Answer:
Banking and Related Services, Insurance Services, Financial and Investment Planning, and Business Financial Management.
Answer: A.
Explanation:
Grand River Corporation reported taxable income of $400,000 in year 1 and paid federal income taxes of $160,000. Not included in the computation was a disallowed meals expense of $3,100, tax-exempt income of $2,100, and deferred gain on an installment sale from a prior year of $36,000. The corporation's current earnings and profits for year 1 would be:
Answer: $275,000
Explanation:
Earnings and Profit for the year:
= Taxable income - Federal income taxes - Disallowed meals expense + Tax exempt income + Deferred gain
= 400,000 - 160,000 - 3,100 + 2,100 + 36,000
= $275,000
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period:
Maintenance Personnel Printing Developing
Machine-hours — 1,800 1,800 5,400
Labor-hours 650 — 650 2,600
Department direct costs $4,000 $14,000 $15,900 $12,600
Required:
Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)
Maintenance Personnel Printing Developing
service dept. costs
maintenance allocation
personnel allocation
total cost allocation
Answer:
Maintenance $0
Personnel $0
Printing $19,700
Developing $26,800
Explanation:
Calculation to allocate these service department costs to the operating departments Using the direct method
Particulars Allocation Basis Maintenance Personnel Printing Developing
Cost as per primary data
$4,000 $14,000 $15,900 $12,600
SERVICE DEPARTMENT COSTS:
Maintenance allocation (S)
$0 $0 $1,000 $3,000
Personnel allocation (S)
$0 $0 $2,800 $11,200
Total Costs Allocated
$0 $0 $19,700 $26,800
Computation for the allocation of costs:
Maintenance = $4,000 *1,800/(1,800+5,400)
Maintenance = $4,000 *1,800/7,200
Maintenance =$1,000
Personnel = $14,000 *650/650+2,600
Personnel=$14,000 *650/3,250
Personnel=$2,800
Maintenance = $4,000 *5,400/(1,800+5,400)
Maintenance = $4,000 *5,400/7,200
Maintenance = $3,000
Personnel = $14,000 *2,600/650+2,600
Personnel = $14,000 *2,600/3,250
Personnel = $11,200
Therefore allocation of these service department costs to the operating departments Using the direct method will be :
Maintenance $0
Personnel $0
Printing $19,700
Developing $26,800
If Morgan Industries issued a Credit Memorandum on January 20 for a return of $1,100 of merchandise purchased on account by Doug Bowen, plus 6 percent sales tax, the credit memorandum total would be:
Answer:
1166
Explanation:
Morgan industries issued a credit
memorandum of $1100 on January 20th
They also have 6% tax sales
= 6/100 × 1100
= 0.06×1100
= 66
Therefore the total credit memorandum can be calculated as follows
= 1100+66
= 1,166
Hence the credit memorandum total is $1166
A proposed new project has projected sales of $219,000, costs of $96,000, and depreciation of $26,000. The tax rate is 23 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.) Top-down
Answer and Explanation:
The computation of the operating cash flow using the four different approaches is shown below:
1. EBIT + depreciation - taxes approach
But before that the net income would be
Sales $219,000
Less cost -$96,000
Less depreciation -$26,000
EBT $97,000
Less tax at 23% -$22,310
Net income $74,690
Now the operating cash flow is
= EBIT + depreciation - taxes
= $97,000 $26,000 - $22,310
= $100,690
2. top down approach
= Sales - cost - taxes
= $219,000 - $96,000 - $22,310
= $100,690
3. Tax shield approach
= (Sales - cost) × (1 - tax rate) + tax rate × depreciation expense
= ($219,000 - $96,000) × 0.23 + 0.23 × $26,000
= $94,710 + $5,980
= $100,690
4. Bottom up approach
= Net income + depreciation
= $74,690 + $26,000
= $100,690
You manage a cable company that offers 2 channels - NBC and Fox. You face 2 types of customers (type A and type B) and there are 100 customers of each type. Their respective values for each channel are:
Type A Type B
NBC $10 $15
Fox $3 $7
Suppose that you sell each channel separately. You should set a price of $__________ for NBC and a price of $_________ for Fox.
Answer:
You should set a price of $___15_____ for NBC and a price of $___7___ for Fox.
