Answer: a. for a wide range of economic and political agendas as well as for religious and philosophical reasons.
Explanation:
There were various reasons the early colonists came to Northern America to found the colonies such as for economic and political reasons and others for religious reasons.
William Bradford for instance, helped found the Plymouth Colony as a haven for Puritan separatists like himself to escape persecution in England. John Smith on the other hand, came more for economic reasons.
Then there was James Oglethorpe of Georgia who wanted to found a home for the "worthy poor" of England so that they would have a chance to make something of themselves.
Galaxy Company sold merchandise costing $3,400 for $5,800 cash. The merchandise was later returned by the customer for a refund. The company uses the perpetual inventory system. What effect will the sales return have on the financial statements
Answer:
Total assets and total equity decrease by $2,400
Explanation:
The journal entry to record the sales return is
Sales return Dr $5,800
To account receivable $5,800
(being the sales return is recorded)
Inventory Dr $3,400
To cost of goods sold $3,400
(Being the inventory is recorded)
So as we can see that total assets and total equity decreased by
= $5,800 - $3,400
= $2,400
Best Buy Electronics sells computers and provides hardware maintenance services. On April 1st, Best Buy sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000. If sold separately, the computer costs $840 and the one-year unlimited maintenance/repair service costs $360. How much revenue does Best Buy Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly?
a. $985.50
b. $19.50
c. $821.25
d. $1,000
Answer:
C. $725
Explanation:
Calculation to determine How much revenue does Best Buy Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly
Total cost if sold separately = 840 + 360
Total cost if sold separately = 1200
% of Computer = 840/1200
% of Computer= 70%
% of maintenance = 360/1200
% of maintenance= 30%
Revenue to be recognized for the month for computer
Revenue = 1,000 * 70%
Revenue = $700
Revenue to be recognized for the month for maintenance service costs
Revenue = (30% * 1000)/12
Revenue = 300/12
Revenue = $25
Total amount to be recognized =$700+ $25
Total amount to be recognized =$725
Therefore How much revenue does Best Buy Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly will be $725
Mackie Services operates a website that links experienced statisticians with businesses that need data analyzed. Statisticians post their rates, qualifications, and references on the website, and Mackie receives 25% of the fee paid to the statisticians in exchange for identifying potential customers. Hoffman Associates contacts Mackie and arranges to pay a consultant $1,500 in exchange for analyzing some data. Mackie's income statement would include the following with respect to this transaction:_________
a. Revenue of $1,875 and cost of services of $1,500
b. Revenue of $1,500
c. Revenue of $1,500, and cost of services of $1,125
d. Revenue of $375
Answer:
d. Revenue of $375
Explanation:
The amount paid by the Vetmed associates is an expense for associates
The amount received by statisticians is a revenue for them
Mackie Services an intermediate between the two and so, the percentage amount received by Mackie Services is a revenue
Mackie's income statement would include a revenue of:
= Amount paid to statisticians * % Received
= $1,500 * 25%
= $375
Your company has earnings per share of $ 4.19. It has 1.9 million shares outstanding, each of which has a price of $59. You are thinking of buying TargetCo, which has earnings per share of $ 2.10, 1.9 million shares outstanding, and a price per share of $ 21.You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. If companies in the same industry as TargetCo are trading at multiples of 12 timesearnings, what would be one estimate of an appropriate premium forTargetCo?
TargetCo has $2.10 in earnings, so if other companies in its industry are trading at 12 times earnings, then a starting point for a valuation of TargetCo in this transaction might be ________ pershare, implying a _________ premium
Answer:
If the current earnings per share of TargetCo. are $2.10, and the times earnings multiple is 12, the relative valuation should result in a $2.10 x 12 = $25.20 per stock. This means that the premium per stock = $25.20 - $21 = $4.20, and the total premium paid for all the 1.9 million shares = $7.98 million.
On March 1, Incredible Company issued a $600,000, 90-day interest-bearing note to Minions Bank. Interest on the note is 10% and is paid at maturity. Assume an April 30 fiscal year-end and a 360 day year when calculating interest.
Group of answer choices
May 30
May 29
June 1
May 31
Answer:
I do not know at all
Explanation:
I do not know
Feedback is important in improving your performance, and we should solicit feedback, and not just wait until someone provides us with feedback. Group of answer choices
a. True
b. False
Answer:
The given statement is "True".
