Answer:
Debit Petty Cash $250; credit Cash $250
Explanation:
Based on the information given we were told that the Company establishes the amount of $250 as a petty cash fund on September 1 which means that The journal entry to record the establishment of the fund on September 1 is:
Debit Petty Cash $250
Credit Cash $250
The management of Dakota Corporation is considering the purchase of a new machine costing $420,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability of this investment: YearIncome from OperationsNet Cash Flow 1$100,000 $180,000 240,000 120,000 320,000 100,000 410,000 90,000 510,000 90,000 The present value index for this investment is a.1.14 b.1.45 c.0.70 d.1.08
Answer:
d. 1.08
Explanation:
The computation of the present value index is as follows
The Present value Index is
= Total Present Value of Net cash Inflows ÷ Investment
= $455,200 ÷ $420,000
= 1.08
The total present value would be
Year Net Cash Flow Present Value factor Present Value
1 $1,80,000 0.909 $1,63,620
2 $1,20,000 0.826 $99,120
3 $1,00,000 0.751 $75,100
4 $90,000 0.683 $61,470
5 $90,000 0.621 $55,890
Total Present Value of Net cash Inflows $4,55,200
Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which will affect the actual cost of asset being sold for the buyer and the seller.Consider this case:Purple Turtle Group buys most of its raw materials from a single supplier. This supplier sells to Purple Turtle on terms of 4/10, net 60. The cost per period of the trade credit extended to Purple Turtle, rounded to two decimal places, is:______
Answer:
Purple Turtle Group
The cost per period of the trade credit extended to Purple Turtle, rounded to two decimal places, is:______
30%
Explanation:
a) Data and Calculations:
Credit terms = 4/10, net 60
The credit terms imply that the customer allows Purple Turtle Group 4% if it pays within 10 days, and the maximum period of the credit is 60 days.
Computing the difference between discount period and credit period = 60 - 10 = 50 days
Dividing number of days in a year by the above difference = 360/50 = 7.2
7.2 will be used to annualized the discount rate below.
Computing the difference between discount rate and 100% = 96%
Therefore, interest rate offered to customers = 4%/96% = 0.0417
The effective interest rate = 7.2 * 0.0417 = 0.30 = 30%
While ________ are things a firm has to work with, such as equipment, facilities, raw materials, employees, and cash, _____ are things a firm can do, such as deliver good customer service or develop innovative products to create value.
Answer:
resources; capabilities.
Explanation:
While resources are things a firm has to work with, such as equipment, facilities, raw materials, employees, and cash, capabilities are things a firm can do, such as deliver good customer service or develop innovative products to create value.
Generally, in order to be able to manufacture goods or provide services that meet the needs of various customers (end users), all companies or industries have to make use of resources. These resources are either sourced for on a regular basis or gotten at the inception of the business.
Also, the capabilities of a business firm or company is its ability to provide finished goods and services that meet the requirements or needs of the end users (consumers), as well as effectively solve unique problems in the world.
Assume that you are an intern with the Brayton Company, and you have collected the following data: The yield on the company's outstanding bonds is 7.75%; its tax rate is 40% and bond flotation cost is immaterial. The expected dividend on the company's common stock to be paid one year form today is $0.65 a share; the dividend is expected to grow at a constant rate of 6.00% a year; the price of the stock is $15.00 per share; the flotation cost for selling new shares is F
Answer: 8.04%
Explanation:
First find the after-tax cost of debt;
= 7.75% * ( 1 - 40%)
= 4.65%
Then Expected return on equity;
= (Next dividend / (Price * (1 - F)) ) + g
= (0.65 / (15 * (1 - 10%)) ) + 6%
= 10.81%
WACC = (Weight of debt * cost of debt) + (weight of equity * cost of equity or expected return)
= (0.45 * 4.65%) + (0.55 * 10.81%)
= 8.04%
The manufacturing overhead budget at Rosco Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2500 direct labor-hours will be required in January. The variable overhead rate is $5 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,010 per month, which includes depreciation of $3750. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Answer:
the cash disbursements for manufacturing overhead on the manufacturing overhead budget should be $51,760
Explanation:
The computation of the cash disbursements for manufacturing overhead is as follows
= company's budgeted fixed manufacturing overhead - depreciation + variable manufacturing overhead
= 2,500 direct labor hours × $5 - $3,750 + $43,010
= $12,500 + $39,260
= $51,760
Hence, the cash disbursements for manufacturing overhead on the manufacturing overhead budget should be $51,760
City Street Fund has a portfolio of $450 million and liabilities of $10 million. a. If there are 44 million shares outstanding, what is the net asset value
Answer:
10
Explanation:
City street fund has a portfolio value of $450 million
Liabilities is $10 million
Outstanding shares is 44 million
Therefore the net asset value can be calculated as follows
Portfolio value-liabilities/no of shares outstanding
= 450 million-10million/44 million
= 440 million/44 million
= 10
Hence the net asset value is 10
Which statements about scholarships are true? Select all that apply.
