Answer:
$2,969.22
Explanation:
Equal principal repayment=$2,500/5
Equal principal repayment=$500
The fact that Jeremy's son repaid $517.50 at the end of the 5th year, means that the interest paid in year 5 is the difference between the amount repaid($517.50) and the equal principal repayment($500)
interest paid in year 5=$517.50-$500=$17.50
That also means that the balance outstanding at the beginning of year 5( at the end of year 4) is $500, which effectively means that the interest rate on the loan is the determined thus:
interest paid in year 5=balance at the end of year 4*interest rate
$17.50=$500*interest rate
interest rate=$17.50/$500
interest rate=3.50%
The schedule of repayment is attached
The first repayment would be invested for 4 years, since it is occurring at the end of year 1( in years 2-5), the year 2 repayment would be invested for only 3 years and so on.
FV value of reinvestment of repayment=$587.50*(1+3.50%)^4+$570.00*(1+3.5%)^3+$552.50*(1+3.5%)^2+$535.00*(1+3.5%)^1+$517.50
FV value of reinvestment of repayment=$2,969.22
Answer:
The amount the fund accumulated to by the end of the 5 years is $2,648.23.
Explanation:
Step 1: Calculation of interest rate
The interest rate can be calculated using the following RATE function in Excel:
Interest rate = RATE(nper,pmt,-pv,fv,type) .............(1)
Where;
nper = number of periods = number of years = 5
pmt = Fixed annual payments = Amount repaid by his son at the end of the 5th year = $517.50 = 517.50
pv = present value = Loan amount = $2,500 = 2500
fv = future value = desired cash balance after last payment = 0
type = when payments are due (0 = end of period. 1 = beginning of period) = 0
Substituting the values into equation (1), we have:
Interest rate RATE(5,517.50,-2500,0,0) .................. (2)
Inputting =RATE(5,517.50,-2500,0,0) into a cell in an excel sheet (Note: as done in the attached excel file), we have:
Interest rate = 1.16%
Step 2: Calculation of the amount the fund accumulated to by the end of the 5 years
This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:
FV = M * (((1 + r)^n - 1) / r) ................................. (3)
Where,
FV = Future value = The amount the fund accumulated to by the end of the 5 years =
M = Fixed annual payments = $517.50
r = Interest rate = 1.16%, or 0.0116
n = number of years = 5
Substituting the values into equation (3), we have:
FV = $517.50 * (((1 + 0.0116)^5 - 1) / 0.0116)
FV = $517.50 * 5.11735342258641
FV = $2,648.23
Therefore, the amount the fund accumulated to by the end of the 5 years is $2,648.23.
There are several attempts to explain Marvels Success via competetive strategy but they fall flat: competitve strategy, with this specific case neither predicts nor explains the outcome why?
Answer:
It has been a well known fact that competitive strategy creates a unique value for a target set of movie customers. However, it is not able to predict nor explain the outcome due to the fact that Marvel only focused on trying to compete to be the best in comic and superhero films which thus resulted in basically a case whereby there was a competition in which one participant wins totally and another loses without gaining any objectives and thus they were not able to win.
Explanation:
This question is taken from a book titled "The Marvel Way: Restoring a Blue Ocean". It was written by W. Chan Kim, Renee Mauborgne, Michael Olenick. The central theme of the book was about one of the greatest turnarounds in modern business history by the then Marvel CEO with the name Peter Cuneo who was responsible for turning the business around and succeeded in launching a blue ocean.
From the question, neither predicts nor explains the outcome because;
It has been a well known fact that competitive strategy creates a unique value for a target set of movie customers. However, it is not able to predict nor explain the outcome due to the fact that Marvel only focused on trying to compete to be the best in comic and superhero films which thus resulted in basically a case whereby there was a competition in which one participant wins totally and another loses without gaining any objectives and thus they were not able to win.
difference between white collar job and blue collar job?
Answer:
Kindly check explanation
Explanation:
White and blue collar jobs are usually differentiated in terms of the job setting or environment in which each group of job is undertaken. The white collar jobs are job categories whereby staffs often work in offices such that most of the duties performed are on computers or writing. This may include ; banking, clerical and administrative jobs and other related job fields.
