Answer:
courtesy
Explanation:
It basically is having manners and being respectful of the customer. When a taxi driver opens the door for someone, he or she is being respectful
Vacation Destinations offers its employees the option of contributing up to 7% of their salaries to a voluntary retirement plan, with the employer matching their contribution. The company also pays 100% of medical and life insurance premiums. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the first biweekly payroll period ending February 14 is listed below.
Wages and salaries $1,500,000
Employee contribution to voluntary retirement plan 63,000
Medical insurance premiums paid by employer 31,500
Life insurance premiums paid by employer 6,000
Federal and state income tax withheld 375,000
Social Security tax rate 6.20%
Medicare tax rate 1.45%
Federal and state unemployment tax rate 6.20%
1) Record the employee salary expense, withholdings, and salaries payable.
2) Record the employer-provided fringe benefits.
3) Record the employer payroll taxes.
Answer:
Follows are the solution to the given points:
Explanation:
For question 1:
Exp on the Debit Salary = $ 1,500,000
Credit payable Income tax = $375,000
Credit accounts payable (pension plan)= $63,000
Credit payable tax on FICA= $114,750
Credit payable salary (Balance) $947,250
For question 2:
Exp = $100,500 for Debit Wages
Cr.= $31,500 (Surgical Insurance) Payable accounts
Cr. = $6,000 in insurance accounts payable
Cr. = $63,000 Payable Accounts (Pension plan)
For question 3:
EXP= $207,750 for Debit Payroll Tax
Cr. = $114,750 for FICA payable tax
Cr. =$93000 for Federal and State (Unemployment tax)
[tex]FICA TAX = \$1500,000 \times \frac{(6.2+1.45)}{100} = \$ 114,750\\[/tex]
Tax on state or federal unemployment [tex]=\$ 1500,000 \times 6.2 \% = \$ 93,000\\[/tex]
Suppose that Colombia imports cars from Australia. The free market price is $9,200.00 per car. If the tariff on imports in Colombia is initially 38%, Colombians pay ________ per car.
One of the accomplishments of the Uruguay Round that took place between 1986 and 1993 was significant across-the-board tariff cuts for industrial countries, as well as many developing countries. Suppose that as a result of the Uruguay Round, Colombia reduces its import tariffs to 19%. Assuming the price of cars is still $9,200.00 per car, consumers now pay the price of ________ per car.
Based on the calculations and the scenarios presented, the Uruguay Round most likely _________ in Colombia and ________ in Australia.
Answer:
1) Colombians pay $ 12,696,000 per car.
2) Consumers now pay the price of $10,948,000 per car.
Explanation:
1) Given that Colombia imports cars from Australia, and the free market price is $ 9,200.00 per car, if the tariff on imports in Colombia is initially 38%, Colombians pay $ 12,696,000 per car.
This arises from the following calculation:
9,200.00 x 1.38 = X
12.696.00 = X
2) Since that as a result of the Uruguay Round, Colombia reduces its import tariffs to 19%. Assuming the price of cars is still $ 9,200.00 per car, consumers now pay the price of $10,948,000 per car.
This arises from the following calculation:
9,200,000 x 1.19 = X
10,948,000 = X
Financial instruments Financial instruments are assets that have a monetary value or record a monetary transaction. To coordinate the exchange of capital between borrowers and lenders, financial instruments trade in the financial markets. These financial instruments can be categorized on the basis of their issuers, maturity, risk, and other factors.
Identify the financial instruments based on the following descriptions.
a. Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk-free investments.
b. Issued by money-centered financial firms, these short- or medium-term insured debt instruments pay higher interest than a regular savings account. They are low-risk instruments and have low returns.
c. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated.
d. These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.
Which of the following instruments are traded in the capital markets? Check all that apply.
a. Common stocks
b. Corporate bonds
c. Preferred stocks
d. Certificates of deposit
e. Long-term bank loans
The process in which derivatives are used to reduce risk exposure is called :________
Answer:
1a. Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk-free investments.
Identification: U.S. Treasury Bills (T-bills)
b. Issued by money-centered financial firms, these short- or medium-term insured debt instruments pay higher interest than a regular savings account. They are low-risk instruments and have low returns.
Identification: Certificate of deposit
c. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated.
