Answer: c. Learning that has occurred informally through life experiences
Explanation: Aptitude test is used to determine a candidates level of intelligence, abilities, and skills in different areas, this test helps to discover inherent abilities of a person to perform in certain areas of task. It is widely used by top organizations during their recruitment exercise to get the best candidate for a particular position.
•Note: In undergoing an aptitude test, no previous knowledge is put into consideration.
There are various types of aptitude tests and they are adopted based on the area of skills to be discovered, a few of them includes
• Numerical test: It is used to test ones ability in calculations, figures or numbers, charts, graphs, etc.
•Verbal test: It is used to test verbal skills, ability to interpret information and get the best out of it.
•Cognitive ability test: used to determine a candidate's level of intelligence, therefore it covers so many areas.
•In-tray test is used to determine time and resource management skills
Others includes; diagrammatic test, abstract reasoning, mechanical reasoning test etc.
Aptitude tests primarily measure the cognitive abilities that intelligence tests measure. They are designed to evaluate an individual's potential to learn new skills, adapt to new situations, and solve problems, which are all aspects of cognitive abilities. The other options provided may be aspects of what aptitude tests measure, depending on the specific aptitude test.
Explanation:Aptitude tests are utilized to gauge various aspects of our cognitive capabilities. Broadly speaking, these tests are structured to measure the ability to learn or acquire a particular skill or set of skills. They provide information on an individual's potential to use the mind to solve new problems, learn from experience, and adapt to new situations.
With reference to the options provided, the most accurate choice would be (a) The cognitive abilities that intelligence tests measure. Intelligence tests and aptitude tests share a common objective, which is to measure cognitive abilities, nevertheless, they are not exactly the same. Intelligence tests, such as the WAIS-IV and WISC-V, typically measure a wider range of cognitive abilities, whereas aptitude tests are used to measure specific skills or areas of knowledge.
The other options could be aspects of what aptitude tests measure contingent on the precise aptitude test and what it was designed to evaluate. For instance, an aptitude test might evaluate learning that has occurred formally through defined learning experiences (option b), informally through life experiences (option c), or through formal structured input (option d). However, it's the cognitive abilities that are the foundational components of these learning experiences.
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Anna Preston is a senior manager in a high-technology company in the United States. She has an in-depth knowledge of her company's resources, and the ability to recognize and exploit market opportunities abroad. Her thorough understanding of how the business and people operate at the local level in international markets makes her an invaluable asset to her company. Anna is ________?
Answer: SHE IS A GLOBAL BUSINESS SAVVY
Explanation: Anna preston has adequate and knowledge driven understanding of local and international business environment which has can help to enhance the organisational growth and excellent performance.
The following information was reported by Young's Air Cargo Service for 2017: Net fixed assets (beginning of year) $ 1,860,000 Net fixed assets (end of year) 2,280,000 Net operating revenues for the year 3,230,000 Net income for the year 1,600,000 Compute the company's fixed asset turnover ratio for the year. (Round your answer to 2 decimal places.)
