Answer:
The bonds were sold at a premium, with annual interest expenses less than $18,000
Explanation:
r = 4% per annum = 4%*6/12 = 2%
n = 5 years * 2 = 10
Present value of annuity factor = [1 - (1+r)^(-n)] / r
Present value of annuity = [1 - (1.02)^(-10)] / 0.02
Present value of annuity = 8.982585
Interest payment = $300,000*6%*6/12
Interest payment = $9,000
Present value factor = 1/(1+r)^n
Present value factor = 1 / (1.02)^10
Present value factor = 0.8203483
Face value = $300,000
Selling value of bond = [8.982585*9000] + [0.8203483*300,000]
Selling value of = 80,843.265 + 246,104.49
Selling value of = 326,948. (Amount that bond are sold for is greater than 300,000 i.e at a premium).
Coupon rate payment = $300,000*6%
Coupon rate payment = $18,000
Laurel, Inc., and Hardy Corp. both have 7.3 percent coupon bonds outstanding, with semiannual interest payments, and both are currently priced at the par value of $1,000. The Laurel, Inc., bond has 4 years to maturity, whereas the Hardy Corp. bond has 23 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds
Answer:
Use a financial calculator to find out the price of both bonds after the drop in interest rate.
Laurel Bond
When a bond is trading at par, it means that the interest rate is equal to the coupon rate.
Semiannual Coupon = (7.3% * 1,000) / 2 = $36.50
Terms till maturity = 4 * 2 = 8 semi annual periods
Interest rate = (7.3% + 2%) / 2 = 4.65%
Future value = $1,000 par value
Price will come out as $993.20
Percentage change = (993.20 - 1,000) / 1,000 * 100%
= -0.68%
Hardy Bond
Semiannual Coupon = (7.3% * 1,000) / 2 = $36.50
Terms till maturity = 23 * 2 = 46 semi annual periods
Interest rate = (7.3% + 2%) / 2 = 4.65%
Future value = $1,000 par value
Price = $811.53
Percentage change = (811.53 - 1,000) / 1,000
= -18.85%
When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current-period production is the
Answer: the weighted average method
Explanation:
When computing the equivalent units of production, the weighted average method can be used in the combination of partially completed units in the beginning inventory with the current-period production.
In Weighted Average Cost method, a weighted average is used in the determination of the amount which gives into the inventory and the cost of goods sold.
g if you deposit $2,000 into an account and it earns 6% interest, how much will you have in 11 years
Answer:
Amount earned = $3320
Explanation:
Given the following data;
Principal, P = $2,000
Interest rate, R = 6%
Time, T = 11 years
To find the simple interest;
S.I = PRT/100
S.I = (2000*6*11)/100
S.I = 20*6*11
S.I = $1320
Amount earned = Principal + S.I
Amount earned = 2000 + 1320
Amount earned = $3320
South Carolina Corporation has one temporary difference at the end of 2014 that will reverse and cause taxable amounts of $55,000 in 2015, $60,000 in 2016, and $65,000 in 2017. South Carolina's pretax financial income for 2014 is $300,000, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2014.Instructions(a) Compute taxable income and income taxes payable for 2014.(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2014.(c) Prepare the income tax expense section of the income statement for 2014, beginning with the line ?Income before income taxes.?
