Answer:
1. B. Country A
2. E. Singapore and Singapore
Explanation:
1. Country A
= (0.5 * 95) + (0.3 * 90) + ( 0.2 * 80) + (0.1 + 70)
= 45 + 27 + 16 + 7
= 95
Country B
= (0.5 * 60) + (0.3 * 70) + ( 0.2 * 80) + (0.1 + 80)
= 30 + 21 + 16 + 8
= 75
Country C
= (0.5 * 50) + (0.3 * 50) + ( 0.2 * 70) + (0.1 + 40)
= 25 + 15 + 14 + 4
= 58
Country D
= (0.5 * 35) + (0.3 * 35) + ( 0.2 * 60) + (0.1 + 40)
=17.5 + 10.5 + 12 + 4
= 44
2.
Taiwan
= (0.15*85 + 0.15*85 + 0.2*70 + 0.1*85 + 0.4*30)
= (12.75 + 12.75 + 14 + 8.5 + 12)
= 60
Thailand
= (0.15*95 + 0.15*20 + 0.2*65 + 0.1*50 + 0.4*70)
= (14.25 + 3 + 13 + 5 + 28)
= 63.25
Singapore
= (0.15*40 + 0.15*95 + 0.2*75 + 0.1*85 + 0.4*70)
= (6 + 14.25 + 15 + 8.5 + 28)
= 71.75
First Recommendation - Singapore
Thailand political risk falls to 30.
= (0.15*95 + 0.15*20 + 0.2*65 + 0.1*50 + 0.4*30)
= (14.25 + 3 + 13 + 5 + 12)
= 47.25
Second Recommendation - Singapore
To be useful, the information outputs of a system should be:______
a. relevant, reliable, timely, and accurate.
b. reliable, flexible, understandable and timeless.
c. such that one report meets all different users needs.
d. distributed only to management personnel.
Answer:
a.relevant,reliable,timely and accurate
Consider the following abbreviated financial statements for Cabo Wabo, Inc.: CABO WABO, INC. Partial Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners’ Equity Current assets $ 3,151 $ 3,367 Current liabilities $ 1,399 $ 2,078 Net fixed assets 14,060 14,511 Long-term debt 7,377 8,419 CABO WABO, INC. 2019 Income Statement Sales $ 45,000 Costs 22,522 Depreciation 3,885 Interest paid 995 a. What is owners’ equity for 2018 and 2019? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. What is the change in net working capital for 2019? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c-1. In 2019, the company purchased $8,038 in new fixed assets. The tax rate is 23 percent. How much in fixed assets did the company sell? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c-2. What is the cash flow from assets for the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-1. During 2019, the company raised $2,479 in new long-term debt. What is the cash flow to creditors? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-2. How much long-term debt must the company have paid off during the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Answer:
a. What is owners’ equity for 2018 and 2019?
owners' equity 2018 = $8,435
owners' equity 2019 = $7,381
b. What is the change in net working capital for 2019?
-$463
c-1. In 2019, the company purchased $8,038 in new fixed assets. The tax rate is 23 percent. How much in fixed assets did the company sell?
net capital spending = $14,511 - $14,060 + $3,885 = $4,336
net capital spending = fixed assets purchased - sold
$4,336 = $8,038 - fixed assets sold
fixed assets sold = $3,702
c-2. What is the cash flow from assets for the year?
operating cash flow = EBIT + depreciation - taxes = $18,593 + $3,885 - $4,276 = $18,202
cash flow from assets = operating cash flow - change in net working capital - net capital spending = $18,202 - (-$463) - $4,336 = $14,329
d-1. During 2019, the company raised $2,479 in new long-term debt. What is the cash flow to creditors?
new long term debts = $8,419 (2019) - $7,377 (2018) = $1,042
cash flow form creditors = new long term debts - interests = $1,042 - $995 = $47
d-2. How much long-term debt must the company have paid off during the year?
