Answer:
a). State and local government bonds (municipal bond)
b. Certificate of Deposit
c). Corporate bonds
Explanation:
The municipal bonds are a debt security are a from of debt security that is issued by the municipality or the state in order to finance the capital expenditures. They are exempted from most of the taxes that are imposed in that area.
Certificate of Deposit is defined as the savings account which holds a fixed amount of money. They are used to fund a short term financing requirements in a corporate.
The corporate bonds are financial instruments which are considered as an investment pools which buy a short term debt instruments. These instruments are in contractual agreements which provide a long term agreement to a party to use the asset.
Suppose that Raphael, an economist from an AM talk radio program, and Susan, an economist from a school of industrial relations, are arguing Over saving incentives. The following dialogue Shows an excerpt from their debate:
Susan: I think it's safe to say that, in general, the savings rate of households in today's economy is much lower than it really needs to be to sustain an improvement in living standards.
Raphael: I think a switch from the income tax to a consumption tax would bring growth in living standards.
Susan: You really think households would change their saving behavior enough in response to this to make a difference? Because I don't.
The disagreement between these economists is most likely due to_____________ . Despite their differences, with which proposition are two economists chosen at random most likely to agree?
a. Rent ceilings reduce the quantity and quality of available housing.
b. Immigrants receive more in government benefits than they contribute in taxes.
c. Having a single income tax rate would improve economic performance.
Answer:
a. Difference in values
b. a. Rent ceilings reduce the quantity and quality of available housing.
Explanation:
The disagreement between these economists is most likely due to difference in values.
Economists are known to disagree a lot with each other and this is down to them having different values and perspectives with regards to several economic decisions. This is why there are different economic theories subscribed to by economists such as Keynesian and New Classical theories.
Despite these disagreements however, there are certain things they would always agree on and one of those is that rent ceilings reduce the quantity and quality of available housing.
The logic behind this is that imposing a rent ceiling would dissuade real estate investors from putting in more money to develop properties because the rent ceiling would limit the returns that they can get.
Supply of real estate would also fall because less investors would go into the market because they would fear being unable to recoup adequate returns on account of the rent ceiling.
What is divisional structure in organization?
Explanation:
The divisional structure is a type of organizational structure that groups each organizational function into a division. ... Each division contains all the necessary resources and functions within it to support that product line or geography (for example, its own finance, IT, and marketing departments)
Answer:
The divisional structure is a type of organizational structure that groups each organizational function into a division. ... Each division contains all the necessary resources and functions within it to support that product line or geography (for example, its own finance, IT, and marketing departments).
Trevor heard a burglar entering through a living room window.He grinned as he picked up his gun. Crouching behind the sofa in his darkened home,he ambushed and killed the intruder with several well placed shots.He then added another notch in his trusty side-arm.Trevor most probably:____________
a. has exercised his constitutional right of self-defense.
b. has acted legally,because the shooting took place inside his home.
c. has acted legally if,but only if,the burglar was armed with a gun.
d. is guilty of a homicide,or at least voluntary manslaughter.
Answer: D. guilty of a homicide, or at least voluntary manslaughter.
Explanation:
Homicide is the act whereby a human being kills another person. A homicide can be reckless or accidental. Voluntary manslaughter is when someone else is killed unlawfully such as for self-defense.
Therefore, Trevor most probably be guilty of a homicide, or at least voluntary manslaughter.
The Bug House purchased some new machinery last year at a total cost of $18,500. The depreciation to date on this machinery is $3,400. Should the firm opt to sell the machinery today, it could probably do so at a price of $14,150. What is the current book value of this machinery
Answer:
No, 15,100
Explanation:
The book value is 15,100 (18500-3400) which is more than the potential sales price of 14,150.
I wouldn’t sell the equipment since it is worth more (15,100) than potential sales price.
Hollyfield Corporation sold a piece of equipment on September 30, 2018 for $201,000 cash. The equipment had been purchased on January 1, 2012 for $450,000. It had an estimated useful life of 10 years and a $50,000 residual value. Hollyfield Corp. has been using the straight-line method of depreciation and has a year-end of December 31st. Compute the gain or loss on disposal.
