Answer:the adjustment to record bad debts for the period will require a
Debit on Bad debt expenses for $ 12,670 and a credit To Allowance for doubtful accounts for $ 12,670
Explanation:
Account receivables for uncollectibles= $13,900
Allowance for Doubtful Accounts = credit balance of $1230
Adjusting entry for bad debts expense =Account receivables - credit balance of $1230
= $13,900- $1,230
=$12,670
Adjusting entry for the record of bad debts expense
Accounts titles Debit Credit
Bad debt expenses $ 12,670
To Allowance for doubtful accounts $ 12,670
Your portfolio is 310 shares of Callahan, Inc. The stock currently sells for $101 per share. The company has announced a dividend of $3.20 per share with an ex-dividend date of April 19. Assuming no taxes, what is your portfolio value as of April 19?
Answer: $30,318
Explanation:
On the day the dividend is announced, the price of the stock usually goes down by the amount of dividend announced.
Price on April 19 = 101 - 3.20 = $97.80
Portfolio value = 97.80 * 310 shares
= $30,318
What investment per quarter does Luisa need to make at the end of each quarter into her savings account over 8 quarters to reach her vacation goal of $10,000 if she is getting a 24% APR on her account?
Answer:
c. $1,010.36
Explanation:
Options " ) $1,610.36 2) $522.93 3) $1,010.36 4) $110.02"
Future value = Pmt * ((1+r)^n - 1) / r
Pmt = FV / ((1+r)^n - 1) / r
Size of the deposit = 10,000 / ((1.06^8) - 1) / 0.06
Size of the deposit = 10,000 / (1.59384807453 - 1) / 0.06
Size of the deposit = 10,000 / (0.59384807453/0.06)
Size of the deposit = 10,000 / 9.897467908833333
Size of the deposit = 1010.359426482723
Size of the deposit = $1,010.36
During 2020, Sandeep had the following transactions: Salary $ 80,000 Interest income on City of Baltimore bonds 1,000 Damages for personal injury (car accident) 100,000 Punitive damages (same car accident) 200,000 Cash dividends from Chevron Corporation stock 7,000 Sandeep's AGI is: a.$387,000. b.$285,000. c.$287,000. d.$187,000.
Answer: c.$287,000.
Explanation:
City of Baltimore bonds are Municipal so their interest are tax exempt and so are Damages for personal injury.
Sandeep's AGI is therefore;
= Salary + Punitive damages + Cash dividends from Chevron
= 80,000 + 200,000 + 7,000
= $287,000
An asset group is being evaluated for an impairment loss. The following financial information is available for the asset group: Carrying value $100,000,000 Sum of the undiscounted cash flows $95,000,000 Fair value $80,000,000 What amount of impairment loss, if any, should be recognized
Answer:
The amount of the impairment loss that should be recognized is:
$20,000.
Explanation:
a) Data and Calculations:
Undiscounted cash flows = $95,000
Carrying value = $100,000
Fair value = 80,000
Impairment loss = $20,000
b) Impairment loss for the asset group is the difference between the fair value and the carrying value. It is recognized when the fair value declines from the carrying value. This implies that the calculation to determine the impairment loss is achieved by deducting the fair value from the carrying value.
Suppose that in 2020 the expected dividends of the stocks in a broad market index equaled $240 million when the discount rate was 8% and the expected growth rate of the dividends equaled 6%. Using the constant-growth formula for valuation, if the discount rate increases to 9%, the value of the broad market index will change by ________.
Answer:
-33.33%
Explanation:
This is the The formula for this solution:
Value of Market = Expected Dividend divided by (Discount Rate-Growth rate of Dividend)
The Expected Dividend is 240
Then Value of Market = 240/(8% - 6%)
= 12,000,000,000
Then we get Value of market when discount rate = 9%
The Value of Market = 240/(9% - 6%)
= 8,000,000,000
the market value has changed.
We then get the percentage change will be = (
= (12,000,000,000 - 8,000,000,000) / 12,000,000,000
= 33.33%
The market value has fallen by -33.33%
Explain what is meant by a balanced scorecard.
A balanced scorecard is a strategic management performance metric used to identify and improve various internal business functions and their resulting external outcomes. Balanced scorecards are used to measure and provide feedback to organizations.
Explanation:
have a good day <3
Michonne Corp.'s Free Cash Flow (FCF) for the most recent year (year 0) is $730 (million). FCF is expected to grow by 14% next year (1 year from now), by 10% the year after that (2 years from now), and by 5% per year thereafter. Michonne's WACC is estimated at 8%. The estimated Enterprise Value (Value of Operations) for Michonne is $____________(million).
