During the Great Depression, many state governors declared bank holidays to prevent bank runs and stabilize the economy.
Bank holidays were enforced shutdowns of financial institutions and were intended to give banks time to restore their reserves. During this period, the financial sector experienced a period of uncertainty as people withdrew their savings in large amounts to prevent losing them.
In the absence of an adequate deposit insurance system, many banks were unable to provide the cash demanded by their depositors. The government's response was to implement a temporary shutdown of the banking system, and this helped to alleviate the fears of depositors. The banking holiday also allowed for a reassessment of banks' financial status, and this helped restore people's confidence in the banking system.
In conclusion, during the Great Depression, bank holidays were enforced to help prevent bank runs and restore the public's confidence in the banking system. Bank holidays were an effective tool for the government to restore stability to the financial system, and this helped the country recover from the economic crisis.
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Given the following information on foreign currency positions (all in $thousands) for Eastpac Bank.
Currency
Assets
Liabilities
FX Bought
FX Sold
Euro
300
170
320
Yen
60
20
100
220
What are Eastpac Bank's net exposure (in $thousands) in Japanese Yen and its exposure to the fluctuation in the AU$/Japanese Yen exchange rate?
a. 0, not exposed to the fluctuation in Japanese Yen exchange rate
b. +80, exposed to the appreciation in Japanese Yen
c. -80, exposed to the appreciation in Japanese Yen
d. -80, exposed to the depreciation in Japanese Yen
e. +80, exposed to the depreciation in Japanese Yen
To determine Eastpac Bank's net exposure in Japanese Yen and its exposure to the fluctuation in the AU$/Japanese Yen exchange rate, we need to calculate the net position in Japanese Yen and the amount of FX Bought and FX Sold in Japanese Yen.
Net Exposure in Japanese Yen:
Assets in Yen: 60
Liabilities in Yen: 20
Net Exposure = Assets - Liabilities
Net Exposure = 60 - 20 = 40
Exposure to the Fluctuation in AU$/Japanese Yen Exchange Rate:
FX Bought in Yen: 100
FX Sold in Yen: 220
Exposure = FX Bought - FX Sold
Exposure = 100 - 220 = -120
Since the exposure is negative (-120), it means that Eastpac Bank is exposed to the depreciation in Japanese Yen. However, the question asks specifically about the exposure to the fluctuation in the AU$/Japanese Yen exchange rate. To determine this, we need to consider the exposure in relation to the AU$.
The exposure to the fluctuation in the AU$/Japanese Yen exchange rate is determined by multiplying the exposure in Japanese Yen by the exchange rate. However, the exchange rate between AU$ and Japanese Yen is not provided in the given information. Without the exchange rate, we cannot accurately determine the exposure to the fluctuation in the AU$/Japanese Yen exchange rate.
Therefore, based on the information given, the correct answer is:
Option a. 0, not exposed to the fluctuation in the Japanese Yen exchange rate.Learn more about fluctuation here
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To determine Eastpac Bank's net exposure in Japanese Yen and its exposure to the fluctuation in the AU$/Japanese Yen exchange rate, we need to calculate the net position in Japanese Yen and the amount of FX Bought and FX Sold in Japanese Yen.
Net Exposure in Japanese Yen:
Assets in Yen: 60
Liabilities in Yen: 20
Net Exposure = Assets - Liabilities
Net Exposure = 60 - 20 = 40
Exposure to the Fluctuation in AU$/Japanese Yen Exchange Rate:
FX Bought in Yen: 100
FX Sold in Yen: 220
Exposure = FX Bought - FX Sold
Exposure = 100 - 220 = -120
Since the exposure is negative (-120), it means that Eastpac Bank is exposed to the depreciation in Japanese Yen. However, the question asks specifically about the exposure to the fluctuation in the AU$/Japanese Yen exchange rate. To determine this, we need to consider the exposure in relation to the AU$.
The exposure to the fluctuation in the AU$/Japanese Yen exchange rate is determined by multiplying the exposure in Japanese Yen by the exchange rate. However, the exchange rate between AU$ and Japanese Yen is not provided in the given information. Without the exchange rate, we cannot accurately determine the exposure to the fluctuation in the AU$/Japanese Yen exchange rate.
Therefore, based on the information given, the correct answer is:
Option a. 0, not exposed to the fluctuation in the Japanese Yen exchange rate.
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Tax
Havens and Africa’s foreign aid dependence are two sides of a coin.
Discuss
A tax is a financial charge or levy imposed on an individual or entity by a government authority or other body to finance public expenditure. In most jurisdictions, tax is levied on both goods and services and is calculated as a percentage of the value of the product or service being taxed.
Taxes can be direct or indirect, and they can be progressive, regressive, or proportional. The tax code is a set of rules and regulations that govern the collection of taxes in a particular jurisdiction. It includes provisions for calculating the amount of tax due, collecting payments, and enforcing tax laws.
The tax code also contains provisions for tax exemptions and deductions, which are designed to encourage certain behaviors or provide relief for individuals or entities facing financial hardship.
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Heat, Inc. uses budgeted direct labor-hours to budget for manufacturing overhead. Variable overhead is budgeted at $1.30 per direct labor-hour. Heat, Inc. has budgeted fixed manufacturing overhead at $119,600 per month, which includes depreciation of $19,710 and all other fixed manufacturing overhead costs represent current cash flows. In the budgeting process, Heat, Inc. has estimated that 9,200 direct labor-hours will be required in September. Required: 1. What are the budgeted cash disbursements for manufacturing overhead for September? 2. What is the predetermined overhead rate for September?