Explanation:
Feedback would be a significant aspect in improving the accomplishment or organization's success.Requesting or waiting for such feedback might contribute to less and less input, although the organization must request for input, this same person might communicate with the organization by requesting comments.Thus the above is the correct answer.
Brinkley Corporation needs to estimate the profit for a new product. Profit is selling price minus cost. The selling price for the product will be $45/unit. The cost of the new product will comprise procurement, labor, and transportation costs. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows:
Procurement Cost ($) Probability Labor Cost ($) Probability Transportation Cost ($) Probability
10 0.25 20 0.10 3 0.75
11 0.45 22 0.25 5 0.25
12 0.30 24 0.35
25 0.30
Required:
Compute profit per unit for the worst case.
Answer:
Brinkley Corporation
Profit per unit for the worst case is:
= $7.05.
Explanation:
a) Data and Calculations:
Selling price for the product = $45 per unit
Cost of the new product =
Procurement Probability Labor Probability Transportation Probability
Cost ($) Cost ($) Cost ($)
10 0.25 20 0.10 3 0.75
11 0.45 22 0.25 5 0.25
12 0.30 24 0.35
25 0.30
Procurement Probability Labor Probability Transportation Probability
Cost ($) Cost ($) Cost ($)
2.50 (10 * 0.25) 2.00 (20 * 0.10) 2.25 (3 * 0.75)
4.95 (11 * 0.45) 5.50 (22 * 0.25) 1.25 (5 * 0.25)
3.60 (12 * 0.30 ) 8.40 (24 * 0.35)
7.50 (25 * 0.30)
11.05 23.40 3.50
Procurement cost = $11.05
Labor cost = 23.40
Transportation cost 3.50
Total cost = $37.95
Selling price per unit = $45.00
Total cost per unit 37.95
Profit per unit = $7.05
Problem 5-1 Simple Interest versus Compound Interest [LO1] First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $68,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years
Answer:
$14,343.25
Explanation:
The computation is shown below;
For the first bank
The value of investment is
= $68,000 × 8% × 8 + $68,000
= $111,520
For the second bank
= $68,000 × (1 + 0.08)^8
= $125,863.25
So, the difference in these both amount should be
= $125,863.25 - $111,520
= $14,343.25
Suppose the production of long-distance airline flights is described by a fixed proportion production process in which three crew members (i.e., labor) are required for each aircraft (i.e., capital). If the airline operates with four crew members per plane, then we know that:
Answer:
production at this point is technically inefficient.
Explanation:
Efficient production processes requires a producer to either minimise the inputs they are using at a given output or maximise output level at a given input level.
Technical inefficiency is when input is not minimised or output maximised.
In the given instance the fixed cost (airplane) remains unchanged. However crew members can be variable.
If the airplane only requires 3 crew members and 4 crew members are now used, the company is not minimising inputs used so they are technically inefficient.
Mainway Toy Company currently has 10,000 shares of common stock outstanding. Its management believes that its current stock price of $95 per share is too high. The company is planning to conduct stock splits in the ratio of 2 for 1 as described in the animation. If Mainway Toy Company declares a 2-for-1 stock split, the price of the company's stock after the split, assuming that the total value of the firm's stock remains the same after the split, will be ____________.
Answer:
$47.50
Explanation:
A stock split implies dividing the existing number of shares into multiples in order to enhance the liquidity of the firm's shares.
It is noteworthy that the stock split does not add any value to the existing stock account balance as well as paid in surplus account value since only the number of issued shares changed , values are kept constant.
share price after split=share price before split/stock split ratio
share price before split=$95
stock split ratio=2/1
share price after split=$95/2/1
share price after split=$95*1/2
share price after split=$47.50
study Assume that you are going to invest $120,000 in a two asset portfolio. You will invest $80,000 in the fully diversified market portfolio and the remainder of your funds will be invested in the riskless security. Assume the market risk premium is 8% and the riskless return is 4%. Compute the expected return on this portfolio.
Answer:
9.33%
Explanation:
The expected return of two asset portfolio is the weighted average of individual assets' expected to return as computed thus:
Portfolio expected return=(weight of market portfolio*expected return of market portfolio)+(weight of riskless security*expected return of riskless security)
weight of market portfolio=amount invested in market portfolio/total invested amount
weight of market portfolio=$80,000/$120,000=66.67%
expected return of market portfolio=market risk premium+riskless return
expected return of market portfolio=8%+4%=12%
weight of riskless security=1-66.67%=33.33%(since total investment which is 100% is 1)
expected return of riskless security=4%
Portfolio expected return=(66.67%*12%)+(33.33%*4%)
Portfolio expected return=\=9.33%
What are the three main goals of monetary policy?
the long run average cost curve is also called as
Answer:
planning curve.