Answer:
1.56
Explanation:
Data provided in the question:
Net fixed assets (beginning of year) = $1,860,000
Net fixed assets (end of year) = $2,280,000
Net operating revenues for the year = $3,230,000
Net income for the year = $1,600,000
Now,
company's fixed asset turnover ratio for the year
= Net operating revenues ÷ Average total assets
Also,
Average total assets
= [Net fixed assets (beginning of year) + Net fixed assets (end of year) ] ÷ 2
= [ $1,860,000 + $2,280,000 ] ÷ 2
= $2,070,000
Therefore,
Company's fixed asset turnover ratio for the year
= $3,230,000 ÷ $2,070,000
= 1.56
Butler Corporation is considering the purchase of new equipment costing $84,000. The projected annual after-tax net income from the equipment is $3,000, after deducting $28,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 9% return on its investments. The present value of an annuity of 1 for different periods follows:
Periods 9 | Percent
1 | 0.9174
2 | 1.7591
3 | 2.5313
4 | 3.2397
What is the net present value of the machine? (closest to)
Answer:
The net present value of the machine is $5530
Explanation:
Data provided in the question:
Cost of the equipment = $84,000
Annual after-tax net income from the equipment after deducting depreciation = $3,000
Depreciation = $28,000
Useful life = 3 years
Required return on investment = 9% = 0.09
Now,
After-tax cash flow = After-tax net income + Depreciation
= $3,000 + $28,000
= $31,000
Therefore,
Net Present Value = Present value of cash flow - Investment
= ( $31,000 × PVIFA(11%, 3) ) - $84,000
= ( $31,000 × 2.5313 ) - $84,000
= $78470.3 - $84,000
= -$5529.7 ≈ - $5530
hence,
The net present value of the machine is $5530
Answer:
- $5,529.70
Explanation:
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor - initial investment
where,
The Initial investment is $84,000
And, the after tax net income would be
= Projected annual after-tax net income + depreciation expenses
= $3,000 + $28,000
= $31,000
Now the present value after applying the present value of an annuity for 3 years would be
= $31,000 × 2.5313
= $78,470.3
Now put these values to the above formula
So, the value would equal to
= $78,470.3 - $84,000
= - $5,529.70
Paney Company makes calendars. Information on cost per unit is as follows:Direct materials $1.50Direct labor 1.20Variable overhead 0.90Variable marketing expense 0.40Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000. The price per calendar is $10.
What is the contribution margin ratio?
a. 50%b. 44%c. 60%d. 40%e. 36%
Answer:
Option C : Contribution Margin Ratio is 60%
Explanation:
Contribution Margin Ratio = (Contribution per Unit ÷ Selling Price per Unit)× 100
where: Contribution per unit = Selling price per unit minus Variable Costs per unit
Per Unit
Selling Price $10.00
Less Variable Costs:
Direct Materials $(1.50)
Direct Labor $(1.20)
Variable Overhead $(0.90)
Variable Marketing $0.40
Contribution $6.00
Contribution Margin Ratio $6.00 ÷$10.00 × 100 = 60%
According to a company's unadjusted trial balance at Dec. 31, the balance in the Unearned Revenue account was $800. This balance represents receipt of four months of service received on December 1 from a customer. The monthly contract service to be provided is for the months of Dec., Jan., Feb. and March. The required adjusting entry for Dec. 31 would be:
Answer:
Explanation:
The adjusting entry is shown below:
Unearned revenue A/c Dr $200
To Service revenue A/c for $200
(Being the unearned revenue is recorded)
We simply debited the unearned revenue account and credited the service revenue account so that the correct posting can be done
The computation is shown below:
= Unearned revenue balance ÷ number of months
= $800 ÷ 4 months
= $200
Final answer:
The correct adjusting entry for December 31 for the unearned revenue is to debit the Unearned Revenue account and credit the Revenue account by $200 to recognize one month's worth of service provided in December.
Explanation:
The student's question pertains to adjusting journal entries for unearned revenue at the end of an accounting period. According to the information provided, the company received payment for services that are to be performed over four months, starting from December 1. Since the company has provided one month of service (December) by December 31, it needs to recognize this as earned revenue.
The adjusting entry required on December 31 would debit the Unearned Revenue account and credit the Revenue account to reflect that service has been provided for one month. The calculation for the adjustment would be $800 divided by 4 (total months of service), resulting in $200 of revenue earned in December.
Adjusting Entry on December 31:
Debit Unearned Revenue: $200
Credit Revenue: $200
A major bank has an application where customers can see their balances in their checking accounts, the positions in their brokerage accounts, and the mortgage loan balances. This would be an example of the following type of web attractor:_______-a. The club b. The gift shop c. The freeway intersection or portal d. The customer service center
Answer:
The correct answer is letter "D": The customer service center.