new long term debts = new debt - retired debt
$1,042 = $2,479 - retired debt
retired debt = $2,479 - $1,042 = $1,437
a)The owners' equity for 2018 and 2019 is $8,435 and $7,381. b) The change in net working capital for 2019 is $463. c-1) The fix assets sell are $3,702, c2-The cash flow from assets for the year is $14,329. d-1)The cash flow to creditors is $47 and d-2)The long-term debt that the company must have paid off during the year is $1,437.
a)owners' equity 2018 = $8,435 owners' equity 2019 = $7,381
b. The change in net working capital for 2019 is $463
c-1. The company purchased $8,038 in new fixed assets. The tax rate Is 23 percent. The fixed assets sold are:
net capital spending $14,511 $14,060+ $3,885-$4,336
net capital spending = fixed assets purchased-sold
$4,336 $8,038-fixed assets sold
fixed assets sold = $3,702
c-2. The cash flow from assets for the year is:
operating cash flow - EBIT + depreciation-taxes = $18,593 +$3,885- $4,276 $18,202
cash flow from assets = operating cash flow-change in net working capital- net capital spending $18,202 (-$463)-$4,336 $14,329
d-1. During 2019, the company raised $2,479 in new long-term debt. The cash flow to creditors is:
new long term debts = $8,419 (2019) - $7,377 (2018) = $1,042 cash flow form creditors = new long term debts interests $1,042 - $995 = $47
d-2. The long-term debt that the company must have paid off during the year is:
new long term debts = new debt-retired debt $1,042 $2,479 - retired debt
retired debt = $2,479 - $1,042 = $1,437
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Pharoah Company sublet a portion of its warehouse for five years at an annual rental of $71700, beginning on May 1, 2017. The tenant, Sheri Charter, paid one year's rent in advance, which Pharoah recorded as a credit to Unearned Rent Revenue. Pharoah reports on a calendar-year basis. The adjustment on December 31, 2017 for Pharoah should be
Answer:
Adjusting entries
Dr Unearned rent revenue $47,800
Cr Rent revenue $47,800 to record accrued rent revenue.
Explanation:
Contract value for one year $71,700
One month of rent $71,700/12 = $5,975
We will need to get how many month that has passed from May to December i.e 8 months
Value of 8 month of rent = 8 × $5,975
= $47,800 i.e earned portion of the contract.
Balance unearned rent revenue at year end= $71,700 - $47,800
= $23,900
When comparing a letter of credit and a banker's acceptance for financing international business transactions, a letter of credit
a. pays a specified amount if certain conditions are met. Conversely, a banker's acceptance represents an unconditional promise to pay
b. provides financing directly between buyers and sellers in different countries. A banker's acceptance provides an arrangement in which a bank serves as a broker taking title to the goods.
c. provides payment anywhere in the world. A banker's acceptance pays in areas in which the bank has a branch.
d. requires both the buyer and seller to deal in the same currencies. A banker's acceptance provides for currency exchange.
Answer:
The answer is A.
Explanation:
A letter of credit is a promise given by an issuing bank at the request of its customer in which the bank promises to pay the beneficiary the states amount within a specified period of time. It has three elements – the beneficiary/seller, the buyer/applicant and the issuing bank.
While A banker's acceptance is a short term instrument given by a bank that obligates itself to make a payment at a later date. It is like a post-dated check.
The efficiency gains resulting from a just-in-time inventory management system will allow a firm to reduce its level of inventories permanently by $473,000. What is the most the firm should be willing to pay for installing the system
Answer:
$473,000
Explanation:
Since the company can gain up to $473,000 by adopting a just in time (JIT) inventory management system, then that is the maximum amount of money that it should be willing to to spend on adopting and installing the system. It wouldn't make sense to spend more, and the less they spend the better. But the question refers to the maximum amount they should pay and that equals the total possible savings.
GDP per capita in the countries of Neverland and Everland are 2,000 and 500, respectively. This suggests that, other things being equal, the returns from capital investment would be:
Answer:
The answer is 'greater in everland'
Explanation:
GDP per Capita measures the average level of national per person. It's a measure of economic activity. The formula is simple - the country's gross domestic product divided by its total population.
GDP per capital tells us how much economic production value can be apportioned to every citizen. The higher the GDP per capital, the higher or greater the returns from capital investment.
