Answer and Explanation:
The adjusting journal entry is given below;
Unearned fee revenue $7,050 ($14,530 - $7,480)
To Fee revenue $7,050
(Being the fees revenue is recorded)
here the unearned fees revenue is debited as it decreased the liabilities and credited the fees revenue as it increased the revenue
Alfred derives utility from consuming iced tea and lemonade. For the bundle he currently consumes, the marginal utility he receives from iced tea is 16 utils, and the marginal utility he receives from lemonade is 8 utils. Instead of consuming this bundle, Alfred should:______.
a. buy more iced tea and less lemonade.b. buy more lemonade and less iced tea.c. buy more iced tea and lemonade.d. buy less iced tea and lemonade.e. none of these.
Answer:
A
Explanation:
Marginal utility is the additional utility derived from consuming one more unit of a good
the consumption decision is to consume more units of a good that gives the higher utility per good.
Marginal utility per good = marginal utility / price of the good
When marginal utility is positive, it means that increasing consumption by one unit increases total utility
When marginal utility is negative, it means that increasing consumption by one unit decreases total utility
When marginal utility is zero, total utility has reached its maximum and no more units of goods would be consumed
An example of marginal utility. Imagine a traveller arriving from the desert where he hadn't had a drink of water in days .he is offered his first glass of water. the first cup of water he drinks would give him the highest utility. As more and more cups of water is drank, marginal utility decreases. At the point where he is fully satisfied, he stops drinking water and marginal utility becomes zero.
An example of a push strategy is ________. organizing couponing campaigns utilizing newspaper advertising using television advertising employing direct marketing paying a shelf fee
Answer: Using television advertising
Explanation:
Push marketing strategy, refers to the strategy whereby take its products to the consumers in order to increase the exposure of the product.
Push marketing simply means pushing the brand through the use of promotions and paid advertisiment. On the other hand, pull strategy draws customers towards the product.
4. Problems and Applications Q4 For each of the following statements, indicate which argument for restricting trade is being utilized. Statements The Jobs Argument The National-Security Argument The Infant-Industry Argument The Unfair-Competition Argument The Protection-as-a-Bargaining-Chip Argument (A) We should restrict the importation of electric cars until our own electric car industry is mature enough to compete with foreign firms. (B) We should limit the importation of Japanese automobiles unless Japan reduces its restrictions on agricultural imports. (C) We should place a tariff on Chinese-made tires to help prevent domestic tire employees from being laid off. (D) We should subsidize our computer industry because China subsidizes its computer industry.
Answer:
Statements Arguments
A The Infant-Industry Argument
B The Protection-as-a-Bargaining-Chip Argument
C The Jobs Argument
D The Unfair-Competition Argument
Explanation:
The Jobs Argument: Domestic jobs need to be protected for the good of the national economy, according to this argument.
The National-Security Argument: Some products and services are, by their nature, issues reserved under national security. To expose the internal security systems of a nation may have untold consequences.
The Infant-Industry Argument: Nascent industries require domestic protection from foreign competitors if they must grow to competitive levels.
The Unfair-Competition Argument: This is more pronounced in developing countries without the manufacturing facilities to compete fairly with developed economies.
The Protection-as-a Bargaining-Chip Argument is argues that trade restrictions may be imposed to force other countries to reverse or remove trade restrictions.
Sherry is known for being very task oriented in her approach to manage subordinates. Which at the following statement is noot likely to describe sherry?
a. She tends to work to develop trusting relationships with subordinates.
b. She tends to be very involved in task assignments and defining work schedules.
c. She tends to write standard operating procedures for her employees.
d. She tends to be one-way and top-down in her
Answer:
a. She tends to work to develop trusting relationships with subordinates.