Explanation:
The customer service center is a web attractor that allows customers to self-assist in basic operations or by accessing basic data of their own. Balances, statements, payment history, and recent transactions are among the information consumers can access to in a blink of an eye thanks to this online data feed. In case a piece of information is unclear, this feed usually has direct access to reach a customer service representative for an explanation.
Martin Company is considering the introduction of a new product. To determine a selling price, the company has gathered the following information: Number of units to be produced and sold each year 19,500 Unit product cost $ 35 Projected annual selling and administrative expenses $ 56,000 Estimated investment required by the company $ 460,000 Desired return on investment (ROI) 20 % The company uses the absorption costing approach to cost-plus pricing. Required: 1. Compute the markup required to achieve the desired ROI. (Round your Required ROI answers to the nearest whole percentage (i.e, 0.1234 should be entered as 12). Round your "Markup Percentage" answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34.)) 2. Compute the selling price per unit. (Round your intermediate and final answers to 2 decimal places. g
Answer:
See below.
Explanation:
First we calculate per units costs,
Per unit product cost = $35
Per unit selling and admin cost = 56000/19500 = $2.87/unit
In order to obtain mark up that earns ROI of 20% we first calculate the ROI in $ terms and divide by the planned production. This will be the per unit profit required to earn the desired ROI.
ROI in $s = 460,000*0.20 = $92,000
ROI required per unit = 92,000/19500 = $4.71/unit
Required Gross profit = (4.71 + 2.87) = $7.58/unit (this covers costs and ROI)
The mark up then,
Selling price = Unit production cost + Required Gross profit
Selling price = 35 + 7.58 = $42.58
Mark up = Gross profit / Cost per unit
Mark up = 7.58/35 = 21.66%
Hope that helps.
The following stock transactions were completed by the executive vice president of Vinco, Inc., a publicly traded corporation: January 12, 2016 - EVP sells 100 shares @ $40 per share May 5, 2016 - EVP buys 100 shares @ $20 per share June 1, 2016 - EVP sells 100 shares @ $30 per share Which of the following statements is correct? a. EVP has a short-swing profit of $2,000. b. EVP has a short-swing profit of $1,000. c. EVP has a net loss of $1,000. d. EVP has a short-swing profit of $3,000.
Answer:
d- EVP has a short-term swing profit is $3000
Explanation:
Lets first understand what short-term swing profit is. Short-term swing profit is profit dependent upon a rule normally set by the securities & exchange commission which states that any profits made by company insiders through the purchase and sale of share/stocks within six months must be returned to the company. Company insiders are people/employees working within the entity mostly having more than 10% of company's shares or employees such as executives, directors and managers.
Now It's not clear from the question what the purchase price of the shares was when EVP sold them on January 12 2016, assuming these shares were purchased at $20, then the short-term swing profit would be $2000 as at January. Then EVP purchases 100 shares at $20 and sells them at $30 per share as at june. The additional short-term swing profit would be $1000 (i.e $30-$20=$10 per share).
Therefore the total short-term swing profit is $3000
The EVP of Vinco, Inc. has a short-swing profit of $1,000 from buying and selling the company's shares within a six month period.
Explanation:The correct answer is 'EVP has a short-swing profit of $1,000.' This is calculated from the buying and selling transactions made by the executive vice president (EVP) of Vinco, Inc. The short-swing profit refers to the amount made by an executive in a publicly-traded corporation from buying and selling the company's shares within a six-month period.
The calculation is as follows:
The EVP sold 100 shares for $40 each, making a total of $4,000 on January 12, 2016. Then, the EVP bought 100 shares for $20 each, spending a total of $2,000 on May 5, 2016. Finally, the EVP sold 100 shares for $30 each on June 1, 2016. This totals to $3,000.
So, the EVP has spent $2,000 (in buying shares) and made $7,000 (from selling shares). The short-swing profit is, therefore, the $7,000 gained from sales minus $2,000 spent on buying shares, equaling to $1,000.
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Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows:
Cost Category Standard Cost per 100 Two-Liter Bottles
Direct labor $ 2.00
Direct materials 9.10
Factory overhead 0.55
Total $11.65 B.
