Answer:
$9,320
Explanation:
Calculation to determine what Trell will show as the amount receivable from factor of:
Using this formula
Amount receivable =Interest in the receivables-( Local bank transferred accounts receivable*Fees percentage)
Let plug in the formula
Amount receivable=$11,000 - ($56,000 × 3%)
Amount receivable=$11,000-$1,680
Amount receivable= $9,320
Therefore Trell will show an amount receivable from factor of:$9,320
On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:Accounts Debit CreditCash $26,700 Accounts Receivable 15,000 Allowance for Uncollectible Accounts $ 3,600 Supplies 3,900 Notes Receivable (6%, due in 2 years) 18,000 Land 80,300 Accounts Payable 8,500 Common Stock 98,000 Retained Earnings 33,800 Totals $ 143,900 $ 143,900 During January 2021, the following transactions occur:January 2 Provide services to customers for cash, $49,100.January 6 Provide services to customers on account, $86,400.January 15 Write off accounts receivable as uncollectible, $3,300.January 20 Pay cash for salaries, $32,800.January 22 Receive cash on accounts receivable, $84,000.January 25 Pay cash on accounts payable, $6,900.January 30 Pay cash for utilities during January, $15,100.The following information is available on January 31, 2021.The company estimates future uncollectible accounts. The company determines $4,300 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)Supplies at the end of January total $950.Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.Unpaid salaries at the end of January are $34,900.1) Prepare the journal entries for transactions.2) Choose the appropriate accounts to complete the company's income statement.
Answer:
3D Family Fireworks
1. Journal Entries for Transactions:
Jan. 2 Debit Cash $49,100
Credit Service Revenue $49,100
To record services rendered for cash.
Jan. 6 Debit Accounts Receivable $86,400
Credit Service Revenue $86,400
To record services rendered on account.
Jan. 15 Debit Allowance for Uncollectible Accounts $3,300
Credit Accounts Receivable $3,300
To record uncollectible written off.
Jan. 20 Debit Salaries Expense $32,800
Credit Cash $32,800
To record payment for salaries expense.
Jan. 22 Debit Cash $84,000
Credit Accounts Receivable $84,000
To record cash collected on accounted.
Jan. 25 Debit Accounts Payable $6,900
Credit Cash $6,900
To record payment on account.
Jan. 30 Debit Utilities Expense $15,100
Credit Cash $15,100
To record utilities expense paid.
Income Statement for the month ended January 31, 2021:
Service Revenue $135,500
Interest Revenue 1,080
Total Revenue $136,580
Salaries Expense $32,800
Utilities Expense 15,100
Bad Debts Expense 1,060 48,960
Net Income $87,620
Explanation:
a) Data and Calculations:
Trial Balance as of January 1, 2021:
Debit Credit
Cash $26,700
Accounts Receivable 15,000
Allowance for Uncollectible Accounts $3,600
Supplies 3,900
Notes Receivable (6%, due in 2 years) 18,000
Land 80,300
Accounts Payable 8,500
Common Stock 98,000
Retained Earnings 33,800
Totals $ 143,900 $ 143,900
Transaction Analysis:
Jan. 2 Cash $49,100 Service Revenue $49,100
Jan. 6 Accounts Receivable $86,400 Service Revenue $86,400
Jan. 15 Allowance for Uncollectible Accounts $3,300 Accounts Receivable $3,300
Jan. 20 Salaries Expense $32,800 Cash $32,800
Jan. 22 Cash $84,000 Accounts Receivable $84,000
Jan. 25 Accounts Payable $6,900 Cash $6,900
Jan. 30 Utilities Expense $15,100 Cash $15,100
Jan. 31 Adjustments:
Allowance for Uncollectibles:
$4,300 Allowance for Uncollectibles $860 ($4,300 * 20%)
$9,800: Allowance for Uncollectible $490 ($9,800 * 5%)
$14,100 Allowance for Uncollectible $1,350
Allowance for Uncollectibles
Account Titles Debit Credit
Beginning balance $3,600
Accounts receivable $3,300
Bad Debts Expense 1,060
Ending balance 1,350
Interest Receivable $1,080
Interest Revenue $1,080
Service Revenue:
Service Revenue $49,100
Service Revenue $86,400
Service Revenue $135,500
(4) Asset A has an expected return of 15% and a Sharpe ratio of .4. Asset B has an expected return of 20% and a Sharpe ratio of .3. A rational risk-averse investor would prefer a portfolio using the risk-free asset and ______. A. asset A B. asset B C. no risky asset D. not enough information to determine the answer
Answer: A. Asset A
Explanation:
The Sharpe ratio is used to adjust the return earned on an asset based on its risk. This allows investors to know the returns they are getting for risk being taken.