Answer:
enterprise value = $29,024.26 million
Explanation:
first we must calculate the terminal value in year 2:
terminal value = FCF₃ / (WACC - g)
FCF₃ = $730 x 1.14 x 1.1 x 1.05 = $961.191WACC = 8%g = 5%terminal value = $961.191 / (8% - 5%) = $32,039.70
enterprise value = $832.2/1.08 + $915.42/1.08² + $32,039.70/1.08² = $770.556 + $784.825 + $27,468.879 = $29,024.26 million
Green Valley Exporters USA has $100,000 of before tax foreign income. The host country has a corporate income tax rate of 25% and the U.S. has a corporate income tax rate of 35%. If the U.S. has a bilateral trade agreement with the host country that calls for the total tax paid to be equal to the maximum amount that could be paid in the highest taxing country, what is the total amount of income taxes Green Valley Exporters will pay to the host country, and how much will they pay in U.S income taxes on the foreign earned income?A) $25,000
B) $35,000
C) $51,250
D) $60,000
Answer:
a. A) $25,000
b. $10,000
Explanation:
A. Calculation for what is the total amount of income taxes Green Valley Exporters will pay to the host country
Total amount of income taxes to pay host country=$100,000*corporate income tax rate of 25%
Total amount of income taxes to pay host country=$25,000
Therefore the total amount of income taxes Green Valley Exporters will pay to the host country will be $25,000
B. Calculation for how much will they pay in U.S income taxes on the foreign earned income
First step is to calculate tax amount in US
Tax amount in US=$100,000*35%
Tax amount in US=$35,000
Second step is to calculate host country corporate income tax rate
Host country corporate income tax rate =$100,000*25%
Host country corporate income tax rate=$25,000
Last step is to calculate how much will they pay in U.S income taxes on the foreign earned income
U.S income taxes on the foreign earned income=$35,000-$25,000
U.S income taxes on the foreign earned income=$10,000
Therefore how much will they pay in U.S income taxes on the foreign earned income is $10,000
If it is estimated that 30 persons will be living in this new chapter house, what would be the Skulls' annual cost savings by selecting the less costly location, rather than the more costly
Answer: B. $1,500
Explanation:
Cost of using Alpha Avenue
= 5,000 + (200 * 30 people)
= $11,000
Cost of using Beta Blvd.
= 8,000 + (150 * 30 people)
= $12,500
Cost savings = 12,500 - 11,000
= $1,500
In meeting the gross income test for claiming his father as a dependent, James must consider the income received by his father. This income included gross rents of $3,000 (expenses were $2,000), municipal bond interest of $1,000, dividends of $1,500, and Social Security of $4,000. What is James' father's gross income for the qualifying relative test purposes in 2019
Answer:
Explanation:
In 2019, the gross income test is an official order that all dependents have no right to earn more than a given amount of income each year which is ($4200).
To compute the gross income for James Father, we have:
Description Amount
Gross income for rents $3000
Municipal Bond Interest 0
Dividend Income $1500
Social Security: 0
(since social security is exempted from the gross-income dependency test;
The total gross income = $4500
Thus, the gross income for James Father is $4500 as such he is not qualified to be dependent.
What is a 3-month overnight indexed swap (OIS)?
Maxim Corp. has provided the following information about one of its products: Date Transaction Number of Units Cost per Unit 1/1 Beginning Inventory 255 $ 151 6/5 Purchase 455 $ 171 11/10 Purchase 155 $ 211 During the year, Maxim sold 510 units. What is cost of goods sold using the average cost method
Answer:
$87,858.55
Explanation:
Date Transaction Number of Units Cost per Unit
1/1 Beg. 255 $151
6/5 Purchase 455 $171
11/10 Purchase 155 $211
total 865
total purchases + beginning inventory = (255 x $151) + (455 x $171) + (155 x $211) = $149,015
average cost per unit = $149,015 / 865 units = $172.27
COGS = $172.27 x 510 units = $87,858.55
arrugia Corporation produces two intermediate products, A and B, from a common input. Intermediate product A can be further processed into Product X. Intermediate product B can be further processed into Product Y. The common input is purchased in batches that cost $90 each and the cost of processing a batch to produce intermediate products A and B is $36. Intermediate product A can be sold as is for $53 or processed further for $33 to make Product X that is sold for $80. Intermediate product B can be sold as is for $113 or processed further for $66 to make Product Y that is sold for $160. Required: a. Assuming that no other costs are involved in processing the common input or in selling products, what is the profit (loss) from processing one batch of the common input into the products X and Y
Answer:
if the firm processes A and B into X and Y, it will lose $25
Explanation:
total costs of producing product A and B = $90 (common input) + $36 (processing) = $126
selling price of A and B = $53 + $113 = $166
profit of selling A and B = $166 - $126 = $40
if A and B are processed further, the cost of X and Y = $126 + $33 + $66 = $225
selling price of X and Y = $80 + $160 = $240
profit of selling X and Y = $240 - $225 = $15
if the firm processes A and B into X and Y, it will lose $40 - $15 = $25
you are a euro-based portfolio manager and you have invested in the technology sector of the U.S. stock market. You want to keep your exposure to tech stocks but are worried about an impending financial crisis in the United States. What is the best way to manage your dollar currency risk
Answer: You enter into Euro/USD forward contract.
