Answer:
Limited liability company
Explanation:
In simple words, A limited liability corporation (LLC) is a type of private company structure. It's among the most frequent legal structures for forming a company. In a comprehensive partnerships all members are accountable for the firm and have unlimited accountability for its obligations.
Thus the limited liability structure is most suitable for the two.
A project with an initial investment of $461,300 will generate equal annual cash flows over its 10-year life. The project has a required return of 8.1 percent. What is the minimum annual cash flow required to accept the project
Answer:
The minimum annual cash flow required to accept the project is:
= $63,883.17
Explanation:
a) Data and Calculations:
Initial investment cost of the project = $461,300
Project's estimated life = 10 years
Project's required return rate = 8.1%
The minimum annual cash flow required to accept the project is derived from an online financial calculator as follows:
N (# of periods) 10
I/Y (Interest per year) 8.1
PV (Present Value) 461300
FV (Future Value) 0
Results:
PMT = $63,883.17
Sum of all periodic payments = $638,831.69
Total Interest = $177,531.69
Explain ethics in dealing with employers and discuss the various methods used by salespeople
that can be regarded as being unethical towards the employer specifically. Give a practical
example of each in relation to a sales situation.
that they always want to be correct and they always like their stores to be clean and neat, and they can sometimes follow you too
Suppose that a firm currently produces 100 units using 10 units of K and 14 units of labor per day. The wage rate is $100 and the rental rate is $150 per day. The cost to produce this output is
Answer: $2,900
Explanation:
The cost of this amount of output is:
= (Amount of K used * Rental rate of capital) + (Amount of labor used * wage rate)
= (10 * 150) + (14 * 100)
= 1,500 + 1,400
= $2,900
For a manufacturing company, selling price for an item is $480.00 per Unit, Variable cost is $248.00 per Unit, rent is $7,480.00 per month and insurance is $3000 per month. What is the contribution margin
Answer: $232
Explanation:
The Contribution margin of a business refers to the amount left from it's sales after the variable costs have been accounted for.
It can be calculated by the formula:
= Selling price per unit - Variable cost per unit
= 480 - 248
= $232
XYZ Corporation manufactures air conditioners and has the capacity to manufacture and sell 80,000 units each year. It is currently only manufacturing and selling 60,000 units. The following per unit numbers relate to annual operations at 60,000 units: Per Unit Selling price $ 125 Manufacturing costs: Variable $ 25 Fixed $ 40 Selling and administrative costs: Variable $ 10 Fixed $ 15 A customer would like to purchase 3,000 air conditioners from XYZ but only if they can get them for $75 each. Variable selling and administrative costs on this special order will drop down to $2 per unit. This special order will not affect the 60,000 regular sales and it will not affect the total fixed costs. The annual financial advantage (disadvantage) for the company as a result of accepting this special order from this customer should be:
Answer:
The annual financial advantage is $147000
Explanation:
The balance sheets of Davidson Corporation reported net fixed assets of $340,000 at the end of 2016. The fixed-asset turnover ratio for 2016 was 3.0, and sales for the year totaled $1,440,000. Net fixed assets at the end of 2015 were:_________
a) $760,000.
b) $480,000.
c) $620,000.
d) None of these answer choices are correct.
Answer:
$620,000
Explanation:
Calculation to determine what Net fixed assets at the end of 2015 were:
$1,440,000 / Average fixed assets
$1,440,000 / $480,000=3.0
Net fixed assets =[(340,000 + x) / 2] = $480,000
Solve for x
Net fixed assets= $620,000
Therefore Net fixed assets at the end of 2015 were:$620,000
Macroeconomics, as opposed to microeconomics, includes the study of what determines the level of:___________
A) employment in a specific industry.
B) output of a specific firm.
C) output of a specific industry.
D) employment in the economy.
Typical cash inflows of a capital investment project include all of the following EXCEPT: A. projected incremental revenues from the project. B. cost reductions in operating costs. C. the salvage value of the investment at the end of its useful life. D. tax savings generated by depreciation expense. E. the original cost paid for the capital investment.
Answer:
E
Explanation:
Cash inflows are cash increases in a project
they include :
projected incremental revenues from the project.
cost reductions in operating costs.
the salvage value of the investment at the end of its useful life
tax savings generated by depreciation expense.