Explanation:
since in the given situation it is mentioned that sherry to be called as the very task oriented person in order to manage the subordinates so as per the given situation the first option is correct as it is not describe her behavior that she develop the relationship with the subordinates in a trust worthy way
So the option a is correct
BUS 320 Cal Lury owes $21,000 now. A lender will carry the debt for five more years at 6 percent interest. That is, in this particular case, the amount owed will go up by 6 percent per year for five years. The lender then will require that Cal pay off the loan over the next 13 years at 9 percent interest. What will his annual payment be
Answer:
$3,753.59
Explanation:
Value of debt at end of 5 years = $21,000 * (1 + 6%)^5
Value of debt at end of 5 years = $21,000 * 1.3382255776
Value of debt at end of 5 years = $28102.7371296
Value of debt at end of 5 years = $28,102.74
Let x be the annual payments:
x*[1 - (1 + 9%)^-13] / 9% = $28,102.74
x * [1-0.32617864688] / 0.09 = $28,102.74
x * 7.486904 = $28,102.74
x = $28,102.74 / 7.486904
x = 3753.58626
x = $3,753.59
A company's fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130. The amount of sales required to realize an operating income of $200,000 is Group of answer choices
Answer:
The answer is 14,167 units
Explanation:
Target sales is the amount of sales a company has projected itself to sell within a particular period.
Target sales(in units) =
(Fixed cost + target income) / contribution margin
Where contribution margin is sales in unit minus variable costs
($1,500,000 + $200,000) / $250 - $130
$1,700,000/$120
=14,167 units
Therefore, 14,167 units is the amount of sales that will need to be recorded to generate an operating income of $200,000
Statement True/False Explanation 1 True Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods. All that is necessary is that each country have a comparative advantage in some good. 2 False No one can have a comparative advantage in everything. Comparative advantage reflects the opportunity cost of one good or activity in terms of another. If you have a comparative advantage in one thing, you must have a comparative disadvantage in something else. 3 False It is not true that if a trade is good for one person, it cannot be good for the other one. Trades can and do benefit both sides when based on comparative advantage. If both sides did not benefit, trades would never occur. 4 False To benefit both parties, the trade price must lie between the two opportunity costs. 5 False Trade that makes the country better off can harm certain individuals in the country. For example, suppose a country has a comparative advantage in producing wheat and a comparative disadvantage in producing cars. Exporting wheat and importing cars will benefit the nation as a whole, as it will be able to consume more of both goods. However, the introduction of trade will likely be harmful to domestic auto workers and manufacturers.
Answer:
1 - True
2 - False
3 - False
4 - False
5 - False
Explanation:
Two countries can gain from the trade if one has comparative advantage in a certain good and other has comparative advantage in other good. The trade will always occur when both parties involved in the trade benefits from it. It is not necessary that if a country has comparative advantage in certain good then it will have comparative disadvantage in other good.
A firm borrows $500 and its debt-to-equity ratio is 0.7. Its cost of equity and debt are 11% and 7.5%. Its corporate tax rate is 35%. What is its weighted average cost of capital
Answer:
8.47%
Explanation:
WACC = (Cost of equity * Weight of equity) + (Cost of debt capital * Weight of debt capital)*(1 - tax)
WACC = (11*(1/(0.7+1)) + (7.5*(0.7/(1+0.7))*(1-.35)
WACC = (11*0.5882) + (7.5*0.4118*0.65)
WACC = 6.4702 + 2.007525
WACC = 8.477725
WACC = 8.47%
So, the weighted average cost of capital of company is 8.47%.
Wieters Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for setting its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows:
Activity Activity Overhead $ Cost Driver Cost Driver Quantity
Machine setup $200,000 # of setups 800
Inspection 120,000 # of quality tests 400
Materials receiving 252,000 # of purchase orders 1,800
The budgeted data for smartphone case production are as follows.
Direct materials $2.50 per unit
Direct labor $0.54 per unit
Number of setups 92
Number of quality tests 400
Number of purchase orders 50
Production 15,000 units
Required
a. Calculate the activity rate for each cost pool.
b. Calculate the activity-based unit cost of the smartphone case.
