Answer:
Mecca Copy
Budgeted Balance Sheet
Assets
Current assets:
Cash 13200
Accounts receivable 8900
Supplies inventory 5500
Total current assets 27600
Plant and equipment:
Equipment 38000
Accumulated depreciation (15400)
Plant and equipment, net 22600
Total assets 50200
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 2600
Stockholders' equity:
Common stock 5000
Retained earnings 42600
Total stockholders' equity 47600
Total liabilities and stockholders' equity 50200
Note: Retained earnings = beginning balance of retained earnings + Net income - Dividend
= 25,000 + 21100 - 3500
= 42,600
Ben and Jerry were shareholders of Water Ice Inc., an S corp. On Jan. 1, 1998, Ben owned 40 shares and Jerry owned 60 shares. Ben sold his shares to Joe for $10,000 on March 31, 1998. The corp. reported a $50,000 loss at the end of 1998.
How much of the loss is allocated to Joe?
A. $20,000
B. $15,060
C. $12,500
D. $10,000
Answer: $15,060
Explanation:
From the question, we are informed that Ben and Jerry were shareholders of Water Ice Inc., an S corp. On Jan. 1, 1998, Ben owned 40 shares and Jerry owned 60 shares.
We are further told that Ben sold his shares to Joe for $10,000 on March 31, 1998 and that the corp. reported a $50,000 loss at the end of 1998. The loss that will be allocated to Joe will be:
= $50,000 × 40% × 9/12
= $50,000 × 0.4 × 0.75
= $15,000
The closest figure we have close to that is $15,060 which is option B
A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells for $44. a. What is the total rate of return on the stock?
Answer:
The total rate of return on the stock is 14%.
Explanation:
The sources of income from a stock are dividends and increase in its value. Therefore, the total rate of return on stock is calculated by dividing the addition of appreciation in the of the stock and dividends paid by the original stock price.
Therefore, the total rate of return on the stock can be calculated using the following formula:
Total rate of return = [(P1 - Po) + D] / Po .......................... (1)
Where;
P1 = Ending stock price = $44
Po = Initial stock price = $40
D = Dividend paid = $2
Substituting the values into equation (1), we have:
Total rate of return = [(44 - 40) + 2] / 44
Total rate of return = [4 + 2] / 44
Total rate of return = 6 / 44
Total rate of return = 0.14, or 14%
A risk-free, zero-coupon bond has 15 years to maturity. Which of the following is closest to the price per $1,000 of face value at which the bond will trade if the current YTM is 6.1%?
a $411.40
b. $553.15
c $663.78
d. $885.05
e. $774.42
Answer:
The bond will trade at a. $411.40.
Explanation:
Use the following data to find the price, PV of the bond.
n = 15
pmt = $0
p/yr = 1
fv = $1,000
ytm = 6.10 %
pv = ?
Using a financial calculator, the bond price (PV) is $411,4047 or $411,40
Conclusion :
The bond will trade at $411.40 if the current YTM is 6.1%.
Which of the following is one of the seven website design elements that marketers can use to produce an effective customer experience online?A. consistencyB. collaborationC. commercializationD. commerceE. creativity
Answer:
D
Explanation:
The Answer is Commerce
pls thnx and mark me brainliest
who are the customers for textbooks? What do these customers want in terms of goods and services related to textbooks? From the publishers point of view, who are the key customer?
Answer:
the customers for textbooks are students and schools
The science of designing for efficient and comfortable interaction between a product and the human body is called __________.
Answer:
The question is lacking the multiple-choice options, below is the complete question and options:
The science of designing for efficient and comfortable interaction between a product and the human body is called __________.
A. the Kazuo principle
B. physical economics
C. the Kotlean method
D. ergonomics
Answer:
The correct answer is:
ergonomics (D)
Explanation:
Ergonomics is the application of the principles of psychology and physiology to the design and engineering of products, processes, or systems, with the aim of reducing human error, increasing productivity and enhancing safety and comfort, by paying particular attention to the human being the thing being interacted with. The ergonomic process involves:
Assessing risk, planning improvements, measuring progress, and scaling solutions.
