Which of the following industries is most likely to outsource jobs to another country because of slight increases in labor costs?
a. Milk dairy.
b. High-tech research facility.
c. Textile plant.
d. Automobile assembly plant.
Answer: c. Textile plant.
Hope this helps
Village Bank has $310 million worth of assets with a duration of 12 years and liabilities worth $248 million with a duration of five years. In the interest of hedging interest rate risk, Village Bank is contemplating a macrohedge with interest rate T-bond futures contracts now selling for 104-20 (30nds). The T-bond underlying the futures contract has a duration of eight years. If the spot and futures interest rates move together, how many futures contracts must Village Bank sell to fully hedge the balance sheet? (
Answer:
2129 futures contracts to be sold
Explanation:
Asset worth = $310 million
Asset duration = 12 years
liabilities = $248 million
Liabilities duration = 5 years
T-bond futures contracts = 104-20 (30nds)
% of assets = 310 / 248 =
Determine how many futures contracts Village Bank will sell to fully hedge the balance
Number of Contracts = -[Assets * (Asset Duration – (Liabilities Duration * % of Assets) / (Duration * Contract Value)]
= - [ 310 * ( 12 - ( 5 * (310/248)) / ( 8 * ( 104 + ( 20/30)) ]
= - [ 310 * ( 12 - 6.25 ) / ( 8 * 104.6667 ) ]
= - [ 310 * 5.75 / 837.3336 ]
= - 2.12878 * 1000
= 2128.78 ≈ 2129 ( number of futures contracts to be sold )
One reason critics think advertising is wasteful is that: a. advertising is silent about things like product quality. b. businesses use deceptive methods of advertising which is harmful for consumers. c. large sums of money are spent on advertising that produces no consumer benefit. d. most ads are distasteful and send the wrong messages to consumers.
Answer:
c. large sums of money are spent on advertising that produces no consumer benefit
Explanation:
Critics consider advertising to be a waste because they believe that there is a large amount of financial resources being spent on advertising that will not be converted into benefits for the consumer, that is, they believe that it is a lot of money spent on communication marketing that it should be spent on product development, for example, in the form of converting investments into physical benefits that add greater value to the product and greater satisfaction for the consumer.
But a company that wants to become competitive and well positioned in the market, must allocate financial resources so that both things can be carried out, because advertising is extremely necessary to attract and retain potential consumers, since there is currently a great offer of them products available on the market and the company needs to develop a strategy that attracts consumers to its product, which can occur through well-developed advertising that generates consumer engagement and identification with the offered product.
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year.
Cash Receipts Cash payments
January $528,000 $473,700
February 405,000 350,700
March 470,000 536,000
According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $160,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1.
Required:
Prepare monthly cash budgets for January, February, and March.
Answer:
Ending Cash Balance as are follows:
January = $40,000
February = $67,535
March = $40,000
Also, Loan Balance End of Month as follows:
January = $26,500
February = $0
March = $38,465
Explanation:
Note: See the attached excel file for the cash budget.
In the attached excel file, the following calculations are made:
January loan repayment = January Preliminary cash - January Interest expense - Minimum required cash balance = $94,300 - $800 - $40,000 = $53,500
February Loan repayment = January Loan Balance End of the Month = $26,500
March Additional Loan = Minimum required cash balance - March Preliminary cash balance = $40,000 - $1,535 = $38,465
From the attached excel file, we have Ending Cash Balance as follows:
January = $40,000
February = $67,535
March = $40,000
And also, Loan Balance End of Month as follows:
January = $26,500
February = $0
March = $38,465
Glenville Company has the following information for April:
Cost of direct materials used in production $48,000
Direct labor 59,000
Factory overhead 37,000
Work in process inventory, April 1 40,000
Work in process inventory, April 30 40,000
Finished goods inventory, April 1 29,000
Finished goods inventory, April 30 18,000
Required:
For April, determine the cost of goods manufactured.
Answer:
cost of goods manufactured= $144,000
Explanation:
Giving the following information:
Cost of direct materials used in production $48,000
Direct labor 59,000
Factory overhead 37,000
Work in process inventory, April 1 40,000
Work in process inventory, April 30 40,000
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 40,000 + 48,000 + 59,000 + 37,000 - 40,000
cost of goods manufactured= $144,000
Jayhawk Company reports current E&P of $450,000 and accumulated E&P of negative $297,500. Jayhawk distributed $500,000 to its sole shareholder, Christine Rock, on the last day of the year. Christine’s tax basis in her Jayhawk stock is $48,250
1. How much of the $500,000 distribution is treated as a dividend to Christine?
2. What is Christine’s tax basis in her Jayhawk stock after the distribution?
3. What is Jayhawk’s balance in accumulated E&P on the first day of next year?
Answer:
1. The amount of the distribution treated as a dividend to Christine is equal to $450,000.
2. The amount of Christine’s tax basis in her Jayhawk stock after the distribution is equal to $0.
3. Jayhawk's balance in accumulated E&P on the first day of next year is equal to the negative $297,500.
Explanation:
1. How much of the $500,000 distribution is treated as a dividend to Christine?
The amount of the distribution treated as a dividend to Christine is the equal to the current E&P of $450,000 reported by Jayhawk Company.
