Answer: See explanation
Explanation:
The adjusting entry for depreciation on the equipment during 2018 will be calculated as:
Depreciation = (Equipment cost - Estimated residual value) / Estimated life
= ($350000 - $20000) / 8
= $41250
Debit: Depreciation = $41250
Credit: Accumulated depreciation = $41250
(To record depreciation for the year)
Spa Inc. gathered the following information related to its gift card sales for 2020, its first year of selling gift cards: Sales of nonrefundable gift cards, 2020$25,500 Gift card redemptions, 2020$18,360 Spa Inc. estimates that 95% of the value of gift cards sold in 2020 will be redeemed while 5% will remain unclaimed. Under the proportional method, what would Spa Inc. recognize for gift card breakage revenue in 2020
Answer: $969
Explanation:
Since 5% of the value of the gift card sold will be unclaimed, the amount claimed will be:
= $25500 - (5% × $25500)
= $25500 -(0.05 × $25500)
= $25500 - $1275
= $24225
We then find the percentage of the cards that have been redeemed already and this will be:
= $18360 / $24225
= 0.7579
= 76%
Therefore, breakage in revenue to be recognized will be:
= ($25500 × 5%) × 76%
= $1275 × 76%
= $1275 × 0.76
= $969
The aggregate supply curve Multiple Choice is explained by the interest rate, real-balances, and foreign purchases effects. gets steeper as the economy moves from the top of the curve to the bottom of the curve. shows the various amounts of real output that businesses will produce at each price level. is downsloping because real purchasing power increases as the price level falls.
Answer:
. shows the various amounts of real output that businesses will produce at each price level
Explanation:
Aggregate supply can be regarded as " domestic final supply" in domain of economics, it is the overall supply of services/ goods that is been produced at a particular overall price within an economy at a given period. It should be noted that aggregate supply shows the various amounts of real output that businesses will produce at each price level
Explain the significance of capital structure.
Preston Corp. is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sells for $1,100. The firm could sell, at par, $100 preferred stock which pays a 6.07 percent annual dividend, but flotation costs of 5 percent would be incurred. Preston's beta is 1.2, the risk-free rate is 3 percent, and the market risk premium is 5 percent. The firm's marginal tax rate is 40 percent. What is Preston's WACC
How would you change bankruptcy law?
The provisions of Section 706(a) of the Bankruptcy Code permit debtors to convert a Chapter 7 case into a Chapter 13 case. However, the debtor cannot convert if the Chapter 7 case previously was converted from a case filed under a different chapter on request of a creditor, the trustee, or the bankruptcy court.
What was the price of a Coca-Cola's in 1945
A bottle of Coke cost only five cents in 1945.
Answer:
5 cents
Explanation:
The 40s and 50s A bottle of Coke (there were no cans of Coke then) coats only 5 cents during those times
High financial leverage has the effect of: Group of answer choices Reducing both the firm's risk and its potential profits. Only increasing the firm's potential profits. Increasing both the firm's risk and its potential profits. None of these answers is correct. Only increasing the firm's risk.
Answer:
Increasing both the firm's risk and its potential profits
Explanation:
Workers in Transportation and Logistics careers who believe in the benefits of a union are most likely to work for
local, state, or federal governments.
nonprofit organizations that use unions.
companies that use self-employed contractors.
private companies and businesses.
HELP PLEASE
Answer:
A.) local, state, or federal governments.
Explanation:
Workers in Transportation and Logistics careers who believe in the benefits of a union are most likely to work for local, state, or federal governments. Thus, option A is correct.
What is Transportation?Transportation, the development of merchandise and people from one spot to another, and the different means by which such development is achieved.
Laborers in Transportation and Logistics vocations who have confidence in the advantages of an association are probably going to work for it. not-for-profit associations that utilize associations.
Laborers in operations vocations who put stock in the advantages of an association are probably going to work for neighborhood, state, or central legislatures.
Union have better work well-being securities and preferred paid leave over non-association laborers, and are safer practicing their freedoms in the workplace.
