Answer:
1.22 years
Explanation:
The formula for calculating number of years:
FV / PV = (1 + r)^ n
FV = Future value
P = Present value
R = interest rate
N = number of years
at the first bank
$15700 / $5600 = (1.091)^n
2.80 = (1.091)^n
n = In 2.8 / In 1.091
to find n, take the IN of both sides
1.029619 / 0.08709 = 11.82 years
at the second bank
$15700 / $5600 = (1.091)^n
2.80 = (1.102)^n
n = n = In 2.8 / In 1.102
= 10.6 years
11.82 - 10.6 = 1.22 years
Martin transfers real estate with an adjusted basis of $260,000 and fair market value of $350,000 to a newly formed corporation in exchange for 100% of the stock. The corporation assumes the liability on the transferred real estate in the amount of $300,000. Determine Martin’s recognized gain on the transfer and the basis for his stock.
Answer:
$40,000
Explanation:
We can calculate recognized gain on the transfer and basis for his stock just by deducting adjusted basis value from liability on the transfered real estate.
Calcuation
iability on the transfered real estate $300,000
less: adjusted basis value ($260,000)
Gain recognized $40,000
Answer:
Therefore, the gain on the transfer is $40,000
Explanation:
Calculation of Martins gain
Particulars Amount
Liability on the transferred real estate $300,000
Less: adjusted real basis value $260,000
Recognized gain $40,000
Therefore, the gain on the transfer is $40,000
The annual average CPI for 2016 was 240.5. If the CPI for 2010 was 218.1, then what was the inflation rate for the years 2010-2016 (%)
Answer: 9.31%
Explanation:
The Consumer Price Index (CPI) is able to check the price change per year by pricing a fixed basket of goods in different years. It can be used to calculate inflation with the formula;
Inflation rate = (CPI target year - CPI base year / CPI base year) *100
= [tex]\frac{240.5-218.1}{218.1} * 100%[/tex]
=9.31%
The user of a(n) ________ conflict style assertively attempts to resolve conflict by working together with the other person to find an acceptable solution.
a. Avoiding
b. Accommodating
c. Negotiating
d. Collaborating
Answer:
d. Collaborating
Explanation:
The user of a collaborating conflict style assertively attempts to resolve conflict by working together with the other person to find an acceptable solution. It is one of the most commonly used conflict resolving styles, reason why it is also referred to as the problem solving style.
Individuals engaging in a collaborating conflict style are usually very cooperative and assertive in the process of resolving the problem.
This ultimately implies that, it usually leads to a peaceful resolution and arguably the best conflict resolving method. Also, individuals participating are availed the best opportunity.
To develop compensation systems for workers, managers should: use all the information available about the workers regardless of the cost of obtaining the information use all the information available only if managers have a concern about the performance of workers. not use any information available if workers are paid efficiency wages. None of the above
Answer:
The correct answer is A
Explanation:
Performance and compensation go hand in hand. To know design a compensation system that takes into account all the information about one's workers is to create suitable compensation for that company.
For instance, the manager should know whether it is non-financial rewards that its management want. Sometimes, staff don't care about official cars, and fantastic health insurances. They just want a great take-home package.
The manager must know this information at all costs. To ignore is to risk the loss of staff, valuable time and even position in the industry.
Cheers!
Ennis, Inc. has 35,000 common shares issued at a $2.25 par value of which 22,000 are outstanding. If Ennis has no other outstanding stock, what size dividend must be paid such that each share receives $3.20
Answer:
$70,400
Explanation:
The company has:
Number of Shares = 35,000
Par value = $2.25
Outstanding = 22,000
The question requires that we find the size of dividend that must be paid if each share receives $3.20:
Only Outstanding shares are included in dividends contribution.
So to pay 22,000 shares at $3.20
= 22,000 x $3.20
= $70,400
Pearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 10%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 13.00%. What is Pearson's cost of common equity
Answer:
0.175 or 17.5%
Explanation:
The calculation of the cost of common equity is shown below:-
WACC = Weight of Equity × Cost of Equity + Weight of Debt × ( 1- Tax rate) × Cost of Debt
0.13 = (0.55 × Cost of equity) + ((0.45 × (1 - 0.25) × 0.10)
0.13 = (0.55 × Cost of equity) + 0.045 × 0.75
(0.55 × Cost of equity) = 0.13 - 0.03375
(0.55 × Cost of equity) = 0.09625
Cost of equity = 0.09625 ÷ 0.55
= 0.175
Therefore for computing the cost of equity we simply applied the above formula.