2. What is Christine’s tax basis in her Jayhawk stock after the distribution?
This can b determined as follows:
Tax basis in Jayhawk stock after distribution = Max of (0, Current E&P + Previous tax basis - Distribution by Jayhawk') = Max of (0, $450,000 + $48,250 - $500,000) = Max of (0, - $1,750) = $0
Therefore, the amount of Christine’s tax basis in her Jayhawk stock after the distribution is equal to $0.
3. What is Jayhawk’s balance in accumulated E&P on the first day of next year?
Jayhawk's balance in accumulated E&P on the first day of next year is equal to the negative $297,500. This is because all the E&P of last year is paid as dividend.
Assume that a $1,000,000 par value, semiannual coupon US Treasury note with three years to maturity has a coupon rate of 3%. The yield to maturity (YTM) of the bond is 11.00%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note:$960,214.55$504,112.64$680,151.97$800,178.79
Answer: $800,178.79
Explanation:
This is a semi-annual coupon bond so convert rate and period to semi annual rates.
Coupon payment = 3% * 1,000,000 * 1/2 years
= $15,000
YTM = 11%/2 = 5.5%
Number of periods = 3 years * 2 = 6 semi annual periods
Value of Bond = Present value of coupon payments + Present value of par
= 15,000 * ( 1 - ( 1 + 5.5%)⁻⁶) / 5.5%) + 1,000,000 / (1 + 5.5%)⁶
= 74,932.9546296555 + 725,245.8330245964
= $800,178.79
Bob Lee, a division manager for JTCL Ltd has been given a mandate to control costs. Bob’s division is called the Murray Division. After taking an Operations Management class he remembered that a good place to start would be to get a current measure of his division's productivity. The Murray Division is comprised of 5 employees who are paid $10 hourly and work 40 hours per week. The division used 75 pounds of material during the week he is studying. Each week JTCL Ltd assigns an overhead charge of $1,000 to the Murray Division. Material costs $10 per pound. The division completed 9000 units of product last week. Which of the following best describes last week’s labor productivity at the Murray Division?
a. 45 units per labor hour
b. 4.5 units per labor hour
c. 3.75 units per labor hour
d. 45 units per labor hour
e. 37.5 units per labor hour
Answer:
a. 45 units per labor hour.
Explanation:
No. of units produced is 9000 units
No. of labor hours per week is 40 hours
There are total 5 labors so the hours per labor is 40/ 5 = 8 hours per labor.
No. of units produced by each labor is 9000 / 5 = 1800 units per labor
The unit per labor hour is 1800 / 8 hours = 225 units
These units are further distributed among 5 workers so each labor has produced 225 / 5 = 45 units per week.
The last week’s labor productivity at the Murray Division is option a. 45 units per labor hour.
Calculation of last week’s labor productivity:Since the No. of units produced is 9000 units and the No. of labor hours per week is 40 hours and there are total 5 laborers
so the hours per labor should be = 40/ 5 = 8 hours per labor.
Now
No. of units produced by each labor should be
= 9000 / 5
= 1800 units per labor
Now
The unit per labor hour is
= 1800 / 8 hours
= 225 units
Since there are 5 workers so per worker it should be
= 225 / 5
= 45 units per week.
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A US company makes furniture and uses large amounts of exotic woods. How will quotas on imported wood affect he price of the product and the
marketing plans?
Answer: See explanation
Explanation:
A quota is simply referred to as a limited quantity of a product that can either be produced in a country or imported or exported under official controls. A quota is usually done to limit importation of goods and encourage local production.
Since the US company makes use of large amount of exotic goods which are usually imported, this will bring about a reduction in the supply of furniture as there'll be decrease in wood.
This will hence lead to an increase in price of the available furniture. This will certainly have a negative effect on the marketing plan of the company.
Adjustment for Accrued Expense
Joos Realty Co. pays weekly salaries of $17,250 on Friday for a five-day workweek ending on that day. Journalize the necessary adjusting entry assuming that the accounting period ends on Tuesday.