Blue collar jobs in the other hand could be described as being less formal as it Involves most of the business or trade related job types whereby individuals could be seen undergoing laborious jobs. This jobs may be skilled or unskilled and the job types include cost uctjoj workers, artisans, mechanics, electctricians and so on.
Blue collar jobs cannot keep the sort of tidy outlook white collar job do keep due to the nature of their work. Hence, this palys a role in the name given as blue clothes are often more accommodation of dirt or stain than white garments.
Chelsea’s manager sent her an email asking to meet, for an unspecified reason, the following Friday. Upon reading this email, Chelsea remembered a situation six months prior when her manager sent such as email to another team member. During that meeting, the team member was laid off from the organization. Based on this recollection, Chelsea is extremely worried about the upcoming meeting with her boss. Which type of bias is being represented? Multiple Choice representative bias recency bias overconfidence Bias framing bias confirmation bias
Answer: Representative bias
Explanation:
Representative bias occurs when two decisions are wrongly compared by a decision maker due to the fact that there's a perceived similarity between the cases.
Regarding the question, since a similar situation led to the laying off of an employee, Chelsea is already worried that she'll be laid off as well even though this may not be the case. In such cases, due to the similarity, this confuses people's thinking.
When the similarity of objects or events confuses people’s thinking about the possibility of an outcome, it is called representative bias. Thus, Option A. is the correct answer.
What is representative bias?Representative bias occurs when two decisions are incorrectly compared to the decision-maker because there are obvious similarities between the cases.
In terms of the question, as the same situation has led to the dismissal of the employee, Chelsea is already worried that he too will be retrenched even though this does not happen.
In such cases, because of similarities in the two events, this confuses people's thinking and lets them assume a particular situation.
Thus, Option A. Representative Bias is the correct answer.
To learn more about representative bias, refer to the link:
https://brainly.com/question/24053333
When the economy is in short-run equilibrium, Group of answer choices there are increases in inventory. people want to buy more than will be produced. there are decreases in inventory. total expenditures equal total production.
Answer:
total expenditures equal total production.
Explanation:
In the case when the economy is in the short-run equilibrium that means the total expenditures should be equivalent to the total production. In other words, we can say that the expenditure that can be incurred should be equal to the production
Hence, the last option is correct
Saunders and Flimsy Partnership paid dividends of $0.27 and $0.15 per share last year. If yesterday's closing price was $12.27, what is the current yield on the stock
Answer:
the current yield on the stock is 3.42%
Explanation:
the computation of the current yield on the stock is shown below:
Current yield = Annual dividends paid ÷ Current market closing price
= ($0.27 + $0.15) ÷ $12.27
= $0.42 ÷ $12.27
= 3.42%
hence, the current yield on the stock is 3.42%
we simply applied the above formula to determine the current yield on the stock
Green Corporation's assets are valued at $1,278,000 after payment of all corporate debts, except for $191,700 of taxes payable on net gains it recognized on the liquidation. Bruno, an individual and the sole shareholder of Green, has a basis of $67,095 in his stock.
Required:
Compute the gain or loss recognized by Bruno on the liquidation of Green Corporation.
Answer:
$1,019,205 gain
Explanation:
Computation of gain or loss recognized by Bruno on the liquidation of Green Corporation:
Amount ($)
Market value of assets $1,278,000
Less: Tax liability ($191,700)
Amount realized $1,086,300
($1,278,000-$191,700)
Less: Stock Basis ($67,095)
Gain Recognized $1,019,205
($1,086,300-$67,095)
Therefore, gain of $1,019,205 is recognized by Bruno on the liquidation of Green Corporation.
Recommend specific tools and detailed strategies to help Booktix meet their goals & suggest which platform would be the best for them.
Answer: Hello your question has some missing details
Their goals are as follows:
• Create brand and product awareness
• Engage with users
• Increase website traffic and conversions
answer :
Tools : Qwaya , Ads A/B Testing , AD roll
" A social media platform " can be used to achieve these goals
Explanation:
Booktix goals been
to Create brand and product awareness , Engage with users and Increase website traffic and conversions
some of The best tools that they can use are:
Qwaya : This is an all in one software that can help Brook tix achieve all their goals in one place
Ads A/B Testing; this tool is used to test for the results of adverts been run. the main purpose of this tool is to help you know where to channel your resource for future adverts .