The Cash account of Gate City Security Systems reported a balance of $2,530 at December 31, 2018. There were outstanding checks totaling $ 500 and a December 31 deposit in transit of $ 400. The bank statement, which came from Park Cities Bank, listed the December 31 balance of $3,120. Included in the bank balance was a collection of $ 500 on account from Jane Lindsey, a Gate City customer who pays the bank directly. The bank statement also shows a $20 service charge and $ 10 of interest revenue that Gate City earned on its bank balance.
Requried:
Prepare Gate City's bank reconciliation at December 31.
Answer:
Gate City Security Systems
Bank Reconciliation at December 31, 2018
Book:
Balance , December 31, 2018 $2,530
Add:
Collection from Jane Lindsey $500
Interest revenue $10
Less:
Service charges $20
Adjusted book balance December 31, 2018 $3,020
Bank:
Balance , December 31,2018 $3,120
Add:
Deposit in transit $400
Less:
Outstanding cheque $500
Adjusted bank balance December 31, 2018 $3,020
g Sheridan Company received $135000 in cash and a used computer with a fair value of $318000 from Carla Vista Co. for Sheridan Company's existing computer having a fair value of $453000 and an undepreciated cost of $420300 recorded on its books. The transaction has no commercial substance. How much gain should Sheridan recognize on this exchange, and at what amount should the acquired computer be recorded, respectively
Answer:
How much gain should Sheridan recognize on this exchange,
$32,700and at what amount should the acquired computer be recorded, respectively
the new computer should be recorded at $318,000Explanation:
Since the cash received ($135,000) represents more than 25% of the asset exchange, this transaction must be recorded as a cash sales.
Journal entry to record the transaction:
Dr Cash 135,000
Dr Computer, new 318,000
Dr Accumulated depreciation - computer, old 32,700
Cr Computer, old 453,000
Cr Gain on asset exchange 32,700
Darin has a tax basis of $7,000 and an at-risk amount of $5,000 in a partnership where he is a 25% owner. The partnership incurred a loss of $40,000 in the current year. How much of the loss will be allocated to Darin and how much will he be able to deduct in the current year assuming he materially participates in the business
Answer:
Darin will have a $10000 and also he will be able to deduct $5,000.
Explanation:
Solution
Recall that:
Darin tax basis =$7000
Risk amount = $5000
Loss incurred = 40,000 (current year)
Ownership =25%
Now
With regards to his share the loss will be 25% of $40000, that is $10000 and he will be able to deduct only $5000 because of his at-risk amount is this and as per Sec. 465.
Or
40000 * 25% = $10000
He will deduct $5000 from $10000 only
Hence $10,000 of the loss will flow-through to Darin, and he will be able to deduct $5,000.
On January 1, 2019, Brooks, Inc., borrows $90,000 from a bank to purchase machinery. Brooks signs a 5 percent installment note requiring four annual payments of principal plus interest.
Required:
Complete the necessary journal entry
Answer:
A Journal entry for Brooks Incorporation on January 1, 2019 which is shown below
Explanation:
Solution
Given that:
JOURNAL ENTRY FOR BROOKS INCORPORATION
Date General Journal Debit Credit
Jan 01 2019 Cash 90000
Notes Payable 90000
Thus
A Journal entry was recorded for Brooks Incorporation.
Here, the cash of $90,000 was recorded at the debit side of the Journal.
While the notes payable of $90,000 was also recorded on the credit side
What is the nominal interest rate (k) of a 5-year U.S. Treasury bond with a real risk-free rate of interest of 1% and inflation expected to be at 3.5% per year
Answer:
The nominal interest rate is 4.50%
Explanation:
Nominal interest=real interest rate+inflation rate
The real interest rate is the return earned by an investor without considering the inflation rate in the economy which is 1%
inflation rate is the movement in prices of goods and services in the economy i.e 3.5%
nominal interest rate=1%+3.5%
nominal interest rate=4.5%
What is the largest single influence on the movement toward uniformity in the global youth market?
