Answer:
Annual deposit = $4100
Explanation:
Annual deposit = $4100
Number of years for retirement = 30 years
Future value of money = $1000000
Interest rate = 12%
Now use the below formula to find the annuity amount.
Annual deposit = Future value (A/F, r, n)
Annual deposit = 1000000 (A/F, 12%, 30)
Annual deposit = 1000000(0.0041)
Annual deposit = $4100
The amount Mr Hopper should put in his retirement fund each year is $4143.66.
In order to determine the amount of money Mr. Hopper should deposit each year, this formula would be used:
Yearly payment = future value / annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
R = interest rate
N = number of years
Annuity factor = [(1.12)^30 - 1] / 0.12 = 241.332684
Yearly payment = $1,000,000 / 241.332684 = $4143.66
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Sep. 3 Purchased merchandise inventory on account from Shallin Wholesalers, $7,000. Terms 1/15, n/EOM, FOB shipping point.
Sep. 4 Paid freight bill of $55 on September 3 purchase.
Sep. 4 Purchase merchandise inventory for cash of $2,100.
Sep. 6 Returned $1,000 of inventory from September 3 purchase.
Sep. 8 Sold merchandise inventory to Herenda Company, $5,500, on account. Terms 1/15, n/35. Cost of goods, $2,255.
Sep. 9 Purchased merchandise inventory on account from Tripp Wholesalers, $10,000. Terms 1/10, n/30, FOB destination.
Sep. 10 Made payment to Shallin Wholesalers for goods purchased on September 3, less return and discount.
Sep. 12 Received payment from Hilton Company, less discount.
13. After negotiations, I received a $100 allowance from Tristan Wholesalers.
15.Sold merchandise inventory to Jesper Company, $3,500, on the account. Terms n/EOM. Cost of goods, $1,610
22.Made payment, less allowance, to Tristan Wholesalers for goods purchased on September 9
23. Jesper Company returned $800 of the merchandise sold on September 15. Cost of goods, $368
25. Sold merchandise inventory to Smithson for $2,000 on account that cost $780 Terms of 3/10, n/30 was offered, FOB shipping point. As a courtesy to Smithson, $55 of freight was added to the invoice for which cash was paid by Oceanic
29. Received payment from Smithson, less discount.
30. Received payment from Jesper Company, less return.
Required:
Journalize the transaction.
Answer:
Sep. 3
Dr Merchandise Inventory $7,000
Cr Accounts Payable—Shallin Wholesalers $7,000
Sep. 4
Dr Merchandise Inventory $55
Cr Cash $55
Sep. 4
Dr Merchandise Inventory $2,100
Cr Cash $2,100
Sep. 6
Dr Accounts Payable—Shallin Wholesalers $1,000
Cr Inventory $1,000
Sep. 8
Dr Accounts Receivable— Herenda Company $5,445
Cr Sales Revenue $5,445
Sep. 8
Dr Cost of Goods Sold $2,255
Cr Merchandise Inventory $2,255
Sep. 9
Dr Merchandise Inventory $10,000
Cr Accounts Payable—Tripp Wholesalers $10,000
Sep. 10
Dr Accounts Payable—Shallin Wholesalers $6,000
Cr Merchandise Inventory $60
Cr Cash $5,940
Sep. 12
Dr Cash $5,445
Accounts Receivable—Herenda Company $5,445
Sep. 13
Dr Accounts Payable—Tristan Wholesalers $100
Cr Merchandise Inventory $100
Sep. 15
Dr Accounts Receivable—Jesper Company $3,500
Cr Sales Revenue $3,500
Sep. 15
Dr Cost of Goods Sold $1,610
Cr Merchandise Inventory $1,610
Sep. 22
Dr Accounts Payable—Tristan Wholesalers $9,900
Cr Cash $9,900
Sep. 23
Dr Refunds Payable $800
Cr Accounts Receivable—Jesper Company $800
Sep. 23
Dr Merchandise Inventory $368
Cr Estimated Returns Inventory $368
Sep. 25
Dr Accounts Receivable—Smithson $1,995
Cr Sales Revenue $1,940
Cr Cash $55
Sep. 25
Dr Cost of Goods Sold $780
Cr Merchandise Inventory $780
Sep. 29
Dr Cash $1,995
Cr Accounts Receivable— Smithson $1,995
Sep. 30
Dr Cash $2,100
Cr Accounts Receivable—Jesper Company $2,100
Explanation:
Preparation of the journal entries
Sep. 3
Dr Merchandise Inventory $7,000
Cr Accounts Payable—Shallin Wholesalers $7,000
Sep. 4
Dr Merchandise Inventory $55
Cr Cash $55
Sep. 4