Ergonomics involves so many disciplines including anthropology, psychology, physiology, sociology, engineering, biomechanics etc.
To gain more in-depth knowledge of ergonomics, I suggest you look it up.
Carlos and Deborah are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and corn on the rest.
Rye Corn
(Bushels per acre) (Bushels per acre)
Carlos 18 6
Deborah 28 7
___________ has an absolute advantage in the production of rye, and _________ has an absolute advantage in the production of corn. Carlos's opportunity cost of producing 1 bushel of corn is___________ bushels of rye, whereas Deborah's opportunity cost of producing 1 bushel of corn is ___________ bushels of rye. Because Carlos has a ___________ opportunity cost of producing corn than Deborah,____________ has a comparative advantage in the production of corn, and____________ has a comparative advantage in the production of rye.
Answer:
Deborah
Deborah
3
4
lower
Carlos
Deborah
Explanation:
a person has comparative advantage in production if he / she produces at a lower opportunity cost when compared to other people
for carlos
the opportunity cost of producing rye = 6 / 18 = 0.33
the opportunity cost of producing corn = 18 / 6 = 3
for Deborah,
the opportunity cost of producing rye = 7 / 28 = 0.25
the opportunity cost of producing corn = 28 /7 =4
Carlos has a comparative advantage in the production of corn because he produces at a lower opportunity cost when compared with Deborah
Deborah has a comparative advantage in the production of rye because he produces at a lower opportunity cost when compared with Carlos
A person has absolute advantage in production if he produces more quantity of the product when compared to other people.
Deborah has absolute advantage in the production of both rye and corn
The correct statements will be that
1. Carlos has an absolute advantage in the production of Rye
2. Deborah has an absolute advantage over the production of Corn.
3. Carlos' opportunity cost of producing 1 bushel of rye is 3 bushels of rye
4. Deborah's opportunity cost of producing 1 bushel of corn is 4 bushels of rye.
5. Carlos has a lower opportunity cost of producing corn than Deborah.
6. Deborah has a competitive advantage in the production of Corn.
7. Carlos has a competitive advantage in the production of Rye.
The production outputs of Carlos and Deborah suggests that Deborah is a more efficient farmer.
Production outputThe production output refers to the total outcome derived from the use of resources available at a given period of time, such that the two different outputs are comparable. Here, as the production output of Deborah is more in both the cases of production of rye and corn, it can be said that the production output of Deborah is more than Carlos.Hence, the correct statements regrading the production outputs of Carlos and Deborah are as aforementioned.
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On January 2 2018, Maxwell Furniture purchased display shelving for $8,100 cash, expecting the shelving to remain in service for five years. Maxwell depreciated the shelving on a double-declining-balance basis, with $1,800 estimated residual value. On October 31, 2019, the company sold the shelving for $2,700 cash.
Requirement:
Record both the depreciation expense on the shelving for and its sale in . Also show how to compute the gain or loss on the disposal of the shelving.
Answer: Please find answers in explanation column
Explanation:
Double declining depreciation rate = 1/n x 2
= 1/5 x 2= 2/5 = 0.4 x 100 = 40 %
Carrying value = if depreciation rate = 40 % , then begining value = 100-40=60%
Depreciation expense for 2019 = Carrying value x depreciation nrate x period(jan- oct) = $8,100 x 60% x 40% x 10/12 = $1,620
Journal entry to record Depreciation expense
Accounts Debit Credit
Depreciation expense $1,620
Accumulated depreciation--Display shelving $1,620
Carrying value / Ending balance of shelving at October, 2019= cost - depreciation
8,100 - 8,100 x 40% + 1620 = 8,100 - 4,860= $3240
Gain/ Loss = Sale - the ending balance of the carrying value of the asset
$2700 - $3240= -540= $540 loss
Journal to record shelving for and its sale in .
Accounts Debit Credit
Cash $2700
Accumulated depreciation--
Display shelving (3240 +1620) $4860
loss on sale of asset $540
Shelving $8,100
Harry and Sally formed the Evergreen partnership by contributing the following assets in exchange for a 50 percent capital and profits interest in the partnership.
