Answer:
The answer is =22%
Explanation:
Holding period return is the total return from asset or investment portfolio over a period of time. Holding period return is expressed as a percentage.
Its formula is:
[(value at the end of the period- original value) + income or dividend]/ original valuex 100
[2 + (59 - 50)] / 50x 100
(2 + 9 ) / 50x 100
11/50 x 100
=22%
A plan that reports the units or costs of merchandise to be purchased by a merchandising company during the budget period is called a:
Answer:
Merchandise purchases budget.
Explanation:
The Merchandise purchases budget is a plan that reports the units or costs of merchandise to be purchased by a merchandising company during the budget period.
It is prepared by a retail company to make sure it has sufficient inventory on hand. It uses the budgeted sales figures from the Sales Budget to decide the quantity of inventory to be bought at each period
The correct statement is that a plan that reports the units or costs of merchandise to be purchased by merchandising company is called a
It denotes and helps in understanding the formulation of inventories and free cash flows in the hands of the company as on the date of preparation of budgets by a merchandising company.
The requirement of the merchandising company to purchases can be estimated by addition of cost of goods sold and the desired ending cost of inventory which is to be subtracted with opening stock.The formula to calculate the merchandise purchases budget by a merchandising company can be stated as below,[tex]\rm Merchandise\ Purchases\ Budget= \ Costs\ of\ Goods\ sold\ + Desired\ Inventory\ - Stock[/tex]The formula stated above is effective in analyzing how much units are to be produced and the costs that can be reduced or born, if any by such merchandising company.Hence, the correct statement is that a report which suggests merchandise to be purchased by a company for a given accounting period is known as merchandise purchase budgeting report.
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_____ occurs when a creditor obtains a court order that directs an employer to set aside a portion of an employee's wages to pay a debt owed to the creditor.
Answer:
Garnishment
Explanation:
Garnishment refers to an order in which a person directs a third party with respect to seize assets i.e salary earned from employment or money in a bank account so that the unpaid debt amount could be settled out
In the given case, the same situation occurs so this is a case of garnishment and the same is to be considered
What is the annual percentage rate on a loan with a stated rate of 2.75 percent per quarter?A. 11.00 percentB. 11.09 percentC. 11.18 percentD. 11.27 percentE. 11.31 percent
Answer:
A. 11.00 percent
Explanation:
The computation of the annual percentage rate is shown below:-
Annual percentage rate = Percentage of stated rate × Number of quarters per year
= 2.75% × 4
= 11%
Therefore for computing the annual percentage rate we simply applied the above formula i.e multiplying the percentage of the stated rate with the number of quarters in a year
So, the correct option is A.
The annual percentage rate on a loan with a stated rate of 2.75 percent per quarter is 11.27 percent.
To calculate the annual percentage rate (APR) on a loan with a stated rate of 2.75 percent per quarter, we need to use the following formula: APR = (1 + periodic interest rate)^n - 1. Here, the periodic interest rate is 2.75 percent, and n is the number of compounding periods in a year, which is 4. Substituting these values into the formula, we get: APR = (1 + 0.0275)^4 - 1 = 0.1127 or 11.27%. Therefore, the annual percentage rate on the loan is 11.27 percent.
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Which of the following accounting concepts states that an accounting transaction should be supported by sufficient evidence to allow two or more qualified individuals to arrive at similar measures
a. Matching
b. Stable monetary unit
c. Verifiability
d. Periodicty
Answer:
The correct answer is the option C: Verifiability.
Explanation:
To begin with, the accounting concept of "Verifiability" indicates that the accounts of a company are verifiable in the cases when those accounts are reproducible so that indicates that given the same data and assumpitions it is understandable that an independent accountant can produce the same result the company actually did. Therefore that the verifiability is the concept that states that an accounting transaction should be supported by sufficient evidence to allow two or more qualified accountants to arrive at similar measures as it said before.
