Answer:
A) true
Explanation:
From the question, we are informed that Management at Enomoto Enterprises has assigned Alberto to work at two different facilities, which will require him to commute an extra 25 miles on the days he must work at both plants. Alberto believes that the negotiated labor-management agreement requires the company to reimburse him for the extra mileage he has to drive. Management disagrees. Alberto has decided to file a charge that management is not abiding by the terms of the negotiated agreement. In this case, Alberto's complaint is called a grievance.
Grievance handling can be regarded as the management of employee
dissatisfaction as well as employee complaints such as workplace harassment, management not following terms of negotiated agreement,
wage cuts as well as favouritism. formal grievance handling procedures can be set up by management to give enablement for employees to raise their concerns. Unresolved Grievances could result in form of collective disputes and the morale and efficiency of of employees can be lowered
1. Prepare general journal entries for the transactions.
Mitchell Parts Co. had the following plant asset transactions during the year:
1. Assets discarded or sold:
Jan. 1 Motor #12, which had a cost of $2,890 and accumulated depreciation of
$2,890, was discarded.
8 Motor #8, which had a cost of $4,440 and accumulated depreciation of
$4,020, was sold for $260.
14 Motor #16, which had a cost of $5,730 and accumulated depreciation of
$5,490, was sold for $470.
2. Assets exchanged or traded in:
Feb. 1 Motor #6, which had a cost of $5,860 and accumulated depreciation of
$4,590, was traded in for a new motor (#22) with a fair market value of
$6,800. The old motor and $5,300 in cash were given for the new motor.
9 Motor #9, which had a cost of $5,420 and accumulated depreciation of
$4,940, was traded in for a new motor (#23) with a fair market value of
$6,450. The old motor and $6,170 in cash were given for the new motor.
Answer:
1. Accumulated Depreciation (Dr.) $2,890
Motor #12 (Cr.) $2,890
2. Cash (Dr.) $260
Accumulated Depreciation (Dr.) $4,020
Loss on Sale (Dr.) $160
Motor #8 (Cr.) $4,440
3. Cash (Dr.) $470
Accumulated Depreciation (Dr.) $5,490
Gain on Sale (Cr.) $230
Motor #16 (Cr.) $5,730
Explanation:
1. New Motor #22 (Dr.) $6,800
Accumulated Depreciation (Dr.) $4,590
Gain on Sale (Cr.) $230
Motor #6 (Cr.) $5,860
Cash (Cr.) $5,300
2. New Motor #23 (Dr.) $6,450
Accumulated Depreciation (Dr.) $4,940
Loss on Sale (Dr.) $200
Motor #9 (Cr.) $5,420
Cash (Cr.) $6,170
Think about an organizational change that recently affected you. This could be a change at work in which jobs or procedures were changed, or it could be a change at school, such as a change in curriculum requirements or major revisions in registration procedures. How effectively did the organization manage the change? What could the organization have done differently to reduce resistance to the change? Your post should reflect the terms and concepts in Chapter 15.
Explanation:
One good example is the recent change in the way we learn at school (remote learning). For many students, it was the first time they had to receive instructions from a teacher via videoconferencing.
Many organizations tried to adjust to this new normal, however, most organizations were confused about what training to provide, how long to should they plan for, etc.
Reports say that many teachers found it difficult to adapt to this method of teaching, hence, some were resistant to this change. However, if proper enlightenment were carried out, as well as employing some motivational factors, such resistance to change would have been minimal.
At December 31, Gill Co. reported accounts receivable of $288,000 and an allowance for uncollectible accounts of $1,500 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 1% of accounts receivable. The amount of the adjustment for uncollectible accounts would be:
Answer:
$1,380
Explanation:
Given that;
Accounts receivables = $288,000
Allowance for uncollectible accounts = $1,500 (credit balance)
Allowance should be 1% of accounts receivables = $288,000 × 1% = 2,880
Then, the adjustment = $2,880 - $1,500 = $1,380
Therefore, the amount of the adjustment for uncollectible accounts would be $1,380
who is the richest person on earth?