Cash outflows reduces the cash available in a project. They are usually subtracted
they include
the original cost paid for the capital investment.
working capital investment
A project is profitable if cash inflow exceeds cash outflow
Typical cash inflows of a capital investment project do not include the original cost paid for the capital investment.
A capital investment project is regarded as a project that aims at increasing the assets of the business. The inflows in these projects are derived when cash outflows are subtracted from revenues and cash flows of the project.
Therefore, the original cost that would be paid for the capital investment becomes part of cash outflow from the business, which decreases the total availability of cash.
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On December 31, the company estimates future sales refunds to be $900. As of that date, the company has an unadjusted debit balance in Accounts Receivable of $25,000 and an unadjusted credit balance of $300 in Sales Refunds Payable.
Requried:
Write down the necessary adjusting entry.
Answer:
Date Account titles and Explanation Debit Credit
Dec 31 Sales return and allowance $600
Sales refund payable $600
($900 - $300)
(To record the expected refund of sales)
Pencils sell for 10 cents and pens sell for 50 cents. Suppose Jae, whose preferences satisfy all of the basic assumptions, is currently spending all his income on both goods. The marginal rate of substitution for pens to pencils is 5. In order to achieve optimum, what should he do
Answer:
Jae should do nothing and continue purchasing the same amount of pens and pencils.
Explanation:
The current rate of substitution that maximizes Jae's utility is Px / Py = 0.50 / 0.10 = 5. That means that Jae will purchase 5 pencils for every pen that he buys, and that is exactly what he is doing right now.
resented below is information related to Sandhill Enterprises.
Jan. 31 Feb. 28 Mar. 31 Apr. 30
Inventory at cost $15,750 $15,855 $17,850 $14,700
Inventory at LCNRV 15,225 13,230 16,380 13,965
Purchases for the month 17,850 25,200 27,825
Sales for the month 30,450 36,750 42,000
From the information, prepare as far as the data permit monthly income statements in columnar form for february march and april.
Answer:
Sandhill Enterprises
Sandhill Enterprises
Income Statements
For the months ended Feb. 28, March 31, and April 30, 2020:
Feb. 28 March 31 April 30
Sales for the month $30,450 $36,750 $42,000
Cost of goods sold 19,845 22,050 30,240
Gross profit $10,605 $14,700 $11,760
Explanation:
a) Data and Calculations:
Jan. 31 Feb. 28 Mar. 31 Apr. 30
Inventory at cost $15,750 $15,855 $17,850 $14,700
Inventory at LCNRV 15,225 13,230 16,380 13,965
Purchases for the month 17,850 25,200 27,825
Sales for the month 30,450 36,750 42,000
Determining the ending inventory based on LCNRV:
Jan. 31 Feb. 28 Mar. 31 Apr. 30
Inventory at cost $15,750 $15,855 $17,850 $14,700
Inventory at LCNRV 15,225 13,230 16,380 13,965
Ending inventory 15,225 13,230 16,380 13,965
Beginning inventory 15,225 13,230 16,380
Determining the Cost of Goods Sold:
Beginning inventory 15,225 13,230 16,380
Purchases for the month 17,850 25,200 27,825
Ending inventory 13,230 16,380 13,965
Cost of goods sold 19,845 22,050 30,240
Rick and Joe get together and start a mortgage brokerage business. They each contribute $25,000 of capital to the business. After the first year of operation, the total owners' equity is listed as $60,000. Most likely, the additional $10,000 of owners' equity is
Answer: a common stock.
Explanation:
Following the information given in the question, the additional $10,000 of owners' equity will be regarded as a common stock.
Commission stock is regarded as a corporate equity ownership and each share of stock simply means the holder has a small portion of ownership of that particular company. Every addition in owner's equity is common stock.
Sassy, Inc. needs $115 million to build a new distribution center. If it issues common stock to raise the funds, the issuance costs will be 8 percent of the total amount issued. If Sassy can issue stock at $40 per share, how many shares of common stock must be issued so that it has $115 million after flotation costs to use to fund the construction of the distribution center
Answer: 3,125,000 shares.