A. mass media
B. education
C. work
D. travel
E. religion
Answer:
The correct answer is the option A: Mass media.
Explanation:
To begin with, nowadays the mass media has increased in the world in a huge and dramatically number. It is possible now, for everyone to start a production of content that will be in the social medias and will affect definitily to everyone involved in the content and furthermore, the youth is now more conected than ever and the use of those medias are more common and easy for them so they see each other very affected by the use of it and all of the content that is in those medias. That is why that the largerest single influence on the movement toward uniformity in the global youth market is mass media.
The following items were selected from among the transactions completed by O’Donnel Co. during the current year:
Jan. 10. Purchased merchandise on account from Laine Co., $240,000, terms n/30.
Feb. 9. Issued a 30-day, 4% note for $240,000 to Laine Co., on account.
Mar. 11. Paid Laine Co. the amount owed on the note of February 9.
May 1. Borrowed $160,000 from Tabata Bank, issuing a 45-day, 5% note.
June 1. Purchased tools by issuing a $180,000, 60-day note to Gibala Co., which discounted the note at the rate of 5%.
15. Paid Tabata Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $160,000. (Journalize both the debit and credit to the notes payable account.)
July 30. Paid Tabata Bank the amount due on the note of June 15.
30. Paid Gibala Co. the amount due on the note of June 1.
Dec. 1. Purchased office equipment from Warick Co. for $400,000, paying $100,000 and issuing a series of ten 5% notes for $30,000 each, coming due at 30-day intervals.
15. Settled a product liability lawsuit with a customer for $260,000, payable in January. O’Donnel accrued the loss in a litigation claims payable account.
31. Paid the amount due Warick Co. on the first note in the series issued on December 1.
Required:
a. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.
b. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
1. Product warranty cost, $23,000.
2. Interest on the nine remaining notes owed to Warick Co. Assume a 360-day year.
Answer:
Explanation:
Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.
The solution to the above has been attached.
b. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
The solution to the question has been attached.
It should be noted that:
March 11: Interest Expense was calculated as:
= ($240,000 × 30/360 × 4%)
= $240,000 × 0.0833 × 0.04
= 800
Check the attached file
If Push Company owned 51 percent of the outstanding common stock of Shove Company, which method would be appropriate for financial reporting purposes?
Answer:
Consolidation
Explanation:
Holding method is required for the parent company for financial reporting if the parent company owns 51 percent of more outstanding common stock in the subsidiary.
Here consolidate refers to the combining of total assets and liabilities of two or more entities into one so that it could be maintained as a one firm
Therefore for financial reporting consolidation is appropriate
________ capital can be defined as the difference between the market value and book value of a firm, or a measure of its intangible assets.
Answer:
Intellectual
Explanation:
Intellectual capital refers to the capital in which the intangible assets should be considered with respect to the relationship, relative capital invested in the company
Therefore in the given case it is a measure of an intangible assets and shows the difference between the market value and the book value of a firm
Starting from a long run steady state equilibrium, significant increase in individual income taxes was announced. In the long run after market adjustments the economy will
A. experience a small deflation but aggregate output returns to the potential output level.
B. experience a small inflation but aggregate output returns to the potential output level.
C. experience a large inflation but aggregate output remains less than the potential output level.
D. experience a large deflation but aggregate output remains less than the potential output level.
Answer:
A
Explanation:
Here, we want to know what will happen in the long run after market adjustments when we start from a long run steady state equilibrium.
An increase in income taxes will shift the adjustment to the left. This will cause deflation.
After this adjustment, the net effect will be a small deflation, but output returns to potential level.