The budgeted cash disbursements for manufacturing overhead for September can be calculated by adding the fixed manufacturing overhead to the variable overhead based on the budgeted direct labor-hours.
Variable overhead = Budgeted variable overhead rate * Budgeted direct labor-hours
= $1.30 per direct labor-hour * 9,200 direct labor-hours
= $11,960
Budgeted cash disbursements for manufacturing overhead = Fixed manufacturing overhead + Variable overhead
= $119,600 + $11,960
= $131,560
Therefore, the budgeted cash disbursements for manufacturing overhead for September are $131,560.
The predetermined overhead rate for September can be calculated by dividing the budgeted manufacturing overhead by the budgeted direct labor-hours.
Predetermined overhead rate = Budgeted manufacturing overhead / Budgeted direct labor-hours
= ($119,600 + $11,960) / 9,200
= $131,560 / 9,200
= $14.30 per direct labor-hour
Therefore, the predetermined overhead rate for September is $14.30 per direct labor-hour.
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the laissez faire policy prescription to eliminate unemployment was to
Laissez-faire policy advocates believed that eliminating government intervention and regulation in the economy would naturally lead to full employment through market forces and individual freedom.
The laissez-faire policy prescription to eliminate unemployment rested on the idea that by minimizing government intervention and regulation in the economy, market forces would be allowed to operate freely. Advocates believed that this would create an environment conducive to economic growth and job creation. They believed that individuals, free from government interference, would engage in voluntary transactions, leading to the efficient allocation of resources and ultimately reducing unemployment.
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In 2017, Coca-Cola reported inventory of $2.655 billion and cost of goods sold of $35.41 billion. Coca-Cola has an annual holding cost percentage of 25%. Express your answer as a percentage and round to two decimal places. What was their holding cost as a percentage of cost of goods sold during 2017? ____ %
The holding cost as a percentage of the cost of goods sold during 2017 for Coca-Cola was approximately 1.88%.year.
To determine the holding cost as a percentage of the cost of goods sold, we need to calculate the holding cost and divide it by the cost of goods sold, then multiply by 100 to express it as a percentage. The holding cost is calculated by multiplying the inventory value by the annual holding cost percentage.
Holding Cost = Inventory Value * Annual Holding Cost Percentage
Holding Cost = $2.655 billion * 0.25 = $663.75 million
Now, we can calculate the holding cost as a percentage of the cost of goods sold:
Holding Cost Percentage = (Holding Cost / Cost of Goods Sold) * 100
Holding Cost Percentage = ($663.75 million / $35.41 billion) * 100 ≈ 1.88%
Therefore, the holding cost as a percentage of the cost of goods sold during 2017 for Coca-Cola was approximately 1.88%.
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QUESTION 20 of 20: When buying media, there is always a tradeoff between: OOOOO a) The quality of the medium and the frequency at which people are exposed to the ad b) The cost of the ad placement and the number of people exposed to the message c) Control and cost d) Ability to track the medium and the cost of the ad placement O e) Credibility and cost
The correct answer is "b) The cost of the ad placement and the number of people exposed to the message."
When buying media, there is always a tradeoff between the cost of the ad placement and the number of people exposed to the message. This tradeoff involves considering the budget available for advertising and determining the most effective way to reach the target audience within that budget. Different media platforms have different costs associated with ad placements, and the number of people reached by those placements can vary.
For example, a television advertisement during prime time may have a higher cost but can potentially reach a larger audience compared to a newspaper advertisement. On the other hand, a digital ad campaign may have lower costs but may target a more specific or niche audience.
Finding the right balance between the cost of the ad placement and the number of people exposed to the message is crucial in optimizing the effectiveness and efficiency of advertising efforts.
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Under what circumstances should the Product Backlog be reprioritized?
A. The Team should reprioritize the Product Backlog only at the end of a new Sprint.
B. The Product Owner should reprioritize the Product Backlog whenever new information is learned
C. The Scrum Master should reprioritize the Product Backlog only at the end of a new Sprint
D. The Scrum Master should reprioritize the Product Backlog only at the beginning of a new Sprint
The Product Backlog should be reprioritized whenever new information is learned by the Product Owner.
Is it necessary to reprioritize the Product Backlog whenever new information is acquired by the Product Owner?The Product Backlog is a dynamic artifact in Scrum that represents the evolving list of features, enhancements, and fixes for a product. It serves as the single source of requirements for the Scrum Team. Reprioritizing the Product Backlog is crucial to ensure that the most valuable and relevant items are at the top, ready for implementation.
The main answer states that the Product Owner should reprioritize the Product Backlog whenever new information is learned. This means that the Product Owner should continuously evaluate and update the order of items in the backlog based on emerging insights, market changes, customer feedback, or any other relevant information that influences the product's direction.
By reprioritizing the backlog when new information arises, the Product Owner can optimize the team's efforts and maximize the product's value. It allows for flexibility and adaptability in responding to changing requirements, market conditions, and customer needs.