At the beginning of July, GBC management planned to produce 400,000 bottles. The actual number of bottles produced for July was 406,000 bottles. The actual costs for July of the current year were as follows:
Cost Category Actual Cost for the Month Ended July 31
Direct labor $ 7,540
Direct materials 35,750
Factory overhead 2,680
Total $45,970
Required:
A. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for GBC, assuming planned production.
B. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for July.
C. Interpret the budget performance report.
Answer:
See below.
Explanation:
Since the costs are per 100, to calculate total standard we multiply by 400,000/100 = 4000 and actual qty then is 4060.
For A, standard cost budget at standard prices.
Direct Labor (2*4000) = $8,000
Direct Material (9.1*4000) = $36,400
Factory Overhead (0.55*4000) = $2,200
Total = $46,600
For B, The total cost variances are as follows,
Material cost variance = (Standard Price - Actual Price) * Actual Quantity
where, Standard price = 9.1 and Actual price = (35750/4060) = $8.81
Variance = (9.1 - 8.81) * 4060 = $1177.4 Favorable
Direct labor cost variance = (Standard rate - Actual Rate) * Actual Quantity
where, Standard rate = 2 and Actual rate = (7540/4060) = $1.86
Variance = (2-1.86) * 4060 = $568.4 Favorable
Factory Overhead variance
= Standard applied - Actual applied
Variance = (0.55*4060) - 2680 = $447 Unfavorable
Net effect on total cost variances = (1177.4+568.4-447) = $1298.8 Favorable
For c)
The over all cost performance has favored the business as they ere able to lessen costs in direct labor and material department. However, the fixed costs performance has deteriorated and there may be some technical issues that the company can deal with to ensure they perform better on fixed costs. The over all performance is favorable.
The standard cost budget for July for GBC was $46,600, and the budget performance report shows favorable variances for direct labor and direct materials, and an unfavorable variance for factory overhead. Overall performance was better than budgeted due to the larger favorable variances.
Explanation:A. To prepare the July manufacturing standard cost budget for GBC, first, we need to know the per-bottle cost of direct labor, direct materials, and factory overhead. Given that for every 100 bottles the costs are $2.00, $9.10, and $0.55 respectively, we find that each bottle costs $0.02, $0.091, and $0.0055. For a planned production of 400,000 bottles, the budgeted costs are calculated by multiplying the per-bottle cost by the total number of bottles. This provides us with $8,000 for direct labor, $36,400 for direct materials, and $2200 for factory overhead, totalling up to a standard cost budget of $46,600.
B. The budget performance report for July shows the variances from the actual costs. The variances for direct labor, direct materials, and factory overhead are calculated by subtracting the budgeted cost from the actual cost. This provides us with -$460 for direct labor, -$650 for direct materials, and $480 for factory overhead. A positive variance indicates that the actual cost was higher than budgeted, while a negative variance indicates that the actual cost was lower than budgeted, indicating better than expected performance.
C. To interpret the budget performance report, we can say that direct labor and direct materials performed better than expected as their actual costs were lower than budgeted, while the factory overhead cost was higher than expected. Despite this, the overall cost was lower as the favorable variances in direct labor and direct materials were greater than the unfavorable variance in factory overhead.
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Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.25 coming 3 years from today. The dividend should grow rapidly - at a rate of 21% per year - during Years 4 and 5, but after Year 5, growth should be a constant 8% per year.