A higher Sharpe ratio is preferred to a lower one as it shows that more returns are being received per risk taken. A rational risk averse investor would therefore pick Asset A because they would be getting more return for the risk they take regardless of how little this risk is.
The Massoud Consulting Group reported net income of $1,382,000 for its fiscal year ended December 31, 2021. In addition, during the year the company experienced a positive foreign currency translation adjustment of $380,000 and an unrealized loss on debt securities of $45,000. The company’s effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income is displayed net of tax.
Required:
Prepare a separate statement of comprehensive income for 2021.
Answer: Check attachment
Explanation:
Kindly check the attachment.
Note that:
Foreign currency adjustment will be:
= $380000 × (1 - 25%)
= $380,000 × 75%
= $380,000 × 0.75
= $285,000
Loss on debt securities:
= $45000 × (1 - 25%)
= $45000 × 75%
= $45000 × 0.75
= $33750
At the beginning of 2021, Terra Lumber Company purchased a timber tract from Boise Cantor for $2,950,000. After the timber is cleared, the land will have a residual value of $670,000. Roads to enable logging operations were constructed and completed on March 30, 2021. The cost of the roads, which have no residual value and no alternative use after the tract is cleared, was $228,000. During 2021, Terra logged 570,000 of the estimated 5.7 million board feet of timber. Required: Calculate the 2021 depletion of the timber tract and depreciation of the logging roads assuming the units-of-production method is used for both assets
Answer:
depletion of the timber tract = $228,000 and
depreciation of the logging roads = $22,800
Explanation:
Timber tract
Depletion rate = (Cost - Residual Value) ÷ Estimated units
= ($2,950,000 - $670,000) ÷ 5,700,000
= $0.40
Depletion expense = Units used x Depletion rate
= 570,000 x $0.40
= $228,000
Logging Roads
Depreciation rate = (Cost - Residual Value) ÷ Estimated units
= ($228,000 - $0) ÷ 5,700,000
= $0.04
Depreciation expense = Units used x Depreciation rate
= 570,000 x $0.04
= $22,800
An advantage of a corporation is that
A
owners pay fewer taxes than owners of other forms of business.
B
the business is subject to little government regulation.
с
owners have limited liability for debt.
D
owners have direct and immediate control over daily management of the business.
Answer:
Explanation:
An advantage of a corporation is that owners have limited liability for debt.
The advantage of a corporation is that owners have limited liability for debt. Thus, option (c) is correct.
This means that the corporate entity shields the shareholders from liability beyond the value of their investments, so protecting their personal assets.
When a company regularly assumes significant risks for which it could be held liable, limited liability is a distinct advantage. A corporation also offers protection from personal liability, continuity, and security for the business, quicker access to financing, and simple ownership transfers.
Therefore, option (c) is correct.
Learn more about on corporation, here:
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Select the correct answer.
In terms of market research, which statement describes an advantage for businesses?
O Market research agencies always collect accurate market information, regardless of their client's guidance.
O Secondary sources are inexpensive and can meet any business's market research needs.
O Primary research methods, such as interviews, are highly reliable because respondents always give their honest opinions.
A business can explore new market opportunities with the help of accurate market research data.
Submit
Answer: A business can explore new market opportunities with the help of accurate market research data.
Explanation:
When market research data is accurate, a business is better able to know what consumers want and can therefore explore new opportunities to satisfy these needs and make healthy returns as a result.
If market research data is poor however, companies run the risk of either investing in a loss making venture or not investing in a potentially profitable venture because they did not know how profitable it would be.
