Answer:
$18,711,000
Explanation:
Based on the information given the amount of more revenue would it have brought to Chester Corp will be $18,711,000
TD Bank has the following assets and liabilities as of year-end. All assets and liabilities are currently priced at par and pay interest annually.
Assets Amount($millions) Annual Rate Liabilities Amount ($ millions) Annual Rate
2-years loans $40 8% 3-years GIC $60 7%
3-years loans $60 8% 5-years term deposit $30 6%
Equity $10
Total $100 Total $100
Required:
a. What is the change in the value of its assets if all interest rates decrease by 1 percent?
b. What is the change in the value of its liabilities if all interest rates decrease by 1 percent?
c. What is the effect on the value of the Fi's equity if interest rates decrease by 1 percent?
Answer:
a) Change of $2.6 million
b) Change of $3.3 million.
c) Decrease in equity by $0.7 million
Explanation:
a) Determine change in value of assets when interest rates decrease by 1%
i) 2-year loans
Principal Amount = $40 , Annual rate = 8%
Value of asset = P + interest = $40 + 6.4 = $46.4
Interest earned = PRT = (40 * 8 * 2) / 100 = $6.4
Given that Annual rate = 8 - 1 = 7%
value of asset = P + interest = $45.6
interest = ( 40 * 7 * 2 ) / 100 = $5.6
change in 2-year loan assets = 46.4 - 45.6 = $0.8 million
ii) 3-year loan assets
Principal amount = $60 , annual rate = 8%
Value of asset = P + interest = 60 + 14.4 = $74.4
interest earned = PRT = ( 60 * 8 * 3 ) / 100 = $14.4
When Annual rate = 8 - 1 = 7%
value of asset = P + interest = 60 + 12.6 = $72.6
interest = ( 60 * 7 * 3 ) / 100 = $12.6
Change in 3-years loan assets = 74.4 - 72.6 = $1.8
∴Total change in value of assets = 1.8 + 0.8 = $2.6 million
B) Change in value of liabilities when interest rates fall by 1%
i) 3-years GIC liability
Principal amount = $60 , interest rate = 7%
Value of liability = P + interest = $72.6
interest = ( 60 * 7 * 3 ) / 100 = $12.6
When interest rate = 7 - 1 = 6%
Interest = ( 60 * 6 *3 ) / 100 = $10.8
value = 60 + 10.8 = $70.8
change in 3 years GIC liability = 72.6 - 70.8 = $1.8
ii) 5 - years term deposit liability
principal amount = $30 , interest rate = 6%
value of liability = P + interest accrued = 30 + 9 = $39
Interest accrued = ( 30 * 6 * 5 ) / 100 = $9
when Interest rate = 6 - 1 = 5%
value of liability = P + interest accrued = 30 + 7.5 = $37.5
interest accrued = ( 30 * 5 * 5 ) / 100 = $7.5
change in 5-years term deposit liability = 39 - 37.5 = $1.5
∴ Total change in value of liabilities = 1.8 + 1.5 = $3.3 million
c) Effect on the value of FI's equity is that there will be an DECRESE in equity because of the Increase in Liability value more than increase in asset value
Equity = asset - liability
= 2.6 - 3.3 = -$0.7 million
During its inception, Devon Company purchased land for $100,000 and a building for $180,000. After exactly 3 years, it transferred these assets and cash of $50,000 to a newly created subsidiary, Regan Company, in exchange for 15,000 shares of Regan's $10 par value stock. Devon uses straight-line depreciation. Useful life for the building is 30 years, with zero residual value. An appraisal revealed that the building has a fair value of $200,000. 5) Based on the information provided, at the time of the transfer, Regan Company should record: A) Building at $180,000 and no accumulated depreciation. B) Building at $162,000 and no accumulated depreciation. C) Building at $200,000 and accumulated depreciation of $24,000. D) Building at $180,000 and accumulated depreciation of $18,000.
Answer:
The answer is "Option D".
Explanation:
R Company must register a [tex]\$180,000[/tex] building, as well as, an accumulated [tex]\$18,000[/tex] depreciation.