Suppose that the risk free rate is 5 and the market portfolio has an expected return of 13 with a volatility of 18 Monsters Inc has a 24 volatility and a correlation with the market of 60 while California Gold Mining has a 32 volatility and a correlation with the market of 7 Assume the CAPM assumptions hold. Monsters' required return is closest to:
a. 15.5%
b. 11.5%
c. 13.0%
d. 10.0%
Answer:
The answer is option (b) 11.5 %
Explanation:
Solution
Given that
Risk free rate =Rf
= 5%
The market portfolio expected return is = E[Rm]
= 13%
Volatility or standard deviation of market return=σm
=18%
Volatility or standard deviation of Monsters' Inc. return =σi
=24%
The correlation of Monsters' Inc. return with the market = 0.6
Thus
Beta of Monsters' Inc. is computed by applying the formula shown below:
βi =Cov (i,M)/σ²m =ρ * σi *σm/σ²m
= ρ * σi/ σm
Here,
Cov(i,m) is the Covariance between the stick and the market return which is given by the formula below:
Cov(i,m) = ρ* σi*σm
ρ refers to the correlation between the stock i return and Market return
Hence, Beta of Monsters' Inc. becomes:
βi = (0.6*24%)/18% = 0.8
Now we compute the required return on Monsters Inc we will use the CAPM Equation given as:
CAPM Equation:
E[Ri] = Rf + βi*(E[Rm]-Rf)
So,
The Required return on Monsters' Inc. stock = E[Ri] =5% + 0.8*(13% - 5%)
= 5%+6.4%
=11.4%
Therefore Monsters' required return is nearest to: 11.4 % or 11.5%
Bibby Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Bibby estimated that the total overhead costs would be $72,000 and that the total labour hours would be 2,400. At the end of the year, Bibby obtained the actual overhead costs from the ledger and found that the shop had incurred $65,800 and had worked 2,350 labour hours.
1. Compute the redetermined (budgeted) overhead rate.
Overhead Rate:__________.
2. Compute the overhead amount that was applied for the year.Was overhead under applies or over applied?
3. Prepare the journal entry to close the overhead account. Assume that the underapplied and overapplied overhead was not material.
Answer:
Answer:
1.) Overhead Absorption rate= $30 per hour
2) Absorbed overhead= $70,500
Over-absorbed overhead=$4700
3) Journal entry:
Debit Manufacturing overhead expense $4,700
Credit Cost of goods sold $4,700
Explanation:
Overhead Absorption rate = Budgeted overhead /Budgeted labour hours
= 72,000 /2,400 hours = $30 per hour
Absorbed overhead = OAR × Actual labour hours
=$30 × 2350 = $70,500
Over-absorbed overhead = Absorbed overhead - Actual overhead
= $70,500 - $65,800 = $4700
Journal entry:
Debit Manufacturing overhead expense $4,700
Credit Cost of goods sold $4,700
Answer:
Overhead Absorption rate= $30 per hour
Absorbed overhead= $70,500
Over-absorbed overhead=$4700
Journal entry:
Debit Manufacturing overhead expense $4,700
Credit Cost of goods sold $4,700
A company purchased $10,400 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $700, was added to the invoice amount. On June 20, it returned $1,120 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:A company purchased $10,400 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $700, was added to the invoice amount. On June 20, it returned $1,120 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:
Answer:
The cash paid on June 24 equals: $9,780
Explanation:
When the company purchased merchandise, the following entries are recorded.
Merchandise $10,400 (debit)
Freight Charges $700 (debit)
Accounts Payable $11,100 (credit)
When the company returned merchandise, the following entries are recorded.
Accounts Payable $1,120 (debit)
Merchandise $1,120 (credit)
When the company pay for the merchandise, the payment is made within the discount period and is eligible for a cash discount of 3%.
Accounts Payable $9,980 (debit)
Discount Received $200 (credit)
Cash $9,780 (credit)
Conclusion :
The cash paid on June 24 equals: $9,780
All of the following have had an effect on structural unemployment except:_________.
a) Just-cause employment laws Minimum wage regulations
b) Unemployment benefits.
c) Unionization Active duty military population
Answer: Active duty military population
Explanation:
Structural Unemployment is unemployment as a result of Companies and industries having to be restructured due to various variables with the most prevalent being technology for example, using a harvester on farms causing a farm to let go of it's previous staff who harvested by hand.
The above options allow for structural unemployment to happen except Active Duty military population.
These are already people who are employed as soldiers and are on Active - duty. They are not unemployed and do not contribute to Structural Unemployment.
Suppose the government provides peanut butter to everyone free of charge and everyone consumes it to the point at which he receives no additional satisfaction from another spoonful. Is this necessarily good
Answer:
No
Explanation:
This is not good because because resources are scarce and there might be some scenario where the resources that was used to make the peanut butter would have been more useful in the production of more of other products or goods. the point at which he receives no additional satisfaction from another spoonful iss the point of marginal utility
Top management at Prinze Auto Sales has decided to replace their traditional marketing approach with an approach that emphasizes relationship marketing. Under this new approach, Prinze's salespeople will be expected to devote less time to current customers and a larger share of their time searching for new customers.