Match each capital budgeting method with its definition. METHODS 1. Accounting rate of return 2. Internal rate of return 3. Net present value 4. Payback Definition Capital Budgeting Method a. Is only concerned with the time it takes to get cash outflows returned b. Considers operating income but not the time value of money in its analyses c. Compares the present value of cash outflows to the present value of cash inflows to determine investment worthiness d. The true rate of return an investment earns
Answer:
1. Accounting rate of return ⇒ Considers operating income but not the time value of money in its analyses.
Accounting rate of return is only concerned with the rate of return made over the life of the asset.
2. Internal rate of return ⇒ The true rate of return an investment earns.
Internal rate of return shows the true rate of investment and it does so by equating the NPV to zero.
3. Net present value ⇒ Compares the present value of cash outflows to the present value of cash inflows to determine investment worthiness.
Net Present value allows us to subtract the present value of outflows from inflows and is a very useful capital budgeting techniques.
4. Payback ⇒ Is only concerned with the time it takes to get cash outflows returned.
Payback period is concerned with the time it would take to pay off the investment. It does not try to convince other titans.
WalkLikeYou, Corp. is a specialty athletic shoe manufacturer which uses a job order costing system. The following information below is given for WalkLikeYou:
As of January 31 As of February 28
Inventory account balances:
Raw materials inventory $42,000 $30,000
Work in process inventory $9,200 $20,600
Finished goods $56,000 $33,500
Additional information for the month ended February 28:
Raw materials purchased $198,000
Factory payroll $150,000
Actual factory overhead costs:
Indirect materials $15,000
Indirect labor $34,500
Other overhead costs $13,500
Sales $1,100,000
Predetermined overhead rate (based on direct labor costs) = 55% of DL costs
Compute the following amounts for the month of February. You must show all of your work, either using formulas or using T-accounts.
a. Cost of direct materials used.
b. Total manufacturing costs.
c. Cost of goods manufactured.
d. Cost of goods sold.(ignore effects of underapplied / overapplied overhead)
e. Gross profit.
f. Overapplied or underapplied overhead.
Answer:
a. $195,000
b. $423,525
c. $412,125
d. $434,625
e. $665,375
f. $525 over-applied
Explanation:
a. Cost of direct materials used.
Cost of direct materials used = Opening Materials Inventory + Materials Purchase - Ending Materials Inventory - Indirect materials
= $42,000 + $198,000 - $30,000 - $15,000
= $195,000
b. Total manufacturing costs.
Total manufacturing costs = Variable Manufacturing Costs + Fixed Manufacturing Costs
Total manufacturing costs calculation
Direct materials $195,000
Direct Labor ($150,000 - $34,500) $115,500
Indirect materials $15,000
Indirect labor $34,500
Other overhead costs - applied ($115,500 x 55%) $63,525
Total Cost $423,525
c. Cost of goods manufactured.
Cost of goods manufactured = Opening Work In Process + Total manufacturing costs - Closing Work In Process
= $9,200 + $423,525 - $20,600
= $412,125
d. Cost of goods sold.
Cost of goods sold = Opening Finished Goods Inventory + Cost of goods manufactured - Closing Finished Goods Inventory
= $56,000 + $412,125 - $33,500
= $434,625
e. Gross profit.
Gross profit = Sales - Cost of goods sold
= $1,100,000 - $434,625
= $665,375
f. Overapplied or underapplied overhead
If Actual Overheads > Applied Overheads, we have under-applied overheads
and
If Applied Overheads > Actual Overheads, we have over-applied overheads
where,
Actual Overheads = $15,000 + $34,500 + $13,500 = $63,000
Applied Overheads = $63,525
Over-applied overheads = Applied Overheads - Actual Overheads
= $63,525 - $63,000
= $525
The information that follows pertains to Esther Food Products: At December 31, 2018, temporary differences were associated with the following future taxable (deductible) amounts: Depreciation $ 70,000 Prepaid expenses 30,000 Warranty expenses (12,000 ) b. No temporary differences existed at the beginning of 2018. c. Pretax accounting income was $115,000 and taxable income was $27,000 for the year ended December 31, 2018. d. The tax rate is 45%. Required: Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2018. x Tax Rate = Tax $ Recorded as: Pretax accounting income $ 112,000 Permanent differences x =Income subject to taxation x =Temporary Differences x =Income taxable in current year x =Record 2021 income tax
Answer:
1. Income taxable in current year $27,000.00 45% $12,150 Income Tax Payable
2. 31-Dec-18
Income tax expense Dr $17,250
Deferred tax assets Dr $12,150
Cr To Income taxes payable $12,150
Cr To Deferred tax liability $17,250
Explanation:
1. Computation of the given table to record income taxes for 2018
Particulars Amount Rate of Tax Tax Recorded as
Pretax accounting income $115,000.00
Permanent difference $0.00
Income subject to taxation
$115,000.00 45% $17,250 Income tax expense
TEMPORARY DIFFERENCE:
