Answer and Explanation:
The journal entry is as follows;
Supplies expense Dr ($2,130 - $1,253) $877
To Supplies $877
(being the supplies expense is recorded)
Here the supplies expense is debited as it increased the expenses while on the other hand the supplies is credited as it decreased the assets. Also both the accounts contains normal debit balance
Based on the following data for the current year, determine the accounts receivable turnover. Net sales on account during the year $550,000 Cost of merchandise sold during the year $350,000 Accounts receivable, beginning of year $35,000 Accounts receivable, end of year $25,000 Inventory, beginning of year $80,000 Inventory, end of year $125,000
Answer:
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Suppose that all social programs simultaneously become more generous. In particular suppose that there is an increase in UI benefits, and also an increase in welfare benefits, which are represented in the DMP model as payments to everyone who is not in the labor force. What will be the effects on the unemployment rate, the vacancy rate, the labor force, the number of firms, the aggregate output, and the labor market tightness? Explain your results.
If a borrower can afford to make monthly principal and interest payments of 1000 and the lender will make a 30 year loan at 5 1/2%, or a 20 year loan at 4 1/2% what is the largest loan this buyer can afford
Answer:
The the largest loan this buyer can afford is 14,533.75.
Explanation:
This can be determined using the formula for calculating the present value of an ordinary annuity as follows:
Step 1: Calculations of the present value or the loan the buyer can afford for a 30 year loan at 5 1/2%
PV30 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV30 = Present value or the loan the buyer can afford for a 30 year loan at 5 1/2% =?
P = monthly payment = 1000
r = interest rate = 5 1/2% = 5.50% = 0.055
n = number of years = 30
Substitute the values into equation (1) to have:
PV30 = 1000 * ((1 - (1 / (1 + 0.055))^30) / 0.055)
PV30 = 1000 * 14.5337451711221
PV30 = 14,533.75
Step 2: Calculation of the present value or the loan the buyer can afford for a 20 year loan at 4 1/2%
PV20 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)
Where;
PV30 = Present value or the loan the buyer can afford for a 20 year loan at 4 1/2% =?
P = monthly payment = 1000
r = interest rate = 4 1/2% = 4.50% = 0.045
n = number of years = 20
Substitute the values into equation (1) to have:
PV20 = 1000 * ((1 - (1 / (1 + 0.045))^20) / 0.045)
PV20 = 1000 * 13.0079364514537
PV20 = 13,007.94
Conclusion
Since 14,533.75 which is the present value or the loan the buyer can afford for a 30 year loan at 5 1/2% is greater than the 13,007.94 which is the present value or the loan the buyer can afford for a 20 year loan at 4 1/2%, it therefore implies that the the largest loan this buyer can afford is 14,533.75.
Concord has the following inventory information. July 1 Beginning Inventory 30 units at $15 $450 7 Purchases 90 units at $23 2070 22 Purchases 10 units at $20 200 $2720 A physical count of merchandise inventory on July 31 reveals that there are 30 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is
Answer:
COGS= $2,060
Explanation:
Giving the following information:
July 1: Beginning Inventory 30 units at $15 $450
July 7: Purchases 90 units at $23 2070
July 22: Purchases 10 units at $20 200
Ending inventory in units0 30 units
First, we need to calculate the number of units sold:
Units sold= total units - ending inventory in units
Units sold= 130 - 30
Units sold= 100
Now, to calculate the cost of goods sold under the FIFO (first-in, first-out), we need to use the cost of the firsts units incorporated into inventory:
COGS= 30*15 + 70*23
COGS= $2,060
Left ventricular mass (LVM), determined from echocardiograms, is an important risk factor for subsequent cardiovascular disease. The researchers are interested in assessing whether LVM changes in children over a 4-year period. To help plan the main study, a pilot study is conducted where echocardiograms are obtained from 10 random children from the Bogalusa Heart Study at baseline and after 4 years of follow-up. The sample mean of LVM change over the 4-year study period is 18.9 g and the sample standard deviation is 26.4 g. For answering the questions (a) and (b) below, assume that the sample variance of LVM change in this pilot study is the true variance of LVM change in the population.(a). If the expected increase in LVM is 10 g, what is the power of such a study if a two-sided test is to be used with α = 0.05? (b). Since this is a pilot study, the main question of interest is how many subjects would be needed to detect an increase of 10 g in mean LVM over 4 years using a two-sided test with α = 0.05 and power = 80%? Suppose the researchers also want to get an idea of the true population variance σ 2 of LVM change in children over a 4-year period based on the pilot data. (c). Perform a hypothesis test to assess whether σ 2 is significantly different from 300. Use both critical-value and p-value methods. (d). Find a 95% confidence interval (CI) of σ 2 . Is the result consistent with that of (c)? Justify your answer.