Explanation:
A long run average cost curve is known as a planning curve.
Use the following information to compute profit margin for each separate company a through e. (Round your answers to 1 decimal place.)
Company Net income Net sales Profit Margin
a. $5,253 $44,140
b. 86,033 392,846
c. 90,324 251,598
d. 63,120 1,434,550
e. 72,787 428,158
Required:
Which of the five companies is the most profitable according to the profit margin ratio?
Answer:
the Company C is the most profitable
Explanation:
The computation of the profit margin for the following companies is
We know that
Profit margin = Net income ÷ Net sales
Now
Company Net income Net sales Profit margin
a $5,253 $44,140 11.9%
b $86,033 $392,846 21.9%
c $90,324 $251,598 35.9%
d $63,120 $1,434,550 4.4%
e $72,787 $428,158 17.0%
Based on the calculation above, the Company C is the most profitable
ABC Systems located in Alabama expects a 9% after-tax rate of return on an equipment investment. The state tax rate is 6%. If the company is in the 34% federal tax bracket, estimate the before-tax rate of return required. Hint: Combined tax rate
Answer: 14.5%
Explanation:
The after tax return is calculated by the formula:
= Before tax return * (1 - federal tax) * (1 - State tax)
As we have the after tax return, we should work on the before tax:
9% = Before tax return * (1 - 34%) * (1 - 6%)
9% = Before tax return * 0.6204
Before tax return = 9% / 0.6204
= 14.5%
This year, he received $7,000 revenue from the tenants and incurred $4,900 rental expenses. Mr. Moyer must include $7,000 in gross income and is allowed $4,900 of itemized deductions for the expenses.
A. True
B. False
Answer:
B. False
Explanation:
a) Data and Calculations:
The gross income from rent = $7,000
Rental expenses = $4,900
Net income from rent = $2,100
b) Rental expenses are business expenses. They are not part of itemized deductions. They are usually subtracted before arriving at the adjusted gross income (AGI) from which itemized deductions are then made. Therefore, there is no requirement to itemize the rental expenses.
The gain or loss from retirement of debt is reported under cash flows from operating activities on the statement of cash flows using the indirect method.
a. True
b. False
Answer:
a. True
Explanation:
When we have to adjust and converted the net income into the cash basis the gain is subtracted and losses are added to the net income in the operating activities section of the cash flow statement
Since there is the gain or loss from the retirement of the bonds so the same should be deducted or added to the net income as the case may be
Therefore the correct option is a.
Vietnamese citizens went working in Korea. They sent their income back to the families in Vietnam, worth of $678,000. Which account is affected?; how do you record this into the US BoP?
Answer:
a. Current Account.
b. A credit to the Current Account.
Explanation:
When people go to another country for work and send the income they make back to their country of origin as remittances, this goes to the Current Account of a nation's Balance of Payments.
It would be recorded as a credit to this account because when money goes out, it goes to the credit side of the U.S. BOP as it is being exported out so is leaving the economy of the U.S.
Isabelle provides her subordinates with plenty of opportunities to grow and be recognized at their job by allowing them to take on challenging tasks and letting them have more control and authority over their jobs. Which strategy is Isabelle using to motivate her subordinates
Answer:
Job enrichment
Explanation:
A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.
Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.
In this scenario, the strategy Isabelle is using to motivate her subordinates is job enrichment by giving or granting them greater satisfaction in their jobs.
Simkin Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Hours Wait time 21.2 Process time 3.7 Inspection time 0.7 Move time 3.3 Queue time 5.4 The manufacturing cycle efficiency (MCE) was closest to:
Answer:
the manufacturing cycle efficiency (MCE) is 0.28
Explanation:
The computation of the manufacturing cycle efficiency (MCE) is shown below:
Manufacturing cycle efficiency is
= Value-added time (Process time) ÷ Throughput time
= 3.7 ÷ (3.7 + 0.7 + 3.3 + 5.4)
= 0.28
Hence, the manufacturing cycle efficiency (MCE) is 0.28
We simply applied the above formula so that the correct value could come
suppose ta hurricane hits alabama causing widespread damage to houses and businesses the governor of alabama places pirce cielings on all building materials to keep the prices reasonable
Answer:
Shortages of building materials and a slower recovery from the storm
Explanation:
From the question we are informed about an instance, whereby a hurricane hits Alabama, causing widespread damage to houses and businesses. The governor of Alabama places price ceilings on all building materials to keep the prices reasonable. In this case,what most likely result is Shortages of building materials and a slower recovery from the storm.