The accounting concepts states that an accounting transaction should be option c. Verifiability
What is Verifiability?It represents that the accounts of a company are verifiable at the time when those accounts are produced again in order to provide the same data and assumption. So, that verifiability is the concept that states that an accounting transaction should be supported by enough evidence to permit two or more qualified accountants.
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Country Kitchen's cost of equity is 19.8 percent and its pretax cost of debt is 8.9 percent. What is the firm's weighted average cost of capital if its debt-equity ratio is 0.66 and the tax rate is 46 percent
Answer:
33.17%
Explanation:
WACC = (D/E) rd (1 - tax rate) + (E/D) re
(D/E) = Debt to equity ratio
rd = pretax cost of debt
(E/D) = equity to debt ratio
re = cost of equity
0.66 x 8.9 x 0.54 + 19.8 x 1.52 = 3.17 + 30 = 33.17%
The company offered Gwendolyn a(n) _____ for living in an unfamiliar country isolated from her family, dealing with a new culture and language, and adapting to new work habits and practices. She received this as a percentage of her base salary.
Answer:
Hardship allowance.
Explanation:
The company offered Gwendolyn a hardship allowance for living in an unfamiliar country isolated from her family, dealing with a new culture and language, and adapting to new work habits and practices. She received this as a percentage of her base salary.
A hardship allowance can be defined as an extra amount of money being paid by an employer to an employee for working in difficult or tedious conditions. Also, when an employee works in an unfamiliar environment, potentially dangerous territory, and deal with risks in living in isolation from his or family members, they are entitled to a hardship allowance from their employer.
Hardship allowance is usually calculated as a percentage of an employee's monthly salary.
For instance, Gwendolyn works for an oil company and he's given an assignment to go work at a rig in a warzone, he is entitled to a hardship allowance from his employer.
Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be $125,000 in year 1 and increase by 4% each year through year 5. What is the equivalent uniform annual worth of the maintenance costs at an interest rate of 10% per year, compounded semiannually
Answer:
The equivalent uniform annual worth of the maintenance costs at an interest rate of 10% per year, compounded semiannually is $127,432
Explanation:
In order to calculate the equivalent uniform annual worth of the maintenance costs at an interest rate of 10% per year, compounded semiannually we would have to calculate the following formula:
equivalent uniform annual worth of the maintenance costs= P(i(1+i)∧n/(1+i)∧n-1
The rate of interest i would be as follows:
rate of interest i=(1+10%/2)-1
rate of interest i=0.1025*100
rate of interest i=10.25%
The present value P would be calculated as follows:
present value P=$125,000(1-(1+1/100)∧5 (1+10.25/100)∧-5/(10.25/100-1/100)
present value P=$125,000*3.84
present value P=$480,000
Therefore,
equivalent uniform annual worth of the maintenance costs=$480,000*(10.25/100 (1+10.25/100)∧5/(1+10.25/100)∧5-1)
equivalent uniform annual worth of the maintenance costs=$480,000*0.2654
equivalent uniform annual worth of the maintenance costs=$127,432
The equivalent uniform annual worth of the maintenance costs at an interest rate of 10% per year, compounded semiannually is $127,432
Which of the following represented a business unit that shows rapid growth but poor profit margins?
a. Star.
b. Cash cow.
c. Problem child.
d. Loss leader.
e. Dog.
Answer:
Option B
Explanation:
In simple words, A cash cow refers to one of the 4 dimensions (quadrants) throughout the growth-share vector, BCG matrix describing a business, line of products, or enterprise with significant market share inside a mature field.
A cash cow is described as a reference to a company, commodity, or asset that will generate continuous investment returns throughout its lifetime until it is purchased and paying off.
The term refers to a company that is equally low-maintenance too. Modern days cash cows need minimal capital investment to have consistently sufficient cash flow that can be distributed within a company to other departments. They 're lower - risk projects, potentially high profits.
TRUE OR FALSE PLEASE FOR BRAINLIEST ANSWER The doctrine of Respondeat Superior states that a principal must indemnify (reimburse) the agent for out of pocket expenses incurred even when the agent detours to satisfy a personal need.