Dr Merchandise Inventory $2,100
Cr Cash $2,100
Sep. 6
Dr Accounts Payable—Shallin Wholesalers $1,000
Cr Inventory $1,000
Sep. 8
Dr Accounts Receivable— Herenda Company $5,445
Cr Sales Revenue $5,445
[$5,500-(1%*$5,500)]
Sep. 8
Dr Cost of Goods Sold $2,255
Cr Merchandise Inventory $2,255
Sep. 9
Dr Merchandise Inventory $10,000
Cr Accounts Payable—Tripp Wholesalers $10,000
Sep. 10
Dr Accounts Payable—Shallin Wholesalers $6,000
($7,000-$1,000)
Cr Merchandise Inventory $60
(1%*$6,000)
Cr Cash $5,940
($6,000-$60)
Sep. 12
Dr Cash $5,445
[$5,500-(1%*$5,500)]
Accounts Receivable—Herenda Company $5,445
Sep. 13
Dr Accounts Payable—Tristan Wholesalers $100
Cr Merchandise Inventory $100
Sep. 15
Dr Accounts Receivable—Jesper Company $3,500
Cr Sales Revenue $3,500
Sep. 15
Dr Cost of Goods Sold $1,610
Cr Merchandise Inventory $1,610
Sep. 22
Dr Accounts Payable—Tristan Wholesalers $9,900
Cr Cash $9,900
($10,000-$100)
Sep. 23
Dr Refunds Payable $800
Cr Accounts Receivable—Jesper Company $800
Sep. 23
Dr Merchandise Inventory $368
Cr Estimated Returns Inventory $368
Sep. 25
Dr Accounts Receivable—Smithson $1,995
($1,940+$55)
Cr Sales Revenue $1,940
[$2,000-(3%*$2,000)]
Cr Cash $55
Sep. 25
Dr Cost of Goods Sold $780
Cr Merchandise Inventory $780
Sep. 29
Dr Cash $1,995
($1,940+$55)
Cr Accounts Receivable— Smithson $1,995
Sep. 30
Dr Cash $2,100
Cr Accounts Receivable—Jesper Company $2,100
The first step in the control process is ________. A) setting the desired morals
B) measuring actual performance
C) comparing performance against expectations D) applying managerial control
Answer:
comparing performance against expectations
Juanita is the sole shareholder of Belize Corporation (a calendar-year S corporation). She is considering revoking the S election. It is February 1, year 1. What options does Juanita have for timing the effective date of the S election revocation
Answer:
January 1 Year 2 would be an effective date.
Explanation:
Juanita have two ( 2 ) options and they are
Terminating the election after March 15th Terminating the Election at the beginning of the next Financial yearSince it is already February 1 Year 1 , The most effective date for the S election revocation would be January 1 year 2 ( calendar-year of S corporation ) .
The Employee Retirement Income Security Act (ERISA) of 1974 states that employees must be told about their benefits: __________
a. In a way that clearly specifies advantages and disadvantages of various benefits programs.
b. According to state statutes on benefits dissemination.
c. In a way that the average employee can understand.
d. In a way that clearly lays out unexpected costs that might be associated with choosing certain benefits
Answer:
c. In a way that the average employee can understand.
Explanation:
The Employee Retirement Income Security Act of 1974 is a federal labor and tax law of the United States of America. It is also referred to as the Employee Benefit Security Act and it was originally published (effective) on the 2nd of September, 1974 and was mainly focused on providing pension reforms for the employees working in the United States of America.
Basically, the Employee Retirement Income Security Act (ERISA) of 1974 sets the minimum standards for the administration of retirement (pension) and healthcare plans in the private sector or industry.
Hence, the Employee Retirement Income Security Act (ERISA) of 1974 states that employees must be told about their benefits such as plan features and funding, in a way that the average employee can understand.
June:
1 James Co. purchased merchandise on account from O’Leary Co., $90,000, terms n/30. The cost of merchandise sold was $54,000.
30 James Co. issued a 60-day, 5% note for $90,000 on account.
Aug. 29 James Co. paid the amount due.
Required:
Journalize the above transaction, 90,000 assuming a 360-day year is used for interest calculations.