Answer:
Wieters Industries
a. Activity Rates:
Machine setup = $250
Inspection = 300
Materials receiving 140
b. The activity-based unit cost of the smartphone case is:
= $13.04
Explanation:
a) Data and Calculations:
Activity Activity Overhead $ Cost Driver Cost Driver Quantity
Machine setup $200,000 # of setups 800
Inspection 120,000 # of quality tests 400
Materials receiving 252,000 # of purchase orders 1,800
Total overhead costs $572,000
Activity Rates:
Machine setup = $250 ($200,000/800)
Inspection = 300 ($120,000/400)
Materials receiving 140 ($252,000/1,800)
Budgeted data for smartphone case production:
Direct materials $2.50 per unit
Direct labor $0.54 per unit
Number of setups 92
Number of quality tests 400
Number of purchase orders 50
Production 15,000 units
Overhead Applied to Smartphone Case:
Number of setups 92 * $250 = $ 23,000
Number of quality tests 400 * $300 = 120,000
Number of purchase orders 50 * $140 = 7,000
Total overhead applied = $150,000
Overhead per unit = $10 ($150,000/15,000)
Unit Cost of Smartphone Case:
Direct materials per unit $2.50
Direct labor per unit $0.54
Overhead per unit $10.00
Total unit cost = $13.04
You are a certified fraud examiner, and a local community group, the Silver Years Senior Squad, has requested that you give a presentation about consumer fraud. They want to hear about examples of recent scams that have happened to people and how they can avoid being scammed. What advice you would give to the Silver Years Senior Squad to help them avoid becoming a victim of a telemarketing fraudster?
Answer:
The answer is below
Explanation:
To avoid becoming a victim of a telemarketing fraudster, here some of the necessary things you should not and eventually do:
1. Usually telemarketing fraudsters require the victim involvement or participation, always say NO when you suspect a fraud
2. Old people are more vulnerable to telemarketing fraud, hence, the elderly ones need to be more careful and watch over if necessary.
3. To guide against telemarketing fraud effectively it is to carry out fast and direct reporting of any telemarketing calls suspected to be fraudulent to the Federal Trade Commission
4. Be alert and understand that fraudsters are very manipulative and focus on greed, fear, excitement, and gullibility.
5. Give them none of your information, including those you think is not sensitive or vital, you might never know how ell they could use that information
Compute the two-year nominal interest rate using the exact formula and the approximation formula for each set of assumptions listed in (a) through (c).
a. it = 2%; it+1=3%
b. it = 2%; it+1+1 = 10%
c. it=2%; 1t+1=3%. The term premium on a two-year bond is 1%.
Answer:
a) 2.5%
b) 6%
c) 3.5%
Explanation:
The Formula to be used is the habitat hypothesis
as stated in the document attached below
a) it = 2%; it+1 =3%
[tex]i_{2,t}[/tex] = 0 + ( 2 + 3 ) / 2
= 2.5% ( two year nominal interest rate )
b) it = 2%; it+1+1 = 10%
[tex]i_{2,t}[/tex] = 0 + ( 2 + 10 ) / 2
= 6% ( two year nominal interest rate )
c) it = 2%; 1t+1 = 3%. ∝₂,t = 1%
[tex]i_{2,t}[/tex] = 1 + ( 2 + 3 ) / 2
= 1 + 2.5 = 3.5%
a. The two-year nominal interest rate is 2.5%
b. The two-year nominal interest rate is 6%
c. The two-year nominal interest rate is 3.5%.
The calculation is as follows:(a) it = 2%; it+1=3%
[tex]i,_{2,t} = 0 + (2 + 3) \div 2[/tex]
= 2.5%
(b) it = 2%; it+1+1 = 10%
[tex]i,_{2,t} = 0 + (2 + 10) \div 2[/tex]
= 6%
(c) it=2%; 1t+1=3%
[tex]i,_{2,t} = 1 + (2 + 3) \div 2\\\\= 1 + 2.5[/tex]
= 3.5%
Learn more: brainly.com/question/16911495
Horace Company manufactures a professional-grade vacuum cleaner and began operations in 2020. For 2020, Horace budgeted to produce and sell 25,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2020 are as follows:_______.