Answer:
False
Explanation:
On January 1, 2014, Brenner Company purchased at face value, a $1,000, 6% bond that pays interest on January 1 Brenner Company has a calendar year end. The entry for the receipt of interest on January 1, 2015 is
Answer:
Dr Cash 30
Cr Interest revenue 30
Explanation:
Preparation of te entry for the receipt of interest on January 1, 2015 for Brenner Company
Since we were told that On January 1, 2014, Brenner Company was said to have purchased at a face value, the amount of $1,000 with 6% bond that pays the interest in January 1 this means we have to record the transaction by Debiting Cash with $30 and Crediting Interest revenue with the same amount. The $30 is been calculated as:
1,000 *.06 *1/2 =$30
Therefore the entry for the receipt of interest on January 1, 2015 is:
Dr Cash 30
Cr Interest revenue 30
Look at the tables below, which show, respectively, the willingness to pay and willingness to accept of buyers and sellers of bags of oranges. For the following questions, assume that the equilibrium price and quantity will depend on the indicated changes in supply and demand. Assume that the only market participants are those listed by name in the two tables.
Person Max Actual
bob 13 8
barly 12 8
bill 11 8
bart 10 8
brent 9 8
betty 8 8
Person Minimum Actual
carlos 3 8
courtney 4 8
chunk 5 8
cindy 6 8
craig 7 8
chad 8 8
Required:
a. Given that the equilibrium price is $8, what is the equilibrium quantity given the data displayed in the two tables?
b. What if, instead of bags of oranges, the data in the two tables dealt with a public good like fireworks displays? If all the buyers free ride, what will be the quantity supplied by private sellers?
c. Assume that we are back to talking about bags of oranges (a private good), but that the government has decided that tossed orange peels impose a negative externality on the public that must be rectified by imposing a $2-per-bag tax on sellers. What is the new equilibrium price?
Answer and Explanation:
a. The equilibrium quantity for the given two tables is
As if the equilibrium price is $8 so the six consumers i.e bob, barly,bill,bart, brent, betty) are paying more than the equilibrium price and on the other hand six producers (carlos, courtney, chunk, cindy, craig, chad) are accepted the price as the equilibrium price is more than the accepted price
Hence, the equilibrium quantity is 6
b. Now if all the buyers are free to ride so the quantity supplied by private sellers is 0 as the minimum accepted price is more than the willingness price as producers is not able to produced
c. At imposing $2 per bag tax on sellers, the new equilibrium price is $9 as the price rise to $9
Assume that the U.S. one-year interest rate is 3 percent and the one-year interest rate on Australian dollars is 6 percent. The U.S. expected annual inflation is 5 percent, while the Australian inflation is expected to be 7 percent. You have $100,000 to invest for one year and you believe that PPP holds. The spot exchange rate of an Australian dollar is $0.689. What will be the yield on your investment if you invest in the Australian market
Answer:
4%
Explanation:
you invest $100,000 today and purchase A$145,137.88
in one year, you will have A$152,394.78
since the PPP stands, the spot rate in one year should be:
0.703 US$ per A$ (since Australia's inflation rate is 2% higher than the US inflation rate, the Australian dollar will depreciate by 2%)
with your A$152,394.78, you can purchase $107,133.53
if you invested in the US instead, you would have $103,000
this means that your Australian investment yielded ($107,133.53 / $103,000) - 1 = 0.04 or 4%
Exhibit 27-5 Units of Labor Quantity of Output Marginal Revenue 0 0 $6 1 100 6 2 180 6 3 250 6 4 310 6 5 330 6 Refer to Exhibit 27-5. The marginal revenue product of the second unit of labor is
Answer:
$480
Explanation:
marginal revenue is the increase in revenue as a result of selling one extra unit of output.