It makes the design the right decision with [tex]\$180,000[/tex] as well as the accrued [tex]\$18,000[/tex] depreciation.
In the market for reserves, a decline in the reserve requirement ________ the ________ curve of reserves and causes the federal funds interest rate to fall, everything else held constant.
Answer:
Shortens,
vertical section of the supply
Explanation:
In the market for reserves a decline in the reserve requirement shortens the vertical section of the supply curve of reserves and this will also cause the federal funds interest rate to fall,
Given that every other thing is kept constant
The federal funds interest is an interest rate charged by banks when lending or borrowing excess reserves from each other overnight
Explanation:
Shortens, Vertical Section Of The Supply
macarthy landscape supply's selected accounts follow Selling Expenses $12,900 Interest Revenue 900 Net Sales Revenue 134,700 Cost of Goods Sold 114,000 Administrative Expense 10,200 compute gross profit percentage
Answer:
15.37%
Explanation:
Computation of the gross profit percentage
First step is to calculate the Gross profit using this formula
Gross profit = Net sales revenue - Cost of goods sold
Let plug in the formula
Gross profit= $134,700 - $114,000
Gross profit= $20,700
Now let determine the Gross profit percentage using this formula
Gross profit percentage = Gross profit / net sales revenue
Let plug in the formula
Gross profit percentage= $20700/ $134700
Gross profit percentage= 15.37%
Therefore Gross profit percentage is 15.37%
The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $ 45,650 Current assets $ 19,020 Long-term debt $ 37,970 Costs 36,450 Fixed assets 69,250 Equity 50,300 Taxable income $ 9,200 Total $ 88,270 Total $ 88,270 Taxes (24%) 2,208 Net income $ 6,992 Assets and costs are proportional to sales. The company maintains a constant 35 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum dollar increase in sales that can be sustained assuming no new equity is issued
Answer:
$4,533.05
Explanation:
Return on equity (ROE) = Net income / Equity
Return on equity (ROE) = $6,992 / $50,300
Return on equity (ROE) = 13.9%
Retention ratio = 1 - Dividend payout ratio
Retention ratio = 1 - 35%
Retention ratio = 65%
Sustainable growth rate = [13.9%*65%] / [1 - 13.9%*65%]
Sustainable growth rate = 0.09035 / 0.90965
Sustainable growth rate =0.09932392
Sustainable growth rate = 9.93%
Maximum dollar increase = Sales * Sustainable growth rate
Maximum dollar increase = $45,650 * 9.93%
Maximum dollar increase = $4,533.05
An individual who expects to receive more than $250 of income from sources other than wages meets the requirements for having to file quarterly estimated tax payments.
a. True
b. False
mwakilembe Co.ltd is a micro business which buys and sell toys on 1 January 2020 the company predicted its annual sales to be 1000000 units. Each order would cost the company TZS 80 . The company pays TZS 160 per unit of a product. Estimated inventory carrying costs are 25 percent of inventory value. Establish the EOQ units.
Answer:
2000
Explanation:
Given:
Annual DEMAND, D = 1,000,000
Holding cost, H = (I * C)
Cost per order, S = 80
Unit cost, C = 160
Holding cost (%) = 25% = 0.25
The Economic order quantity :
EOQ = √[(2 * D * S) / (I * C)]
EOQ = √[(2 * 1000000 * 80) / (0.25 * 160)]
EOQ = √[(160000000) / 40]
EOQ = √4000000
EOQ = 2000
Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years
and an estimated residual value of $25,000.
A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method
of depreciation?
B. What was the book value of the equipment on January 1 of Year 4?
C. Assuming that the equipment was sold on January 3 of Year 4 for $300,000, journalize the
entry to record the sale.
D. Assuming that the equipment had been sold on January 3 of Year 4 for $325,000 instead
of $300,000, journalize the entry to record the sale.