Answer:
Following are the solution to the given question:
Explanation:
For point a:
Calculating taxable income tax payable in accordance with the following figures:
[tex]Particulars \ \ \ \ \ \ \ \ \ 2017 \ \ \ \ \ \ \ \ \ 2016 \ \ \ \ \ \ \ \ \ 2015 \ \ \ \ \ \ \ \ \ 2014\\\\\text{Pre- tax financial income} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 300,000\\\\\text{Future taxable amounts}\\\\2014 =-(65 000+60 000+55,000) \ \ \ \ \ 65,000 \ \ \ \ \ \ 60,000 \ \ \ \ \ \ \ 55,000 \ \ \ \ \ -180,000\\\\\text{Taxable income for 2014} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 120,000[/tex][tex]\text{Income tax payable} \\\\ (120,000 \times 30 \%) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 36,000\\\\[/tex]
For point b:
Following are the journal:
[tex]Date \ \ \ \ \ \ \text{Account Titles and Explanation} \ \ \ \ \ \ \ \ \ \ \ Dr \ \ \ \ \ \ \ \ \ \ \ Cr\\\\[/tex]
[tex]\text{Income tax expense} \ (36,000 + 90,000)\ \ \ \ \ \ 90,000 \\\\[/tex]
[tex]\text{Income tax payable} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 36,000\\\[/tex]
Deferred tax liability [tex]\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 54,000\\\\[/tex]
[tex]\text{(To record the income tax expense)}\\\\[/tex]
Calculating the deferred tax liability:
[tex]Particulars \ \ \ \ \ \ \ \ \ \ \ \ 2017 \ \ \ \ \ \ \ \ \ \ \ 2016 \ \ \ \ \ \ \ \ \ \ \ 2015 \ \ \ \ \ \ \ \ \ \ \ \ Total\\\\\text{Future taxable anlounts} \ \ \ \ \ \ \ 65,00 \ \ \ \ \ \ \ 60,000 \ \ \ \ \ \ \ 55,000 \ \ \ \ \ \ \ 180,000\\\\\text{Tax rate} \ \ \ \ \ \ \ \ \ 30\% \ \ \ \ \ \ \ \ \ \ 30\% \ \ \ \ \ \ \ \ \ \ 30\% \\\\[/tex]
Deferred tax liability [tex]\ \ \ \ \ \ \ \ \ 192500 \ \ \ \ \ \ \ \ \ \ 18,000 \ \ \ \ \ \ \ \ \ 16,500 \ \ \ \ \ \ \ \ \ \ 54,000[/tex]
For point c:
Following are the preparation of the income tax section for the income statement session 2014:
[tex]\text{Income before income taxes} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 300,000\\\\ \text{Income tax expense} \\\\[/tex]
[tex]Current \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 36,000\\\\[/tex]
Defensed [tex]\ 54,000\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 90,000\\\\[/tex]
[tex]Net\ \ income \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 210,000[/tex]
Yum Foods recently merged with Clean Plates. Which of the following activities should HR perform after the integration process?
A) It should assess the risks involved with the merger.
B) It should retain key talent.
C) It should identify and establish a new culture.
D) It should conduct due diligence.
The HR should identify and establish a new culture after the integration process.
Merging of business establishments or companies mean the coming together or acquiring of one company by another. In short, it is when two or multiple companies join to form a single business.
In the given scenario, Yum Foods and Clean Plates are two business enterprises that have their separate ideas and policies. But when they merge, that means such individualistic ideas and concepts can no longer be retained or followed. To accommodate the two businesses, the HR team must find new ideas and policies that can work for the newly merged business.When two or more companies join to form a single company, it is always necessary to make new changes in the concepts and work culture. This is also what HR should do in the merger of Yum Foods and Clean Plates. Thus, the correct answer is option C.
Learn more about merger here:
brainly.com/question/4192836
A game has a saddle point when the maximin payoff value equals the minimax payoff value. true or false
Answer:
True
Explanation:
To answer this question, I'll use the following illustration.
Minimax = <10,18,15>
Maximax = <8,4,10>
The payoff of the minimax is 10 (i.e. the smallest) and the payoff of the maximax is 10 (i.e. the largest)
Both payoffs are equal; hence, 10 is the saddle point.
Vextra Corporation is considering the purchase of new equipment costing $38,000.The projected annual cash inflow is $11,600, to be received at the end of each year.The machine has a useful life of 4 years and no salvage value.Vextra requires a 12% return on its investments.The present value of an annuity of $1 for different periods follows:Periods 12 Percent1 0.89292 1.69013 2.40184 3.0373What is the net present value of the machine (rounded to the nearest whole dollar)?a. $(35,233).b. $(2,767).c. $38,000.d. $(3,700).e. $5,233.