Answer:
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Multiple Choice Question 38 Vaughn, Inc. has 1000 shares of 5%, $10 par value, cumulative preferred stock and 63000 shares of $1 par value common stock outstanding at December 31, 2020. What is the annual dividend on the preferred stock
Answer:
$0.5 per share
Explanation:
Preference Share Capital = 1000 shares * $10 = 10,000
Annual Dividend in Total = 10000*5% = $500
Annual Dividend Per Share = $500/1000 = $0.5 per share
Kim's Bridal Shoppe has 11,400 shares of common stock outstanding at a price of $48 per share. It also has 275 shares of preferred stock outstanding at a price of $90 per share. There are 300 bonds outstanding that have a coupon rate of 6.7 percent paid semiannually. The bonds mature in 29 years, have a face value of $2,000, and sell at 108 percent of par. What is the capital structure weight of the common stock
Answer:
0.0203
Explanation:
Calculation for the capital structure weight of the common stock
First step is to calculate the Value of Common Stock
Value of Common Stock = 11,400(48)
Value of Common Stock= $547,200
Second step is to calculate the Value of Preferred Stock
Value of Preferred Stock = 275(90)
Value of Preferred Stock = $24,750
Third step is to calculate the Value of Debt
Value of Debt = 1.08(2,000)(300)
Value of Debt= $648,000
Last step is to calculate the Weight of Preferred Stock
Weight of Preferred Stock = 24,750/(547,200 + 24,750 + 648,000)
Weight of Preferred Stock = 0.0203
Therefore the capital structure weight of the common stock will be 0.0203
A company used straight-line depreciation for an item of equipment that cost $16,950, had a salvage value of $4,200, and had a five-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,860 and its total useful life was increased from 5 years to 6 years. Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life:
Answer:
Annual depreciation= $2,480
Explanation:
Giving the following information:
Total Purchase price= $16,950
Useful life= 5 years
Residual value= $4,200
First, we need to calculate the accumulated depreciation at the end of year 3.
Annual depreciation= (Total Purchase price - salvage value)/estimated life (years)
Annual depreciation= (16,950 - 4,200) / 5
Annual depreciation= $2,550
Accumulated depreciation= 2,550*3= $7,650
Now, we can calculate the new depreciation expense:
Depreciable value= 16,950 - 7,650= $9,300
Useful life= 3 years
Salvage value= $1,860
Annual depreciation= (9,300 - 1,860) / 3
Annual depreciation= $2,480
The following amounts were taken from the financial statements of Crane Company: 2017 2016 Total assets $790000 $900000 Net sales 680000 600000 Gross profit 300000 260000 Net income 54400 110000 Weighted average number of common shares outstanding 50000 50000 Market price of common stock $40 $36 The profit margin ratio for 2017 is
Answer: 8%
Explanation:
Profit Margin = Net income / Net sales
2017 Net income ⇒ $54,400
2017 Net Sales ⇒ $680,000
Profit Margin₂₀₁₇ = 54,400/680,000
= 0.08
= 8%
Store A purchases cases of fertilizer for its lawn-care business from a supplier who charges Store A $30 per order and $50 per case. Each case consists of five bags of fertilizer. Store A needs 2000 bags of fertilizer a year. Store A's annual holding costs are 30%. If Store A's order quantity is 40 cases and its lowest inventory level is 0 cases, what is its average inventory level (in cases)
Answer:
20
Explanation:
Calculation for average inventory level
Using this formula
Average inventory level=Store A's order quantity/2
Let plug in the formula
Average inventory level = 40 cases /2.
Average inventory level= 20
Therefore the Average inventory level will be 20
Objectives of AllocationSamantha and Rashida are planning a trip to Padre Island, Texas, during spring break. Members of the varsity volleyball team, they are looking forward to four days of beach volleyball and parasailing. They will drive Samantha's car and estimate that they will pay the following costs during the trip:Motel (4 nights at $145) $ 580Food (each) 150Gas in total 120Parasailing and equipment rental (each) 125They have reservations at the SeaScape Motel, which charges $115 per night for a single, $145 per night for a double, and an additional $10 per night if a rollaway $580 155 132 added to a double room. but thinks that four days of partying and relaxing on the beach would be a great way to unwind from the Samantha's little sister, Kallie, wants to go along. S rigors of school. She figures he isn't into sports that she could ride with Samantha and Rashida and share their room Required: 1. Using incremental costs only, what would it cost Kallie to accompany Samantha and Rashida? 2. Using the benefits-received method, what would it cost Kallie to go on the trip? If required, round your intermediate calculations and final answer to the nearest cent.