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Several years ago George Danton, after being laid off, decided he could benefit from his love of flowers by opening a flower shop. The shop uses a December 31 taxation year. The busi- ness has been a great success, both in terms of being profitable and in enhancing George's enjoyment of life. As George is the sole proprietor of the business, he has had no need to report income to any- one. Given this, he has always used income tax concepts and principles to calculate his annual business income. Based on these income tax principles, George determine that his business income for the year ended December 31, 2021 was $613,300. George has decided to expand his business into a neighbouring town. To do this, he needs a mortgage on the property that will be acquired for operations in the new location. To his dismay, he finds that the lender is insisting on financial statements prepared in accordance with Accounting Standards for Private Enterprises (ASPE). As he has no knowledge of ASPE, he has asked you to determine the amount of ASPE-based income that Danton's Flowers has earned for the 2021 year. Other Information: 1. In the business income calculation based on income tax (ITA 67.1), George deducted $8,450 in business meals and entertainment costs. 2. Because his shop is near the U.S. border, George spent $7,420 advertising on a U.S. television station. The commercials were directed at Canadian resident viewers. 3. Because of a broken window during early December, live flowers costing $6,320 were destroyed. 4. During 2021, George paid a high-level Canada customs official bribes totalling $19,460. In return, he received priority clearance for all his imports, as well as clearance for live plant imports that should have been restricted. Since this bribe is considered to be an illegal payment to a government official, it is not deductible for income tax purposes. 5. During 2021, George made $6,300 in contributions to a local hospital that is a registered charity. He claimed this amount as a business expense. 6. For income tax purposes, the method chosen to value ending inventory is FMV, which is $86,300. The cost, determined on a FIFO basis, was $73,150. 7. George deducted $51,400 in CCA for the year. You have determined that amortization under ASPE would have been $46,350. 8. George spent $6,070 on uniforms for the local men's softball team, whose games are heav- ily attended and supported by the community. 9. George owns a delivery vehicle that cost $29,000. It is the only class 10 property of the busi- ness and, as of January 1, 2021, the class had a UCC balance of $8,455. During the year, the vehicle is sold for $4,300 and replaced with a leased vehicle. Under ASPE, its carrying value at the time of the sale would have been $14,500. The leasing costs are fully deductible for income tax purposes. 10. In December 2021, George spent $15,200 on landscaping the grounds around his store. Given the late date at which this work was done, no amortization would be required for accounting purposes with respect to these costs for 2021. It is expected that these land- scaping improvements will last at least 10 years. 11. During 2021, George sold class 8 property for $21,300. The capital cost of the property sold was $32,600. At the end of the year the UCC of class 8 was positive and other properties remained in the class. The accounting carrying value of the property that was sold was $18,300. 12. No income taxes were deducted in calculating net income. Required: Determine the 2021 ASPE-based accounting income for Danton's Flowers. Do not include in your calculations any income tax that George will have to pay on this income. If you do not make an adjustment for any of the items included in other information, indicate why this is the case. General Comment This reverse reconciliation exercise requires using the opposite approach applied in a typical reconciliation from accounting income to net income. For example, amortiza- tion would be added and CCA deducted in a standard reconciliation. In this reverse approach, however, amortization would be deducted and CCA added.
Based on the information, the ASPE-based accounting income will be $556,820.
How to calculate the valueNet income (income tax basis) $613,300
Adjustments:
* Add: Illegal payments to government official ($19,460)
* Add: Amortization (46,350)
* Deduct: Business meals and entertainment (8,450)
* Deduct: U.S. advertising (7,420)
* Deduct: Inventory write-down (13,150)
* Deduct: Gain on sale of class 8 property (3,300)
* Deduct: Landscaping (15,200)
ASPE-based accounting income $556,820
Illegal payments to government official is not a deductible expense under ASPE.
Amortization for ASPE requires that property be amortized over its useful life, while income tax allows for a faster write-off through CCA.
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profit/lose? A. \( \$ 400 \) B. \( -\$ 400 \) C. \( \$ 100 \) D. \( -\$ 100 \)
The answer to the question depends on the context and the perspective from which profit/loss is being calculated. Without further information, it is not possible to determine the correct answer.
Typically, profit or loss is calculated by subtracting the total expenses from the total revenue. If the revenue exceeds the expenses, it results in a profit, while if the expenses exceed the revenue, it leads to a loss. In the given options,
$
400
$400 and
−
$
400
−$400 represent the magnitude of the profit or loss, while
$
100
$100 and
−
$
100
−$100 represent a smaller magnitude of profit or loss.
To accurately determine the profit or loss, specific details about the revenue and expenses associated with a particular scenario or transaction are required. Without this information, it is not possible to choose the correct answer.
In summary, without additional context or information about the revenue and expenses, it is not possible to determine whether the profit or loss is
$
400
$400,
−
$
400
−$400,
$
100
$100, or
−
$
100
−$100.
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An electrical company manufactures transformer at a cost P6k per transformer. If the maintenance of the equipment cost P100k pesos every six months and the company sells the unit for P75k per unit. The employees' salaries are P20k per month. If there are 10 employees in total. What is the volume of sales that must be made each month to achieve breakeven?
To achieve the breakeven point in the sale of transformers, the total revenue should be equal to the total cost. Let's determine the monthly cost of the company using the given information.
Since the company can't sell a fraction of a transformer, they need to sell at least 4 transformers per month to achieve the breakeven point. Therefore, the volume of sales that must be made each month to achieve breakeven is more than 100 words is 4 transformers.
This results in a profit of 75,000 - 6,000 = 69,000 pesos per transformer.To find the volume of sales required to achieve breakeven, we can use the following formula: Breakeven volume = Total monthly cost / Profit per unit Breakeven volume = 256,000 / 69,000 = 3.71 transformers.
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A friend asks to borrow $52 from you and in return will pay you $52 in one year. If your bank is offering a 5.9% interest rate on deposits and loans: A. How much would you have in one year if you deposited the $49 instead? B. How much money could you borrow today if you pay the bank $52 in one year? C. Should you loan the money to your friend or deposit it in the bank?