(180 - 100)x $6 = $480
please find attached a clear image of Exhibit 27-5
Ionic Charge, is a newly organized manufacturing business that plans to manufacture and sell 60,000 units per year of a new product. The following estimates have been made of the company’s costs and expenses (other than income taxes).
Fixed Variable per Unit
Manufacturing costs:
Direct materials $25
Direct labor $15
Manufacturing overhead $500,000 $8
Period costs:
Selling expenses $2
Administrative expenses $300,000
Totals $800,000 $50
Required:
a. What should the company establish as the sales price per unit if it sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations? (Hint: First compute the required contribution margin per unit.)
b. At the unit sales price computed in part a, how many units must the company produce and sell to break even? (Assume all units produced are sold.)
c. What will be the margin of safety (in dollars) if the company produces and sells 60,000 units at the sales price computed in part a?
Answer:
a. What should the company establish as the sales price per unit if it sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations?
$64.50b. At the unit sales price computed in part a, how many units must the company produce and sell to break even?
55,173 unitsc. What will be the margin of safety (in dollars) if the company produces and sells 60,000 units at the sales price computed in part a?
$311,341.50Explanation:
variable costs per unit:
direct materials $25
direct labor $15
manufacturing overhead $8
selling expenses $2
total $50
fixed costs per unit:
manufacturing overhead $500,000
administrative expenses $300,000
total $800,000
assuming the company actually produces and sells the 60,000 units
units sold = (fixed costs + expected profits) / contribution margin
60,000 = $870,000 / contribution margin
contribution margin = $870,000 / 60,000 = $14.50
contribution margin = sales price - variable costs
$14.50 = sales price - $50
sales price = $50 + $14.50 = $64.50
break even point = fixed costs / contribution margin = $800,000 / $14.50 = 55,172.41 ≈ 55,173 units
margin of safety = current sales - break even point = (60,000 x $64.50) - (55,173 x $64.50) = $311,341.50
The following is the adjusted trial balance of Wilson Trucking Company.
Account Title Debit Credit
Cash $8,000
Accounts receivable 17,500
Office supplies 3,000
Trucks 172,000
Accumulated
depreciation—Trucks $36,000
Land 85,000
Accounts payable 12,000
Interest payable 4,000
Long-term notes payable 53,000
Common stock 20,000
Retained earnings 155,000
Dividends 20,000
Trucking fees earned 130,000
Depreciation
expense—Trucks 23,500
Salaries expense 61,000
Office supplies expense 8,000
Repairs expense—Trucks12,000
Totals $410,000 $410,000
The Retained Earnings account balance is $155,000 at December 31, 2016.
(1) Prepare the income statement for the year ended December 31, 2017.
(2) Prepare the statement of retained earnings for the year ended December 31, 2017.
Answer:
1. Wilson Trucking Company
Income Statement
Revenues:
Trucking fees earned $130,000
Expenses:
Depreciation expense - Trucks $23,500
Salaries expense $61,000
Office Supplies expense $8,000
Repairs Expense - Trucks $12,000
Total Expenses $104,500
Net Income $25,500
2. Statement of Retained earnings
Beginning balance 1 Jan 17 $155,000
Add: Net Income $25,500
Less: Dividends $20,000
Ending Balance 31 Dec 2017 $160,500
On September 1, a company established a petty cash fund of $230. On September 10, the petty cash fund was replenished when there was $81 remaining and there were petty cash receipts for supplies, $53, and postage, $80. On September 15, the petty cash fund was increased to $320.
Required:
Prepare the journal entries, if any, required on September 1, September 10, and September 15. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
September 1, petty cash fund is established
Dr Petty cash fund 230
Cr Cash 230
September 10, petty cash expenses
Dr Supplies expense 53
Dr Postage expense 80
Dr Cash short and over 16
Cr Petty cash fund 149
September 10, petty cash is replenished
Dr Petty cash fund 149
Cr Cash 149
September 15, petty cash fund in increased
Dr Petty cash fund 90
Cr Cash 90
Below is a list of activities for Jayhawk Corporation. Required: Select from the activities of Jayhawk Corporation whether the transaction increases, decreases, or has no effect on assets, liabilities, and stockholders' equity. The first item is provided as an example.