Answer:
James Co. (Borrower)
June 1
Debit Merchandise Inventory $90,000
Credit Accounts Payable $90,000
June 30
Debit Accounts Payable $90,000
Credit Notes Payable $90,000
August 29
Debit Notes Payable $90,000
Debit Interest on Notes $750
Credit Cash Account $90,750
O’Leary Co. (Creditor)
June 1
Dr Accounts Receivable $90,000
Cr Sales $90,000
30
Dr Notes Receivable $90,000
Cr Accounts Receivable $90,000
Aug. 29
Dr Cash $90,750
Cr Notes Receivable $90,000
Cr Interest Revenue $750
Explanation:
Preparation of the journal entries
James Co. (Borrower)
June 1
Debit Merchandise Inventory $90,000
Credit Accounts Payable $90,000
(To record the purchase of merchandise on account)
June 30
Debit Accounts Payable $90,000
Credit Notes Payable $90,000
(To record the issue of a 60-day, 5% note)
August 29
Debit Notes Payable $90,000
Debit Interest on Notes $750
($90,000 * 5% * 60/360)
Credit Cash Account $90,750
($90,000+$750)
(To record the payment of the notes plus interest)
O’Leary Co. (Creditor)
June 1
Dr Accounts Receivable $90,000
Cr Sales $90,000
30
Dr Notes Receivable $90,000
Cr Accounts Receivable $90,000
Aug. 29
Dr Cash $90,750
($90,000+$750)
Cr Notes Receivable $90,000
Cr Interest Revenue $750
($90,000 * 5% * 60/360)
Burns Corporation's net income last year was $99,200. Changes in the company's balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Cash and cash equivalents $ 21,900 Accounts receivable $ 13,500 Inventory $ (16,800 ) Prepaid expenses $ 4,100 Long-term investments $ 10,200 Property, plant, and equipment $ 77,000 Accumulated depreciation $ 33,200 Liability and Equity Accounts: Accounts payable $ (19,600 ) Accrued liabilities $ 16,800 Income taxes payable $ 4,200 Bonds payable $ (61,200 ) Common stock $ 41,600 Retained earnings $ 94,900 The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,300. Required: a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) b. Prepare the investing activities section of the company's statement of cash flows for the year. c. Prepare the financing activities section of the company's statement of cash flows for the year.
Answer and Explanation:
The preparation of the each section of the cash flow statement is presented below:
a.
Cash flow from operating activities
Net Income $99,200
Adjustments made
Adjustment for non cash effects
Depreciation $33,200
Change in operating assets & liabilities
Increase in accounts receivable -$13,500
Decrease in inventories $16,800
Increase in prepaid expenses -$4,100
Decrease in accounts payable -$19,600
Increase in accrued liabilities $16,800
Increase in income tax payable $4,200
Net cash flow from operating activities (a) $133,000
b.
Cash Flow from Investing activities
Equipment purchased -$77,000
Long term investments purchased -$10,200
Net cash Flow from Investing activities (b) -$87,200
c
Cash Flow from Financing activities
Cash dividends -$4,300
Issuance of the Common stock $41,600
Bonds paid $-61,200
Net cash Flow from Financing activities (c) -$23,900
The marketing team for Lots-o-Chocolate wants to understand the effectiveness of the different components of its digital marketing campaign and put more resources toward its three top-performing sites for ads. How can the marketing team use marketing metrics and marketing control to achieve their objective
Answer:
The top 3 campaigns ( sites for ads ) with the highest values of the metrics mentioned below should be picked that way the team will achieve their objective.
Explanation:
For a marketing team To understand the effectiveness of the different components of its campaigns there are certain factors/metrics they should consider/lookout for in each of the various components and they are
i) conversation rate of the various components of the marketing campaigns
ii) Number of clicks/site visits from the various components
iii) Reach of each component to potential customers or returning customers.
When these metrics are checked the, The top 3 campaigns ( sites for ads ) with the highest values of the metrics should be picked.
Niendorf Corporation's 25-year maturity bonds have an 8.75% coupon rate with interest paid semiannually, and a par value of $1,000. if your required rate of return is 13% what is the intrinsic value of the bond
Answer: $687.10
Explanation:
The value of a bond is the present value of the bond's coupon payments plus the present value of the bond's par value at maturity.
First convert terms to semi-annual periods as the coupon rate is semi annual:
Coupon payment = (1,000 * 8.75%) / 2 = $43.75
Required return = 13% / 2 = 6.5%
Number of periods = 25 * 2 = 50 semi annual periods
The coupon payment is an annuity so the value of the bond is:
= Present value of annuity + Present value of par
= (43.75 * ( 1 - (1 + 6.5%) ⁻⁵⁰) / 6.5%) + 1,000 / ( 1 + 6.5%)⁵⁰
= $687.10
Minor Electric has received a special one-time order for 1,100 light fixtures (units) at $9 per unit. Minor currently produces and sells 8,500 units at $11.00 each. This level represents 85% of its capacity. Production costs for these units are $8.50 per unit, which includes $6.50 variable cost and $2.00 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,200 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. Should the company accept the special order
Answer:
Minor Electric
The company should accept the special order. It makes a unit contribution of $1.41, which amounts to $1,551 in total.