AD roll ; A tool used for the purpose of retargeting potential and existing clients
The platform I would recommend for Booktix is " A social media platform "
The nominal interest rate is 6%. Expected inflation is 2%. Actual inflation is 1%. Calculate the ex-ante and ex-post real interest rates. Who benefits from lower actual inflation
Answer:
1. Ex-ante real interest rate is:
= 4%
2. Ex-post real interest rate is:
= 5%
3. The LENDER benefits from lower actual inflation. By this, the Ex-ante real interest rate is lower than the Ex-post real interest rate at which the borrower will repay the loan.
Explanation:
a) Data and Calculations:
Nominal interest = 6%
Expected inflation = 2%
Actual inflation = 1%
Ex-ante real interest rate = 4% (6% - 2%)
Ex-post real interest rate = 5% (6% - 1%)
b) The implication is that inflation is lower than expected, and this benefits the lender at the expense of the borrower. The opposite is applicable when the inflation is higher than expected, and the result benefits the borrower at the expense of the lender.
In a continuous review inventory system, the lead time for door knobs is weeks. The standard deviation of demand during the lead time is units. The desired cycle-service level is percent. The supplier of door knobs streamlined its operations and now quotes a 1 week lead time. Refer to the standard normal tableLOADING... for z-values. How much can the safety stock be reduced without reducing the percent cycle-service level? The safety stock can be reduced by nothing door knobs. (Enter your response rounded to the nearest whole number.)
Answer:
The answer is "116 doorknobs".
Explanation:
The standard deviation of the demand before the (four weeks) protection intervals = [tex]\sigma-d \times (\sqrt{L}) = 100 \ units\\[/tex]
The desired cycle service level is [tex]99\%[/tex].Therefore, [tex]z = 2.33[/tex]
The safety stocks for the four-weeks protecting interval are:
Safety stock [tex]= z\times [ \sigma-d \times (\sqrt{L})][/tex]
[tex]= 2.33 \times 100 \\\\= 233\ door\ knobs[/tex]
The safety stocks require for the one-week protection interval are: [tex]\sigma-dLT = \sigma-dt \times (\sqrt{L}) = \sigma-dt \times (\sqrt{4}) = 100\ door\ knobs\\\\\sigma-d = \frac{100}{(\sqrt{4})} = \frac{100}{2} = 50 \ door\ knobs\\\\[/tex]
Safety stock [tex]= z\times \sigma-dt = 2.33 \times 50 = 116.5 \ or\ 117 \ door\ knobs\\\\[/tex]
Safety stock reduction[tex]= 233 -117 = 116 \ door\ knobs[/tex]
An individual has $30,000 invested in a stock with a beta of 0.7 and another $70,000 invested in a stock with a beta of 1.2. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.
Answer:
1.05
Explanation:
Beta measures systematic risk. Systemic risk are risk that are inherent in the economy. They cannot be diversified away.
The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio
weighted beta of a stock = percentage of the stock in the portfolio x beta of the stock
total value of the portfolio = $30,000 + $70,000 = $100,000
percentage of stock A in the portfolio = $30,000 / $100,000 = 0.30
percentage of stock B in the portfolio = $70,000 / $100,000 = 0.70
weighted beta of stock A = 0.30 x 0.7 = 0.21
weighted beta of stock B = 0.70 x 1.2 = 0.84
Portfolio beta = 0.21 + 0.84 = 1.05
________ is the process of coordinating all messages, media and activities used by an organization to communicate with the market across different communication methods
Answer:
integrated Marketing communication
Explanation:
This method is used by firms and companies to brand their communications and also in their coordination. It makes sure that all the various forms of communications are well linked together. This would create a unified communication channel for the consumer during their interactions with the enterprise. the aspects it integrates includes, advertising, public relations, social media and promotion of sales.