Explanation:
a) Data and Calculations:
Customer Type A Type B Maximum Price
NBC $10 $15 $15
Fox $3 $7 $7
Combined value $13 $22
b) The cost of each channel would have enabled a better decision outcome to be reached. However, it is better to set the maximum prices since individual values can change based on the forces of demand and supply.
In September, Larson Inc. sold 40,000 units of its only product for $240,000, and incurred a total cost of $225,000, of which $25,000 was fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U. The sales volume variance, in terms of operating income, for September (to the nearest dollar) was:
Answer:
The sales volume variance is $20,000 Unfavorable.
Explanation:
Particular : Actual ; Flexible Budget ; Variance
Sales : 240,000 ; 300,000 ; 60,000 U
Variable Cost : 200,000 ; 192,000 ; 8,000 U
Contribution Margin : 40,000 ; 108,000 ; 68,000 U
Fixed Cost : 25,000 ; 80,000 ; 55,000 U
Operating Income : 15,000 ; 28,000 ; 20,000U
Bank Reconciliation On July 31, Sullivan Company's Cash in Bank account had a balance of $9,381.58. On that date, the bank statement indicated a balance of $11,828.12. A comparison of returned checks and bank advices revealed the following: Deposits in transit July 31 amounted to $4,650.03. Outstanding checks July 31 totaled $1,908.27. The bank erroneously charged a $422.50 check of Solomon Company against the Sullivan bank account. A bank service charge has not yet been recorded by Sullivan Company of $32.50. Sullivan neglected to record $5,200.00 borrowed from the bank on a ten percent six-month note. The bank statement shows the $5,200.00 as a deposit. Included with the returned checks is a memo indicating that J. Martin's check for $832.00 had been returned NSF. Martin, a customer, had sent the check to pay an account of $858.00 less a $26 discount. Sullivan Company recorded a $141.70 payment for repairs as $1,417.00 Required a. Prepare a bank reconciliation for Sullivan Company at July 31. b. Prepare the journal entry (or entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation. Note: Do not round answers - enter using two decimal places, when needed.
Solution :
Sullivan's Company
Bank Reconciliation Statement, July 31
BANK BOOK
Ending balance from $11,828.12 Balance from the ledger $9,381.58
bank statement.
Add : Add :
Deposit in transit $4,650.03 Note payable borrowed $5,200
from bank
Error by bank $422.50 Error in recording payment $1275.3
$ 16,900.65 $15,856.88
Less: Less :
Outstanding checks $1,908.27 Service charge $32.50
NSF Check $832
Reconciled cash balance $ 14992.38 Reconciled cash balance $14992.38
b).
Date Accounts titles and explanations Debit($) Credit($)
July 31 Cash 5,200.00
Notes payable 5,200.00
July 31 Cash 1275.3
Repair expenses 1275.3
July 31 bank charges 32.50
Cash 32.50
July 31 Accounts receivable 832
cash 832
Thermopolis, Inc. reported retained earnings of $490,953 on December 31, 2017. During the year, Thermopolis recorded net income of $135,075 and paid dividends of $57,762. The company had no other transactions that affected retained earnings. What must retained earnings have been on December 31, 2016
Answer:
the Opening retained earning balance is $413,640
Explanation:
The computation of the retained earnings have been on December 31, 2016 is shown below:
As we know that
Ending retained earning balance = Opening retained earning balance + net income - dividend paid
$490,953 = Opening retained earning balance + $135,075 - $57,762
$490,953 = Opening retained earning balance + $77,313
So, the Opening retained earning balance is $413,640
National Dog Week is a dog food manufacturing factory. Suppose the theoretical capacity for the factory is 25,000 pounds/month. A consultant was brought in to determine their average monthly resource utilization. After extensive analysis, the effective capacity averages 20,000 pounds/month. Therefore, the average safety capacity of the factory is _______ pounds/month.
Answer:
National Dog Week
herefore, the average safety capacity of the factory is __5,000__ pounds/month.
Explanation:
a) Data and Calculation:
Theoretical capacity for the factory = 25,000
Effective capacity for the factory = 20,000
Safety capacity for the factory = 5,000
b) The safety capacity of National Dog Week describes the factory's capacity that is not being put to use currently but can be called to use when demand requires it. It is the difference between the factory total usable capacity and the effective currently being used capacity.
Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November. (CMA Exam adapted) Units Work in process, November 1st 16,300 Started in production during November 100,600 Work in process, November 30th 24,600 The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs. Costs pertaining to November are as follows: Beginning inventory: direct materials, $55,160; direct labor, $20,620; manufacturing overhead, $15,540. Costs incurred during the month: direct materials, $470,970; direct labor, $190,740; manufacturing overhead, $399,080. What are the total costs in the ending Work-in-Process Inventory assuming Bentley uses first-in, first-out (FIFO) process costing
Answer:
$146,443.80
Explanation:
Step 1 : Equivalent Units of Production
FIFO method is interested with Units worked on during the Production Period. Therefore make sure you begin by finishing Opening Work in Process Units.
1. Materials
To Finish Work in Process Inventory (16,300 x 40%) 6,520
Started and Completed (100,600 - 16,300) x 100 % 84,300
Ending Inventory (24,600 x 90%) 22,140
Equivalent units of Production 112,960
2. Conversion Cost
To Finish Work in Process Inventory (16,300 x 80%) 13,040
Started and Completed (100,600 - 16,300) x 100 % 84,300
Ending Inventory (24,600 x 40%) 9,840
Equivalent units of Production 107,180
Step 2 : Cost per equivalent unit
FIFO method is only interested in Costs incurred during the Production Period, therefore Cost in Beginning Inventory must be ignored as these were accounted for in previous year.
Cost per equivalent unit = Total Cost ÷ Total Equivalent Units
Materials = $470,970 ÷ 112,960 = $4.17
Conversion Costs = ($190,740 + $399,080) ÷ 107,180 = $5.50
Step 3 : Cost in the ending Work-in-Process Inventory
Work-in-Process Inventory = Material Cost + Conversion Cost
= 22,140 x $4.17 + 9,840 x $5.50
= $146,443.80
Conclusion :
The total costs in the ending Work-in-Process Inventory assuming Bentley uses first-in, first-out (FIFO) process costing is $146,443.80
Macmillan Toys Inc. is located in the nation of Ruffino near the nation of East Fenwick. Macmillan Toys is considering expanding into Rusalka. Both countries have similar consumer incomes and knowledge bases and share a common language. Also, the transportation networks between the countries are strong. Even so, the two nations have a long-standing dispute concerning the control of an area of land along their common border. Currently, Ruffino rules this land.
What would most likely prevent Macmillan Toys from expanding into Rusalka?
Answer: Political Distance
Explanation:
Political distance refers to a difference in opinion and policies as well as relations that countries have amongst themselves. In this scenario, this is the most likely bone of contention that would prevent Macmillan Toys from expanding into Rusalka.
This is because land disputes fall under political distance and can get very serious. So serious in fact that nations have gone to war over such disputes with the latest being Azerbaijan and Armenia. Macmillan Toys may therefore find it difficult to expand into the country due to this land dispute.
Your losses from a stolen ATM card are unlimited if you fail to report unauthorized use within 30 days after your statement is mailed to you.
a. True
b. False
Which of the following is/are true about kanban? A. The purpose of the kanban system is to ensure that parts are produced JIT to support subsequent processes. B. Some companies control the movement of the containers by using two types of kanban cards, production cards and withdrawal cards. C. Kanban cards take the place of shop paperwork used in traditional repetitive mass production. D. a and b are true
Answer:
c
Explanation:
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Journalizing Payroll Transactions On December 31, the payroll register of Hamstreet Associates indicated the following information: Wages and Salaries Expense $9,500.00 Employee Federal Income Tax Payable 960.00 United Way Contributions Payable 150.00 Earnings subject to Social Security tax 8,800.00 Use Social Security 6.2% and Medicare 1.45% as specified in the text. 1. Determine the amount of Social Security and Medicare taxes to be withheld. If required, round your answers to the nearest cent.
Answer:
Social Security tax
= Social security tax rate * Earnings subject to Social security tax
= 6.2% * 8,800
= $545.60
Medicare taxes.
These will be on the total earnings as there is no limit to the amount it can be applied to:
= 1.45% * 9,500
= $137.75
Stallman Company took a physical inventory on December 31 and determined that goods costing $200,000 were on hand. Not included in the physical count were $25,000 of goods purchased from Pelzer Corporation, FOB, shipping point, and $22,000 of goods sold to Alvarez Company for $30,000, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end.