A student could receive a scholarship based on financial need.
Some scholarships require the student to pursue a specific field of study.
Scholarship money must be paid back after graduation.
Scholarships are considered gifts and do not need to be paid back.
All scholarships are based solely on academic achievement.
Answer:
A student could receive a scholarship based on financial need.
Some scholarships require the student to pursue a specific field of study.
Scholarships are considered gifts and do not need to be paid back.
Explanation:
Statements that are true about scholarships are
student could receive a scholarship based on financial needsome scholarships require the student to pursue a specific field of studyscholarships are considered gifts and do not need to be paid back.What is scholarships?An amount of money given by a school, college, university, or other organization to pay for the studies of a person with great ability but little finance."
Different types of scholarships are need based scholarships, merit based scholarships, athletics based scholarships and many more
Applying for economic scholarships based on need is quite common. These types of funds are only offered to those who can show some financial hardship.
The overall dollar amount that they make or that they have access to isn’t much of a concern.
There are several academic scholarships out there for those who've obtained stellar grades at school. If you believe you stand out from the crowd, you can apply for a merit based scholarship to colleges who are open to it.
Sports scholarships are an excellent way of seeking out financial aid for higher studies as there are fewer applicants for these scholarships as compared to other scholarships.
What are the Benefits of Getting a Scholarship for students?Following benefits are
Saves you from debtimproves performanceGives you a career advantage.Hence, option A,B and D are the correct answer
To learn more about scholarship here
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Financial intermediaries are A. the same as financial markets. B. individuals who make profits by buying a stock low and selling it high. C. a more general name for financial assets such as stocks, bonds, and checking accounts. D. financial institutions through which savers can indirectly provide funds to borrowers.
Answer:
D. financial institutions through which savers can indirectly provide funds to borrowers.
Explanation:
Financial intermediaries are financial institutions through which savers can indirectly provide funds to borrowers.
Some examples of financial intermediaries include banks, unit trust firms, building societies etc.
This ultimately implies that, they are the middle men the lenders and borrowers in a financial transaction.
Which of the following is characteristic of a traditional economy?
0 They have a high standard of living.
0 Children tend to have the same job as their parents did.
0 Communities tend to be fast growing.
0 There are usually based on light industrial production.
Answer:
Children tend to have the same job as their parents did.
Explanation: hope this helps!
A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $31,500 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $900. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
Answer: Please see answer in explanation column
Explanation:
Account receivables for uncollectibles= $31,500
Allowance for Doubtful Accounts = debit balance of $900
Adjusting entry for bad debts expense =Account receivables + debit balance of $900
= $31,500 + 900
$32,400
Adjusting entry for the record of bad debts expense
Accounts titles Debit Credit
Bad debt expenses $ 32,400
To Allowance for doubtful accounts $ 32,400
The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts. The budgeted accounts receivable balance on May 31 would be:
Answer:
$242,000
Explanation:
Calculation for what The budgeted accounts receivable balance on May 31 would be
Accounts Receivable
Debit side
April 320,000
May 300,000
Total $620,000
Credit side
April 96,000 (30% x 320,000)
April 192,000 (60% x 320,000)
May 90,000 (30% x 300,000)
Total=$378,000
The budgeted accounts receivable balance=$620,000-$378,000
The budgeted accounts receivable balance=$242,000
Therefore The budgeted accounts receivable balance on May 31 would be $242,000
Commercial banks create money throughmaking loans. facilitating borrowing from the Federal Reserve to the public. printing treasury notes. reducing risk in the economy.