Transaction Assets = Liabilities+ Stockholders' Equity
1. Issue common stock in exchange for cash. Increase= No effect+ Increase
2. Purchase business supplies on account. = +
3. Pay for legal services for the current month. = +
4. Provide services to customers on account. = +
5. Pay employee salaries for the current month. = +
6. Provide services to customers for cash. = +
7. Pay for advertising for the current month. = +
8. Repay loan from the bank. = +
9. Pay dividends to stockholders. = +
10. Receive cash from customers in (4) above. = +
11. Pay for supplies purchased in (2) above. = +
Answer:
Jayhawk Corporation
Transaction Assets = Liabilities Stockholders' Equity
1. Issue common stock in exchange for cash. Increase= No effect + Increase
2. Purchase business supplies on account. Increase = Increase + No effect
3. Pay for legal services for the current month. Decrease = No effect + Decrease
4. Provide services to customers on account. Increase = No effect + Increase
5. Pay employee salaries for the current month. Decrease = No effect + Decrease
6. Provide services to customers for cash. Increase = No effect + Increase
7. Pay for advertising for the current month. Decrease = No effect + Decrease
8. Repay loan from the bank. Decrease = Decrease + No effect
9. Pay dividends to stockholders. Decrease = No effect + Decrease
10. Receive cash from customers in (4) above. Increase + Decrease = No effect + No effect
11. Pay for supplies purchased in (2) above. Decrease = Decrease + No effect
Explanation:
The accounting equation states that Assets are equal to Liabilities Plus Equity. This equation remains true for every business transaction, which affects two accounts on either side of the equation. This keeps the equation in equilibrium or balance with each given transaction. It is from this equation that the double entry system of accounting was developed and is based.
The impact whether the transaction increases, decreases, or has no effect on assets, liabilities, and stockholders' equity is explained below:
1. Issue common stock in exchange for cash. Increase= No effect + Increase
2. Purchase business supplies on account. Increase = Increase + No effect
3. Pay for legal services for the current month. Decrease = No effect + Decrease
4. Provide services to customers on account. Increase = No effect + Increase
5. Pay employee salaries for the current month. Decrease = No effect + Decrease
6. Provide services to customers for cash. Increase = No effect + Increase
7. Pay for advertising for the current month. Decrease = No effect + Decrease
8. Repay loan from the bank. Decrease = Decrease + No effect
9. Pay dividends to stockholders. Decrease = No effect + Decrease
10. Receive cash from customers in (4) above. Increase + Decrease = No effect + No effect
11. Pay for supplies purchased in (2) above. Decrease = Decrease + No effect
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A customer wishes to place a buy order for a security that has not been registered with the SEC. The security may be purchased if the security:
Complete Question:
A customer wishes to place a buy order for a security that has not been registered with the SEC. The purchase order can be filled if the security:
A. is exempt from SEC registration
B. is traded by at least 2 market makers
C. has been trading in the market for at least 1 year
D. is sold to professional investors
Answer:
Is exempt from SEC registration
Explanation:
The Securities and Exchange Commission (SEC) is a regulatory agency that is saddled with the responsibility of regulating the capital market and ensuring investors are well protected by making sure standard rules are followed.
If a customer wishes to place a buy order for a security that has not been registered with the Securities and Exchange Commission (SEC). The security may be purchased if the security is exempt from SEC registration.
By standard, the SEC states and implore investors to purchase only securities that are registered with the securities and exchange commission (SEC) or only when an exemption is made available. If securities have been trading for about a year or is being traded by a minimum of two companies, no exemption would be given by the SEC.
Also, there isn't any exemption for securities that is sold only to professional investors.
However, investors can purchase municipal and government securities even without it being registered with the securities and exchange commission.