Answer:
b. $(2,767).
Explanation:
The computation of the net present value is shown below:
= Present cash flows - initial investment
= ($11,600 × 3.0373) - $38,000
= $35,232.68 - $38,000
= -$2,767.32
= -$2,767
Hence, the option b is correct
We simply applied the above formula to determine the net present value
Worldwide Manufacturing produces a unique valve and has the capacity to produce 50,000 valves annually. Currently Worldwide produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. What is the most likely behavior of total manufacturing costs and unit manufacturing costs, given this change
Answer:
c) Total manufacturing costs will increase and unit manufacturing costs will also decrease.
Explanation:
Based on the information given the most likely behavior of total manufacturing costs and unit manufacturing costs, given this change is that TOTAL MANUFACTURING COSTS WILL INCREASE AND UNIT MANUFACTURING COSTS WILL DECREASE since Manufacturing cost consists of DIRECT MATERIALS, DIRECT LABOR, VARIABLE MANUFACTURING OVERHEAD and FIXED MANUFACTURING OVERHEAD in which direct materials, direct labor and variable manufacturing overhead are Variable expense which means that if the production increases from $40,000 to $45,000 the total manufacturing cost will as well INCREASE but due to the FIXED MANUFACTURING COST involved , the unit manufacturing cost will have to decrease.
The Milestone Decision Authority is responsible for establishing the Critical Operational Issues (COIs) that will be addressed in testing.
A. True
B. False
Answer:
False
Explanation:
Frank and Daniel both agreed to volunteer for a company project cleaning and organizing the district warehouse. There were to be 50 volunteers. Upon arrival, they discovered volunteer turnout was low. They were assigned to the northwest corner of the warehouse where they were to meet Trixie, who would give them their assignment. When they arrived, Trixie was nowhere to be found but they did find two push-brooms leaning against the wall. Frank took a seat on a box to wait for Trixie and his assignment. Daniel grabbed one of the push-brooms and began sweeping. While he was sweeping, Daniel thought, "This is why my desk looks so tidy, while Frank’s desk looks like a disaster." Which of the following statements is likely true of this scenario? Multiple Choice I
a. n this weak situation, Frank’s laziness trait is activated. In this strong situation, Daniel’s neurotic trait is activated.
b. In this weak situation, Daniel’s introversion trait is activated. In this strong situation Frank’s conscientiousness trait is activated.
c. In this weak situation, Daniel’s extraversion trait is activated.
Answer:
a. In this weak situation, Frank’s laziness trait is activated. In this strong situation, Daniel’s neurotic trait is activated.
Explanation:
A trait can be defined as the characteristics of a person that describes his nature and his behavior. It is the result of one's genes or are influence from surrounding or nature.
A neurotic trait of a person helps the person to deal with the stress. It is a tendency towards shyness, anxiety, etc.
In the context, it is given that both Frank and Daniel volunteered themselves for cleaning a district warehouse. They were assigned the northwest corner of the warehouse to clean. Daniel found a push-broom and started sweeping and cleaning the floor, while Frank waited for Trixie to arrive who will assigned them their job.
In this situation, it shows the laziness trait of Frank who felt too lazy to start his work before someone assigning them to him while Daniel is active and it shows his neurotic trait because of which Daniel started his job and did not waited for Trixie to come.
Thus the correct option is (a).
Equilibrium in financial markets occurs at an interest rate where the quantity of loanable funds demanded is
Answer: c. equal to the quantity of loanable funds supplied.
Explanation:
Equilibrium in any market occurs when the quantity demanded is equal to the quantity supplied and the loanable funds market are no different except that the quantity that is demanded and supplied in this market is the loanable funds and the price is the interest rate.