Sheffield Corp. sells $2600 of merchandise on account to Concord Company with credit terms of 2/11, n/30. If Concord Company remits a check taking advantage of the discount offered, what is the amount of Concord Company's check
Answer:
the amount of the concord company check is $2,548
Explanation:
The computation of the amount of the concord company check is shown below:
= Sale value of the merchandise - discount
= $2,600 - ($2,600 × 2%)
= $2,600 - $52
= $2,548
Hence, the amount of the concord company check is $2,548
The same should be considered
Defined as a loss in value to improvements from any cause, depreciation is generally divided into three categories. The loss of value due to the normal wear and tear on a property is called
Which of the following statements about striving to reduce labor costs per pair produced at each of the company's plants is true?
a. A company cannot achieve labor costs per pair produced that are close to the lowest in the industry (in those geographic regions where it has plants) unless its annual total compensation of plant workers is below the average annual total compensation paid by all companies with plants in these same regions.
b. All companies, regardless of the strategy being employed, should pursue actions to manage employee compensation and labor productivity in a manner that results in labor costs per pair produced that are equal to (or very close to) the industry-low in each region where the company has plants.
c. It is very difficult for a company producing branded footwear with a high S/Q rating to achieve labor costs per pair produced that are below the industry average in each geographic region where the company has plants.
d. A company pursuing a low-cost provider strategy is better able to pursue actions aimed at achieving low labor costs per pair produced in each of its plants (as compared to the labor costs of companies with plants in the same regions) than is a company pursuing a differentiation strategy.
e. It is more cost effective for a company to compensate plant workers at levels that are close to the highest in the industry in each geographic region where it has plants than it is for a company to pursue actions to keep labor costs per pair produced below the industry average in each geographic region where it has plants.
Answer:
b. All companies, regardless of the strategy being employed, should pursue actions to manage employee compensation and labor productivity in a manner that results in labor costs per pair produced that are equal to (or very close to) the industry-low in each region where the company has plants.
Explanation:
The less labor cost of production per pair could be attained in following two ways
1. The productivity level is icnreased
2. The compensation should be managed and it provides the combination of both fixed and variable. Also it pays the high compensation but at the more productivity rate due to which the labor cost per pair would fall
So as per the given situation, the option b is correct
Scenario 34-1. Take the following information as given for a small, imaginary economy: When income is $10,000, consumption spending is $6,500. When income is $11,000, consumption spending is $7,250. Refer to Scenario 34-1. The marginal propensity to consume (MPC) for this economy is
Answer:
0.75
Explanation:
Marginal Propensity to Consume (MPC) is the change in consumption due to change in income
Change in consumption = $7,250 - $6,500 = $750
Change in income = $11,000 - $10,000 = $1,000
MPC = Change in consumption / Change in income
MPC = 750 / 100
MPC = 0.75
Stock A has an expected return of 8%, stock B has an expected return of 2%, and the return on Treasury-Bills is 4%. You buy $200 of A, short $100 of B and invest the short proceeds in Treasury Bills. What is the expected return of your portfolio?
A. 8%
B. 9%
C. 10%
D. 11%
Answer:
The expected return of the portfolio is:
= C. 10%
Explanation:
a) Data and Calculations:
Expected return of Stock A = 8%
Expected return of Stock B = 2%
Return of Treasury = 4%
Cost of Stock A = $200
Sale of Stock B = $100
Investment in Treasury Bills = $100
Stock A Stock B Treasury Bills Portfolio
Expected return 8% 2%
Weight of stock 0.667 0.333
Return 0.0534 0.0067 0.04 0.1001
Portfolio return = 10%
Mary has a few specific items she would like to leave to her sister, Ann. She would like to leave the balance of her estate to her brother, Tom. Which type of provision should be used in her will to provide for the disposition to Tom
Answer:
The residuary clause
Explanation: As Mary would like to leave the balance of her estate to her brother tom this will fall under the residuary clause.
Which of the following characteristics relate to "dollarize"? a. When a country that is not the United States uses the U.S. dollar as its currency. b. The market in which people buy one currency while using another currency. c. When a currency is worth less in terms of other currencies. d. An investment in another country that is purely financial and doesn’t involve any management responsibility.
Answer:
When a country that is not the United States uses the U.S. dollar as its currency.