In a nutshell, the customer can only purchase a security that has not been registered only if it is exempted from SEC registration.
In the classical model of decision making, the most appropriate decision possible in light of what is believed to be the most desirable consequences for the organization is known as the _______ decision. intuitive creative heuristic subjective optimum
Answer:
Optimum
Explanation:
The Classical approach to decision making is specific on making decisions to achieve required outcome. Under this approach, decisions are rationl and geared towards one stable and sustainable goal. The most appropriate decision possible in light of what is believed to be the most desirable consequences for the organization is the Optimum. The decision maker always makes decisions based on what is the best interests of that organization.
Tax rates other than the current tax rate may be used to calculate the deferred income tax amount on the balance sheet if
Answer:
(A.) the future tax rates have been enacted into law.
Explanation:
In case when the rate of tax instead of the current tax rate used to compute the deferred amount related to income tax for the balance sheet if the rate of future tax is enacted in law i.e means when the future tax rate imposed under the taxation rules and regulations
Therefore option A is correct and the other options are incorrect
Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $2,948,125. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: Budgeted Production Volume Direct Labor Hours Per Unit Flutes 2,000 units 2.0 Clarinets 1,500 3.0 Oboes 1,750 1.5 a. Determine the single plantwide overhead rate.
Answer:
Predetermined manufacturing overhead rate= $391.78 per direct labor hour
Explanation:
Giving the following information:
Budgeted factory overhead= $2,948,125.
Direct labor hours:
Flutes= 2,000*2= 4,000
Clarinets= 1,500*3= 4,500
Oboes= 1,750*1.5= 2,625
Total direct labor hours= 7,525
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
Predetermined manufacturing overhead rate= 2,948,125/7,525
Predetermined manufacturing overhead rate= $391.78 per direct labor hour
A paint manufacturing company produces three paint bases of differing quality. Due to throughput limitations (measured in gallons) at their facility, they are unable to meet total demand for their products. In determining which of their products they should produce, what should they consider?
a. The gross profit per unit for each product
b. The operating margin per unit for each product
c. The contribution margin per gallon of throughput for each product
d. None of the above
Answer:
c. The contribution margin per gallon of throughput for each product
Explanation:
contribution margin per gallon = Revenue per gallon - variable cost per gallon.
Contribution margin would enable the company to know the amount each product earns in excess after variable cost has been subtracted from revenue.
the product with the highest contribution margin should be considered.
Suppose that XTel currently is selling at $40 per share. You buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%. a. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to (a) $44; (b) $40; (c) $36? (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)
Answer:
Explanation:
a. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to $44?
Total investment will be:
= 500 shares x $40 = $20,000
The Initial Net Worth =$15,000
Borrowed Amount = $20,000 - $15,000 = $5,000
New Net worth will be:
= $44 x 500 shares - 5000
= $22,000 - $5000
= $17,000
Percentage increase will be:
= [($17,000 - $15,000)/$15,000] × 100
= $2000/$15000 × 100
= 13.33%
b. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to $40?
Total investment will be:
= 500 shares x $40 = $20,000
The Initial Net Worth =$15,000
Borrowed Amount = $20,000 - $15,000 = $5,000
New Net worth will be:
= $40 x 500 shares - 5000
= $20,000 - $5000
= $15,000
Percentage increase will be:
= [($15,000 - $15,000)/$15,000] × 100
= 0/$15000 × 100
= 0
c. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to $36?