Answer: Jeff Bezos
Explanation: Jeffrey Preston Bezos is an American internet entrepreneur, industrialist, media proprietor, and investor. Bezos is the founder and CEO of the multi-national technology company Amazon. He is the richest person in the world according to both Forbes' and Bloomberg's Billionaires Index.
Hurte-Paroxysm Products, Inc. (HP) of the United States exports computer printers to Brazil, whose currency, the reals (symbol R$) havebeen trading at R$3.40/US$. Exports to Brazil are currently 50,000 printers per year at the reals equivalent of $200 each. A strong rumor exists that the reals will be devalued to R$4.00/$ within two weeks by the Brazilian government. Should the devaluation take place, the exchange rate isexpected to remain unchanged for the foreseeable future. Based on this forecast, HP Products may either (1) maintain the same realprice and sell for fewer dollars, in which case Brazilian volume will not change, or (2) maintain the same dollar price, raise the realprice in Brazil to compensate for the devaluation, and experience a 20% drop in volume. Direct costs in the U.S. are 60% of the U.S. sales price.
Required:
a. What would be the short-run (one-year) impact of each pricing strategy?
b. Which do you recommend?
If HP maintains the same real price and same unit volume, what will be the firm's gross profits?
Answer:
Hurte-Paroxysm Products, Inc. (HP)
The short-run impact of each pricing strategy is as follows:
Alternative 1 Alternative 2
Reduce Price to $170 Maintain Price of $200
Gross profit $2,500,000 $3,200,000
Reduction in Gross Profit $1,500,000 $800,000
b. (2) maintain the same dollar price of $200, raise the real price in Brazil (to R$800 from R$680)to compensate for the devaluation, and experience a 20% drop in volume.
c. If HP maintains the same real price and same unit volume, the firm's gross profits will be $2,500,000.
Explanation:
a) Data and Calculations:
Exchange rate = R$3.40/US$
Current exports of printers per year to Brazil = 50,000
US unit price of printer in dollars = $200
Brazil unit price of printer in R$ equivalent = R$680 ($200 * R$3.40)
Unit price of printer in R$ when reals is devalued = R$800 ($200 * R$4.00)
The reduced dollar price with devaluation, when real price is maintained = $170 (R$680/R$4.00)
Before Devaluation of Brazil's Real (R$):
Sales volume 50,000
Sales revenue $10,000,000 (50,000 * $200)
Direct costs 6,000,000 (50,000 * $120)
Gross profit $4,000,000
Alternative 1 Alternative 2
Reduce Price to $170 Maintain Price at $200
Sales volume 50,000 40,000 (50,000 * 80%)
Sales revenue $8,500,000 $8,000,000 ($200 * 40,000)
Direct costs 6,000,000 4,800,000 ($120 * 40,000)
Gross profit $2,500,000 $3,200,000 ($80 * 40,000)
Direct costs = $6m ($120 * 50,000) = $4.8m ($120 * 40,000)
Crane Company estimates its sales at 80000 units in the first quarter and that sales will increase by 8000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at
Answer:
Total cash collection Third Quarter= $2,364,000
Explanation:
Giving the following information:
40% of the sales are for cash.
70% of the credit customers pay within the quarter.
The remainder is received in the quarter following the sale.
Sales:
Q2= 88,000*25= 2,200,000
Q3= 96,000*25= 2,400,000
Selling price per unit= $25
Cash collection Third Quarter:
Sales in cash= 2,400,000*0.4= 960,000
Sales on account third quarter= (2,400,000*0.6)*0.7= 1,008,000
Sales on account second quarter= (2,200,000*0.6)*0.3= 396,000
Total cash collection Third Quarter= $2,364,000
Peerless Corporation (a U.S. company) made a sale to a foreign customer on September 15, for 119,000 crowns. It received payment on October 15. The following exchange rates for 1 crown apply: September 15$0.61 September 30 0.65 October 15 0.60 Prepare all journal entries for Peerless in connection with this sale, assuming that the company closes its books on September 30 to prepare interim financial statements.
Answer:
Exchange rate on September 15: 1 Crown = $0.61; 119,000 Crown = (119,000*$0.61) = $72,590.