What amount should Stallman report as its December 31 inventory?
In its first month of operations, Bethke Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $7, and (3) 200 units at $8. Assuming there are 360 units on hand, compute the cost of the ending inventory under the (a) FIFO method and (b) LIFO method. Bethke uses a periodic inventory system.
A) Cost of the ending inventory LIFO.
B) Cost of the ending inventory.
Answer:
1. $247,00
A. $2,720
B.$2,220
Explanation:
1. Calculation to determine What amount should Stallman report as its December 31 inventory
Using this formula
December 31 Ending inventory = Inventory count as per physical count + Inventory in transit FOB Shipping point + Inventory in transit FOB destination
Let plug in the formula
December 31 Ending inventory= $200,000 + $25,000+ $22,000
December 31 Ending inventory= $247,000
Therefore What amount should Stallman report as its December 31 inventory is $247,000
A) Calculation to determine the Cost of the ending inventory FIFO.
Cost of ending inventory = (200 units * $8) +(360 units- 200 units * $7)
Cost of ending inventory = (200 units * $8) + (160 units * $7)
Cost of ending inventory= $1,600 + $1,120
Cost of ending inventory= $2,720
Therefore The Cost of ending inventory is $2,720
(b) Calculation to determine The cost of ending inventory under the LIFO method
Cost of ending inventory = (300 units * $6) +(360 units -300 units* $ 7)
Cost of ending inventory = (300 units * $6) + (60 units * $ 7)
Cost of ending inventory = $1,800 + $420
Cost of ending inventory = $2,220
Therefore The cost of ending inventory under the LIFO method will be $2,220
Assume you are a hiring manager selecting between two finalist candidates, Candidate A and Candidate B. The successful candidate will earn an annual salary of $250,000. Candidate A will generate $500,000 in revenue with 85% probability and $300,000 in revenue with 15% probability. Candidate B will generate $500,000 in revenue with 50% probability and $250,000 inrevenue with 50% probability.a.What is the expected net revenue of Candidate A
Which of the following statements is incorrect?
a. Adjustments to prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities.
b. Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded.
c. Adjusting entries can be used to record both accrued expenses and accrued revenues.
d. Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time.
e. Adjusting entries affect the cash account.
my brain can't process this lol
The price of Microsoft is $37 per share and that of Apple is $43 per share. The price of Microsoft increases to $42 per share after one year and to $47 after two years. Also, shares of Apple increase to $49 after one year and to $59 after two years. If your portfolio comprises 100 shares of each security, what is your portfolio return in year 1 and year 2
Answer: 13.75% ; 16.48%
Explanation:
Year 0:
Microsoft: Current value = 100 at $37 = $3700
Apple: Current value = 100 at $43 = $4300
Portfolio value = $3700 + $4300 = $8000
Year 1:
Microsoft: value at year 1 = 100 at $42 = $4200
Apple: value at year 1= 100 at $49 = $4900
Portfolio value = $4200 + $4900 = $9100
Year 2:
Microsoft: value at year 2 = 100 at $47 = $4700
Apple: value at year 2 = 100 at $59 = $5900
Portfolio value = $4700 + $5900 = $10600
Therefore, Portfolio returns for year 1 will be:
= (value at the end of year 1 / current value) - 1
= (9100 / 8000) - 1
= 1.1375 - 1
= 0.1375
= 13.75%
Portfolio returns for year 2 will be:
= (value at the end of year 2 / value at the end of year 1) - 1
= (10600 / 9100) - 1
= 16.48%
Suppose an American business owner purchases chocolates from Belgium in order to sell them in her shops. This would be entered as a ____________ item under the ___________________ section of the U.S. current account. Consider the goods and services balance. According to the table, the United States is running a trade ____________ .
The current account balance suggests that U.S. current account transactions (exports and imports of goods and services, as well as inflow and outflow of investment income and transfers) created outpayments of foreign currencies from the United States that were __________________the inpayments of foreign currencies to the United States.
Any surplus or deficit in one account must be offset by deficits or surpluses in other balance-of-payments accounts. Because the current account is in ____________ , the excess of foreign currency held by Americans must either be loaned to foreigners or used to buy foreign stocks or bonds. All of these transactions are then recorded in the _______________account. Since any imbalance in one account automatically leads to an equal, but opposite, imbalance in the other, the balance of payments is always _____________
Answer:
Debit
U.S. merchandise imports
Surplus
equal to
Surplus
current
zero
Explanation:
The trade deficit or surplus is based on the exports and imports of the country. When the imports are higher than exports then there will be trade deficit in the current account. In the given scenario the case is other way round, here imports are less than exports which suggests that there is a trade surplus which is offset by other accounts and balance of payment turn out to be zero.
