Answer:
Small businesses contribute to local economies by bringing growth and innovation to the community in which the business is established. Small businesses also help stimulate economic growth by providing employment opportunities to people who may not be employable by larger corporations.
Explanation:
Carol Co. prepares a statement of cash flows starting with net income and then adjusting for items necessary to obtain net cash provided or used by operating activities. Carol Co. must be using the______method of reporting the statement of cash flows.
Answer:
indirect
Explanation:
From the question we are informed about Carol Co. prepares a statement of cash flows which start with net income and then adjusting for items necessary to obtain net cash provided or used by operating activities. In this case, Carol Co. must be using the
indirect method of reporting the statement of cash flows. In financial accounting, cash flow statement can be regarded as financial statement which express the way changes in balance sheet accounts as well as income affect cash and cash equivalents, and also give the analysis breakdown to operating, financing as well as investingactivities.
The methods for reporting statement of cash flows could be Direct or indirect method.
The indirect method can be regarded as method that gives presentation of the statement of cash flows by strating
with net income or net loss, along with deduction or additions to the amount for non-cash revenue and expense items or from them which comes subsequently, which then results to cash flow from operating activities.
If the market rate of interest is 7%, the price of 6% bonds paying interest semiannually with a face value of $500,000 will be Group of answer choices equal to $500,000 greater than $500,000 less than $500,000 greater than or less than $500,000, depending on the maturity date of the bonds
Answer:
less than $500,000
Explanation:
Based on the information given Bonds issued that has a CONTRACT RATE of 6% which is LESSER THAN the MARKET INTEREST RATE of 7% will lead to a DISCOUNT because the PRICE OF THE BONDS of 6% is LESSER THAN the FACE VALUE of the bonds which therefore means that the PRICE OF THE BONDS will be LESS THAN its face value of the amount of $500,000.
Stanley Corp. had 100,000 shares of common stock outstanding throughout 2004. It also had 20,000 stock options with an exercise price of $20 and another 20,000 options with an exercise price of $28. The average market price for the company's stock was $25 throughout the year. The stock closed at $30 on December 31, 2004. What are the number of shares used to calculate diluted earnings per share for the year?
Answer:
104,000
Explanation:
Calculation to determine the number of shares used to calculate diluted earnings per share for the year
Using this formula
Number of shares=Additional shares+Common shares outstanding
Let plug in the formula
Number of shares=(20,000 − [(20,000 × 20) / 25])+100,000
Number of shares=4,000+100,000
Number of shares=104,000
Therefore the number of shares used to calculate diluted earnings per share for the year is 104,000
Claire and Don are farmers who produce beef and corn. In a year, Claire can produce 40 tons of beef or 160 bushels of corn. In a year, Don can produce 10 tons of beef or 20 bushels of corn. How do Clair and Don maximize their total output of beef and corn?
A. Claire produces beef and corn while Don produces nothing.
B. Claire produces beef and Don produces com.
C. Claire and Don each spend half of their time producing beef and the other half producing corn.
D. Don produces beef and Claire produces com.
Ms. Newcastle has $60,000 income this year and $40,000 next year. The market interest rate is 10% per year (Ms. Newcastle can both lend and borrow at this rate). Suppose Ms. Newcastle wishes to consume $62,000 next year. What will be her consumption this year
Answer:
$40,000
Explanation:
Calculation to determine What will be her consumption this year
Using this formula
Consumption=Current Income-(Next year consumption-Next year income/1+Market interest rate)
Let plug in the formula
Consumption=$60,000-[($62,000-$40,000)/(1+.10)]
Consumption=$60,000-($62,000-$40,000/1.1)
Consumption=$60,000 - ($22,000/1.1)
Consumption=$60,000-$20,000
Consumption=$40,000
Therefore What will be her consumption this year is $40,000
Here are the U.S. tax rates and their corresponding tax brackets based on filing status for single individuals (i.e. not corporations) If taxable income is: Then income tax equals: Not over $9,875 10% of the taxable income Over $9,875 but not over $40,125 $987.50 plus 12% of the excess over $9,875 Over $40,125 but not over $85,525 $4,617.5 plus 22% of the excess over $40,125 Over $85,525 but not over $163,300 $14,605.5 plus 24% of the excess over $85,525 Over $163,300 but not over $207,350 $33,271.5 plus 32% of the excess over $163,300 Over $207,350 but not over $518,400 $47,367.5 plus 35% of the excess over $207,350 Over $518,400 $156,235 plus 37% of the excess over $518,400 Layla's taxable income for 2019 was $182,431. How much are her federal income taxes to the nearest dollar
Answer:
Layla's federal income taxes to the nearest dollar are:
= $39,393.
