Step 1: Ask the Customer to Submit a Credit Application.
Step 2: Check Business Credit Rating.
Step 3: Set Credit Limit and Repayment Terms.
Answer:
1. Credit Application from Your Customer. Your credit application doesn’t need to be complicated, but …
2. Bank and Trade References. Checking bank and trade references is a very common practice, and …
3. Check Business Credit Using Credit Bureaus. There are a number of commercial credit bureaus that …
Explanation:
If a coupon bond has two years to maturity, a coupon rate of 10 %, a par value of $1000 , and a yield to maturity of 12 %, then the coupon bond will sell for $nothing . (Round your response to the nearest two decimal place) The price of a bond and its yield to maturity are ▼ positively related negatively related unrelated .
Answer:
The right solution is "$966.27".
Explanation:
Given values are:
Coupon rate,
= 10%
Par value,
= $1000
Yield of maturity,
= 12%
then,
Coupon will be:
= [tex]1000\times 10 \ percent[/tex]
= [tex]1000\times 0.1[/tex]
= [tex]100[/tex] ($)
Now,
The present value of coupon will be:
= [tex]A\times \frac{(1-(1+r)^n)}{r}[/tex]
By putting the value, we get
= [tex]100\times \frac{1-(1.12)^{-2}}{0.12}[/tex]
= [tex]100\times \frac{1-0.7971}{0.12}[/tex]
= [tex]100\times \frac{0.2029}{0.12}[/tex]
= [tex]169.08[/tex] ($)
The present value of par value will be:
= [tex]\frac{1000}{(1+12 \ percent)^2}[/tex]
= [tex]\frac{1000}{(1.12)^2}[/tex]
= [tex]797.19[/tex] ($)
hence,
The price of bond will be:
= [tex]Present \ value \ of \ coupon+Present \ value \ of \ par \ value[/tex]
= [tex]169.08+797.19[/tex]
= [tex]966.27[/tex] ($)
During the past year, Sweeter than Honey Inc. sold 920 beehives. Inventory records for the year are as follows: DATE QUANTITY COST TOTAL January 1 Beginning Inventory 180 $38 $ 6,840 January 30 Purchase 300 32 9,600 March 16 Purchase 150 12 1,800 November 10 Purchase 420 15 6,300 December 14 Purchase 400 43 17,200 Total available for sale 1,450 $41,740 Using the average cost method of inventory pricing, calculate the dollar value of the ending inventory. (Round your answer to 2 decimal places) Group of answer choices $19,128.00 $28,772.00 $15,258.70 $22,541.80
Discuss how key practices in the partnering approach to managing contracted relationships vary from those in the traditional approach regarding risk, length of commitment, and structure of project teams.
Answer:
Approaches to risk, structure and length of commitment has been changed in a positive way.
Explanation:
Approaches to risk, structure and length of commitment has been changed in a positive way. Risk is greatly changed by introducing the following strategy:
Transfer, Avoid, Reduce and Accept.
The risk is analyzed first to identify the nature whether it can be transferred or not if yes it is transferred, if not then risk is again analyzed if this can be avoided, if not then risk is again analyzed if the chances of risk occurring can be reduced, if not then the risk is accepted.
Length of commitment is changed to easy terms, the length of commitment in the past was of a longer duration [more than a year], unlike now which is a choice, length of commitment can be less than a year or maybe more than a year.
Service levels are reported accurately is an example of which control
Answer:
Service level measures the performance of a system. Certain goals are defined and the service level gives the percentage to which those goals should be achieved. Fill rate is different from service level.
Examples of service level:
Percentage of calls answered in a call center.
Percentage of customers waiting less than a given fixed time.
Percentage of customers that do not experience a stockout.
Percentage of all parts of an order being fulfilled completely
(Explanation) if one component part of an order is not filled the Service Level for that order is Zero, If all the component parts of an order are delivered except one is filled at 51%, the service level for that order is 51% (This system is often used in supply chain delivery to manufacturing), This is a very different from a simple order fill measurement which does not consider line items on the order.
Explanation:
thank me later
Andrews Co. can purchase 20,000 units of Part XYZ from a supplier for $18 per part. Andrews' per unit manufacturing costs for 20,000 units is as follows: Cost Per Unit Total Variable manufacturing cost $12 $240,000 Supervisor salary $3 $60,000 Depreciation $1 $20,000 Allocated fixed overhead $7 $140,000 If the part is purchased, the supervisor position will be eliminated. The special equipment has no other use and no salvage value. Total allocated fixed overhead would be unaffected by the decision. The company should ______.