When the interest rate being offered by the financial institutions lending money is the same as the one being demanded by the people and companies who want loanable funds, the market is said to be in equilibrium.
The phase of the business cycle with the highest level of GDP and the lowest unemployment rate is called an?
Answer:
Expansion phase
Explanation:
Expansion is an economic cycle phase in which real gross domestic product rises for two or more months in a succession, going from a trough to a high. Expansion is often known as an improving economy since it is usually followed by an decrease in unemployment, consumer sentiment, and commodity prices.
Answer:
peak
Explanation:
To keep your business plan up-to-date, it should be revised every
A-month.
B-6 months.
C-year.
D-other year.
Answer:
A-month
Explanation:
by revising it monthly, it is the most up to date and can be consistently helpful to you as well as organized.
C-year.
Entrepreneur.com recommends that you do a thorough update to your business plan at least once annually.
Presented below are three revenue recognition situations.
a. Groupo sells goods to MTN for $908,000, payment due at delivery.
b. Groupo sells goods on account to Grifols for $797,000, payment due in 30 days.
c. Groupo sells goods to Magnus for $499,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $462,200.
Required:
Indicate the transaction price for each of these transactions and when revenue will be recognized.
Answer:
Groupo
Transaction Price When to recognize revenue
a. $908,000 Delivery Time
b. $797,000 30 days' time
c. $462,200 18 months and 24 months' time
Explanation:
a) Data and Analysis:
a. $908,000 Delivery Time
b. $797,000 30 days' time
c. $462,200 18 months and 24 months' time
b) For the goods sold on installment sales, the payments are also deferred. Therefore, the seller does not recognize any gain until installments are received. Since installment sales encompass much longer time periods compared to credit sales, there are no discounts offered for early payments. The seller in an installment sales maintains an ownership interest in the goods sold until the buyer pays the balance due in full.
countries A,B, and C with respective total populations 50 million, 18 million, and 15 million also have annual GDP as:
A - 428$ billion, B- 20$ billion, and C- $7billion, what are the countries; annual GDP per person
A) A= $466 , B= 1111 and C = 8560
B) no correct option
C) A= $1111 B= 466 and C = 8560
D) A = $8560 ,B= $11111 and C= 466$
Answer: D. A = $8560 ,B= $11111 and C= 466$
Explanation:
Country A
Annual GDP = $428 billion
Population = 50 million
Annual GDP per person = $428 billion / 50 million = $8560
Country B
Annual GDP = $20 billion
Population = 18 million
Annual GDP per person = $20 billion / 18 million = $1111
Country C
Annual GDP = $7 billion
Population = 15 million
Annual GDP per person = $7 billion / 15 million = $466.
The correct option is D.
A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. What change might be expected on the balance sheets of its customers?
A. Decreased receivables and increased bank loans
B. Increased receivables and increased bank loans
C. Increased payables and decreased bank loans
D. Increased payables and increased bank loan
Answer: Increased payables and decreased bank loans
Explanation:
It should be noted that 3/10, net 30 simply means when customer pays in 10 days, such person will get a 3% discount, if not the person will have to pay in full within the 30 days.
On the other hand, 2/20, net 90 means that when customer pays in 20 days, such person will get a 2% discount, if not the person will have to pay in full within the 90 days.
Therefore, the change that this will lead to on the balance sheets of its customers will be an increased payables as there'll be more time to make payment for the goods and decreased bank loans.
January 400 $ 31,000 February 800 $ 37,000 March 1,600 $ 49,000 April 2,400 $ 61,000 Using the high-low method, the estimated total fixed cost is
Answer:
$25,000
Explanation:
The computation of the estimated total fixed cost is shown below:
But before that the variable cost per unit is
= ($61,000 - $31,000) ÷ (2,400 - 400)
= $30,000 ÷ 2,000
= $15
Now the estimated fixed cost is
= $61,000 - $15 × 2,400
= $61,000 - $36,000
= $25,000
The viewpoint that business should be privately controlled and not controlled by the government is a perspective of a ________ economy.