Data: Units produced 21,000 Units sold 18,500 Selling price $432 Variable cost: Manufacturing cost per unit produced: Direct materials $33 Direct manufacturing labor $23 Manufacturing Overhead $62 Marketing cost per unit sold $46 Fixed cost: Manufacturing costs $1,550,000 Administrative costs $906,000 Marketing costs $1,479,000
Requirements:
1. Prepare a 2020 income statement for Horace Company using variable costing.
2. Prepare a 2020 income statement for Horace Company using absorption costing.
3. Explain the differences in operating incomes obtained in requirements 1 and 2.
4. Horace's management is considering implementing a bonus for the supervisors based on gross margin under absorption costing. What incentives will this bonus plan create for the supervisors? What modifications could Horace management make to improve such aplan? Explain briefly.
Answer:
Horace Company
1. 2020 Income Statement using variable costing
Sales revenue $7,992,000
Variable Cost of goods sold:
Manufacturing costs $2,183,000
Marketing cost per unit sold $851,000
Contribution margin $4,958,000
Fixed Costs:
Manufacturing costs $1,550,000
Administrative costs $906,000
Marketing costs $1,479,000
Total fixed costs = $3,935,000
Net income = $1,023,000
2. 2020 Income Statement using absorption costing:
2. Sales revenue $7,992,000
Cost of goods sold:
Variable Manufacturing costs $2,478,000 ($118 * 21,000)
Fixed Manufacturing costs 1,550,000
Total cost of production $4,028,000
Less Ending Inventory 479,525
Cost of goods sold $3,548,475
Gross profit $4,443,525
Period costs:
Variable marketing costs $851,000
Fixed marketing costs 1,479,000
Administrative costs 906,000
Total period costs $3,236,000
Net income $1,207,525
3. The differences that Horace obtains in the operating incomes under variable costing and absorption costing are due to the fixed manufacturing costs that are included in the ending inventory under absorption costing, making the cost of goods sold to be less and resulting in more profits. Under variable costing, the ending inventory does not include the fixed manufacturing costs. So the cost of goods sold is higher, resulting in reduced profits.
4. A bonus for Horace's supervisors based on gross margin under absorption costing will entice supervisors to produce more and sell less products so that the fixed costs can be carried forward. Many products will be left in inventory at the end of the period, which is then carried forward to the following period, thus, enhancing the period's gross profit for maximum bonus for the supervisors.
Modifications that Horace management could make to improve the bonus plan is ensuring that production units do not exceed the budgeted sales units by a large margin and ensuring that ending inventory does not exceed an established limit. This will entice the supervisors to produce according to market demand.
Explanation:
a) Data and Calculations:
Budgeted production and sales units for 2020 = 25,000
Actual production units for 2020 = 21,000
Actual sales unit for 2020 = 18,500
Ending inventory units for 2020 = 2,500
Selling price per unit = $432
Sales revenue = $7,992,000 ($432 * 18,500)
Variable cost:
Manufacturing cost per unit produced:
Direct materials $33
Direct manufacturing labor $23
Manufacturing Overhead $62 $118
Marketing cost per unit sold $46
Total variable costs per unit $164
Fixed cost:
Manufacturing costs $1,550,000
Administrative costs $906,000
Marketing costs $1,479,000
Total fixed costs = $3,935,000
1. 2020 Income Statement using variable costing
Sales revenue $7,992,000 ($432 * 18,500)
Variable Cost of goods sold:
Manufacturing costs $2,183,000 ($118 * 18,500)
Marketing cost per unit sold $851,000 ($46 * 18,500)
Contribution margin $4,958,000 ($268 * 18,500)
Fixed Costs:
Manufacturing costs $1,550,000
Administrative costs $906,000
Marketing costs $1,479,000
Total fixed costs = $3,935,000
Net income = $1,023,000
2. Sales revenue $7,992,000
Cost of goods sold:
Variable Manufacturing costs $2,478,000 ($118 * 21,000)
Fixed Manufacturing costs 1,550,000
Total cost of production $4,028,000 (per unit = $191.81)
Less Ending Inventory 479,525 ($191.81 * 2,500)
Cost of goods sold $3,548,475
Gross profit $4,443,525
Period costs:
Variable marketing costs $851,000
Fixed marketing costs 1,479,000
Administrative costs 906,000
Total period costs $3,236,000
Net income $1,207,525
Why is nominal value important ?
