Answers
Answer:
THE OTS
Explanation:
they regulate markets that are financial
Answer:
The right answer is the D. The OTS
Explanation:
I have put the FAA but it was wrong so they show me the right answer which was d. The OTS.
Hope this was helpful!
Related Questions
This isn’t really a question but how was your day & what do you look forward to this year?
(Marking first answer brainlist if only the have a 2-3 sentence)
Answers
Answer:
My day was pretty good, I just did schoolwork and had soccer practice. This year Im really looking forward to Christmas because I have a big list and Christmas is just my favorite holiday. But how was your day?
Explanation:
Ryan Terlecki organized a new Internet company, CapUniverse, Inc. The company specializes in baseball-type caps with logos printed on them. Ryan, who is never without a cap, believes that his target market is college and high school students. You have been hired to record the transactions occurring in the first month of operations.
a. Issued 2,300 shares of $0.01 par value common stock to investors for cash at $23 per share.
b. Borrowed $61,000 from the bank to provide additional funding to begin operations; the note is due in two years.
c. Paid $2,200 cash for rent of a warehouse: $1,100 for the current month’s rent and another $1,100 for next month’s rent.
d. Paid $2,160 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense).
e. Purchased furniture and fixtures for the warehouse for $20,000, paying $3,100 cash and the rest on account.The amount is due within 30 days.
f. Purchased for $3,800 cash The University of Pennsylvania, Notre Dame, The University of Texas at Austin, The Ohio State University, and Michigan State University baseball caps as inventory to sell online.
g. Placed advertisements on Google for a total of $330 cash; the ads were run immediately.
h. Sold caps totaling $1,900, half of which was charged on account.
i. The cost of the caps sold was $1,100. (Hint: Make two entries.)
j. Made full payment for the furniture and fixtures purchased on account in (e).
k. Received $210 from a customer on account.
Required:
For each of the transactions, prepare journal entries. Be sure to categorize each account as an asset (A), liability (L). stockholders' equity (SE). revenue (R), or expense (E). Note that transaction(h). will require two entries, one for revenue and one for the related expense.
Answers
Answer:
a. Issued 2,300 shares of $0.01 par value common stock to investors for cash at $23 per share.
Dr Cash (A) 52,900
Cr Common stock (SE) 23
Cr Additional paid in capital (SE) 52,877
b. Borrowed $61,000 from the bank to provide additional funding to begin operations; the note is due in two years.
Dr Cash (A) 61,000
Cr Notes payable (L) 61,000
c. Paid $2,200 cash for rent of a warehouse: $1,100 for the current month’s rent and another $1,100 for next month’s rent.
Dr Rent expense (E) 1,100
Dr Prepaid rent (A) 1,100
Cr Cash (A) 2,200
d. Paid $2,160 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense).
Dr Prepaid insurance (A) 2,160
Cr Cash (A) 2,160
e. Purchased furniture and fixtures for the warehouse for $20,000, paying $3,100 cash and the rest on account. The amount is due within 30 days.
Dr Furniture and fixtures (A) 20,000
Cr Cash (A) 3,100
Cr Accounts payable (L) 16,900
f. Purchased for $3,800 cash The University of Pennsylvania, Notre Dame, The University of Texas at Austin, The Ohio State University, and Michigan State University baseball caps as inventory to sell online.
Dr Merchandise inventory (A) 3,800
Cr Cash (A) 3,800
g. Placed advertisements on Google for a total of $330 cash; the ads were run immediately.
Dr Advertising expense (E) 330
Cr Cash (A) 330
h. Sold caps totaling $1,900, half of which was charged on account.
i. The cost of the caps sold was $1,100. (Hint: Make two entries.)
Dr Accounts receivable (A) 1,900
Cr Sales revenue (R) 1,900
Dr Cost of goods sold (E) 1,100
Cr Merchandise inventory (A) 1,100
j. Made full payment for the furniture and fixtures purchased on account in (e).
Dr Accounts payable (L) 16,900
Cr Cash (A) 16,900
k. Received $210 from a customer on account.
Dr Cash (A) 210
Cr Accounts receivable (A) 210
A review of the ledger of Wildhorse Company at December 31, 2020, produces the following data pertaining to the preparation of annual adjusting entries.
1. Salaries and Wages Payable $0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive $750 each per week, and three employees earn $480 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December.
2. Unearned Rent Revenue $400,410. The company began subleasing office space in its new building on November 1. Each tenant is required to make a $5,010 security deposit that is not refundable until occupancy is terminated. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease.