Basis Fair Market Value Harry:
Cash $30,000 $30,000
Land $100,000 $120,000
Totals $130,000 $150,000
Sally:
Equipment used in business $200,000 $150,000
Totals $200,000 $150,000
a. How much gain or loss will Harry recognize on the contribution?
b. How much gain or loss will Sally recognize on the contribution?
c. Should Sally consider selling the property to the partnership rather than contributing it?
A. Yes
B. No
Answer:
a) $0
Generally, partners recognize gain on property contributed to a partnership only when the cash they are deemed to receive from debt relief exceeds their basis in the partnership prior to the deemed distribution. Harry did not have any debt relief.
b) $0.
Partners may never recognize loss when property is contributed to a partnership even when they are relieved of debt.
c) Sally should consider selling the property to the partnership rather than contributing it. By selling the property, she could recognize the $50,000 built-in loss on the equipment.
It will cost $3,000 to acquire a small ice cream cart. Cart sales are expected to be $1,400 a year for three years. After the three years, the cart is expected to be worthless as that is the expected remaining life of the cooling system. What is the payback period of the ice cream cart?
Answer:
2.14 years
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flows = $3,000 / $1,400 = 2.14 years
A share of stock is now selling for $120. It will pay a dividend of $10 per share at the end of the year. Its beta is 1. What must investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 6% and the expected rate of return on the market is 18%. (Round your answer to 2 decimal places.)
Answer:
P1 = 131.6566627 rounded off to $131.66
Explanation:
To calculate the price of the stock at the end of the year or P1, we first need to determine the required rate of return on the stock and the growth rate in dividends.
The required rate of return can be found using the CAPM equation. The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
rRF is the risk free rate rM is the return on market
r = 0.06 + 1 * (0.18 - 0.06)
r = 0.18 or 18%
Now we assume that the stock is a constant growth stock which means that the growth in dividends is expected to be constant throughout. The price of such a stock is found using the constant growth model of DDM. The formula for price today under the constant growth model is,
P0 = D1 / (r - g)
Where,
P0 is price today D1 is expected dividend for the next period g is the growth rate in dividends
Plugging in the available variables, g is,
120 = 10 / (0.18 - g)
120* (0.18 - g) = 10
21.6 - 120g = 10
g = (10 - 21.6) / -120
g = 0.096667 or 9.6667% rounded off to 9.67%
So to calculate the price at the end of the year or P1, we will use D2.
P1 = 10 * (1+0.0967) / (0.18 - 0.0967)
P1 = 131.6566627 rounded off to $131.66
Which of these conditions helped establish the foundation for a market revolution in the United States
Question Completion:
Choices: Rapid improvements in transportation and communication; the production of goods for a cash market; and the use of inventions and innovations to produce goods for a mass market.
Answer:
The condition that helped to establish the foundation for a market revolution in the United States is:
Rapid improvements in transportation and communication
Explanation:
Rapid improvements in transportation and communication spurred innovations. With innovations, capitalism was born. Innovations needed factories for mass production. In turn, according to American History, "factories and mass production increasingly displaced individual artisans and farmers," who survived at subsistent levels. Large farms grew and produced crops for distant markets, no longer only for family and local markets. Most of the crops were further processed, packaged, preserved, and shipped through cheap transportation systems like the Erie Canal, using steamboats. And the rest, they say, is history.