Answer: A preferred stock's nominal (par) value is important in that it is used to calculate its dividend while the nominal value of common stock is an arbitrary value assigned for balance sheet purposes. In economics, nominal value refers to the current monetary value and does not adjust for the effects of inflation.
Explanation:
Hope it helps
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.
May.
11 Sydney accepts delivery of $40,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $30,000. Sydney pays $345 cash to Express Shipping for delivery charges on the merchandise.
12 Sydney returns $1,400 of the $40,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $1,050.
20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. (Both Sydney and Troy use a perpetual inventory system and the gross method.)
Required:
a. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.
b. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.
Answer:
1. Sydney Buyer
11 Dr Accounts Payable $40,000
Cr Merchandise Inventory $40,000
11 Dr Merchandise Inventory $345
Cr Cash $345
12 Dr Merchandise Inventory $1,400
Cr Accounts Payable $1,400
20 Dr Accounts Payable $38,600
Cr Merchandise Inventory $1,158
Cr Cash $37,442
2. Troy - Seller
11 Dr Accounts Receivables $40,000
Cr Sales $40,000
Dr Cost of Goods Sold $30,000
Cr Merchandise Inventory $30,000
13 Dr Sales Returns and Allowances $1,400
Cr Accounts Receivables $1,400
Dr Cost of Good Sold $1,050
Cr Merchandise Inventory $1,050
21 Dr Cash $37,442
Dr Sales Discount $1,158
Cr Accounts Receivables $38,600
Explanation:
1. Preparation of journal entries that Sydney Co. records for these transactions.
1. SYDNEY BUYER
11 Dr Accounts Payable $40,000
Cr Merchandise Inventory $40,000
11 Dr Merchandise Inventory $345
Cr Cash $345
12 Dr Merchandise Inventory $1,400
Cr Accounts Payable $1,400
20 Dr Accounts Payable $38,600
($40,000-$1,400)
Cr Merchandise Inventory $1,158
($38,600-$37,442)
Cr Cash $37,442
[$38,800- [($1,400 × (100% – 3%)]
2. Preparation of the journal entries that Troy Corporation records for these transactions.
TROY - SELLER
11 Dr Accounts Receivables $40,000
Cr Sales $40,000
Dr Cost of Goods Sold $30,000
Cr Merchandise Inventory $30,000
13 Dr Sales Returns and Allowances $1,400
Cr Accounts Receivables $1,400
Dr Cost of Good Sold $1,050
Cr Merchandise Inventory $1,050
21 Dr Cash $37,442
[$38,800- [($1,400 × (100% – 3%)]
Dr Sales Discount $1,158
($38,600-$37,442)
Cr Accounts Receivables $38,600
($40,000-$1,400)
Workings:
May 11 Purchased goods=($40,000 × [100% – 3%])
May 11 Purchased goods= $38,800
May 12 Returned goods= ($1,400 × [100% – 3%]) May 12 Returned goods= $1,358
May 20 Paid balance within the discount period= ($38,800 – $1,358)
May 20 Paid balance within the discount period= $37,442
Your roommate John is an employee at a property management company. His employer asks him to
travel to a remote town in Yukon to meet with a prospective client.