Answer:
The viewpoint that business should be privately controlled and not controlled by the government is a perspective of a ____capitalist____ economy.
Explanation:
For example, the US economy provides a good example of a capitalist economy. A capitalist or market economy is also known as capitalism. It is an economic system whereby private individuals or businesses own capital goods or means of production. Therefore, the production of goods and services is based on the market forces of supply and demand. Since individuals and firms fix prices of and decide what goods and services to produce, rather than through central planning by the government, it is also known as a market economy. The opposite is called a command economy, characterized by central government planning.
On January 1, 2019, Brooks Inc. borrows $90,000 from a bank and signs a 5% installment note requiring four annual payments of $25,381 at the end of each year. The first installment payment is made on December 31. Complete the necessary journal entry on 12/31 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Date Account Title Debit Credit
12/31/2019 Notes Payable $4,500
Interest expense $20,881
Cash $25,381
Working
Interest expense = 5% * 90,000
= $4,500
Notes payable = 25,381 - 4,500
= $20,881
This is the principal repayment amount.
Many market participants believe that sell-side analysts are too optimistic in their recommendations to buy stocks, and too slow to recommend sells. What factors might explain this bias?
Answer:
They are related to Brokerage firms Brokerage firms issuing stocks will always encourage investors to buy rather than sell off their stocks.Explanation:
Sell-side analysts mostly work for various brokerage firms hence the reason why they are too optimistic in their recommendations to buy stocks while they are also too slow to recommend sells .
And Brokerage firms will always encourage investors to buy their shares or stocks ( buy-side) instead of selling off their shares or stocks
Bethany needs to borrow $10,000. She can borrow the money at 6% simple interest for 5 yr or she can borrow at 5% with interest compounded continuously for 5 yr.
a. How much total interest would Bethany pay at 6% simple interest?
b. How much total interest would Bethany pay at 5% interest compounded continuously?
c. Which option results in less total interest?
Answer:
a. $3000
b. 2840.25
c. compounded continuously
Explanation:
a. principal amount, p = $10000
Interest rate in the case of simple interest = 6%
Time, t = 5 years
Interest amount = Prt
Interest amount = 10000 x 6% x 5 = $3000
b. principal amount, p = $10000
Interest rate, r = 5%
Time, t = 5 years
Interest amount = Pe^(rt) - P
Interest amount = 10000 (2.71)^(5% x 5) - 10000
Interest amount = 2840.25
c. Compounded continuously has a lower interest amount.
Bonita Industries constructed a building at a cost of $14400000. Weighted-average accumulated expenditures were $5620000, actual interest was $566000, and avoidable interest was $272000. If the salvage value is $1120000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is
Answer:
$338,800
Explanation:
Cost of the building = $14400000
Average accumulated expenditures = $5620000
Actual interest = $566000
Avoidable interest = $272000
Salvage value = $1120000
Useful life = 40 years
Depreciation expense for the first full year:
= ((Cost of the building + Avoidable interest) - Salvage value) / Useful life
= (($14400000 + $272000) - $1120000) / 40
= ($14672000 - $1120000) / 40
= $13552000 / 40
= $338,800
By representing the budget and schedule associated with each task, the Performance Measurement Baseline (PMB) allows program managers to ___________________. Reduce overall life cycle costs Complete projects on time Compare the value of work performed to actual costs Complete comparative analyses more efficiently
Answer:
Option C (Compare......actual costs) is the correct alternative.
Explanation:
The benchmark establishing performance measurements takes place just at beginning of the assignment to monitor the construction process.Three restrictions exist, notably timeframe, scope as well as money. Benchmark employee performance simply monitors the implementation with these restrictions. This enables system management to identify discrepancies promptly.The situation presented is not connected to other alternatives. This is the solution, therefore.