Which clause in a mortgage allows a lender to increase the interest rate? A.) Defeasance B.) Escalation C.) Acceleration D.) Exculpatory
Answer:
A
Explanation:
Harwell Company manufactures automobile tires. On July 15, 2018, the company sold 1,300 tires to the Nixon Car Company for $50 each. The terms of the sale were 3/10, n/30. Harwell uses the gross method of accounting for cash discounts. Required: 1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2018. 2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on August 15, 2018
Answer and Explanation:
The Journal entry is shown below:-
1. a. Accounts Receivable Dr, $65,000 (1,300 × $50)
To Sales revenue $65,000
(Being sales revenue is recorded)
b. Cash Dr, $63,050
Sales discount Dr, $1,950 ($65,000 × 3%)
To Accounts Receivable $65,000
(Being collection is recorded)
2. a. Accounts Receivable Dr, $65,000
To Sales revenue $65,000
(Being sales revenue is recorded)
Cash Dr, $65,000
To Accounts Receivable $65,000
(Being collection is recorded)
A divisional manager receives a bonus based on 10% of the residual income from the division. During the current year, the division reported revenues of $1,000,000 and expenses of $500,000. The division had $2,000,000 in average operating assets. The minimum required rate of return for the division was 15%. What was the amount of the manager's bonus
Answer:
The amount of the manager's bonus is $20,000
Explanation:
Residual income = Net income - ( average operating assets * minimum rate of return)
Net income= Revenues - Expenses = $1,000,000 - $500,000
Net income = $500,000
Residual income = 500,000 - (2,000,000 * 15%)
= 500,000 - $300,000
= $200,000
Managers bonus = $200,000 * 10%
Managers bonus = $20,000
Question 7 of 10 How much should you save each year for maintenance on your home? $500 Whatever your home inspector recommends 7% of your gross income At least 1% of the purchase price
Answer: At least 1% of the purchase price
Explanation:
The 1% rule is a popular practice that estimates that 1% of a house´s purchase price should be expected to be required for maintenance every year. This is the case for a house that is less than five years old. Houses between 5 and 25 years old could range between a 1 and 4% annual maintenance budget, depending also on its location, the market, its size, and the impact of the weather.
based on the characteristics of constructive conflicts, which of the following would help a manager create constructive conflicts during a debate?
1. Support the weaker members during a debate
2. Explain conflict in terms of interpersonal incompatabilities
3. Support the stronger memebrs during the debate
4. Keep the debate focused on the issue
5. Maintain competitive oreientation on the debate
Answer:
The correct answer is: 4. Keep the debate focused on the issue
Explanation:
A constructive conflict can be understood as different points of view that arise in an organization on the same issue.
Therefore, it can be a great way for the organization to enrich itself with new ideas, thoughts and different ways of carrying out actions that will help the organization to achieve its objectives and goals.
Therefore, the most suitable alternative for building a constructive conflict during a debate is for the manager to always focus on the issue discussed, and not for the debate to turn to support due to interpersonal relationships.
What is the difference between full absorption costing and variable costing?A. In full absorption costing, all of the non-manufacturing costs are expensed. In variable costing, all of the non-manufacturing expenses are included in the cost of the product.B. In full absorption costing, fixed manufacturing overhead is expensed. In variable costing, fixed manufacturing overhead is included in the cost of the product.C. In full absorption costing, fixed manufacturing overhead is included in the cost of the product. In variable costing, fixed manufacturing overhead is expensed.D. Variable costing must be used for external financial reports while full absorption costing can only be used for internal reporting.
Answer: C. In full absorption costing, fixed manufacturing overhead is included in the cost of the product. In variable costing, fixed manufacturing overhead is expensed.
Explanation:
Full absorption costing accounts for all the costs involved in making a product including the indirect and the direct costs. That means both variable costs like direct materials and direct labor as well as fixed costs like rent, and insurance are included in the cost of the product.
Variable costing on the other hand expenses fixed manufacturing overhead separately. As a result, Full absorption has a higher cost of inventory than does Variable costing.
Rocket Shoe Company is planning a one-month campaign for August to promote sales of one of its two shoe products. A total of $113,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign. Cross-Trainer Shoe Running ShoeUnit selling price $41 $45 Unit production costs: Direct materials $(8) $(10) Direct labor (3) (3) Variable factory overhead (2) (3) Fixed factory overhead (3) (4) Total unit production costs $(16) $(20) Unit variable selling expenses (13) (12) Unit fixed selling expenses (8) (4) Total unit costs $(37) $(36) Operating income per unit $4 $9No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 24,000 additional units of cross-trainer shoes or 20,000 additional units of running shoes could be sold without changing the unit selling price of either product.Required:Prepare a differential analysis report presenting the additional revenue and additional costs anticipated from the promotion of cross-trainer shoes and running shoes.
