Answer:
Credited
Explanation:
Equity Account increase on the credit side and decrease on the debit side.
So, when the account increased, we say it has been credited. This means further stock has been issued to new or existing owners.
Firms must compete for top talent. In attracting and selecting employees, firms must strive to select the best fit for both the employee and the firm. In an attempt to reduce wasted time and effort in interviewing too many candidates while assuring a good candidate pool, a firm should
Answer:
use a pre-interview quiz or "bozo filter"
Explanation:
Based on the needs of the firm in this scenario it can be said that the firm should use a pre-interview quiz or "bozo filter". These are quizzes or survey which all candidates must fill out when applying for the specific position, those that do not meet the requirements/standard set by the firm do not pass this section and the firm does not receive the application. This will prevent the firm from wasting time on candidates that will not be a good fit.
According to the liquidity premium theory of the term structure of interest rates, if the one-year bond rate is expected to be 4%, 5%, and 6% over each of the next three years, what is the interest rate on a three-year bond if the liquidity premium on a three-year bond is 0.5%
Answer:
Interest rate on the a three year bond =5.5%
Explanation:
one-year bond rate expected = 4%, 5%, 6% for the next three years
liquidity premium on a three year bond = 0.5%
number of years = 3
The interest rate on the a three year bond can be calculated as
= liquidity premium + ( summation of bond rates for the next three years/number of years )
= 0.5 + ( (4+5+6)/3)
= 0.5 + ( 15/3)
= 0.5 + 5 = 5.5%
A company has net income of $182,000, a profit margin of 10.00 percent, and an accounts receivable balance of $106,201. Assuming 75 percent of sales are on credit, what is the company's days' sales in receivables?
Answer:373
Explanation:
i think it is beause you do youe calater
Assume that on January 1, 2015, a parent purchases a subsidiary with a book value of stockholders’ equity of $1,000,000 for $1,500,000. To finance the purchase, the parent issues 50,000 shares of its $1 par common stock having a market value of $30 per share and exchanges those shares with the sub’s stockholders for all of the sub’s voting shares that they own. At the date of acquisition, the sub’s book values approximated fair values except for two items. PP&E was undervalued by $200,000 and the sub had developed a patent internally that the parent estimates had a fair value of $175,000. The expected useful life of the patent is 10 years and the PP&E has a remaining useful life of 20 years. During the year ended December 31, 2015, the first year after the acquisition, the sub reported sales of $1,500,000; COGS was $900,000 and operating expenses were $390,000. The sub also paid a dividend of $31,500 to the parent. Using the Equity Method to account for the business combination both at, and subsequent to, the acquisition, determine the allocation of the excess fair value and make the appropriate journal entries to record the acquisition and 2015 activity.
Answer:
Journal entries are given below;
Explanation:
January 2015
Investment in Subsidiary (Dr.) $1500,000
Share Capital (Cr.) $50,000
Share Premium (Cr.) $1450,000
To record investment in Subsidiary
Revaluation reserve (Dr.) $200,000
PP&E (Cr.) $200,000
To record devaluation of PP&E
Patent - Intangible Asset (Dr.) $175,000
Revaluation reserve (Cr.) $175,000
To record the patent generated internally
December 2015
Amortization expense (Dr.) $17,500
Intangible Asset (Cr.) $17,500
Dividend Income (Dr.) $31,500
Investment (Cr.) $31,500
Victor Rumsfeld Inc.'s dividend policy is under review by its board. Its projected capital budget is $2,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $600,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out? Select the correct answer. a. $7,560 b. $1,890 c. $0 d. $5,670 e. $3,780
Answer:
The residual dividend is -$200,000, therefore If the company follows a residual dividend policy the total dividends will be $0
Explanation:
In order to calculate the total dividends, if any, will it pay out, we would have to calculate first the residual dividend a follows:
residual dividend=forecasted net income-(percentage equity*capital budget)
According to the given data we have the following:
forecasted net income=$600,000
percentage equity=40%
capital budget=$2,000,000
Therefore, residual dividend=$600,000-(40%*$2,000,000)
residual dividend=-$200,000
The residual dividend is -$200,000, therefore If the company follows a residual dividend policy the total dividends will be $0
Earnhardt Driving School’s 2018 balance sheet showed net fixed assets of $3 million, and the 2019 balance sheet showed net fixed assets of $3.7 million. The company’s 2019 income statement showed a depreciation expense of $200,000. What was the company's net capital spending for 2019? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
Answer:
$800,000
Explanation:
Calculation for Earnhardt Driving School’s net capital spending for 2019
Ending Fixed Assets $3,700,000
Less Beginning Fixed Assets ($3,000,000)
Balance $700,000
Add Depreciation $200,000
Net Capital Spending $800,000
Therefore Earnhardt Driving School’s net capital spending for 2019 will be $800,000
As a firm buys more capital and less labor, the marginal physical product of capital __________ and the marginal physical product of labor __________, assuming the law of diminishing marginal returns has set in for each factor.