If an amount box does not require an entry, leave it blank. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6
Answer and Explanation:
The adjusting entry is shown below:
Salary expense Dr ($17,250 ÷ 5 days × 2 days) $6,900
To Salary payable $6,900
(Being salary expense is recorded)
here salary expense is debited as it increased the expense and credited the salary payable as it also increased the liabilities
What is a product that is not an object or something that is owned called?
Answer:A product that is not an object or something that is owned is called a non-economic good.
Explanation:
A product that is not an object or something that is owned is called a non-economic good.
Chino Company reported net income of $23,000 for the current year. During the year, Inventory decreased by $7,500, Accounts Payable decreased by $8,250, Depreciation Expense was $10,500, and Accounts Receivable increased by $7,000. If the indirect method is used, what is the net cash provided by operating activities?
A). $25,750.
B). $56,250.
C). $42,250.
D). $11,000.
Answer: A). $25,750.
Explanation:
Cash from operating activities refers to cash from the business operations of the company.
Formula is:
= Net Income + Depreciation + Decrease in inventory - Accounts payable decrease - Accounts receivable increase
= 23,000 + 10,500 + 7,500 - 8,250 - 7,000
= $25,750
Explanation:
A). $25,750.
⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
Explain why effective critical thinking is important for high self-esteem?
Answer:
Critical thinking help you to be active and love what you do. Therefore it call critical thinking
Seo Yeon is a paid intern working for a small team of four software developers. Each member of the team is facing different deadlines and requires her support at different times—and all of them want to pawn their least enjoyable tasks off on her. Seo Yeon is there to learn and is happy to help out on any tasks they can give her, but she only has 40 hours per work week to offer.
Identify the solution that is likely to best allocate her time between the four team members.
A. Seo Yeon should only work on tasks that provide her with the opportunity to further her personal knowledge.
B. Seo Yeon should set up an internal market, allocating 10 hours per week to each team member and allowing them to trade hours among themselves over the course of a month.
C. Seo Yeon should determine which team member is most valuable to the company and allocate all 40 hours to that team member.
D. Seo Yeon should allocate 10 hours per week to each team member and ensure that her time is distributed fairly between the team members each week.
Answer: B. Seo Yeon should set up an internal market, allocating 10 hours per week to each team member and allowing them to trade hours among themselves over the course of a month.
Explanation:
From the options given in the question, the solution that is likely to best allocate her time between the four team members will be option B "Seo Yeon should set up an internal market, allocating 10 hours per week to each team member and allowing them to trade hours among themselves over the course of a month".
Since the teams have different deadlines, she should allocate her time equally to the four teams and help them out based on their deadlines as those with nearer deadlines should be helped first. We should also note that she shouldn't allocate the whole 40 hours to a particular team as that's not fair and can bring about disunity.
Seo Yeon should set up an internal market, allocating 10 hours per week to each team member and allowing them to trade hours among themselves over the course of a month.
Explanation:
From the options given in the question, the solution that is likely to best allocate her time between the four team members will be option B "Seo Yeon should set up an internal market, allocating 10 hours per week to each team member and allowing them to trade hours among themselves over the course of a month".Since the teams have different deadlines, she should allocate her time equally to the four teams and help them out based on their deadlines as those with nearer deadlines should be helped first. We should also note that she shouldn't allocate the whole 40 hours to a particular team as that's not fair and can bring about disunity.To learn more,
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The Jamison Company's inventory was destroyed on July 4, 2016, when its warehouse caught on fire early in the morning. Inventory was totally destroyed. The accounting records, which were located in a fireproof vault, contained the following information: Sales (1/1/16 through 7/3/16)$240,000 Purchases (1/1/16 through 7/3/16)180,000 Inventory (1/1/16)45,000 Gross profit ratio25% of cost Using the gross profit method, what is the estimated cost of the inventory that was destroyed by the fire
Answer:
$15,000
Explanation:
With regards to the above information, the estimated cost of inventory that was destroyed by fire is computed as
= [Sales - (Purchases + Inventory)]
Given that;
Sales 1/1/16 through 7/3/16 = $240,000
Purchases 1/1/16 through 7/3/16 = $180,000
Inventory 1/1/16 = $45,000
= [$240,000 - ($180,000 + $45,000)]
= $240,000 - $225,000
= $15,000
Scenario: You are in the market for a new car. You do not have a trade-in, but you have saved $3,000 toward a down payment. You currently earn $3,750.00 gross monthly income, of which 28% is withheld for various deductions. You have heard of the 20% rule of thumb, but want to limit your payments to no more than 18% of your net monthly income because of other debt commitments. You currently have a credit score of 685. You expect to drive the car an average 15,000 miles per year. You're considering purchasing a used-rather than new car. This strategy offers several advantages.