Total investment will be:
= 500 shares x $40 = $20,000
The Initial Net Worth =$15,000
Borrowed Amount = $20,000 - $15,000 = $5,000
New Net worth will be:
= $36 x 500 shares - 5000
= $18,000 - $5000
= $13,000
Percentage increase will be:
= [($13,000 - $15,000)/$15,000] × 100
= -$2000/$15000 × 100
= -13.33%
" When marketing research came back with the observation that customers were staying away from his bookstore because of a lack of services like gift cards, return policies and doing special orders, David was shocked. "We have the most generous policies of any store in the region. What more do they want
When marketing research came back with the observation that customers were staying away from his bookstore because of a lack of services like gift cards, return policies and doing special orders, David was shocked. "We have the most generous policies of any store in the region. What more do they want? Nobody asks about them or uses them." David and his bookstore are likely suffering from a:
A. knowledge gap.
B. standards gap.
C. retail policy gap.
D. delivery gap.
E. communications gap.
Answer:
A. knowledge gap.
Explanation:
Knowledge gap is term in business or marketing which describes the difference between the customers' expectations of the service and the company's perception of those expectations.
Hence, knowledge gap arises when a management fails to understand exactly the expectations of customers.
Knowledge gap could occur due to various reasons, some of which are:
1. Lack or inadequate market research.
2. Lack of management and customer interaction.
3. Inability to heed customer complaints.
Hence, in this case, David and his bookstore are likely suffering from a KNOWLEDGE GAP.
When any two firms have both a high degree of market commonality and highly similar resources, a ______________ threat is present.
Answer: stronger, competitive
Explanation:
When there is a high identical resources base and and a high degree of market commonality between two firms ,this show that there is a stronger and competitive threat. It should be noted that despite this threat, there may be no competitive action.
A rival in the market may not want to attack a company that shares identical resources base because it can result into an intense battle. Also, attacking them can lead to more motivation and thereby produce a better quality product.
Find the present worth in year 0 of $60,000 in year 3 and amounts increasing by 15% per year through year 10 at an interest rate of 11% per year. g
Answer:
Present worth is 398,577
Explanation:
First we need to grow the payment by 15% each year after year 4. Then we need to discount the amounts using the interest rate of 11% each year.
All the workings are done in the pdf file attached with this answer, please find it.
You have the following information for Bridgeport Corp. for the month ended October 31, 2017. Bridgeport Corp. uses a periodic method for inventory.
Date Description Units Unit Cost or Selling Price
Oct. 1 Beginning inventory 60 $24
Oct. 9 Purchase 125 26
Oct. 11 Sale 107 37
Oct. 17 Purchase 94 27
Oct. 22 Sale 64 42
Oct. 25 Purchase 71 29
Oct. 29 Sale 104 42
Required:
a. Calculate the weighted-average cost.
b. Calculate ending inventory, cost of goods sold, gross profit under each of the following methods.
1. LIFO
2. FIFO
3. Avergae Cost
Answer:
Bridgeport Corp.
a. Weighted-average cost:
Weighted average cost = Cost of goods available for sale = $9,287
b. Ending inventory, cost of goods sold, gross profit under:
1. LIFO:
a) Ending Inventory = 75 units
Oct. 1 Beginning inventory 60 at $24 = $1,440
Oct. 9 Purchase 15 at $26 = 390
Total 75 = $1,830
b) Cost of goods sold = Cost of goods available for sale minus the ending inventory
= $9,287 - $1,830
= $7,457
c) Gross profit = Sales minus Cost of goods sold
= $11,015 - $7,457
= $3,558
2. FIFO:
a) Ending Inventory = 75 units
Oct. 17 Purchase 4 at $27 = $108
Oct. 25 Purchase 71 at $29 = 2,059
Ending Inventory 75 $2,167
b) Cost of goods sold = Cost of goods available for minus Ending Inventory
= $9,287 - $2,167
= $7,120
c) Gross profit = Sales minus Cost of goods sold
= $11,015 - $7,120
= $3,895
3. Average Cost:
a) Ending Inventory = 75 units
= Ending Inventory units x Weighted-Average cost
= 75 x $26.53 = $1,989.75
b) Cost of goods sold = units sold x weighted-average cost
= 275 x $26.53
= $7,295.75
c) Gross profit = Sales minus Cost of goods sold
= $11,015 - $7,295.75
= $3,719.25
Explanation:
a) Data and calculations:
Date Description Units Unit Cost Selling Price Total
Oct. 1 Beginning inventory 60 $24 $1,440
Oct. 9 Purchase 125 26 3,250
Oct. 11 Sale (107) $37 $3,959
Oct. 17 Purchase 94 27 2,538
Oct. 22 Sale (64) 42 2,688
Oct. 25 Purchase 71 29 2,059
Oct. 29 Sale (104) 42 4,368
Total 350 (275) $9,287 $11,015
Ending inventory in units = 350 - 275 = 75
Weighted average cost = $9,287
Weighted average cost per unit = $9,287/350 = $26.53
b) The LIFO is the Last-in, First-Out method of inventory costing which assumes that units bought last are the units to be sold first.