Xie Company identified the following activities, costs, and activity drivers for 2017 The company manufactures two types of go-karts Deluxe and Basic.
Activity Expected Costs Expected Activity
handling materials $ 625,000 100,000 parts
Inspecting product 900,800 1,500 batches
Processing purchase orders 105,000 700 orders
Paying suppliers 175,000 500 invoices
Ensuring the factory 300,000 40,000 square feet
Designing packaging 75,000 2 models
Required:
1. Compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours
2. In January 2017, the Deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate.
Answer:
Instructions are below.
Explanation:
Giving the following information:
handling materials $625,000
Inspecting product $900,800
Processing purchase orders $105,000
Paying suppliers $175,000
Ensuring the factory $300,000
Designing packaging $75,000
Total overhead= $2,180,800
First, we need to calculate the plantwide predetermined overhead rate:
Estimated direct-labor hours= 125,000
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,180,800/125,000
Predetermined manufacturing overhead rate= $17.45 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Deluxe= 2,500*17.45= $43,625
Basic= 6,000*17.45= $104,700
Placker Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $155,000, variable manufacturing overhead of $3.40 per machine-hour, and 50,000 machine-hours. Recently, Job A881 was completed with the following characteristics: Total machine-hours 100 Direct materials $ 645 Direct labor cost $2,300 The total job cost for Job A881 is closest to:
Answer:
Total cost of job A881= $9,445
Explanation:
The total cost of Job 881 would be the sum of the direct cost and the manufacturing overhead
Total cost = Direct material + direct labour + variable manufacturing overhead + Fixed Overhead
Direct material and labour represent cost of material and labour incurred wholly and directly for Job A881
The overhead absorption rate(OAR) would be used to charge fixed manufacturing overhead to Job A881
The absorbed overhead = OAR × actual machine hours used for Job A881
OAR = budgeted overhead ÷ budgeted machine hours
OAR = $155,000 ÷ 50,000 machine hours = $3.1 per machine hour
Fixed manufacturing overhead absorbed = $3.1 × 100 = $3,100
Variable manufacturing overhead = $3.40 × 100 = $3,400
Total cost of job A881= 645 + 2,300 + 3,400 + 3,100 = $9,445
Total cost of job A881= $9,445
5. What kind of culture does the organization have? What are the values and norms? What effect does the organizational culture have on the way employees behave or treat customers?
The correct answer to this open question is the following.
Although the question is incomplete because it does not provide the name of the organization or any other reference, we can comment on the following.
The kind of culture that the organization should have is one that fosters diversity, openness, respect, values, and tolerance. The values and norms are so important because they are the standard of conduct that has to be instilled in the organization so people can know what to expect under different circumstances.
The effect the organizational culture has on the way employees behave or treat customers is a guideline based on values, traditions, conducts, and norms, that establish the foundation and the standard of performance that makes the organization unique. This way consumers will always prefer this organization for the kind of customer service it has and the way employees make clients feel special.
If Cost of Goods Sold is $145,000 and the beginning and ending Inventory balances are $18,000 and $13,000, respectively, inventory purchases equal:_______
A. $145,000.
B. $140,000.
C. $150,000.
D. $132,000.
Answer:
B. $140,000.
Explanation:
Inventory purchases refers to the amount of goods or merchandise bought during a particular period by merchandisers or sellers such as retailers, wholesalers, or distributors with aim of selling them to customers.
Inventory purchases can be determined using the formula for computing the cost of goods sold as follows:
Cost of goods sold = Beginning inventory + Inventory purchases - Ending inventory
Substituting the values in the question into the formula above and solve for inventory purchases, we have:
$145,000 = $18,000 + Inventory purchases - $13,000
Inventory purchases = $145,000 + $13,000 - $18,000 = $140,000
Therefore, inventory purchases equal $140,000.
1. The Troller Corporation’s common stock has a beta of 1.15. If the risk-free rate is 3.5 percent and the expected return on the market is 11 percent, what is the company’s cost of equity capital?