1. Which of the following is not an advantage of purchasing a used car?
A. The reduced down payment required for the purchase.
B. A lack of knowledge and confidence in the mechanical condition of the car.
C. The price of the automobile.
D. Avoidance of the vehicle's significant decrease in value due to depreciation.
2. Which of the following will directly affect the final cost of a new car if you elect to purchase the vehicle?
A. The amount of the trade-in on an existing vehicle (if applicable).
B. The color of the vehicle.
C. The extent to which you dress up when you negotiate the purchase.
D. The amount of any rebate or incentives associated with the purchase of the new vehicle.
E. The period or term of any loan used to finance the purchase.
3. Alternatively, after seeing several television commercials suggesting the benefits of leasing a new automobile, you’ve started thinking about the phenomenon of leasing. Which of the following statements regarding leasing is true?
A. If you select to use a closed-end lease, then you’ll be free from any final payment. That’s why they call it a walkaway lease.
B. Leasing can result in lower monthly payments than would be incurred if you purchased the vehicle.
C. Customary end-of-term charges on a lease can include a disposition fee, an early termination charge, and an excess mileage charge.
D. If you use an open-end lease, you’ll be required to pay the difference between the vehicle’s projected residual value and its actual market value.
E. Leases work best for people who want to drive a vehicle for years and years, and drive at least 30,000 miles every year.
4. A lease payment is based on four variables. Which of the following is not one of these variables?
A. The money, or lease, factor.
B. The vehicle’s residual value.
C. The closed-end premium.
5. Being upside down in a loan is the same as having:____.
A. Negative equity.
B. A negative interest rate.
6. Complete the following table to determine your desired maximum monthly payment.
Gross income (monthly) $
Deductions (dollar amount) $
Take-home pay $
Percentage allotted for car payment %
Maximum monthly payment $
7. You have decided to purchase a new car and have negotiated the price. A four-year loan is resulting in payments of $586.00 per month. How might you get your monthly payment down to your desired monthly goal?
A. Shop for a loan with a higher interest rate.
B. Extend the term of the loan from four to five years.
C. Shorten the term of the loan from four to three years.
D. Shop for a loan with a lower interest rate.
8. A good credit score is an important factor when buying a car because it allows you to (1)____obtain financing terms, and (2)_____afford a expensive or better vehicle for the same loan amount.
Answer:
Market for a New Car
1. A disadvantage of purchasing a used car:
B. A lack of knowledge and confidence in the mechanical condition of the car.
2. D. The amount of any rebate or incentives associated with the purchase of the new vehicle.
3. B. Leasing can result in lower monthly payments than would be incurred if you purchased the vehicle.
4. C. The closed-end premium.
5. Being upside down in a loan is the same as having:____.
A. Negative equity.
6. Gross income (monthly) $3,750
Deductions (dollar amount) $1,050
Take-home pay $2,700
Percentage allotted for car payment 18%
Maximum monthly payment $486
7. Using the savings towards a down payment can help reduce the monthly payment to $486 from $586.
Explanation:
a) Data and Calculations:
Savings towards down payment = $3,000
Gross monthly income = $3,750
Withholdings = 28% 1,050 ($3,750 * 28%)
Net after withholdings $2,700
Payment for car
limited to 18% $486
Net after car payment $2,214
Liberty Corporation was authorized to issue 300,000 shares of $5 par value common stock. Liberty issued 60,000 shares of common stock on January 15, 2020, at $15 per share. Required a. Record the entry on June 30, 2020, for purchase of 6,600 common shares for the treasury at $18 per share. b. Record the entry on September 20, 2020, for sale of 2,400 treasury shares at $21 per share. c. Record the entry on November 3, 2020, for sale of 1,500 treasury shares at $17 per share.
Answer:
Liberty Corporation
Journal Entries:
January 15, 2020:
Debit Cash $900,000
Credit Common stock $300,000
Credit Additional Paid-in Capital $600,000
To record the issue of 60,000 shares of common stock at $15 per share.
a) June 30, 2020:
Debit Treasury Stock $33,000
Debit Additional Paid-in Capital $85,800
Credit Cash $118,800
To record the purchase of 6,600 treasury shares at $18 per share.
b) September 20, 2020:
Debit Cash $50,400
Credit Treasury Stock $12,000
Credit Additional Paid-in Capital $38,400
To record the sale of 2,400 treasury shares at $21 per share.
c) November 3, 2020:
Debit Cash $25,500
Credit Treasury Stock $7,500
Credit Additional Paid-in Capital $18,000
To record the sale of 1,500 treasury shares at $17 per share.