Answer:
Andrews Co.
The company should ______.
should make the part.
Explanation:
a) Data and Calculations:
Costs to make Part XYZ:
Cost Per Unit Total
Variable manufacturing cost $12 $240,000
Supervisor salary $3 $60,000
Depreciation $1 $20,000
Allocated fixed overhead $7 $140,000
Units to be made or bought = 20,000 units
Cost to buy Part XYZ = $18 per part.
Relevant costs:
Make Buy Difference
Variable manufacturing cost $12
Supervisor salary $3
Total relevant cost per unit $15 $18 $3
Total costs $300,000 $360,000 $60,000
b) There is a cost-saving of $60,000 when Part XYZ is made internally. The cost of depreciation is not relevant in the decision since the equipment has no salvage value or any other use. Similarly, the fixed overhead will still be incurred, no matter the alternative chosen by the company.
A company took a physical inventory at the end of the year and determined that $833,000 of goods were on hand. In addition, the following items were not included in the physical count:
Management determined that $96,000 of goods purchased were in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count)
The company sold $40,000 worth of inventory f.o.b. destination.
What amount should Bell report as inventory at the end of the year?
Answer:
$873,000
Explanation:
Calculation of amount of inventory reported by Bell at the end of year :
Inventory amount = $833,000 + $40,000
Inventory amount = $873,000
Therefore, the amount that Bell should report as inventory at the end of the year is $873,000.
SWH Corporation issued bonds on January 1, 2004. The bonds had a coupon rate of 5.5%, with interest paid semiannually. The face value of the bonds is $1,000 and the bonds mature on January 1, 2019. What is the yield to maturity for an SWH Corporation bond on January 1, 2010 if the market price of the bond on that date is $950
Answer:
6.23%
Explanation:
From Jan 2019 to Jan 2010 = 9 years
N = 9 years*2 = 18
PV = $950
Coupon payment = $27.5 (1000*5.5%/2)
FV = $1000
We need to solve for YTM using the MsExcel function
Yield to maturity = YTM(n, pv, pmt, fv) * 2
Yield to maturity = YTM(18, 950, 27.5, 1000) * 2
Yield to maturity = 0.03117 * 2
Yield to maturity = 0.06234
Yield to maturity = 6.23%
You are scheduled to receive $34,000 in two years. When you receive it, you will invest it for 7 more years at 7.5 percent per year. How much will you have in 9 years
Answer: $65186.16
Explanation:
Since the individual is scheduled to receive $34,000 in two years and will then invest it for 7 more years at 7.5 percent per year. The amount that the person will have in 9 years will be:
FV = PV(1 + rate)^n
where,
PV = present value = $34000
Rate = 7.5% = 0.075
n = number of years = 7
FV = 34000 × (1 + 7.5%)^9
FV = 34000 × (1 + 0.075)^9
FV = 34000 × 1.075^9
FV = 34000 × 1.91724
FV = $65186.16
The amount in 9 years will be $65186.16
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 79,000 Direct labor $ 40,000 Variable manufacturing overhead $ 19,000 Fixed manufacturing overhead 31,000 Total manufacturing overhead $ 50,000 Variable selling expense $ 14,000 Fixed selling expense 22,000 Total selling expense $ 36,000 Variable administrative expense $ 5,000 Fixed administrative expense 27,000 Total administrative expense $ 32,000 Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost
Answer:
Total product cost= $169,000
Explanation:
The product cost is calculated using the direct material, direct labor, and manufacturing overhead:
Direct materials $ 79,000
Direct labor $ 40,000
Variable manufacturing overhead $ 19,000
Fixed manufacturing overhead 31,000
Total product cost= $169,000
Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assembly and finishing). The company uses the step method to allocate support department costs to operating departments. In October, human resources incurred $1,008,000 of costs, administration incurred $1,562,400, and maintenance incurred $476,000. Proportions of services provided to other departments for October follow. Human Resources Administration Maintenance Human resources 10% 5% Administration 10% 15 Maintenance 15 10 Assembly 40 50 45 Finishing 35 30 35 a. Assume that the departments are listed in a benefits-provided ranking. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. 1. What amount of cost should be assigned from human resources to each of the other departments
Answer:
Leander Mfg.