Therefore, option A is correct.
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Alexa and David are managers of different sales teams. Together, they decide to have a competition between teams to see who can bring in the most new clients this month. To increase the sense of competition, they create spirit days where they wear team colors (Alexa's team: blue, David's black), strategize ways to beat the other group, and keep a running total of who is winning on a white board. Alexa and David are employing______to increase productivity.
A. Social identity theory.
B. Parasocial interaction theory.
C. Leader-member exchange theory.
D. Vigilant interaction theory.
E. Expectancy theory.
Answer:
D. Vigilant interaction theory
Explanation:
It is correct to say that Alexa and David are employing the theory of vigilant interaction to increase productivity.
This theory is related to the team's decision-making process, that is, its objective is the integration and collaboration of the entire group with innovative and creative contributions that help in solving problems, helping in a more effective decision-making that contributes for the positive end result of the team.
Therefore, when using the strategy of increasing the sense of competition in the teams, managers seek the theory of vigilant interaction so that the final result and the goals of the teams are achieved.
What does ceteris paribus mean?
ОА.
other things remain unequal
OB. other things remain constant
Oc. other things remain irregular
OD. other things remain unbalanced
Ceteris paribus mean : B. other things remain constant.
What is Ceteris paribus ?Ceteris paribus was a latin word that tend to means other things remain constant or the same.
Example of Ceteris paribus is when a marketer might say "ceteris paribus, we expect sales to increase by 20% if we lower the price of our product" to show that they are assuming that all other factors affecting sales such as advertising, competition, and consumer sentiment will remain the same
Therefore the correct option is B.
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The Buck Store is considering a project that will require additional inventory of $216,000 and will increase accounts payable by $181,000. Accounts receivable are currently $525,000 and are expected to increase by 9 percent if this project is accepted. What is the project's initial cash flow for net working capital
Answer:
$607,250 outflow
Explanation:
Net Working Capital is the amount of money needed to maintain operations on a day to day basis.
Net Working Capital = Current Assets - Current Liabilities
where,
Current Assets are calculated as :
Inventory $216,000
Accounts Receivable ($525,000 x 1.09) $575,250
Total $788,250
and
Current Liabilities = $181,000
therefore,
Net Working Capital = $788,250 - $181,000 = $607,250
Conclusion
The project's initial cash flow for net working capital is $607,250 outflow.
Q 10.7: Melbee Farms is considering purchasing a new combine that would help them finish their harvesting faster, thus allowing them to pick up extra revenue by doing custom combining for other farmers. The combine and headers cost $487,000. They expect to have net cash flows of $157,000 in year 1, $182,000 in year 2, $202,000 in year 3, and $213,000 in year 4. If they discount the cash flows by 7%, what is the discounted payback period for the combine
Answer:
Discounted payback period= 3 years 1 month
Explanation:
The discounted payback period is the estimated length of time in years it takes the present value of net cash inflow from a project to equate the net cash the initial cost
To work out the discounted payback period, we will compute present value of the cash inflow and then determine how long it will take for the sum to be equal to the initial cost. This is done as follows:
Year Cash flow DF Present value
0 487,000 × 1 = (487,000)
1 157,000 × 1.07^(-1) = 146,729.0
2 182,000 × 1.07^(-2) = 158965.8
3 202,000 × 1.07^(-3) = 164,892.2
4 213,000 × 1.07^(-4) =162,496.7
Total PV for 2 years = 146729 +158965+164892= 470587.0
Balance of cash flow remaining to equal = 487,000-470587 = 16413.0
Discounted payback period = 3 years + 16413.0 /162,496.7 × 12 months
= 3year , 1.2months
Discounted payback period= 3 years 1 month
Neap, spring, high, and low are all types of ____________________.
The law of comparative advantage suggests thata.both countries would gain if Botswana traded wheat grown in Botswana for Qatar's wine.b.Qatar would not gain from trade because it has an absolute advantage in producing both goods.c.neither country would gain from trade, even if the costs for transporting the products were zero.d.both countries would gain if Botswana traded wine made in Botswana for Qatar's wheat.