Explanation:
a) Data and Analysis:
Authorized common stock share capital of 300,000 at $5 = $1,500,000
January 15, 2020: Issued 60,000 shares at $15 per share:
Cash $900,000 Common stock $300,000 Additional Paid-in Capital $600,000
June 30, 2020: Purchased 6,600 for the treasury shares at $18 per share:
Treasury Stock $33,000 Additional Paid-in Capital $85,800 Cash $118,800
September 20, 2020: Sale of 2,400 treasury shares at $21 per share:
Cash $50,400 Treasury Stock $12,000 Additional Paid-in Capital $38,400
November 3, 2020: Sale of 1,500 treasury shares at $17 per share:
Cash $25,500 Treasury Stock $7,500 Additional Paid-in Capital $18,000
1A.) Assume a simple economy where only burgers are traded. In a year, 100 burgers are traded at the rate of $5 per burger. Assume two scenarios:
a. The economy has $100 in the form of 20 pieces of $5 bills.
b. The economy has $100 in the form of 100 pieces of $1 bills.
Calculate the velocity of money for both situations.
1B.) For a country A, the GDP growth rate is 8 percent and inflation is 4 percent. If the velocity of money remains constant, what is the change in real money balances?
Answer:
a. 5
b. 5
1B. 8%
Explanation:
a. MV = PY
Money Supply * Velocity of money = Price level * Real GDP
100 * V = 5 * 100
100V = 500
V = 5
b. Velocity = 5
It will not change because the money supply for both questions is the same = $100.
1.B. Change in real money balances = 8%
The change in real money balances will be the same as the GDP growth rate if velocity is constant.
Dream, Inc., has debt outstanding with a face value of $6 million. The value of the firm if it were entirely financed by equity would be $18.25 million. The company also has 440,000 shares of stock outstanding that sell at a price of $32 per share. The corporate tax rate is 35 percent. What is the decrease in the value of the company due to expected bankruptcy costs? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Answer:
$955,000
Explanation:
According to the Modigliani and Miller theory, we can calculate the value of the levered firm which is denoted by;
VI = Vu + tB
VI = 18.25million + 0.35(6million)
VI = 20.35 million
We can also calculate the total market value of the firm Vt by adding the debt (B) with the total equity (SV)
Vt = B + SV
Vt = 5 million + 440,000(32)
Vt = 5 million + 14.80 million
Vt = 19.80 million
Then the decrease in the value of the company due to bankruptcy is
Vb = VI - Vt
Vb = 20.35 million - 19.80 million
VB = $955,000
What is the solution to this problem?
Flintstone Company is owned equally by Fred Stone and his sister Wilma, each of whom hold 2,400 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 480 of her shares for $30,700 per share on December 31 of this year. Wilmaâs income tax basis in each share is $7,900. Flintstone has current E&P of $10,930,000 and accumulated E&P of $50,210,000.
a. What is the amount and character (capital gain or dividend) recognized by Wilma as a result of the stock redemption, assuming only the "substantially disproportionate with respect to the shareholder" test is applied?
b. What is Wilmaâs income tax basis in the remaining 1,920 shares she owns in the company?
c. Assuming the company did not make any dividend distributions this year, by what amount does Flintstone reduce its E&P as a result of the redemption?
Answer:
Explanation:
From the given information:
In Flinstone company;
The old ownership = 2400/(2400+200) = 50%
New onwership = 1920/(1920 + 2400) = 44.4%
The reduction in Wilma ownership in Flinstone company is from 50% to 44.4%
Dividend amount perceived by WIlma is:
$30700 × 480 shares = $14,736,000
The responsibility of Wilma in the wake of taking the redemption is in reality more than the 40% (80% x 50%), so she fails the considerably disproportionate test.
Hence, dividend recognition = $1,47,36,000
b)
Wilma's personal income tax expense premise in excess shares can be determined by summing back the unused tax premise of 480 offers reclaimed to the premise of her leftover offers 1920.
unused tax premise of 480 shares = 480 × $7900 = $37,92,000
premises of the remaining shares = 1920 × $7900 = $1,51,68,000
In the remaining shares, WIlma income tax = $37,92,000 + $1,51,68,000
= $1,89,60,000
c)
Flintstone will make the decrease in its E&P by a measure of profit perceived by Wilma =$1,47,36,000
What method can help to avoid typos when writing a function that includes a range?