Answer:
making loans
Explanation:
Commercial bank is the bank where the most of the people do their banking. Here the money is to be provided and the interest is also earned from such loans like mortgage, auto loans, business loans, personal loans, etc
Therefore as per the given situation, the commercial bank would earned by the money by providing the loans or making the loans
Hence, the first option is correct
Suppose that Ava withdraws $300 from her savings account at Second Bank. The reserve requirement facing Second Bank is 10%. Assume the bank does not wish to hold any excess reserves of new deposits. Use this information to complete the balance sheet below to show how Second Bank's assets and liabilities change when Ava withdraws the $300 from the bank. Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. A Simple Bank Balance Sheet Assets Liabilities Change in Reserves: $ Change in Deposits: $ Change in Loans: $
Answer:
As a result of withdrawal of $300 from the saving account. The decrease in the required reserve = 300 * 10% = $30. So, Change in reserve = -$30.
Decrease in loans (since there is no excess reserve) = $300 - $30 = $270
So, change in loans = -$270
Decrease in deposits = $300 (Because it is withdrawn). So, change in deposit = -$300
Balance Sheet
Assets Liabilities
Change in required reserve = -$30 | Change in deposit = -$300
Change in loan = -$270
Total Change -$300 -$300
The vice president of operations of Free Ride Bike Company is evaluating the performance of two divisions organized as investment centers.Invested assets and condensed income statement data for the past year for each division are as follows: Road bike division Mountain bike divisionSales $1,728,000 $1,760,000Cost of goods sold $1,380,000 $1,400,000Operating expenses $175,200 $236,800Invested assets $1,440,000 $800,0001) Prepare condensed divisional income statements for the year ended December 31, 2014, assuming that there were no service department charges.2) Using the DuPont formula for rate of return on investment, determine the profit margin, investment turnover, and rate of return on investment for each division.3) If management's minimum acceptable rate of return is 10%, determine the residual income for each division.4) Discuss the evaluation of the two divisions, using the performance measures determined in parts (1), (2), and (3).
Answer:
Free Ride Bike Company
1. Condensed Divisional Income Statements for the year ended December 31, 2014:
1. Road bike division Mountain bike division Total
Sales $1,728,000 $1,760,000 $3,488,000
Cost of goods sold $1,380,000 $1,400,000 $2,780,000
Operating expenses $175,200 $236,800 $412,000
Net Income $172,800 $123,200 $296,000
2. Du Pont ROI = Return on sales * Asset Turnover
Road bike division Mountain bike division
= 1.2 * 10% = 12% 2.2 * 7% = 15.4%
3. Residual income
Road bike division Mountain bike division Residual income $28,800 $43,200
4. Evaluation of the two divisions, using the performance measures determined in parts (1), (2), and (3):
The Road bike division outperformed the Mountain bike division when we evaluate their performances based on the Return on Sales or Net Income margin. However, using the DuPont formula on the return on investment and residual income parameters, one understands that the Mountain bike division outperformed the Road bike division. These show that performance evaluation should not be based on one measure. Using the different performance evaluation measures yield clearer pictures of divisional performance.