Friend has asked to borrow 52, and in return, they will pay you 52 in one year. In the meantime, your bank is offering a 5.9 percent interest rate on deposits and loans. The following are the solutions:A.
Formula for calculating interest:
Interest = (Principal * Rate * Time)/100Interest
=(49 * 5.9 * 1)/100Interest 2.891The interest earned on the deposited 49 is 2.891.Thus, in one year, you would have 49 + 2.891
= 51.891.B.The formula for calculating present value.
Present Value = Future Value / (1 + r)nWhere,
Future Value 52r Interest Rate 5.9% 0.059n Number of periods 1Present Value = 52 / (1 + 0.059)¹Present Value 49.052Thus, you could borrow 49.052 from the bank today if you pay 52 in one year.C. As per the calculations above, you would only gain 0.891 in interest by lending the 52 to your friend for one year.
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Identify and discuss the principles of assessment. Provide
examples to illustrate your answer (20 Marks)
The principles of assessment include validity, reliability, practicality, fairness, and flexibility.
Validity:This means that the assessment method must be relevant and cover the course material, assessing what it is supposed to assess. The evaluation approach should be designed to test the specified learning outcomes, not anything else.
Reliability:An assessment is considered reliable if it can yield reliable and reproducible results when used again and again to evaluate the same knowledge or skill. To enhance reliability, the assessment should be designed to prevent bias, have clear marking criteria, and use a suitable method for marking.
Practicality:Practicality refers to the convenience and efficiency of the assessment. Assessments should be convenient to use, should not overburden the students, and should not take an excessive amount of time.Fairness:Fairness refers to treating all students equally and not being biased towards any student. The assessment should be equal for all students, regardless of gender, race, or religion. Assessments should be unbiased and should not discriminate based on individual student characteristics.
Flexibility:Flexibility refers to the ability to adapt to the individual needs and learning styles of students. The assessment should be adjustable to the individual learning requirements of the student and should take into account the variety of student styles.
Examples of these principles of assessment include using valid and reliable tests to assess knowledge or skills, designing practical and manageable assessment tasks, marking with clear criteria, treating students fairly and equally, and allowing flexibility in assessment approaches to meet the needs of all students.
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equipment as a result ? Selected Answer: B. The Price of personal protective equipment would increase, signaling to consumers that they should purchase less personal protective equipment. Answers: A. The Price of personal protective equipment would decrease, signaling to producers that less production is needed. B. The Price of personal protective equipment would increase, signaling to consumers that they should purchase less personal protective equipment. C. The Supply of personal protective equipment would decrease as production becomes more expensive. D. The Price of personal protective equipment would decrease because Producers could not meet the Demand at lower prices. E. None of the Above
The Price of personal protective equipment would increase, signaling to consumers that they should purchase less personal protective equipment would be the effect of increasing the cost of production of equipment.
What is the effect of increasing the cost of production of equipment?The effect of increasing the cost of production of equipment is that the price of personal protective equipment would increase, signaling to consumers that they should purchase less personal protective equipment.
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What is the value today of receiving $1,908.00 per year forever? Assume the first payment is made next year and the discount rate is 10.00%.
What is the value today of receiving $2,974.00 per year forever? Assume the first payment is made 10.00 years from today and the discount rate is 5.00%.
Suppose you deposit $2,214.00 into an account today that earns 14.00%. In 13.00 years the account will be worth $________.
In 13.00 years, the Account will be worth = $16,406.14
To calculate the present value of receiving a fixed amount per year forever, we can use the formula for the present value of a perpetuity:
Present Value = Annual Payment / Discount Rate
1. For receiving $1,908.00 per year forever, with a discount rate of 10.00%:
Present Value = $1,908.00 / 0.10 = $19,080.00
Therefore, the value today of receiving $1,908.00 per year forever is $19,080.00.
2. For receiving $2,974.00 per year forever, with a discount rate of 5.00%:
Since the first payment is made 10.00 years from today, we need to discount the cash flows back to the present value.
Using the formula for the present value of a perpetuity, we divide the annual payment by the discount rate:
Present Value = Annual Payment / Discount Rate
Present Value = $2,974.00 / 0.05 = $59,480.00
Therefore, the value today of receiving $2,974.00 per year forever, with the first payment made 10.00 years from today, is $59,480.00.
3. If you deposit $2,214.00 into an account today that earns 14.00% and the account will be worth $________ in 13.00 years, we can use the formula for the future value of a present amount:
Future Value = Present Value × (1 + Interest Rate) ^ Time
Future Value = $2,214.00 × (1 + 0.14) ^ 13 = $16,406.14
Therefore, in 13.00 years, the account will be worth $16,406.14.
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The asset side of a bank’s simplified balance sheet includes
a. required reserves, U.S. government securities, and loans.
b. U.S. government securities, deposits, and net worth.
c. deposits and net worth.
d. loans, deposits, and net worth.
The correct answer is: d. loans, deposits, and net worth. The asset side of a bank's simplified balance sheet includes loans, deposits, and net worth.
Loans represent the funds that the bank has lent out to borrowers. These loans generate interest income for the bank.
Deposits refer to the funds that customers have deposited in the bank. These deposits can be in the form of checking accounts, savings accounts, or other types of accounts. Net worth, also known as equity or capital, represents the bank's ownership interest in its assets. It includes the bank's initial capital investment and retained earnings.
U.S. government securities are typically considered as investments and would be included on the asset side of a bank's balance sheet, but they are not part of the answer choice. Similarly, required reserves are a liability of the bank and are not part of the asset side.