Answer:
Contribution Margin from proposal
Cross Trainer Shoes $360,000
Running Shoe $340,000
Explanation:
Preparation of differential analysis for Rocket Shoe Company
DIFFERENTIAL ANALYSIS
Cross Trainer Shoes Running Shoe
Differential Revenue 984,000 900,000
Differential costs:
Direct Material (192,000) (200,000)
Direct labor (72,000) (60,000)
Variable factory overhead (48,000) (60,000)
Variable selling expense (312,000) (240,000)
Differential cost (624,000) (560,000)
Contribution Margin from proposal 360,000 340,000
Differential Revenue
Cross Trainer Shoes(41*24,000)=$984,000
Running Shoe(45*20,000) =$900,000
Differential costs:
Direct Material
Cross Trainer Shoes (8*24,000)=192,000
Running Shoe(10*20,000)=200,000
Direct labor
Cross Trainer Shoes (3*24,000)=72,000
Running Shoe(3*20,000)=60,000
Variable factory overhead
Cross Trainer Shoes (2*24,000)=48,000
Running Shoe(3*20,000)=60,000
Variable selling expense
Cross Trainer Shoes (13*24,000)=312,000
Running Shoe(12*20,000)=240,000
Differential cost is the addition of direct materials +direct labor + Variable factory overhead+Variable selling expense
Contribution Margin from proposal
Cross Trainer Shoes 984,000-624,000=360,000
Running Shoe 900,000-560,000=340,000
Since Cross trainer shoes had $360,000 this means that cross trainer shoes would contribute more than Running shoe which had $340,000 because Cross trainer shoes contribution margin is higher.
Kartman Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.5 pounds $ 7.00 per pound $ 45.50 Direct labor 0.6 hours $ 24.00 per hour $ 14.40 Variable overhead 0.6 hours $ 4.00 per hour $ 2.40 In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for June is:
Answer:
Direct labor time (efficiency) variance= $4,560 unfavorable
Explanation:
Giving the following information:
Standard= Direct labor 0.6 hours $ 24.00 per hour $ 14.40
Actual production= 3,500 units.
2,290 direct labor-hours were used.
To calculate the direct labor efficiency variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Standard quantity= 3,500*0.6= 2,100
Direct labor time (efficiency) variance= (2,100 - 2,290)*24
Direct labor time (efficiency) variance= $4,560 unfavorable
The labor efficiency variance is $4,560 unfavorable.
Calculation of the labor efficiency variance:The following formula should be used for determining the same.
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Here,
Standard quantity= 3,500*0.6= 2,100
So,
Direct labor time (efficiency) variance= (2,100 - 2,290)*24
= $4,560 unfavorable
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Waterway Industries's direct materials budget shows total cost of direct materials purchases for January $200000, February $220000 and March $290000. Cash payments are 60% in the month of purchase and 40% in the following month. The budgeted cash payments for March are
Answer:
Total cash disbursement= $262,000
Explanation:
Giving the following information:
Purchases:
January= $200,000
February= $220,000
March= $290,000
Cash payments are 60% in the month of purchase and 40% in the following month.
Cash disbursement March.
Purchase on cash March= 290,000*0.6= 174,000
Purchase on account from February= 220,000*0.4= 88,000
Total cash disbursement= $262,000
Sloan Transmissions inc.,has the following estimates for its new gear assembly project: price=$2,200 per unit., variable cost= $440 per unit., fixed costs = $1.6 million., quantity = 90,000 units. suppose the company believes all of its estimates are accurate only to
Answer:
Best case
Price 2,640
Variable cost per unit 352
Fixed cost 1.28 million
Quantity 108,000 units
Worst case
Price 1,760
Variable cost per unit 528
Fixed cost 1.92 million
Quantity 72,000 units
Explanation:
Based on the information given in the best case expenses would be 20% lower while the incomes will be 20% higher.