Explanation:
a) Data and Calculations:
Layla's taxable income
for 2019 = $182,431 Income Tax
Income tax on (163,300) = $33,271.50
Excess of $163,300 19,131 = $6,121.92 ($19,131 * 32%)
Total income tax payable = $39,393.42
U.S. Tax Rates and Corresponding Tax Brackets (Single Individuals)
If taxable income is: Then income tax equals:
Not over $9,875 10% of the taxable income Over $9,875 but not over $40,125 $987.50 plus 12% of the excess over $9,875
Over $40,125 but not over $85,525 $4,617.5 plus 22% of the excess over $40,125
Over $85,525 but not over $163,300 $14,605.5 plus 24% of the excess over $85,525
Over $163,300 but not over $207,350 $33,271.5 plus 32% of the excess over $163,300
Over $207,350 but not over $518,400 $47,367.5 plus 35% of the excess over $207,350
Over $518,400 $156,235 plus 37% of the excess over $518,400 Layla's taxable income for 2019 was $182,431
Which one of the following statements is correct concerning the expected rate of return on an individual stock given various states of the economy?
a. The expected return is an arithmetic average of the individual returns for each state of the economy.
b. As long as the total probabilities of the economic states equal 100%, then the expected return on the stock is a geometric average of the expected returns for each economic state.
c. The expected return is equal to the summation of the values computed by dividing the expected return for each economic state by the probability of the state.
d. The expected return is a geometric average where the probabilities of the economic states are used as the exponential powers.
e. The expected return is a weighted average of the returns where the probabilities of the economic states are used as the weights.
Answer: e. The expected return is a weighted average of the returns where the probabilities of the economic states are used as the weights.
Explanation:
When calculating the expected return of a stock given the probabilities that different economic states would occur and the returns of the stock should those states occur, we use the probabilities as weights to get the weighted average of the returns given. This is the expected return.
Formula looks like this:
Expected return = (Probability that economy is good * return if economy is good) + (Probability that economy is average * return if economy is average) + (Probability that economy is poor * return if economy is poor)
Your grandparents would like to establish a trust fund that will pay you and your heirs $205,000 per year forever with the first payment 12 years from today. If the trust fund earns an annual return of 4 percent, how much must your grandparents deposit today?
Answer:
PV= $3,201,059.88
Explanation:
Giving the following information:
Annual cash flow= $205,000
First payment= 12 years from today
Interest rate= 4%
First, we need to calculate the value of the account 12 years from today. We need to use the following formula:
FV= Cf/ i
FV= 205,000 / 0.04
FV= $5,125,000
Now, the amount to be deposited today:
PV= FV / (1 + i)^n
PV= 5,125,000 / (1.04^12)
PV= $3,201,059.88
this is not only a value in itself but a value that guarantees other values. a. patience. b.fairness. c.respect. d integrity
Answer: Integrity
Explanation:
Integrity isn't only a value in itself but a value that guarantees other values. Integrity means to be true to ones values and act in accordance to those values.
A person with integrity has ethical principles and always does the right thing. Employees like people who have integrity Workers build relationships based on integrity.
At Cool Clothes Inc., there is a total focus on providing care and satisfaction to each customer. In the major clients division, each manager is assigned three employees to supervise, whereas in the product assembly division, each manager supervises about 15 employees. The major clients division managers can be described as having _____, as opposed to _____ for the product assembly division managers.