Answer:
$2,000
Explanation:
the gain or loss on disposal is
The problem of determining what goods and services society should produce: would not exist if government owned all of the resources. exists because we can produce more than we need or want. exists because there are not enough resources to provide all of the goods and services that people want. would not exist if all goods and services were scarce.
Answer:
exists because there are not enough resources to provide all of the goods and services that people want.
Explanation:
Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.
The four factors of production are;
I. Land: this refers to the natural resources and raw materials extracted from the ground or grown in the soil e.g oil, gold, rubber, cocoa, etc.
II. Labor (working): this is the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.
III. Capital resources: it includes the physical assets used for production of goods and services such as equipment, money, plant, etc.
IV. Entrepreneurship: it is intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).
These four (4) factors of production when combined effectively and efficiently are used for the manufacturing or production of goods and services that meets the unending requirements or needs of the consumers.
However, the problem of determining what goods and services society should produce in order to meet the unending requirements or needs (demands) of consumers, exists because there are not enough resources such as the factors of production to provide all of the goods and services that consumers want.
Vaughn, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years follow. Year Ended December 31 Inventory at Current-Year Cost Price Index 2019 $20,000 100 2020 22,464 108 2021 26,334 114 Compute the value of the 2020 and 2021 inventories using the dollar-value LIFO method.
Answer:
Year Ended December 31 Inventory at Current-Year Cost Price Index
2019 $20,000 100
2020 $22,464 108
2021 $26,334 114
Inventory at base year prices:
2020 = $20,800
2021 = $23,100
Change from prior yer:
2020 = $800
2021 = $2,300
Dollar value:
2020 = $20,000 + ($800 x 1.08) = $20,864
2021 = $20,864 + (2,300 x 1.14) = $23,486
Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,372,578 61,800 machine-hours Processing orders $63,235 2,010 orders Inspection $151,316 2,090 inspection-hours The company makes 600 units of product W26B a year, requiring a total of 1,200 machine-hours, 78 orders, and 34 inspection-hours per year. The product's direct materials cost is $49.55 per unit and its direct labor cost is $12.44 per unit. The product sells for $128.70 per unit. According to the activity-based costing system, the product margin for product W26B is:_____.a. $8,458.52.b. $10,920.12.c. $40,026.00.d. $10,912.40.
Answer:
The correct answer is A.
Explanation:
First, we need to calculate the activities rates:
Assembly= 1,372,578/61,800= $22.21 per machine-hour
Processing orders= 63,235/2,010= $31.46 per order
Inspection= 151,316/2,090= $72.4 per inspection-hour
Now, we allocate costs to W26B:
Assembly= 22.21*1,200= 26,652
Processing orders= 31.46*78= 2,453.88
Inspection= 72.4*34= 2,461.6
Total allocated costs= $31,567.48
Finally, the unitary cost and margin for W26B:
Unitary allocated cost= 31,567.48/600= $52.61
Unitary total cost= 49.55 + 12.44 + 52.61= $114.6
Product margin= 128.7*600 - 114.6*600= $8,460
Pollution Busters Inc. is considering a purchase of 10 additional carbon sequesters for $100,000 apiece. The sequesters last for only 1 year before becoming saturated. Then the carbon is sold to the government. a. Suppose the government guarantees the price of carbon. At this price, the payoff after 1 year is $115,000 for sure. What is the opportunity cost of capital for this investment
Answer:
15percent o 100 annually
Explanation:
opportunity cost =(115-100/100)*100
A bond has a modified duration of 8 and a price of 112,955 calculated using an annual effective interest rate of 6.4%. EMAC is the estimated price of this bond at an interest rate of 7.0% using the first-order Macaulay approximation. EMOD is the estimated price of this bondat an interest rate of 7.0% using the first-order modified approximation.Calculate EMAC - EMOD A. 91 B. 102 C. 116 D. 127 E. 143
Answer:
8.4%
Explanation:
A physical count of merchandise inventory on November 30 reveals that there are 96 units on hand. Cost of goods sold (rounded) under FIFO is
Answer: $1,712
Explanation:
If the company uses FIFO it means that they sell their earlier inventory first. If there are 96 units on hand, it means that these 96 units would be the latest inventory.