Answer:
As a firm buys more capital and less labor, the marginal physical product of capital ___decreases_______ and the marginal physical product of labor ___increases______, assuming the law of diminishing marginal returns has set in for each factor.
Explanation:
In Economics, the law of diminishing returns states that when one production input is increased while the other input is held constant, the marginal production per the increasing input will decrease relatively to the marginal production of the fixed input.
Effectively, this economic law recognizes that increasing one input while allowing the other inputs to be constant will produce diminishing increase in total output. This law is also called the principle of diminishing marginal productivity. It is very helpful in decision making to enable management balance production inputs in order to achieve maximum outcomes.
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 23 years to maturity, and a coupon rate of 3.8 percent paid annually. If the yield to maturity is 4.7 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Bond Price = 875.0948 euro rounded off to 875.09 euro
Explanation:
To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 1000 * 0.038 = 38 euro
Total periods (n)= 23
r or YTM = 0.047 or 4.7%
The formula to calculate the price of the bonds today is attached.
Bond Price = 38 * [( 1 - (1+0.047)^-23) / 0.047] + 1000 / (1+0.047)^23
Bond Price = 875.0948 euro rounded off to 875.09 euro
A 1,000 loan is to be repaid with equal payments at the end of each year for 20 years. The principal portion of the 13th payment is 1.5 times the principal portion of the 5th payment. Calculate the total amount of interest paid on the loan
Answer:
$632
Explanation:
using an excel spreadsheet I prepared an amortization schedule
The interest charged was 5.2% per year and the yearly payment will be $81.60. The principal portion of the fifth payment = $36.25 and the principal portion of the thirteenth payment = $54.38 (1.5 times the principal paid at the end of year 5).
total interests paid = $632
g "A company with an operating income of $88,000 and a contribution margin ratio of 70% has a margin of safety of: "
Answer:
$125,714
Explanation:
Calculation for A company margin of safety
Using this formula
Margin of safety =Operating net income ÷contribution margin ratio
Let plug in the formula
Margin of safety =$88,000 ÷ 0.70
Margin of safety= $125,714
Therefore A company margin of safety will be $125,714
Data from the financial statements of Crafty Crafts and Hobbies, Inc. are presented below (in millions): Crafty Crafts Hobbies, Inc. Total liabilities, 2016 $31,957 $25,461 Total liabilities, 2015 36,104 30,046 Total assets, 2016 46,186 32,872 Total assets, 2015 46,514 35,208 Net sales, 2016 161,466 81,702 Net income, 2016 1,040 1,766 To the nearest hundredth of a percent, what is the 2016 return on assets ratio for Crafty Crafts
Answer:
Crafty Crafts:
Return on Assets Ratio = Net Income/Average Assets x 100
= $1,040/46,350 x 100
= 2.2%
Explanation:
a) Data
Crafty Crafts Hobbies, Inc.
Total liabilities, 2016 $31,957 $25,461
Total liabilities, 2015 36,104 30,046
Total assets, 2016 46,186 32,872
Total assets, 2015 46,514 35,208
Net sales, 2016 161,466 81,702
Net income, 2016 1,040 1,766
b) Average Assets:
Crafty Crafts = (2016 + 2015 assets)/2 = ($46,186 + 46,514)/2 = $46,350
c) The Return on Assets Ratio: This financial performance ratio shows how much of the earnings is generated from the assets of the company in a particular period. It shows the efficiency of management to generate profit from the assets. Usually, the average assets value is used to even the variations over the period.
Tuliptime, Inc. sold American fashions to a Japanese company at a price of 3.3 million yen. On the sale date, the exchange rate was $0.01 per Japanese yen, but when Tuliptime received payment from its customer, the exchange rate was $0.0103 per yen. When the foreign receivable was collected, Tuliptime:_______A. Credited Sales for $1,170.