Identification: Money Market Mutual Fund
d. These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.
Identification: Lease Agreement
2. The instruments which are traded in capital markets are Common Stock, Preferred Stock, Corporate Bonds and Certificates of deposits excluding Long-term bank loans.
3. The process in which derivatives are used to reduce risk exposure is called hedging.
Scott, the COO for Barcelona Restaurant states: "You can’t train people to be enthusiastic, nice, fun, great people. You have to hire that." This description is best aligned with what personality trait concept?
Conscientiousness
Sensing
Agreeableness
Openness
Answer: Agreeableness
Explanation:
The description is best aligned with the personality trait concept of agreeableness.
Agreeableness as a personality trait is simply used to refer to the level of cooperativeness, enthusiasm, kindness, friendliness, etc that is shown by a person.
Someone who possess a high level of agreeableness is said to show all the characters explained above.
Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and its production support activities follow.
Process Activity Overhead cost Driver Quantity
Department 1 Mixing $6,000 Machine hours 2,400
Cooking 10,800 Machine hours 2,400
Product testing 114,000 Batches 750
$130,800
Department 2 Machine calibration $325,000 Production runs 650
Labeling 18,000 Cases of output 160,000
Defects 6,000 Cases of output 160,000
$349,000
Support Recipe formulation $84,000 Focus groups 50
Heat, lights, and water 42,000 Machine hours 2,400
Materials handling 80,000 Container types 10
$206,000
Additional production information about its two product lines follows.
Extra Fine Family Style
Units produced 35,000 cases 125,000 cases
Batches 350 batches 400 batches
Machine hours 1,000 MH 1,400 MH
Focus groups 34 groups 16 groups
Container types 4 containers 6 containers
Production runs 260 runs 390 runs
1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa.
2. Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $10 per case of Extra Fine and $9 per case of Family Style.
3-A. If the market price of Extra Fine Salsa is $19 per case and the market price of Family Style Salsa is $13 per case, determine the gross profit per case for each product.
3-b. What might management conclude about the Family Style Salsa product line.
Answer:
1.$4.29 per cases
2. Extra Fine $14.29
Family Style $13.29
3a. Extra Fine $4.71
Family Style $0.29
3b. What might the management conclude about the Family Style Salsa product line is that Family Style salsa are not yielding profit which may may inturn make make the company to stop the production of the product in a situation where either the cost are not reduced or where the price.
Explanation:
1. Computation for the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa using Plantwide overhead rate
Using this formula
Overhead cost=Total overhead cost/Total volume
Let plug in the formula
First step is to calculate the Total overhead cost
Total overhead cost = $130,800 + $349,000 +$206,000
Total overhead cost =$685,800
Second step is to calculate the Total volume
Total volume= 35,000 + 125,000 cases
Total volume=160,000 cases
Now let calculate the Overhead cost
Overhead cost=$685,800/160,000 cases
Overhead cost=$4.29 per cases (rounded)
Therefore since we are making use of plantwide rate which means that same overhead cost of the amount of $4.29 per cases will be assigned to each of the two case .
2. Calculation to determine the total cost per case for the two products
Extra Fine Family Style
Direct materials + Direct Labor $ 10.00 $ 9.00
Add Overhead $4.29 $4.29
Manufacturing cost per case $ 14.29 $ 13.39
Therefore the the total cost per case for the two products will be:
Extra Fine $14.29
Family Style $13.29
3-A Calculation to determine the gross profit per case for each product.
Extra Fine Family Style
Selling price per case $ 19.00 $ 13.00
Less Manufacturing cost per case $14.29 $13.29
Gross profit (loss) per case $ 4.71. $ (0.29 )
Therefore the gross profit per case for each product will be ;
Extra Fine $4.71
Family Style $0.29
3-b. Based on the above Calculation What might the management conclude about the Family Style Salsa product line is that Family Style salsa are not yielding profit which may may inturn make make the company to stop the production of the product in a situation where either the cost are not reduced or where the price.