Explanation:
a) Data and Calculations:
Special order received for light fixtures = 1,100 units
Price of special order = $9 per unit
Production and sales units = 8,500 = 85% capacity
Total capacity = 10,000 units (8,500/0.85)
Selling price at production and sales units = $11.00 each
Production costs per unit = $8.50
Variable cost per unit = $6.50
Fixed cost per unit = $2
Cost of new machine required for special order = $1,200
Special order costs:
Variable cost per unit = $7,150 ($6.50 * 1,100)
Cost of new machine = 1,200
Total relevant costs = $8,350
Unit cost = $7.59 ($8,350/1,100)
Selling price = $9.00
Contribution per unit = $1.41
Required information Use the following information for Exercises 16-18 below. Skip to question [The following information applies to the questions displayed below.] Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s records show the following selected accounts and amounts for the month of August. Cash $ 25,270 Dividends $ 5,910 Accounts receivable 22,280 Consulting fees earned 26,920 Office supplies 5,150 Rent expense 9,460 Land 43,940 Salaries expense 5,510 Office equipment 19,910 Telephone expense 760 Accounts payable 10,700 Miscellaneous expenses 430 Common stock 101,000 Exercise 2-16 Preparing an income statement LO C3, P3 Use the above information to prepare an August income statement for the business.HELP TODAY Balance Sheet Liabilities: 25,310 Accounts payable 22,320 5,200 Equity: 19,960 Common stock 43,970 Retained earnings Assets: ces Cash $ 10,700 Accounts receivable Office supplies Office equipment Land 101,400 4,660 Total equity $ 116,760 Total Liabilities and Equity 106,060 Total Assets 116,760
Answer:
Help Today
HELP TODAY
Income Statement for the year ended August 31,
Consulting fees earned $26,920
Office supplies $5,150
Rent expense 9,460
Salaries expense 5,510
Telephone expense 760
Miscellaneous expenses 430 $21,310
Net income $5,610
Dividends (5,910)
Retained earnings ($300)
HELP TODAY
Balance Sheet as of August 31
Assets
Current assets:
Cash $ 25,270
Accounts receivable 22,280 $47,550
Long-term assets:
Land 43,940
Office equipment 19,910 $63,850
Total assets $111,400
Liabilities and Equity
Current liabilities:
Accounts payable $10,700
Equity:
Common stock 101,000
Retained earnings (300) $100,700
Total liabilities and equity $111,400
Explanation:
a) Data and Calculations:
Cash $ 25,270
Dividends $ 5,910
Accounts receivable 22,280
Land 43,940
Office equipment 19,910
Accounts payable 10,700
Common stock 101,000
Consulting fees earned 26,920
Office supplies 5,150
Rent expense 9,460
Salaries expense 5,510
Telephone expense 760
Miscellaneous expenses 430
Better Corp. (BC) began operations on January 1, Year 1. During Year 1, BC experienced the following accounting events: 1. Acquired $7,000 cash from the issue of common stock. 2. Borrowed $12,000 cash from the State Bank. 3. Collected $47,000 cash as a result of providing services to customers. 4. Paid $30,000 for operating expenses. 5. Paid an $8,000 cash dividend to the stockholders. 6. Paid $20,000 cash to purchase land.Required:a. Record the events in an accounting equation like the one shown next. Record the ined Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown amounts of revenue, expense, and dividends in as an example.b. As of December 31, Year 1, determine the total amount of assets, liabilities, and stockholders’ equity and prepare a balance sheet.c. What is the amount of total assets, liabilities, and stockholders’ equity as of January 1, Year 2?d. Assume that the land has a market value of $22,000 as of December 31, Year 1. At what amount will the land be shown on the December 31, Year 1, balance sheet? Why is this amount used in the balance sheet?
Answer:
Better Corp. (BC)
a. Accounting Equation
Assets = Liabilities + Equity
1. Cash $7,000 Common stock $7,000
2. Cash $12,000 Bank loan payable $12,000
3. Cash $47,000 Service Revenue $47,000
4. Cash ($30,000) Op. expenses ($30,000)
5. Cash ($8,000) Cash dividend ($8,000)
6. Land $20,000 Cash ($20,000)
Assets $28,000 = Liabilities $12,000 + Equity $16,000
b. December 31, Year 1 Balances:
Total assets = $28,000
Total liabilities = $12,000
Stockholders' equity = $16,000
Balance Sheet as of December 31, Year 1
Assets:
Cash $8,000
Land $20,000
Total assets $28,000
Liabilities:
Bank loan $12,000
Equity:
Common stock $7,000
R/Earnings 9,000
Total equity $16,000
Liabilities and
Equity $28,000
c. January 1, Year 2 Balances:
Total assets = $28,000
Total liabilities = $12,000
Total equity = $16,000
d. The Land will be shown on the December 31, Year balance sheet at $20,000. The reason is that this is the acquisition cost and the land is not held for trading (no information provided).
Explanation:
a) Data and Analysis based on the Accounting Equation:
1. Cash $7,000 Common stock $7,000
2. Cash $12,000 Bank loan payable $12,000
3. Cash $47,000 Service Revenue $47,000
4. Cash ($30,000) Operating expenses ($30,000)
5. Cash ($8,000) Cash dividend ($8,000)
6. Land $20,000 Cash ($20,000)
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $31,000. The estimated useful life was five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units.