Answer:
A. Year 1 $17,500
Year 2 $17,500
Year 3 $17,500
B. $322,500
C. Dr Cash $300,000
Dr Accumulated Depreciation-Equipment $52,500
Dr Loss on disposal of Equipment $22,500
Cr Equipment $375,000
D. Dr Cash $325,000
Dr Accumulated Depreciation-Equipment $52,500
Cr Equipment $375,000
Cr Gain on disposal of Equipment $2,500
Explanation:
A. Calculation to determine What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation
Year 1 Depreciation expense Year 1=($375,000-$25,000)/20 years
Year 1 Depreciation expense Year=$17,500
Year 2 Depreciation expense Year=($375,000-$25,000)/20 years
Year 2 Depreciation expense Year=$17,500
Year 3 Depreciation expense Year=($375,000-$25,000)/20 years
Year 3 Depreciation expense Year=$17,500
Therefore the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation is :
Year 1 $17,500
Year 2 $17,500
Year 3 $17,500
B. Calculation to determine What was the book value of the equipment on January 1 of Year 4
Book value of Equipment=[$375,000-($17,500*3)]
Book value of Equipment=[$375,000-$52,500)
Book value of Equipment=$322,500
Therefore the book value of the equipment on January 1 of Year 4 is $322,500
C. Preparation of the journal entry to record the sale.
Jan. 3
Dr Cash $300,000
Accumulated Depreciation-Equipment $52,500
($17,500*3)
Dr Loss on disposal of Equipment $22,500
($322,500-$300,000)
Cr Equipment $375,000
(To record sales)
D. Preparation of the journal entry to record the sale.
Jan. 3
Dr Cash $325,000
Dr Accumulated Depreciation-Equipment $52,500
($17,500*3)
Cr Equipment $375,000
Cr Gain on disposal of Equipment $2,500
($325,000+$52,500-$375,000)
(To record sales)
For 2019, Skresso Co. reported $1.82 of earnings per share of common stock. During 2020, the firm had a 4% common stock dividend. The 2019 earnings per share to be reported in the annual report for 2020 are:
Answer:
$1.75
Explanation:
Earnings per share to be reported = Earnings per share of commo stock * (1 - 4%)
Earnings per share to be reported = $1.82 * 96%
Earnings per share to be reported = $1.7472
Earnings per share to be reported = $1.75
So, the 2019 earnings per share to be reported in the annual report for 2020 are $1.75.
When you send a negative employment message, recipients have an emotional stake, so which approach is best?
Question 1 options:
Discreet
Indirect
Direct
Face-to-face
Answer:
Sería directo.
Explanation:
Espero ayudarte
Cullumber Corporation recently reported an EBITDA of $30.70 million and net income of $9.7 million. The company had $6.8 million in interest expense, and it's average corporate tax rate was 35 percent. What was its depreciation and amortization expense
Answer:
$9.7 million
Explanation:
Calculation to determine depreciation and amortization expense
EBITDA 30.7 million
Less:Depreciation and amortization expense(balance) ($8976923.08,)
(30.7-21.7230769)
EBIT $8976923.08
(14.9230769+6.8)
Less:interest expense (6.8 million)
EBT 14.9230769 million
(100%)(9.7/0.65)
Less:tax 35%(14.9230769*35%) 5.2230769 million
Net income(65%) 9.7 million
Therefore depreciation and amortization expense will be 9.7 million
United Airlines is considering purchase of two alternative planes. Plane A has an expected life of 5 years., will cost $100 million, and will result in net cash flow of $30 million every year. Plane B has a life span of 10 years, will cost $132 million, and will produce net cash flow of $25 million per year. United Airlines plan to serve the route only for 10 years. Inflation in operating costs, airline costs and fares are expected to be zero. The company's cost of capital is 12%. By how much would the value of the company increase if the company accepts the better project ( plane).
Answer:
United Airlines
The value of the company would increase by $9.25 million if it accepts the better project (Plane B).
Explanation:
a) Data and Calculations:
Alternative 1 Alternative 2
Plane A Plane B
Initial project cost $100 million $132 million
Annual net cash inflow $30 million $25 million
Expected lifespan 5 years 10 years
Cost of capital = 12%
Present value Annuity factor 3.605 5.650
Present value of cash inflows $108,150,000 $141,250,000
Net present value = $8,150,000 $9,250,000
The better project (plane) is Plane B.