Date Term (in months) Monthly Rent Number of Leases
Nov. 1 6 $6,670 5
Dec. 1 6 $6,060 4
Prepaid Advertising $18,000. This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as shown below.
Contract Date Amount Number of Magazine Issues
A650 1-May $8,400 12
B974 Oct. 1 9,600 24
The first advertisement runs in the month in which the contract is signed.
Notes Payable $56,200. This balance consists of a note for one year at an annual interest rate of 12%, dated June 1.
Required:
Prepare the adjusting entries at December 31, 2020.
Answers
Answer:
Salaries expense 5,190
Salaries payable 5,190
unearned rent revenue 90940 debit
rent revenue 90940 credit
advertizing expense 6,800 debit
prepaid advertising 6,800 credit
interest expense 3,934 debit
interest payable 3,934 credit
Explanation:
Salaries accrued
5 employes $750 each = 3750
3 employees $480 each = 1440
Total = 5190
Rent revenue
$6,670 per month x 5 lease x 2 months (from Nov 1st to Dec 31st) =66700
$6,060 per month x 4 lease x 1 month = 24240
total 90940
advertizing:
8,400 / 12 months x 8 months expired = 5600
9,600 / 24 months x 3 months expired = 1200
total 6,800
interest on note payable:
principal x rate x time
56,200 x 12% x 7/12 = 3,934
Your grandfather has offered you a choice of one of the three following alternatives: $6,500 now; $1,750 a year for seven years; or $27,000 at the end of seven years.
Required:
a. Assuming you could earn 10 percent annually, compute the present value of each alternative.
b. Which alternative should you choose?
1. $27,000 received at end of seven years
2. $1,750 received each year for seven years
3. $6,500 received now
c. If you could earn 11 percent annually, compute the present value of each alternative.
d. Which alternative should you choose?
1. $27,000 received at end of seven years
2. $1,750 received each year for seven years
3. $6,500 received now
Answers
Answer:
a. Present Value at 10%1. $27,000 received at end of seven years
Present Value = 27,000 / ( 1 + 10%)^7
= $13,855.27
2. $1,750 received each year for seven years
This is an annuity.
Present Value = 1,750 * Present value interest factor of annuity , 7 years , 10%
= 1,750 * 4.8684
= $8,519.70
3. $6,500 received now
It is received now so the present value is $6,500.
b. $27,000 received at end of seven years.This has the highest present value at $13,855.27
c. Present Value at 11%1. $27,000 received at end of seven years
Present Value = 27,000 / ( 1 + 11%)^7
= $13,004.78
2. $1,750 received each year for seven years
This is still an annuity.
Present Value = 1,750 * Present value interest factor of annuity , 7 years , 11%
= 1,750 * 4.7122
= $8,246.35
3. $6,500 received now
It is received now so the present value is still $6,500
d. Still $27,000 received at end of seven years .Still has the highest Present Value
Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses process costing, appear below: Materials Conversion Equivalent units in ending work in process inventory 2,160 960 Cost per equivalent unit $ 15.56 $ 5.53 A total of 20,600 units were completed and transferred to the next processing department during the period. Required: 1. Compute the cost of ending work in process inventory for materials, conversion, and in total. 2. Compute the cost of the units completed and transferred out for materials, conversion, and in total.
Answers
Answer:
(1) $33,696, $5,308.8, $39,004.8
(2) $321,360, $113,918, $435,278
Explanation:
(1) The cost of ending work in process inventory for materials, conversion and in total can be calculated as follows
Materials:
2160 × 15.6
= $33,696
Conversion:
960 × 5.53
= $5,308.8
Total:
$5,308.8 + $33,696
= $39,004.8
(2) The cost of units completed and transferred out for materials, conversion and total can be calculated as follows
Materials:
20,600 × 15.6
= $321,360
Conversion:
20,600 × 5.53
= $113,918
Total:
$20,600 × 21.13
= $435,278
Bill Buckely has split-limit 100/200/40 automobile liability insurance on his 2012 Subaru. Driving home from work in a snowstorm, he hit a Mercedes, slid into a guardrail, and knocked down a telephone pole. Damages to the Mercedes, the guardrail, and the telephone pole were $33,428, $7,422, and $12,041 respectively. How much will Bill's insurance company pay? How much will Bill be required to pay directly? Bill's insurance company will pay $nothing. (Round to the nearest dollar.) The amount Bill will be required to pay directly is $nothing. (Round to the nearest dollar.)
Answers
Answer:
Bill's insurance company will pay $40,000The amount Bill will be required to pay directly is $12,891Explanation:
A Split limit works thus;
The first figure which is 100 is the maximum amount that will be paid per one injured person.