Based on your experience and shopping habit, discuss WHAT inventory control model you will use in the following scenarios and WHY you will use that specific model. a. Supply our kitchen with fresh food b. Obtaining a daily newspaper c. Buying gas for your car d. Ordering the game sweater for the community baseball game Inventory control models: Single period model (also called Newsvendor model) Fixed order quantity model (also called Q-model or EOQ model) Fixed time model (also called P-model)
Answer:
2 types of inventory models:
1. Fixed Reorder Quantity System - It is a system where an alarm is raised when the inventory level drops below a fixed quantity and inventory is restocked based on demand.
2. Fixed Reorder Period System - It is a system where an alarm is raised after a fixed period of time and inventory is restocked based on demand.
The following situation are:
1. Supply kitchen with fresh food - Both Fixed Reorder Quantity System and Fixed Reorder Period System are suitable for this situation. Reason: Food is considered basic need. Certain food items are stocked when the inventory level drops below a fixed quantity and certain food items are stocked after a fixed period of time, both as per demand.
2. Obtaining daily newspaper - Fixed Reorder Period System is only suitable for this situation. Reason: Subscription is renewed only on completion of the fixed period.
3. Buying gas for your car - Fixed Reorder Quantity System is only suitable for this situation. Reason: Gas for your car is something you buy when the level of inventory drops below a fixed quantity and hence used.
4. Ordering the game sweater for the community baseball game - Fixed Order Period System is only suitable for this situation. Reason: Game sweater is required only during the game and you will order/buy the game sweater during the game only.
Adams Moving and Storage, a family-owned corporation, declared a property dividend of 1,000 shares of GE common stock that Adams had purchased in February for $37,000 as an investment. GE’s shares had a market value of $35 per share on the declaration date. Prepare the journal entries to record the property dividend on the declaration and payment dates.
Answer:
General Journal Debit Credit
1. Loss on investment $2,000
[$37,000 - (1000 * $35)]
Investment in GE stock $1,600
2. Retained earnings $35,000
(1000 * $35)
Property dividends payable $35,000
3. Property dividends payable $35,000
Investment in GE stock $35,000
Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Johnstone Manufacturing Company for the month ended March 31 are as follows:
Inventories March 1 March 31
Materials $178,750 $151,940
Work in process 119,760 101,800
Finished goods 91,160 103,320
Direct labor $321,750
Materials purchased during March 343,200
Factory overhead incurred during March:
Indirect labor 34,320
Machinery depreciation 20,740
Heat, light, and power 7,150
Supplies 5,720
Property taxes 5,010
Miscellaneous costs 9,300
Required:
a. Prepare a cost of goods manufactured statement for
b. Determine the cost of goods sold for March.
Answer and Explanation:
a. The preparation of the cost of goods manufactured statement is as follows:
Opening work in process $119,760
Direct Material
Opening inventory $178,750
Add: Material Purchased $343,200
Cost of Materials Available $521,950
Less: Ending Inventory -$151,940
Cost of Direct Materials Used $370,010
Direct Labor $321,750
Factory Overhead:
Indirect Labor $34,320
Machinery Depreciation $20,740
Heat, Light and Power $7,150
Supplies $5,720
Property Taxes $5,010
Miscellaneous Costs $9,300
Total Factory Overhead $82,240
Total Manufacturing Costs Incurred $774,000
Total Manufacturing Costs $893,760
Less: Ending Work in Process $101,800
Cost of Goods Manufactured $791,960
b. Now the cost of goods sold is
Cost of Goods Sold= Cost of Goods Manufactured + Beginning Finished Goods - Ending Finished Goods
= $791,960 + $91,160 - $103,320
= $779,800
Assume the sales mix consists of three units of Product A and one unit of Product B. If the sales mix shifts to four units of Product A and one unit of Product B, then the weighted-average contribution margin will ________. a. stay the same b. cannot be determined from this information c. decrease per unit d. increase per unit Clear my choice Question 14 Not yet answered Points out of 2.00 Flag question Question text Assume the sales mix consists of three units of Product A and one unit of Product B. If the sales mix shifts to four units of Product A and one unit of Product B, then the breakeven point will ________.
The answer is decreases per unit.