That means that these 96 units comprise of:
86 units purchased on November 25 at $6.30 each and,10 units from the November 17 purchase of 58 units at $6.05 each which means 48 units were sold from this purchase.The units sold were therefore:
= (29 * 5.80) + (115 * 6.20) + (48 * 6.05)
= 168.20 + 713 + 290.40
= $1,171.60
= $1,712
Decide if the following probability is classical, empirical, or subjective.
You calculate that the probability of randomly choosing a student who is right-handed is about 54%.
Answer:
Classical probability
Explanation:
Classical probability is calculated only when all possible outcomes in the sample space are down and equally likely to occur. It is the probability of known events or events whose resulting probabilities are definitive
For example, students are either left-handed, right-handed or ambidextrous
Subjective probability is a guess on the likelihood an event would occur.
Experimental probability is the probability derived by repeatedly carrying out an experiment and recording the outcomes
XYZ uses a single plantwide predetermined overhead rate based on MHs. It estimated the following data:
Total MHs 40,000
Total fixed MOH cost $ 344,000
Variable MOH per MH $ 3.90
Recently, Job M759 was completed. It required 60 MHs. The overhead applied to Job M759 is closest to:______ (Round your intermediate calculations to 2 decimal places.)
a. $516
b. $234
c. $750
d. $984
Answer:
See below
Explanation:
Given the above information, the overhead applied to job M759 is computed as;
= Variable MOH per MH × Required MH
Given that:
Variable MOH per MH = $3.90
MH = 60 MHs
Hence,
Overhead applied to job M759
= $3.90 × 60
= $234
Cordell Inc. experienced the following events in Year 1, its first year of operation:
Received $59,000 cash from the issue of common stock.
Performed services on account for $81,000.
Paid a $5,900 cash dividend to the stockholders.
Collected $65,000 of the accounts receivable.
Paid $59,000 cash for other operating expenses.
Performed services for $19,000 cash.
Recognized $2,900 of accrued utilities expense at the end of the year.
Required:
a. Identify the events that result in revenue or expense recognition and those which affect the statement of cash flows.
b. Based on your response to Requirement a, determine the amount of net income reported on the 2018 income statement.
Answer:
Cordell Inc.
a. Events that result in revenue or expense recognition:
Performed services on account for $81,000.
Paid $59,000 cash for other operating expenses.
Performed services for $19,000 cash
Recognized $2,900 of accrued utilities expense at the end of the year.
b. Events that affect the Statement of Cash Flows:
Received $59,000 cash from the issue of common stock.
Paid a $5,900 cash dividend to the stockholders.
Collected $65,000 of the accounts receivable.
Paid $59,000 cash for other operating expenses.
Performed services for $19,000 cash
b. The amount of the net income reported on the 2018 income statement is:
= $38,100.
Explanation:
a) Data and Analysis:
Cash $59,000 Common stock $59,000
Accounts Receivable $81,000 Service Revenue $81,000
Cash Dividend $5,900 Cash $5,900
Cash $65,000 Accounts receivable $65,000
Operating $59,000 Cash $59,000
Cash $19,000 Service Revenue $19,000
Utilities Expense $2,900 Utilities Payable $2,900
Revenue:
Accounts Receivable $81,000
Cash $19,000 $100,000
Expenses:
Operating $59,000
Utilities Expense $2,900 $61,900
Net income $38,100
Your company has used competitive bidding to select a supplier for janitorial services. Three suppliers returned acceptable bids within the allotted time frame. Supplier A Supplier B Supplier C Category Weight Rating Rating Rating Quality systems 37% 3 3 4 Financial stability 28% 2 4 3 Management experience 20% 3 2 3 Price 15% 1 4 3 picture Click here for the Excel Data File All scores on a five-point scale with 1 = poor, 5 excellent.
a. Calculate the total weighted score for each supplier. (Round your answers to 2 decimal places.) Total Weighted Score
Supplier A
Supplier B
Supplier C
b. Based on these ratings from the supplier assessment, which supplier appears to be the best?