The second figure is 200 and it is the maximum amount that will be paid out for all injured persons.
The third which is 40 is the maximum amount the insurance will pay out for property damage.
Bear in mind that all these figures are in thousands.
The damages to all the property involved is = 33,428 + 7,422 + 12,041
= $52,891
The Insurance company will therefore payout the maximum amount of $40,000.
The rest will be paid by Bill which is = 52,891 - 40,000
= $12,891
The Doak Company has projected the following quarterly sales amounts for the coming year:
Q1 $3,900
Q2 $4,700
Q3 $4,300
Q4 $3,600
Accounts receivable at the beginning of the year are $1,700.
Required:
a. The company has a 45-day collection period. Calculate cash collections in each of the four quarters.
b. The company has a 60-day collection period. Calculate cash collections in each of the four quarters.
c. The company has a 30-day collection period. Calculate cash collections in each of the four quarters.
Answers
Answer: Check attachment
Explanation:
The cash collection was calculated as:
a. (90-45)/90 = 1/2
Q1 = 1700 + (1/2 × 3900)
= 1700 + 1950
= 3650
Q2 = 1950 + (1/2 × 4700)
= 1950 + 2350
= 4300
Q3 = 2350 + (1/2 × 4300)
= 2350 + 2150
= 4500
Q4 = 2150 + (1/2 × 3600)
= 2150 + 1800
= 3950
Check the attachments for further information.
Lindsey Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 8,000 units and of Product B is 6,000 units. There are three activity cost pools, with total cost and total activity as follows: Total Activity Activity Cost Pool Total Cost Product A Product B Total Activity 1 $26,400 170 380 550 Activity 2 $54,365 950 360 1,310 Activity 3 $136,880 900 3,820 4,720 The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.) $14.64 $9.21 $6.71 $5.91
Answers
Answer:The activity-based costing cost per unit of Product A=$9.21
Explanation:
Product A Product B
Units Produced 8000 units 6000 units
Activity Cost Pool Total Cost Product A Product B Total Activity
Activity 1 $26,400 170 380 550
Activity 2 $54,365 950 360 1,310
Activity 3 $136,880 900 3,820 4,720
Activity−basedcost for Poduct A
Activity−basedcost for Activity1= total Cost/total no. of activityx activity for particular product which is product A
=26,400/550 x 170= 8160
Activity−basedcost for Activity2= total Cost/total no. of activityx activity for particular product which is product A
=54,365/1310 x 950=39,425
Activity−basedcost for Activity3= total Cost/total no. of activityx activity for particular product which is product A
=136,880/4720 x 900=26100
Total activity based cost for Product A = $8,160 + $39,425 +$26,100=$73,685
The activity-based costing cost per unit of Product A = Total activity based cost for Product A/ Units Produced for product A=$73,685/8000=$9.21
Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost a. Inventory, Beginning 300 $ 14 For the year: b. Purchase, April 11 950 12 c. Purchase, June 1 850 15 d. Sale, May 1 (sold for $42 per unit) 300 e. Sale, July 3 (sold for $42 per unit) 630 f. Operating expenses (excluding income tax expense), $18,200 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes
Answers
Answer:
Transactions Units Unit Cost
a. Inventory, Beginning 300 $ 14
b. Purchase, April 11 950 12
c. Purchase, June 1 850 15
d. Sale, May 1 (sold for $42 per unit) 300
e. Sale, July 3 (sold for $42 per unit) 630
f. Operating expenses (excluding income tax expense), $18,200
1 and 2) When you use a periodic inventory method, cost of goods available for sale and ending inventory are the same. They differ only when you use a perpetual inventory.
ending inventory = 1,170 units
Ending inventory under FIFO:
$28,350 - $11,760 = $16,590
Ending inventory under LIFO:
$28,350 - $13,710 = $14,640
Ending inventory under weighted average:
$28,350 - $12,555 = $15,795
3) total units sold = 930 units
COGS under FIFO:
(300 x $14) + (630 x $12) = $11,760
COGS under LIFO:
(850 x $15) + (80 x $12) = $13,710
COGS under weighted average:
($28,350 / 2,100) x 930 = $12,555
4) Income statement under FIFO
Sales revenue $39,060
COGS ($11,760)
Gross profit $27,300
Operating expenses ($18,200)
Operating income $9,100
Income statement under LIFO
Sales revenue $39,060
COGS ($13,710)
Gross profit $25,350
Operating expenses ($18,200)
Operating income $7,150
Income statement under weighted average
Sales revenue $39,060
COGS ($12,555)
Gross profit $26,505
Operating expenses ($18,200)
Operating income $8,305
6) FIFO minimizes operating income, therefore, minimizes income tax expense.