From law of demand, which expressed that provided other factors remain equal, when price of a good goes higher, then there would be less demand of that good from
people and vice versa. higher price brings lower the quantity demanded, and lower price brings higher the quantity demanded, therefore in the case, above as the price of ceilings on all building materials so that price becomes reasonable people demand more and it leads to Shortages of building materials
Kite Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.
Sales (3,000 units) $ 180,000
Variable expenses 108,000
Contribution margin 72,000
Fixed expenses 62,400
Net operating income $ 9,600
The contribution margin ratio is closest to:______.
a. 33%
b. 40%
c. 60%
d. 67%
Answer:
b. 40%
Explanation:
Contribution margin ratio = Contribution / Sales x 100
where,
Contribution = Sales - Variable Costs
= $180,000 - 108,000
= $72,000
therefore,
Contribution margin ratio = $72,000/ $180,000 x 100
= 40 %
thus,
The contribution margin ratio is closest to 40 %.
A company using IFRS to prepare its financial statements will use a hierarchy to determine what recognition, valuation, and disclosure requirements should be used.
1. IFRS, IAS, IFRS Interpretations
2. Pronouncements of other standard-setting bodies
3. The Conceptual Framework for Financial Reporting
Which of the following depicts the correct order of the hierarchy?
a. 2,3,1
b. 3,2,1
c. 1.2.3
d. 1,3,2
Answer:
The hierarchy for determining recognition, valuation, and disclosure requirements for IFRS is:
d. 1,3,2
Explanation:
1. IFRS, IAS, IFRS Interpretations are the main standards issued by the IASB, the international accounting standard-setting body. It is like the FASB that sets the US GAAP.
2. Pronouncements of other standard-setting bodies can be applied where IFRS are not definitive.
3. The Conceptual Framework for Financial Reporting help the IASB to develop and revise IFRS that are based on consistent concepts.
The Polozzi Trust projects that it will incur the following items in the next year, which will be its first year of existence.
Interest income $25,000
Rent income 100,000
Cost recovery deductions for the rental activity $35,000
Capital gain income 40,000
Fiduciary and tax preparation fees 7,000
Betty, the grantor of the trust, is working with you on the language in the trust instrument relative to the derivation of annual accounting income for the entity. She will name Shirley as the sole income beneficiary and Benny as the remainder beneficiary.
a. If the allocation takes place, Shirley will receive how much for the year?
b. Betty suggests that the capital gains, rental revenues, and one-half of interest income should be allocable to corpus, while cost recovery expenses, one-half of interest income, and fiduciary administrative fees are allocable to income. If the allocation takes place, Shirley will receive how much for the year?
Answer:
a. $165,000
b. -$29,500
Explanation:
a. If the allocation takes place, Shirley's income will include both the interest and rent incomes as well as the capital gains:
= Interest income + Rent income + Capital gain income
= 25,000 + 100,000 + 40,000
= $165,000
b. If the allocation happens according to what Betty suggests, Shirley would receive:
= Interest income / 2 - Cost of recovery expenses - Fiduciary admin fees
= 25,000 / 2 - 35,000 - 7,000
= -$29,500
The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find ______.
Answer:
overhead applied to the job.
Explanation:
The formula to determine the predetermined overhead rate is given below:
Predetermined overhead rate is
= Estimated manufacturing overhead ÷ estimated activity level
Now when the predetermined overhead rate calculated after that we multiplied the rate with the actual allocation base in order to determine the applied overhead to the job
Chilly Moose Fruit Producer has a total asset turnover ratio of 3.50x, net annual sales of $40 million, and operating expenses of $18 million (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $2.50 million on which it pays a 11% interest rate.
To analyze a company's financial leverage situation, you need to measure the firm's debt management ratios. Based on the preceding information, what are the values for Chilly Moose Fruit's debt management ratios?
Ratio Value
Debt ratio
Times-interest-earned ratio
The US tax structure influences a firm's willingness to finance with debt. The tax structure more debt.