Required:
a. Which method will result in the highest net income in year 2?
b. Does this higher net income mean the machine was used more efficiently under this depreciation method?
Answer:
Straight line depreciation
no
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
(31,000 - 3000) / 5 = $5,600
depreciation expense each year is 5600
Activity method based on output = (output produced that year / total output of the machine) x (Cost of asset - Salvage value)
(3000 / 10,000) x (31,000 - 3000) = 8400
Double declining =
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
2/5 x 31000 = 12400
year 2 = 2/5 x(31,000 - 12400) = 7440
An investigator planning to study behavioral changes during alcohol intoxication will pay subjects $600 for 6 hours of testing that includes drinking a moderate level of alcohol and completing several written questionnaires. He plans to recruit college students taking his courses, as well as economically disadvantaged and homeless people. Which of the following is the most important for the investigator to address before submitting the protocol to the IRB?
a. Potential undue influence or coercion of subjects
b. Method of payment to subjects
c. Forms of advertising for subject recruitment
d. Literacy of homeless subjects
Answer:
Potential undue influence or coercion of subjects
Explanation:
In research, offering to pay participant can can in a huge way influence a research the subject's decision making in consenting to the research. Without payment, the said subject may decide to participate or not. researchers do often recruit subjects without offering payments, with volunteer subjects participating completely for altruistic rewards ot free will. sometimes research projects do offer remuneration to thd subjects so as to compensate them for their time, inconvenience, discomfort etc. So as to attract a good numbers of subjects.
Coercion
This occurs as a result of overt threat of harm. This is done intentionally by one person to another in order to get compliance to whatever they may say.
Undue influence
This simply occurs also due to throughout offer of an excessive, unwarranted, inappropriate or improper reward so as to get the needed compliance.
Suppose the U.S. yield curve is flat at 3% and the euro yield curve is flat at 5%. The current exchange rate is $1.4 per euro. What will be the swap rate on an agreement to exchange currency over a 3-year period
Answer: hello your question is incomplete attached below is the complete question.
answer :
3.02 million, 2.96 million, 2.91 million
Explanation:
Determine the swap rate over a 3-year period
swap rate = forward exchange rate * exchange amount
For year 1
1.4 * ( 1 + 0.03 / 1 + 0.05 ) * 2.2 million
= 1.4 ( 0.98095 ) * 2.2
= 3.02 million
For year 2
1.4 * ( 1 + 0.03 / 1 + 0.05 )^2 * 2..2 million
= 1.4 ( 0.98095 )^2 * 2.2 million
= 2.96378 million
For year 3
1.4 * ( 1 + 0.03 / 1 + 0.05 )^3 * 2.2 million
= 1.4 ( 0.98095 )^3 * 2.2 million
= 2.90733 million
Lewis Corporation has two service departments: Data Processing and Administration/Personnel. The company also has three divisions: X, Y, and Z. Data Processing costs are allocated based on hours of use and Administration/Personnel costs are allocated based on number of employees. Department Direct Costs Employees Hours of use Administration/ Personnel $400,000 10 3,300 Data Processing 850,000 5 1,100 X 450,000 30 1,800 Y 300,000 15 2,200 Z 550,000 25 4,500 Assume that Data Processing provides more service than Administration/Personnel. Refer to Lewis Corporation. Assume that Data Processing costs have been allocated and the balance in Administration is $600,000. Using the step method, what amount is allocated to Y
Answer:
Lewis Corporation
Using the step method, the amount allocated to Y is:
Y = $128,571
Explanation:
a) Data and Calculations:
Department Direct Costs Employees Hours of use
Administration/
Personnel $400,000 10 3,300
Data Processing 850,000 5 1,100
X 450,000 30 1,800
Y 300,000 15 2,200
Z 550,000 25 4,500
Allocation of Administration/
Personnel cost of $600,000:
X = $257,143 (600,000 * 30/70)
Y = $128,571 (600,000 * 15/70)
Z = $214,286 (600,000 * 25/70)
hãy lựa chọn 1 công ty sử dụng dịch vụ nghiên cứu của marketing của các nhà cung cấp bên ngoài.
1. tìm hiểu lý do công ty phải thuê ngoài
2. những tổ chức nào đã cung cấp dịch vụ marketing cho công ty?
3. công ty thuê một phần hay thuê toàn bộ các hoạt động nghiên cứu marketing
Answer:
may I know which language
When there is a capacity constraint :_________
A. firms are not maximizing their profits during high season.
B. consumers will avoid the producer and go with a firm that has extra capacity.
C. firms face sunk costs when deciding whether or not to expand.
D. firms can use peakload pricing to increase profits during periods of high demand.
Answer:
The answer is "Option D".