1. If the required return on Computech is 18%, what is the value of the stock today?
Answer:
$10.98
Explanation:
Dividend per year;
D1 to D2 = 0
D3 = 1.25
D4 = 1.25 (1.21) = 1.5125
D5 = 1.5125 (1.21) = 1.8301
D6 = 1.8301 (1.08) =1.9765
Find Present values of each dividend at 18% required return;
PV( D1 to D2) = 0
PV( D3) = 1.25/1.18³ = 0.7608
PV( D4) = 1.5125 / (1.18^4) = 0.7801
PV( D5) = 1.8301 / (1.18^5) = 0.8000
PV( D6 onwards) [tex]= \frac{\frac{1.9765}{(0.18-0.08)} }{1.18^{5} } \\ \\ =\frac{19.765}{2.2878}[/tex]
PV( D6 onwards) = 8.6393
Next, sum up the PVs;
= 0 + 0.7608 + 0.7801 + 0.8000 + 8.6393
= 10.98
Therefore, this stock is valued at $10.98
Terrapin Company engages in the following external transactions for November. Purchase equipment in exchange for cash of $22,400. Provide services to customers and receive cash of $6,000. Pay the current month's rent of $1,700. Purchase office supplies on account for $1,000. Pay employee salaries of $1,700 for the current month. Required: Record the transactions. Terrapin uses the following accounts: Cash, Supplies, Equipment, Accounts Payable, Service Revenue, Rent Expense, and Salaries Expense.
Answer:
Purchase equipment in exchange for cash of $22,400
Debit Equipment account $22,400
Credit Cash account $22,400
Being entries to record the purchase of equipment for cash
Provide services to customers and receive cash of $6,000
Debit Cash account $6,000
Credit Service Revenue account $6,000
Being entries to recognize revenue earned from service rendered to customer.
Pay the current month's rent of $1,700
Debit Rent expense account $1,700
Credit Service Revenue account $1,700
Being entries to recognize the payment of rent expense.
Purchase office supplies on account for $1,000
Debit Supplies account $1,000
Credit Cash account $1,000
Being entries to recognize the payment for office supplies.
Pay employee salaries of $1,700 for the current month
Debit Salaries Expense account $1,700
Credit Cash account $1,700
Being entries to recognize the payment of employee's salaries.
Explanation:
Information given about Terrapin
Purchase equipment in exchange for cash of $22,400. Provide services to customers and receive cash of $6,000. Pay the current month's rent of $1,700. Purchase office supplies on account for $1,000. Pay employee salaries of $1,700 for the current month.To record these transactions, the following entries will be posted
Purchase equipment in exchange for cash of $22,400
Debit Equipment account $22,400
Credit Cash account $22,400
Being entries to record the purchase of equipment for cash
Provide services to customers and receive cash of $6,000
Debit Cash account $6,000
Credit Service Revenue account $6,000
Being entries to recognize revenue earned from service rendered to customer.
Pay the current month's rent of $1,700
Debit Rent expense account $1,700
Credit Service Revenue account $1,700
Being entries to recognize the payment of rent expense.
Purchase office supplies on account for $1,000
Debit Supplies account $1,000
Credit Cash account $1,000
Being entries to recognize the payment for office supplies.
Pay employee salaries of $1,700 for the current month
Debit Salaries Expense account $1,700
Credit Cash account $1,700
Being entries to recognize the payment of employee's salaries.
Transactions for the Terrapin Company are recorded using debit and credit entries affecting equipment, cash, service revenue, rent expense, supplies, accounts payable, and salaries expense.
Explanation:To record the external transactions for the Terrapin Company, we use debit and credit accounting as follows:
Purchase equipment for cash: Debit Equipment $22,400, Credit Cash $22,400.Provide services and receive cash: Debit Cash $6,000, Credit Service Revenue $6,000.Pay rent for the current month: Debit Rent Expense $1,700, Credit Cash $1,700.Purchase office supplies on account: Debit Supplies $1,000, Credit Accounts Payable $1,000.Pay employee salaries for the current month: Debit Salaries Expense $1,700, Credit Cash $1,700.These journal entries affect various accounts on the balance sheet and income statement, such as assets, liabilities, revenues, and expenses.
Based on market values, Gubler's Gym has an equity multiplier of 1.56 times. Shareholders require a return of 11.31 percent on the company's stock and a pretax return of 4.94 percent on the company's debt. The company is evaluating a new project that has the same risk as the company itself. The project will generate annual aftertax cash flows of $297,000 per year for 9 years. The tax rate is 40 percent. What is the most the company would be willing to spend today on the project?