Supplier A
Supplier B
Supplier C
Answer:
a. Total weighted score:
This is a weighted average of the supplier scores in various categories.
Supplier A
= ∑(Weight of category * rating in category)
= (37% * 3) + (28% * 2) + (20% * 3) + (15% * 1)
= 2.42
Supplier B
= (37% * 3) + (28% * 4) + (20% * 2) + (15% * 4)
= 3.23
Supplier C
= (37% * 4) + (28% * 3) + (20% * 3) + (15% * 3)
= 3.37
b. Based on the ratings, Supplier C appears to be the best.
Poe Company is considering the purchase of new equipment costing $89,500. The projected annual cash inflows are $39,700, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.
Periods Present Value of 1 at 10% Present Value of an Annuity of 1 at 10%
1 0.9091 0.9091
2 0.8264 1.7355
3 0.7513 2.4869
4 0.6830 3.1699
A. $(22,101).
B. $(36,345).
C. $22,101.
D. $54,919.
E. $36,345.
Answer: E. $36,345
Explanation:
Net present value = Present value of inflows - Cost of equipment
The inflow is an annuity as it is a constant amount so is calculated as:
Present value of inflows = Inflow * Present value interest factor of an annuity, 10%, 4 years
= 39,700 * 3.1699
= $125,845.03
Net present value = 125,845.03 - 89,500
= $36,345.03
Key Company acquires 60, 10%, 5 year, $1,000 Community bonds on January 1, 2012 for $61,250. This includes a brokerage commission of $1,250. The journal entry to record this investment includes a debit to Group of answer choices Debt Investments for $60,000. Debt Investments for $61,250. Cash for $61,250. Stock Investments for $60,000.
Answer:
Debt Investments for $61,250
Explanation:
When the investment is recorded so here the debt investment should be debited and cash should be credited for $61,250. The investment would be recorded at cost basis also the brokerage represent the investment part
So the journal entry is
Debt investment Dr $61,250
To Cash $61,250
(Being cash paid)
compare long term leadership task of the educators and short term leadership tasks for educators
Answer:
Short term leadership roles on an educator entail the responsibilities associated with day to day needs of learners.
On the other hand , long term roles have to do with planning and implementation of policies aimed at fostering positive outcomes in the learning process.
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $84,457. The bank statement indicated a balance of $127,190 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $33,310.
b. A deposit of $17,610, representing receipts of June 30, had been made too late to appear on the bank statement.
c. The bank collected $28,248 on a $26,400 note, including interest of $1,848.
d. A check for $1,100 returned with the statement had been incorrectly recorded by Pala Medical Co. as $110. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
e. A check drawn for $680 had been erroneously charged by the bank as $860.
f. Bank service charges for June amounted to $45.
Required:
a. Prepare a bank reconciliation.
b. Journalize the necessary entries.
c. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?
Answer:
Pala Medical Co.
a. Bank Reconciliation Statement as at June 30, 20Y1
Balance as per adjusted cash balance $111,670
add outstanding checks 33,310
less uncredited deposits 17,610
overdrawn check 180
Balance as per bank statement $127,190
b. Journal Entries:
c. Debit Cash $28,248
Credit Notes Receivable $26,400
Credit Interest Revenue $1,848
To record the receipt on notes receivable, including interest revenue.
d. Debit Accounts Payable $990
Credit Cash $990
To record the check in payment on account ($1,100 - $110)
f. Debit Bank service charges $45
Credit Cash $45
To record bank charges.
c. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, the amount that should be reported as cash is:
= $111,670.