September 30 = (119,000*0.65) = $77,350.
October 15 = (119,000*$0.60) = $71,400.
JOURNAL ENTRY
Date Account Debit Credit
15-Sep Account receivable $72,590
Sales $72,590
(Sale to a foreign customer for 119,000 crown Exchange rate = $0.61)
30-Sep Account receivable $4,760
Foreign currency exchange gain $4,760
($77,350-$72,590)
15-Oct Foreign currency exchange loss $5,950
Account receivable $5,950
($71,400-$77,350)
Cash $77,350
Accounts Receivable $77,350
Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $325,000 after deducting Robert’s $100,000 salary. In addition to his compensation, ABC pays Robert dividends of $250,000. What is Robert’s qualified business income? Would your answer to part (a) change if you determined that reasonable compensation for someone with Robert’s experience and responsibilities is $200,000? Why or why not
Answer and Explanation:
a. The calculation of the robert qualified business income is shown below:
Since robert is the sole shareholder and CEO of the ABC Inc and earned the income of $325,000 after subtracting the deduction of $100,000 salary
Also their is a dividend of $250,000
But the qualified business income should be equivalent to the net income i.e. $325,000
b. In the case when there is $200,000 so the net income would be decreased by $100,000
Now the qualified business income is
= $325,000 - $100,000
= $225,000
The FOMC is presented with data and analysis showing that the output gap has gone from nearly 0 to large and negative. Additionally, inflation is 1.2% instead of the target rate, 2%. a. Using the floor framework, the FOMC is likely to influence interest rates by the interest rate it pays on excess reserves and its overnight borrowing from financial institutions. b. Additionally, the FOMC is likely the discount rate.
Answer:
A. decreasing
B. decrease
Using the floor framework, the FOMC is likely to influence interest rates by the interest rate it pays on excess reserves and decreasing its overnight borrowing from financial institutions. Additionally, the FOMC is likely decreasing the discount rate.
What is FOMC?The Board of Governors of the Federal Reserve System is in control of the discount rate and reserve requirements, while the Federal Open Market Committee is in charge of carrying out open market activities.
The FOMC is in charge of setting interest rate targets and controlling the money supply. The Fed has historically been motivated by two objectives: first, to maintain stable prices; and second, to achieve full employment.
When the Federal Open Market Committee raises interest rates, the economy and stock markets are impacted because borrowing costs for households and businesses might go up or down.
Thus, the answers are written above.
For more information about FOMC, click here:
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How to account for this $45,000? I think, this could be as Salary or dividend.
When Scott and Allison are in the store, they are the only ones who operate the register. Scott admits that, because he is in too much of a hurry, he sometimes puts the cash in his pocket rather than take the time to ring up the sale. Having cash in hand allows him to pay his babysitter and other personal expenses. Though it was difficult for him to be certain, Scott estimated that transactions worth about $45,000 each year have been handled in this way. Scott confirmed that he has not filed a personal tax return since he started GPP because he has not taken a salary.
Answer:
Scott should file Personal tax return since he is running his expenses through the money he takes in hand.
Explanation:
Scott will have to file the tax return because he is taking $45,000 as a salary. It does not matter that the salary is run through bank account or through cash but personal tax return filing is necessary. He uses the money to fund his routine expenses and this is to be reported in personal tax filing.
In its most recent annual report, Appalachian Beverages reported current assets of $54,000 and a current ratio of 1.80. Assume that the following transactions were completed: (1) purchased merchandise for $6,000 on account, and (2) purchased a delivery truck for $10,000, paying $1,000 cash and signing a two-year promissory note for the balance.