Calculation for the price
Price = 2,200 ×(1+0.20)
Price=2,200×1.2
Price = 2,640
Calculation for Variable cost per unit
Variable cost per unit = 440× (1-0.20)
Variable cost per unit=440×0.80
Variable cost per unit= 352
Calculation for fixed cost
Fixed cost = 1.60 million ×(1-0.20)
Fixed cost=1.60 million× 0.80
Fixed cost= 1.28 million
Calculation for the Quantity
Quantity = 90,000 × (1+0.20)
Quantity =90,000×1.2
Quantity=108,000units
Therefore, Best case will be:
Price 2,640
Variable cost per unit 352
Fixed cost 1.28 million
Quantity 108,000units
Based on the information given in the worst case expenses would be 20% higher while incomes would be 20% lower.
Calculation for the price
Price = 2,200 × (1-0.20) = 1080
Price=2,200 ×0.8
Price=1,760
Calculation for the Variable cost per unit
Variable cost per unit = 440 × (1+0.20)
Variable cost per unit=440× 1.2
Variable cost per unit= 528
Calculation for Fixed cost
Fixed cost = 1.60 million × (1+0.20)
Fixed cost=1.60 million×1.2
Fixed cost= 1.92 million
Calculation for the Quatity
Quantity = 90,000 ×(1-0.20)
Quantity=90,000×0.8
Quantity= 72,000 units
Therefore Worst case will be:
Price 1,760
Variable cost per unit 528
Fixed cost 1.92 million
Quantity 72,000 units
If a beneficiary wants to make sure that the life insurance proceeds being paid out are not exhausted before he or she dies, the beneficiary would choose which of the following settlement options?
a. Fixed amount
b. Fixed income
c. Fixed time
d. Fixed period
Answer:
Option d. Fixed period
Explanation:
time is very essential. Anytime the policy owner specifies payment to be guaranteed for a specific period regardless of who is the beneficiary, policy owner or who receive the payment,is the fixed period settlement option.
Anything that occur to annuity after the owner's death is dependent on the type of annuity and its payout plan.
A fixed-period, is that which is for a certain period of time. the annuity guarantees payments to the annuitant for a set length of time. example is about 10, 15, or 20 years and case payments will continue to be paid to the beneficiary until the time given or period is due or when account’s balance reaches zero.
The principle that each World Trade Organization member must accord to all other member countries tariff treatment no less favorable than it provides to any other country is known as the __________ principle.
Answer:
Most favoured nation principle
Explanation:
Most favoured nation (MFN) clause of the World Trade Organisation requires that when a nation trades with others the concessions, immunities, and privileges granted to one nation should be the the same granted to all WTO members.
It discourages discrimination where one nation in international trade is favoured above another.
For example if Ghana reduces tariff on trades with South Africa it is expected that tariffs to other WTO nations will also be reduced to 3%.
Exceptions to this principle are for developing nations, regional free trade areas, and custom unions.
The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n)
Answer:
Operating Activity
Explanation:
The Indirect method, reconciles the Operating Profit to the Operating Cash Flow by adjusting the following items (1) Non Cash flow items previously added or deducted from Operating Profit and (2) Changes in Working Capital items.
Amortization of bond premium is an item of non-cash flow that was previously deducted from Operating Profit and needs to be added back.
The Federal Reserve S role as a lender of last resort involves lending to which of the following financially troubled institutions?
a. U.S. state governments when they run short on
b. U.S. banks that cannot borrow elsewhere
c. Governments in developing during currency crises.
Answer: U.S. banks that cannot borrow elsewhere
Explanation:
Lender of last resort is.a situation that occurs when the central bank in a country gives loans to the commercial banks in the country when they are going through financial difficulties.
In this scenario, The Federal Reserve S role as a lender of last resort involves lending to U.S. banks that cannot borrow elsewhere.