Answer: a narrow span of control; a wide span of control
Explanation:
Based on the information given, the major clients division managers can be described as having a narrow span of control, as opposed to a wide span of control for the product assembly division managers.
The span of control simply means the number of subordinates that are under the direct control and supervised by a certain manager.
Since we are informed that while in the major clients division, every manager is assigned three employees to supervise, whereas in the product assembly division, each manager supervises about 15 employees, then product assembly division managers has a wide span of control.
Tri Town Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. To stimulate business, the company is considering exhibiting at the Middleton Home and Garden Expo. The exhibit will cost the company $14,980 for space. At the show, Tri Town Interiors will present a slide show on a laptop, pass out brochures that were printed previously (the company printed more than needed), and show its portfolio of previous jobs.
The company estimates that revenue will increase by $40,060 over the next year as a result of the exhibit. For the previous year, profit was as follows: $213,615 $18,106 81,459 56,285 18,811 Revenue Less: Design supplies Salary of Samantha Spade (owner) Salary of Kim Bridesdale (full-time employee) Rent Utilities Depreciation of office equipment Printing of advertising materials Advertising in Middleton Journal Travel expenses other than depreciation of autos Depreciation of company cars Net income 6,570 4,000 812 3,080 2,890 9,930 201,943 $11,672
Assume that design supplies and travel other than depreciation are variable costs.
Calculate the impact of the exhibit on company profit. (Round intermediate calculations to 4 decimal places, e.g. 0.3215 and final answer to 0 decimal places, e.g. 125.)
Company profit will _______ by _______
Should the company exhibit at the home show?
The company ________ exhibit at the home show.
Answer:
Tri Town Interiors
Company profit will increase by $21,272.
The company should exhibit at the home show.
Explanation:
a) Data and Calculations:
Cost of the exhibit = $14,980
Increase in revenue from the exhibit = $40,060
Increase in revenue from the exhibit = 19% ($40,060/$213,615 * 100)
Design supplies = $21,365 ($18,106 * 1.19)
Travel expenses other than depreciation of autos = $3,439 ($2,890 * 1.19)
Revenue $213,615 $253,675
Less:
Design supplies $18,106 $21,365
Salary of Samantha Spade (owner) 81,459 81,459
Salary of Kim Bridesdale
(full-time employee) 56,285 56,285
Rent 18,811 18,811
Utilities 6,570 6,570
Depreciation of office equipment 4,000 4,000
Printing of advertising materials 812 812
Advertising in Middleton Journal 3,080 3,080
Travel expenses other than
depreciation of autos 2,890 3,439
Cost of exhibit 14,980
Depreciation of company cars 9,930 201,943 9,930 220,731
Net income $11,672 $32,944
Increase in net income = $21,272 ($32,944 - $11,672)
Which of the following should be included in the acquisition cost of a piece of equipment? installation costs transportation costs testing costs prior to placing the equipment into production All of these choices are correct.
Answer: All of these choices are correct.
Explanation:
Acquisition cost is the total amount of money incurred in purchasing an asset. The acquisition cost should include all the expenses that are incurred such as:
• installation costs
• transportation costs
• testing costs prior to placing the equipment into production
Therefore, the correct option is "All of the above".
What is the critical issues confronting WCC North America and what changes, if any, should be initiated to address the critical issues?
Answer and Explanation:
What is the critical issues confronting WCC North America?
WCC North America faces a supply chain management issue whereby there are lapses in integrating divisions within the organization resulting in complications with determining order status of customers.
What changes, if any, should be initiated to address the critical issues?
The text "Supply Chain Logistics Management, by Donald J. Bowersox, David J. Closs, M. Bixby Cooper, John C. Bowersox, 2013" mentions the need to address the critical issue of WCC North America by setting up a system that populates data of customer order status,recognizing them as high volume key accounts, in order to keep order response efficient and effective.