Compute the updated current ratio (round answers to 2 decimal places)
Transaction (1) ________________
Transaction (2) ________________
Answer:
Current Ratio - Transaction 1 = 1.6666 rounded off to 1.67
Current Ratio - Transaction 2 = 1.6388 rounded off to 1.64
Explanation:
The current ratio is a measure of liquidity which measures the amount of current assets a business has to pay off each $1 of current liability. It is calculated as follows,
Current Ratio = Current Assets / Current Liabilities
We know the initial current ratio and current assets. The initial current liabilities will be,
1.8 = 54000 / Current Liabilities
Current Liabilities = 54000 / 1.8
Current Liabilities = $30000
Transaction 1
The result of transaction 1 will be that the current assets will increase by $6000 as inventory increases and the current liabilities will also increase by $6000 as accounts payable are increasing. The new current ratio will be,
Current Ratio - Transaction 1 = (54000 + 6000) / (30000 + 6000)
Current Ratio - Transaction 1 = 1.6666 rounded off to 1.67
Transaction 2
The result of transaction 2 will be that the current assets will decrease by $1000 as payment for truck which is a fixed asset is made partly by cash and the current liabilities will not increase as the note signed for the remaining payment of the truck is due after 2 years thus it is a non current liability. The new current ratio will be,
Current Ratio - Transaction 2 = (54000 + 6000 -1000) / (30000 + 6000)
Current Ratio - Transaction 2 = 1.6388 rounded off to 1.64
Q4) The price of a luxury car increased from 42.000 euros to 44.000 euros. Then the demand for
this car declined from 100 units to 20 units. Calculate the price elasticity of demand for the car.
Answer:
Price elasticity of demand = 28.67 (Approx.)
Explanation:
Given:
Old price of car = 42.000 euros
New price of car = 44.000 euros
Quantity of car old = 100 units
Quantity of car new = 20 units
Find:
Price elasticity of car
Computation:
Price elasticity of demand = (Percentage change in quantity)/(Percentage change in price)
Price elasticity of demand = [{(Q2-Q1)100}/{(Q1+Q2)/2}] / [{(P2-P1)100}/{(P1+P2)/2}]
Price elasticity of demand = [{(20-100)100}/{(20+100)/2}] / [{(44000-42000)100}/{(44000+42000)/2}]
Price elasticity of demand = [{-8000}/{60}] / [{200000}/{(43000}]
Price elasticity of demand = 133.33 / 4.65
Price elasticity of demand = 28.67 (Approx.)
Vaughn Manufacturing purchased land as a factory site for $1345000. Vaughn paid $116000 to tear down two buildings on the land. Salvage was sold for $8100. Legal fees of $5500 were paid for title investigation and making the purchase. Architect's fees were $46900. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15860. The contractor was paid $4300000. An assessment made by the city for pavement was $9500. Interest costs during construction were $260000.
1. The cost of the land that should be recorded by Wilson Co. is:_____.
a. $989,880.
b. $980,480.
c $996,280.
d. $986,880.
2. The cost of the building should be recorded by Wilson Co. is:_____.
a. 2,804,840.
b. 2,813,200.
c. 2,803,800.
d. 3,014,240.
Answer:
Cost of Land = $1,471,800
Cost of Building = $4,626,960
Explanation:
Note: "The options attached to the question are incorrect because its belongs to another question entirely and this can be seen as attached as picture below"
1. Cost of Land = Purchase Value + Cost Incurred to Tear Down two Buildings - Salvage + Legal Fees + Title Insurance Cost + Assessment Cost
Cost of Land = $1345000 + $116000 - $8100 + $5500 + $3900 + $9500
Cost of Land = $1,471,800
2. Cost of Building = Architect's Fees + Liability Insurance Cost + Excavation Cost + Contractor's Payment + Interest Cost
Cost of Building = $46900 + $4200 + $15860 + $4300000 + 260000
Cost of Building = $4,626,960
Beloved Baby Company manufactures and sells children's strollers. Each stroller requires eight screws. For September, Beloved Baby Company will begin September with 360 screws in its beginning inventory. Beloved Baby Company has budgeted stroller sales of 560 strollers, while 590 strollers are scheduled to be produced. How many screws should Beloved Baby Company purchase in September
Answer:
4,360
Explanation:
Calculation to determine How many screws should Beloved Baby Company purchase in September
Using this formula
Screws to purchased in September=(Production* per screws required)- Beginning Inventory
Let plug in the formula
Screws to purchased in September=(590 × 8)-360
Screws to purchased in September= 4,720 - 360 Screws to purchased in September= 4,360
Therefore The numbers of screws that Beloved Baby Company should purchase in September is 4,360
Free Flight Corporation, located in Denver, Colorado, produces bicycle accessories, including bicycle helmets which requires a rigid, crushable foam. During the quarter ending June 30, the company manufactured 3,800 helmets, using 2,736 kilograms of foam. The foam cost the company $18,058. According to the standard cost card, each helmet should require 0.66 kilograms of foam, at a cost of $7.00 per kilogram.