Answer:
clicking and dragging to select the range
The country of Lessidinia has a tax system identical to that of the United States. Suppose someone in Lessidinia bought a parcel of land for 20,000 foci (the local currency) in 1960 when the price index equaled 100. In 2002, the person sold the land for 100,000 foci, and the price index equaled 600. The tax rate on nominal gains was 20 percent. Compute the taxes on the nominal gain and the change in the real value of the land in terms of 2002 prices to find the after-tax real rate of capital gain.
Answer: -30%
Explanation:
The Nominal gain is:
= 100,000 - 20,000
= 80,000 foci
Tax on nominal gain:
= 20% * 80,000
= 16,000 foci
After tax nominal value of land:
= 100,000 - 16,000
= 84,000 foci
The real value given the price index is:
= 84,000 / 600 * 100
= 14,000 foci
After tax real rate of cap. gain:
= (14,000 - 20,000) / 20,000
= -30%
Blair Madison Co. issues $2.4 million of new stock and pays $331,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.64 million in a new bond issue and paid off existing bonds with a face value of $2.70 million. The company bought 514 of another company's $1,140 bonds at a $114,000 premium. The net cash flow provided by financing activities is:
Answer: $1,009,000
Explanation:
Based on the information given, the net cash flow provided by financing activities will be:
New stock issued = $2,400,000
Add: New bond issued = $1,640,000
Less: Cash dividend = $331,000
Less: Existing bonds paid = $2,700,000
Net cash flow = $1,009,000
Assume that a business has $50000 of current assets and $40000 of current liabilities. What is the company’s current ratio?
Answer:
The company's current ratio is 1.25.
Explanation:
The current ratio is calculated by dividing the current assets by the current liabilities:
current assets=$50000
current liabilities=$40000
current ratio=$50000/$40000
current ratio=1.25
According to this, the answer is that the company's current ratio is 1.25.
from the video "the best stats you've ever seen "
what are some of the variables that rosling's graphs analyze? why are these factors important?
Answer:
michael jackson it about life
Explanation:
PLEASE , chart this out !
Answer:
Purchases
Date Qty Unit Cost Total Cost
11 12 $18 $216
21 9 $15 $135
Cost of Sales
Date Qty Unit Cost Total Cost
14
21 $16 $336
5 $18 $90
25
7 $18 $126
4 $15 $60
Total $612
Inventory
Qty Unit Cost Total Cost
5 $15 $75
Total $75
Explanation:
FIFO method assumes that the units to arrive first, will be sold first. Also note that the perpetual Inventory method is used. This means the cost of sales and inventory value is calculated after every transaction.
So with FIFO , Cost of Sales will be calculated on earlier prices (old prices) whilst Inventory will be valued at recent (later prices) prices.
On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $3,500, terms 2/10, n/30. On June 20, SH returns to Oakley inventory that SH had purchased for $800. On June 24, SH completely fulfills its obligation to Oakley by making a cash payment. What is the amount of cash paid by SH to Oakley
Answer:
$2,646
Explanation:
Calculation to determine the amount of cash paid by SH to Oakley
Cash paid=($3,500-$800)-[($3,500-$800)*2%]
Cash paid =$2,700-$54
Cash =$2,646
Therefore The the amount of cash paid by SH to Oakley is $2,646
Beck Manufacturing reports the following information in T-account form for 2019. Raw Materials Inventory Begin. Inv. 11,600 Purchases 57,000 Avail. for use 68,600 DM used 48,000 End. Inv. 20,600 Work in Process Inventory Begin. Inv. 16,000 DM used 48,000 Direct labor 31,100 Overhead 57,000 Manuf. costs 152,100 Cost of goods manuf. 138,200 End. Inv. 13,900 Finished Goods Inventory Begin. Inv. 17,200 Cost of goods manuf. 138,200 Avail. for sale 155,400 Cost of Goods Sold 136,500 End. Inv. 18,900 Required: 1. Prepare the schedule of cost of goods manufactured for the year. 2. Compute cost of goods sold for the year.
Answer:
Beck Manufacturing
1. Schedule of the Cost of Goods Manufactured for the year:
Beginning WIP Inventory 16,000
Direct Materials used 48,000
Direct labor 31,100
Overhead applied 57,000
Total manufacturing costs 152,100
Less Ending WIP Inventory 13,900
Cost of goods manufactured 138,200
2. Cost of goods sold for the year:
Beginning Finished Goods 17,200
Cost of goods manufactured 138,200
Goods available for sale 155,400
Less Ending Finished Goods 18,900
Cost of Goods Sold 136,500
Explanation:
a) Data and Calculations:
T-account form for 2019.