Explanation:
Capacity restrictions are indeed a regulation that restricts the number of items that a supplier could be assigned. Trade could be allocated to a leading provider through the constraint, or the amount of trade can be restricted for a supplier, therefore companies having resource constraints may employ peak price and increase revenue during peak times.
When President Obama was president he had discussed raising income taxes for individuals earning over $250,000 in income. Explain how these higher income taxes will affect the aggregate demand curve. What variables cause the short-run aggregate supply curve to shift
Answer:
A) Higher income taxes will cause a decrease in disposable income and this will affect personal expenditure which will cause the aggregate demand curve to shift leftwards ( decrease in price level and real GDP )
B)
i) Change in input price
ii) Change in production cost
iii) Increase in labor supply or increase in capital stocks
Explanation:
A) Effects of higher income taxes on aggregate demand curve
i) Higher income taxes will cause a decrease in disposable income and this will affect personal expenditure which will cause the aggregate demand curve to shift leftwards ( decrease in price level and real GDP )
B) The factors that will cause the short-run aggregate supply curve to shift
a) Change in input price
b) Change in production cost
c) Increase in labor supply or increase in capital stocks
Doug Allen has decided to go into the insect extermination business and to operate as Doug's Extermination Service. The following transactions were completed during the first month of operations, May, 20--.
1. Doug invested $35,000 cash in the business.
2. Purchased extermination equipment for $17,000 in cash.
3. Paid $700 rent for garage and office quarters.
4. Purchased chemicals (expense) for $1,100 from Low Glow Chem Co. on account.
5. Received $1,600 revenue for extermination service.
6. Paid telephone bill, $120
7. Paid assistant's salary, $700.
8. Earned $980 revenue for extermination service, on account.
9. Paid electric bill, $230.
10. Paid for truck repairs (expense), $145.
11. Paid $600 to Low Glow Chem Co., on account.
12. Paid $131 for gas and oil for truck (expense).
13. Received $1,400 revenue for extermination service.
14. Received $500 for services previously earned on account in transaction (8).
15. Paid assistant's salary, $900.
Required:
Write the transactions in the T accounts, then write the total of each column. If an account has entries on both sides, determine the balance and enter it on the side with the larger total.
Answer:
Doug's Extermination Service
T-accounts:
Cash
Account Titles Debit Credit
Common stock $35,000
Extermination equipment $17,000
Rent 700
Extermination Revenue 1,600
Utilities Expense 120
Salary Expense 700
Utilities Expense 230
Truck Expenses 145
Accounts Payable (Low Glow) 600
Truck Expense 131
Extermination service 1,400
Accounts Receivable 500
Salary Expense 900
Balance $17,974
Common Stock
Account Titles Debit Credit
Cash $35,000
Extermination equipment
Account Titles Debit Credit
Cash $17,000
Rent Expense
Account Titles Debit Credit
Cash $700
Supplies Expense
Account Titles Debit Credit
Accounts payable $1,100
Accounts Payable (Low Glow Chem Co.)
Account Titles Debit Credit
Supplies Expense $1,100
Cash $600
Balance $500
Extermination Service Revenue
Account Titles Debit Credit
Cash $1,600
Accounts Receivable 980
Cash 1,400
Balance $3,980
Utilities Expense
Account Titles Debit Credit
Cash $120
Cash 230
Balance $350
Salary Expense
Account Titles Debit Credit
Cash $700
Cash 900
Balance $1,600
Accounts Receivable
Account Titles Debit Credit
Extermination Service Revenue $980
Cash $500
Balance $480
Truck Expenses
Account Titles Debit Credit
Cash $145
Cash 131
Balance $276
Explanation:
a) Data and Analysis:
1. Cash $35,000 Common Stock $35,000
2. Extermination equipment $17,000 Cash $17,000
3. Rent $700 Cash $700
4. Supplies Expense $1,100 Accounts Payable (Low Glow Chem Co.) $1,100
5. Cash $1,600 Extermination Service Revenue $1,600
6. Utilities Expense $120 Cash $120
7. Salary Expense $700 Cash $700
8. Accounts Receivable $980 Extermination Service Revenue $980
9. Utilities Expense $230 Cash $230
10. Truck Expenses $145 Cash $145
11. Accounts Payable (Low Glow Chem Co.) $600 Cash $600
12. Truck Expense $131 Cash $131
13. Cash $1,400 Extermination Service Revenue $1,400
14. Cash $500 Accounts Receivable $500
15. Salary Expense $900 Cash $900
In a newsvendor setting where the seller faces random demand, if two products have the same critical ratio, then their optimal ordering quantity (i.e., the Newsvendor ordering quantity) will be the same.
A. True
B. False
Answer:
A. True
Explanation:
Critical ratio determines the area covered by optimal ordering quantity. The non perishable goods have high critical ratio then perishable goods. Optimal order quantity can be determined by Economic order quantity.