Answer:
Increase in Motel cost = $10 per night for additional bed * 4 day = $10 * 4 = $40
Additional food cost = $150
Therefore, total cost of including Kallie for the trip is $40 + $150 = $190
1. Incremental Analysis
Without K With K Incremental cost
Motel cost $580 $620 $40
Food $300 $450 $150
Gas in total $120 $120 -
Total Incremental cost $1,000 $1,190 $190
It would cost $190 for Kallie to accompany along
2. Cost to Kallie using benefits received method
Particulars Amount
Motel ($580 + 40)/3 $206.67
Food $150
Gas ($120/3) $40
Total $396.67
Thus, cost to Kallie using benefits received method would be $396.67.
A company reports annual sales of $5 million, cost of goods sold of $2 million, inventory of $0.5 million, and net income of $0.75 million. What are the company's annual inventory turns?
a. 10
b. 4
c. 0.25
d. 0.1
Answer:
10
Explanation:
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Lakeshore Paints, Inc., operates a plant next to Clear Lake. The goals of the Clean Water Act include Select one: a. protecting fish and wildlife. b. all of the above. c. making water safe for boating. d. eliminating the discharge of anything into any water.
Answer: d. eliminating the discharge of anything into any water.
Explanation:
The Clean Water Act aims to clean up and restore the integrity of water sources in the United States and it hopes to do so by preventing and completely eliminating the discharge of anything into any water that could result in the water being polluted.
It is a Federal statute and is enforceable by the Environmental Protection Agency.
bear a coupon of 6 percent, payable semiannually. The bond matures in 20 years and has a $1,000 face value. Currently, the bond sells at $955. The yield to maturity (YTM) is
Answer:
6.4022%
Explanation:
The computation of the yield to maturity is as follows;
Here we applied the RATE formula
Given that
NPER = 20 × 2 = 40
PMT = $1,000 × 6% ÷ 2 = $30
PV = $955
FV = $1,000
The formula is shown below
= RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
After applying the above formula, the yield to maturity is
= 3.2011% × 2
= 6.4022%
12. Which of the following statements are correct: A. Percentage ownership occurs with new issuance via rights offerings. B. Market value dilution occurs when the net present value of a project is negative. C. Market value dilution increases as the net present value of a project increases. D. Book value dilution has real impact on individual shareholders.
Answer:
B. Market value dilution occurs when the net present value of a project is negative.
Explanation:
In the case when the net present value is negative that represent the firm would lose its investment made that automatically reduce the valuation of the business in near future so the market again determine the current stock price also there would be decrease in the market value of the stock so here the dilution would be taken place
Therefore the option B is correct
You need to turn $13,593 dollars into $18,359 dollars in 8 years. Assuming you make no extra deposits, what interest rate would you need from a bank in order to accomplish this
Answer: 3.83%
Explanation:
$13,593 has to accrue to $18,359.
13,593 * ( 1 + r)⁸ = 18,359
( 1 + r)⁸ = 18,359/ 13,593
(1 + r)⁸ = 1.35062
1 + r = ⁸√1.35062
1 + r = 1.0383
r = 1.0383 - 1
r = 3.83%
94. Averaging the deviations from the mean for a portfolio of securities will: A. compute the standard deviation. B. compute the variance. C. equal zero. D. equal the number of securities in the portfolio.
Answer: C. equal zero
Explanation:
The mean is average of the portfolio which means that some securities will be more than the mean and some will be less.
Some deviations will be positive, others will be negative.
When these deviations are added together, the negative deviations will cancel out the positive deviations which will lead to the average deviations being 0.
Joe is self-employed in a store that has a rental value of $500 a month which he pays, but he can vacate the building without giving notice. His other expenses are $100 a month for maintenance. He makes $25,000 a year on net sales (total revenue minus the wholesale cost of the product). If he quit his job and worked the same number of hours elsewhere at a job he liked equally well, he estimates that he could make $20,000 a year. No one else can be hired to work in the store. Joe should It is impossible to say with the information given in the problem. quit his job. work part-time. keep the job.