Depreciation -$70,000.00 45% -$31,500 Deferred tax liability
Prepaid Expenses -$30,000.00 45% -$13,500 Deferred tax liability
Warranty expense $27,000.00 45% $12,150 Deferred tax assets
Income taxable in current year $27,000.00 45% $12,150 Income Tax Payable
2. Preparation of the appropriate journal entry to record income taxes for 2018.
31-Dec-18
Income tax expense Dr $17,250
Deferred tax assets Dr $12,150
Cr To Income taxes payable $12,150
Cr To Deferred tax liability $17,250
(To record income tax expense)
Answer:
..............
......
..
On January 1, 2020 Roberts acquires 100% of Smith by issuing 100,000 shares (par value $2, fair value $10). Smith will remain as a wholly owned subsidiary of Roberts. At acquisition date, Smith had a book value of assets of $800,000 and a book value of liabilities of $200,000. Included in the assets Smith had land with a book value of $400,000 and a fair value of $330,000. Included in the liabilities, Smith had a Note Payable with a book value of $120,000 and a fair value of $80,000. What is the amount of goodwill or gain on bargain purchase at January 1, 2020.
Answer:
$430,000
Explanation:
The excess of Purchase Price over the Net Assets taken over is known as Goodwill.
Acquisition of Assets and Liabilities of a subsidiary are made at their Acquisition date Fair Value amounts.
Assets Fair Value
Book Value $800,000
Adjust Land Revalued ($70,000)
Assets fair value $730,000
Liabilities Fair Value
Book Value $200,000
Adjust Note Payable Revalued ($40,000)
Liabilities fair value $160,000
Now,
Net Assets Acquired = $730,000 - $160,000 = $570,000
Purchase Price = 100,000 x $10 = $1,000,000
Goodwill = $430,000
Therefore,
the amount of goodwill or gain on bargain purchase at January 1, 2020 is $430,000
Community hospital of the west is experiencing changes occurring throughout the facility, many of the employees are concerned about how the change will affect their current position and workflow. Although the employees are aware that change is occurring in the facility, there has been little communication regarding the changes and the employees are feeling unsettled. Describe the steps the hospital needs to do in order to better support employees during the transitional phase of change. What are some consequences for the hospital if this type of support is not provided
Answer:
in order to support the employees during the transitional phase of change, the hospital could try helping the employees get used to the new changes by maybe adding facilities that they are used to or maybe arrange some colleagues that the employees are familiar with to work with them, so they can get used to the new things with some support by their side.
consequences the hospital May face if they don't support their employees to make them feel more comfortable in their workplace, many of their workers May quit and it would be hard to find new employees and it would be time-consuming to teach the new employees all over again.
another consequence is that if their employees are the ones that make a lot of people want to go to their Hospital community, then losing them may make the people that go to the hospital community to not want to return again and maybe leave a bad review, since the help support care and treatment probably isn't the same.
United Merchants Company sells 38,000 units at $20 per unit. Variable costs are $14.20 per unit, and fixed costs are $108,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) fill in the blank 1 % b. Unit contribution margin (Round to the nearest cent.) $fill in the blank 2 per unit c. Income from operations
Answer and Explanation:
The computation is shown below:
a. The contribution margin ratio is
= (Selling price - variable cost) ÷ (Selling price)
= ($20 - $14.20) ÷ $20)
= 29%
b. The contribution margin per unit is
= (Selling price - variable cost)
= ($20 - $14.20)
= $5.80
c. The income from operations is
= $5.80 × 38,000 units - $108,000
= $112,400
You have been retained to testify as a damages expert at a binding arbitration about the financial loss your client sustained when a supplier shipped it defective raw materials. Several days before the arbitration proceeding, you discovered that the arbitrator is a member of your country club who occasionally plays golf with you.
a. Do you have a conflict of interest in testifying under oath on behalf of your client?
b. Should you discuss this case with the arbitrator if you see him at the country club?
c. Does the arbitrator have a conflict of interest?