Required:
1. What is the standard quantity of kilograms of foam (SQ) that is allowed to make 3,800 helmets?
2. What is the standard materials cost allowed (SQ * SP) to make 3,800 helmets?
3. What is the materials spending variance?
4. What is the materials price variance and the materials quantity variance?
(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)
1. Standard quantity of kilograms allowed
2. Standard cost allowed for actual output
3. Materials spending variance
4. Materials price variance
Materials quantity variance
Answer:
1. Standard quantity of kilograms allowed 2508kg
2. Standard cost allowed for actual output $17,556
3. Materials spending variance $502 Unfavorable
4. Materials price variance $1094Favorable
Materials quantity variance $1596 unfavorable
Explanation:
1. Calculation to determine the standard quantity of kilograms of foam
Standard quantity of kilograms allowed = 0.66*3800
Standard quantity of kilograms allowed =2508kg
2. Calculation to determine the standard materials cost allowed
Standard cost allowed for actual output = 2508kg *7
Standard cost allowed for actual output=$17,556
3. Calculation to determine the materials spending variance using this formula
Material spending variance = Standard cost - Actual cost
Let plug in the formula
Material spending variance= $17,556- $18,058
Material spending variance= $502 Unfavorable
4. Calculation to determine the materials price variance and the materials quantity variance
Material price variance = (7- $18,058/2,736)*2,736
Material price variance = $1094Favorable
Material quantity variance =(2508kg-2,736)*7
Material quantity variance= $1596 unfavorable
Therefore:
1. Standard quantity of kilograms allowed 2508kg
2. Standard cost allowed for actual output $17,556
3. Materials spending variance $502 Unfavorable
4. Materials price variance $1094Favorable
Materials quantity variance $1596 unfavorable
Amy and Builders Corporation enter into a contract in which Amy agrees to deliver cement to Builders at a construction site. They neglect to include a price in the agreement. A court will a. determine a reasonable price for the cement and insert it into the contract. b. leave the parties in the position in which it found them. c. refuse to enforce the agreement. d. select the lowest quoted price for cement and insert it into the contract.
Answer:
a. determine a reasonable price for the cement and insert it into the contract.
Explanation:
Since in the question it is mentioned that the amy & builders corporation would entered into a contract where amy agrees to deliver the cement at the construction site. At the same time they deny to include the price in the agreement. So here the court would say that calculate the price for the cement and the same would be involved in the contract as without price the contract is not valid
Hence, the option a is correct
Novak Corp. has 6000 shares of 5%, $100 par value, cumulative preferred stock and 12000 shares of $1 par value common stock outstanding at December 31, 2020. There were no dividends declared in 2018. The board of directors declares and pays a $55800 dividend in 2019 and in 2020. What is the amount of dividends received by the common stockholders in 2020
Answer:
See below
Explanation:
Given the above data,
Preferred shares = 6,000 shares × $100 = $600,000
Dividend on preference shares = $600,000 × 5% = $30,000 per year
Dividend declared in 2019
= $55,800
Preferred dividend in 2019 = $30,000 × 2 = $60,000
Dividend declared in 2020 =$55,800
Preferred dividend declared in 2020 = $30,000 + $4,200 = $34,200
Dividend paid to common stock holders = $55,800 - $34,200 = $21,600
Management of Mittel Company would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported: Inspection time 0.3 days Wait time (from order to start of production) 16.6 days Process time 2.8 days Move time 1.0 days Queue time 4.2 days
1. Compute the throughput time.
2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your answer to 2 decimal places.)