Danielle has loaned $500 to Richard at a 4% annual rate of interest for one year. If the inflation rate is constant at 7% for the entire term of the loan, how much purchasing power is lost after Richard repays the loan in full
Answer:
$15
Explanation:
In order to calculate the purchasing power lost the following formulae will be used:
Purchasing power lost = Loaned amount * (inflation rate - nominal rate)
Purchasing power lost = $500 * (0.07 - 0.04)
Purchasing power lost = $500 * 0.03
Purchasing power lost = $15
Hence, the purchasing power lost after Richard repays the loan in full is $15.
An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster, will result in:
Answer:
an increase in price and an indeterminate increase in equilibrium quantity
Explanation:
Increase in demand leads to an outward shift of the demand curve. As a result equilibrium price and quantity increases
A decrease in supply leads to an inward shift of the supply curve
At the fourth and final resource, one operator handles the product. No quality problems exist at this step and the processing time is 12 minutes per unit. For every unit of demand, how many units have to flow through the second step in the process
Answer:
2.25 units.
Explanation:
Processing time is 5 minutes per unit for step 1. The total capacity is 60 minutes then no. of units produced can be;
60 / 5 = 12 units per hour.
For second step processing time is 4 minutes per unit. There is 0.85 unit of product is scrapped. Then no. of units produced per hour can be ;
60 / 4 = 15 units per hour.
After scrap the net product units per hour will be;
15 units * [1 - 0.85] = 2.25 units per hour.
Jolene Kendrick borrowed $24,000 for new computers for her software production company. Her bank granted her a single-payment loan of $24,000 for 144 days. Determine the maturity value to the nearest cent of the loan if the rate is 9% exact interest. Do not use comma in your answer.
Answer:
248521.6
Explanation:
Given:
Amount borrowed, P = 240,000
Interest rate, R = 9% = 0.09
period, n = 144 days
The maturity value :
Since it is an exact interest, number of days, T in a years is 365
Using the formula :
A =
P(1 + RT)
A = 240000(1 + 0.09*(144/365))
A = 240000(1 + 0.0355068)
A = 240000(1.0355068)
A = 248521.64
A = 248521.6
Heavy use of long-term debt can be of benefit to a firm to help expand, although it adds to the firm's overall level of risk.
A. True
B. False.
Answer:
A
Explanation:
Long term debt is debt that has a maturity that is longer than a year.
The higher the use of debt, the higher the risk a firm takes on. This is because the greater the use of debt, the higher the chances of the firm defaulting on debt.
firms that use a high amount of debt, have an higher beta. As a result of the higher beta, the required return is also higher.
use of long-term debt provides firms with the necessary cash flows that would be needed to carry out necessary projects. Thus, it benefits a firm by helping it expand
Last year Burch Corporation's cash account decreased by $29,000. Net cash provided by (used in) investing activities was $8,400. Net cash provided by (used in) financing activities was $(26,500). On the statement of cash flows, the net cash provided by (used in) operating activities was:
Answer:
The answer is "-10,900"
Explanation:[tex]\text{Cash from operating activities} + \text{cash from investing activities + cash from financing activities} = -29,000[/tex]
[tex]\text{cash from operating activities}[/tex] [tex]+ 8,400 - 26,500 = -29,000[/tex]
[tex]= -29,000 + 26,500 - 8,400\\\\= -10,900[/tex]
Victoria received $500 from customers in partial payment for accounting services performed
previously. The recording of this transaction would
A) increase Cash and increase Accounts Receivable $500.
B) decrease Accounts Receivable and increase Victoria's Capital $500.
C) increase Cash and decrease Accounts Receivable $500.
D) increase Cash and Victoria's Capital $500
Answer:
C) increase Cash and decrease Accounts Receivable $500
Victoria received $500 from customers in partial payment for accounting services performed previously, then he increases Cash and decrease Accounts Receivable $500.
What is Accounts Receivable?Accounts receivable, is often known as AR or A/R, are legally enforceable claims for payment held by a company for products or services provided but not paid for by consumers.