Answer T or F to the following: _____ In general, job shop operations are larger than line flow operations. _____ In general, job shop operations use more general purpose equipment than line flow operations. _____ In general, job shop operations have higher variety of output than line flow operations. _____ In general, job shop operations have lower labour content than line flow operations. _____ In general, job shop operations are less flexible than line flow operations. _____ In general, job shop operations are more likely to measure their capacity by their outputs. _____ In general, job shop operations have less work in process inventory than line flow operations. _____ In general, job shop operations have higher skilled workers than line flow operations. _____ In general, job shop operations are less likely to compete on cost than line flow operations. _____ In general, job shop operations produce larger volume output than line flow operations.
Answer:
FalseTrueTrueFalseFalseFalseTrueTrueTrueFalseExplanation:
FalseThis is because Job shop operations are smaller than line flow operations
TrueThis is because line flow operations require more specific more specific tools
True.This is because high volume of a specific type of product
FalseThis is because in job shop the production of variety of products require a higher number of labor content
FALSEJob shop operations are more flexible than line flow operations
FALSEoperations are measured by degree of customization in job shops
TRUEJob shops are not usually involved in mass productions
TRUEJob shops posses higher skilled labors because of the customization involved with job shops
TRUELine flow operations are more cost effective because they produce in large quantities
FALSEThere is mass production in lie flow operation
Despite the heavy reliance on e-mail, in certain situations calling may be the most efficient channel of communication, whether mobile or on your office line. Be sure to understand professional expectations for telephone, cell phone, and voice mail etiquette. Identify the telephone etiquette that will make your telephone calls productive. Check all that apply. Avoid telephone tag. End the call politely. Leave complete voice mail messages. Use a three-point introduction. Be professional and courteous.
Answer:
All options are correct
Explanation:
For a telephone call to be effective, it is necessary to introduce three points, where you must name the person you are calling, identify yourself and identify the reason for the telephone contact. It is ideal to avoid phone etiquette, as a clear and objective call will retain more attention and be more efficient.
If you are unable to communicate with the necessary person, it is ideal that the messages left in the voicemail are complete for the perfect understanding and identification of the reasons and how the person can return the contact if necessary.
In a phone call being professional and courteous is essential, through the tone of voice and cordiality of the attendant the attention will increase and the objectives of the call are more likely to be achieved, so throughout the call until its close, education must be the basis, because in addition to being necessary, the professional is a representative of the company that is calling, so ethics, education and cordiality are essential in any professional connection.
Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $150,000. Variable processing costs are estimated to be $7 per book. The publisher plans to sell single-user access to the book for $49. Through a series of web-based experiments, Eastman has created a predictive model that estimates demand as a function of price. The predictive model is demand
Question Completion:
What profit can be anticipated with a demand of 3,400 copies?
With a demand of 3,400 copies, what is the access price per copy that the publisher must charge to break even?
Answer:
Eastman Publishing Company
a) A loss of $7,200 can be anticipated with a demand of 3,400.
b) The access price per copy with a demand of 3,400 copies should be $51.
Explanation:
a) Data and Calculations:
Fixed cost = $150,000
Variable costs per book = $7
Selling price of single-user access per book = $49
Demand = 3,400 copies
Profit based on a demand of 3,400 copies:
Income Statement:
Sales Revenue ($49 *3,400) $166,600
Variable costs ($7 * 3,400) 23,400
Contribution margin $142,800
Fixed cost 150,000
Net loss $7,200
To break-even, the total sales revenue should be equal to the total costs. Therefore, the access price should be:
Total costs:
Fixed cost $150,000
Variable 23,400
Total costs $173,400
Sales unit 3,400
Access price = $51.00 ($173,400/3,400)
Select the correct answer.
Which of these trainings does the hospitality certification provide?
OA. ensures the safety of the food served
OB. safely serve alcohol to other individuals
OC. food has been produced and handled according to the recognized standards
OD. create the ultimate experience
Answer:
I think its all of the above or D
A fee charged by a mutual fund is
Answer:
Sometimes these fees are called: expense ratio, management fee or an operating expense. Hope this helps!