3. What percentage of the throughput time was spent in non–value-added activities? (Enter your answer as a percentage (i.e., 0.12 should be entered as 12).)
4. Compute the delivery cycle time.
5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your percentage answer to 1 decimal place (i.e., 0.123 should be entered as 12.3).)
Answer:
1. Throughput time = Process time + Inspection time + Move time + Queue time
Throughput time = 2.8 + 0.3 + 1 + 4.2
Throughput time = 8.3 days
2. Manufacturing cycle efficiency = Value added time/Throughput time
Manufacturing cycle efficiency = 2.8/8.3
Manufacturing cycle efficiency = 0.3373493976
Manufacturing cycle efficiency = 0.34
3. Percentage of the throughput time spent in non-value-added activities:
= 1 - 0.34
= 0.66
= 66%
4. Delivery cycle time = Wait time + Throughput time
Delivery cycle time = 16.6 + 8.3
Delivery cycle time = 24.9
Delivery cycle time = 25 days
5. New throughput time = Process time + Inspection time + Move time + Queue time
New throughput time = 2.8 + 0.3 + 1
New throughput time = 4.1
Manufacturing cycle efficiency = Value added time/Throughput time
Manufacturing cycle efficiency = 2.8/4.1
Manufacturing cycle efficiency = 0.6829268292682927
Manufacturing cycle efficiency = 68.30%
Pankraz Corporation, a calendar year taxpayer, is formed on April 1, 2020. In connection with its formation, it incurs organizational expenditures of $54,000. Pankraz wants to claim as much of these expenses as soon as possible. Round per month amount to two decimal places. Round your final answer to the nearest dollar. Therefore, its deduction for 2020 is $fill in the blank 1
Answer:
$3,650
Explanation:
Calculation to determine its deduction i
First step is to calculate the Expense
Expense=$5,000 - ($54,000 - $50,000)
Expense=$5,000-$4,000
Expense= $1,000
Second step is to calculate the Amortization
Amortization= ($54,000 - $1,000)/180 months
Amortization= $294.44 x 9 months
Amortization= $2,649.99
Amortization= $2,650 (Approximately)
Now let calculate the total deduction
Total deduction =$1,000 + $2,650
Total deduction= $3,650
Therefore, its deduction for 2020 is $3,650
The market consensus is that Analog Electronic Corporation has an ROE of 9% and a beta of 1.65. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $2.8 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 14%, and T-bills currently offer a 6% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Calculate the P/E ratio.
Answer:
a.
P0 = $7.49494949492 rounded off to $7.49
b.
P/E ratio = 2.67676767676 times rounded off to 2.68 times
Explanation:
a.
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is the dividend expected in Year 1 or next year g is the constant growth rate in dividends r is the discount rate or required rate of returnWe first need to calculate the values for D0, g and r.
D0 can be calculate by multiplying the earnings per share by (1 - Plowback Ratio)
D0 = 2.8 * (1 - 2/3)
D0 = $0.93333333333 rounded off to $0.93
To calculate the value of g, we need to multiply the ROE by the Plowback ratio.
g = 0.09 * 2/3
g = 0.06 or 6%
To calculate the value of r, we will use the CAPM equation.
r = risk free rate + Beta * (Market return - risk free rate)
r = 0.06 + 1.65 * (0.14 - 0.06)
r = 0.192 or 19.2%
P0 = 0.93333333333 * (1+0.06) / (0.192 - 0.06)
P0 = $7.49494949492 rounded off to $7.49
b.
The P/E ratio can be calculated by dividing the price per share by the earnings per share.
P/E = 7.49494949492 / 2.8
P/E ratio = 2.67676767676 times rounded off to 2.68
The Jenkins Corporation has purchased an executive jet. The company has agreed to pay $200,000 per year for the next 10 years and an additional $1,000,000 at the end of the 10th year. The seller of the jet is charging 6% annual interest. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Determine the liability that would be recorded by Jenkins.'