Explanation:
a) Data and Calculations:
Road bike division Mountain bike division Total
Sales $1,728,000 $1,760,000 $3,488,000
Cost of goods sold $1,380,000 $1,400,000 $2,780,000
Operating expenses $175,200 $236,800 $412,000
Net Income $172,800 $123,200 $296,000
Return on sales 10% 7% 8.5%
Invested assets $1,440,000 $800,000 $2,240,000
Asset Turnover 1.2($1,728,000/$1,440,00) 2.2($1,760,000/$800,000)
Du Pont ROI = Return on sales * Asset Turnover
= 1.2 * 10% = 12% 2.2 * 7% = 15.4%
b) Residual income
Road bike division Mountain bike division Total
Net Income $172,800 $123,200 $296,000
Minimum rate of return 10% 10% 10%
Dollar minimum return 144,000 $80,000 224,000
Residual income $28,800 $43,200 $72,000
Misty Inc. launches a new range of perfumes for men and women. The probability of high consumer demand for the product is 0.6 and low consumer demand is 0.4. The probability of a favorable survey response given high consumer demand is 0.9 and the probability of a favorable survey response given low consumer demand is 0.2. What is the likelihood for high demand knowing that the market report is favorable
Answer:
87%
Explanation:
The computation of the likelihood for high demand is as follows:
Given that
The high consumer demand probability = P(H) = 0.6
The low consumer demand probablity = P(L) = 0.2
The Probability of favorable survey response given high consumer demand = P(F ÷ H) = 0.9
And,
Probability of favorable survey response given low consumer demand = P(F ÷ L) = 0.2
Now, determine the probability of high demand that the market report is favorable = P(H ÷ F)
P(H ÷ F) = (P(F ÷ H) × P(H)) ÷ (P(F ÷ H) × P(H)) + (P(F ÷ L) × P(L))
= ((0.9) × (0.6)) ÷ ((0.9 × 0.6) + (0.2 × 0.4))
= 0.87096
= 0.87096 × 100
= 87%
Glover Co. returned defective goods costing $5,000 to Mal Company on April 19, for credit. Glover had purchased the goods on April 10, on credit, terms 3/10, n/30. The entry by Glover Co. on April 19, in receiving full credit is:
Answer and Explanation:
The journal entry is as follows;
Account payable Dr $5,000
To Inventory $5,000
(being the entry recorded for receiving the full credit)
Here the account payable is debited as it decreased the liabilities and credited the inventory as it also decreased the assets
Hence, the same is to be considered
The following information is for Tide Corporation:
($ thousands) 2017 2016
Net sales $801,810 $453,000
Cost of goods sold 392,887 134,088
Determine the 2016 and 2017 trend percents for net sales using 2016 as the base year.
Answer:
2016 trend for Net sales;
= 2016 net sales/ 2016 net sales * 100
= 453,000/453,000 * 100
= 100%
2017 trend percent for Net sales
= 2017 net sales / 2016 net sales * 100
= 801,810/453,000 * 100
= 177%
Pug Photoshop sold $2,900 in gift cards on a special promotion on October 15, 2021, and sold $4,350 in gift cards on another special promotion on November 15, 2021. Of the cards sold in October, $290 were redeemed in October, $725 in November, and $870 in December. Of the gift cards sold in November, $435 were redeemed in November and $1,015 were redeemed in December. Pug views the probability of redemption of a gift card as remote if the card has not been redeemed within two months. At 12/31/2021, Pug would show a deferred revenue account for the gift cards with a balance of: Multiple Choice $3,915. $2,900. $4,350. $0.
Answer:
the deferred revenue account is $2,900
Explanation:
The computation of the deferred revenue account is as follows;
= November sales - redemption of November and December month
= $4,350 - $435 - $1,015
= $2,900
Hence the deferred revenue account is $2,900
It could be come after applying the above formula
Therefore the correct option is 2nd
When a bottleneck occurs in a process used in the production of multiple products, the company must determine the contribution margin for each product and give priority to the product that has the lowest contribution margin per bottleneck hour.
a. True
b. False
Answer:
b. False
Explanation:
In project management or in production processes, a bottle neck is a process where the limited capacity of the process reduces its capacity of the whole chain process. The results of having bottleneck in a process are supply overstock, stalls in production, pressure from customers, etc.
When bottleneck occurs in the process used in production of multiple products, the company should determine contribution margin for each of the product and then priority should be given to that product that contributes to the maximum contribution margin per bottleneck hour.
The 2019 Form 10-K of Oracle Corporation, for the May 31, 2019 year-end, included the following information relating to their allowance for doubtful accounts: Balance in allowance at the beginning of the year $370 million, accounts written off during the year of $188 million, balance in allowance at the end of the year $371 million. What did Oracle Corporation report as bad debt expense for the year
Answer: $189
Explanation:
The amount that Oracle Corporation report as bad debt expense for the year will be calculated as:
Balance in allowance at the end of the year = $371
Add: Accounts written off during the year = $188
Less: Balance in allowance at the beginning of the year = ($370)
Bad debt = $189
There may be a maximum balance requirement for a savings account.
True
False
Answer:
true
Explanation:
For example, if a bank account has a $100 minimum balance requirement, you want to make sure that you don't let your balance fall to $99.99 or less.
In the Sheffield Corp., indirect labor is budgeted for $108000 and factory supervision is budgeted for $36000 at normal capacity of 160000 direct labor hours. If 180000 direct labor hours are worked, flexible budget total for these costs is:_______
a. $157500.
b. $144000.
c. $162000.
d. $148500.