Explanation:
Based on the information given in the question, the best way to manage the dollar currency risk is to enter into Euro/USD forward contract.
A forward contract is a contract between two parties whereby an asset is being bought it sold at a particular price in the future. It should be noted that forward contract is good for speculations.
cba corp is worth 15 million as a standalone firm. abc corp has offered 350000 shares valued at 50 each to acquire cba. after the annoucmen, however, the price of abc shares falls to 45. what is the cost of the merger
Answer:
$.75 million
Explanation:
Calculation for what is the cost of the merger
Cost of merger= $350,000 ×$45 - ($15 million)
Cost of merger= $15.75 - $15 million
Cost of merger= $.75 million
Therefore the cost of the merger will be $.75 million
The Prince-Robbins partnership has the following capital account balances on January 1, 2015:
Prince, Capital $130,000
Robbins, Capital 120,000
Prince is allocated 80 percent of all profits and losses with the remaining 20 percent assigned to Robbins after interest of 7 percent is given to each partner based on beginning capital balances. On January 2, 2021, Jeffrey invests $40,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 6 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 2021, the partnership reports a net income of $10,000.
Required:
a. Prepare the journal entry to record Jeffrey entrance into the partnership on January 2, 2015.
b. Determine the allocation of income at the end of 2015.
Answer:
The Prince-Robbins-Jeffrey Partnership
a) Journal entry to record Jeffrey entrance into the partnership on January 2, 2015:
Debit Capital Account - Prince $72,000
Debit Capital Account - Robbins $18,000
Credit Goodwill $90,000
To record the negative goodwill arising at Jeffry entrance into the partnership.
Debit Cash Account $40,000
Credit Capital Account - Jeffrey $40,000
To record the investment by Jeffrey into the partnership.
b) Allocation of income at the end of 2015:
Prince Robbins Jeffrey Total
Interest 6% $3,480 $6,120 $2,400 $12,000
on new capital
Loss sharing -1,000 -600 -400 -2,000
Net income $2,480 $5,520 $2,000 $10,000
Explanation:
a) Data and Calculations:
January 1, 2015: Capital Old Profit sharing ratio
Prince, Capital $130,000 80%
Robbins, Capital 120,000 20%
Total $250,000 100%
Interest on capital = 7% based on beginning capital balances.
b) Calculation of Negative Goodwill arising from Jerry's admission:
New capital after Jerry's admission = $290,000
Implied capital at Jerry's admission = $40,000/20% = $200,000
Negative goodwill arising = $200,000 - $290,000 = -$90,000
This negative goodwill will be shared by Prince and Robbins to reduce their capital:
Prince = $72,000 ($90,000 * 80%)
Robbins - $18,000 ($90,000 * 20%)
c) New Capital on January 2, 2015:
Capital Negative Goodwill New Profit sharing ratio
Jerry, Capital $40,000 20%
Prince, Capital $58,000 ($130,000 - 72,000) 50%
Robbins, Capital $102,000 ($120,000 - 18,000) 30%
Total capital $200,000 100%
Interest on capital = 6%
d) Jeffrey's admission and ownership of 20% reduced the capital balances of Prince and Robbins by $90,000. There was a negative goodwill arising from his admission into the partnership. This negative goodwill is shared between the old partners in their old profit-sharing ratio.