B. Credited Gain on Fluctuation of Foreign Currency for $1,170.
C. Debited Loss on Fluctuation of Foreign Currency for $1,170.
D. Debited Cash for $39,000.
Answer:
B. Credited Gain on fluctuation of foreign currency for $1,170
Explanation:
The journal entry to record the collection of foreign receivables is provided
Account Titles and Explanation Debit Credit
Cash 40,170
(3,900,000 * 0.0103)
Foreign reserve 39,000
(3,900,000 * 0.01)
Gain of fluctuation of foreign currency 1,170
(3,900,000 * 0.0003)
Hence, the correct option is Credited Gain on fluctuation of foreign currency for $1,170
The journal entry to record the transfer of 1,600 units of part number 1177 with a value of $2.50 each, to work in process is Group of answer choices Work in Process 4,000 Materials 4,000 Work in Process 4,000 Factory Overhead 4,000 Work in Process 4,000 Cash 4,000 Materials 4,000 Work in Process 4,000
Answer:
The correct option is:
Work in Process 4,000 Materials 4,000
Explanation:
The total cost of the part= $2.50*1,600 units
The total cost of the part=$4,000
Going by the rule of the double which requires receiving account to debited while giving account is credited, we debit work-in-process with $4,000 while materials(inventory in the balance sheet) is credited with the same amount of $4,000.
One problem that communication, learning, and employee involvement have in minimizing resistance to change is that they:__________.
Answer: D. Are Time Consuming
Explanation:
Communication, Teaching employees and involving them in policies are very useful tools in reducing employee resistance to trade but they can be quite time consuming. Having to communicate explain every change to employees, why it is to be done and how it will be of benefit will take time that could have been spent producing results.
Also involving them in key decision making can have the same temporal effect because the decisions will have to go through more people than before to be approved. The process will become more bureaucratic.
Ward Doering Auto Sales is considering offering a special service contract that will cover the total cost of any service work required on leased vehicles. From experience, the company manager estimates that yearly service costs are approximately normally distributed, with a mean of $150 and a standard deviation of $25.
a. If the company offers the service contract to customers for a yearly charge of $200, what is the probability that any one customer’s service costs will exceed the contract price of $200?
b. What is Ward’s expected profit per service contract?
Answer:
a. The probability that any one customers service costs will exceed the contract price of $200 is 0.0228
b. Warda expected profit per service contract is $50
Explanation:
a. In order to calculate the probability that any one customers service costs will exceed the contract price of $200 we would have to calculate first the z value as follows:
z=x-μ/σ
z=$200-$150/$25
z=2
Therefore, probability that any one customers service costs will exceed the contract price of $200 is p(x>$200)=p(z>2)
=1-p(z≤2)
=1-0.9772
=0.0228
The probability that any one customers service costs will exceed the contract price of $200 is 0.0228
b. To calculate Warda expected profit per service contract we would have to make the following calculation:
Warda expected profit per service contract=service charge per contract-expected cost
Warda expected profit per service contract=$200-$150
Warda expected profit per service contract=$50
Warda expected profit per service contract is $50
A firm sells peanuts in a perfectly competitive market. Upon increasing production output from 60 packages to 75 packages, the total revenue increased from $300to $375. What was the marginal revenue of this increase in production
Answer:
$5
Explanation:
The computation of marginal revenue is shown below:-
Marginal revenue = Change in total revenue ÷ Change in output
= ($375 - $300) ÷ (75 - 60)
= $75 ÷ 15
= $5
The marginal revenue could be computed by dividing the change in total revenue from the change in output so that the increased in production could come
Price Manufacturing assigns overhead based on machine hours. The Milling Department logs 1,800 machine hours and Cutting Department shows 3,000 machine hours for the period. If the overhead rate is $5 per machine hour, the entry to assign overhead will show a:
Answer and Explanation:
The Journal entry is shown below:-
Work in progress Dr, $24,000
To Manufacturing Overhead $24,000
(Being the overhead assigned is recorded)
For recording this we debited the work in process as it increased the assets and credited the manufacturing overhead for assigning the overhead
Working note
Overhead amount = (Milling Department + Cutting department) × Overhead rate
= (1,800 + 3,000) × $5
= $4,800 × $5
= $24,000
The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Department A and on machine-hours in Department B. At the beginning of the year, the Corporation made the following estimates: Department A Department B Direct labor cost $ 60,000 $ 40,000 Manufacturing overhead $ 90,000 $ 45,000 Direct labor-hours 6,000 9,000 Machine-hours 2,000 15,000 What predetermined overhead rates would be used in Department A and Department B, respectively?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Department A:
Direct labor cost= $60,000
Manufacturing overhead= $90,000
Department B:
Manufacturing overhead= $45,000
Machine-hours= 2,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Department A:
Predetermined manufacturing overhead rate= 90,000/60,000
Predetermined manufacturing overhead rate= $1.5 per direct labor dollar
Department B:
Predetermined manufacturing overhead rate= 45,000/2,000= $22.4 per machine-hour
Suppose that in 2017, a typical U.S. student attending a state-supported college bought 10 textbooks at a price of $110 per book and enrolled in 30 credit hours of coursework at a price of $350 per credit hour. In 2018, the typical student continued to purchase 10 textbooks and enroll in 30 credit hours, but the price of a textbook rose to $120 per book, and the tuition price increased to $390 per credit hour. The base year for computing a "student price index" using this information is 2017.