Answer:
Total flexible cost= $157,500
Explanation:
Factory supervisor is a fixed cost.
First, we need to calculate the unitary variable cost:
Unitary variable cost= 108,000/160,000= $0.675
Now, the total flexible cost for 180,000 hours:
Total flexible cost= 0.675*180,000 + 36,000
Total flexible cost= $157,500
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 house loans issued to customer in the early 2000. These housing loan were designed for borrowers with impaired credit history or with no credit history at all. A majority of borrowers who benefited from subprime loans were those with low credit scores would not allow them to get a conventional mortgage.
Everything went well until the 2006 when house price began to drop. At the same period , there was a rise in interest rates in the market. Due to a decline in house price, borrowers could not use their home equity to finance other interests payments and other bills.
Soon, their homes were worth much less than their mortgage balances. They could not sell the house or get refinancing operation using home's equity. the high interest rates were making matters worse. Customers would soon start defaulting. In time, customers realized their homes were less than what they paid for. The customers went to financial institutions demanding a refund for insurance money. The decline in house prices and demand for insurance caused a financial crises brought the US.
Dextra Computing sells merchandise for $16,000 cash on September 30 (cost of merchandise is $11,200). Dextra collects 9% sales tax. Record the entry for the $16,000 sale and its sales tax. Also record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.View transaction list Journal entry worksheet < 1 2 3 >Record the cash sales and 7% sales tax. Note: Enter debits before credits. Date General Journal Debit Credit Sep 30 Record entry Clear entry View general journal
Answer:
1. Dr Cash $17,440
Cr Sales $16,000
Cr Sales Taxes Payable $1,440
2. Dr Cost of Goods Sold $11,200
Cr Merchandise Inventory $11,200
3. Dr Sales Taxes Payable $1,440
Cr Cash $1,440
Explanation:
1. Preparation of the journal entry to Record the cash sale and 9% sales tax
Dr Cash $17,440
(16,000 + 1,440)
Cr Sales $16,000
Cr Sales Taxes Payable $1,440
(16,000 x 9%)
2. Preparation of the journal entry to Record the cost of September 30th sales
Dr Cost of Goods Sold $11,200
Cr Merchandise Inventory $11,200
3. Preparation of the journal entry to Record the entry that shows Dextra sending the sales tax on this sale to the government on October 15
Dr Sales Taxes Payable $1,440
Cr Cash $1,440
(16,000 x 9%)
A company should develop its marketing strategy and then determine the wants and needs of its customers.
False
True
Answer:
True
Explanation:
This is true as by doing this you will be able to understand what is in demand in order to gain loyal customers for the business' growth and fill a gap in the market industry.
Which of the following is an example of a disruptive innovation?
A. Use of smartphones with Internet access replacing use of
landlines
B. cruise line adding more destinations to their itineraries
C. Using different colored materials to create a line of shoes
D. An airline company purchasing a new jet
Answer: B
Explanation:
tell me if i'm wrong or right please! i rlly think its b tho
A: use of smartphones with internet access replacing use of landlines.
A regular checking account commonly earns interest true or false
Answer: False
Explanation: Traditionally, checking accounts are not interest-bearing accounts as savings accounts are, as they're designed for short-term cash that you'll spend soon. Savings accounts are better-known for earning interest, but these accounts ordinarily limit how often you can make certain withdrawals from the account.
Hope this helps! Brainlist?
Multiple Choice Question 68 On January 1, 2020, Bonita Industries issued $5400000, 10-year, 4% bonds at 102. Interest is payable annually on January 1. The journal entry to record this transaction on January 1, 2020 is
Answer and Explanation:
The journal entry is shown below:
Cash ($5,400,000 × 102%) $5,508,000
To Bonds Payable $5,400,000
To Premium on Bonds Payable $108,000
(To record the issuance of the bond payable)
In the above journal entry, the cash is debited as it increased the assets and credited the bond payable and premium on bond payable as it increased the liabilities
Find an example of a large project that took more than a year to complete, preferably one near where you live. Describe some of the planning work completed for the project as part of project time and cost management. Summarize your findings
air transportation results in lower inventory holding costs.” True or false?
Answer:
I think its false