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shown?
Show transcribed data
Sipan Retail Company was recently created with a beginning cash balance of $12,000. The owner expects the following for the first month of operations: Cash sales to customers...... $8,000 Sales on account to customers..... $30,000 $12,000 Cash collected from account customers. Cost of merchandise purchased..... $35,000 $24,500 Cash paid for merchandise purchased.. Cost of merchandise sold $26,600 Cash paid for display cases. $9,600 Selling and administrative expenses $4,000 The display cases above were purchased at the beginning of the month and are being depreciated at a rate of $200 per month. This amount is included in the selling and administrative expenses figure above. All other selling and administrative expenses are paid as incurred. Sipan wants to maintain a cash balance of $10,000. Any amount below this can be borrowed from a local bank as needed in increments of $1,000. All borrowings are made at month end.
Net cash flow (inflows - outflows): $20,000 - $99,700 = -$79,700
Since the net cash flow is negative, indicating a cash deficit, Sipan Retail Company needs to borrow funds to maintain its desired cash balance of $10,000.
To analyze the cash position of Sipan Retail Company and determine if any borrowing is needed, we can summarize the cash inflows and outflows for the first month of operations.
Cash inflows:
Cash sales to customers: $8,000
Cash collected from account customers: $12,000 (part of the sales on account)
Total cash inflows: $8,000 + $12,000 = $20,000
Cash outflows:
Cost of merchandise purchased: $35,000
Cash paid for merchandise purchased: $24,500
Cost of merchandise sold: $26,600
Cash paid for display cases: $9,600
Selling and administrative expenses: $4,000 (includes $200 depreciation for display cases)
Total cash outflows: $35,000 + $24,500 + $26,600 + $9,600 + $4,000 = $99,700
Net cash flow (inflows - outflows): $20,000 - $99,700 = -$79,700
Since the net cash flow is negative, indicating a cash deficit, Sipan Retail Company needs to borrow funds to maintain its desired cash balance of $10,000.
To reach the target cash balance of $10,000, the company would need to borrow $10,000 - (-$79,700) = $89,700 from the local bank at the end of the month.
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1) The relevant monitoring mechanism for a company’s
account receivable is _______.
Select one:
A. the average payable period
B. called the credit instrument
C. the aging schedule
D. the auditing of
The aging schedule is the relevant monitoring mechanism for a company's accounts receivable. It is a report that categorizes the outstanding receivables based on the length of time they have been outstanding.
The aging schedule provides valuable information about the aging of receivables, allowing the company to assess the effectiveness of its credit policies and collection efforts.
By analyzing the aging schedule, the company can identify any potential issues with late payments or delinquent accounts and take appropriate actions, such as following up with customers or adjusting credit terms. This monitoring mechanism helps the company maintain control over its receivables, improve cash flow, and mitigate the risk of bad debts.
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On January 1, 2022. Sheridan Corporation had the following stockholders' equity accounts. During the year, the following transactions occurred.
Common stock ( $ 22 per value, 60500 shares issued and outstanding): $1331,000
Paid in capital in excess of par –common stock: 197,000
Retained earnings: 556,000
Feb. 1 declared a $1 cash dividend per share to stoclcholders of record on February 15. payable March 1.
Mar, 1 Paid the dividend declared in February. Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $39.
July 1 Declared a 10s stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $14 per share:
31 Issued the shares for the stock dividend.
Dec 1 Deceased a $0.40 per share dividend to stockholders of record on December 15 , payable January 5,2023.
31 Determined that net income for the year was $354,000 :
Journalize the transactions and the closing entries for nat income and dividends.
Here are the journal entries for the transactions and the closing entries for net income and dividends for Sheridan Corporation:
The journal entriesTransactions
February 1:
Debit: Dividends Payable $60,500
Credit: Cash $60,500 (To record declaration of cash dividend)
March 1:
Debit: Cash $60,500
Credit: Dividends Payable $60,500 (To record payment of cash dividend)
April 1:
Memorandum: Stock split increases number of shares to 121,000 and reduces par value to $11 per share.
July 1:
Debit: Common Stock Dividends Distributable $133,100
Credit: Paid-in Capital in Excess of Par-Common Stock $36,300
Debit: Retained Earnings $96,800 (To record declaration of stock dividend)
July 31:
Debit: Common Stock $121,000
Credit: Common Stock Dividends Distributable $133,100 (To record issuance of shares for stock dividend)
December 1:
Debit: Dividends Payable $53,240
Credit: Cash $53,240 (To record declaration of cash dividend)
Closing Entries
Net Income:
Debit: Retained Earnings $354,000
Credit: Income Summary $354,000 (To close net income to retained earnings)
Dividends:
Debit: Retained Earnings $109,740
Credit: Dividends Payable $109,740 (To close dividends to retained earnings)
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Fill out the above calculations using the following information
Record the following adjusting entries in general journal form as of December 31, 2021:
Supplies on hand at the end of the year: $5,016.
Equipment shown on the 12/1 TB was purchased on 1/1/17, has a 7-year life, no salvage value and company uses double-declining balance method for its depreciation.
Don’t forget to depreciate the new equipment, which is also depreciated using the DDB method!
Included in the truck balance is a fully depreciated truck for $6,500 and a new truck valued at $50,000 that was purchased on 1/1/17. The new truck has an 8-year life, no salvage value and the company uses the sum-of-the-years digits for its depreciation method on this asset.
The building is depreciated under the straight-line method over 39 years and was placed in service on July 1, 2018.