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A company is targeting its marketing by running an advertising campaign showing a Hmong family celebrating its traditions during the 4th of July holiday. The ad campaign features the company products being used by the children. What area of consumer decision influence is the marketing campaign using?
a. American culture, an ethnic subculture, and family
b. psychological aspects of belief and attitude
c. social class and word-of-mouth influence
Answer:
American culture, an ethnic subculture, and family
Explanation:
LeMans Company produces specialty papers at its Fox Run plant. At the beginning of June, the following information was supplied by its accountant:Direct materials inventory ..... $62,400Work-in-process inventory ..... 33,900Finished goods inventory ..... 55,600During June, direct labor cost was $143,000, direct materials purchases were $346,000, and the total overhead cost was $375,800. The inventories at the end of June were:Direct materials inventory ..... $63,000Work-in-process inventory ..... 37,500Finished goods inventory ..... 50,800Required:1. Prepare a cost of goods manufactured statement for June.2. Prepare a cost of goods sold schedule for June.
Answer and Explanation:
1. The preparation of the cost of goods manufactured statement as follows:
Statement of Cost of Goods Manufactured
Direct Material:
Beginning Raw material Inventory $62,400
Add: Cost of raw material purchased $346,000
Material available $408,400
Less: Ending Raw material inventory -$63,000
Direct Materials used in Production $345,400
Direct Labor Cost $143,000
Total overhead cost $375,800
Total Manufacturing cost added $864,200
Add: Opening Work in Progress $33,900
Less: Closing Work in Progress -$37,500
Cost of Goods manufactured $860,600
2. The preparation of a Cost of Goods Sold is presented below:
Statement of Cost of Goods Sold
Opening Finished goods inventory $55,600
Add: Cost of Goods manufactured $860,600
Total goods available for Sale $916,200
Less: Closing finished goods inventory -$50,800
Cost of Goods Sold $865,400
Listed below are several terms and phrases associated with operational assets. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it.List A List B_____ 1. Depreciation_____ 2. Goodwill_____ 3. Amortization_____ 4. Natural resources_____ 5. Intangible assets_____ 6. Copyright_____ 7. Trademarka. Exclusive right to display a word, a symbol, or anemblem.b. Exclusive right to benefit from a creative work.c. Assets that represent contractual rights.d. Oil and gas deposits, timber tracts, and mineraldeposits.e. Purchase price less fair value of net identifiableassets.f. The allocation of cost for plant and equipment.g. The allocation of cost for intangible assets.
Answer:
List A Most appropriately associated
1. Depreciation The allocation of cost for plant and equipment.
2. Goodwill Purchase price less fair value of net identifiable assets.
3. Amortization The allocation of cost for intangible assets.
4. N. resources Oil and gas deposits, timber tracts, and mineral deposits
5. Intang. assets Assets that represent contractual rights
6. Copyright Exclusive right to benefit from a creative work
7. Trademark Exclusive right to display a word, a symbol, or an emblem
Kraus Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 72,700 tons from the Casting Department in October. During October, the Rolling Department completed 75,100 tons, including 8,200 tons of work in process on October 1. The ending work in process inventory on October 31 was 5,800 tons. How many tons were started and completed during October?
Answer:
66,900 tons
Explanation:
Calculation for How many tons were started and completed during October
Using this formula
Tons started and completed during October
= Units completed - Beginning work in process units completed
Let plug in the formula
Tons started and completed during October= 75,100 tons - 8,200 tons
Tons started and completed during October= 66,900 tons
Therefore the numbers of tons that were started and completed during October will be 66,900 tons
It takes about 5 minutes for a customer to fill out the paperwork. Entry of information on the paperwork into the system and verification with past records takes another 7 minutes for a receptionist. There are 2 receptionists. assistants on shift at any moment Table 1 summarizes the process data collected above. . It takes 17 minutes on average for the dental assistant to take an X-ray. There are 4 dental . There are 9 dentists working at the clinic. Each check-up takes 25 minutes on average. Assume further that the dentist gets $125 per hour while receptionist and dental assistant get paid $35 per hour Instruction Round "cost of direct labor to 2 decimal places.
Required:
a. What is the labor content?
b. What is the cost of direct labor?