Raw Materials Inventory
Account Title Debit Credit
Begin. Inv. 11,600
Purchases 57,000
DM used 48,000
End. Inv. 20,600
Avail. for use 68,600 68,600
Work in Process Inventory
Account Title Debit Credit
Begin. Inv. 16,000
DM used 48,000
Direct labor 31,100
Overhead 57,000
Cost of goods manuf. 138,200
End. Inv. 13,900
Manuf. costs 152,100 152,100
Finished Goods Inventory
Account Title Debit Credit
Begin. Inv. 17,200
Cost of goods
manufacture 138,200
Cost of Goods Sold 136,500
End. Inv. 18,900
Avail. for sale 155,400 155,400
A local Chevrolet dealership carries the following types of vehicles:
Inventory Items Quantity Cost per Unit Market (replacement cost) per Unit
Vans 3 $22,000 $20,000
Trucks 6 17,000 16,000
2-door sedans 2 12,000 14,000
4-door sedans 7 16,000 19,000
Sports cars 3 32,000 35,000
SUVs 5 28,000 23,000
Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks.
Required:
a. Compute the total cost of the entire inventory.
b. Determine whether each inventory item would be reported at cost or market. Multiply the quantity of each inventory item by the appropriate cost or market amount and place the total in the "Lower-of-Cost-or-Market" column. Then determine the total for that column.
c. Compare your answers in Requirement 1 and Requirement 2 and then record any necessary adjustment to write down inventory from cost to market value.
d. Discuss the financial statement effects of using lower-of-cost-or-market to report inventory.
Answer:
Explanation:
Since the table doesn't show up correctly, the first dollar value is the Cost per Unit of the vehicle, while the second dollar value is the Market Cost per Vehicle.
a. If we compute the cost using the Cost per Unit then they would be the following.
Vans: 3 * $22,000 = $66,000Trucks: 6 * $17,000 = $102,0002-Door Sedans: 2 * $12,000 = $24,0004-Door Sedans: 7 * $16,000 = $112,000Sports Cars: 3 * $32,000 = $96,000SUV's: 5 * $28,000 = $140,000Total Inventory: $504,000b. The "Lower-of-Cost-or-Market" basically states that whatever of the two prices is lower is ultimately the one that is recorded as the cost. Therefore, under this method the costs would be the following...(Purchase Cost or Market Cost)
Vans: 3 * $20,000 = $60,000 MarketTrucks: 6 * $16,000 = $96,000 Market2-Door Sedans: 2 * $12,000 = $24,000 Purchase Cost4-Door Sedans: 7 * $16,000 = $112,000 Purchase CostSports Cars: 3 * $32,000 = $96,000 Purchase CostSUV's: 5 * $23,000 = $115,000 MarketTotal Inventory: $504,000 Purchase Costc. There were only 3 changes made from from requirement 1 and 2 these were the changes in total cost...
Vans: $60,000 - $66,000 = - $6000Trucks: $96,000 - $102,000 = - $6000SUV's: $115,000 - $140,000 = - $25,000d. This allows companies to report losses at a much more reasonable and consistent way. Thus allowing profits to be more predictable.
a. Total inventory cost: $504,000
b. Total inventory at lower-of-cost-or-market: $503,000
c. Adjustment to write down inventory: -$37,000
d. Using lower-of-cost-or-market to report inventory allows for more realistic and conservative reporting, reflecting the decrease in market value.
a. If we compute the cost using the Cost per Unit then they would be the following.
Vans: 3 * $22,000 = $66,000
Trucks: 6 * $17,000 = $102,000
2-Door Sedans: 2 * $12,000 = $24,000
4-Door Sedans: 7 * $16,000 = $112,000
Sports Cars: 3 * $32,000 = $96,000
SUV's: 5 * $28,000 = $140,000
Total Inventory: $504,000
b. The "Lower-of-Cost-or-Market" basically states that whatever of the two prices is lower is ultimately the one that is recorded as the cost. Therefore, under this method the costs would be the following...(Purchase Cost or Market Cost)
Vans: 3 * $20,000 = $60,000 (reported at market)
Trucks: 6 * $16,000 = $96,000 (reported at market)
2-Door Sedans: 2 * $12,000 = $24,000 (reported at cost)
4-Door Sedans: 7 * $16,000 = $112,000 (reported at cost)
Sports Cars: 3 * $32,000 = $96,000 (reported at cost)
SUVs: 5 * $23,000 = $115,000 (reported at market)
Total for "Lower-of-Cost-or-Market" column: $60,000 + $96,000 + $24,000 + $112,000 + $96,000 + $115,000 = $503,000
c. The necessary adjustment to write down inventory from cost to market value is as follows:
Vans: -$6,000
Trucks: -$6,000
SUVs: -$25,000
d. Using the lower-of-cost-or-market method to report inventory allows companies to recognize and account for potential declines in the market value of their inventory.