Explanation:
A country is said to "dollarize" when such a country allows the use of the dollar alongside or instead of its currency.
A country may dollarize in order to increase ease of doing businesses or as a means of facilitating tourism and boosting the country's tourism potential.
Dollarization may be official and have the approval of the leadership of a country. This occurs when a country ceases to use her domestic currency and begins to use only foreign currency.
when goods are sold to a customer by entity and customer promise to pay amount at certain future time period that is know as
Answer:
Promissory agreement.
Explanation:
A promissory agreement can be defined as an evidence of a debt and as such involves the use of a legal financial tool such as a promissory note as a written promise to declare that a party (borrower) would pay another (lender) at a specific period of time.
Thus, when goods are sold to a customer by a business entity and the customer promises to pay an amount of money at a certain future time period it is known as a promissory agreement.
A promissory note can be defined as a signed document that contains a written promise by a customer to pay a specific amount of money to an individual or business firm, on demand or at a certain future time period, for the goods or services purchased.
A Type I subsequent event refers to _______. an event that occurred after the date of the financial statements an event that is typified by debit entries to contra-revenue accounts a contingent event, that may or may not occur an event that most likely occurred before the date of the financial statements
Answer:
that most likely occurred before the date of the financial statements
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB).
Basically, financial statements are formally written records of the business and financial activities of a business entity or organization. The four (4) main types of financial statements are; cash-flow statement, balance sheet, statement of changes in equity and income statement.
Furthermore, there are two (2) main methods used in financial accounting for analyzing financial statements and these are;
I. Vertical analysis.
II. Horizontal analysis.
A Type I subsequent event refers to an event that most likely occurred before the date of the financial statements. Thus, it must have been reported or posted before the date of publishing a financial statement.
On the other hand, any event that is most likely to occur after the date a financial statement is issued, is referred to as a Type II subsequent.
In (Noon) Company, direct materials are added at the beginning of the production process. Conversion costs are incurred evenly throughout the production process. Before inspection, some units are spoiled due to undetectable materials defects. Inspection occurs when units are 60% converted. Spoiled units generally constitute 6% of the good units. Data for December 2019 are as follows: WIP, beginning inventory 12/1/2019 Direct materials 22,500 units (100% complete) Conversion costs (55% complete) Started during December 76,700 units Completed and transferred out 12/31/2019 72,500 units WIP, ending inventory 12/31/2019 18,400 units Direct materials (100% complete) Conversion costs (65% complete) What is the number of normal spoilage units?
Answer:
Following are the responses to the given question:
Explanation:
Statement In December the computation of typical spoiling units shall be shown:
Particulars Units
WIP Inventory Start on 12 January 2019 22,500
Departments began in December 76,700
Total stock available for both the month 99,200
Less: transferred units on 31 December 2019 72,500
Inventory of Less: WIP on 31 December 2019 18,400
Inventory of Balance (Normal Spoilage units) 8,300
Wolfe Company had the following beginning inventory and purchases during 2018 Date Transaction Number of units Unit Cost 1/1 Beginning inventory 2,000 $22.00 4/12 Purchase No. 1 2,300 $26.00 7/11 Purchase No. 2 800 $28.00 10/5 Purchase No. 3 1,250 $30.00 Wolfe sold 4,100 units Determine the amount of ending inventory and cost of goods sold using the following methods: Method Ending inventory Cost of Goods Sold LIFO FIFO Weighted average
Answer:
Wolfe Company
The amount of:
LIFO FIFO Weighted Average
Ending inventory $50,500 $65,100 $58,005
Cost of goods sold $113,200 $98,600 $105,698
Explanation:
a) Data and Calculations:
Date Transaction Number of units Unit Cost Cost Value
1/1 Beginning inventory 2,000 $22.00 $44,000
4/12 Purchase No. 1 2,300 $26.00 59,800
7/11 Purchase No. 2 800 $28.00 22,400
10/5 Purchase No. 3 1,250 $30.00 37,500
Total inventory available 6,350 $163,700
Wolfe sold 4,100
Ending Inventory 2,250
LIFO
Ending Inventory = $50,500 (250 * $26 + 2,000 * $22)
Cost of goods sold:
4/12 Purchase No. 1 2,050 $26.00 53,300
7/11 Purchase No. 2 800 $28.00 22,400
10/5 Purchase No. 3 1,250 $30.00 37,500
Total cost of goods sold = 4,100 $113,200
FIFO:
Ending Inventory = Cost of goods available for sale - Cost of goods sold
= $65,100 ($163,700 - $98,600)
Cost of goods sold:
1/1 Beginning inventory 2,000 $22.00 $44,000
4/12 Purchase No. 1 2,100 $26.00 54,600
Total cost of goods sold = $98,600
Weighted average:
Weighted average cost = $25.78 ($163,700/6,350)
Ending inventory = $58,005 (2,250 * $25.78)
Cost of goods sold = $105,698 (4,100 * $25.78)
I’ll give 20 points to the best answer !!!