The question relates to business finance and requires calculating a new project's maximum initial investment based on cost of capital, expected future cash flows and taxation. We need to use the weighted average cost of capital (WACC) as the discount rate to determine the present value of the project's future after-tax cash flows. The maximum the company should be willing to invest is equal to this present value.
Explanation:The student's question is focused on finding the maximum investment a company should make in a project given certain constraints. To determine this, we can use the concept of the present value of future cash flows to establish a base for the company's potential investment. This requires an understanding of the cost of capital, which in this scenario includes the return required by equity and debt holders, as well as the impact of taxes.
Using the facts given in the question, the cost of equity is 11.31% and the after-tax cost of debt is 4.94% * (1 - 0.4) = 2.964%. Presuming the company is financed by both equity and debt and given the equity multiplier of 1.56, we can infer that the equity to asset ratio is the reciprocal of the equity multiplier, i.e., 1/1.56 = 0.641. Thus, the debt to asset ratio is 1 - 0.641 = 0.359.
We can then calculate the weighted average cost of capital (WACC) = (0.641 * 11.31%) + (0.359 * 2.964%) = 7.8904%. The WACC serves as the discount rate used in the present value calculation of the project's future cash flows. Given the project will generate annual after-tax cash flows of $297,000 per year for 9 years, we can use this cash flow figure, the number of periods, and the calculated discount rate to compute the present value of an annuity, which gives us the maximum amount the company should be willing to spend on the project today.
The formula for the present value of an annuity is PV = CF * [(1 - (1 + r)^-n) / r], where CF is the annual cash flow, r is the discount rate, and n is the number of periods. Substituting in the known values we get: PV = $297,000 * [(1 - (1 + 7.89%)^-9) / 7.89%], which should give us the answer if calculated.
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The 2017 balance sheet of Staples, Inc. shows total assets of $8,271 million, operating assets of $6,566 million, operating liabilities of $3,527 million, and shareholders’ equity of $3,688 million. Staples' 2017 net operating assets are: Select one:
A. $11,798 million
B. $ 6,566 million
C. $ 4,744 million
D. $ 3,039 million
E. None of the above
Answer:
D. $ 3,039 million
Explanation:
Net Operating Assets = Operating Assets - Operating Liabilities
Net Operating Assets = $6,566 million - 3,527 million
Net Operating Assets = $3,039 million
Hawaiian Specialty Foods purchased equipment for $12,000. Residual value at the end of an estimated four-year service life is expected to be $1,200. The machine operated for 1,700 hours in the first year, and the company expects the machine to operate for a total of 10,000 hours. Calculate depreciation expense for the first year using each of the following depreciation methods:
(1) straight-line,
(2) double-declining-balance, and
(3) activity-based.
Answer:
1. $2,700
2. $6,000
3. $1,836
Explanation:
The computation of the depreciation expense for the first year is shown below:
1) Straight-line method:
= (Original cost - residual value) ÷ (useful life)
= ($12,000 - $1,200) ÷ (4 years)
= ($10,800) ÷ (4 years)
= $2,700
In this method, the depreciation is same for all the remaining useful life
2) Double-declining balance method:
First we have to find the depreciation rate which is shown below:
= One ÷ useful life
= 1 ÷ 4
= 25%
Now the rate is double So, 50%
In year 1, the original cost is $12,000, so the depreciation is $6,000 after applying the 50% depreciation rate
3) Units-of-production method:
= (Original cost - residual value) ÷ (estimated machine hours)
= ($12,000 - $1,200) ÷ ($10,000 hours)
= ($10,800) ÷ ($10,000 hours)
= $1.08 per hour
Now for the first year, it would be
= Machine hours in first year × depreciation per hour
= 1,700 machine hours × $1.08
= $1,836
In 2019, Wally had the following insured personal casualty losses (arising from one casualty in a Federally declared disaster area). Wally also had $42,000 AGI for the year before considering the casualty. Fair Market Value Asset Adjusted Basis Before After Insurance Recovery A $9,200 $8,000 $1,000 $2,000 B 3,000 4,000 -0- 4,000 C 3,700 1,700 -0- 900
Wally's casualty loss deduction is:
Final answer:
Wally cannot claim a casualty loss deduction because after calculating the deductible losses for each asset and applying the rules regarding insurance and AGI, the deductible amount is less than 10% of his AGI, resulting in no allowable deduction.