Answer:
work part time
Explanation:
According to the Coase theorem, private parties can solve the problem of externalities if a. the number of parties involved is sufficiently large. b. the cost of bargaining is small. c. property rights aren't clearly defined. d. the initial distribution of legal rights favors the person being adversely affected by the externality.
Answer:
b. the cost of bargaining is small.
Explanation:
The basic concepts behind the Coase Theorem is that conflicts can be solved regardless of the original rights and a solution that benefits all parties can be found as long as transaction costs (bargaining costs) are low or nonexistent, and the output of the negotiation process efficiently allocates resources. This theorem is useful when you are trying to find solutions to negative externalities.
Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Consultants.Listed below in random order are line items to be included in the statement of cash flows.Purchase of equipment $ 229,000Increase in inventory 35,000Increase in prepaid rent 7,500Payment of dividends 31,000Depreciation expense 13,000Increase in accounts receivable 47,000Increase in accounts payable 15,000Loss on sale of land 12,000Net income 69,000Repayment of notes payable 49,000Cash received from the sale of land 7,500Issuance of common stock 241,000Prepare the statement of cash flows for CEO Consultants using the indirect method.
Answer:
Ending cash balance is -$41,000.
Explanation:
This can be prepared as follows:
Nathan Herrmann
Cash Flow Statement
for the year ended ...
Details $ $
Net income 69,000
Adjustment to reconcile net income
Depreciation expense 13,000
Loss on sale of land 12,000
(Increase) decrease in current assets
Increase in inventory (35,000)
Increase in prepaid rent (7,500)
Increase in accounts receivable (47,000)
Increase (decrease) in current liabilities:
Increase in accounts payable 15,000
Net cash from operating activities 19,500
Cash flows from investing activities:
Cash received from the sale of land 7,500
Purchase of equipment (229,000)
Net cash flows from Investing activities (221,500)
Cash flows from financing activities:
Payment of dividends (31,000)
Repayment of notes payable (49,000)
Issuance of common stock 241,000
Net cash from financing activities 161,000
Increase / (Decrease) in cash (41,000)
Beginning cash balance -
Ending cash balance (41,000)
Household purchases of durable goods $1,293 Household purchases of nondurable goods $1,717 Household purchases of services $301 Household purchases of new housing $704 Purchases of capital equipment $192 Inventory changes $374 Purchases of new structures $611 Depreciation $117 Salaries of government workers $1,422 Government expenditures on public works $553 Transfer payments $777 Foreign purchases of domestically produced goods $88 Domestic purchases of foreign goods $120 Note that depreciation is the value loss of the durable goods purchased before this year. What was country A's GDP in 2019
Answer:
The correct answer is $7,253
Explanation:
According to the given scenario, the calculation of the country A GDP in the year 2019 is as follows:
The Country's GDP is
= Net Consumption + Net investment + government purchase + net export (export-import)
= ($1,293 + $1,717 + $301) + ($704 + $310 + $374 + $611) + ($1,422 + $553) +($88 - $120)
= $3,311 + $1,999 + $1,975 - 32
= $7,253
Therefore , Country A's GDP is $7,253
Calvin and Carolyn Coleman purchased a home in San Francisco, California, for $375,000 on October 1, 2014. Calvin obtained a job in Portland, Oregon, and on December 1, 2015, the Colemans sold their home in San Francisco for $800,000. How much of the gain must the Colemans recognize?
Answer:
$133,333
Explanation:
General exclusion available = 500,000
Pro-rated exclusion available for 14 months out of 24 months = 500,000 * 14/24 = $291,667
Realized gain = $800,000 - $375,000 = $425,000
Recognized gain = 425,000 - 291,667 = $133,333
Suppose the working-age population of a fictional economy falls into the following categories: 30 are retired; 45 are stay-at-home parents; 120 are employed full time; 40 are employed part time; 25 are unemployed but are actively looking for employment; 15 are unemployed and are not actively looking for employment. The official unemployment rate as calculated by the BLS would be
Answer:
The unemployment rate is 13.51%
Explanation:
The computation of the unemployment rate is as follows;
But before that following calculations need to be done
Labor Force is
= 120 + 40 + 25
= 185
And, the unemployed would be 25
Now the unemployment rate is
= unemployed ÷ Labor Force
= 25 ÷ 185
= 13.51%
hence, the unemployment rate is 13.51%
Assuming a FICA tax rate of 8% on the first $100,000 in wages, and a federal income tax rate of 20% on all wages, what would be an employee's net pay for the year if he earned $120,000 for the year?