Patterson Development sometimes sells property on an installment basis. In those cases, Patterson reports income in its income statement in the year of the sale but reports installment income by the installment method on the tax return. Installment income in 2021 was $240 million, which Patterson expects to collect equally over the next four years. The tax rate is 25%, but based on an enacted law, is scheduled to become 35% in 2023.
Patterson's pretax accounting income for the 2013 income statement was $530 million of this, $30 million is non-taxable revenue from proceeds of a life insurance policy. There were no differences between accounting income and taxable income other than those described above and no cumlative temporary differences existed at the beggining of the year:
1. Prepare the appropriate journal entry to record patterson's 2013 income taxes.
2. What is Patterson's 2013 net income?
Answer:
1. Debit Income tax expense for $143 million; Credit Deferred tax liability for $78 million; and Credit Income tax payable for $65 million.
2. Patterson's 2021 net income is $387.
Explanation:
Note: There is an error in the question because of date inconsistency. Therefore, 2021 upward is used in the answer to ensure date consistency.
1. Prepare the appropriate journal entry to record patterson's 2021 income taxes.
Note: See the attached excel file for the calculation of income tax payable and deferred tax liability.
The journal entry will look as follows:
Date General journal Debit ($'M) Credit ($'M)
31 Dec 2021 Income tax expense 143
Deferred tax liability 78
Income tax payable 65
(To record income tax payable.)
2. What is Patterson's 2021 net income?
This can be determined as follows:
Particulars ($'Million)
Pre accounting income 530
Income tax expense (143)
Net income 387
PLEASE HELP!! Imagine you are applying for a job as a babysitter or as a grass-cutter. Write a cover letter that tells the family why you are qualified for the job. Use a proper business letter writing format
I am a devoted babysitter. I have plenty of experience with children. I know how to cook, I am great with tools. I am very independent and have plenty of potentials. I hope you can trust me with your kids or your yard.
Isaiah is a Financial Quantitative Analyst for a major stock investment company. What does Isaiah do on a daily basis as a part of his job?
He researches, analyzes, and summarizes information about fraud.
He assesses financial situations using mathematical models.
He analyzes tax information using mathematical formulas.
He manages the paperwork for buying and selling securities.
Answer:
He researches, analyzes, and summarizes information about fraud.
Answer:
A
Explanation:
He researches, analyzes, and summarizes information about fraud.
A discount term of 20/15/5 means: Group of answer choices based on the timing of payment, 1 of the 3 discount options can be applied based on the size of the order, 1 of the 3 options can be applied if all conditions are met, all 3 discounts can be applied to the list price all three discounts are possible but it is rare that all three are able to be applied
Answer: If all conditions are met, all 3 discounts can be applied to the list price
Explanation:
This is a series discount which means the following:
20 is for 20% off the list price which leaves 80%.
15 is for 15% off which leaves 85% and,
5 is for 5% off which leaves 95%.
If all conditions placed by the seller are met, all 3 discounts can be applied to the list price.
They are applied by multiplying the discounted price proportions.
= 0.8 * 0.85 * 0.95
= 0.646 will be the discounted price.
Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the average variable expense per cup is $0.24. The average fixed expense per month is $1,600. An average of 2,100 cups are sold each month. What is the CM Ratio for Coffee Klatch?
Answer:
The contribution margin ratio for Coffee Klatch is 83%.
Explanation:
Given that Coffee Klatch is an espresso stand in a downtown office building, and the average selling price of a cup of coffee is $ 1.49 and the average variable expense per cup is $ 0.24, and the average fixed expense per month is $ 1,600, to determine what is the CM Ratio for Coffee Klatch if an average of 2,100 cups are sold each month, the following calculation must be performed:
Contribution margin ratio: (sales - variable costs) / sales
((2,100 x 1.49) - (2,100 x 0.24)) / (2,100 x 1.49) = X
(3.129 - 504) / 3.129 = X
2.625 / 3.129 = X
0.83 = X
Thus, the contribution margin ratio for Coffee Klatch is 83%.