The Molding Department of Boswell Company has the following production data: beginning work process 40,000 units (60% complete), started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are:
Answer: 770,000 units
Explanation:
The Equivalent units for Conversion cost is calculated as:
= Total units completed and transferred out + Equivalent units of closing work in process
As the conversion costs were incurred uniformly during the process, the entire closing work in process would have already incurred conversion cost. Conversion cost closing equivalent units are therefore 80,000 units.
Equivalent units for Conversion cost = 690,000 + 80,000
= 770,000 units
Indicate whether the following instruments are examples of money market or capital market securities.
a. U.S. Treasury bills
b. Long-term corporate bonds
c. Common stocks
d. Preferred stocks
e. Dealer commercial paper
Answer and Explanation:
In the Money Market Securities, it is treated as the short-term securities that means they are traded for short-term period i.e. less than one year. It has the less risk also the return is also very less but the liquidity is very rich. Examples - treasury bills, commercial papers etc
While on the other hand, the capital market securties are traded for the long term i.e. more than one year. It contains the high risk also the return is very high. Examples - stocks, bonds, debentures
So based on the above explanation, the classification is as follows
a. Money market securities
b. capital market securities
c. capital market securities
d. capital market securities
e. money market securities
Dynamic Futon forecasts the following purchases from suppliers:
Jan. Feb. Mar. Apr. May Jun.
Value of goods ($ millions) 37 33 30 27 25 25
a. Sixty percent of goods are supplied cash-on-delivery. The remainder are paid with an average delay of 1 month. If Dynamic Futon starts the year with payables of $27 million, what is the forecasted level of payables for each month?
b. Suppose that, from the start of the year, the company stretches payables by paying 50% after 1 month and 20% after 2 months. (The remainder continue to be paid cash-on-delivery.) Recalculate payables for each month assuming that there are no cash penalties for late payment. Assume that Dynamic Futon didn't have any payable balance at the start of the year.
Answer:
Please find the complete solution in the attached file.
Explanation:
Since nominal wages were constant as the price level changed, you explain that a decrease in the price level leads to an __________, which leads to firms ________
Answer:
increase in real wages, hiring less workers
Explanation:
In the case when the nominal wages are remain same but at the same time the level of the price should changed so if there is an decrease in the level of the price so that means there is an increased in the real wages as it is an inverse relationship between the real wages and the price level due to this the firm could hired less workers as the wages are increased
First National Bank charges 11.4 percent compounded monthly on its business loans. First United Bank charges 11.6 percent compounded semiannually. Calculate the EAR for each bank.
Answer:
EAR = (1 + APR/m)^m - 1. Where m = compounding periods
First National Bank
11.4 percent compounded monthly on its business loans
EAR = (1+11.4%/12)^12 - 1
EAR = (1.0095)^12 - 1
EAR = 1.12014921627 - 1
EAR = 0.12014921627
EAR = 12.014921627%
EAR = 12.01%
First United Bank
11.6 percent compounded semiannually
EAR = (1+11.6%/2)^2 - 1
EAR = (1.058)^2 - 1
EAR = 1.119364 - 1
EAR = 0.119364
EAR = 11.9364%
EAR = 11.94%
traight-line depreciation is a typical example of a: Multiple Choice curvilinear cost. mixed cost. variable cost. fixed cost. step-variable cost.
Answer:
fixed cost.
Explanation:
Straight-line depreciation is a typical example of a fixed cost.
Vaughn Manufacturing has beginning work in process inventory of $158000 and total manufacturing costs of $377000. If cost of goods manufactured is $380000, what is the cost of the ending work in process inventory
Answer:
Ending WIP= $155,000
Explanation:
To calculate the ending work in process, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
380,000= 158,000 + 377,000 - Ending WIP
Ending WIP= 158,000 + 377,000 - 380,000
Ending WIP= $155,000