Answer:
Present value of liability = $2,030,412.1871 rounded off to $2,030,412.19
Explanation:
To calculate the amount that would be recorded as a liability, we need to find the present value of the jet. The present value can be calculated by discounting the cash flows provided in the question. The 200000 cash flows that will be payable every year are in the form of an ordinary annuity and their present value will be calculated using the attached formula. The present value of 1000000 that is payable at the end of the 10th year will be calculated as follows,
Present Value of Cash flow = Cash Flow / (1+r)^t
Where,
r is the discount rate t is the time periodPresent value of liability = 200000 * [(1 - (1+0.06)^-10) / 0.06] +
1000000 / (1+0.06)^10
Present value of liability = $2,030,412.1871 rounded off to $2,030,412.19
Jane Tucker is the ethics officer for a publicly traded company. She is concerned that the company does not have a mechanism for anonymous reports of issues by employees. The CEO is not inclined to spend the money required to set up a hotline or any other reporting mechanism. Which of the following statements is true about this situation?
A) As long as the company has an ethics officer to whom employees can report concerns, it has done everything necessary to enjoy the protections under the Federal Sentencing Guidelines.
B) With Jane as an ethics officer and adding in a code of ethics, the company has met the two required prongs for the Federal Sentencing Guidelines.
C) Without an anonymous reporting system, the company does not meet the minimum requirements for the protections of the Federal Sentencing Guidelines.
D) The Federal Sentencing Guidelines protections do not apply to publicly traded companies under Dodd-Frank.
Answer: C) Without an anonymous reporting system, the company does not meet the minimum requirements for the protections of the Federal Sentencing Guidelines.
Explanation:
Based on the information given, it should be noted that since there's no anonymous reporting system, the minimum requirements for the protections of Federal Sentencing Guidelines isn't met by the company.
The Federal Sentencing Guidelines simply refers to the rules that with regards to the uniform policy through which the individuals and the organizations that have been convicted of felonies and every other misdemeanors are set up. In this case, the requirements hasn't been met since there is no anonymous reporting system.
One day, Barry the Barber, Inc., collects $400 for haircuts. Over this day, his equipment depreciates in value by $50. Of the remaining $350, Barry sends $30 to the government in sales taxes, takes home $220 in wages, and retains $100 in his business to add new equipment in the future. From the $220 that Barry takes home, he pays $70 in income taxes.
a. gross domestic product
b. net national product
c. national income
d. personal income
e. disposable personal income
Answer: See explanation
Explanation:
a. gross domestic product
The GDP is $400 which is the money that Barry collects for haircut.
b. net national product
Net National Product:
= GDP – Depriciation
= $400 - $50
= $350
c. national income
The national income is the total income that the residents of the country earns and this will be same as Net National Product which is $350
d. personal income
Personal income:
= National income – Retained earnings
= $350 - $100 - $30
= $220
e. disposable personal income
Disposable personal income:
= Personal income – Personal tax
= $220 - $70
= $150
A company has current assets of 100,000, total assets of 250,000, current liabilities of 20,000, and long-term liabilities of 50,000. How much of its existing current assets can the company use to acquire equipment without allowing its current ratio to decline below 2.0 to 1
Answer:
$60,000
Explanation:
The computation is shown below
Here the current liabilities is $20,000
And, the current ratio is 2:1
So, as we know that
The current ratio = Current assets ÷ current liabilities
So, the current asset is $40,000
= $40,000 ÷ 20,000
= 2.0 to 1
Now the amount required to purchase an equipment is
= $100,000 - $40,000
= $60,000
Ahnberg Corporation had 660,000 shares of common stock issued and outstanding at January 1. No common shares were issued during the year, but on January 1, Ahnberg issued 280,000 shares of convertible preferred stock. The preferred shares are convertible into 560,000 shares of common stock. During the year Ahnberg paid $168,000 cash dividends on the preferred stock. Net income was $1,950,000.
What were Ahnberg's basic and diluted earnings per share for the year? (Round your answers to 2 decimal places.)
Answer:
Basic Earnings per share=$2.70
Diluted earnings per share(EPS)=$1.50
Explanation:
Earnings per share is the total earnings attributable to ordinary shareholders divided by the number of units of common stock .
It represents profit per unit of stock unit held by common stock holder investor. The higher, the more profitable and the better.