The amount of account receivables increases as the payment is due from some debtors, and it decreases as the payment is received from the debtors.
In the given case, Victoria received $500 from customers in partial payment for accounting services performed previously, then the amount of cash in hand increases and the account receivables decreases as the amount is received from the past debtors.
Therefore, option C is correct.
Learn more about the accounts receivable refer to:
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A dispute between labor and management at an automobile production plant has effectively stopped production for 2 months and has cost the company a tremendous amount of money. Despite the use of third parties, neither side can agree on a solution, but they do agree that the dispute must be settled soon. How should this dispute at this stage be settled
Answer:
Arbitration
Explanation:
The arbitration process seems to be the best way to make the settlement process happen in this case. The arbitration process will be between labor and management as an impartial third party (arbitrator or arbitral tribunal) takes charge of the process. Once both parties have agreed to arbitraueb, the arbitrator then proffers powerful ways of ensuring dispute resolution in such a way that a mutual agreement is reached by both labor and management. Even though proferred solution shouldn't be compulsorily adopted by the conflicting parties.
Equipment acquired on January 8 at a cost of $168,000 has an estimated useful life of 18 years,
has an estimated residual value of $15,000, and is depreciated by the straight-line method.
A. What was the book value of the equipment at December 31 the end of the fourth year?
B. Assuming that the equipment was sold on April 1 of the fifth year for $125,000, journalize
the entries to record (1) depreciation for the three months until the sale date, and (2) the
sale of the equipment.
Answer:
A. $134,000
B1. Dr Depreciation expense $2,125
Cr Accumulated depreciation- equipment $2,125
B2. Dr Cash $125,000
Dr Loss on sale of equipment $6,875
Dr Accumulated depreciation- equipment $36,125
Cr Equipment $168,000
Explanation:
A. Calculation to determine What was the book value of the equipment at December 31 the end of the fourth year
First step is to calculate the Annual depreciation using this formula
Annual depreciation = (Cost of machinery-Residual value)/ useful life
Let plug in the formula
Annual depreciation= (168,000-15,000)/18
Annual depreciation= $8,500
Second step is to calculate the Accumulated depreciation for 4 years using this formula
Accumulated depreciation for 4 years = Annual depreciation x 4
Let plug in the formula
Accumulated depreciation for 4 years= 8,500 x 4
Accumulated depreciation for 4 years= $34,000
Now let determine the Book value of equipment at December 31 at the end of year
Using this formula
Book value of equipment at December 31 at the end of year 4 = Cost of equipment - Accumulated depreciation for 4 years
Let plug in the formula
Book value of equipment at December 31 at the end of year = 168,000-34,000
Book value of equipment at December 31 at the end of year = $134,000
Therefore the book value of the equipment at December 31 the end of the fourth year is $134,000
B1. Preparation of the journal entries to record (1) depreciation for the three months until the sale date
Year 5, April 1
Dr Depreciation expense $2,125
Cr Accumulated depreciation- equipment $2,125
( To record depreciation expense)
Calculation for Depreciation for 3 months of year 5 using this formula
Depreciation for 3 months of year 5 = Annual depreciation x 3/12
Let plug in the formula
Depreciation for 3 months of year 5 == 8,500 x 3/12
Depreciation for 3 months of year 5 = $2,125
B2.Preparation of the journal entries to record (2) the sale of the equipment.
Year 5, April 1
Dr Cash $125,000
Dr Loss on sale of equipment $6,875
Dr Accumulated depreciation- equipment $36,125
Cr Equipment $168,000
( To record sale of the equipment)
Calculation for Accumulated depreciation at April 1, year 5 using this formula
Accumulated depreciation at April 1, year 5 = Accumulated depreciation for 4 years + Depreciation for 3 months of year 5
Let plug in the formula
Accumulated depreciation at April 1, year 5= 34,000+2,125
Accumulated depreciation at April 1, year 5= $36,125
Calculation for Book value of equipment at April 1, year 5 using this formula
Book value of equipment at April 1, year 5 = Cost of equipment - Accumulated depreciation at April 1, year 5
Let plug in the formula
Book value of equipment at April 1, year 5 = $168,000-$36,125
Book value of equipment at April 1, year 5 = $131,875
Calculation for Loss on sale of equipment using this formula
Loss on sale of equipment = Book value - Sale of equipment
Let plug in the formula
Loss on sale of equipment=$ 131,875-$125,000
Loss on sale of equipment= $6,875
.