The machinery was purchased on December 1, 2020, has a 5-year useful life, salvage value of $4,000, and is being depreciated under the straight-line method.
The patent was purchased on 1/1/2013 for $100,000 and its useful life is 20 years.
Included in the Prepaid Insurance Account balance at 12/1 is a $75,000, 12-month insurance policy that was purchased on August 1, 2021.
Also included in the 12/1 trial balance (and the 12/31 TB) was an insurance policy that expired on 12/31/21.
Declared dividends of $350,000 on December 31.
The fair market value of the short-term investments is $12,500.
The total fair value of the Available for Sale Securities is $489,000.
2% of Accounts Receivable is estimated to be uncollectible. Company uses the allowance method for estimating its uncollectible accounts.
Accrued salaries of $145,000 and accrued payroll taxes of 6.2%.
Had issued $2,500,000 of 4%, 10-year bond, dated 1/1/18 for $2,305,133 when the market rate was 5%. Interest is paid on June 30 and January 1 using the effective interest rate method. The June payment is included in the Dec. 1 TB. Extra credit of 5 points if a complete amortization table (all 10 years) is included. Partial extra credit may be awarded.
One month has passed since the issuance of restricted stock.
Interest on 30 days of short-term note payable, dated 12/2/21 should be accrued. (Assume 360 days in a year for calculation)
Income tax rate is 21%
Additional Information:
Panther Builders, Inc. was founded in Grand Rapids, Michigan in 2013 by Davenport University entrepreneurs. It is a private company with more than 40 employees. Its operations include providing household renovation services to homeowners and small businesses.
During 2021, the following additional transactions occurred: (Hint: these are already included in 12/1/21 TB, but may be needed for the Statement of Cash Flows and calculation of Weighted Average shares of Common Stock )
Issued 35,000 shares of common stock, $1 par, for $700,000 on June 30, 2021.
Some equipment was sold (original cost $10,000, book value $3,000) for $6,500 (do not consider in your #2 AJE). Confirm with the 12/1 Trial Balance!
All amortization and depreciation is recorded once a year on December 31.
Market price per share of stock at 12/31/2021 was $18.75.
The adjusting entries to be recorded in the general journal as of December 31, 2021, include depreciation of equipment, trucks, building, and machinery, allowance for uncollectible accounts, accrued salaries and payroll taxes, amortization of the patent, recognition of expired insurance policy, declaration of dividends, accrual of interest on short-term note payable, and calculation of income tax.
What adjusting entries need to be recorded on December 31, 2021?The adjusting entries for December 31, 2021, involve various aspects of Panther Builders, Inc.'s financial activities.
Firstly, depreciation needs to be recorded for equipment, trucks, building, and machinery using different methods such as double-declining balance, sum-of-the-years digits, and straight-line.
Secondly, an allowance for uncollectible accounts needs to be estimated based on 2% of accounts receivable.
Thirdly, accrued salaries and payroll taxes should be recognized. The amortization of the patent purchased in 2013 is also required. Additionally, the recognition of an expired insurance policy, declaration of dividends, and accrual of interest on a short-term note payable are necessary.
Lastly, income tax calculations at a rate of 21% need to be considered.
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Sunland Enterprises purchased equipment on March 15, 2021, for $68,730. The company also paid the following amounts: $480 for freight charges; $184 for insurance while the equipment was in transit; $1,835 for a one-year insurance policy; $2,067 to train employees to use the new equipment; and $2,526 for testing and installation. The company began to use the equipment on April 1. Sunland has estimated the equipment will have a 10-year useful life with no residual value. It expects to consume the equipment's future economic benefits evenly over the useful life. The company has a December 31 year end. (a) Your answer is incorrect. Calculate the cost of the equipment.
The cost of the equipment can be calculated by adding all the relevant expenses incurred for the purchase and preparation of the equipment. In this case, the cost of the equipment includes the purchase price, freight charges, insurance during transit, insurance for one year, employee training costs, and testing/installation expenses.
To calculate the cost of the equipment:
Cost of equipment = Purchase price + Freight charges + Insurance during transit + One-year insurance policy + Training costs + Testing/installation expenses
In this case, the cost of the equipment is:
Cost of equipment = $68,730 + $480 + $184 + $1,835 + $2,067 + $2,526
The total cost of the equipment can be determined by adding up all the amounts.
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Q40 If the unemployment is in the form of: Inflation rate = parameters of a and b. rate in 2019 was 5% and was 6% in 2020. The Philips curve function a*(unemployment rate) + b. Find out the value of the
The parameters a and b in the Philips curve equation can be determined by using the given information of the inflation rates in 2019 and 2020.
The Philips curve relates the inflation rate to the unemployment rate, and it can be expressed as: Inflation rate = a * Unemployment rate + b. We are given the inflation rates of 5% in 2019 and 6% in 2020. By substituting these values into the equation, we can set up a system of equations to solve for the parameters a and b.
Using the given data, we have:
2019: 5% = a * Unemployment rate in 2019 + b
2020: 6% = a * Unemployment rate in 2020 + b
By subtracting the two equations, we can eliminate the constant term b: 6% - 5% = a * (Unemployment rate in 2020 - Unemployment rate in 2019)
Simplifying further:
1% = a * (Unemployment rate in 2020 - Unemployment rate in 2019)
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When an economy is operating at the steady state, we know that a. steady state saving equals consumption. b. steady state saving is less than total consumption. c. steady state saving is equal to depreciation per worker d. steady state saving exceeds depreciation each year by a constant amount.
e. none of the above
c) Steady state saving equals depreciation per worker. This statement is true.