Human resources cost assigned to other departments:
Administration 100,800 (10%)
Maintenance 151,200 (15%)
Assembly 403,200 (40%)
Finishing 352,800 (35%)
Total HR costs $1,008,000
Explanation:
a) Data and Calculations:
Human Resource Administration Maintenance
Direct costs incurred $1,008,000 $1,562,400 $476,000
Human resources 10% 5%
Administration 10% 15
Maintenance 15 10
Assembly 40 50 45
Finishing 35 30 35
Allocation of Costs:
Human Resource Administration Maintenance
Direct costs incurred $1,008,000 $1,562,400 $476,000
Human resources ($1,008,000) 100,800 151,200
Administration 100,800 (10%) ($1,663,200) 184,800
Maintenance 151,200 (15%) 184,800 (10%) ($812,000)
Assembly 403,200 (40%) 924,000 (50%) 456,750 (45%)
Finishing 352,800 (35%) 554,400 (30%) 355,250 (35%)
Human resources cost assigned to other departments:
Administration 100,800 (10%)
Maintenance 151,200 (15%)
Assembly 403,200 (40%)
Finishing 352,800 (35%)
Total HR costs $1,008,000
Administration costs assigned to other departments:
Maintenance 184,800 ($1,663,200 * 10/90)
Assembly 924,000 ($1,663,200 * 50/90)
Finishing 554,400 ($1,663,200 * 30/90)
Total administration costs $1,663,200
Maintenance costs assigned to other departments:
Assembly 456,750 ($812,000 * 45/80)
Finishing 355,250 ($812,000 * 35/80)
Total administration costs $812,000
Four fundamental factors affect the cost of money: (1) the return that borrowers expect to earn on their investments, (2) the preference of savers to spend their income in the current period rather than delay their consumption until some future period, (3) the risks associated with the investment, and (4) expected inflation. Consider the following statements that address these factors, and indicate which you think are true.
Statement 1: The onset of 5% inflation means that your receipt of a $100 interest payment allows you to purchase only $95 worth of goods and services.
Statement 2: For the average rational investor or saver, there is an indirect, or inverse, relationship between the amount of risk exhibited by a security and the risk premium that would be required by the investor or saver.
Statement 3: On average and everything else held constant, rational savers and investors prefer to invest $1,500 to acquire an asset that will pay annual cash flows of $300 per year rather than an otherwise identical asset that will pay $500 per year.
Statement 4: The actual relationship between the risk-free rate of return (r*) and the expected future inflation rate or inflation premium (IP) is actually multiplicative-that is, [(1 + rRF) x (1 + IP)]-1-but it is often simplified to reflect an additive relationship.
The true statements are:
a. 2 and 3
b. 2 and 4
c. 1 and 4
d. 1 and 3
Answer:
The true statements are:
c. 1 and 4
Explanation:
The actual interest rate paid to savers depends on
(1) the expected rate of return on invested capital
(2) time preferences for current consumption versus future consumption
(3) the riskiness of the loan
(4) the expected future inflation rate
We can conclude that if an investment is facing a higher risk and inflation rate, then the expected interest rate will be higher than for a low-risk, low inflation-facing investment.
The beta of a stock is 1.2. The risk free rate is 3%. The expected market return is 9%. The dividends of the company are expected to grow by 5.6% a year. The current dividend is $6.80. Using the Gordon growth model, what is the intrinsic value of the firm
Answer: $156.09
Explanation:
First find the required return of the stock using CAPM:
= Risk free rate + Beta *( Market return - Risk free rate)
= 3% + 1.2 * (9% - 3%)
= 10.2%
Find out the Next dividend to be paid:
= Current dividend * (1 + growth)
= 6.8 * (1 + 5.6%)
= $7.18
Gordon Growth Model:
= Next dividend / (Return on stock - growth rate)
= 7.18 / (10.2% - 5.6%)
= $156.09
Suppose that 45% of all babies born in a particular hospital are girls. If 7 babies born in the hospital are randomly selected, what is the probability that at most of them are girls?
Answer:
0.10
Explanation:
Using the binomial probability formula: P(X = x) = (nCx) * p^x * (1 - p)^(n-x)
P(X≤1) = P(X = 0) + P(X = 1)
P(X≤1) = (7C0) * 0.45^0 * (0.55)^7 + (7C1) * 0.45^1 * (0.55)^6
P(X≤1) = 0.1024
P(X≤1) = 0.10
So, the Probability that at most one of them are girls 0.10.
kilala moba ako filipino ako panget mo
Answer:
Mas pangít ka
Mas pangít ka sa daga
Kamuka mo si babalu
Answer:
jupiter mars sun
Explanation:
its in space
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What is the Production Possibilities Frontier's purpose?