A. Accommodation
Not knowing what type of accommodation would be available, John and his employer agree in
advance to pay John $300 for the 3-night accommodation in Yukon. Because of the high cost of living
in Yukon, John actually spends $400.
B. Parka for Extreme Cold
Yukon happens to be experiencing a record cold period, with temperatures as low as -40C. Since John
does not have any outerwear suitable for such severe weather, his employer also gives him $200 to
buy a a very warm parka jacket. After receiving the $200, John manages to find one on sale for
$198.99 that is perfect for the business trip. Assume John is very adverse to cold weather and plans
never to go to any place that cold or wear that jacket again after this business trip.
Required:
Explain to John the tax effects of the two events on his employment income. Note that your grade is
based on how you explain the tax treatment, demonstrating your understanding of the tax framework
and relevant provisions. Almost no mark is given just on comments such as "include $x" or "deduct
$y".
1) (1 pt.) Consumers who put a high value on a service A) are better off with perfect price discrimination. B) are better off under a single-price monopoly. C) are indifferent between perfect price discrimination and a single-price monopoly. D) incur deadweight loss under either single-price monopoly or perfect price discrimination.
Answer:
B) are better off under a single-price monopoly.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
A single-price monopoly can be defined as a situation in which a business firm sells each unit of its product or service at the same price for all of its customers. Thus, it requires charging the same amount of money (price) from its customers for each unit of the product it sells.
Hence, any consumer that place or put a high value on a service are better off under a single-price monopoly because the price is universal across the company.
Suppose you have $100 of endowment, and you are offered a chance to buy a lottery which costs $36. The lottery has 25% of chance to win a prize of $G, or you just lose and get nothing. Suppose your utility function on wealth is . What is the least prize size G that you will be willing to buy the lottery
Answer:
The least prize size G that I will be willing to buy the lottery is 192
Explanation:
First, Calculate the expected utility
Expected utility = [tex]\sqrt{100}[/tex] = 10
There are two cases
Case 1
I win = 100 - 36 + G = 64 + G
Case 2
I lose = 100 - 36 = 64
Hence the expected utility can be calculated as follow
Expected utility = Chance to win x [tex]\sqrt{( 64 + G )}[/tex] + Chance to lose x [tex]\sqrt{64}[/tex]
10 = 25% x [tex]\sqrt{( 64 + G )}[/tex] + ( 100% - 25% ) x [tex]\sqrt{64}[/tex]
10 = 25% x [tex]\sqrt{( 64 + G )}[/tex] + 75% x 8
10 = 25% x [tex]\sqrt{( 64 + G )}[/tex] + 6
10 - 6 = 25% x [tex]\sqrt{( 64 + G )}[/tex]
4 = 25% x [tex]\sqrt{( 64 + G )}[/tex]
4 / 25% = [tex]\sqrt{( 64 + G )}[/tex]
16 = [tex]\sqrt{( 64 + G )}[/tex]
[tex]16^{2}[/tex] = [tex](\sqrt{( 64 + G )})^{2}[/tex]
256 = 64 + G
G = 256 - 64
G = 192
Suppose the government imposes a 20-cent tax on the sellers of artificially-sweetened beverages. The tax would shift a. demand, lowering the equilibrium price and raising the equilibrium quantity in the market for artificially sweetened beverages. b. supply, raising the equilibrium price and lowering the equilibrium quantity in the market for artificially sweetened beverages. c. supply, lowering the equilibrium price and raising the equilibrium quantity in the market for artificially sweetened beverages. d. demand, raising both the equilibrium price and quantity in the market for artificially sweetened beverages.
Answer:
b. supply, raising the equilibrium price and lowering the equilibrium quantity in the market for artificially sweetened beverages.