Mar. 1 CMS began operations by receiving $100,000 in cash. The business issued shares of common stock in exchange for this contribution. Mar. 1 CMS paid $1,200 for a 12 month insurance policy. The policy begins Mar. 1. Mar. 4 CMS guided a small rock climbing trip, receiving $20,000 payment in cash. Mar. 22 Collected $3,000 cash from customer on account. Mar. 24 Paid rent on their property, $4,000 cash. Mar. 27 Paid $1,000 cash on account. Mar. 31 Cash dividends of $2,500 were paid to stockholders.Prepare the bank reconciliation at March 31, 2021.
Journalize any required entries from the bank reconciliation.
Prepare a cash t-account to verify the balance of the account matches the adjusted book balance from the bank.
Answer:
Reconciled Bank Balance $114,300.
Explanation:
Cash for operations $100,000
Less: Insurance policy subscription $1,200
Add: Fee for services $20,000
Add: Cash Collection $3,000
Less: Rent expense $4,000
Less: Payment on account $1,000
Less: Cash Dividends paid $2,500
Reconciled Balance $114,300
Dianne Ruth withdrew $8,000 from her educational savings account and used $6,000 to pay for qualified higher education expenses. The remaining balance of $2,000 was used to purchase clothes. On the date of the distribution, her educational savings account had $25,000 balance including $20,000 she had contributed.
How much of the $8,000 is tax free?
Answer:
$7,600
Explanation:
Calculation to determine How much of the $8,000 is tax free
Step 1 is to calculate the % using this formula
%=Savings ratio ROC Contributed/Total balance
Let plug in the formula
%=$20,000/$25,000
%= .80*100
%=80%
Step 2 is to calculate the ROC tax free using this formula
ROC tax free=% x Distribution
Let plug in the formula
ROC tax free=.80x 8000
ROC tax free=$6,400
Step 3 is to Contained earnings in distribution using this formula
Contained earnings in distribution=Distribution - ROC tax free
Let plug in the formula
Contained earnings in distribution=$8,000-$6,400
Contained earnings in distribution= $1,600
Step 4 is to calculate Excludable earning using this formula
Excludable earning=(Qualified exp/distribution ) x Earning contained
Let plug in the formula
Excludable earning=($6,000/$8,000) x $1,600
Excludable earning= $1,20/
Step 5 is to calculate the Taxable amount using this formula
Taxable =Earnings - Excludable
Let plug in the formula
Taxable=$1,600-$1,200
Taxable =$400
Now let determine the Tax free using this formula
Tax free = Distribution- Taxable
Let plug in the formula
Tax free=$8,000- $400
Tax free=$7,600
Therefore How much of the $8,000 is tax free will be $7,600
Waggoner Company has a cash balance of $44,000 on April 1. The company is required to maintain a cash balance of $25,000. During April expected cash receipts are $174,000. Expected cash disbursements during the month total $200,800. During April the company will need to borrow:____.
a. $2,500.b. $3,500.c. $4,000.d. $6,000.
Answer: $7,800
Explanation:
The amount that the company needs to borrow can be found using the formula:
= Opening balance + Cash receipts - Cash to be maintained - Cash disbursement
= 44,000 + 174,000 - 25,000 - 200,800
= -$7,800
Amount to be borrowed is the shortfall of $7,800
Identify the events that relate to process gains. Event 1: A group of individuals who spend time together are seen as a group although their togetherness is not to achieve any goals. Event 2: A group of intelligent people work as a team to produce great results. Event 3: Two brilliant tennis players do not produce good results when they play as a team. Event 4: Workers produce more when they work in small groups.
Answer: Event 2: A group of intelligent people work as a team to produce great results.
Event 4: Workers produce more when they work in small groups.
Explanation:
Process gain occurs when groups work better than what is typically expected, based on the individuals who form the work.
The events relating to process gain include:
Event 2: A group of intelligent people work as a team to produce great results.
Event 4: Workers produce more when they work in small groups.
Other options such as event 1 and 4 are process loss.
Describe an important difference in the way an economist and a businessperson might view a monopoly.
Answer:
An economist would view a monopoly as not beneficial and optimal to society. A businessperson would view monopolies as a great idea to maximize profits due to the lack of competitionExplanation:
hope it's helps you if i am sorry if my answer is wrong
How does a business achieve economies of scale?
Answer:
Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable. ... The larger the business, the more the cost savings.
Which subscription level(s) in QuickBooks Online include the Receipt Capture feature?
Consider the following set of data for ABC Corporation, and note that ABC Corporation faces a tax rate of 35%.
2011 2012
Sales $4,203 4507
Cost of goods sold 2,422 2,633
Depreciation 785 952
Interest 180 196
Dividends 225 250
Current assets 2205 2429
Net fixed assets 7344 7650
Current liabilities 1003 1255
Long-term debt 3106 2085
Begin by constructing a balance sheet for both 2011 and 2012, and then construct an income statement for 2012.