Which competitive strategy best utilizes Country Comfort's core competencies (which include a large and efficient network of obtaining and processing quality coffee beans)
Answer:
I don't know the answer to this
State and explain elements of organizational structure?
Elements of organizational structure are; (1) design jobs, (2) departmentalization, (3) establish reporting relationships, (3) distribute authority, (5) coordinating activities, and (6) differentiating among positions.
A high Power Distance Index score implies that the people who hold power in a country are entitled to privileges.
a. True
b. False
Answer:
a. True
Explanation:
The Power-Distance Index refers to the relationship and interaction between a high ranking individual and a low ranking individual. The index depends on how a low ranking individual reacts to a high ranking individual.
It measures the degree where the members of a society or group accepts the hierarchy of the power and the authority.
Thus according to the high power distance index score, individuals with high power are entitled to number of privileges in a country or in society.
Hence the answer is TRUE.
You are bullish on Telecom stock. The current market price is $62 per share, and you have $6,200 of your own to invest. You borrow an additional $6,200 from your broker at an interest rate of 7.6% per year and invest $12,400 in the stock. a. What will be your rate of return if the price of Telecom stock goes up by 9% during the next year? (Ignore the expected dividend.) (Round your answer to 2 decimal places.)
Answer:
Telecom Stock
If the price of the Telecom stock goes up by 9% during the next year, your rate of return will be:
= 10.4%
Explanation:
a) Data and Calculations:
Current market price = $62 per share
Investment in stock = $12,400
Margin account = $6,200
Loan = $6,200 ($12,400 - $6,200)
Units of stock bought on margin = 200 ($12,400/$62)
Margin account interest rate = 7.6%
Growth rate of stock price = 9%
Expected market price of the stock = $67.58 ($62 * 1.09)
Expected value of stock = $13,516 (200 * $67.58)
Interest on loan = $471.20 ($6,200 * 7.6%)
Principal & loan amount $12,400
Return on the stock = $644.80
Rate of return = 10.4% ($644.80/$6,200 * 100)
On January 1, Year 1, a contractor began work on a $3.2 million construction contract that is expected to be completed in 3 years. The contractor concludes that it is appropriate to recognize revenue over time using the input method based on costs incurred (cost-to-cost method). At the inception date, the estimated cost of construction was $2.4 million. The following data relate to the actual and expected construction costs:
Year 1 Year 2 Year 3
Cost incurred $720,000 $1,170,000 $1,110,000
Expected future costs $1,680,000 $810,000 $0
For this long-term construction contract, the contractor needs to calculate the estimated dollar values of the revenue and gross profit (loss) to be recognized each year.
Complete the contractor's long-term construction contract using the information above.
Revenue Gross Profit (loss)
Year 1
Year 2
Year 3
Answer:
Contractor's Long-term Construction Contract Table:
Revenue Gross Profit (loss)
Year 1 $960,000 $240,000
Year 2 $1,386,667 $216,667
Year 3 $853,333 ($256,667)
Total $3,200,000 $200,000
Explanation:
a) Data and Calculations:
Contract price = $3.2 million
Estimated cost of construction = $2.4 million
Actual and expected construction costs:
Year 1 Year 2 Year 3
Cost incurred $720,000 $1,170,000 $1,110,000
Expected future costs $1,680,000 $810,000 $0
Revenue $
Year 1 = $720,000/$2,400,000 * $3.2 million = $960,000
Year 2 = $1,170,000/$2,700,000 * $3.2 million = $1,386,667
Year 3 = $853,333
Revenue Gross Profit (loss)
Year 1 $960,000 $240,000 ($960,000 - $720,000)
Year 2 $1,386,667 $216,667 ($1,386,667 - $1,170,000)
Year 3 $853,333 ($256,667) ($853,333 - $1,110,000)
Total $3,200,000 $200,000 ($3,200,000 - $3,000,000)
Sunland Company reported a net profit of $8.15 per share and a dividend of $3.50 per share. If you buy shares of the stock at $94.85 per share, what is your dividend yield
Answer:
The answer is "[tex]3.69\%[/tex]"
Explanation:
Dividend Share [tex]= \$3.50[/tex]
stock purchasing Price[tex]= 94.85[/tex]
[tex]\text{Dividend yield} = \frac{Dividend}{Purchase price}\\\\[/tex]
[tex]=\frac{3.50}{94.85}\\\\=0.036900369 \approx 3.69\%[/tex]
Signature Appliance Group decided to remove the grill unit from the ovens it sells in South America after customers complained they preferred to grill outside and would never use this feature. Which environmental force caused the company to change its product
Answer:
Signature Appliance Group
The environmental force that caused the company to change its product features is:
the Social and Cultural Environment.