The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month of September. Corporate headquarters building lease $ 87,600 Cosmetics Department sales commissions--Northridge Store $ 5,230 Corporate legal office salaries $ 60,500 Store manager's salary-Northridge Store $ 17,200 Heating-Northridge Store $ 20,200 Cosmetics Department cost of sales--Northridge Store $ 37,400 Central warehouse lease cost $ 11,100 Store security-Northridge Store $ 18,900 Cosmetics Department manager's salary--Northridge Store $ 4,150 The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store? Multiple Choice $54,350 $87,600 $159,200 $46,780
Answers
Answer:
The amount of costs which is not direct costs is $159,200.
Explanation:
Total costs which are not direct
Particulars Amount
Corporate headquarters building lease $87,600
Corporate legal office salaries $60,500
Central warehouse lease cost $11,100
Total costs which are NOT direct $159,200
A tool used to aid remembering is called:
Answers
Answer:
A mnemonic
Explanation:
Correct me im wrong
Explanation:
A tool used to aid remembering is called: A mnemonic. Using the word HOMES (Huron, Ontario, Michigan, Erie, Superior) to remember the Great Lakes is an example of: ... Expression mnemonics.
Ponzi Products produced 114 chain letter kits this quarter, resulting in a total cash outlay of $11 per unit. It will sell 57 of the kits next quarter at a price of $12, and the other 57 kits in two quarters at a price of $13. It takes a full quarter for it to collect its bills from its customers. (Ignore possible sales in earlier or later quarters. )
a. Prepare an income statement for Ponzi for today and for each of the next three quarters. Ignore taxes.
b. What are the cash flows for the company today and in each of the next three quarters?
c. What is Ponzi
Answers
Answer:
A Ponzi scheme believe it or not is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. The scheme leads victims to believe that profits are coming from product sales or other means, and they remain unaware that other investors are the source of funds. A Ponzi scheme, such as Bitconnect can maintain the illusion of a sustainable business as long as new investors contribute new funds, and as long as most of the investors do not demand full repayment and still believe in the non-existent assets they are purported to own.
Bitconnect really had people believing in them with people making millions but found that they could not withdraw the money when the company suddenly closed down.
Bitconnect is a great story and shows why people should always be wary.
If it looks too good it probably is.
Explanation:
Which scenario best reflects the relationship between production and demand in a recession?
O Car dealerships have minimal overstock.
Car dealerships are not restocking.
Car dealerships cannot sell their stock.
O Car dealerships cannot obtain stock.
Od
Answer
Answers
Answer:
C. Car dealerships cannot sell their stock.
Explanation:
What is one benefit of a limited liability company over a corporation
Answers
Below you are given calories and protein of 7 whey protein brands
#
Calories
Protein
1
250
25
2
287
23
3
184
28
4
263
28
5
244
28
6
191
28
7
215
30
For these data (the two variables), compute:
a) The mean, median, first quartile and third quartile.
b) Compute the range, interquartile range, variance, standard deviation and coefficient of variation.
c) Compute the z-score;
d) Compute the variance and correlation between the two variables.
e) Ensure that you comment each obtained result.
Answers
Answer:
a b e
Explanation:
hope this helps
Discuss briefly how each of the following changes would affect the natural rate of unemployment.
a. Schools operate for the full year, so no students are looking for summer work.
b. The Internet lists all the jobs available in the whole country, so it is easier for job seekers to locate potential jobs.
c. People who quit their jobs are drafted into low-wage community-service jobs.
d. In addition to unemployment insurance, the unemployed receive a bonus for finding new jobs; the bonus is greater if the job is found in the first few weeks of search and declines with the duration of search.
Answers
Answer:
a. Schools operate for the full year, so no students are looking for summer work.
This will cause that the total labor force decreases, so the natural rate of unemployment will decrease. The natural rate of unemployment includes only structural and frictional unemployment. Since no students will look for summer jobs, then frictional unemployment will decrease, therefore, total natural unemployment will decrease also.
b. The Internet lists all the jobs available in the whole country, so it is easier for job seekers to locate potential jobs.
This will help to decrease structural unemployment which will in turn decrease the natural rate of unemployment. Structural unemployment happens when an unemployed individual cannot find a job that fits his/her skills. Internet job postings will make it easier for unemployed people to find jobs that match their skills.
c. People who quit their jobs are drafted into low-wage community-service jobs.