Answer and Explanation:
The computation is shown below:
a. The labor content is
= 7 minutes + 17 minutes + 25 minutes
= 49 minutes per patient
b. The cost of direct labor is
= (9 × $125 + $35 × 6) ÷ (25 patients per hour)
= $1,335 ÷ 25 patients
= $53.40 per patient
By this way it would be calculated
Store Travel Time Each Way Price of a Dress
(Minutes) (Dollars per dress)
Local Department Store 15 104
Across Town 30 87
Neighboring City 60 80
Juanita makes $36 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $36 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
Store Opportunity Cost of Time Price of a Dress Total Cost
(Dollars) (Dollars per dress) (Dollars)
Local Department Store 104
Across Town 87
Neighboring City 80
Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress if she buys it from the:____________ .
Answer:
A.
1.Local department store
Opportunity cost of time=$36
Total cost=$140
2. Across town
Opportunity cost = $54
Total cost=$141
3. Neighboring city
Opportunity cost=$90
Total cost=$170
B. Local department store
Explanation:
A. Computation of the opportunity cost of Juanita's time and the total cost of shopping at each location
First step is to computer the Opportunity cost of time and Total cost
1. LOCAL DEPARTMENT STORE
Opportunity cost of time =(15+15+30)*36/60 Opportunity cost of time=$36
Total cost = $104+$36
Total cost=$140
2. ACROSS TOWN
Opportunity cost = (30+30+30)*36/60 Opportunity cost = $54
Total cost =$87+$54
Total cost=$141
3. NEIGHBORING CITY
Opportunity cost =(60+60+30)*36/60
Opportunity cost=$90
Total cost =$80+$90
Total cost=$170
Now let complete the table
Store Opportunity Cost of Time Price of a Dress Total Cost
1. Local department store $36 +104=$140
2. Across town $54+$87=$141
3. Neighboring city $90+$80=$170
B. Based on the above calculation Juanita will minimize the cost of the dress if she buys it from the LOCAL DEPARTMENT STORE reason been that it takes lesser time as well as lesser opportunity cost compare to Across town and Neighboring city.
Magic Realm, Inc., has developed a new fantasy board game. The company sold 16,400 games last year at a selling price of $62 per game. Fixed expenses associated with the game total $246,000 per year, and variable expenses are $42 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor.
1A. Prepare a contribution format income statement for the game last year1B. Compute the degree of operating levarge2. Management is confident that the company can sell 33,306 games next year (an increase of 6,006 games, or 22%, over last year).A. Compute the expected percentage increase in net operating income for next yearB. Compute the expected total dollar net operating income for next year (Do not prepare an income statement, use the degree of leverage to compute your answer)
Answer:
1A. Prepare a contribution format income statement for the game last year
Revenue $1,016,800
Variable costs -$688,800
Contribution margin $328,000
Fixed costs -$246,000
Net income $82,000
1B. Compute the degree of operating leverage
DOL = contribution margin / (contribution margin - fixed costs) = ($20 x 16,400) / [($20 x 16,400) - $246,000] = $328,000 / $82,000 = 4
2. Management is confident that the company can sell 22,406 games next year (an increase of 6,006 games, or 22%, over last year).A. Compute the expected percentage increase in net operating income for next year
DOL = % change in income / % change in total sales
4 = % change in income / 22%
% change in income = 4 x 22% = 88%
B. Compute the expected total dollar net operating income for next year (Do not prepare an income statement, use the degree of leverage to compute your answer)
expected dollar amount of net income = $82,000 x 1.88 = $154,160
In the United States, the federal government enforces antitrust laws and regulations to try to maintain effective levels of competition
True
False
Answer:
True
Explanation:
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Martinez Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $594,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $901,000. The following data pertain to the construction period:
2017 2018 2019
Costs to date $255,420 $433,620 $604,000
Estimated costs to 338,580 160,380 0
Progress billings to ate 271,000 547,000 901,000
Cash collected to date 241,000 497,000 901,000
Required:
a. Using the method, compute the estimated gross profit that would be recognized during each year of construction period.
b. Using the completed - contract method, compute the estimated gross profit that be recognized during each year of the period.
Answer:
Estimated gross profit 767,840 627,760 297,000
Explanation:
Compi for the estimated gross profit that would be recognized during each year of construction period.
2017 2018 2019
Price $901,000 $901,000 $901,000
Costs to date $255,420 $433,620 $604,000
Estimated costs to 338,580 160,380 0
Estimated Total cost 133,160 273,240 604,000
Estimated gross profit 767,840 627,760 297,000
Therefore the estimated gross profit that would be recognized during each year of construction period will be :
2017 2018 2019
767,840 627,760 297,000
What is exporting?