Answer:
Total Assets Turnover = Sales/Total Assets
Total Assets = Sales / Total Assets Turnover
Total Assets = 40 / 3.50
Total Assets = 11.43
Debt Ratio = Debt / Total Assets
Debt Ratio = 2.50/11.43
Debt Ratio = 0.2188
Debt Ratio = 0.22
EBIT = Sales - Operating Expenses
EBIT = 40 - 18
EBIT = $22
Interest = $2.50*11%
Interest = 0.275
EBIT/Interest = $22/0.0.275
EBIT/Interest = $800
The US tax structure influences a firm's willingness to finance with debt. The tax structure encourages more debt.
Question 2
• The number of electrical outages in a city varies from day to day. Assume that
the number of electrical outages («) in the city has the following probability
distribution
f)
0
0.8
0.15
2
3
0.01
و مرا به دو
A) The mean for the number of electrical outages is
B) The standard deviation for the number of electrical outages is
Answer:
The answer is below
Explanation:
Probability distribution are statistical function that shows all the possible outcomes of a random variable within a given range of values.
a) The mean ([tex]\bar x[/tex]) of a probability distribution of a discrete random variable is:
[tex]\bar x=\Sigma\ [xP(x)][/tex] = (0 * 0.8) + (1 * 0.15) + (2 * 0.04) + (3 * 0.01) = 0.26
b) The standard deviation (σ) of a probability distribution of a discrete random variable is:
[tex]\sigma=\sqrt{ \Sigma\ [(x-\bar x)^2*P(x)]}\\\\\sigma=\sqrt{(0-0.26)^2*0.8+(1-0.26)^2*0.15+(2-0.26)^2*0.04+(3-0.26)^2*0.01} \\\\\sigma=0.577[/tex]
Mighty Safe Fire Alarm is currently buying 62,000 motherboards from MotherBoard, Inc. at a price of $66 per board. Mighty Safe is considering making its own motherboards. The costs to make the motherboards are as follows: direct materials, $32 per unit; direct labor, $12 per unit; and variable factory overhead, $15 per unit. Fixed costs for the plant would increase by $87,000. Which option should be selected and why
Answer:
d) Make, Increase in profits $434,000
Explanation:
Differential analysis
Make Buy
Direct material (62000I*32) $1,984,000
Direct labor (62000*12) $744,000
Variable overhead (62000*15) $930,000
Purchase cost (62000*66) $4,092,000
Total relevant cost $3,658,000 $4,092,000
So, the Company Should make because the cost is lower. Increase in profits $434,000 ($,092,000-$3,658,000)
Chris and Jane have recently financed the purchase of a new home. They have signed a mortgage note in the amount of $250,000 with a fixed interest rate of 6.25% over 30 years. What would have been the difference, if any, in their monthly payment if they had signed this same note for only a 15-year period
Answer:
Chris and Jane
The difference in their monthly payment if they had signed this same note for only a 15-year period is:
= $8,346.57.
Explanation:
Mortgage Note Payable = $250,000
Fixed interest rate = 6.25%
Period of the note = 30 years or 15 years
Difference in monthly payment:
30-year period = $9,022.96
15-year period = $17,369.53
Difference = $8,346.57
b) The computations show that Chris and Jane pay more per month on a 15-year period mortgage than on a 30-year period mortgage. However, the total interest is more with a 30-year period than with a 15-year period. This shows that interest expense increases more with longer periods of debt.
From an online financial calculator:
N (# of periods) 30
I/Y (Interest per year) 6.25
PV (Present Value) 250000
FV (Future Value) 0
Results
PMT = $9,022.96
Sum of all periodic payments = $270,688.83
Total Interest = $20,688.83
N (# of periods) 15
I/Y (Interest per year) 6.25
PV (Present Value) 250000
FV (Future Value) 0
Results
PMT = $17,369.53
Sum of all periodic payments = $260,542.92
Total Interest = $10,542.92
Cullumber Enterprises has total current assets of $345,002 and fixed assets of $466,306. The company also has long-term debt of $287,400, $100,000 in its common stock account, and retained earnings of $187,570. What is the value of its total current liabilities
Answer: $236,338
Explanation:
The accounting equation is:
Assets = Equity + Liabilities
Assets = Fixed assets + Current Assets
Equity = Common stock + Retained earnings
Fixed assets + Current Assets = Common stock + Retained earnings + Long term debt + Current liabilities
466,306 + 345,002 = 100,000 + 187,570 + 287,400 + Current liabilities
811,308 = 574,970 + Current liabilties
Current liabilities = 811,308 - 574,970
= $236,338