Required:
What is the value of the student price index in 2017? In 2018? Show your work.
Answer:
2017 Price Index is 1002018 Price Index is 111Explanation:
The Price Index for any given Base year is always 100. 2017 is staed to be the base year so it's price index is 100.
2018
The Student Price Index can be calculated using the formula;
SPI = [tex]\frac{cost of basket of goods in the year of interest}{Cost of the basket of goods in the base year} * 100[/tex]
= [tex]\frac{(10 * 120) + (30* 390)}{(10 * 110) + (30 * 350)}[/tex] * 100
= [tex]\frac{12,900}{11,600} * 100[/tex]
= 111.21
= 111
The manager of a canned-food processing plant has two labeling machine options. On the basis of a rate of return analysis with a MARR of 20% per year, determine (a)
The manager of a canned-food processing plant has two labeling machine options. on the basis of a rate of return analysis with a marr of 20% per year, determine (a) which model is economically better, and (b) if the selection changes, provided both options have a 4-year life and all other estimates remain the same.
Answer:
The answer is below
Explanation:
First, compare the present values (PV) of all the expenses of all the investments to make an investment decision.
Given the formula of PV = ((C1/(1+r)1) + ((C2/(1+r)2) + ((C3/(1+r)3) +…….+ ((Cn/(1+r)n) + present value of investment – present value of the salvage value
Where, Cn equals to the expense incurred in the nth period and r is the rate of interest per period.
Therefore, for Machine A, present value of the expenses is
= ((1600/(1+0.20)1) + ((1600/(1+0.20)2) + 15,000 – ((3000/(1+0.20)2)
= 1333.33 + 1111.11 + 15000 – 2083.33
= 15361.11
For Machine B, present value of the expenses is
= ((400/(1+0.20)1) + ((400/(1+0.20)2) + ((400/(1+0.20)3) + ((400/(1+0.20)4) + 25,000 - ((4000/(1+0.20)2)
= 333.33 + 277.77 + 25,000 – 2777.77
= 22833.33
Therefore, it is shown that, Machine A is the least cost alternative and should be selected.
You are developing the project charter for a new project. Which of the following
is NOT part of the enterprise environmental factors?
✓
A) Lessons learned from previous projects
B) The work authorization system
C) Government and industry standards that affect your project
D) Knowledge of which departments in your company typically work on projects
Answer: A) Lessons learned from previous projects
Explanation:
Enterprise Environmental Factors (EEF) refers to all environmental factors that have a say in whether a project is successful or not. They include both internal factors such as company infrastructure, knowledge and capability (departments with the knowledge on project design and implementation) and internal project authorization systems as well as external factors such as Government standards and market conditions.
Lessons learned from previous projects, while important, are not included in this list and are not Enterprise Environmental Factors.
The city of Albuquerque, New Mexico, designed a computer-based restaurant recommendation system that helps visitors find a restaurant that needs their particular needs. Visitors answer questions about their preferences for price range, atmosphere, food selections, and location and then receive a list of restaurants that fit those preferences. This is a(n) _______________ system.
Answer:
Expert system
Explanation:
This is an expert system. Such a system is a computer program that follows the behavior of an expert such as helping visitors find a restaurant that needs their particular needs.
Such Expert systems can be useful in solving difficult problems, explaining result, they can be used to learn also.
The percentage analysis of increases and decreases in individual items in comparative financial statements is called
Answer:
Horizontal analysis
Explanation:
Horizontal analysis is the analysis of financial statements , comparison of financial ratios, or line items over accounting periods.
At the end of the current year, Accounts Receivable has a balance of $430,000; Allowance for Doubtful Accounts has a credit balance of $4,000; and sales for the year total $1,940,000. Bad debt expense is estimated at 1/4 of 1% of sales. 1. Determine the amount of the adjusting entry for uncollectible accounts. $ 2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ 430,000 Allowance for Doubtful Accounts $ Bad Debt Expense $ 3. Determine the net realizable value of accounts receivable.