1. True2. False
Answer:
2. False
Explanation:
Relationship management is considered an important part of CRM (customer relationship management) and it emphasizes on building and increasing customer loyalty and long term commitment.
If this company was to replace their traditional marketing approach with relationship marketing, they would devote more time to build a solid relationship with existing customers and less time searching for new customers.
A car dealership spends $140,000 on cars to stock their lot. After a day of sales, they earn a total revenue of $300,000. What is the car dealership's profit
Answer:
$160,000
Explanation:
Calculation of the car dealership's profit
Using this formula
Profit= Total revenue- Amount Spend
Where,
Total revenue=$300,000
Amount Spend=$140,000
Let plug in the formula
Profit =300,000-140,000
Profit =160,000
Therefore the car dealership's profit will be $160,000
_____ affects the perceptual process because employees are more likely to remember information that is consistent with their self-concept and nonconsciously screen out information (particularly negative information) that seems inconsistent with it.
Answer:
Self-Verification
Explanation:
Self-verification refers to verify themselves by other peoples. How other people understand them based on their feelings, beliefs, etc. In other words we can say self views that also includes self concepts and self esteem
In the given situation, since it affects the perceptual process as we recognized that the employees have a good memory with respect to self concept and especially negative information
Gustavson Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Administrative and Facilities, and two operating departments, Assembly and Wholesaling.
Service Departments Operating Departments Administrative Facilities Assembly Wholesaling
Dept Costs $26,840 $59,400 $183,430 $321,190
Employee hours 4,000 2,000 29,000 15,000
Space occupied 2,000 2,000 30,000 6,000
Administrative costs are allocated on the basis of employee hours and Facilities costs are allocated on the basis of space occupied. The total Wholesaling Department cost after the allocations of service department costs is closest to:_______.a. $337,530b. $331,090c. $340,240
d. $340,426
Answer:
c. $340,240
Explanation:
The computation of total Wholesaling Department cost is shown below:-
Administrative costs = $26,840 × 15,000 ÷ (29,000 + 15,000)
= $26,840 × 15,000 ÷ 44,000
= $9,150
Facilities costs = $59,400 × 6,000 ÷ (30,000 + 6,000)
= $59,400 × 6,000 ÷ 36,000
= $9,900
Total wholesaling department
= Wholeselling department cost + administrative cost + facilities cost
= $321,190 + $9,150 + $9,900
= $340,240
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter:
a. As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances:
Debits Credits
Cash $ 48,000
Accounts receivable 224,000
Inventory 60,000
Buildings and equipment (net) 370,000
Accounts payable $ 93,000
Common stock 500,000
Retained earnings 109,000
$ 702,000 $ 702,000
b. Actual sales for December and budgeted sales for the next four months are as follows:
December(actual) $ 280,000
January $ 400,000
February $ 600,000
March $ 300,000
April $ 200,000
c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales.
d. The company’s gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.)
e. Monthly expenses are budgeted as follows: salaries and wages, $27,000 per month: advertising, $70,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42,000 for the quarter.
f. Each month’s ending inventory should equal 25% of the following month’s cost of goods sold.
g. One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid in the following month.
h. During February, the company will purchase a new copy machine for $1,700 cash. During March, other equipment will be purchased for cash at a cost of $84,500.
i. During January, the company will declare and pay $45,000 in cash dividends.
j. Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.