Explanation:
The Social and Cultural Environment refers to the changing needs of customers in South America as a result of the values, attitudes, and preferred styles of consumers. These are always in a state of flux every year. Since customers preferred to grill outside rather than inside their kitchens, adding the grill unit in the ovens that the company sells in South America will not enable customers to choose its ovens over competitors'. To respond to the stated needs of its customers, the grill must be removed, thereby reducing the cost of the ovens.
Recording the adopted budget Following is a summary of the operating budget adopted by Westchester County, New York for the calendar year 2017. The actual budget document is almost 750 pages, so the summary is highly condensed.
Prepare the journal entry to record the budget, assuming that the detail will be separately recorded. Estimated revenues and other sources:
Real property taxes $ 548,423,468
Sales tax 517,559,000
Federal and state aid 433,229,570
Departmental income 151,405,650
Other revenues 159,394,093
Total estimated revenues 1,810,011,781
Appropriated previously accumulated fund balance 15,000,000
Total estimated revenues and other sources $1,825,011,781
Appropriations: General government and support $ 49,275,122
Home and community services 614,816,681
Health services 149,224,687
Education 29,833,371
Public safety, corrections, courts 223,582,214
Roads, transportation, parks facilities 217,729,956
Miscellaneous and fixed 540,549,750
Total appropriations $1,825,011,781
Prepare the journal entry to record the budget, assuming that the detail will be separately recorded.
Answer:
Dr Real property taxes $548,423,468
Dr Sales tax $517,559,000
Dr Federal and state aid $433,229,570
Dr Departmental income $151,405,650
Dr Other revenues $159,394,093
Dr Budgetary fund balance $15,000,000
Cr General government and support $49,275,122
Cr Home and community services $614,816,681
Cr Health services $149,224,687
Cr Education $29,833,371
Cr Public safety, corrections, courts $223,582,214
Cr Roads, transportation, parks facilities $217,729,956
Cr Miscellaneous and fixed $540,549,750
Explanation:
Preparation of the journal entry to record the budget
Dr Real property taxes $548,423,468
Dr Sales tax $517,559,000
Dr Federal and state aid $433,229,570
Dr Departmental income $151,405,650
Dr Other revenues $159,394,093
Dr Budgetary fund balance $15,000,000
Cr General government and support $49,275,122
Cr Home and community services $614,816,681
Cr Health services $149,224,687
Cr Education $29,833,371
Cr Public safety, corrections, courts $223,582,214
Cr Roads, transportation, parks facilities $217,729,956
Cr Miscellaneous and fixed $540,549,750
(To record budget)
Operating Cash Flows (Direct Method)
Refer to the information in Exercise EB-31. Calculate the net cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense.
Answer:
The method to calculate Cash Flow from Direct Method is explained as follows:
Explanation:
The method to calculate Cash Flow from Direct Method is explained as follows:
Cash Flows
Direct Method
+ Cash received from Customer
- Cash paid to suppliers
- Cash payments for operating expenses
- Cash payments for interest
- Cash payments for taxes
= Net Cash flow from Operating Activities.