Answer:
1. Amount of the adjusting entry for uncollectible accounts:
$4,850
Debit Bad Debts Expense $4,850
Credit Allowance for Doubtful Accounts $4,850
To record bad debts expense for the year.
2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense:
Accounts Receivable:
Balance as per question = $430,000
Allowance for Doubtful Accounts:
Balance as per question = $4,000
Bad Debt Expense - $4,850
Adjusted balance $8,850
Bad Debt Expense:
Adjustment $4,850
3. The net realizable value of Accounts Receivable:
Accounts Receivable balance $430,000
less Allowance for Doubtful $8,850
Net Realizable Value $421,150
Explanation:
a) Bad Debt Expense = ($1,940,000 x 1%)/4 = $4,850
b) The amount of the adjusting entry for uncollectibles is the bad debt expense of $4,850.
c) The Allowance for doubtful accounts will increase by $4,850 to $8,850.
d) The net realizable value of the accounts receivable is the difference between the accounts receivable balance and the allowance for doubtful accounts. This is the estimated value that the company expects to realize after considering the probability of uncollectibles.
When preparing Schedule M-1 of Form 1120, which of the following must be added to net income per books to compute taxable income?
a. 100% of meals and entertainment expense
b. Muncipal bond interest
c. Excess of tax vs. book depreciation
d. Accrued bad debts
Answer:
d. Accrued bad debts
Explanation:
The Schedule M-1 of Form 1120 refers to the tax form in which the corporation disclosed its income, expenses and deductions if any by analyzing them in different columns
If there is any difference in the amount the changes could be made in the form
In the given case while computing the taxable income, the accrued bad debts should be added to the net income as per the books
As the VP of Global Marketing, what business objective do you want Holden Evan to achieve in Tuatara? Any choice will bring its own challenges and rewards and can lead you to success.
Answer:
The business objective that I want Holden Evan to achieve in Tuatara is to sell their products throughout the Tuatara territory.
Explanation:
As the VP of Global Marketing, the business objective that i want Holden Evan to achieve in Tuatara is to sell their products throughout the Tuatara territory reason been that Holden Evan is a multinational corporation that deal in selling of beauty products as well as other consumer goods and since Tuatara is an emerging market for consumer products, this means that Holden Evan’s main aim and objective in Tuatara territory should be to manufacture and sell their products throughout the Tuatara territory.
During the month of July, Clanton Industries issued a check in the amount of $934 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:
Answer: deduct the check amount from the bank balance
Explanation:
From the question, we are informed that during the month of July, Clanton Industries issued a check in the amount of $934 to a supplier on account but the check did not clear the bank during July.
Since we are told that the check did not clear the bank in July, when preparing the July 31 bank reconciliation, the company should make sure that the amount on the check is deducted from the balance of the bank.
Harvey is planning to file a case against a petrochemical giant that has a plant in his town. The petrochemical plant is dumping toxic wastes into its surrounding areas. Harvey is mobilizing the residents of the town, all of whom have suffered from various health problems due to the activities of the plant. Which of the following would be of most help to Harvey and the other residents?
A. Affirmative defense
B. Class action
C. Demurrer
D. Directed verdict
Answer:
B. Class action
Explanation:
In this scenario, Harvey is planning to file a case against a petrochemical giant that has a plant in his town because the petrochemical plant is dumping toxic wastes into its surrounding areas. Sequel to this, Harvey is mobilizing the residents of the town, all of whom have suffered from various health problems due to the activities of the plant.
Hence, a class action would be of most help to Harvey and the other residents.
In Law, a class action is a type of lawsuit in which a collective group of people (plaintiffs) having similar injuries or suffering similar damages caused by a particular company's product or action sue the defendant on behalf of a larger group. This simply means that, the group of people (plaintiffs) have a common interest as a result of sharing similar actions from an event.
Hence, the larger group that is being represented by Harvey is referred to as the "class" in business law.
Additionally, it is required by law that the class attest to the fact that they were affected by the actions of the petrochemical plant (defendant).
In transaction E on 5/14 the account that will increase is the
Answer:
The answer is "Rent Expense account, which is an expense account".
Explanation:
When the cost for rent is deal with an account so, the detailing the cost of renting apartments over the reporting period. Its costs are normally assigned between both the revenue statement's sale and administrative expenses as well as those of manufacture. In this the actual costs usually involve operating expenses, real costs could also be considered.
Which of the following statements about productivity shifts and wages is true?
Answer:
Adjustments of wages to productivity levels are often not quick.
Explanation:
Hope this helps :)