Required:
Using the data above, complete the following statements and schedules for the first quarter:
1. Schedule of expected cash collections:
2-a. Merchandise purchases budget:
2-b. Schedule of expected cash disbursements for merchandise purchases:
3. Cash budget:
4. Prepare an absorption costing income statement for the quarter ending March 31.
5. Prepare a balance sheet as of March 31.
Answer:
Hillyard Company
1. Schedule of expected cash collections:
January February March April
December(actual) $ 280,000
January $ 400,000 80,000 $320,000
February $ 600,000 120,000 $480,000
March $ 300,000 60,000 $240,000
April $ 200,000 40,000
Total $360,000 $440,000 $540,000
2-a. Merchandise purchases budget:
January February March
Cost of goods sold 240,000 360,000 180,000
Ending Inventory 90,000 45,000 30,000
Goods available 330,000 405,000 210,000
Opening Inventory (60,000) (90,000) (45,000)
Purchases $270,000 $315,000 $165,000
2-b. Schedule of expected cash disbursements for merchandise purchases:
Budgeted Purchases Disbursement:
January February March April
December(actual) $ 93,000
January $270,000 135,000 $ 135,000
February $315,000 157,500 $ 157,500
March $165,000 82,500 $ 82,500
Total $228,000 $292,500 $240,000
3. Cash budget:
January February March Total
Beginning balance $48,000 $30,000 $30,800 $48,000
Cash collections 360,000 440,000 540,000 1,340,000
Total $408,000 $470,000 $570,800 $1,388,000
Disbursements:
Purchases 228,000 292,500 240,000 (760,500)
Salaries & wages 27,000 27,000 27,000 (81,000)
Advertising 70,000 70,000 70,000 (210,000)
Shipping (5% sales) 20,000 30,000 15,000 (65,000)
Other Expense 3% 12,000 18,000 9,000 (39,000)
Equipment 1,700 84,500 (86,200)
Dividend 45,000 (45,000)
Total disbursement $402,000 $439,200 $445,500 (1,286,700)
Loan + Interest 24,000 24,720 ( 720)
Ending balance 6,000 30,800 100,580 100,580
Required
Minimum cash bal. 30,000 30,000 30,000
Interest on loan = $720 ($24,000 x 1% x 3)
4. Prepare an absorption costing income statement for the quarter ending March 31:
Sales $1,300,000
Cost of goods sold 780,000
Gross profit $520,000
Expenses:
Salaries & Wages 81,000
Advertising 210,000
Shipping expense 65,000
Other expenses 39,000
Depreciation 42,000
Interest expense 720 (437,720)
Net Income 82,280
5. Prepare a balance sheet as of March 31:
Assets:
Cash $100,580
Accounts Receivable 240,000
Inventory 30,000
Buildings & Equipment 414,200
Total Assets $
Liabilities + Equity:
Accounts Payable $82,500
Common Stock 500,000
Retained Earnings 146,280
Total $
Explanation:
a) Data:
General Ledger Balances:
Debits Credits
Cash $ 48,000
Accounts receivable 224,000
Inventory 60,000
Buildings and equipment (net) 370,000
Accounts payable $ 93,000
Common stock 500,000
Retained earnings 109,000
$ 702,000 $ 702,000
b) Budgeted Cash Collections
January February March April
December(actual) $ 280,000
January $ 400,000 80,000 $320,000
February $ 600,000 120,000 $480,000
March $ 300,000 60,000 $240,000
April $ 200,000 40,000
Total $360,000 $440,000 $540,000
Ending Accounts Receivable balance = $240,000
c) Cost of goods sold
January February March Total
Sales $400,000 $600,000 $300,000 $1,300,000
Shipping costs 5% 20,000 30,000 15,000 65,000
Other Expense 3% 12,000 18,000 9,000 39,000
Depreciation 42,000
Cost of goods sold 240,000 360,000 180,000 780,000
Ending Inventory 90,000 45,000 30,000
Goods available 330,000 405,000 210,000
Opening Inventory (60,000) (90,000) (45,000)
Purchases 270,000 315,000 165,000
b) Budgeted Purchases Disbursement:
January February March April
December(actual) $ 93,000
January $270,000 135,000 $ 135,000
February $315,000 157,500 $ 157,500
March $165,000 82,500 $ 82,500
Ending Accounts Payable balance = $82,500
c) Retained Earnings:
Beginning $109,000
Net Income 82,280
Dividends (45,000)
Ending $146,280
d) Buildings & Equipment 370,000
New additions: 86,200
Less Depreciation expense (42,000)
Balance, net $414,200
Discuss the role that resources, organizational communications, and training play in the support and successful implementation of a marketing plan. Cite the study materials to support your ideas. In replies to peers, discuss whether you agree or disagree with their assessment and explain why by citing study materials.