Answer:
the answer is c
Explanation:
Jose opened a Premier account at City National Bank of Iowa with a minimum required deposit of
$1000. This bank advertised a rate of 1/2% on their Premier account with interest compounded quarterly.
After 5 years, what is the amount in the account?
Answer:
$1,025.299
Explanation:
The formula for compound interest is
FV = PV × (1+r)^ n
Where Fv is the future value
Pv is the present value = $1000
r is interest rate = 1/2 % or 0.5% per year
n is five years
interest is compounded quarterly,
Interest per quarter = 0.5% /4 = 0.125% which is 0.00125
n will be 5 years x 4 quarters = 20 periods
Fv= $1000 x (1 +0.00125)^20
Fv =$1000 x(1.00125)^20
Fv= $1000 x 1.025299
Fv = $1,025.299
Service firms generally include which of the following as product or job costs: _________
a. Utilities
b. Direct labor wages
c. Supervisor salaries
d. Service firms do not track job costs
Answer: Direct labor wages
Explanation:
Answer:
B.) Direct Labor Wages
Explanation:
The service firms track the costs of that services that they provide. Thats why service firms generally include Direct labor Wages as a product or job costs
Hope this helped a little!
In the United States, bank deposits up to a certain amount are insured by the FDIC.
True or false
Answer:
true :)
Explanation:
A coupon bond paying semiannual interest is reported as having an ask price of 122% of its $1,000 par value. If the last interest payment was made one month ago and the coupon rate is 5%, what is the invoice price of the bond
Answer:
The correct answer is $1,224.12
Explanation:
According to the given scenario, the calculation of the invoice price of the bond is as follows:
Invoice price = Clean price + accrued interest
here
Clean price
= 122% of $1,000
= $1,220
And, the accrued interest is
= ($1,000 × 0.05 ÷ 2) × (30 days ÷ 182 days)
= 4.12088
Now the invoice price is
= $1,220 + $4.12088
= $1,224.12
hence, the invoice price of the bond is $1,224.12
Crane Company incurs the following costs to produce 8500 units of a subcomponent: Direct materials $7140 Direct labor 9605 Variable overhead 10710 Fixed overhead 16200 An outside supplier has offered to sell Crane the subcomponent for $2.85 a unit. If Crane could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by $230. $(740). $(5465). $6230.
Answer: Net income would increase by $6,230
Explanation:
Cost if offer is not accepted and Crane produces inhouse;
= 7,140 + 9,605 + 10,710 + 16,200
= $43,655
Cost if Crane accepts offer;
Crane could avoid $3,000 of fixed overhead = 16,200 - 3,000 = $13,200
Purchase price = 2.85 * 8,500 units = $24,225
Total cost = 24,225 + 13,200
= $37,425
Difference = 43,655 - 37,425
= $6,230
Income would increase by $6,230.
An insurance company is thinking about offering discounts on its life insurance policies to nonsmokers. As part of its analysis, it selects 200 men who are 50 years old and asks them if they smoke at least one pack of cigarettes per day, and if they have ever suffered from heart disease. The results indicate that 20 out of 80 smokers and 15 out of 120 nonsmokers suffer from heart disease. At 5% level of significance the conclusion is:
Answer:
Test statistic
|Z| = 2.996 > 1.96 at 5% level of significance
Null hypothesis is accepted
There is difference between smokers and non-smokers
Explanation:
Step(i):-
Given size of the sample = 200
First Sample proportion
[tex]p^{-} _{1} = \frac{20}{80} = 0.25[/tex]
Second sample proportion
[tex]p^{-} _{2} = \frac{15}{120} = 0.125[/tex]
Null Hypothesis : p₁ = p₂
Alternative Hypothesis : p₁≠p₂
Step(ii):-
Test statistic
[tex]Z = \frac{p^{-} _{1}-p^{-} _{2} }{\sqrt{PQ(\frac{1}{n_{1} } +\frac{1}{n_{2} } )} }[/tex]
Where
[tex]P = \frac{n_{1} p_{1} + n_{2} p_{2} }{n_{1}+n_{2} }[/tex]
[tex]P = \frac{200X 0.25+ 200 X 0.125 }{400 } = 0.185[/tex]
Q = 1-P = 0.8125
[tex]Z = \frac{0.25-0.125 }{\sqrt{0.185X0.8125(\frac{1}{200} +\frac{1}{200 } )} }[/tex]
Z = -2.996
The calculated value |Z| = 2.996 > 1.96 at 5% level of significance
Null hypothesis is accepted
There is difference between smokers and non-smokers