This should reduce frictional unemployment (which reduces the natural rate of unemployment), since frictional unemployment is made up of people that quit their jobs in order to search a better job or are looking for their first job ever. If people realize that quitting their current jobs will result in them being drafted into low wage jobs, less people will quit their jobs. This doesn't mean that they will stop searching for a better, it means that they will continue searching for a better while still employed.
d. In addition to unemployment insurance, the unemployed receive a bonus for finding new jobs; the bonus is greater if the job is found in the first few weeks of search and declines with the duration of search.
This should motivate people to get any available job as quick as possible. Sometimes a person that is fired will not accept possible jobs because they consider that they can get a better job, so they decide to wait until they get the job that they want. If a bonus is given, a lot of people will be motivated to accept any new job that they can find as long as it allows them to collect the bonus. This doesn't mean that they will quit looking for their dram job or the job that they deserve, it means that they will be working while doing so. This should decrease the natural rate of unemployment.
The Reynolds Corporation buys from its suppliers on terms of 2/12, net 45. Reynolds has not been utilizing the discounts offered and has been taking 45 days to pay its bills. Ms. Duke, Reynolds Corporation's vice president, has suggested that the company begin to take the discounts offered. Duke proposes that the company borrow from its bank at a stated rate of 16 percent. The bank requires a 11 percent compensating balance on these loans. Current account balances would not be available to meet any of this compensating balance requirement.
Required:
a. Calculate the cost of not taking a cash discount.
b. Calculate the Effective rate of interest if the company borrow from the bank.
Answers
Answer:
A. 22.56%
B. 17.97%
Explanation:
a. Calculation for the cost of not taking a cash discount.
Cost of not taking cash discount = ( 2% / 98% )* ( 365 / (45 - 12) )
Cost of not taking cash discount=0.0204*365/33
Cost of not taking cash discount=7.446/33
Cost of not taking cash discount=0.2256*100
Cost of not taking cash discount= 22.56%
Therefore the Cost of not taking cash discount will be 22.56%
b. Calculation for the rate of interest if the company borrow from the bank.
Annual rate of interest = 16% / (1- 11%)
Annual rate of interest = 0.16/0.89
Annual rate of interest = 0.1797*100
Annual rate of interest = 17.97%
Therefore the rate of interest if the company borrow from the bank will be 17.97%
Exercise 6A-1 High-Low Method [LO6-10] The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January 1,736 $ 4,127 February 1,904 $ 4,207 March 2,356 $ 5,083 April 960 $ 2,857 May 360 $ 1,871 June 744 $ 2,696 July 2,108 $ 4,670 August 2,406 $ 5,148 September 840 $ 2,691 October 124 $ 1,588 November 720 $ 2,454 December 1,364 $ 3,529 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) 2. What other factors in addition to occupancy-days are likely to affect the variation in electrical costs from month to month
Answers
Answer:
1) variable cost = $1.56 per day
fixed costs = $1,395 per month
2) another aspect that increases or decreases electrical consumption is the weather. During very hot days, more people use the air conditioner, which increases electricity costs. Very cold weather will result in a similar increase in electric consumption.
Explanation:
Month Occupancy-Days Electrical Costs
January 1,736 $ 4,127
February 1,904 $ 4,207
March 2,356 $ 5,083
April 960 $ 2,857
May 360 $ 1,871
June 744 $ 2,696
July 2,108 $ 4,670
August 2,406 $ 5,148
September 840 $ 2,691
October 124 $ 1,588
November 720 $ 2,454
December 1,364 $ 3,529
variable cost = (highest activity cost - lowest activity cost) / (highest activity level - lowest activity level) = ($5,148 - $1,588) / (2,406 - 124) = $1.56 per day
fixed costs = $5,148 - ($1.56 x 2,406) = $1,395
Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments.
In 2021, Isaac had $653 million in sales of this type. Scheduled collections for these sales are as follows:
2021 $70 million
2022 128 million
2023 126 million
2024 156 million
2025 173 million
$653 million
Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses and additional sales in 2022 what deferred tax liability would Isaac report in its year-end 2022 balance sheet?
Answers
Answer:
$146 million
Explanation:
Calculation for the deferred tax liability that Isaac would report
Using this formula
Deferred tax liability=Total future taxable income × Tax rate
Let plug in the formula
Deferred tax liability=($653 million- $70 million) *25%
Deferred tax liability=$583 million *25%
Deferred tax liability=$145.75 million approximately $146 million
Therefore the deferred tax liability that Isaac would report will be $146 million
Gavin Jones's friend is planning to invest $ I million in a rock concert to be held I year from noW The friend figures that he will obtain $3 million revenue from his $1 million investment-unless, my goodness, it rains If it rains, he will lose his entire investment There is a 50% chance that it will rain the day of the concert Gavin suggests that he buy rain insurance He can buy one unit of insurance for $ 50, and this unit pays $1 if it rains and nothing if it does not He may pUlchase as many units llS he wishes. up to $3 million
Required:
a. What is the expected rate of return on his investment if he buys units of insurance?
b. What number of units will minimize the variance of his return? What is this minimunm value? And what is the corresponding expected rate of return?