Answer:
Cost of equity capital is 0.12125 or 12.125%
Explanation:
The cost of equity capital or the required rate of return is the minimum rate of return expected by the investors to invest in the stock of the company. The cost of equity capital can be calculated using the CAPM equation. The formula for CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
r is the cost of equity capital or required rate of returnrRF is the risk free raterM is the return on Marketr = 0.035 + 1.15 * (0.11 - 0.035)
r = 0.12125 or 12.125%
Gion Company is considering eliminating its windows division, which reported an operating loss for the recent year of $111,000. Division sales for the year were $1,170,000 and its variable costs were $1,035,000. The fixed costs of the division were $245,000. If the windows division is dropped, 60% of the fixed costs allocated to it could be eliminated. The impact on Gion’s operating income from eliminating this business segment would be:
Answer:
$12,000 increase
Explanation:
The computation of the impact on operating income from eliminating this business segment is shown below:
= Lost revenue + Variable cost avoided + Eliminated Fixed cost
= -$1,170,000 + $1,035,000 + $245,000 × 0.60
= -$1,170,000 + $1,035,000 + $147,000
= $12,000
The $12,000 represent the increase in operating income
Define the role of the mathematical concepts of maximization and equilibrium in microeconomic theory.
Answer:
Functions and graphs are two mathematical concepts that are heavily used in microeconomics.
Explanation:
1. Functions
Economics is full of functions: manufacturing functions, distribution functions, parameter values, components for welfare programs, and so on. A function is indeed a connexion between several sets of data, such that the second set correlates exactly to one variable for each value in one collection.
2. Graphs
By visualising it in a graph we can enhance the innate knowledge of a practices and organisational performance. In a chart, independent variable effects are generally read off the horizontal axis, and the dependent variable effects are generally read off another vertical axis. And for variables, each position in the line matrix correlates to a set of variables
Jorge owns a U.S. textile company. After a few years of resisting the trend, he realizes the only way his company can remain competitive is to outsource at least some of its production overseas. When looking for an international partner, Jorge should
Complete Question:
Jorge owns a U.S. textile company. After a few years of resisting the trend, he realizes the only way his company can remain competitive is to outsource at least some of its production overseas. When looking for an international partner, Jorge should;
A. Demand socially responsible behavior from his business partner.
B. Demand that his business partners adapt to U.S. culture and social behaviors.
C. Ignore the ethics of potential overseas business partners because the purpose of outsourcing is to make a profit.
D. Remind himself that his business responsibility is limited to his own actions.
Answer:
A. Demand socially responsible behavior from his business partner.
Explanation:
In this scenario, Jorge owns a U.S. textile company. After a few years of resisting the trend, he realizes the only way his company can remain competitive is to outsource at least some of its production overseas. When looking for an international partner, Jorge should demand socially responsible behavior from his business partner.
Its important to note that in order to grow your business successfully with a good reputation and customer satisfaction, you will have to bring in competent, credible, ethical and reliable professionals on board. Jorge should demand for socially responsible individuals from the outsourcing firm as this would go a long way to help his business achieve its aims, goals and by extension develop globally.
Hence, in order to build a wonderful and successful international brand, it's important that Jorge ask the recruiters (outsourcing firm) to go for individuals that are socially responsible. This simply entails, individuals who are ethical and do not have bad vices, criminal records or charges against them.
2. Lereve Company has recorded the following information about the results of its operations for the fourth quarter: Sales revenues Variable cost of sales Fixed costs: Common Traceable Total Company $200,000 $ 60,000 $100,000 $ 50,000 Western Division $ 80,000 30,000 25,000 20,000 Eastern Division $120,000 30,000 75,000 30,000 Based on this information, prepare a segmented income statement for the quarter and comment on the results.
Answer:
Lereve Company
Segmented Income Statement for the fourth quarter:
Total Company Western Division Eastern Division
Sales revenues $200,000 $80,000 $120,000
Variable cost of sales 60,000 30,000 30,000
Contribution $140,000 $50,000 $90,000
Fixed costs:
Common $100,000 $25,000 $75,000
Traceable 50,000 20,000 30,000
Net Income (Loss) ($10,000) $5,000 ($15,000)
The results show that the Eastern Division made a net loss of $15,000 and the Western Division raked in a net income of $5,000, which resulted in the company-wide net loss of $10,000. This loss could be traced to the allocated common fixed costs of the division, because its contribution to fixed costs was substantial and better than the Western Division's.