:a. Showing businesses that in order to produce more, they need to hire more output
b. Show businesses that businesses should not produce at their maximum capacity because they could exhaust their workers and capital goods
c. Show businesses that they need to produce at their maximum capacity to be efficient
d. Showing businesses that a worker's high morale is necessary to make them efficient
Answer:
Uhh b
Explanation:
Identify deficiencies in Wagner's participative budgetary policy for planning and performance evaluation purposes
Question Completion:
Behavioral Considerations and Budgeting Anthony Wagner, the controller in the Division of Transportation for the state, recognizes the im ance of the budgetary process for planning, control, and motivation purposes. He believes that properly implemented participative budgeting process for planning purposes and a management by exception reporting procedure based on that budget will motivate his subordinates to improve productivity within their particular departments. Based on this philosophy, Wagner has implemented the following budget procedures:
An appropriation target figure is given to each department manager. This amount is the maximum funding that each department can expect to receive in the next fiscal year Department managers develop their individual budgets within the following spending constraint as directed by the controller's staff:
1. Expenditure requests cannot exceed the appropriation target
2. All fixed expenditures should be included in the budget: these should include items such . . as contracts and salaries at current levels
3. All government projects directed by higher authority should be included in the budget in their entirety. The controller consolidates the departmental budget requests from the various departments into one budget that is to be submitted for the entire division. Upon final budget approval by the legislature, the controller's staff allocates the appropriation to the various departments on instructions from the division manager. However, a specified percentage of each department's appropriation is held back in anticipation of potential budget cuts and special funding needs. The amount and use of this contingency fund are left to the discretion of the division manager Each department is allowed to adjust its budget when necessary to appropriation level. However, as stated in the original directive, specific projects authorized b higher authority must remain intact. The final budget is used as the basis of control for a management by exception form of reporting. Excessive expenditures by account for each department are highlighted on a monthly basis. Department managers are expected to account for all expenditures over budget. Fiscal responsibility is an important factor in the overall performance evaluation of department managers .Each department is allowed to adjust its budget when necessary to operate within the reduced · Wagner believes that his policy of allowing the department managers to participate in the budget process and then holding them accountable for their performance is essential, e these times of limited resources.
Answer:
Deficiencies in Wagner's Participative Budgeting Policy
1. Fixed costs are not controllable by managers. This defeats, to a large extent, the idea of participative budgeting policy by Wagner as his departmental managers' performances are evaluated based on goals they have not set for themselves.
2. Wagner's participative budgetary policy allows him to revise some approved budgets arbitrarily without seeking the participation of divisional managers in the revision. This negatives the principle of participation.
Explanation:
An effective participating budgeting process ensures the utilization of specialist knowledge of the participants who are close to the daily operations of their departments. An effective process ensures the setting of more realistic and acceptable goals. A good participative budgetary policy wins managers' commitment, improves communication and accountability, and ensures group cohesiveness.
Turner Enterprises is analyzing a project that is expected to have annual cash flows of $77,400, $21,300 and -$6,200 for Years 1 to 3, respectively. The initial cash outlay is $84,900 and the discount rate is 11 percent. What is the modified IRR
Answer:
8.26%
Explanation:
Calculation to determine the modified IRR
First step is to calculate the Modified Year 2 cash flow
Modified Year 2 cash flow = $21,300 + (-$6,200)/1.11
Modified Year 2 cash flow= $15,714.41
Now let determine the Modified IRR
Modified IRR:$0 = -$84,900 + $77,400/(1 + IRR) + $15,714.41/(1+ IRR)^2
Modified IRR= 8.26%
Therefore the modified IRR is 8.26%
John Larken is a single taxpayer. He sells the home he has owned and lived in for the past 31 years for a gain of $200,000 on October 5, Year 33. How much of this gain may he exclude
Answer: $200000
Explanation:
It should be noted that the amount of gain that'll be excluded from the gross income under with respect to any sale should not be more than $250,000.
Therefore, the amount that'll be excluded based on this will be $200000. Therefore, the answer will be $200000.