A. Receiving goods from another state
B. Shipping goods to another country
C. Receiving goods from another country
D. Shipping goods to another state
5.17. When a known future cash outflow in a foreign currency is hedged by a company using aforward contract, there is no foreign exchange risk. When it is hedged using futures contracts, the daily settlement process does leave the company exposed to some risk. Explain the nature of this risk. In particular, consider whether the company is better off using a futures contract or a forward contract when:a)The value of the foreign currency falls rapidly during the life of the contract.b)The value of the foreign currency rises rapidly during the life of the contract.c)The value of the foreign currency first rises and then falls back to its initial value.d)The value of the foreign currency first falls and then rises back to its initial value. Assume that the forward price equals the futures price
Risk is defined as:_____.
a. the tendency of people to evaluate the hazardousness of a situation or decision based on biases.
b. the estimated likelihood that a decision or action will have a negative consequence.
c. the degree to which probabilities cannot be assessed.
d. a product, process, or condition that potentially threatens people and their reproduction.
Answer:
The estimated likelihood that a decision or action will have a negative consequence
Explanation:
Risk is simply defined as a state of being Uncertain or not having the assurance as partains to loss. It is used in situations where probabilities of possible outcomes are known. Its estimate is not easy to go by.
Being Uncertain as partains to risk is having doubt about our ability to predict future outcomes. It usually is different across individuals even if risk is the same. Certain character may alter the Information and can limit it and it may be a good thing.
Based on the following data, determine the cost of merchandise sold for November:
Increase in estimated returns inventory $7,900
Merchandise inventory, November 1 13,200
Merchandise inventory, November 30 25,300
Purchases 263,400
Purchases returns and allowances 9,000
Purchases discounts 5,300
Freight in 3,700
Answer:
See below
Explanation:
The computation of the cost of merchandise sold for November is
= Opening inventory + net purchases - ending inventory
Where
Opening inventory = $13,200
Net purchases = $263,400 - $9,000 - $5,300 + $3,700 = $252,800
Ending inventory = $25,300
Merchandise sold = $13,200 + $252,800 - $25,300 = $240,700
Lei Corporation has bonds on the market with 16.5 years to maturity, a YTM of 7.7 percent, a par value of $1,000, and a current price of $1,065. The bonds make semiannual payments. What must the coupon rate be on these bonds?
Answer: 8.40%
Explanation:
Based on the information given, to solve the coupon rate goes thus using a financial calculator. This will be:
Par value = $1000
NPER = 16.5 × 2 = 33
Present value = $1065
Yield to maturity = 7.7%/2 = 3.85%
Coupon payment = $42.01
Coupon rate = Coupon payment / 1000
= 42.01 / 1000
= 0.04201
Annual coupon rate = Coupon rate × 2 = 4.20 × 2 = 8.40%
Therefore, the coupon rate on the bond will be 8.40%
Note that the NPER is the period for the investment. In this case, the NPER is 33 because it makes semiannual payment which means that we will multiply the years given by 2.
At the beginning of Year 1, a company reported a balance in common stock of $164,000 and a balance in retained earnings of $64,000. During the year, the company issued additional shares of stock for $54,000, earned net income of $44,000, and paid dividends of $11,400. In addition, the company reported balances for the following assets and liabilities on December 31.
Assets Liabilities
Cash $53,600 Account payable $9,100
Supplies 13,400 Un-earned revenue 2,400
Prepaid rent 24,000 Salaries payable 3,500
Land 200,000 Notes payable 15,000
Required:
a. Prepare a statement of stockholders' equity.
b. Prepare a balance sheet.