Answer:
The answer is "Slide Master View"
Explanation:
Slide Master Look is indeed the name of this feature. This can help you keep track of all the presentations you've created and change those ones that require work or even more information. The additional feature is the ability to change the presentation's actual picture, as it may be extended to all slides. Slide master view also allows you to change the text format & placeholders.
Suppose the United States and Japan have the following production possibility tables:
Japan United States
Bolts of Cloth Tons of Wheat Bolts of Cloth Tons of Wheat
1,000 0 500 0
800 100 400 200
600 200 300 400
400 300 200 600
200 400 100 800
0 500 0 1,000
a. Draw each country’s production possibility curve.
b. In whatgooddoesthe United States have a comparative advantage?
c. Is there a possible trade that benefits both countries?
d. Draw their combinedproduction possibility curve. L04
Answer:
a) attached below
b) Wheat production
c) Yes there is a possible trade that benefits both countries
d) attached below
Explanation:
Opportunity cost can be expressed as
= Value/cost of alternative / value/cost of chosen alternative
a) Draw each country's production possibility curve
attached below
b) United state have a comparative advantage in Wheat production because of lower opportunity cost
c) The possible trade that would benefit both countries is when both countries trade on goods that they have lower comparative opportunity cost
i.e. Japan producing just Bolt cloths while United states produce Wheat alone
d) combined production possibility curve
attached below
During January, Dream House Builders, Inc. incurred $550 of actual indirect materials costs, as supported by materials requisitions.
Required:
Draw the journal entry.
Answer and Explanation:
The journal entry is given below:
Factory overhead Dr $550
To Raw material inventory $550
(being the actual indirect material cost is recorded)
Here the factory overhead is debited as it increased the expense while the raw material inventory is credited as it decreased the assets
Suppose that the demand in period 1 was 7 units and the demand in period 2 was 9 units. Assume that the forecast for period 1 was for 5 units. If the firm uses exponential smoothing with an alpha value of .20, what should be the forecast for period 3
Answer:
6.12units
Explanation:
Calculation to determine what should be the forecast for period 3
First step is to calculate the Forecast for period 2 using this formula
Forecast for period 2 = Alpha * Actual demand for period 1 + (1-alpha) * Forecast for period 1
Let plug in the
Forecast for period 2= 0.2 * 7+ (1-0.2)* 5
Forecast for period 2= 5.4 units
Now let determine the Forecast for period 3
Using this formula
Forecast for period 3 = Alpha* Actual demand for period 2 + (1- alpha) * Forecast for period 2
Let plug in the formula
Forecast for period 3= 0.2 * 9 + (1-0.2)* 5.4
Forecast for period 3=6.12units
Therefore what should be the forecast for period 3 is 6.12 units
Novak Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January 1, 2020, Novak entered into a 3-year service contract with Walleye Tech. Walleye promises to pay $10,900 at the beginning of each year, which at contract inception is the standalone selling price for these services. At the end of the second year, the contract is modified and the fee for the third year of services is reduced to $8,700. In addition, Walleye agrees to pay an additional $21,800 at the beginning of the third year to cover the contract for 3 additional years (i.e., 4 years remain after the modification). The extended contract services are similar to those provided in the first 2 years of the contract.