c) FIFO means the First-in, First-Out method of inventory costing. This takes the assumption that units bought first are the units to be sold first in that chronological order.
d) Weighted average method of inventory costing takes the weighted average cost and uses this to value the ending inventory and the cost of goods sold.
e) The periodic inventory system does not alter the value of inventory until at the end of the accounting period when the inventory count is done, reconciled, and valued.
You decide to use your department store charge card .. a lot! After seven weeks you have racked up $1,400 of debt. Your minimum monthly payment is $45, and is paid at the end of each month. If the APR is 16.80%, how long will it take you to pay the loan off? (Assume that you make the minimum payment until the debt is entirely paid off.)
Answer:
41 months
Explanation:
For computing the time period we have to use the NPER formula i.e shown in the attachment
Given that,
Present value = $0
Future value = $1,400
Rate of interest = 16.80% ÷ 12 months = 1.4%
PMT = $45
The formula is shown below:
= NPER(Rate;PMT;PV;-FV;type)
The future value come in negative
So, after applying the above formula, the time period is 41 months
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $86,670. The equlpment was expected to have a useful life of three years, or 6,480 operating hours, and a residual value of $2,430. The equipment was used for 1,200 hours during Year 1, 2,300 hours in Year 2, 1,900 hours in Year 3, and 1,080 hours in Year 4 Required:Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method. r A. Straight-line method Year AmountYear 1 21,060 Year 2 28,080Year 3 28,080Year 4 7,020 B. Units-of-output method Year Amount Year 1 15,600Year 2 29,900Year 3 24,700
Answer:
purchase cost $86,670
useful life 3 years, 6,480 operating hours
residual value $2,430
a. the straight-line method
depreciation expense per year = ($86,670 - $2,430) / 3 = $28,080
depreciation year 1 = $28,080 x 9/12 = $21,060 depreciation year 2 = $28,080 depreciation year 3 = $28,080 depreciation year 4 = $28,080 x 3/12 = $7,020b. units-of-output method.
depreciation per hour = ($86,670 - $2,430) / 6,480 = $13
depreciation year 1 = 1,200 x $13 = $15,600 depreciation year 2 = 2,300 x $13 = $29,900 depreciation year 3 = 1,900 x $13 = $24,700 depreciation year 4 = 1,080 x $13 = $14,040c. the double-declining-balance method.
depreciation year 1 = 2 x 1/3 x $86,670 x 9/12 = $43,335 depreciation year 2 = $14,445 + (2 x 1/3 x $28,890 x 9/12) = $28,090 depreciation year 3 = $4,815 + (2 x 1/3 x $9,630 x 9/12) = $9,630 depreciation year 4 = $1,605 + ($3,210 - $2,430) = $2,385Accounts Receivable has a balance of $6,000, and the Allowance for Bad Debts has a credit balance of $400. The allowance method is used. What is the net realizable value of Accounts Receivable after a $150 account receivable is written off
Answer:
Net realizable value of accounts receivable is $5,600
Explanation:
Balance in allowance for uncollectible account = Balance before write off - Account written off
= $400 - $150
= $250
Net realizable value of accounts receivable is therefore;
Accounts receivable balance
$6,000
Less: Account written off
$150
Balance after write off
$5,850
Less : Allowance for uncollectible account
$250
Net realizable value
$5,600