Explanation:
In the case when the government impose the tax of 20% on sweetened beverages so here the price should be increased but at the same time the quantity is decreased as the supply curve shifted to the leftward where the demand curve is not impacted at all due to this things the price increased and the demand is decreased
Therefore the option b is correct
What is the power to make the decision necessary to complete a task called
¿Cuáles son los tramites para que una empresa se vuelva persona jurídica?
Answer: Crea una LLC o Corporación. ...
Registre su nombre comercial. ...
Solicite un número de identificación fiscal federal. ...
Determine si necesita un número de identificación fiscal estatal. ...
Obtenga permisos y licencias comerciales. ...
Proteja su negocio con un seguro. ...
Abra una cuenta bancaria comercial.
Explanation:
Privett Company
Accounts payable $32,581
Accounts receivable 74,771
Accrued liabilities 6,290
Cash 24,116
Intangible assets 42,381
Inventory 74,844
Long-term investments 95,587
Long-term liabilities 79,677
Marketable securities 31,145
Notes payable (short-term) 24,824
Property, plant, and equipment 671,789
Prepaid expenses 2,412
Based on the data for Privett Company, what is the amount of quick assets?
a. $1,660,292
b. $823,594
c. $119,071
d. $53,633
Answer:
$130,032
Explanation:
Calculation to determine the amount of quick assets
Using this formula
Quick assets=Accounts receivable +Cash+Marketable securities
Let plug in the formula
Quick assets=$74,771+$24,116+31,145
Quick assets= $130,032
Therefore the amount of quick assets is $130,032
More than 99% of all U.S. firms are classified as small businesses, and they employ about half of private workers. A small business is defined as any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people. Understanding the advantages and disadvantages of small business ownership is crucial for any potential entrepreneur.
Match each statement or scenario with the appropriate advantage or disadvantage of small business
i. ownership.ii. Focusiii. Reputationiv. High stress levelv. Inexperience/Incompetencevi. Flexibilityvii.Inability to cope with growthviii.Costsix. Independencex. High failure rateMatch each of the options above to the items below.1. One of the leading reasons for becoming your own boss. 2. A 20-employee factory does not have a designated accounting or advertising department.3. The pizzas offered on the Patrick’s Pizza menu are often based on the types of produce in season.4. Mike’s trucking business provides specific information and products to commercial truck drivers.5. Brandy’s nursery offers delivery and expert installation of their trees at no extra cost to the customer and will replace any defective one up to 3 years after purchase.6. Sue works more than 60 hours a week at her construction business and cannot find reliable suppliers for lumber inventory.
7. Half of all new employer firms fail within the first five years.8. As a fitness expert, Tyler is having difficulties understanding the accounting requirements for his bank business loan for his workout facility.9. Circumstances such as products not arriving on time due to limited capacity affect the reputation of a company more than any other factor.
Answer:
A
Explanation:
In the first few minutes of your speech to the new product team, you show the members that you feel comfortable with them and that you are confident that the team will be successful.
a. True
b. False
Answer: True
Explanation:
Being in good spirits at the beginning of the project among team members is vital. What is communicated at the beginning plays a vital role of how the project will go. If a project manager begins his address with negative words, threats and accusation, it would rub off on all the team members and might kill corporation but when his first speech is encouraging, energetic and inspiring, they would want to do better.
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 44,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $521,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Harris’s actual manufacturing overhead cost for the year was $687,120 and its actual total direct labor was 44,500 hours. Required: Compute the company’s plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.)
Answer:
Predetermined manufacturing overhead rate= $13.84 per direct labor hour
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (521,000 / 44,000) + 2
Predetermined manufacturing overhead rate= 11.84 + 2
Predetermined manufacturing overhead rate= $13.84 per direct labor hour
Rula has purchased a new car for $15000. She paid $2,000 as a down payment, and she paid the remaining balance by a loan from her hometown bank. Rula will pay off the loan by equal annual installments of $4280. How many years will it take Rula to pay off the loan, given an opportunity cost of 12%?