Pistol Corporation purchased 100 percent ownership of Scope Products on January 1, 20X6, for $56,000, at which time Scope Products reported retained earnings of $10,000 and capital stock outstanding of $30,000. The differential was attributable to patents with a life of eight years. Income and dividends of Scope Products were
Answer:
1.20X6
1a. Dr Investment in Scope Products $56,000
Cr Cash $56,000
1b. Dr Cash $ 6,000
Cr Investment in Scope Products $ 6,000
1c. Dr Investment in Scope Products $16,000
Cr Income from Scope Products $16,000
1d. Dr Income from Scope Products $2,000
Cr Investment in Scope Products $2,000
20X7
2a. Dr Cash $8,000
Cr Investment in Scope Products $8,000
2b. Dr Investment in Scope Products $24,000
Cr Income from Scope Products $24,000
2c. Dr Income from Scope Products $2,000
Cr Investment in Scope Products $2,000
20X8
3a. Dr Cash $8,000
Cr Investment in Scope Products $8,000
3b. Dr Investment in Scope Products 32,000
Cr Income from Scope Products 32,000
3c. Dr Income from Scope Products $2,000
Cr Investment in Scope Products $2,000
2.$98,000
Explanation:
1. Preparation of the equity method entries that Pistol should record to account for this investment in 20X6, 20X7, and 20X8.
Equity Method Journal Entries for Pistol Corporation.
20X6
1a. Dr Investment in Scope Products $56,000
Cr Cash $56,000
1b. Dr Cash $ 6,000
Cr Investment in Scope Products $ 6,000
1c. Dr Investment in Scope Products $16,000
Cr Income from Scope Products $16,000
1d. Dr Income from Scope Products $2,000
Cr Investment in Scope Products $2,000
{ ($56,000-$10,000-$30,000) /8 years }
20X7
2a. Dr Cash $8,000
Cr Investment in Scope Products $8,000
2b. Dr Investment in Scope Products $24,000
Cr Income from Scope Products $24,000
2c. Dr Income from Scope Products $2,000
Cr Investment in Scope Products $2,000
{ ($56,000-$10,000-$30,000) /8 years }
20X8
3a. Dr Cash $8,000
Cr Investment in Scope Products $8,000
3b. Dr Investment in Scope Products 32,000
Cr Income from Scope Products 32,000
3c. Dr Income from Scope Products $2,000
Cr Investment in Scope Products $2,000
{ ($56,000-$10,000-$30,000) /8 years }
2. Calculation to determine the Balance in Investment in Scope Products.
Particulars Amount ($)
Initial Investment Amount $56,000
Add : Share of Income $72,000
($16,000+$24,000+$32,000)
Less : Dividend Received ($22,000)
($6,000+$8,000+$8,000)
Less : Patent Amortization ($6,000)
($2,000 * 3 years)
Balance in Investment in Scope Products Account as on Dec. 31 20X8 $98,000
Therefore the balance of the Investment in Scope account on Pistol balance sheet at December 31, 20X8, after all required equity method entries have been recorded is $98,000
Karr, Inc., reported net income of $300,000 for 2011. Changes occurred in several balance sheet accounts as follows:
Equipment $25,000 Increase
Inventories $20,000 decrease
Accumulated depreciation 40,000 Increase
Accounts receivable 15,000 Increase
Note payable 30,000 increase
Accounts payable 5,000 decrease
Additional Information:
a. During 2011 Karr sold equipment costing $25,000, with accumulated depreciation of $12,000, for a gain of $5,000.
b. In December 2011 Karr purchased equipment costing $50,000, with $20,000 cash and a 12% note payable of $30,000.
c. Depreciation expense for the year was $52,000.
Required:
1. In Karr’s 2011 statement of cash flows, calculate net cash provided by operating activities.
2. In Karr’s 2011 statement of cash flows, calculate net cash used in investing activities.
Answer:Cash flow from operating activities = $347,000
Net cash used in Investing:= -$2,000
Explanation:
1.
The net cash provided by operating activities by Karr, Inc., reported in 2011
Account Titles and explanation Amount
Net income $300,000
Adjustments made
Add:
Depreciation expense $52,000
Decrease in inventory $20,000
Less:
Increase in account receivable -$15,000
Decrease in account payable -$5,000
Gain on sale of equipment -$5,000
Cash flow from operating activities $347,000
2. Net cash used in Investing:
Sales of equipment =cost -depreciation + gain of sale
Sales of equipment 18,000(($25,000-$12,000+$5,000)
Purchase of Equipment 20,000
Net cash used in Investing:= -$2,000
Consumer protection is NOT a modern idea, McKay states. Which ancient legal document talked about this concept?