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Restin, Inc. Los Angeles Division Bay Area Division Central Valley Division Revenues $ 750,000 $ 200,000 $ 235,000 $ 325,000 Variable operating expenses 410,000 110,000 120,000 180,000 Controllable fixed expenses 210,000 65,000 75,000 70,000 Noncontrollable fixed expenses 60,000 15,000 20,000 25,000 In addition, the company incurred common fixed costs of $18,000. Assume that the Los Angeles division increases its promotion expense, a controllable fixed cost, by $10,000. As a result, revenues increased by $50,000. If variable expenses are tied directly to revenues, the new Los Angeles segment profit margin is:
Answer:
$112,500
Explanation:
With regards to the above information, we would compute first the Los Angeles division revenue.
Contribution margin
= Loss Angeles division revenues - Variable operating expenses
Los Angeles division revenues
= $200,000 + $50,000
= $250,000
Variable operating expenses
= ($110,000 × $250,000) / $200,000
= $137,500
Therefore,
Contribution margin
= $250,000 - $137,500
= $112,500
It means that if variable expenses are tied directly to revenues, the new Los Angeles profit margin would be $112,500
On June 30, 2020, Pier1 Inc. issued 500 shares of $1 common stock for $15 per share. On June 30, 2020, Pier5 Inc. reacquired 100 shares of common stock at $12 per share and immediately retired the shares. On December 15, 2020, Pier5 Inc. reacquired 200 shares of common stock at $19 per share and immediately retired the shares. By what amount did retained earnings decrease as a result of the reacquisition of common stock on December 15, 2020
Answer:
DON'T USE THAT LINK ITS A MALWARE SPAM
Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $420,000 per year for 25 years beginning today, or receiving one lump-sum amount today. Mary Alice can earn 6% investing this money. At what lump-sum payment amount would she be indifferent between the two alternatives
Answer:
The lum-sum must equal $5,369,009.59
Explanation:
Giving the following information:
First option:
Annual payment= $420,000
Number of periods= 25 years
Interest rate= 6%
First, we need to calculate the future value of the first option using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {420,000*[(1.06^25) - 1]} / 0.06
FV= $23,043,095.04
Now, to determine the lump-sum to receive today, we need to determine the present worth of the annuity:
PV= FV / (1 + i)^n
PV= 23,043,095.04 / (1.06^25)
PV= $5,369,009.59
You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. The yield to maturity on this bond is 4.6 percent. Assume semiannual compounding periods. What is the price of the bond
Answer:
Zero-cupon bond= $3,357.14
Explanation:
Giving the following information:
Par value= $10,000
Number of years to maturity= 24*2= 48 semesters
YTM= 0.046/2= 0.023
To calculate the price of the bond, we need to use the following formula:
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [10,000 / (1.023^48)]
Zero-cupon bond= $3,357.14
A prospective employer reviews an applicant's work history and personal references. In
addition, he or she may review the applicant's credit report. Why would an employer be
interested in the credit report of a job applicant when making hiring decisions?
Answer: Responsibility check.
Explanation:
A person's credit report can sometimes tell an employer what they need to know about how the prospective employee can handle responsibility because it shows how the person handles their financial obligations.
For instance, a person who's report shows is in financial distress will not be considered very responsible as opposed to some whose credit report is in good shape. To put it in perspective, would a bank like to hire a teller in financial distress? Chances are very negative for that.
d. If money demand does not depend on the interest rate, the LM curve is vertical. True False e. If money demand does not depend on income, the LM curve is horizontal. True False f. If money demand is extremely sensitive to the interest rate, the LM curve is horizontal. True False g. Suppose the government wants to change the level of output. If the LM curve is horizontal, then fiscal policy is completely ineffective, whereas monetary policy is highly effective. monetary policy
Answer:
d. True
e. False
f. True
g. True
Explanation:
Interest rate movement is based on the fiscal policy of the government. If interest rates changes there is movement in the LM curve. This is because LM curve represents money market equilibrium of real interest rates. Monetary policy is completely ineffective if the interest rates does not change since the LM curve will be horizontal.
Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following case: Graham Pharmaceuticals has a quick ratio of 2.00x, $31, 500 in cash, $17, 500 in accounts receivable, some assets of inventory, total $70,000, and total abilities of $24, 500. The company reported annual sales of $100,000 in the most recent annual report, over the past year, how often did Graham Pharmaceuticals sell and replace its inventory? a. 8.01 x.b. 5.24 x.c. 2.85 x.d. 4.75 x.The inventory turnover ratio across companies in the pharmaceutical industry is 4.05x. Based on this information, which of the following statements is true for Graham Pharmaceuticals? A. Graham Pharmaceuticals is holding less inventory per dollar of sales compared to the industry average. B. Graham Pharmaceuticals is holding more inventory per dollar of sales compared to the industry average. You are analyzing two companies that manufacture electronic toy s-Like Games Inc. and our Play Inc. Like Games was launched eight years ago, whereas Our Play is a relatively new company that has been in operation for only the past two years. However, both companies have an equal market share with sales of $100,000 each. You've collected company data to compare Like Games and our play. Last year the average companies in the coming year. You've collected data from the companies financial statements. This information is listed as follows:Using this information, complete the following statements to include in your analysis. Data collected (in dollars) Like Games Our Play Industary AverageAccounts receivable 2,700 3,900 3,850Net fixed assets 55,000 80,000 216,750Total assets 95,000 125,000 234,6001. A ____ days of sales outstanding represents an efficient credit and collection policy. between the two companies ____ is collecting cash from its customers faster than ____ but both companies are collecting their receivables less quickly than the industry average. 2. Our Play's fixed assets turnover ratio is ___ than that of Like Games. This could be because our play is relatively new company, so the acquisition cost of its fixed assets is ____ than the recorded cost of Like Games's fixed assets. 3. Like Games's total assets turnover ratio is ____ which is ___ than the industry's average total assets turnover ratio. In general, a higher total assets turnover ratio indicates greater efficiency.
Answer:
Asset Management Ratios
Part A:
1. Inventory turnover:
= d. 4.75 x
2. Based on this information, the true statement for Graham Pharmaceuticals is:
B. Graham Pharmaceuticals is holding more inventory per dollar of sales compared to the industry average.
Part B:
1. A __Average__ days of sales outstanding represents an efficient credit and collection policy. Between the two companies _Like Games__ is collecting cash from its customers faster than _Our Play_ but both companies are collecting their receivables less quickly than the industry average.
2. Our Play's fixed assets turnover ratio is _lower__ than that of Like Games. This could be because Our Play is relatively new company, so the acquisition cost of its fixed assets is _higher___ than the recorded cost of Like Games's fixed assets.
3. Like Games's total assets turnover ratio is _1.05x_ which is _higher_ than the industry's average total assets turnover ratio. In general, a higher total assets turnover ratio indicates greater efficiency.
Explanation:
a) Data and Calculations:
Graham Pharmaceuticals
Quick ratio = 2.00x
Cash = $31,500
Accounts receivable = $17,500
Inventory = x
Total current assets = $70,000
Total current liabilities = $24,500
Quick assets = $24,500 * 2 = $49,000 ($31,500 + $17,500)
Inventory (x) = $21,000 ($70,000 - $49,000)
Annual sales = $100,000
Inventory Turnover = $100,000/$21,000 = 4.76x
Part B:
Like Games Our Play Industry Average
Accounts receivable 2,700 3,900 3,850
Net fixed assets 55,000 80,000 216,750
Total assets 95,000 125,000 234,600
Sales revenue 100,000 100,000 100,000
Days Sales Outstanding 9.9 days 14.2 days 14x
Accounts receivable turnover 37x 25.6x 26x
Average Collection Period 9.9 days 14.3 days 14x
Fixed assets turnover ratio 1.82x 1.25x 0.46x
Total assets turnover ratio 1.05x 0.8x 0.43x
Average days of sales outstanding = Average Accounts Receivable/Sales * 365
Accounts receivable turnover = Net Sales/Average Receivable
Average Collection Period = 365/Accounts receivable turnover
Fixed assets turnover ratio = Net Sales/Net Fixed Assets
Total assets turnover ratio = Net Sales/Total assets
Why would it be economically efficient to require a natural monopoly LOADING... to charge a price equal to marginal cost? A. Economic efficiency requires natural monopolies to earn zero economic profits. B. Economic efficiency requires the total benefit of producing a good to equal the total cost of producing it. C. Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers equal to the average cost of producing it. D. Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers greater than the additional cost of producing it. E. Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers equal to the additional cost of producing it.