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. Income Statement Sales Revenue Expenses S 41,600 Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Rent Expense Insurance Expense Interest Expense Utilities Expense 17,500 1,300 8,300 3,800 1,550 1,450 Net Income S 6,650 Selected Balance Sheet Accounts Ending Beginning Balances Balances Accounts Recelvable Inventory Accounts Payable Prepaid Rent Prepaid Insurance Salaries and Wages Payable Utilities Payable $570 820 430 29 27 600 685 480 32 43 17
Required:
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.
Answer:
Direct Products Company
Operating cash flow statement
For the year ended December 31, 202x
Net income $6,500
Adjustments to net income:
Depreciation expense $1,300Decrease in accounts receivable $30Decrease in prepaid insurance $5Increase in salaries payable $23Increase in utilities payable $7Increase in inventory ($135)Increase in prepaid rent ($7)Decrease in accounts payable ($50) $1,173Net cash flow provided by operating activities $7,673
Explanation:
Net Income $6,650
Depreciation Expense $1,300
ending beginning
Accounts Receivable $570 $600
Inventory $820 $685
Accounts Payable $430 $480
Prepaid Rent $29 $22
Prepaid Insurance $27 $32
Salaries Payable $66 $43
Utilities Payable $24 $17
Blue Stone Builders recently offered to sell 45,000 newly issued shares of stock to the public. The underwriters charged a fee of 8.2 percent and paid Blue Stone Builders the uniform auction price for each of those shares. Which one of the following terms best describes this underwriting?
a) Private placement
b) Best efforts
c) Public rights
d) Dutch auction
e) Market commitment
Answer: d) Dutch auction
Explanation:
Dutch Auction refers to a type of Public Offering in which the issuing company holds a sort of auction and receives bids on the shares that it has in. Using these bids they are able to set a price for the stock which is the highest price received.
However, the bids are based on the amount an investor can buy in terms of quantity and price. The lowest acceptable bid is then charged on all the stock and is called the Uniform auction price which is what Blue Stone paid thereby making this a Dutch Auction.
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20 percent a year for the next 4 years and then decreasing the growth rate to 5 percent per year. The company just paid its annual dividend in the amount of $2.00 per share. What is the current value of one share of this stock if the required rate of return is 5.70 percent
Answer:
Current market value =$40.6
Explanation:
The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.
PV of dividend from year 1 to 4
Year Present Value
1 2 × (1.2) ×(1.057)^(-1) = 2.27
2 2 × (1.2)^2×(1.057)^(-2)= 2.58
3 2 × (1.2)^3×(1.057)^(-3) = 2.93
4 2 × (1.2)^4×(1.057)^(-4) = 3.32
Total PV = 11.10
PV of dividend from year 1 to 4 = 11.10
PV of dividend from year 5 and beyond
This will be done in two steps:
Step 1: PV (in year 4 terms) of dividends
( 2 × (1.2)^4× (1-0.05) )/(0.057--(0.05)) = 36.82
Step 2 : PV( in year 0 terms) of dividends
=PV in (year 4 terms)× (1+r)^-4
=36.82 × 1.057^(-4) = 29.50
PV of dividend from year 5 and beyond =29.50
Current market value = Total PV of dividend = 11.10 + 29.50 = $40.6
Current market value =$40.6
In the rational choice decision process model, which of the following immediately follows the step where possible choices have been discovered or developed?
a. Discover possible choices.
b. Select the choice with the highest value.
c. Implement the selected choice
d. Evaluate the selected choice.
Answer:
Correct Answer:
b. Select the choice with the highest value.
Explanation:
In the rational choice decision process model, it is a series of process whereby steps are taking towards making a beneficial decision for a given business setup. In a situation where possible choices has been discovered, the next step would be to select the choice with the highest value which is going to be implemented.
The step that followed where possible choices have been discovered or developed is option b.
The following information should be considered:
In the case of the rational choice decision process, it should be the sequence of the process in which the steps should be taken so that the decision should be carried out i.e. beneficial for the business setup. When the possible choices are discovered so the next step should be that the choice should be selected having the high value.Therefore we can conclude that The step that followed where possible choices have been discovered or developed is option b.
Learn more: brainly.com/question/6201432