Which one of the following would not be considered a disadvantage of the partnership form of organization?
a. Limited life.
b. Unlimited liability.
c. Mutual agency.
d. Ease of formation.
Answer:
d. Ease of formation.
Explanation:
A partnership can be defined as a type of business ownership in which two or more individuals come together to start up a business and share the profits made together.
Basically, there must be mutual understanding and assent between the parties involved in the establishment or creation of a partnership form of organization (business).
Additionally, a partnership form of business is considered to be one of the easiest type of business to start up or form once there is an agreement between two or more individuals to establish a lawful and legal business.
Hence, ease of formation wouldn't be considered a disadvantage of the partnership form of organization.
Potatoes cost Janice $1.10 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30 per pound. How many pounds of potatoes will she purchase? What if she only had $3.00 to spend?
Answer:
2 pounds of potatoes
2 pounds of potatoes
Explanation:
She would only purchase pounds of potatoes for which the worth she places on them is greater than their cost. this is subject to a budget constraint of $5 and $3
she would purchase the first and second pounds because their worth is greater than their cost and based her budger she can afford them
Revenue of a segment includes A. only sales to unaffiliated customers B. Sales to unaffiliated customers and intersegment sales c. Sales to unaffiliated customers and interest revenue d. Sales to unaffiliated customers and other revenue and gains
Answer: Sales to unaffiliated customers and intersegment sales
Explanation:
A segment refers to a business component of a business which generates its own revenues.
Revenue of a segment includes the sales to unaffiliated customers and intersegment sales. Therefore, the correct option is B.
Wild Flowers Express has a debt-equity ratio of .60. The pretax cost of debt is 9 percent while the unlevered cost of capital is 14 percent. What is the cost of equity if the tax rate is 23 percent
Answer:
0.1631 ; 16.31%
Explanation:
Given:
Cost of capital = 14% = 0.14
Debt to equity ratio = 60% = 0.6
Cost of debt = 9% = 0.09
Tax rate = 23% = 0.23
Cost of equity : cost of capital + debt - to - equity ratio * (1 - tax rate) * (cost of capital - cost of debt)
Cost of equity = 0.14 + 0.60 × (1 - 0.23) × (0.14 - .09)
Cost of equity :
0.14 + 0.60 * 0.77 * 0.05
0.14 + 0.0231
= 0.1631 ; 0.1631 * 100% = 16.31%
1 If Peter temporarily takes over Thomas's job in his absence, what does this move represent? Briefly explain what this entails.
Answer:
This can be a positive challenge for Peter's career, as by taking on Thomas he will handle different tasks and job challenges, and by taking on the new responsibilities effectively, he will be able to be more recognized in the organization he works with and gain more trust from your superiors and Thomas, which is a positive point in the work environment that can lead to future promotions.
The adjusting entry to record the amortization of a discount on bonds payable is Group of answer choices debit Discount on Bonds Payable, credit Interest Expense debit Interest Expense, credit Discount on Bonds Payable debit Interest Expense, credit Cash debit Bonds Payable, credit Interest Expense
Answer:
The adjusting entry to record the amortization of a discount on bonds payable is:
debit Interest Expense, credit Discount on Bonds
Explanation:
The debit to the Interest Expense increases the Interest Expense (coupon interest) by the amortized discount for the period while the credit to the Discount on Bonds reduces the balance of the Discount on Bonds, which is originally a debit entry. Note that the amortized discount is calculated as the difference between the coupon interest and the interest on the Bonds Payable balance based on the effective interest method.
Santoyo Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:
Hours
Wait time 30.2
Process time 0.4
Inspection time 0.2
Move time 3.6
Queue time 8.7
The delivery cycle time was:__________.
a. 3.6 Hours
b. 12.3 Hours
c. 42.5 Hours
d. 43.1 Hours
Answer:
d. 43.1 Hours
Explanation:
Calculation to determine what The delivery cycle time was
Using this formula
Delivery cycle time = Wait time + Process time + Inspection time + Move time + Queue time
Let plug in the formula
Delivery cycle time= 30.2 + 0.4 + 0.2+ 3.6 + 8.7
Delivery cycle time= 43.1 Hours
Therefore The delivery cycle time was:43.1 Hours
The smaller order quantities occasioned by online retailing tend to favor transport companies with extensive delivery networks and expertise in parcel shipments.