Answer:
Hammurabi's Code
Explanation:
Hammurabi's Code was a Babylonian legal document that was written between 1755 - 1750 BC.
Its main focus is fairness in regards to the rule of law. Responsibilities were allocated to different parties in a legal relationship so a producer will be deterred from engaging in unfair practices when dealing with a consumer.
Hammurabi's Code is an old document that still remains relevant to modern legal practitioners.
Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations
May
1 G. Gram invested $40,000 cash in the company.
1 The company rented a furnished office and paid $2,200 cash for May’s rent.
3 The company purchased $1,890 of office equipment on credit.
5 The company paid $750 cash for this month’s cleaning services.
8 The company provided consulting services for a client and immediately collected $5,400 cash.
12 The company provided $2,500 of consulting services for a client on credit.
15 The company paid $750 cash for an assistant’s salary for the first half of this month.
20 The company received $2,500 cash payment for the services provided on May 12.
22 The company provided $3,200 of consulting services on credit.
25 The company received $3,200 cash payment for the services provided on May 22.
26 The company paid $1,890 cash for the office equipment purchased on May 3.
27 The company purchased $80 of advertising in this month’s (May) local paper on credit; cash payment is due June 1.
28 The company paid $750 cash for an assistant’s salary for the second half of this month.
30 The company paid $300 cash for this month’s telephone bill.
30 The company paid $280 cash for this month’s utilities.
31 G. Gram withdrew $1,400 cash from the company for personal use.
Required
a. Show effects of the transactions on the accounts of the accounting equation by recording increases and decreases in the appropriate columns.
b. Prepare an income statement for May, a statement of owner’s equity for May, a May 31 balance sheet, and a statement of cash flows for May.
Answer:
1. Asset and capital will increase
2. Current asset decrease
3. Asset and liability increase
4. Asset decrease
5. Asset increase
6. Asset increase
7. Asset decrease, expense increase
8. Asset increase
9. Asset increase
10. Asset decrease, liability decrease
11. Liability increased
12. Asset decrease
13. Asset decrease
14. Capital decrease
Explanation:
Income Statement for the month of May:
Sales Revenue $11,100
Less: Operating Expenses:
Cleaning service $750
Salary expense $750
Advertising expense $80
Salaries expense $750
Telephone bill $300
Utilities expense $280
Net Profit $8,190
This information relates to Blossom Co..
1. On April 5, purchased merchandise from Sunland Company for $28,800, terms 4/10, n/30.
2. On April 6, paid freight costs of $620 on merchandise purchased from Sunland Company.
3. On April 7, purchased equipment on account for $34,200.
4. On April 8, returned $3,500 of April 5 merchandise to Sunland Company.
5. On April 15, paid the amount due to Sunland Company in full.
1. Prepare the journal entries to record the transactions listed above on Blossom Co.’s books. Blossom Co. uses a perpetual inventory system.
2. Assume that Blossom Co. paid the balance due to Sunland Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
Answer:
1. Apr 5
Dr Merchandise inventory $28,800
Cr Account payable $28,800
Apr 6
Dr Merchandise inventory $620
Cr Cash $620
Apr 7
Dr Equipment $34,200
Cr Account payable $34,200
Apr 8
Dr Account payable $3,500
Cr Merchandise inventory $3,500
Apr 15
Dr Account payable $25,300
Cr Cash $24,288
Cr Merchandise inventory $1,012
b) May 4
Dr Account payable $25,300
Cr Cash $25,300
Explanation:
1. Preparation of the journal entries to record the transactions listed above on Blossom Co.’s books. using a perpetual inventory system.
Apr 5
Dr Merchandise inventory $28,800
Cr Account payable $28,800
Apr 6
Dr Merchandise inventory $620
Cr Cash $620
Apr 7
Dr Equipment $34,200
Cr Account payable $34,200
Apr 8
Dr Account payable $3,500
Cr Merchandise inventory $3,500
Apr 15
Dr Account payable $25,300
($28,800-$3500)
Cr Cash (25,300*96%) $24,288
Cr Merchandise inventory $1,012
($25,300-$24,288)
b) Preparation of the journal entry to record this payment.