Explanation:
The number of shares of common stock that must be issued will be calculated as follows:
Let the amount to be raised be represented by x. Therefore,
x - (8% × x) = $115 million
x - (0.08 × x) = $115 million
x - 0.08x = $115 million
0.92x = $115 million
x = $115 million/0.92
x = $125 million
Then the number of shares that'll be issued will be:
= Amount raised / Issue price of stock.
= $125 million / 40
= 3,125,000 shares.
Bella Bags is a British company that sells luxury leather purses manufactured in London. Currently, its products are carried at high-end department stores all across Europe. The company prides itself on its exceptional customer service. However, the company has been criticized in the past for carrying only two designs of bags. There is currently growing market demand for high-end luxury accessories. Bella Bags faces fierce competition from established luxury brands. Which of the following best characterizes an actionable strategy for Bella Bags that works on reducing the company's weaknesses to avoid threats?
A) Reduce the threat of high competition by expanding the product line and offering more variety
B) Promote the company's exceptional customer service to leverage the increasing demand for luxury goods
C) Reduce the threat of high competition by promoting the company's narrow product offering
D) Reduce the threat of high competition by leveraging the increasing demand for luxury goods
Answer:
A
Explanation:
Ayayai Corp. reported net income of $87300 for the year. During the year, accounts receivable increased by $5820, accounts payable decreased by $3880 and depreciation expense of $9700 was recorded. Net cash provided by operating activities for the year is
Answer: $87,300
Explanation:
Net cash provided by operating activities are those that are generated from the operations of the company.
The calculation is:
= Net income + Depreciation - Accounts receivable increase - accounts receivable decrease
= 87,300 + 9,700 - 5,820 - 3,880
= $87,300
Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company’s stock currently is valued at $45.00 per share. The company needs to raise new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $36.00 per share. Larry worries about the value of his investment.
a. Larry's current investment in the company is __________If the company issues new shares and Larry makes no additional purchase, Larry's investment will be worth _____________
b. This scenario is an example of __________ . Larry could be protected if the firm's corporate charter includes a provision.
c. If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become ___________
Answer and Explanation:
a. The current investment is
= 2,000 × $45
= $90,000
The investment should be worth of
= (20000 × 45)+ (5000 × 36)
= ($900,000 + $180,000)
= $1,080,000
Now price per share is
= $1.080.000 ÷ 25,000
= 43.2
so, new value of larry shares is
= 43.2 × 2000
= $86,400
b. Dilution and preemptive right
c The investment value should be
= 90,000 + 500 × 36
= 90,000 + 18,000
= 108,000
The Central Division of National Inc. has operating income of $16,000 on sales revenue of $155,000. Divisional operating assets are $84,600, and management of National has determined that a minimum return of 12% should be expected from all investments.
Required:
a. Using the DuPont model, calculate The Central Division’s margin, turnover, and ROI.
b. Calculate The Central Division's residual income.
Answer:
.
Explanation:
John believes his sales team's performance is due to outside forces, like economic and market factors. Which of the following best describes is John's locus of control?
a. External
b. Market driven
c. Internal
d. Based on labor trends.
Answer:
a. External
Explanation:
There are only two types of locus of control and these are internal and external. In this scenario, John's locus of control would be external. This is because John is connecting various external forces that he cannot control, to the performance of the sales team. This indicates an external locus of control. If John where to instead attribute something such as hard work and training to his sales team's perfomance, then that would be considered an internal locus of control.
Darin Company uses a perpetual inventory system. On October 1, Darin Company sold inventory in the amount of $6,500 to Dee Company, terms 2/10, n/30. The items cost Darin $4,200. On October 4, Dee returns some of the inventory. This inventory had a selling price of $500 and a cost of $200. On October 8, Dee Company paid Darin Company the amount due on that date. Use the information above to answer the following question. What journal entry will be prepared by Darin Company on October 8 to record the receipt of payment from Dee
Answer:
Debit : Cash $5,870
Credit : Accounts Receivable $5,870
Explanation:
The journal entry to be prepared by Darin Company on October 8 to record the receipt of payment from Dee consist of a Debit in Cash and Credit Accounts Receivable at the amount outstanding after deducting cash discount and returns.