Answers
Answer:
a. What is the expected rate of return on his investment if he buys u units of insurance?
total cost = $1,000,000 (concert cost) + $0.50u
return if it rains = $0 + $u
expected return:
doesn't rain = ($3,000,000 x 50%) = $1,500,000
rains = $0 + $u
expected rate of return = [($1,500,000 + $u) / ($1,000,000 + $0.5u)] - 1
b. What number of units will minimize the variance of his return? What is this minimum value? And what is the corresponding expected rate of return?
if you buy 3,000,000 units of u then variance is 0. Whether it rains or not, expected revenue = $3,000,000
total costs = $1 million (concert cost) + ($0.50 x 3 million units of insurance purchased) = $2,500,000
rate of return = ($3,000,000 / $2,500,000) - 1 = 20%
Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [The following information applies to the questions displayed below.] In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,580,000 $ 4,042,000 $ 2,175,800 Estimated costs to complete as of year-end 6,020,000 1,978,000 0 Billings during the year 2,060,000 4,562,000 3,378,000 Cash collections during the year 1,830,000 4,200,000 3,970,000 Westgate recognizes revenue over time according to percentage of completion. Problem 6-10 (Algo) Part 4 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) 2021 2022 2023 Costs incurred during the year $ 2,580,000 $ 3,830,000 $ 3,230,000 Estimated costs to complete as of year-end 6,020,000 3,130,000 0
Answers
Answer:
revenue recognized
2021 = $3,000,000 2022 = $4,700,000 2023 = $2,300,000
gross profit
2021 = $420,000 2022 = $658,000 2023 = $124,200
Explanation:
Percentage of 2021 2022 2023
completion method
Cost incurred in $0 $2,580,000 $6,622,000
previous year
+ Cost incurred $2,580,000 $4.042,000 $2,175,800
during the year
Total cost incurred $2,580,000 $6,622,000 $8,797,800
+ Estimated cost to $6,020,000 $1,978,000 $0
be incurred
Total estimated cost $8,600,000 $8,600,000 $8,797,800
to be incurred
Percentage of 30% 77% 100%
completion
Total revenue $10,000,000 $10,000,000 $10,000,000
Total revenue $3,000,000 $7,700,000 $10,000,000
recognized (% of completion x total revenue)
- Revenue recognized ($0) ($3,000,000) ($7,200,000)
in previous year
= revenue recognized $3,000,000 $4,700,000 $2,300,000
in current year
gain/loss 2021 2022 2023
Revenue $3,000,000 $4,700,000 $2,300,000
- Cost incurred ($2,580,000) ($4,042,000) ($2,175,800)
Gross profit $420,000 $658,000 $124,200
The production era describes the period of time when most things people used were made by hand.
True
False
Answers
Answer:
False
Explanation:
Simple Trade Era (Pre-Industrial Revolution) is the era where most things were hand made.
The (mass) Production Era (1860s-1920s were when products were produced in mass at low cost.
The production era does not describe a period when most things were made by hand. Hence the given statement is false.
The production era, also known as the production-oriented era, refers to a historical period in business and marketing when companies focused primarily on production efficiency and maximizing output. This era is characterized by the belief that consumers would buy whatever products were available and affordable.
During the production era, mass production techniques, such as assembly lines, were introduced to increase productivity and lower costs. The emphasis was on achieving economies of scale and reducing production costs rather than catering to specific customer needs or preferences.
The production era is followed by subsequent marketing eras, such as the sales era, marketing era, and relationship era, which shift the focus towards understanding and fulfilling customer needs and building long-term customer relationships.
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Which of the following statements is true concerning clusters? According to Porter, clusters provide barriers to the access of employees, suppliers, and specialized information. Employees from competitive firms in a cluster are not permitted to socialize with one another. Clusters are geographically dispersed companies operating within the same industry. The United States does not have any clusters; they are all located in Europe. The desire to build or upgrade a core competency is one reason why entrepreneurial and other fast-growing firms often tend to locate close to their competitors.
Answers
Answer: The desire to build or upgrade a core competency is one reason why entrepreneurial and other fast-growing firms often tend to locate close to their competitors.
Explanation:
A cluster is the concentration of industries, businesses, or suppliers, that are interrelated in a particular field.