Explanation:
When the results of the operations of a divisional company like Lereve Company are prepared in segmental form, the performance pictures become clearer. Management is enabled to focus on the segments or the factors that are generating the loss to the company. Perhaps, as in this case, the problem may not be with the division, but the allocation of fixed costs to the divisions. It can still be traced to the company as a whole, since it is generating much more fixed costs than it could afford from its revenue.
Amanda Winter worked as a public engagement coordinator at Safe Food Alliance until three months ago when her manager, Laura Morris, promoted her to the position of a sustainable food campaigner. However, soon after this, Laura noticed that Amanda was facing major difficulties in achieving campaign milestones and the project was falling behind schedule due to her lack of performance. Which of the following, if true, would most strengthen the argument that Laura was influenced by the halo effect in her decision to promote Amanda? A) Laura is known to micromanage most of her projects. B) Laura uses cultural stereotyping in order to speed up the process of decision making. C) Laura has made good hiring decisions in the past and is known to be an unbiased judge of character. D) Laura sat in on only one of Amanda's presentations prior to giving her the promotion. E) Laura worked closely with Amanda over a period of eight months.
Answer:
Option D is the correct answer to this question.
Explanation:
Laura sat in on only one of Amanda's presentations before giving her the promotion.
They were made by hand before slides were mounted on computers. Designing a PowerPoint presentation took several hours and though it was costly. Presentations were illustrated back then people with devices such as journal flip charts and computer monitors, but these have been used in schools and conference rooms worldwide.
Other options are incorrect because they are not related to the given scenario.
The shipping problem in LP is also called the:__________.
a) production mix problem.
b) freight train problem.
c) transportation problem.
d) land and sea problem.
e) none of the above.
Answer:
c) transportation problem
Explanation:
The SHIPPING PROBLEM in LP which is also known as the TRANSPORTATION PROBLEM in LP can be defined as a unique type of linear programming problem in which the aim and purpose is to help to minimise the overall cost of a product which occured when distributing the product from a number of sources to another number of destinations.
Therefore because of its unique structure the method which is the usual simplex method is not suitable to been used in solving the transportation problems.
_____ involves looking at all the influences that could affect employee performance in the organization and determining their fit within organizational goals and objectives.
Answer: Organizational analysis
Explanation: Organizational analysis involves looking at all the influences that could affect employee performance in the organization and determining their fit within organizational goals and objectives.
" Fiona wants to sell a local advertising calendar. She knows there are 1000 households in her community, and estimates 30 percent will buy the calendar. The printing company will charge a $100 set up fee and calendars will cost $1 each to print. What price will she need to charge to cover all costs and make a $500 profit. Group of answer choices"
Answer:
The answer is $3
Explanation:
Pr = Q(P-VC) - FC
Where Pr is the profit made
Q is the quantity of calendar to be sold
P is the price to be charged
VC is the variable cost
FC is the fixed cost
Quantity of calendar to be produced is
30 percent of 1000
0.3 x 1000 units
= 300 units
500 = 300(x-1) - 100.
500 = 300x - 300 - 100
300x = 500 + 300 + 100
300x = 900
x = 900/300
x = 3
The price to be charged to cover all costs and make a $500 profit is therefore $3
n order to run the business Economan gave up a chance to earn $110,000 in a job at the local Space Agency. In addition, he estimates that instead of investing in his business he could have put money in the bank and earned $5,000 interest. A) What is Economan’s accounting profit?
Answer: $100,000
Explanation:
His accounting profit is his Revenue less his Explicit Costs. Explicit costs are those costs that have an actual payment/ physical cash attached to them.