Explanation:
a) Data and Calculations:
Cash account balance at June 30, 20Y1 = $84,457
Bank statement balance on June 30, 20Y1 = $127,190
Analysis of discrepancies:
a. Outstanding checks $33,310
b. Uncredited deposits $17,610
c. Cash $28,248 Note Receivable $26,400 Interest Revenue $1,848
d. Returned check $1,100 Accounts Payable $1,100 $110
e. Overdrawn check $180 $680 had been erroneously charged by the bank as $860.
f. Bank service charges for June amounted to $45
Cash Account Adjustments:
Balance at June 30, 20Y1 = $84,457
Direct credit 28,248
Dishonored check (990)
Bank charges (45)
Adjusted cash balance $111,670
The controller of Sandhill Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month Total Maintenance Costs Total Machine Hours January $2,880 3,820 February 3,273 4,364 March 3,928 6,546 April 4,632 8,619 May 3,491 5,455 June 4,844 8,730 (a1) Determine the variable-cost components using the high-low method. (Round answer to 2 decimal places e.g. 2.25.)
Answer:
Variable cost per unit= $0.4
Explanation:
Giving the following information:
Month Total Maintenance Costs Total Machine Hours
January $2,880 3,820
February 3,273 4,364
March 3,928 6,546
April 4,632 8,619
May 3,491 5,455
June 4,844 8,730
To calculate the variable component using the high-low method, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (4,844 - 2,880) / (8,730 - 3,820)
Variable cost per unit= $0.4
Your dream is about to come true! You are about to buy your first classic sports car. To do so, you have arranged to borrow $65,000 from your local credit union. The interest rate on the loan is 6.00%. To simplify the calculations, assume that you will repay your loan over the next four years by making annual payments at the end of each year. According to the loan officer at the credit union, you must answer the following questions before you can go pick up your new car.
a. How much is the annual payment on your new car loan?
b. How much of your Year 2 payment will constitute interest on your loan?
c. How much of your Year 3 payment will be used to repay principal on the loan?
d. How much will you pay in total interest to finance the purchase of your $65,000 car?
Answer:
Car Loan
a. The annual payment on the new car loan = $18,758.45.
b. Year 2 payment that is interest on the loan = $3,008.49.
c. Year 3 payment that is principal repayment = $16,694.95
d. The total interest to be paid to finance the purchase of the $65,000 car is:
= $10,033.79.
Explanation:
Data and Calculations:
Loan Amount 65000
Loan Term 4 years 0 months
Interest Rate 6
Compound Annually (APY)
Pay Back Every Year
Results:
Payment Every Year $18,758.45
Total of 4 Payments $75,033.79
Total Interest $10,033.79
Principal 87%
Interest 13%
Amortization Schedule
Beginning Balance Interest Principal Ending Balance
1 $65,000.00 $3,900.00 $14,858.45 $50,141.55
2 $50,141.55 $3,008.49 $15,749.95 $34,391.60
3 $34,391.60 $2,063.50 $16,694.95 $17,696.65
4 $17,696.65 $1,061.80 $17,696.65 -$0.00
Truck-Or-Treat specializes in leasing trucks to delivery companies. It is considering adding 25 more trucks to its available stock. Doing so will not change the risk of the company's business. The trucks depreciate over five years under the straight-line depreciation method, all the way to zero. Truck-Or-Treat believes that these newly added trucks would be able to bring the company $220,000 in annual earnings before taxes and depreciation (i.e., sales revenue minus costs of goods sold) for five years. The company is unlevered. It is in 21 percent tax rate bracket. The required annual rate of return on Truck-Or-Treat's unlevered equity is 15 percent. The risk-free rate, e.g., the Treasury bill rate, is 6 percent per year.
Required:
Calculate the maximum price that Truck-or-Treat should be willing to pay for the purchase of the new trucks if it remains an unlevered company. (In other words, what should be the "initial investment" of this unlevered truck project such that the project's NPV equals $0?
Answer:
The maximum price that Truck-or-Treat should be willing to pay for the purchase of the new trucks if it remains an unlevered company is $510,702.49.
Explanation:
Let:
x = Maximum price for the new truck = initial investment = ?
AEBTD = Annual earnings before taxes and depreciation = $220,000
T = Tax rate = 21%, or 0.21
n = Number of years = 5
Since the it is assumed that Truck-or-Treat remains an unlevered company, this implies the required annual rate of return on Truck-Or-Treat's unlevered equity of 15 percent is the relevant rate of return to use.