Answer:
A)both countries would gain if Botswana traded wheat grown in Botswana for Qatar's wine.
Explanation:
The law of comparative advantage can be regarded as one set up by David Ricardo in the year 1817, which gives reason that is behind international trade that exist between different countries , even the business, workers as well as factories of a country have efficiency at production of every single good compare to other country.
Comparative advantage shows the ability of an economy have in production of a particular good/ service having lower opportunity cost compare to its trading partners.
You are the manager of a monopoly that faces a demand curve described by P = 63 − 5Q. Your costs are C = 10 + 3Q. The profit-maximizing output for your firm is:
Answer:
Profit-maximizing output = 6 units
Explanation:
Given:
Demand curve = P = 63 − 5Q
Cost C = 10 + 3Q
Find:
Profit-maximizing output
Computation:
In monopoly maximum profit stand where;
MR = MC
So,
TR = P x Q
TR = (63 - 5q)Q
TR = 63Q - 5Q²
MR = d(TR) / dQ
So,
MR = d[63Q - 5Q²] / dQ
MR = 63 - 10Q
MC = dC / dQ
MC = d(10+3Q) / dQ
MC = 3
So,
Profit-maximizing output
MR = MC
63 - 10Q = 3
Q = 6
Profit-maximizing output = 6 units
Bengal Co. provides the following unit sales forecast for the next three months: July August September Sales units 5,800 6,500 6,360 The company wants to end each month with ending finished goods inventory equal to 30% of the next month's sales. Finished goods inventory on June 30 is 1,740 units. The budgeted production units for July are:
Answer:
Production= 6,010
Explanation:
Giving the following information:
July August
Sales units 5,800 6,500
Finished goods inventory on June 30 is 1,740 units.
To calculate the production for July, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 5,800 + (6,500*0.3) - 1,740
Production= 6,010
An object was thrown from rest upward with an initial velocity of 10m/s with time frame of 6s find the distance of the object from it's resting point
Answer:
5.10 m
Explanation:
Given that :
Initial Velocity, u = 10m/s
Time taken, t = 6s
Distance traveled by the object , s
The final velocity, v at this point = 0
Upward throw, g = - (negative)
Using the relation :
u² =. V²-2gs
g = 9.8 m/s
10² = 0² - 2(9.8)*S
100 = 19.6S
S = 100 / 19.6
Distance traveled = 5.10 m
The difference between accrual-basis accounting and cash-basis accounting is timing. Under accrual-basis accounting, we record revenues when we provide goods and services to customers, and we record expenses when costs are used in company operations.
a. True
b. False
Answer:
A. True
Explanation:
The main difference between accrual and cash basis accounting lies in the timing of when revenue and expenses are recognized. The cash method is a more immediate recognition of revenue and expenses, while the accrual method focuses on anticipated revenue and expenses.
Dog Bone Bakery, which bakes dog treats, makes a special biscuit for dogs. Each biscuit uses 0.75 cup of pure semolina flour. They buy 4,000 cups of flour at $0.55 per cup. They use 3,588 cups of flour to make 4,800 biscuits. The standard cost per cup of flour is $0.54. A. What are the direct materials price variance, the direct materials quantity variances, and the total direct materials cost variance
Answer:
Results are below.
Explanation:
To calculate the direct material rate and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (0.55 - 0.54)*4,000
Direct material price variance= $40 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (0.75*4,800 - 3,588)*0.55
Direct material quantity variance= $6.6 favorable
Finally, the total variance:
Total direct material variance= 40 + 6.6= $46.6 favorable
Rankine Company estimates its bad debts expense by aging its accounts receivable and applying percentages to various age groups of the accounts. Rankine calculated a total of $9,600 in possible credit losses as of December 31. Accounts Receivable has a balance of $307,200, and the Allowance for Doubtful Accounts has a credit balance of $1,200 before adjustment at December 31
Required:
What is the net amount of accounts receivable that should be included in current assets?