According to Porter, clusters bring about increase the productivity, stimulate new business, drives innovation and they're vital to strategic management.
Of the options given, the answer is "The desire to build or upgrade a core competency is one reason why entrepreneurial and other fast-growing firms often tend to locate close to their competitors".
The Nite Lite Company manufactures small lamps and desk lamps. The following shows the activities per product:
Set-ups Inspections Assembly (DLH)
Small Lamps - 4,000 units 4,000 16,000 4,000
Desk Lamps - 8,000 units 16,000 8,000 24,000
Using the following information prepared by the Nite Lite Company, determine the total factory overhead rate to be charged to desk lamps.
Activity Pool Activity Base Budgeted Amount
Set-ups 20,000 $60,000
Inspections 24,000 $120,000
Assembly (DLH) 28,000 $420,000
a. $380,000
b. $184,000
c. $152,000
d. $448,000
Answers
Answer:
Total allocated overhead= $448,000
Explanation:
First, we need to calculate the predetermined overhead rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Set-ups= 60,000/20,000= $3 per setup
Inspections= 120,000/24,000= $5 per inspection
Assembly (DLH)= 420,000/28,000= $15 per direct albor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Desk Lamps:
Set-ups= 3*16,000= $48,000
Inspections= 5*8,000= $40,000
Assembly (DLH)= 15*24,000= $360,000
Total overhead= $448,000
2. Jack sold a baseball card collection for $2,500 that he bought a year ago for $2,500. He says, "At least I didn't lose any money on my investment in this baseball card." His economist friend points out that in effect he did lose money because he could have received a 3 percent return on the $2,500, which is $75, if he had deposited the money in a bank. The economist's analysis in this case incorporates the idea of: A. opportunity costs among alternatives, which is $75 here. B. opportunity costs among alternatives, which is $2575 here. C. marginal costs that exceed marginal benefits. D. marginal benefits that exceed marginal costs.
Answers
Answer:
The economist's analysis in this case incorporates the idea of:
A. opportunity costs among alternatives, which is $75 here.
Explanation:
Jack's economist friend is right that Jack lost $75, which represents a 3% return on the $2,500 if Jack had invested it in a bank deposit instead of baseball card. The opportunity cost is, therefore, this potential benefit which Jack has missed or lost because of Jack's choice of investment.
Bridgeport Corp. reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 116 $5 $ 580 12 Purchases 385 6 2,310 23 Purchases 194 7 1,358 30 Inventory 240 Calculate weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average unit cost $enter weighted-average unit cost in dollars rounded to 3 decimal places eTextbook and Media Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO Average-cost The cost of the ending inventory $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places The cost of goods sold $enter a dollar amount rounded to 0 decimal places
Answers
Answer:
First Part
Weighted-average unit cost = $6.112 (3 decimal places)
Second Part
Cost of Ending Inventory Cost of Goods Sold
a. FIFO $1,634 $2,614
b. LIFO $1,324 $2,294
c. Weighted Average $1,467 $2,781
Explanation:
First, calculate the number of units sold
Number of units sold = Units available for sale - Units in ending inventory
= (116 + 385 + 194) - 240
= 455 units
Weighted-average Method, calculates a new unit cost with every purchase of Inventory. Sales are then made at the new calculated unit cost.
Unit Cost = Total Costs ÷ Total Units
Calculate weighted-average unit cost
Unit Cost = ($ 580 + $2,310 + 1,358)/ (116 + 385 + 194)
= $6.112 (3 decimal places)
a. FIFO
FIFO stands for First In First Out
i. Cost of Ending Inventory
46 units × $6 = $276
194 units × $7 = $1,358
Total = $1,634
ii. Cost of Goods Sold
116 units × $5 = $580
339 units × $ 6 =$2,034
Total = $2,614
b. LIFO
LIFO stands for Last In First Out
i. Cost of Ending Inventory
116 units × $5 = $580
124 units × $6 = $744
Total = $1,324
ii. Cost of Goods Sold
194 units × $7 = $1,358
261 units × $ 6 = $1,566
Total = $2,294
c. Weighted Average Method
i. Cost of Ending Inventory
Ending Inventory = Units in Ending Inventory × Average Unit Cost
= 240 units × $6.112
= $1,467
ii. Cost of Goods Sold
Cost of Goods Sold = Units Sold × Average Unit Cost
= 455 units × $6.112
= $2,781
The bookkeeper for Brooks Equipment Repair made a number of errors in journalizing and posting, as described below.
For each error:
a. Indicate whether the trial balance will balance.
b. If the trial balance will not balance, indicate the amount of the difference.
c. Indicate the trial balance column that will have the larger total.