Therefore, we have:
r = required annual rate of return = 15%, or 0.15
D = Annual depreciation = Maximum price for the new truck / Number of useful years = x / 5 = 0.2x
P = Annual cash flow = ((AEDTD - D) * (1 - T)) + D = ((220000 - 0.2x) * (1 - 0.21)) + 0.2x = ((220000 - 0.2x) * 0.79) + 0.2x = 173,800 - 0.158x + 0.2x = 173,800 - 0.042x
Using the formula for calculating the present value (PV) of an ordinary annuity, we have:
PVP = Present value of annual cash flow = P * ((1 - (1/(1 + r))^n) / r) = (173,800 - 0.042x) * ((1 - (1/(1 + 0.15))^5) / 0.15) = (173,800 - 0.042x) * 3.3521550980114 = 582,604.56 - 0.140790514116479x
For the NPV of this unlevered truck project to be equal to $0, we must have:
x = PVP
That is:
x = 582,604.56 - 0.140790514116479x
Solving for x, we have:
x + 0.140790514116479x = 582,604.56
x(1 + 0.140790514116479) = 582,604.56
x1.140790514116479 = 582,604.56
x = 582,604.56 / 1.140790514116479 = $510,702.49
Therefore, the maximum price that Truck-or-Treat should be willing to pay for the purchase of the new trucks if it remains an unlevered company is $510,702.49.
On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $280 million. The bonds mature on September 30, 2038 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. ((FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
Determine the price of the bonds on September 30, 2018. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.)
Table values are based on: 40 5% Amount Present Value Cash Flow Interest Principal Price of bonds $ 220,000,000
Answer:
the price of the bond is $231,955,808
Explanation:
The computation of the price of the bond is shown below:
= Interest + principal
= ($280,000,000 × 8% × 6 months ÷ 12 months) × PVIFA factor at 5% for 40 years + ($280,000,000 × PVF factor at 5% for 40 years)
= 192,181,808+ $39,774,000
= $231,955,808
hence, the price of the bond is $231,955,808
Assume that a $1,00,000 par value, semiannual coupon U.S. Treasury note with five years to maturity (YTM) has a coupon rate of 5%. The yield to maturity of the bond is 11.00%. Using ths information and ignoring the other costs involved, the value of the T-note is calculated as $773,871.23
Based on this calculation and an understanding of semiannual coupon bonds, complete the following statements:
1. Assuming the interest rates remain constant, the T-notes price is expected to _____________. (Increase or Decrease) Please Explain Why.
2. The T-note described is selling at a ________________. (Premium or Discount) Please Explain Why.
3. When valuing a semiannual coupon bond, the time period N in the present value formula used to calculate the price of the bond is treated in terms of ____________ periods. (Annual, 6 month, 4 month, 12 month)
Answer:
Completing the following statements based on the calculations and an understanding of semiannual coupon bonds:
1. Assuming the interest rates remain constant, the T-notes price is expected to _____________. (Increase or Decrease).
The reason for the increase in the T-notes price is the addition of the amortization for the 6-month period of $17,563.
2. The T-note described is selling at a ________________. (Premium or Discount)
The T-note sells at a discount because the face value is greater than the price. This implies that at the end of the maturity period of 5 years, the amount that will be received or paid is $1,000,000 and not the price that was initially received or paid.
3. When valuing a semiannual coupon bond, the time period N in the present value formula used to calculate the price of the bond is treated in terms of ____________ periods. (Annual, 6 month, 4 month, 12 month)
Semiannual = 6 months (12/2).