Earnings per share = Earnings attributable to ordinary shareholders / units of common stock
Earnings attributable to ordinary shareholders= Net income after tax - preference dividend
Net Income for the year $1,950,000
Preference Dividend $168,000
Earnings attributable to ordinary shareholders for 2021= 1,950,000-168,000=1,782,000
Basic Earnings per share=$1,782,000/660,000shares=$2.70
Basic Earnings per share=$2.70
Diluted earnings per share(EPS)=Earnings attributable to ordinary shareholders/ Total number of shares assuming conversion
Diluted earnings per share(EPS)=$1,782,000/(660,000+560,000) units
Diluted earnings per share(EPS)=$1.50
You have $100 you have $100 to invest. If you can earn 12% interest, about how long does it take for your $100 investment to grow to $200? Suppose the interest rate is just half that, at 6%. At half the interest rate, does it take twice as long to double your money? Why or why not? How long does it take
Answer:
8.33333 years ;
Yes, the time doubles.
Explanation:
Investment amount = principal = $100
Interest rate, r = 12%
Time taken for investment to grow to $200
Using the simple interest formula :
A = P(1 + rt) ; t = time taken ; A = final amount = $200
200 = 100(1 + 0.12t)
200 = 100 + 12t
200 - 100 = 12t
100 = 12t
t = 100 / 12
t = 8.333 years
Time taken, if rate, r = 6%
200 = 100(1 + 0.06t)
200 = 100 + 6t
200 - 100 = 6t
100 = 6t
t = 100 / 6
t = 16.6666 years
The market consensus is that Analog Electronic Corporation has an ROE of 9% and a beta of 1.70. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $3.6 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 15%, and T-bills currently offer a 5% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
$7.95
Explanation:
The computation of the price at which the stock should sell is shown below;
But before we need to determine the following calculations
Sustainable growth rate, g is
= ROE × b
= 9% × (2 ÷3)
= 6%
Now
Cost of Equity = Rf + beta × (Rm - Rf)
= 5% + 1.70 ×(15% - 5%)
= 22%
Now finally the Price is
= D1 ÷ (r - g)
= $3.6 × 1 ÷ 3 × (1 + 6%) ÷ (22% - 6%)
= $7.95
Crane Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below. Cost Net Realizable Value 12/31/20 $354,700 $331,550 12/31/21 413,510 394,540 (a) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method.
Answer and Explanation:
a. The journal entries are shown below
Cost of goods sold ($354,700 - $331,550) $23,150
To Allowance for reduction in inventory to NRV $23,150
(Being allowance for reduction is recorded)
Allowance for reduction in inventory to NRV ($23,150 - ($413,510 - $394,540)) $4,180
To Cost of good sold $4,180
(being recording of the previous loss)
These two entries should be recorded at LCNRV method
Think about a financial decision you made regarding the purchase of a big-ticket item or investment within the last five years. Provide a summary on the discussion thread, answering the following questions:What decision did you make?How prepared were you to make the decision?What was your thought process as you were making the decision?What financial information did you need to make the decision and why?What lessons have you learned that you will apply to future financial decisions?
contribution marginJayleen Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows. Carpet Kleen Floor Deodorizer Units produced and sold 5,000 4,000 Machine hours used 5,000 2,000 Sales price per unit $ 7 $ 10 Variable cost per unit $ 4 $ 8 Fixed costs of $20,000 per year are presently allocated equally between both products. If the product mix were to change, total fixed costs would remain the same. The contribution margin per machine hour for Floor Deodorizer is:
Answer:
Contribution per machine hour = $4 per machine hour
Explanation:
The contribution per machine is the total contribution made divided by the total machine hours consumed.
Contribution per machine hour = Total contribution/Total machine hours
The total contribution made = Unit contribution × unit sold
unit contribution = selling price - variable cost
= 10-8= $2 per unit
Total contribution = $2× 4,000= $8,000
Total machine hour = 2,000
Contribution per machine hour= 8,000/2,000 = $4 per machine hour
Contribution per machine hour = $4 per machine hour