Amount Outstanding
Total Accounts Receivable $6,500
Less Cash discount at 2 % ($130)
Less Returns ($500)
Outstanding amount $5,870
Identify the following costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher: a. Staples used to bind magazines b. Wages of printing machine employees c. Maintenance on printing machines
Answer:
Staples used to bind magazines
Direct materials
Wages of printing machine employees
Direct Labor
Maintenance on printing machines
Factory Overhead
Paper used in the magazine
Direct Materials
Explanation:
The given answers above are correctly grouped based on Direct Materials, Factory Overhead, and Direct Labor.
Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000. Paid $89,000 cash for a new truck. Sold land costing $154,000 for $198,000 cash, yielding a gain of $44,000. Long-term investments in stock were sold for $60,800 cash, yielding a gain of $4,150. Use the above information to determine cash flows from investing activities.
Answer:
Net cash provided by investing activities $221,100
Explanation:
The computation of the cash flows from investing activities is shown below:
Sale of equipment (65300 - 14000) 51300
Less: Purchase of new truck -89000
Add: Sale of land 198000
Add: Sale of Long-term investments 60800
Net cash provided by investing activities $221,100
Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $ 3,800 Salaries expense 1,400 Accounts payable 1,800 Retained earnings 4,700 Utilities expense 1,200 Supplies 12,200 Service revenue 7,700 Common stock 4,400 Required: Use only the appropriate accounts to prepare an income statement.
Answer:
Cowboy Law Firm
Income Statement for the year ended 31 December
Service revenue $7,700
Less Expenses :
Salaries expense $1,400
Utilities expense $1,200 ($2,600)
Net Income $5,100
Explanation:
It is important to remember that the income statement accounts for Income and expense items only.
Suppose Baa-rated bonds currently yield 6.1%, while Aa-rated bonds yield 4.1%. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1.0%. What would happen to the confidence index? (Round your answers to 4 decimal places.)
Answer:
Confidence index increases from 0.6721 to 0.7183
Explanation:
The computation of the confidence index is shown below:
Initial Confidence Index is
= Aa-rated bonds yield ÷ Baa-rated bonds yield
= 4.1% ÷ 6.1%
= 0.6721
Since the yields on both bonds increase by 1.0%
So, the confidence index after increase in yield is
= (4.1% + 1%) ÷ (6.1% + 1%)
= 0.7183
So, Confidence index increases from 0.6721 to 0.7183
Networked organizations are so closely linked online that each can find out what the others are doing instantaneously, as an event takes place. These organizations operate
Answer: b. in real time
Explanation:
When something is said to operate in real time, it means that is is happening instantaneously. Networked organizations that are so closely linked that their actions are seen instantaneously are therefore operating in real time.
These organizations can be in multiple countries but doing work on a similar platform. For instance, people around the world could be working on a single Go-0gle Sheets file and seeing the changes they all make in real time.
Networked organizations are so closely linked online that each can find out what the others are doing instantaneously, as an event takes place. These organizations operate in real-time. Hence option B is correct.
The key characteristic of networked organizations is their ability to access and exchange information rapidly, allowing them to respond quickly to changes and make informed decisions.
In networked organizations, individuals, teams, departments, or even entire organizations are connected through digital networks and communication platforms.
This enables them to share data, knowledge, and resources in real-time, fostering collaboration, coordination, and synergy among different entities.
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Networked organizations are so closely linked online that each can find out what the others are doing instantaneously, as an event takes place. These organizations operate
a. as inverted organizations.
b. in real time
c. as digital natives
As a researcher, what would you do if you set to reject the null and found the null to be true?
In the event that the null hypothesis was true, I would report my results honestly and transparently. If my results did not support my expectations, my goal as a researcher would be to learn as much as possible from them.
The first thing I would do is to make my data and my statistical analysis error-free. If my results were influenced by outliers or other unusual patterns in the data, I would check for them. I would recheck the statistical methods I used to ensure that they were appropriate and correct for the type of data I collected.
Once I was confident that my data and analysis were correct, I would consider whether there were any other explanations for the null hypothesis.