Explanation:
a) Data anc Calculations:
Face value of semiannual coupon U.S. Treasury note = $1,000,000
T-note price = $773,871.23
Discount on the note = $226,128.77 ($1,000,000 - $773,871.23)
Maturity period = 5 years
Coupon rate = 5%
Yield rate = 11%
Semiannual coupon payment = $25,000 ($1,000,000 * 2.5%)
Semiannual interest expense = $42,563 ($773,871.23 * 5.5%)
Amortization of discount = $17,563 ($42,563 - $25,000)
Boccardi Inc., has invested in new pasta manufacturing equipment at a cost of $48,000. The equipment has an estimated useful life of eight years. Estimated annual sales and operating expenses related to the pasta equipment follow:
Annual sales $ 88,000
Labor costs (72,000)
Depreciation of equipment (6,000)
Operating income $ 10,000
Income taxes (4,000)
Net income $ 6,000
The estimated payback of the investment in the pasta equipment is:
a. 3.0 years.
b. 4.0 years.
c. 6.0 years.
d. 8.0 years.
Answer:
b. 4.0 years.
Explanation:
The computation of the estimated payback period is given below:
The annual cash inflow is
= Net Income + Depreciation of equipment
= $6000 + $6000
= $12,000
Now The payback period of this investment is
= Investment ÷ Annual cash inflow
= $48,000 ÷ $12,000
= 4 years
hence, the option b is correct and the same should be considered
Required information
[The following information applies to the questions displayed below.]
The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances:
Accounts Debits Credits
Cash $ 48,500
Accounts Receivable 32,700
Land 117,800
Accounts Payable 16,000
Notes Payable (due in 2 years) 37,000
Common Stock 107,000
Retained Earnings 39,000
Totals $ 199,000 $ 199,000
The following is a summary of the transactions for the year:
1. January 12 Provide services to customers on account, $69,400.
2. February 25 Provide services to customers for cash, $78,800.
3. March 19 Collect on accounts receivable, $46,400.
4. April 30 Issue shares of common stock in exchange for $37,000 cash.
5. June 16 Purchase supplies on account, $13,500.
6. July 7 Pay on accounts payable, $12,000.
7. September 30 Pay salaries for employee work in the current year, $71,200.
8. November 22 Pay advertising for the current year, $23,200.
9. December 30 Pay $3,600 cash dividends to stockholders.
The following information is available for the adjusting entries.
Accrued interest on the notes payable at year-end amounted to $3,200 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $2,200 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $3,000.
8-a. Prepare an income statement for the year ended December 31, 2021.
Answer:
Jackrabbit Rentals
Jackrabbit Rentals
Income Statement
For the ended December 31, 2021.
Service Revenue $148,200
Salaries Expenses $73,400
Advertising Expenses 23,200
Interest Expense 3,200
Supplies Expenses 10,500 110,300
Net income $37,900
Explanation:
a) Data and Calculations:
Beginning Balances at January 1, 2021:
Accounts Debits Credits
Cash $ 48,500
Accounts Receivable 32,700
Land 117,800
Accounts Payable $16,000
Notes Payable (due in 2 years) 37,000
Common Stock 107,000
Retained Earnings 39,000
Totals $ 199,000 $ 199,000
Transaction Analysis:
1. January 12 Accounts Receivable $69,400 Service Revenue $69,400
2. February 25 Cash, $78,800 Service Revenue $78,000
3. March 19 Cash $46,400 Accounts receivable, $46,400
4. April 30 Cash $37,000 Common stock $37,000
5. June 16 Supplies $13,500 Accounts Payable $13,500
6. July 7 Accounts payable, $12,000 Cash $12,000
7. September 30 Salaries Expenses $71,200 Cash $71,200
8. November 22 Advertising Expenses $23,200 Cash $23,200
9. December 30 Dividends $3,600 Cash $3,600
Adjusting entries:
Interest Expense $3,200 Interest Payable $3,200
Salaries Expenses $2,200 Salaries Payable $2,200
Supplies Expenses $10,500 $10,500
Service Revenue $148,200
Accounts receivable $69,400
Cash, 78,800
Salaries Expenses
Cash $71,200
Salaries Payable 2,200 73,400
Advertising Expenses 23,200
Interest Expense 3,200
Supplies Expenses 10,500
Prepare general journal entries to record the transactions below for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment:; Accounts Payable; Recording effects of K. Spade, Capital: K. Spade, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside each transactions in T-accounts transaction to identify entries. After recording the transactions, post them to T-accounts, which serves as A the general ledger for this assignment. Determine the ending balance of each T-account.