Accounting Profit = Revenue - Explicit Costs
= 230,000 - ( 10,000 + 100,000 + 20,000)
= 230,000 - 130,000
= $100,000
Setrakian Industries needs to raise $96.2 million to fund a new project. The company will sell bonds that have a coupon rate of 6.04 percent paid semiannually and that mature in 30 years. The bonds will be sold at an initial YTM of 6.85 percent and have a par value of $2,000. How many bonds must be sold to raise the necessary funds
Answer:
53,597 Bonds
Explanation:
The first is to determine how much each bond of $2,000 face value is sold using the excel pv function below:
=-pv(rate,nper,pmt,fv)
rate is the yield to maturity which is 6.85% divided by 2
nper is the number of semiannual coupons the bond would pay i.e 30*2
pmt is the amount of semiannual coupon i.e $2,000*6.04%*6/12=60.4
fv is the face value of $2,000 per bond
=-pv(6.85%/2,60,60.40,2000)= 1,794.86
a bond is $ 1,794.86
number of bonds=$96,200,000/$1,794.86= 53,597
The total value (debt plus equity) of Wilson Dover Inc. is $500 million and the face value of its 1-year coupon debt is $200 million. The volatility (σ) of Wilson Dover's total value is 0.60, and the risk-free rate is 5%. Assume that N(d1) = 0.9720 and N(d2) = 0.9050. Refer to the data for Wilson Dover Inc. What is the value (in millions) of Wilson Dover's debt if its equity is viewed as an option?
Answer:
$313.81
Explanation:
Calculation for the value (in millions) of Wilson Dover's debt if its equity is viewed as an option
Total value = P = $500.0
Debt = X = $200.0
Volatility (σ) = 0.6
rRF = 5%
d1 = 1.910485
N(d1) = 0.9720
d2= 1.310485
N(d2)=0.9050
Using this formula
Vs= PN(d1) − Xe−RFtN(d2)
Let plug in the formula
Vs= $500(0.9720) − $200e−0.05(1)(0.9050)
Vs= $485.98 − $172.17
Vs= $313.81
Therefore the value (in millions) of Wilson Dover's debt if its equity is viewed as an option will be $313.81
Changes in weather patterns are increasing administrative costs for insurance companies. These added costs often exceed the amount of the premiums coming in and claim payments going out. To address this problem, insurance companies typically Group of answer choices
Answer: D. build up the amount of their reserve
Explanation:
The Insurance companies typically increase the reserves from which they pay these Administrative costs. It is important that they increase the reserve sufficiently because sometimes it may be difficult to accurate quantify just how much will be need to match these new costs. This will ensure that they have enough cash readily available and on hand to meet these cost demands easily and timely.
ABC Company has the following authorized stock: Common stock: 1.00 par value, 100,000 shares On 1/11/15, ABC Company issued 10,000 shares of common stock for $5 per share (cash). How much cash does the company receive
Answer:
Amount of cash received = $50,000
Explanation:
The authorized share capital is the total maximum amount of shares in units that a company can raised as contained in its memorandum of association.
The issued share capital is the proportion of the authorized share capital that a company has decided to offer to investors to raise capital.
The total amount of issued share capital raised would be equal to
Issued share capital = units issued × price per units
= 10,000 × $5 = $50,000
Amount of cash received = $50,000
Based on the information given the amount that the company received is $50,000.
Using this formula
Cash received=Shares of common stock× Per share
Where:
Shares of common stock=10,000 shares
Per share=$5 per share
Let plug in the formula
Cash received=10,000×$5
Cash received=$50,000
Inconclusion the amount that the company received is $50,000.
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Match each word with the phrase: diversification- the period of time after people end their working careers, guaranteed- to promise and deliver
Answer:
*Diversification => The practice of putting money into more than one kind of investment
*Guarantee => To promise and deliver a future result
*Return => The money earned on an investment in a certain period of time
*Liquidity => The ability to quickly convert something into cash
*Retirement => The period of time after people end their working careers
Explanation:
1. Diversification is the act of investing resources into different areas or sectors of an economy. For example, a company that produces mainly clothing and textile materials can decide to diversify by investing in other areas like agriculture or food processing.
2. Guarantee is usually the ability of a company to promise, for example, certain qualities of a product to the consumers, and also matching the promise with the actual fulfillment of what was promised to the consumers.
3. Return: for example, if I invest $5000 on a restaurant business, and after like 12 months, the money generated on the money invested is my returns.