Explanation:
A marketing plan is the set of well-defined actions that will help an organization achieve its marketing objectives and goals.
Therefore, for the process of implementing the marketing plan to be successful it must consider the systemic set that makes up the organization.
First, resources must be allocated in such a way that there is a possibility of complying with all the marketing actions provided for in the plan, it must be necessary to be available in the organization, equipment, qualified personnel, raw materials, etc.
Organizational communication is also essential for the correct transfer of information so that an effective workflow occurs, without noise or conflict. A good manager must know how to communicate clearly and accurately, in order to support employees and supervise the work so that the marketing objectives are met, in addition to encouraging the realization of the work in the best possible way.
Training is also important for the development of employees and for them to be able to carry out activities, this is also a way of engaging and motivating employees to achieve organizational expectations.
Given on the balance sheets given for Just dew It, calculate the following financial ratios for each year:_________.
a. Current ratio.
b. Quick ratio.
c. Cash ratio.
d. NWC to total assets ratio.
e. Deb-equity ratio and equity multiplier.
f. Total debt ratio and long-term debt ratio.
Answer:
a. Current ratio = current assets / current liabilities
2014 = $90,717 / $62,939 = 1.442015 = $100,617 / $66,442 = 1.51b. Quick ratio = (current assets - inventory) / current liabilities
2014 = ($90,717 - $51,163)/ $62,939 = 0.632015 = ($100,617 - $56,295)/ $66,442 = 0.67c. Cash ratio = (cash + cash equivalents) / current liabilities
2014 = $11,135 / $62,939 = 0.182015 = $13,407 / $66,442 = 0.20d. NWC to total assets ratio = net working capital / total assets
2014 = $27,778 / $417,173 = 0.072015 = $34,175 / $458,177 = 0.07e. Debt-equity ratio = total debt / total equity
2014 = $106,939 / $310,234 = 0.342015 = $105,442 / $352,735 = 0.30equity multiplier = total assets / total equity
2014 = $417,173 / $310,234 = 1.342015 = $458,177 / $352,735 = 1.30f. Total debt ratio = liabilities / assets
2014 = $106,939 / $417,173 = 0.26
2015 = $105,442 / $458,177 = 0.23
long-term debt ratio = long term liabilities / assets
2014 = $44,000 / $417,173 = 0.112015 = $39,000 / $458,177 = 0.09An 85-year old risk averse investor is not happy about the minimal return she is earning on her current investments. She is stressed about having enough income because her cost of living has been increasing by more than 10% annually. Her current portfolio composition consists of:
An 85-year old risk averse investor is not happy about the minimal return she is earning on her current investments. She is stressed about having enough income because her cost of living has been increasing by more than 10% annually. Her current portfolio composition consists of:
40% Money Market Fund
50% Bonds
10% Equities
What changes should you suggest to her portfolio?
A. Reduce the Money Market Fund allocation by 10% (to 30%) and put the released funds in commodities such as gold
B. Reduce the Money Market Fund allocation by 30% (to 10%) and put the released funds in AAA-rated corporate bonds
C. Liquidate the entire Money Market Fund allocation and put the released funds in Equities, bringing that allocation up to 50%
D. Liquidate the entire Money Market Fund allocation and put the released funds in U.S. Treasury securities
Answer:
Reduce the Money Market Fund allocation by 30% (to 10%) and put the released funds in AAA-rated corporate bonds
Explanation:
Given that AAA rated bonds are considered to be the highest possible rating that may be assigned to an issuer's bonds by any of the major credit rating agencies, with the smallest risk of default.
Hence, given the situation above with the 85 years old woman, the changes to make to her portfolio is to Reduce the Money Market Fund allocation by 30% (to 10%) and put the released funds in AAA-rated corporate bonds
If a firm cannot invest retained earnings to earn a rate of return _______ the required rate of return on retained earnings, it should return those funds to its stockholders.
a. less than
b. greater than or equa to
Answer:
The answer is B.
Explanation:
Retained earnings are the part of net income that are not distributed as to shareholders as dividends but are instead retained for investment that could improve future earnings of the firm.
Rate of return is the return that shareholders or management are expecting to generate from a business venture.
Rate of return must always be equal to or greater than a target rate or pre-planned rate if not, it decreases the wealth of the shareholders or decreases the value of the company.