and no interest payments.
e. Adidas must pay $236,371 at maturity plus 20 interest payments of $7,700 each.
Answer:
The answer is C
Explanation:
The interest payment is semiannual, meaning it pays interest twice in a year.
Adonis corporation issued a 10-year bond. Since the interest payment is paid twice a year, the number of periods the interest will paid is 20 times(10 years x 2).
And interest to paid is:
$220,000 x 7%
Annual interest paid is $15,400
Since it is semiannual, interest payment will be $7,700($15,400 ÷ 2)
The principal payment at maturity is $220,000. Par value means face value at maturity or principal value at maturity.
Oscar’s Red Carpet Store maintains a checking account with Academy Bank. Oscar’s sells carpet each day but makes bank deposits only once per week. The following provides information from the company’s cash ledger for the month ending February 28, 2021.
Date Amount No. Date Amount
Deposits: 2/4 $ 2,350 Checks: 321 2/2 $ 4,350
2/11 1,950 322 2/8 650
2/18 2,850 323 2/12 2,150
2/25 3,750 324 2/19 1,850
Cash receipts: 2/26-2/28 1,250 325 2/27 450
$ 12,150 326 2/28 950
327 2/28 1,550
Balance on February 1 $ 6,450 $ 11,950
Receipts 12,150
Disbursements (11,950)
Balance on February 28 $ 6,650
Information from February's bank statement and company records reveals the following additional information:
The ending cash balance recorded in the bank statement is $10,665.
Cash receipts of $1,250 from 2/26–2/28 are outstanding.
Checks 325 and 327 are outstanding.
The deposit on 2/11 includes a customer's check for $450 that did not clear the bank (NSF check).
Check 323 was written for $2,800 for advertising in February. The bank properly recorded the check for this amount.
An automatic withdrawal for Oscar's February rent was made on February 4 for $1,200.
Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $165.
In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,300 from Oscar. On February 24, Titanic paid $5,500 ($5,300 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing.
Academy Bank charged service fees of $100 to Oscar’s for the month.
Required:
1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.)
2. Record the necessary cash adjustments. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Total entries to the same account together when entering in the journal entry worksheet.)
Answer:
Explanation:
Balance as per cash book = 6,650
Deduct uncleared check (450)
Check 323 (650)
Rent ( 1200)
Interest 165
Titanic payment not captured 5,500
Service fee (100)
Total adjustment 3,265
Adjusted balance 9,915
Balance as per bank statement 10,665
Cash receipt 1250
Check 325 ( 450)
Check 327 (1550)
Total adjustment (750)
Adjusted balance 9,915
b)
Cash adjustment
Uncleared customer check
Debit customer = 450
Credit Cash = 450
Advertising
Debit Advertising 650
Credit Cash 650
Rent
Debit rent 1200
Credit Cash 1200
Interest
Debit cash 165
Credit interest expenses 165
Payment from Titanic
Debit cash 5,500
Credit Oscar 5300
Credit Interest exp. 200
Service fee
Credit cash 100
Debit service charges 100
What term describes the execution of business transactions in a paperless environment, primarily through the Internet
Answer:
Paperless transaction
ExxonMobil reports total assets of $198 billion and total liabilities of $92 billion. Citigroup reports total liabilities of $1,350 billion and stockholders' equity of $95 billion. Amazon reports total assets of $3.2 billion and total stockholders' equity of $0.15 billion. Nike reports an increase in assets of $1.05 billion and an increase in liabilities of $0.4 billion. Kellogg's reports a decrease in liabilities of $0.39 billion and an increase in stockholders' equity of $0.03 billion. (Enter your answers in billions rounded to 2 decimal places. Negative amounts should be indicated by a minus sign.) Required: What is the amount of stockholders' equity of ExxonMobil
Answers with its Explanation:
The fundamental accounting equation would be used to calculate the stockholder's equity, which is given as under:
Stockholder's Equity = Assets - Liabilities
For ExxonMobil,
Stockholder's Equity = $198 Billion - $92 Billion = $102 Billion
Likewise for CitiGroup,
Assets = $1,350 Billion + $95 Billion = $1,445 Billion
Likewise for Amazon,
Total Liabilities = $3.2 Billion - $0.5 Billion = $2.7 Billion
For Nike, we will use the following formula to calculate the change in shareholder's equity for the year:
Change in Stockholder's Equity = Change in Asset - Change in Liabilities
Change in Stockholder's Equity = $1.05 Billion - $0.4 Billion = $1.01 Billion
For Kellogg, we will use the following formula to calculate the change in Company's assets for the year:
Change in Total Assets = Change in Liabilities - Change in Stockholder's Equity
Change in Total Assets = $0.39 Billion - $0.03 Billion = $0.36 Billion
There are two goods that you can spend your income on; good X and good Y. The price of good X is Px and the price of good Y is Py. The level of income is N$1800 and tour utility function is
Answer:
N$1800 = PxX ≤ PyY
Explanation:
Utility is the sanctification a consumer services from consuming a good or a service.
An utility function measures the preferences of a consumer over a set of goods or services.
given income of $1,800 and prices px and py, a consumer has to choose a bundle of good that maximises utility given income as total expenditure cannot exceed income
Milar Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 7.7 pounds $ 4 per pound
Direct labor 0.1 hours $ 20 per hour
Variable overhead 0.1 hours $ 4 per hour
In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for January is:
a. $1,690 U
b. $1,540 F
c. $1,540 U
d. $1,690 F
Answer:
Direct material price variance= $1,690 favorable
Explanation:
Giving the following information:
Direct materials 7.7 pounds $ 4 per pound
During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910.
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
actual price= 65,910/16,900= $3.9
Direct material price variance= (4 - 3.9)*16,900
Direct material price variance= $1,690 favorable
Consider a firm that employs some resources that are owned by the firm. When accounting profit is zero, economic profit Multiple Choice must also equal zero. is sure to be positive. must be negative and shareholder wealth is reduced. cannot be computed accurately, but the firm is breaking even nonetheless.
Answer:
must be negative and shareholder wealth is reduced
Explanation:
In terms of economic benefit, the "breaking even though" can not be accurate, since economic profit looks for certain options for capital. There is no guarantee that the resources can not be distributed to any other attempt to achieve positive accounting benefits.
So, the right option is must be negative and shareholder wealth is reduced.