A. True
B. False
Answer:
A. True
Explanation:
e-commerce is a short for electronic commerce and it can be defined as a marketing strategy that deals with meeting the needs of consumers, by selling products or services to the consumers over the internet.
This ultimately implies that, e-commerce is strictly based on the buying and selling of goods or services electronically, over the internet or through a digital platform.
Online retailing is a form of e-commerce which avails consumers to directly search, choose and remotely purchase goods or services from a seller or service provider over the internet through the use of a software application or web browser.
However, the goods or services purchased through online retailing is delivered physically to the location or address provided by a consumer (customer).
Generally, the orders placed by a consumer through online retailing is usually much larger but in smaller quantities when compared with the orders chosen in an in-store retailing.
Therefore, an order management system with the capacity to handle high volume of orders is necessary and requisite for online retailing, through the use of an open-case picking such as push carts or totes for consumers.
Hence, online retailing usually favor transport or logistics companies having extensive delivery networks and expertise in parcel shipments due to the smaller order quantities associated with online retailing.
At a total cost of $2,480,000, Herrera Corporation acquired 160,000 shares of Tran Corp. common stock as a long-term investment. Tran Corp. has 400,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation.
Required:
Journalize the entries by Herrera Corporation.
Answer:
Explanation:
Journalizing is the approach taken by corporate organizations for recording daily operations and transactions in the organization. Organizations use it to produce the final accounts and assess the company's performance and productivity.
Assuming:
the current net income of the Tran Corp. = $510,000 &
A cash dividend of $1.10 / common share is paid by Tran Corp.
Then:
To record entry for income of Trans Corp:
Description Debit ($) Credit($)
Investment - Tran Corp. stock
(510000*(160000/400000) 204000
Tran Corp COmpany Income 204000
(To record income of Tran Corp Company)
The entry record for dividend received by cash:
Description Debit ($) Credit ($)
Cash (160000/1.10) 145,455
Investment - Tran Corp stock 145,455
(Record recieved dividend)
g A machine costing $58,944 with a 6-year life and $55,853 depreciable cost was purchased January 1. Compute the yearly depreciation expense using straight-line depreciation. Round your answer to the nearest whole dollar.
Answer:
$9,309
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
DEPRECIABLE COST / USEFUL LIIFE
$55,853 / 6 = $9,309
Hilltop Paving has a levered equity cost of capital of 14.92 percent. The debt-to-value ratio is .4, the assumed tax rate is 23 percent, and the pretax cost of debt is 7.2 percent. What is the estimated unlevered cost of equity
Answer:
The estimated unlevered cost of equity is 12.30%.
Explanation:
Debt-to-value ratio = 0.4
Equity-to-value ratio = 1 - Debt-to-value ratio = 1 - 0.4 = 0.6
The estimated unlevered cost of equity can be calculated solving the following formula:
Levered equity cost of capital = Unlevered cost of equity + ((Debt-to-value ratio / Equity-to-value ratio) * (100% - Tax rate) * (Unlevered cost of equity - Pretax cost of debt)) .............. (1)
Substituing all the relevant values into equation (1), we have:
14.92% = Unlevered cost of equity + ((0.4/0.6) * (1 - 23%) * (Unlevered cost of equity - 7.2%))
Let R0 = Unlevered cost of equity, we have:
14.92% = R) + ((0.4/0.6) * (1 - 23%) * (R0 - 7.2%))
14.92% = R0 + (0.666666666666667 * 0.77 * (R0 - 7.2%))
14.92% = R0 + (0.513333333333334 * (R0 -7.2%))
14.92% = R0 + (0.513333333333334 * R0) - (0.513333333333334 * 7.2%)
14.92% = R0 + (0.513333333333334 * R0) - 0.03696
14.92% + 0.03696 = R0(1 + 0.513333333333334)
0.18616 = R0(1.513333333333334)
R0 = 0.18616 / 1.513333333333334
R0 = 0.1230, or 12.30%
Therefore, the estimated unlevered cost of equity is 12.30%.