Answer:
Option C is the correct Option.
Explanation:
First of all, let me clear it to you that, it is a multiple choice question with 5 options in it.
Question Statement:
Why would it be economically efficient to require a natural monopoly to charge a price equal to marginal cost?
Solution:
The correct answer to this question is option C .
Option C = Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers equal to the average cost of producing it
Reasoning:
The marginal value of the last unit of output delivered to consumers is equal to the marginal cost of production. The overall welfare surplus is maximized, including both user and producer surpluses. There is no loss of dead weight.
Money serves three functions in the economy: medium of exchange, unit of account, and store of value.
For each of the following statements about inflation, indicate which function of money inflation is hindering.
Statement Store of value Unit of account Medium of exchange
Inflation erodes money's purchasing power.
Inflation causes menu costs.
In some countries with hyperinflation, prices are posted in terms of U.S. dollars rather than the local currency, even though the local currency is still used to purchase the good.
Answer:
medium of exchange
store of value
unit of account
Explanation:
Money is a valuable commodity and a medium of exchange. Modern economies use flat money that is not a community nor backed by the economy.
What do you mean by money as a medium of exchange?Money is a medium of exchange; allows people to get what they need to live. Trade was one of the exchanges of goods before money was created.
Like gold and other precious metals, money is a valuable commodity because to many people it represents something valuable.
About inflation, it leads the rise in prices and services and is a reason of the production of goods and services also gets affected in the economy.
Hence, Inflation affects the flow of money in the economy by reducing the purchasing power of clients.
To learn more about money as medium of exchange, refer:
https://brainly.com/question/25965295
Nutcracker, Inc has forecast sales for the next three months as follows: July 4,000 units, August 6,000 units, September 7,500 units. Nutcracker's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,500 units. Selling and administrative costs are budgeted to be $15,000 per month plus $5 per unit sold. What are budgeted selling and administrative expenses for July
Answer:
$35,000
Explanation:
Use the provided cost formula :
Selling and administrative expense = $15,000 + $5y
where,
y is the number of units sold
Therefore,
Selling and administrative expense = $15,000 + $5 x 4,000 units
= $35,000
rationing a product by coupons when recipients are allowed to sell them will cause
Implying Bad News (L.O. 3) YOUR TASK Revise the following statements to imply the bad news. If possible, use passive-voice verbs and subordi-nate clauses to further de-emphasize the bad news. DIRECT REFUSAL: We cannot send you a price list, nor can we sell our lawn mowers directly to customers. We sell only through authorized dealers, and your dealer is HomeCo. IMPLIED REFUSAL: Our lawn mowers are sold only through authorized dealers, and your dealer is HomeCo.
a. We are sorry to tell you that we cannot ship our hand-dipped chocolate-covered fresh strawberries c.o.d. Your order was not accompanied by payment, so we are not shipping it. We have it ready, though, and will rush it to its destination as soon as you call us with your credit card number.
b. Unfortunately, we find it impossible to contribute to your excellent and worthwhile fund-raising campaign this year. At present all the funds of our organization are needed to lease equipment and offices for our new branch in Scottsdale. We hope to be able to support this commendable endeavor in the future.
c. Because of the holiday period, all our billboard space was used this month. Therefore, we are sorry to say that we could not give your charitable group free display space. However, next month, after the holidays, we hope to display your message as we promised.
Answer:
Implying Bad News
Direct Refusal Implied Refusal
a. Our hand-dipped chocolate-covered fresh strawberries
are prepaid before delivery.
b. Our contribution to your fundraising campaign will not be
forthcoming this year.
c. Our billboard space was used up this month. We shall
display your message from next month.
Explanation:
Implied refusal or bad news is a manner of indirectly presenting information such that the refusal or bad news is not explicitly stated. This implies that the message is coded by the sender to lessen the bad effect on the recipient. It is only left for a discerning recipient to untangle the truth behind the message.