a. Kacy Spade, owner, invested $100,750 cash in the company
b. The company purchased office supplies for $1,250 cash.
c. The company purchased S10,050 of office equipment on credit.
d. The company received S15,500 cash as fees for services provided to a customer.
e. The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c
f. The company billed a customer $2,700 as fees for services provided.
g. The company paid $1,225 cash for the monthly rent.
h. The company collected S1,125 cash as partial payment for the account receivable created in transaction f.
i. Kacy Spade withdrew $10.000 cash from the company for personal use.
Answer:
a. Cash (Dr.) $100,750
Capital (Cr.) $100,750
b. Office Supplies (Dr.) $1,250
Cash (Cr.) $1,250
c. Office equipment (Dr.) $10,050
Accounts Payable (Cr.) $10,050
d. Cash (Dr.) $15,500
Service revenue (Cr.) $15,500
e. Accounts Payable (Dr.) $10,050
Cash (Cr.) $10,050
f. Accounts Receivable (Dr.) $2,700
Service Revenue (Cr.) $2,700
g. Rent Expense (Dr.) $1,225
Cash (Cr.) $1,225
h. Cash (Dr.) $1,125
Accounts Receivable (Cr.) $1,125
i. Capital / Cash (Dr.) $10,000
Drawings (Cr.) $10,000
Explanation:
Trial Balance :
Debits :
Cash $104,850
Accounts Receivable $1,575
Office supplies $1,250
Office equipment $10,050
Rent expense $1,225
Total $118,950
Credits :
Accounts Payable 0
Service Revenue $18,200
Capital $90,750
Drawings $10,000
Total $118,950
Imagine you own a food truck that sells gourmet vegan tacos. You rely on many suppliers, all of which also supply their goods to your competitors (other food trucks in the area). For some items, like paper plates and napkins, you have several suppliers. For other items, like extra-firm tofu, you rely on a single supplier. What is an industry analysis most likely to suggest?
a) The power of suppliers is relatively high for some items and relatively low for others. You should find other suppliers of extra-firm tofu so that you have a more diverse supply
b) The power of suppliers is high overall, because you have so many of them You need to consolidate to fewer suppliers, so you have more bargaining power
c) The power of suppliers is relatively low since you work with so many of them. However, you should have your tofu supplier also supply your paper plates and napkins so that you have a more diverse supply of these paper products
d) None of the above Ос.
Answer:
A
Explanation:
Because there are plenty of suppliers for some goods, the food truck owner is more powerful in this case than the suppliers. Here the power of suppliers is low
For the other goods with only a single supplier. the supplier has more powerful than the taco seller. here the power of supplier is high. If the supplier increases price, the taco seller would most likely have an inelastic demand and would be at the mercy of the supplier
thus, the power of suppliers is relatively high for some items and relatively low for others.
why is Denel seen as a monopoly? discuss for 20
Answer:
Absence of the competition decreases production and that increases prices.
Explanation:
Hope this helps
Discuss FOUR ways in which SAA could benefit from proper long-term planning.
Answer:
Explanation:
Planning is a core and fundamental step which should be done before embarking in a process, business or task. It could be used to project a short or long term engagement or task.
The benefits of long term planning could include :
Business having a long term plan shows a proactive sense of approach, that is it shows that the business has a blue print, a target and a defined goal which is being laid down in sequence, this ensures that they will have very few chances of making rash decisions due to market fluctuation or growth as d they are less proned to having a reactive agenda.
Similarly, With a laid down long term plan, this shows that there is a guide, a path, a set and defined target which the company aims to achieve with patience and tact. Thus ensures that the business has a well defined direction.
Also, It improves efficiency, the fact that developments to be made at each point or time has long been defined, then there is a dequate preparedness towards such target which in turn improves.
Long term strategic planning will ultimately lead to company's growth and drive profit due to sustained existence in the market and well guided and structure long term planning , leading to increased popularity and revenue drive.