Amber Corporation purchases 40,000 shares of its own $20 par value common stock for $80 per share. What will be the effect on stockholders' equity?
a. decrease $800,000
b. increase $3,200,000
c. increase $800,000
d. decrease $3,200,000
Answer:d. decrease $3,200,000
Explanation:
Outstanding shares = 40,000
Price per share = $80
Amount to be paid to purchase its own shares = Number of outstanding shares x Price per share
= 40,000 x 80
= $3,200,000
When a company buys its own share , it is termed as Treasury stock, Having known that Treasury stock tends to decrease stockholders equity.
The stockholders equity of Amber Corporation will be decreased by $3,200,000.
Shelton, Inc., has sales of $20 million, total assets of $18.2 million, and total debt of $9.1 million. Assume the profit margin is 9 percent. What is the company's net income
Answer:
$1,800,000
Explanation:
Shelton incorporation has sales of $20,000,000
Total assets is $18.2 million
Total debt is $9.1 million
Profit margin is 9%
Therefore the company net income can be calculated as follows.
= sales × profit margin
= 20,000,000 × 9/100
= 20,000,000 × 0.09
= 1,800,000
Hence the company net income us $1,800,000
A company issues $100,000 face value, zero-coupon, 4-year U.S. corporate bonds on January 1, 20XO, when the market rate for similar risk bonds is 12%. The bond uses annual compounding. The firm uses effective-interest amortization. What is the amount for the second discount or premium Bond Payable journal entry
Answer:
Amount = Maturity/(1+risk rate)⁴
Amount = $100,000/(1+0.12)⁴
Amount = $63,552 (Approx)
Interest payable = $63,552 x 0.12
Interest payable = $7,626 (Approx)
Interest payable (2nd period) = ($63,552+$7,626) x 0.12
Interest payable (2nd period) = $8,541 (Approx)
Explanation:
JOURNAL ENTRY
BOOKS OF (.....)
Date Account title Debit Credit
Cash a/c Dr $63,552
To Bonds payable a/c $63,552
1st-period
Bond Interest a/c Dr $7,626
To Bonds payable a/c $7,626
2nd-period
Bond Interest a/c Dr $8,541
To Bonds payable a/c $8,541
Average accumulated expenditures: Multiple Choice Is an approximation of the average debt a firm would have outstanding if it financed all construction through debt. Is computed as a simple average if all construction expenditures are made at the end of the period. Are irrelevant if the company's total outstanding debt is less than total costs of construction. All of these answer choices are true statements.
Answer:
A. Is an approximation of the average debt a firm would have outstanding if it financed all construction through debt.
Explanation:
Average accumulated expenditure can be regarded as the product of incurred expenditure on qualifying asset and par capitalization per unit for the period of that time in years. It should be noted that Average accumulated expenditures Is an approximation of the average debt a firm would have outstanding if it financed all construction through debt.
) If product Light is processed further and sold, what would be the financial advantage (disadvantage) for Bodbbm177 Corporation compared with sale in its unprocessed form directly after the split-off point?
Answer: Disadvantage of -$5,800
Explanation:
Incremental sales revenue if processed further and sold = (12 - 10) * 2,200
= $4,400
Additional cost = $10,200
Financial Advantage(Disadvantage) = Incremental revenue - Additional cost
= 4,400 - 10,200
= -$5,800
g Metlock, Inc. purchased office supplies costing $6300 and debited Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $2250 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be:
Answer:
Dr Supplies Expense $4050
Cr Supplies $4050
Explanation:
Preparation for the appropriate adjusting journal entry to be made at the end of the period
Based on the information given we were told that the company made purchased of office supplies of the amount of $6300 in which the full supplies amount was debited which means that if at the end of the accounting period the physical count of office supplies shows the amount of $2250 The appropriate adjusting journal entry to be made at the end of the period would be:
Dr Supplies Expense $4,050
Cr Supplies $4,050
($6300-$2250)
Long Life Floors just paid an annual dividend of $0.82 a share and plans on increasing future dividends by 2 percent annually. The discount rate is 15 percent. What will the value of this stock be 5 years from
Answer:
the value of this stock be 5 years from today is $7.10
Explanation:
The computation of the value of the stock be 5 years from today is as follows:
D6 is
= D0 × (1 + 2%)^6
= $0.82 × (1 + 2%)^6
= 0.923453184
Now the price at year 5 is
= 0.923453184 ÷ (15% - 2%)
= $7.103486031
Hence, the value of this stock be 5 years from today is $7.10
What was the impact of "subprime" mortgages on the economy?
A.They increased defaults and caused large losses at financial institutions.
B.They initially reduced profits and sales of lenders.