Ann Jones uses a dry-cleaning machine in her business, and it was partially destroyed by firE. At the time of the fire, the adjusted basis was $20,000 and its fair market value was $18,000. The adjusted basis after the fire is $10,000 and the fair market value after the casualty is $10,000. How much is the casualty loss
Answer:
the casualty loss is $8,000
Explanation:
The computation of the casualty loss is given below:
Lower of
= Adjusted basis or decline in FMV
= $10,000 or ($18,000 - $10,000)
= $10,000 or $8,000
= $8,000
hence, the casualty loss is $8,000
The same would be considered and relevant
The other values would be ignored
Pix Company has the following production data for March: no beginning work in process, units started and completed 25,500, and ending work in process 4,400 units that are 100% complete for materials and 40% complete for conversion costs. Pix uses the FIFO method to compute equivalent units. If unit materials cost is $5 and unit conversion cost is $12, determine the costs to be assigned to the units transferred out and the units in ending work in process. The total costs to be assigned are $476,620.
Answer:
Ending Work In Process Cost = $43,120
Units Transferred out Cost = $433,500
Explanation:
Step 1 : Equivalent units calculation
Materials
Ending Work in Process = 4,400 x 100% = 4,400 units
Conversion
Ending Work in Process = 4,400 x 40% = 1,760 units
Step 2 : Total Costs assigned to Ending Work In Process
Ending Work In Process Cost = Materials + Conversion Costs
= 4,400 x $5 + 1,760 x $12
= $43,120
Step 3 : Total Cost of Units Transferred out
Units Transferred out = Total Unit Cost x Units transferred
= $17.00 x 25,500
= $433,500
You run a construction firm. You have just won a contract to build a government office building Building it will require an investment of $10 million today and $5 million in one year. The government will pay you $20 million in one year upon the building's completion. Suppose the cash flows and their times of payment are certain, and the risk-free interest rate is 10%. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today?
Answer:
$3.64 million
The Npv can be turned into cash by borrowing $18.18 million today and paying back in one year time with the $20 million that would be paid
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-10 million
Cash flow in year 1 = $20 million - $5 million = 15 million
I = 10%
NPV = 3.63 million
The Npv can be turned into cash by borrowing $18.18 million today as the present value of 20 million is 18.18 million
20 million / 1.10 = 18.18 million
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Batista Company management wants to maintain a minimum monthly cash balance of $19,900. At the beginning of April, the cash balance is $19,900, expected cash receipts for April are $244,400, and cash disbursements are expected to be $253,300. How much cash, if any, must be borrowed to maintain the desired minimum monthly balance
Answer:
the amount must be borrowed is $8,900
Explanation:
The computation of the amount must be borrowed is shown below:
Opening cash balance $19,900
Add: cash receipts $244,400
Less: cash disbursements -$253,300
Cash balance after disbursements $11,000
Minimum monthly cash balance $19,900
Amount to be borrowed $8,900
hence, the amount must be borrowed is $8,900
Explain the effects of low price-guarantee on the price.
Answer:
Low price guarantees have adverse effects on consumer behavior. These strategies can cause consumers to become suspicious of the offer and may avoid making the purchase all together.
Low price guarantee is a policy where the seller offer a price is guaranteed to match or beat any other lower price in the market.
Usually, the low price guarantees does persuade the consumers to make purchase, but, it can also have adverse effects on consumer behavior at times.
The strategy of low price-guarantee on the price of the product can cause the consumers to become suspicious and thus, may lead to a decision to avoid making the purchase.
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brainly.com/question/20353337
In the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen.
For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a price level of 100 in the coming year. If the actual price level turns out to be 90, soybean prices will _________, and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by ____________the quantity of soybeans supplied. If other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to __________ the natural level of output in the short run. Suppose the economy's short-run aggregate supply (AS) curve is given by the following equation:
Answer:
1. A fall in prices of soybean
2. Reduce quantity she supplies
3. Falls below
Explanation:
We are to fill in the blanks here
1. In this question the farmer expected price level of 100 but the actual price realized was 90 so there would be a fall in the price of soybean.
2. If farmer feels that price of other goods caused this fall, she would reduce the quantity of soybean that she supplies
3. The quantity supplied is then going to fall below natural level in the short run