Answer:
Explanation:
The preparation of the statement of stockholder equity and balance sheet is presented below:
a. Statement of stockholder equity
Particulars Common stock Retained earnings Total stock equity
Beg balance $150000 $50,000 $200,000
Add: Addi shares $40,000 $40,000
Add: Net income $30,000 $30,000
Less: dividend -$10000 -$10000
Total $190,000 $70,000 $260,000
b. Balance sheet
Assets Amount
Cash $52,600
Supplies $13,400
Prepaid rent $24,000
Land $200,000
Total assets $290,000
Liabilities Amount
Account payable $9,100
Un-earned revenue $2,400
Salaries payable $3,500
Notes payable $15,000
Stockholder equity $260,000
Total liabilities & stockholder equity $290,000
Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $125,000 if credit were extended to these new customers. Of the new accounts receivable generated, 8% will prove to be uncollectible. Additional collection costs will be 3% of sales, and production and selling costs will be 80% of sales. The firm is in the 30 percent tax bracket.
A. Compute the incremental income after taxes.
B. What will Johnson’s incremental return on sales be if these new credit customers are accepted?
C. If the accounts receivable turnover ratio is 6 to 1, and no other asset buildup is needed to serve the new customers, what will Johnson’s incremental return on new average investment be?
Answer:
net increase in sales = $125,000 x (1 - 8% - 3%) = $111,250
net increase in costs = $125,000 x 80% = $100,000
average investment in assets = $125,000 / 6 = $20,833
A. Compute the incremental income after taxes.
incremental income = $111,250 - $100,000 = $11,250B. What will Johnson’s incremental return on sales be if these new credit customers are accepted?
return on sales = $11,250 / $125,000 = 9%C. If the accounts receivable turnover ratio is 6 to 1, and no other asset buildup is needed to serve the new customers, what will Johnson’s incremental return on new average investment be?
= $11,250 / $20,833 = 54%Optimum Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 2019, the end of the fiscal year, the balances of selected accounts from the ledger of Optimum Weight Loss Co. are as follows:
Accounts Payable $37,700
Accounts Receivable 116,750
Accumulated Depreciation - Equipment 186,400
Cash ?
Equipment 474,150
Land 300,000
Prepaid Insurance 7,200
Prepaid Rent 21,000
Salaries Payable 9,000
Cheryl Viers, Capital 710,300
Supplies 4,800
Unearned Fees 18,000
Required:
Prepare a classified balance sheet that includes the correct balance for Cash.
Answer:
Assets
Current assets
Cash $37,500
Accounts Receivable $116,750
Prepaid Insurance $7,200
Prepaid Rent $21,000
Supplies $4,800
Total current assets $187,250
Non-current assets
Equipment $474,150
Accumulated Depreciation - Equip. $186,400
Land $300,000
Total non-current assets $587,750
Total assets $775,000
Liabilities
Accounts Payable $37,700
Salaries Payable $9,000
Unearned Fees $18,000
Total liabilities $64,700
Equity
Cheryl Viers, Capital $710,300
Total equity $710,300
Total liabilities + equity $775,000
What is the focus of fiscal policy?
A. Judicial appointments
B. Foreign diplomacy
C. Taxation and spending
D. Environmental regulation
Answer:c
Explanation:
The focus of fiscal policy is primarily on taxation and government spending. Hence option C is correct .
What is the focus of fiscal policy?Fiscal policy refers to the actions taken by a government to influence its economy, particularly in terms of managing the levels of inflation, unemployment, and economic growth.
One of the key tools of fiscal policy is taxation, which refers to the government's ability to collect money from individuals and businesses based on their income or consumption. The government can use taxation to either increase or decrease the amount of money in circulation in the economy, thus affecting economic activity and growth.
Government spending is another important aspect of fiscal policy. The government can use its spending power to invest in various sectors of the economy, such as education, infrastructure, or healthcare. This can have a significant impact on economic growth and job creation.
In general, the focus of fiscal policy is to create a stable and sustainable economic environment that promotes growth and prosperity for all citizens. While other issues such as judicial appointments or foreign diplomacy may be important,
Thus option C is correct .
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which company would add the GDP of the United States?
a) an Indian company produces electronic devices at a factory in California.
b) a Japanese company manufactures an automobile in Tokyo that is sold exclusively in the United States.
c) an American company produces clothing at a factory in Haiti.
Answer:
b
Explanation:
The balance sheet at December 31, 2018, for Nevada Harvester Corporation includes the liabilities listed below: 10% bonds with a face amount of $54 million were issued for $54 million on October 31, 2009. The bonds mature on October 31, 2029. Bondholders have the option of calling (demanding payment on) the bonds on October 31, 2019, at a redemption price of $54 million. Market conditions are such that the call is not expected to be exercised. Management intended to refinance $11.2 million of its 10% notes that mature in May 2019. In early March, prior to the actual issuance of the 2018 financial statements, Nevada Harvester negotiated a line of credit with a commercial bank for up to $4.8 million any time during 2019. Any borrowings will mature two years from the date of borrowing.