Required:
a. Prepare the journal entries for Tyler in 2019 and 2020 related to this service contract.
b. Prepare the journal entries for Tyler in 2020 related to the modified service contract, assuming a prospective approach.
c. Repeat the requirements for part (b), assuming Tyler and Walleye agree on a revised set of services (fewer bookkeeping services but more tax services) in the extended contract period and the modification results in a separate performance obligation
Answer: See explanation
Explanation:
a. 1 jan 2020
Debit Cash $10,900
Credit Unearned revenue $10,900
31st dec 2020
Debit Unearned revenue $10,900
Credit Service revenue $10,900
1 jan 2020
Debit Cash $10,900
Credit Unearned revenue $10,900
31st dec 2020
Debit Unearned revenue $10,900
Credit Service revenue $10,900
b. 1 Jan 2021
Debit Cash $30500
Credit Unearned revenue $30500
31st dec 2020
Debit Unearned revenue $7,625
Credit Service revenue $7,625 ($30500/4)
c. 1 Jan 2020
Debit Cash $30500
Credit Unearned revenue $30500
31st Dec 2020
Debit Unearned revenue $8,700
Credit Service revenue $8,700
Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 59,000 units of each product. Sales and costs for each product follow. Product T Product O Sales $ 997,100 $ 997,100 Variable costs 697,970 99,710 Contribution margin 299,130 897,390 Fixed costs 150,130 748,390 Income before taxes 149,000 149,000 Income taxes (30% rate) 44,700 44,700 Net income $ 104,300 $ 104,300 Required: 1. Compute the break-even point in dollar sales for each product
Answer:
Explanation:
Product T
Contribution Margin Ratio=Contribution Margin / Sales
Contribution margin ratio= 299,130.00/ 997,100
Contribution margin ratio=30.00%
Break-Even Dollars=
Fixed costs/Contribution margin ratio Break-even dollars=$150,130/30%
Break-even dollars=$500,433
Product O
Contribution Margin Ratio=Contribution Margin / Sales
Contribution margin ratio= 897,390/ 997,100
Contribution margin ratio= 90.00%
Break-Even Dollars=Fixed costs/ Contribution margin ratio
Break-Even Dollars=$748,390/90% Break-Even Dollars=831,544
Aurillo Equipment Company (AEC) projected that its ROE for next year would be just 6
percent. However, the financial staff has determined that the firm can increase its ROE by refinancing some high interest bonds currently outstanding. The firm’s total debt will remain at $200,000 and the debt ratio will hold constant at 80 percent, but the interest rate on the refinanced debt will be 10 percent. The rate on the old debt is 14 percent. Refinancing will not affect sales, which are projected to be $300,000. EBIT will be 11 percent of sales and the firm’s tax rate is 40 percent. If AEC refinances its high interest bonds, what will be its projected new ROE?
Answer:
Aurillo Equipment Company (AEC)
If AEC refinances its high interest bonds, its projected new ROE will be:
= 15.6%
Explanation:
a) Data and Calculations:
Total debt = $200,000
Debt ratio = 80%
Total assets = $250,000 ($200,000/80%)
Equity = $50,000 ($250,000 - $200,000)
Old interest rate on old debt = 14%
New interest rate on refinanced debt = 10%
Total interest = $20,000 ($200,000 * 10%)
Sales revenue = $300,000
EBIT = $33,000
Interest 20,000
Before tax $13,000
Tax = 5,200 (40% of $13,000)
Net income $7,800
ROE = Net income/Equity * 100
= ($7,800/$50,000 * 100)
= 15.6%
The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified.
A. True
B. False
Answer:
A. True
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
Basically, financial statements are formally written records of the business and financial activities of a business entity or organization.
There are four (4) main types of financial statements and these are;
1. Cash flow statement: it contains financial information about operating, financial and investing activities.
2. Statement of changes in equity: it contains financial information about profits or loss, dividends, etc.
3. Income statement: it contains financial information about the income and expenses of an organization.
An income statement comprises of the financial information about the income and expenses of an organization over a specific period of time.
4. Balance sheet: it contains financial information about assets, liability, and equity.
Furthermore, the amount of a cash dividend liability is expected to be recorded on the particular date of record because it is this date that identify the persons or entities who receives the dividend.