C. They reduced interest rates.
Answer:
A.They increased defaults and caused large losses at financial institutions.
Explanation:
'Subprime" mortgages were home homes offered in the early 2000s to borrowers with low and poor credit history. By the time of issues, the interest rates were relatively low, which meant that subprime borrowers who usually attract high-interest rates were approved for mortgages. The demand for housing grew exponentially as borrowers with good and poor credit history alike tool mortgages. The price for houses continued to rise, prompting the Fed to raise the interest rate to contain inflation.
Between 2205 and 2006, house prices collapsed suddenly. Interest rates were rising, but house prices were dropping. Many homeowners were unable to repay their mortgages. The interest and principle there are paying were very high compared to the market value for the homes. There were massive layoffs by subprime mortgage lenders, while others closed down or applied for bankruptcy. The decline in prices implied that the mortgage value was high compared to the market price for houses.
Long Life Floors is expected to pay an annual dividend of $7 a share and plans on increasing future dividends by 2 percent annually. The discount rate is 15 percent. What will the value of this stock be 5 years from today
Answer: $60.62
Explanation:
Using the Gordon Growth model;
Value = Next dividend / (Required return - growth rate)
Next dividend in 5th year will be dividend in 6th year;
= 7 * (1 + 2%)⁶
= $7.88
Value₅ = 7.88 / (15% - 2%)
= $60.62
In the early 1900s, Henry Ford introduced a a. high-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory. b. low-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. c. high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. d. low-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory.
Answer:
high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory
In the early 1900s, Henry Ford introduced a high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. The correct option is c.
In 1914, Henry Ford implemented a high-wage program known as the "Five Dollar Day" that considerably raised the earnings of his employees. This action was taken to increase production, decrease turnover, and recruit and keep a skilled team.
The high-wage theory, which contends that paying higher wages may result in a number of advantages for employers, was in line with this high-wage policy's expectations.
Thus, the ideal selection is option c.
Learn more about Henry Ford here:
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Question 1: Peking Duct Tape Company has outstanding a $1,000-face-value bond with a 14 percent coupon rate and 3 years remaining until final maturity. Interest payments are made semiannually. What value should you place on this bond if your nominal annual required rate of return is 14 percent?
Answer:
Price Value of bond = $1,000
Explanation:
Given:
Face value = $1,000
Coupon rate = 14% yearly
Semi-annual rate = 14 / 2 = 7%
Number of year = 3
Semi-annual year = 3 x 2 = 6
Computation:
pmt(Semi-annual) = (coupon rate x face value)/2
pmt(Semi-annual) = (14% x 1000)/2
pmt(Semi-annual) = 140/2
pmt(Semi-annual) = $70
By using PV formula
=PV(rate,nper,pmt,fv,type) , [Semi-annual]
=PV(7%,6,70,1000,0)
Price Value of bond = $1,000
Bramble Corp. reported net income of $87800 for the year ended December 31, 2021. Included in net income were depreciation expense of $16500 and a gain on sale of equipment of $3600. The equipment had an historical cost of $80500 and accumulated depreciation of $48400. Each of the following accounts increased during 2021: Land $10900 Prepaid rent $14000 Available-for-sale securities $2000 Bonds payable $9500 What is the amount of cash provided by or used by investing activities for Bramble Corp. for the year ended December 31, 2021?
Answer:
net cash provided by investing activities $22,800
Explanation:
the carrying value of the equipment = $80,500 - $48,400 = $32,100
the sales price of the equipment was $32,100 + $3,600 (gain on sale) = $35,700
land was purchased for $10,900
available for sale securities were purchased fro $2,000
total cash flows from investing activities = $35,700 (cash proceeds from sales of equipment) - $10,900 (land purchased) - $2,000 (AFS securities purchased) = $22,800
What are the sources of economic profits for a company or an industry?
This can be seen by noting three reasons for economic profit: (1) market control, (2) risk, and (3) innovation. Market Control: One of the most common reasons for economic profit is market control by a firm. A firm has market control if it can exert some degree of influence, or control, over the market price.
Explanation:
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The cost of equity for a firm is 20%. If the real interest rate is 5%, the inflation premium is 3%, and the market risk premium is 2%, what is the investment risk premium for the Firm
Answer: 10%
Explanation:
Investment risk premium is used to determine the returns an investor makes in excess of real interest rates, inflation and the market return;
= Cost of Equity - Real interest rate - Inflation premium - Market risk premium
= 20% - 5% - 3% - 2%
= 10%