By valuing inventory at the lower cost or market value, it ensures a conservative approach and provides a more accurate representation of the company's financial position.
This approach helps in reflecting the true economic value of inventory and potential losses associated with declines in market value.
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The Mighty Music Company produces and sells a desktop speaker for $100. The company has the capacity to produce 50,000 speakers each period. At capacity, the costs assigned to each unit are as follows: Unit level costs $ 45 Product level costs $ 15 Facility level costs $ 5 The company has received a special order for 500 speakers. If this order is accepted, the company will have to spend $15,000 on additional costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order
Answer:
$75
Explanation:
Calculation to determine what selling price will the company be indifferent between accepting and rejecting the special order
Using this formula
Selling price between accepting and rejecting the special order= ( Additional cost ÷ Units sold number) + Unit level Cost
Let plug in the formula
Selling price between accepting and rejecting the special order= ( $15,000 ÷ 500 ) + $45
Selling price between accepting and rejecting the special order= $30 + $45
Selling price between accepting and rejecting the special order= $75
Therefore The selling price that the company will be indifferent between accepting and rejecting the special order is $75
Imagine that the economy is in long-run equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time.
1. Refer to Optimism. Which curve shifts and in which direction?
a. aggregate demand shifts right.
b. aggregate demand shifts left.
c. aggregate supply shifts right.
d. aggregate supply shifts left.
2. Refer to Optimism. In the short run what happens to the price level and real GDP?
a. both the price level and real GDP rise.
b. both the price level and real GDP fall.
c. the price level rises and real GDP falls.
c. the price level falls and real GDP rises.
3. Refer to Optimism. What happens to the expected price level and what's the result for wage bargaining?
A. The expected price level falls. Bargains are struck for higher wages.
B. The expected price level rises. Bargains are struck for higher wages.
C. The expected price level rises. Bargains are struck for lower wages.
D. The expected price level falls. Bargains are struck for lower wages.
4. Refer to Optimism. In the long run, the change in price expectations created by optimism shifts:_____.
a. long-run aggregate supply right.
b. long-run aggregate supply left.
c. short-run aggregate supply right.
d. short-run aggregate supply left.
5. Refer to Optimism. How is the new long-run equilibrium different from the original one?
a. both price and real GDP are higher.
b. both price and real GDP are lower.
c. the price level is the same and GDP is higher.
d. the price level is higher and real GDP is the same.
6. People choose to hold a smaller quantity of money if:_____.
a. the interest rate rises, which causes the opportunity cost of holding money to rise.
b. the interest rate falls, which causes the opportunity cost of holding money to rise.
c. the interest rate rises, which causes the opportunity cost of holding money to fall.
d. the interest rate falls, which causes the opportunity cost of holding money to fall.
7. When the Fed sells government bonds, the reserves of the banking system:___.
a. increase, so the money supply increases.
b. increase, so the money supply decreases.
c. decrease, so the money supply increases.
d. decrease, so the money supply decreases.
Answer:
1. a. aggregate demand shifts right.
As people are more optimistic, they will consume more in the short term because they feel as though prosperity is coming in the long term.
2. a. both the price level and real GDP rise.
Both of these would rise as Aggregate demand refers to GDP and price level would rise due to the new intersection with the Aggregate supply curve when the AD shifted right.
3. B. The expected price level rises. Bargains are struck for higher wages.
Expected price level will rise because demand is still increasing. Workers will want to benefit from this as well and so will negotiate higher wages.
4. d. short-run aggregate supply left.
As a result of the rise in expected price level and the subsequent negotiation for higher salaries, producers will find the cost of labor to be hire and so will limit production so that they do not spend as much. This will reduce supply thereby shifting the supply curve left.
5. d. the price level is higher and real GDP is the same.
The shift to the left in supply will lead to a higher price but the Real GDP will remain the same because there will be less goods produced so once prices are inflation adjusted, real GDP will be the same.
6. a. the interest rate rises, which causes the opportunity cost of holding money to rise.
If interest rates rise, people will hold less money because they could make a higher return by investing that money.
7. d. decrease, so the money supply decreases.
The money supply decreases because the Fed is taking money out of the banking system by selling bonds as people will pay the Fed for the bonds and the Fed will keep the money.