Answer: 4 years
Explanation:
First find the amount Rula borrowed from her hometown bank:
= Price of car - Down payment
= 15,000 - 2,000
= $13,000
The amount that Rula is to pay is an annuity. The loan is the present value of that annuity.
Present value of annuity = Annuity * Present value interest factor of annuity
13,000 = 4,280 * Present value interest factor of annuity
Present value interest factor of annuity = 13,000 / 4,280
= 3.0373
Use an annuity table to find out the year that 12% as a discount rate intersects with, such that the present value of interest factor of annuity is 3.0373.
That number is:
= 4 years
Photo Framing's cost formula for its supplies cost is $1,000 per month plus $10 per frame. For the month of November, the company planned for activity of 610 frames, but the actual level of activity was 600 frames. The actual supplies cost for the month was $7,600. The spending variance for supplies cost in November would be closest to:
Answer:
$600 U
Explanation:
Calculation to determine what The spending variance for supplies cost in November would be closest to:
Actual results$ 7600
Less Flexible budget $7,000
($1,000 + $10 × 600)
Spending variance $600 U
($7,600-$7,000)
Therefore The spending variance for supplies cost in November would be closest to: $600 U
with the aid of graphs, illustrate the effect of a change in demand for chicken by restaurants to a chicken farmer
Answer:
Systematic component of demand = (level + trend) X seasonal factor
Explanation:
Now in the given case, we can use the above equation as well as graphs based on historical trends to define the demand of chicken during each season. When the demand is high, chicken prices can lead to an increase with more pressure on chicken farmer to supply more chicken.
Automaton, Inc.'s current stock price is $57. Analysts forecast a price of $45 in one year. Automaton's Beta is 1.2. The Risk-Free Rate is 3% and Return of the Market Portfolio is 7%. Assuming Automaton pays a $5 dividend at the end of the year, what is the Holding Period Return?
Answer:
-12.28%
Explanation:
Holding period return is the total return on an investment in the period when the investment is held by an investor.
Holding period return = price appreciation + dividend yield
price appreciation = (price in on year - initial price) / initial price
(45 - 57) / 57 = -0.21053 = -21.05%
dividend yield = dividend / initial price
$5 / 57 = 0.0877 = 8.77
Holding period return = -21.05% + 8.77 = -12.28%
The Winter Wear Company has expected earnings before interest and taxes of $3,800, an unlevered cost of capital of 15.4 percent and a tax rate of 22 percent. The company also has $2,600 of debt with a coupon rate of 5.7 percent. The debt is selling at par value. What is the value of this firm
Answer:
$ 19,819
Explanation:
Calculation to determine the value of this firm
Using this formula
Firm Value = [ [ Earnings before interest and tax x (1 - tax rate) ] / Unlevered cost of capital ] + Amount of debt x tax rate
Let plug in the formula
Firm value= [ [ $ 3,800 x (1 - 0.22) ] / 0.154 ] + $ 2,600 x 22%
Firm value=[($3,800×.78)/0.154]+$572
Firm value=($2,964/0.154)+$572
Firm value=$19,246.75+$572
Firm value=$19,818.76
Firm value= $ 19,819 Approximately
Therefore the value of this firm will be $ 19,819
Assume that sales are predicted to be $3,750, the expected contribution margin is $1,500, and a net loss of $250 is anticipated. The break-even point in sales dollars is:_______.
a. $1,750b. $2,500c. $4,000d. $4,250e. $4,375
Answer:
e. $4,375
Explanation:
Calculation to determine what The break-even point in sales dollars is:
Using this formula
Break-even point in sales dollars=Predicted Sales+[Net loss/(Contribution margin/Sales)]
Let plug in the formula
Break-even point in sales dollars=$3,750+[$250/($1,500/$3,750)]
Break-even point in sales dollars=$3,750+($250/.40)
Break-even point in sales dollars=$3,750+$625
Break-even point in sales dollars=$4,375
Therefore The break-even point in sales dollars is:$4,375