1. A credit posting of $725 to Accounts Receivable was omitted.
2. A debit posting of $950 for Prepaid Insurance was debited to Insurance Expense.
3. A collection from a customer of $190 in payment of its account owed was journalized and posted as a debit to Cash $190 and a credit to Service Revenue $190.
4. A credit posting of $545 to Property Taxes Payable was made twice.
5. A cash purchase of supplies for $520 was journalized and posted as a debit to Supplies $52 and a credit to Cash $52.
6. A debit of $526 to Advertising Expense was posted as $562.
Answers
Answer:
Please find bow and attached detailed solution.
Explanation:
a. Indicate whether the trial balance will balance
b. If the trial balance will not balance, indicate the amount of the difference
c. Indicate the trial balance column that will have the larger total.
Please see attached detailed explanation of the above questions
Which option is most likely a complementary good for a smartphone?
A. Smartphone headphones
B. Smartphone taxes
C. Smartphone factories
O D. Smartphone online reviews
SUBMIT
Answers
Answer:
A.
Explanation:
A. Smartphone headphone is the correct answer, because complementary goods are goods that sell together so, smartphone and headphones are complementary goods.
For a smartphone, the best complementary good is smartphone headphones. Therefore, Option A is correct.
What are complementary goods?Goods that are best when put together and provide complementary service to the customer that provides more comfort to the customer are termed as complementary goods. In other words, the usage of both the products will provide happiness to the customer.
In the case of smartphones, it is best when the headphones that support the smartphone are also available with it as a complementary product. From the point of view of a customer, when the headphones are available, they will be complementary to them.
Therefore, Option A is correct.
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A school district is borrowing $40,000,000 over 17 years to fund a building expansion project. The school board can borrow annually for 1 year and then MUST borrow long term (16 years) or, can borrow at a long term fixed rate for the 17 years. The school district is looking at severe budget cuts where they are considering laying off a number of personnel. The choices they are considering are to borrow for one year at 1.75% and then must borrow fixed OR they can borrow for 17 years fixed rate at 4.0%. If they borrow for one year then go fixed, they will save $900,000 in interest that year and save all the jobs. They can borrow annually for to five years then must borrow fixed for the rest of the term. . What do you do and why
Answers
Answer:
borrow for one year at 1.75% and then must borrow fixed.
Explanation:
This option appears to be more economically advantageous and would save all jobs. Consider why this is the case from the interest paid in each option:
The Interest rate paid at 1.75%:
for one year at 1.75% = $700, 000 (1.75%x40,000,000) for annually up to five years at 1.75%= $3,500,000 (1.75%x40,000,000x5 years).The Interest rate paid at 4%:
borrow fixed for 16 years at 4% = $25,600,000 (4% x 40,000,000 x 16) borrow fixed for 12 years (17-5) at 4% = $19,200,000 (4% x 40,000,000 x 1,600,000)Total:
First option = $26,300,000 plus all jobs saved
Second option = $22,700,000
Therefore, the first option is more economically advantageous.
A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 8.5%, and sells for $1,150. Interest is paid annually. (Assume a face value of $1,000 and annual coupon payments.) a. If the bond has a yield to maturity of 9.5% 1 year from now, what will its price be at that time? (Do not round intermediate calculations. Round your answer to nearest whole number.) b. What will be the rate of return on the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.) c. If the inflation rate during the year is 3%, what is the real rate of return on the bond? (Assume annual interest payments.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)
Answers
Answer:
a. Coupon payment = 8.5% of $1000 = $85
i = 9.5%
n = 9
m =$1,000
Price of the bond after one year P1 = C* [1- 1/ (1+i)^n] /i + M / (1+i)^n
P1 = $85 * [1 – 1 / (1+9.5%) ^9] /9.5% + 1000 / (1+9.5%) ^9
P1 = $499.40 + $441.85
P1 = $941.25
b. The rate of return on the bond = (Income from one coupon payment + capital appreciation)/ Initial price of the bond
The rate of return on the bond = [$85 + ($941.25 - $1,150)]/ $1,150
The rate of return on the bond = ($85 - $208.75)/ $1,150
The rate of return on the bond = - $123.75/ $1,150
The rate of return on the bond = - 0.1076
The rate of return on the bond = -10.76%
c. f the inflation rate during the year is 3%
Real rate of return = [(1+ Nominal rate of return)/ (1+ Inflation rate)]-1
Where Nominal rate of return = - 10.76%, Inflation rate = 3%
Real rate of return = [(1-10.76%)/ (1+ 3%)]-1
Real rate of return = 0.08664 -1
Real rate of return = - 0.1336
Real rate of return = -13.36%