May 4
Dr Account payable $25,300
($28,800-$3500)
Cr Cash $25,300
You own a portfolio that has $2,600 invested in Stock A and $3,600 invested in Stock B. If the expected returns on these stocks are 12 percent and 15 percent, respectively, what is the expected return on the portfolio
Answer:
the expected return on the portfolio is $7,052
Explanation:
The computation of the expected return on the portfolio is shown below:
Stock A return = $2,600 + 12% of 2600 = $2,912
And,
Stock B return = $3,600 + 15% of 3600 = $4,140
So,
Expected return on portfolio is
= $2,912 + $4,140
= $7,052
hence, the expected return on the portfolio is $7,052
In 2008, 1 Swiss franc cost .56 British pounds and in 2010 it cost .51 British pounds in 2010. How much would 1 British pound purchase in Swiss francs in 2008 and 2010
Answer:
1.78 Swiss franc
1.96 Swiss franc
Explanation:
Below is the calculation:
In the year 2008, 1 Swiss franc cost = 0.56 British pounds
In the year 2010, 1 Swiss franc cost = 0.51 British pounds
Now calculate the Swiss frac purchase by 1 bristish pound.
In the year 2008, 1 British pound will purchase = 1 / 0.56 = 1.78 Swiss franc
In the year 2010, 1 British pound will purchase = 1 / 0.51 = 1.96 Swiss franc
A researcher wants to test the order of integration of some time series data. He decides to use the DF test. He estimates a regression of the form
delta yt = mu + si yt-1 + mut
and obtains the estimate ˆ? = -0.02 with standard error = 0.31.
(a) What are the null and alternative hypotheses for this test?
(b) Given the data, and a critical value of -2.88, perform the test.
(c) What is the conclusion from this test and what should be the next step?
(d) Why is it not valid to compare the estimated test statistic with the corresponding critical value from a t-distribution, even though the test statistic takes the form of the usual t-ratio?
Answer:
a) H0: u = presence of a unit root
HA: u ≠ presence of a unit root ( i.e. stationary series )
b) t stat = -0.064
c) We will reject the Null hypothesis and the next step will be to accept the alternative hypothesis
d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise
Explanation:
a) stating the null and alternative hypothesis
H0: u = presence of a unit root
HA: u ≠ presence of a unit root ( i.e. stationary series )
b) performing the test
critical value = -2.88
T stat = coefficient / std error
= -0.02 / 0.31 = -0.064
c) From the test, the value of T stat > critical value we will reject the Null hypothesis hence the next step will be to accept the alternative hypothesis
d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise
The following information pertains to Cullumber Company. 1. Cash balance per bank, July 31, $11,310. 2. July bank service charge not recorded by the depositor $65. 3. Cash balance per books, July 31, $11,440. 4. Deposits in transit, July 31, $4,615. 5. $2,600 collected for Cullumber Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Cullumber Company. 6. Outstanding checks, July 31, $1,950. (a) Prepare a bank reconciliation at July 31, 2022.
Answer:
See below
Explanation:
Cullumber Company
Bank Reconciliation
July 31, 2022
Cash balance as per bank
$11,310
Add:
Deposits in transit
$4,615
Less:
Outstanding checks
($1,950)
Adjusted bank balance
$13,975
Cash balance per books
$11,440
Add:
Electronic fund transfer received
$2,600
Less:
Bank service charges
($65)
Adjusted cash balance
$13,975
Suppose the annual inflation rate in the US is expected to be 2.5 %, while it is expected to be 18.00 % in Mexico. The current spot rate (on 1/1/X0) for the Mexican Peso (MXN) is $0.1000. If the spot rate of MXN turns out to be $0.085 on 1/1/X1, the net cash flow of a US importer from Mexico will: Group of answer choices Increase Decrease
Answer:
Increase
Explanation:
In putting the question into a better perspective let us assume that the US importer buys goods from Mexico every year to the Tune of 1,000,000 Mexican Pesos.
The expected exchange rate on 1/1/X1=$0.1000*(1+2.5%)/(1+18%)
The expected exchange rate on 1/1/X1=$0.086864407
Amount paid based on expected exchange rate=1,000,000*$0.086864407
Amount paid based on expected exchange rate=$86,864.41
Amount paid based on actual exchange=1,000,000*$0.085
Amount paid based on actual exchange=$85,000
The above means that the US importer paid a lesser amount($85000) than it should have paid, hence, its net cash flow would increase due to a reduction in payment
How are laws of supply and demand similar