Answer:
Date Account titles and Explanation Debit Credit
Bad Debt Expense $8,400
Allowance for doubtful account $8,400
($9,600 credit required - $1,200 already existing)
(To record bad debt expenses)
Particulars Amount
Account receivables $307,200
Less: Allowance for doubtful account $9,600
Net amount of accounts receivable $297,600
Consider the following information:
Portfolio Expected Return Beta
Risk-free 11% 0
Market 12.2 1.0
A 11.0 0.9
A. Calculate the expected return of portfolio A with a beta of 0.9.
B. What is the alpha of portfolio A.
C. If the simple CAPM is valid, is the above situation possible?
Presented below is information related to Pharoah Corporation for the current year. Beginning inventory $ 590,300 Purchases 1,472,500 Total goods available for sale $2,062,800 Sales revenue 2,455,000 Compute the ending inventory, assuming that (a) gross profit is 46% of sales, (b) gross profit is 60% of cost, (c) gross profit is 36% of sales, and (d) gross profit is 25% of cost.
Answer:
a. $948,888
b. $773,550
c. $1,237,680
d. $412,560
Explanation:
The Ending Inventory is calculated using the missing figure approach or the Gross Margin technique.
that is,
Ending Inventory = Cost of Goods Available for Sale - Cost of Sales
thus,
This can be clearly done by writing up a Trading Account as shown below for each scenario.
also remember,
Cost + Profit = Sales
so for those based on cost use this formula.
for example : gross profit is 60% of cost
will be : 100 % + 60 % = 160 %
Part a
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($948,888) ($1,113,912)
Gross Profit $948,888
Part b
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($773,550) ($1,289,250)
Gross Profit $773,550
Part c
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($1,237,680) ($825,120)
Gross Profit $1,237,680
Part d
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($948,888) ($1,113,912)
Gross Profit $948,888
Part a
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($412,560) ($1,650,240)
Gross Profit $412,560
Suppose that a worker in Radioland can produce either 5 radios or 1 television per year, and a worker in Teeveeland can produce either 1 radios or 5 televisions per year. Each nation has 100 workers. Also, suppose that each country completely specializes in producing the good in which it has a comparative advantage. If Radioland trades 50 radios to Teeveeland in exchange for 50 televisions each year, then each country's maximum consumption of new radios and televisions per year will be
Answer:
450 radios 50 televisions in radioland and 50 radios 450 televisions in Teeveeland.
Explanation:
In radioland 5 radios are equivalent to one television. Then 1 radio will be equivalent to 0.2 of television. The opportunity cost for each radio is 0.2. In teeveeland the cost of 1 radio is 5 televisions. Hence radioland has comparative advantage in producing radios and Teeveeland has comparative advantage is producing televisions.
Choose, define, and restrict a topic based on a problem or issue you might deal with in one of the following divisions of a company: a. IT b. human resources/diversity c. security d. marketing e. accounting f. health care/health risks g. energy/utilities h. animal rights i. transportation j. environment Discuss the steps you took to narrow the topic, the audience you would be writing for, and the types of questions that audience may have.
Answer:
Human resource department is the one of the most important department in any organization. It has to deal with the concerns and problems of all the employees and satisfy them positively.
Explanation:
Human resource department is the first go to department for any employee when he faces some problem related to discrimination, demotivation, stressed or low pay. It is responsibility of human resource department to solve the problems that employees are facing. They have to resolve any issues that an employee is facing and assure him that his concerns will be dealt with pure justice.
Gartner Manufacturing Inc. purchases a component from a Malaysian supplier. The demand for that component is exactly 70 units each day. The company is open for business 250 days each year. When the company reorders the product, the lead time from the supplier is exactly 10 days. The product costs $14.00. The company determined that its inventory carrying cost is 20%. The company's order cost is $30.00. How many orders per year will be made, when using the EOQ
Answer:
Number of orders= 28.59 = 29 orders
Explanation:
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding cost
D= 70*250= 17,500
S= $30
H= 14*0.2= $2.8
Now, using the formula:
EOQ= √[(2*17,500*30) / 2.8]
EOQ= √375,000
EOQ= 612.37 = 612
Finally, the number of orders:
Number of orders= total demand / EOQ
Number of orders= 17,500 / 612
Number of orders= 28.59 = 29 orders
Mike and Marianne pulled their resources together to open a coffee place. They each put $20,000 and also took a bank loan of $20,000. Interest rate the bank charges is 8% and estimated tax rate is 30% for their business. If they both want a 12% return on their investment, what is the weighted average cost of capital
Answer:
WACC= 9.8%
Explanation:
The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool.