Explanation:
When calculating casualty loss deductions for tax purposes, there are specific steps that need to be followed. The tax rule states that for each casualty event, you subtract $100 from the value of the loss after reimbursement from insurance (but not below zero). After doing this for all individual casualties, you then subtract 10% of your adjusted gross income (AGI) from the total of all the losses.
Here is the calculation for Wally's losses:
Asset A loss: $9,200 (FMV before) - $8,000 (FMV after) = $1,200 loss - $1,000 (insurance recovery) = $200 deductible loss before $100 rule. Applying $100 rule: $200 - $100 = $100.
Asset B: Since the FMV after is equal to the FMV before, there is no deductible loss here despite the lack of insurance recovery.
Asset C loss: $3,700 - $1,700 = $2,000 loss - $900 (insurance recovery) = $1,100 deductible loss before $100 rule. Applying $100 rule: $1,100 - $100 = $1,000.
Adding the deductible losses of Asset A and C gives us $100 + $1,000 = $1,100. Next, we apply the rule to subtract 10% of AGI from the total losses: $1,100 - (10% of $42,000) = $1,100 - $4,200 results in a negative number. Therefore, Wally cannot claim any casualty loss deduction because his AGI is too high relative to the amount of the losses after insurance recoveries and applying the IRS rules.
Sheridan Company's trial balance reflected the following account balances at December 31, 2017:
Accounts receivable (net) $37,000
Trading securities 11,500
Accumulated depreciation on equipment and furniture 29,000
Cash 33,000
Inventory 58,500
Equipment 45,000
Patent 9,000
Prepaid expenses 3,700
Land held for future business site 36,500
In Sheridan’s December 31, 2017 balance sheet, the current assets total is:
a. $212500.
b. $234300.
c. $146500.
d. $218300.
Answer:
$143,700
Explanation:
Current assets in Sheridan Company's trial balance are;
Accounts receivable (net) = $37,000
Trading securities = $11,500
Cash = $33,000
Inventory = $58,500
Prepaid expenses = $3,700
Total current assets = $37,000 + $11,500 + $33,000 + $58,500 + $3,700
= $143,700
The right answer is not given as an option.
Final answer:
The total current assets of Sheridan Company as of December 31, 2017, are calculated by adding Cash, Accounts Receivable, Trading Securities, Inventory, and Prepaid Expenses. The calculated total is $143,700, which indicates a typo in the provided options, with the closest figure being option 'c' $146,500.
Explanation:
To calculate the total current assets for Sheridan Company's balance sheet as of December 31, 2017, we must sum up all the asset accounts that can be converted into cash within one year. These include Cash and Cash Equivalents, Accounts Receivable, Trading Securities, Inventory, and Prepaid Expenses. Long-term assets such as land, equipment (minus depreciation), and patents are not considered current assets.
Here is the calculation:
Cash: $33,000
Accounts Receivable (net): $37,000
Trading Securities: $11,500
Inventory: $58,500
Prepaid Expenses: $3,700
Adding these amounts, we find the total current assets:
$33,000 (Cash) + $37,000 (Accounts Receivable) + $11,500 (Trading Securities) + $58,500 (Inventory) + $3,700 (Prepaid Expenses) = $143,700
Therefore, the answer is 'c' $146,500, if we consider that there might be a slight typographical error in the question options, as our precise calculation yields $143,700. However, if the provided options are strictly followed, we have to choose the closest figure which is $146,500.
How does a change in a country's real exchange rate affect its net exports?