4. Liquidity: for example, if I have harvested cash crops, and I need money immediately, I can easily generate cash by selling them. The ease at which an asset can be converted to cash is what is termed liquidity.
5. Retirement: virtually all careers have a set time when their employees are due for retirment. The period when one leaves a career officially, after spending a certain period of years in service, is what is termed retirement.
Answer:
couldn't fit the whole thing in
At the end of 2010, Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $19,850. The account had an unadjusted credit balance of $12,000 at that time.
Required:
Prepare journal entries for each of the following.
A. The appropriate bad debt adjustment was recorded.
B. Later, an account receivable for $1,000 was determined to be uncollectible and was written off.
Answer:
A.Dr Bad Debt Expense 7,850
Cr Allowance for Doubtful Accounts 7,850
B.Dr Allowance for Doubtful Accounts 1,000
Cr Accounts Receivable 1,000
Explanation:
Preparation of the Journal entries for Blackhorse Productions,
A.Since we were that the company used the aging of accounts receivable method to help them estimate that Allowance for Doubtful Accounts should be the amount of $19,850 in which the account had an unadjusted credit balance of the amount $12,000 this means that the transaction will be recorded as:
Dr Bad Debt Expense 7,850
Cr Allowance for Doubtful Accounts 7,850
[19,850 - 12,000]
B. Since the company later had an account receivable for the amount of $1,000 whichb was determined to be uncollectible and was written off this means that the transaction will be recorded as:
Dr Allowance for Doubtful Accounts 1,000
Cr Accounts Receivable 1,000
Celebrate Holidays Company signed a 9%,10minusyearnote for $ 167 comma 000.The company paid an installment of $ 2 comma 400for the first month. What portion of the first monthly payment is principal? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)
Answer:
$1,147.50
Explanation:
The computation of the principal amount of first monthly payment is shown below:
As we know that
Monthly payment comprises of principal + interest
Monthly payment = interest + principal
where,
Monthly payment is $2,400
Interest would be
= $167,000 × 9% ÷ 12 months
= $1,252.50
So, the principal amount is
= $2,400 - $1,252.50
= $1,147.50
"Reginald greets and chats with his regular customers every morning when they come in for coffee. He offers them tastes of anything special he is cooking that day, and has a database with their birthdays, offering regulars a free meal on their birthday. Reginald knows his regular customers create repeat business and: "
Answer:
spread positive word of mouth
Explanation:
Reginald knows his regular customers create repeat business and spread positive word of mouth. This means that the repeat customers leave happy and tell their friends about the great experience they had at Reginald's restaurant. This creates enthusiasm in the repeat customers' friends which in term causes them to go to Reginald's business and try the food. This creates more repeat customers and increased profitability for Reginald's business.
A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 computers if she works 2 hours, 9 computers if she works 3 hours, and 10 computers if she works 4 hours. Pam cannot work more than 4 hours day. Each computer consists of a motherboard, a hard drive, a case, a monitor, a keyboard, and a mouse. The total cost of these parts is $600 per computer. What is the marginal cost of producing the computers that Pam can assemble during her 2nd hour of work
Answer:
$1,840
Explanation:
In order to calculate the Marginal cost of producing the computers in 2nd hour of work, we need to add the marginal cost of computer and marginal cost of wage in the 2nd hour of work.
MC = MC(computers) + MC(wage)
MC = $1,800(w) + $40
MC = $1,840
Working
MC (computers ) = 3 x 600$ = $1,800
hour computers assembled
1st 4
2nd 7
If pam works 2 hours she can assemble 7 computers but she already assembled 4 computers in 1st hour.
So the 2nd-hour computers will be 3 ( 7 - 4) computers.
Suppose Azerbaijan decides to increase its production of nails by 20. What is the opportunity cost of this decision
Answer: c. 5 bolts.
Explanation:
From the graph we see that the opportunity cost of making 80 nails is 20 bolts.
Opportunity cost of making 1 nail is;
80/80 : 20/80
1 : ¼
If 1 nail has an opportunity cost of ¼ bolts then making 20 extra nails would cost;
= 20 * ¼
= 5 bolts.