The steady state is defined as the situation in which capital per worker, output per worker, consumption per worker, and investment per worker do not change over time. It refers to the economy's long-term balance when aggregate output, aggregate income, and other economic variables do not vary from year to year.
The key concepts of a steady state include:
Steady-state saving equals depreciation per worker.
Steady-state investment equals steady-state saving, and both are constant.
A steady-state economy does not grow or shrink over time because investment equals depreciation.
In conclusion, steady state saving equals depreciation per worker when an economy is operating at the steady state.
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Data concerning Marchman Corporation's single product appear below: The company is currently selling 4,000 units per month. Fixed expenses are $166,000 per month. Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Marchman Corporation. Refer to the original data when answering this question. The marketing manager would like to cut the selling price by $7 and increase the advertising budget by $11,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 800 units. What should be the overall effect on the company's monthly net operating income of this change? increase of $21,800 decrease of $21,800 increase of $79,400 decrease of $6,200
To determine the overall effect on the company's monthly net operating income, we need to calculate the impact of the proposed changes in selling price, advertising budget, and increased sales volume.
Currently, Marchman Corporation sells 4,000 units per month at a certain selling price. With the proposed changes, the selling price will be reduced by $7 and the advertising budget will increase by $11,000 per month.
Additionally, the marketing manager predicts an increase in monthly sales by 800 units.
To calculate the overall effect on net operating income, we can follow these steps:
Calculate the change in revenue:
Change in revenue = (Increase in sales volume) × (Current selling price)
Change in revenue = 800 units × (Current selling price)
Calculate the change in variable expenses:
Change in variable expenses = (Increase in sales volume) × (Variable cost per unit)
Calculate the change in fixed expenses:
Change in fixed expenses = (Proposed advertising budget) - (Current advertising budget)
Calculate the overall effect on net operating income:
Overall effect on net operating income = Change in revenue - Change in variable expenses - Change in fixed expenses
Given the information provided, we do not have the current selling price or the variable cost per unit.
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The Hilton Skating Club used straight-line depreciation for a used Zamboni ice-resurfacing machine that cost $48,500, under the assumption it would have a four-year life and a $6,000 trade-in value. After two years, the club determined that the Zamboni still had three more years of remaining useful life, after which it would have an estimated $4,150 trade-in value. Required: 1. Calculate the Zamboni's book value at the end of its second year. Zamboni's book value 2. Calculate the amount of depreciation to be charged during each of the remaining years in the Zamboni's revised useful life. Subm Amount of depreciation
To calculate the Zamboni's book value at the end of its second year, we need to subtract the accumulated depreciation from the initial cost of the machine. The annual depreciation expense is determined by dividing the initial cost minus the trade-in value by the useful life in years.
Initial cost: $48,500
Trade-in value: $6,000
Useful life: 4 years
Depreciation expense per year: ($48,500 - $6,000) / 4 = $10,875
Accumulated depreciation at the end of the second year: $10,875 * 2 = $21,750
Book value at the end of the second year: $48,500 - $21,750 = $26,750
Therefore, the Zamboni's book value at the end of its second year is $26,750.
To calculate the amount of depreciation to be charged during each of the remaining years in the Zamboni's revised useful life, we need to subtract the estimated trade-in value at the end of each year from the book value at the beginning of that year, and divide it by the remaining useful life.
Remaining useful life: 3 years
Trade-in value at the end of the third year: $4,150
Depreciation expense per year for the remaining years:
Year 3: ($26,750 - $4,150) / 3 = $7,200
Year 4: ($26,750 - $4,150) / 3 = $7,200
Year 5: ($26,750 - $4,150) / 3 = $7,200
Therefore, the amount of depreciation to be charged during each of the remaining years in the Zamboni's revised useful life is $7,200.
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Determine the missing amounts. Unit Selling Price 1. 2. 3. $ $750 $450 (e) $ $ Unit Variable: Costs $375 (c) (1) $ Unit Contribution Margin $153 $760 (a) Contril it Selling Price $750 $450 (e) S $ Unit Variable Costs $375 (c) (1) $ Unit Contribution Margin $153 $760 (a) Contribution Margin Ratio % (b) % (d) 40 %
To determine the missing amounts, we'll use the formulas and information given.
Unit Selling Price: $750
Unit Selling Price: $450
Unit Variable Costs: (c) (1)
We need to calculate the missing values: (a), (b), (c), and (e).
(a) Unit Contribution Margin:
Unit Contribution Margin = Unit Selling Price - Unit Variable Costs
For 1: (a) = $750 - (c)
For 2: (a) = $450 - (1)
(b) Contribution Margin Ratio:
Contribution Margin Ratio = (Unit Contribution Margin / Unit Selling Price) * 100
For 1: (b) = ((a) / $750) * 100
For 3: (b) = ((a) / $450) * 100
(c) Unit Variable Costs:
Given as missing: (c)
(e) Unit Selling Price:
Given as missing: $450 (e)
Let's calculate the missing values:
For 1:
(a) = $750 - (c)
(b) = ((a) / $750) * 100
For 2:
(a) = $450 - (1)
(b) = ((a) / $450) * 100
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Project L requires an initial outlay at t = 0 of $52,000, its expected cash inflows are $10,000 per year for 12 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.
__________ years
The project's payback is 5.20 years.