After-tax cost of debt = (1- tax rate) × before tax cost of debt
= (1-0.3)× 8% = 5.6%
Total Equity = 20,000× 2= 40,000.
Bank loan = 20,000
Total value fund = 40,000 + 20,000 = 60,000
WACC= 5.5%× (2/6) + 12%× (4/6) = 9.8%
WACC= 9.8%
) Prestwich Company has budgeted production for next year as follows: First Quarter Second Quarter Third Quarter Fourth Quarter Production in units 60,000 80,000 90,000 70,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. The cost of material A is $3 per pound. Prestwich pays for 60% of the purchases in the month of purchase and 40% in the following month. a. What would be the budgeted purchases of material A in pounds for the second quarter
Answer:
165,000 pounds ($495,000)
Explanation:
To determine the budgeted purchases of material A in pounds for the second quarter, prepare a Materials Purchases Budget as follows :
Materials Purchases Budget
Pounds
Materials Required for Production (80,000 x 2) 160,000
Add Closing Materials Inventory (90,000 x 2 x 25%) 45,000
Total Materials 205,000
Less Opening Materials Inventory (80,000 x 2 x 25%) (40,000)
Material Purchases 165,000
Cost per unit $3
Budgeted Materials Cost $495,000
The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $24 million Operating costs (not including depreciation) $9 million Depreciation $5 million Interest expense $4 million The company faces a 25% tax rate. What is the project's operating cash flow for the first year (t = 1)? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Round your answer to the nearest dollar.
Answer: $12,500,000
Explanation:
Sales = $24,000,000
Less: Operating cost = $9,000,000
Less,l: Depreciation = $5,000,000
Earning before interest and tax = $10,000,000
Less: Tax at 25% EBIT = $2,500,000
Net income before interest = $7,500,000
Add: Depreciation = $5,000,000
Operating cashflow = $12,500,000
You are a seller of farm equipment. Sidney Lanier puts in an order for a new combine harvester, which costs $425,000. Under the terms of the agreement, Mr. Lanier has to forward you a certified check for 25% of the purchase price within 15 days of the signing of the purchase agreement. Meanwhile you are preparing the combine harvester for shipment to Sidney Lanier's farm.
On the 15th day, you do not receive a check from Mr. Lanier. You do not receive a check on the 16th, 17th, or 18th day either. Meanwhile, another farmer has come into your office to ask about buying the combine harvester.
What can you do in this situation?
A. Since you and Mr. Lanier have a contract, you have to wait until he sends you the check before you can do anything.
B. Mr. Lanier had a duty to send you a check by the 15th. He's breached that duty under the contract, and it appears to be a material breach, so you have the right to rescind the contract.
Answer: B. Mr. Lanier had a duty to send you a check by the 15th. He's breached that duty under the contract, and it appears to be a material breach, so you have the right to rescind the contract.
Explanation:
Material breach occurs when a particular party fails to fulfill his or her part in a contract and this can lead to the other party rescinding the contract or sue for a breach of contract.
Since under the terms of the agreement, Mr. Lanier has to forward a certified check for 25% of the purchase price within 15 days of the signing of the purchase agreement but he didn't send the check, this means that the there's a breach in the contract, and the contract can be rescinded.
Cala Manufacturing purchases land for $281,000 as part of its plans to build a new plant. The company pays $35,400 to tear down an old building on the lot and $52,330 to fill and level the lot. It also pays construction costs $1,320,800 for the new building and $83,373 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.