A director who becomes involved in litigation because of his or her position has no right to be indemnified for the costs. a. True b. False
Answer:
b. False
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.
It is considered to be one of the most complicated and expensive type of organization.
Generally, a corporation is considered to be perpetual in nature and it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity.
One of the advantage of a corporation is that, owners have limited liability for debt to the extent to which they have invested and as such are not personally liable for some of debt owed by corporation.
Hence, a director who becomes involved in litigation because of his or her position has a right to be indemnified or reimbursed for the costs involved or incurred.
A firm uses exponential smoothing method to forecast demand. In period 10, the forecast was 90 and the actual demand was 100. If the smoothing constant is equal to 0.10, then what is the forecast for period 11?
a. 91
b. 101
c. 99
d. none of the choices are correct
e. 89
Answer:
c. 99
Explanation:
Calculation to determine the forecast for period 11
Using this formula
Forecast for period 11=Forecast *Smoothing constant*Period 11 Forecast
Let plug in the formula
Forecast for period 11=90*.10*11
Forecast for period 11=99
Therefore the forecast for period 11 is 99
Katie Kwasi’s utility function is U(x1, x2) = 2(ln x1) + x2. Given her current income and the current relative prices, she consumes 10 units of x1 and 15 units of x2. If her income doubles, while prices stay constant, how many units of x1 will she consume after the change in income?
Answer:
Katie Kwasi's Utility Function
The units of x1 that she will consume after the change in income is:
= 40 units of x1
Explanation:
a) Data and Calculations:
Katie Kwasi’s utility function, U(x1, x2) = 2(ln x1) + x2
Current consumption = 10 units of x1 and 15 units of x2
When her income doubles, with prices staying constant, Katie will consume:
= 2(2 * 10 of x1) + 15 of x2
= 40 units of x1 + 15 units of x2
Therefore, she will consume 40 units of x1 and 15 units of x2
b) The above function expresses mathematically Katie's utility to be a function of the units of x1 and x2 that she can consume, given her income constraint. If her income doubles, Katie will consume double units of x1 and the same units of x2 as she was consuming before the change in income.
Ironton Products has a production budget as follows: May, 13,500 units; June, 16,500 units; and July, 21,500 units. Each unit requires 2 labor hours at $12 per hour. What would be the budgeted direct labor cost for June
Answer:
Direct labor cost= $396,000
Explanation:
Giving the following information:
Production:
May, 13,500 units
June, 16,500 units
July, 21,500 units.
Each unit requires 2 labor hours at $12 per hour.
First, we need to calculate the number of hours required for June:
Number of direct labor hours= 16,500*2= 33,000 hours
Now, the direct labor cost:
Direct labor cost= 33,000*12= $396,000
Given the following data: Treasury Bill Maturity DTM Bid Asked Mar 90 1.20 1.15 If you invest $10,000 today at the risk-free rate, how much will you receive in 90 days
Answer: $10029
Explanation:
Based on the information given in the question, if $10000 is invested today at the risk-free rate, the amount that'll be received in 90 days will be calculated thus:
= Investment × (1 + Asked) × (DTM/360)
= 10000 + (1 + 0.0115) × (90/360)
= 10000 + 1.011 × 0.25
= 10029
Therefore, the answer is $10029
A college uses advisors who work with all students in all divisions of the college. The most useful allocation basis for the salaries of these employees would likely be:
Answer:
d. number of students advised from each division
Explanation:
In the case when the college use the advisors who wants to work with the students for all type of divisions of the college. So here the distribution or allocation basis for the salaries should be depend upon the number of students that advised from each and every decision
Therefore as per the given situation, the option d is correct