Noncallable 10% bonds with a face amount of $28.0 million were issued for $28.0 million on September 30, 1996. The bonds mature on September 30, 2019. Sufficient cash is expected to be available to retire the bonds at maturity. A $19 million 7% bank loan is payable on October 31, 2024. The bank has the right to demand payment after any fiscal year-end in which Nevada Harvester’s ratio of current assets to current liabilities falls below a contractual minimum of 1.7 to 1 and remains so for six months. That ratio was 1.45 on December 31, 2018, due primarily to an intentional temporary decline in inventory levels. Normal inventory levels will be reestablished during the first quarter of 2019.
Required:
a. For each liability listed above, what amount will be reported as a current liability on the December 31, 2018 balance sheet?
b. Prepare the liability section of a classified balance sheet for Nevada Harvester at December 31, 2018. Accounts payable and accruals are $18 million.
Answer:
1a. The balance sheet at December 31, 2018, for Nevada Harvester Corporation includes the liabilities listed below: 10% bonds with a face amount of $54 million were issued for $54 million on October 31, 2009. The bonds mature on October 31, 2029. Bondholders have the option of calling (demanding payment on) the bonds on October 31, 2019, at a redemption price of $54 million. Market conditions are such that the call is not expected to be exercised.
Answer: The entire amount of $54 million should be included in current liabilities as it is callable by the bondholders at any point of time. The current liability that should be reported is $54 million
1b. Management intended to refinance $11.2 million of its 10% notes that mature in May 2019. In early March, prior to the actual issuance of the 2018 financial statements, Nevada Harvester negotiated a line of credit with a commercial bank for up to $4.8 million any time during 2019. Any borrowings will mature two years from the date of borrowing.
Answer: $6.4 million should be reported as a current liability as the company is unable to refinance this amount. The current liability that should be reported is $6.4 million.
1c. Noncallable 10% bonds with a face amount of $28.0 million were issued for $28.0 million on September 30, 1996. The bonds mature on September 30, 2019. Sufficient cash is expected to be available to retire the bonds at maturity.
Answer: $28 million should be reported as a current liability as it is payable in the current period. The current liability that should be reported is $28 million.
1d. A $19 million 7% bank loan is payable on October 31, 2024. The bank has the right to demand payment after any fiscal year-end in which Nevada Harvester's ratio of current assets to current liabilities falls below a contractual minimum of 1.7 to 1 and remains so for six months. That ratio was 1.45 on December 31, 2018, due primarily to an intentional temporary decline in inventory levels. Normal inventory levels will be reestablished during the first quarter of 2019.
Answer: No amount should be reported as a current liability as it is payable in the current period. The current liability that should be reported is 0.
2. Particulars Amount Amount
Current Liabilities:
Account payable $18,000,000
10% Notes payable $6,400,000
10% Bonds due on 31st Oct $54,000,000
10% Bonds due on 30th Sep $28,000,000
Total Current Liabilities $106,400,000
Non Current Liabilities:
10% Notes payable May 2019 $4,800,000
7% Bank Loan $19,000,000
Total Non Current Liabilities $23,800,000
Total Liabilities $130,200,000
Help: will give brainliest
A production manager is looking for new sources of raw material because he
is concerned about the effects of a long-term drought. This manager is
engaging in
A. enterprise risk management
B. scenario analysis
C. diversification planning
O D. offshore outsourcing
The manager is engaged, based on the looking out for new sources of the material needed, in Enterprise Risk management.
What is Enterprise Risk Management ?Enterprise risk management (ERM) is a systematic approach to identifying, assessing, and controlling risks that an organization faces in achieving its objectives. It involves the processes and systems used by organizations to assess and manage the uncertainty inherent in their operations and activities.
The goal of ERM is to help organizations make informed decisions that balance the trade-off between risk and reward and promote long-term success. This is what the manager is doing by trying to get ahead of the drought.
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