Therefore, In the event that the null hypothesis was true, I would report my results honestly and transparently.
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n January 1, 2018, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The only interest-bearing debt the company had outstanding during 2018 was long-term bonds with a book value of $11,600,000 and an effective interest rate of 11%. Construction expenditures incurred during 2018 were as follows: January 1 $ 660,000 March 1 696,000 July 31 576,000 September 30 760,000 December 31 460,000 Required: Calculate the amount of interest capitalized for 2018.
Answer:
$183,700
Explanation:
Calculation to determine the amount of interest capitalized for 2018.
First step is to calculate the Accumlated expenditure
Date Expenditure * Weight = Average
January 1 660000 * 12/12 =660,000
March 1 696000 * 10/12 = 580,000
July 31 576000 * 5/12 = 240,000
September 30 760000 * 3/12 =190,000
December 31 460000 * 0/12 = 0
Accumulated expenditure=660,000+580,000+240,000+190,000
Accumulated expenditure=$1,670,000
Now let determine the amount of interest capitalized for 2018
Interest capitalized for 2018=$1,670,000 * 11%
Interest capitalized for 2018=$183,700
Therefore the amount of interest capitalized for 2018 is $183,700
Gotham City acquires $25,000 of inventory on November 1, 20X7, having held no inventory previously. On December 31, 20X7, the end of Gotham City's fiscal year, a physical count shows $8,000 still in stock. During 20X8, $6,500 of this inventory is used, resulting in a $1,500 remaining balance of supplies on December 31, 20X8.
Based on the preceding information, what would be the correct account balances for 20X7 if Gotham City used the purchase method of accounting for inventories?
Answer:
$25,000; $8,000
Explanation:
Based on the information given , we were told that they acquires the amount of $25,000 of inventory on NOVEMBER 1, 20X7, in which on DECEMBER 31, 20X7, a PHYSICAL COUNT shows $8,000 was still in stock which means wthat the CORRECT ACCOUNT BALANCES for 20X7 if Gotham City used the PURCHASE METHOD of accounting for INVENTORIES will be Expenditure of the amount of $25,000 and Inventory of supplies of the amount of $8000.
Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below: Sales (12,800 units × $20 per unit) $ 256,000 Variable expenses 153,600 Contribution margin 102,400 Fixed expenses 114,400 Net operating loss $ (12,000 ) Required: 1. Compute the company’s CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes that a $6,700 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $84,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company’s monthly net operating income?
Answer:
Results are below.
Explanation:
Giving the following information:
Sales (12,800 units × $20 per unit) $256,000
Variable expenses 153,600 (12)
Contribution margin 102,400
Fixed expenses 114,400 Net operating loss $ (12,000 )
First, we need to calculate the contribution margin ratio and the break-even point in units and dollars:
Contribution margin ratio= unitary CM / Selling price
Contribution margin ratio= total CM / Sales
Contribution margin ratio= 102,400 / 256,000
Contribution margin ratio= 0.4
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 114,400 / (20 - 12)
Break-even point in units= 14,300
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 114,400 / 0.4
Break-even point (dollars)= $286,000
Now, we need to calculate the effect on the income of increasing the advertising budget:
Effect on income= increase in contribution margin - increase in fixed costs
Effect on income= 84,000*0.4 - 6,700
Effect on income= $26,900 increase
Because of their sharp quality text output and fast printing speeds, ___ printers are often preferred by businesses.
Answer:
Laser printer
Explanation:
Laser printers are quicker than inkjet printers (producing more pages per minute), generate higher-quality output (with some limitations), and are better suited for high-volume production. Laser printers produce significantly finer lines than inkjet printers, making them ideal for text, logos, and corporate information graphics.
Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 22,000 machine hours of activity, total maintenance costs averaged $33.40 per hour. When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $30.40. On the basis of this information, the fixed cost was:
Answer:
$550,000
Explanation:
The computation of the fixed cost is shown below:
But before that the variable cost per hour is
= (25,000 ×$30.40 - 22,000 × $33.40) ÷ (25,000 - 22,000)
= ($760,000 - $734,800) ÷ (3,000)
= $8.4
Now the fixed cost is
= $760,000 - (25,000 × $8.4)
= $550,000