Given, Initial outlay (Po) = $52,000Cash inflows (C) = $10,000Period (n) = 12 years WACC = 10%To calculate the project's payback, we need to find the number of years it takes for the project's cash inflows to equal its initial outlay. The formula for payback period is: Payback period = Po/C Where, Po is the initial outlay, and C is the cash inflows. Substituting the values in the above formula, Payback period = $52,000/$10,000Payback period = 5.20 years Therefore, the project's payback is 5.20 years (rounded to two decimal places).
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1. What is the meaning and purpose of Law?
2. What is statutory and common law?
3. What is the Tort law?
4. What is Intellectual law?
5. What is a contract?
Based on the case you read about, should th
1. The meaning of law can vary depending on context, but generally, law refers to a system of rules and regulations that govern society. Its purpose is to maintain order, provide justice, protect individual rights, and guide behavior within a community or country.
2. Statutory law is created by legislative bodies, such as parliaments or congresses. It consists of written laws enacted through statutes or codes. Common law, on the other hand, refers to legal principles and rules developed by courts through judicial decisions. Common law is based on precedent and relies on case law and legal reasoning.
3. Tort law is a branch of civil law that deals with civil wrongs or injuries caused to individuals or their property. It provides a legal framework for individuals to seek compensation for harm caused by the wrongful actions or negligence of others. Tort law covers various types of offenses, including personal injury, defamation, negligence, and product liability.
4. Intellectual property law (IP law) is a branch of law that protects creations of the human intellect, such as inventions, trademarks, copyrights, and trade secrets. It grants exclusive rights to creators or owners of intellectual property, allowing them to control and benefit from their creations. IP law aims to encourage innovation and creativity by providing legal protection and incentives.
5. A contract is a legally binding agreement between two or more parties. It establishes the rights and obligations of each party involved and provides a framework for their interactions. Contracts can be written or oral, but written contracts are generally preferred as they provide clear evidence of the terms and conditions agreed upon. Contracts can cover various types of agreements, such as business transactions, employment relationships, or the sale and purchase of goods or services.
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How is a transition matrix useful to an HR professional?
A. It helps HR professionals who are looking to move out of HR jobs into other operational positions in their company.
B. It helps HR professionals plan for how time and money might be spent on HR-related activities.
C. It helps HR professionals to understand how the company is transitioning from one strategy to another.
The correct option is (B) - It helps HR professionals plan for how time and money might be spent on HR-related activities.
A transition matrix is a tool that is used to determine the probability of an individual moving from one state to another. HR professionals can utilize transition matrices to plan for how time and money might be spent on HR-related activities is the answer to the question.
The transition matrix, as previously stated, is a probability tool that assists HR professionals in determining the likelihood of an individual moving from one state to another. The transition matrix may be utilized to evaluate current employees and their probability of moving into different positions.
HR professionals may use transition matrices to determine how time and money will be spent on HR-related activities, based on these estimates.Thus, the correct option is (B). It helps HR professionals plan for how time and money might be spent on HR-related activities.
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The most widespread use of cost information is in budgeting.
Yes/no - Explain
Yes. The most widespread use of cost information is in budgeting. Budgeting is a process that involves planning and allocating resources for specific time periods to achieve organizational goals.
Cost information plays a crucial role in budgeting as it provides insights into the expenses associated with various activities, departments, or projects within an organization. By understanding and analyzing costs, businesses can make informed decisions about resource allocation, revenue projections, and performance targets.
Cost information helps in developing accurate and realistic budgets by estimating the expenses involved in different areas of the organization. It enables businesses to set targets and allocate resources effectively, ensuring that available resources are utilized optimally to achieve desired outcomes. Cost information also aids in identifying cost-saving opportunities, cost drivers, and areas where efficiencies can be improved.
Moreover, cost information is essential for monitoring and controlling budgeted costs. By comparing actual costs against budgeted costs, organizations can assess their financial performance, identify variances, and take corrective actions if necessary. This process helps in maintaining financial discipline and ensuring that resources are used efficiently.
Therefore, cost information is extensively used in the budgeting process as it provides the foundation for making informed decisions, setting targets, and managing financial resources effectively.
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Alternate outputs from one day's labor input:
India: 1600 bushels of wheat or 400 yards of textiles. Mexico: 250 bushels of wheat or 1250 yards of textiles.
a. Mexico should specialize in producing wheat because it has absolute advantage in producing wheat
b. India should produce both wheat and textiles because it has comparative advantage in producing both products.
c. India should specialize in producing textiles because it has absolute advantage in producing textiles
d. Mexico should specialize in producing textiles because it has comparative advantage in producing textiles
India should specialize in producing textiles while Mexico should specialize in producing wheat, as this would lead to an increase in both countries' total output. Therefore, the correct option is B: India should produce both wheat and textiles because it has comparative advantage in producing both products.
According to the information provided, India can produce 1600 bushels of wheat or 400 yards of textiles, while Mexico can produce 250 bushels of wheat or 1250 yards of textiles.
The concept of comparative advantage states that a country should specialize in producing goods that it can produce at a lower opportunity cost than other countries.
The opportunity cost is the value of the next best alternative given up in order to produce a particular good or service.
Based on this, India has a comparative advantage in producing textiles because it can produce 4 yards of textiles for every 1 bushel of wheat given up (1600 bushels of wheat/400 yards of textiles).
On the other hand, Mexico has a comparative advantage in producing wheat because it can produce 5 bushels of wheat for every yard of textiles given up (250 bushels of wheat/1250 yards of textiles).
Therefore, India should specialize in producing textiles while Mexico should specialize in producing wheat, as this would lead to an increase in both countries' total output.
Therefore, the correct answer is option B: India should produce both wheat and textiles because it has comparative advantage in producing both products.
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