1. Operating cash flow for ABC Corp. in 2012 was an:__________.
A) inflow of $1,170.
B) outflow of $1,170.
C) inflow of $1,620.
D) outflow of $1,620.
2. Net capital spending for ABC Corp. in 2012 was an:_________.
A) inflow of $306
B) outflow of $306
C) inflow of $1,258
D) outflow of $1,258
3. The change in net working capital for ABC Corp. in 2012 was an:__________.
A) inflow of $28
B) outflow of $28
C) inflow of $1,202
D) outflow of $1,202
4. The cash flow from assets for ABC Corp. in 2012 was an:___________.
A) inflow of $390
B) outflow of $390
C) inflow of $2,850
D) outflow of $2,850
5. The cash flow to creditors for ABC Corp. in 2012 was an:__________.
A) inflow of $825
B) outflow of $825
C) inflow of $1,217
D) outflow of $1,2127
6. The cash flow to stockholders for ABC Corp. in 2012 was an:__________.
A) inflow of $827
B) outflow of $827
C) inflow of $1,327
D) outflow of $1,327
Answer:
1. A. Inflow of $1,170
2. B. Outflow of $306
3. C. Inflow of $1,202
4. A. Inflow of $390
5. C. Inflow of $1,217
6. D. Outflow of $1,327
Explanation:
Cash Flow from operations is the money which is used for regular operating activities of a business. The cash inflow or outflow is the measure of the actual cash movement in the business. Profit are not equivalent to cash flows. The inflows of $1,170 is generated in the year 2012 as operating cash flows.
Birmingham Bolt, Inc., has been approached by one of its customers about producing 800,000 special-purpose parts for a new home product. The customer wants 100,000 parts per year for eight years. To provide these parts, Birmingham would need to acquire a $500,000 new production machine. The new machine would have no salvage value at the end of its eight-year life. The customer has offered to pay Birmingham $7.50 per unit for the parts. Birmingham’s managers have estimated that, in addition to the new machine, the company would incur the following costs to produce each part:
Direct labor $2.00
Direct material $2.50
Variable 2.00
Total $6.50
In addition, annual fixed out-of-pocket costs related to the production of these parts would be $20,000.
a. Compute the net present value of the machine investment, assuming that the company uses a discount rate of 9 percent to evaluate capital projects.
b. Based on the NPV computed in (a), is the machine a worthwhile investment? Explain.
c. In addition to the NPV, what other factors should Birmingham’s managers consider when making the investment decision?
Answer:
Birmingham Bolt, Inc.
a. The net present value of the machine investment = ($57,214.47).
b. Based on the computed NPV in (a), the machine is not a worthwhile investment. Birmingham will lose $57,214.47 from the investment.
c. In addition to the NPV, the other factors that Birmingham’s managers should consider when making the investment decision are:
1. the probability of reducing the variable costs per unit of production by achieving productivity efficiencies.
2. whether the price could be reviewed upward with the customer.
3. whether there will be increased demand for the product in the future.
Explanation:
a) Data and Calculations:
Special-purpose parts for a new home product = 800,000 parts
Annual requirement of the parts = 100,000
Period of contract = 8 years
Discount rate = 9%
Initial investment in production machine = $500,000
Price offer per part = $7.50
Annual sales revenue from parts = $750,000
Variable costs;
Direct labor $2.00
Direct material $2.50
Variable $2.00
Total $6.50 $650,000
Contribution margin $100,000
Annual fixed costs $20,000
Annual net cash inflow $80,000
PV of annual cash inflows = $442,785.53
NPV = ($57,214.47) ($442,785.53 - $500,000)
N (# of periods) 8
I/Y (Interest per year) 9
PMT (Periodic Payment) 80000
FV (Future Value) 0
Results
PV = $442,785.53
Sum of all periodic payments = $640,000.00
Total Interest = $197,214.47
Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $16,000 estimated residual value. (Do not round intermediate calculations.)What should be the book value of (a) the land and (b) the building at the end of year 2
Answer:
Missing word "Bridge City Consulting bought a building and the land on which it is located for $120,000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use."
Total Cost of Land and Building (100%) = $120,000
Cost of Land (70%) = $84,000
Cost of Building (30%) = $36,000
Cost of Building Renovations = $10,000
Total Cost of Building = $36,000 + $10,000
Total Cost of Building = $46,000
1. Annual Depreciation(Year End Depreciation) = (Cost of Building - Residual Value)/ Number of Year
Annual Depreciation = $46,000 - $16,000 / 10
Annual Depreciation = $30,000 / 10
Annual Depreciation = $3,000
2. Book Value of Land at the end of two years = $84,000
Book Value of Building at the end of two years = $46,000 - ($3,000*2 year) = $46,000 - $6,000 = $40,000
Hence, Book Value of Land and Building at the end of two year is = $84,000 + $40,000 = $124,000