(A) When a country's real exchange rate appreciates, it imports less and exports more, causing its net exports to fall.
(B) When a country's real exchange rate appreciates, it imports more and exports less, causing its net exports to rise.
(C) When a country's real exchange rate appreciates, it imports more and exports less, causing its net exports to fall.
(D) The real exchange rate does not impact a country's net exports.
Answer: (C) When a country's real exchange rate appreciates, it imports more and exports less, causing its net exports to fall.
Explanation:
When a country's real exchange rate appreciates i.e the value of its currency increases, it imports more because more products could be bought with the same amount of the currency as a result of its increased value, and it export less because their goods would become more expensive for other countries resulting in reduced demand. Therefore, resulting in the fall of its net export. This is a form of trade balance.
Why might one prefer to issue fixed rate bonds rather than floating rate notes?
Answer:
The advantages of issuing fixed rate bonds is that because the rates are fixed the interest payments are also fixed which means that the company can plan in advance their payments and face no surprises. Also if interest rates rise in the future the company will have not have to increase the interest payments because they have issued fixed rate bonds, whereas if they issued floating rate notes they would have to increase interest payments when interest rates increased.
Explanation:
he management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $ 58,000 $ 4,000 2 $ 8,000 $ 8,000 3 $ 11,000 4 $ 14,000 5 $ 17,000 6 $ 15,000 7 $ 13,000 8 $ 11,000 9 $ 10,000 10 $ 10,000(1) Determine the payback period of the investment. (2) Would the payback period be affected if the cash inflow in the last year were several times as large?
Answer:
1. 5.8 years
2. No
Explanation:
1. In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:
In year 0 = $58,000 + $8,000 = $66,000
In year 1 = $4,000
In year 2 = $8,000
In year 3 = $11,000
In year 4 = $14,000
In year 5 = $17,000
In year 6 = $15,000
and so on
If we sum the first 5 year cash inflows than it would be $54,000
Now we deduct the $54,000 from the $66,000 , so the amount would be $12,000 as if we added the sixth year cash inflow so the total amount exceed to the initial investment. So, we deduct it
And, the next year cash inflow is $`15,000
So, the payback period equal to
= 5 years + $12,000 ÷ $15,000
= 5.8 yeas
In 5.8 yeas, the invested amount is recovered.
2, No, it does not affect the last year cash flow as the full amount is recovered in 5.8 years
Great Skot expects to have cash receipts in June of $532,160. Skot’s cash disbursements in June are $581,720, including an interest payment on a bond issue of $32,000. If Skot wishes to maintain a cash balance of $40,000, how much will Skot have to borrow if it started the month with a cash balance of $52,000?
a.$37,560
b. Surplus of $2,440. Will not have to borrow
c.$5,560
d. Surplus of $34,440. Will not have to borrow
Answer:
a.$37,560
Explanation:
Cash balance $40,000 at month end = Cash balance $52,000 at beginning + cash receipts in June of $532,160 - cash disbursements of $581,720 + New borrowing
⇔ $40,000 = $2,440 + new borrowing
⇔ New borrowing = $40,000 - $2,440 = $37,560
If Skot wishes to maintain a cash balance of $40,000, Skot have to borrow $37,560 if it started the month with a cash balance of $52,000
A factor that has been associated with the incrase in income inequality in the united states is:________.
Answer:
The correct answer is: Technology.
Explanation:
Even though technology has brought humanity different advantages that are changing history, when it comes to income inequality it might represent a factor that increases it. That is because the technology requires highly trained personnel for handling certain equipment. That personnel has higher payments than average workers. Education and job training are proposed as possible solutions for this issue.
Income inequality in the United States has risen due to a shift in wage distribution towards high-skilled labor, resulting in winner-take-all markets caused by technological advancements.
A factor associated with the increase in income inequality in the United States is the shift in the distribution of wages. Earnings of high-skilled labor relative to low-skilled labor have increased, creating winner-take-all labor markets due to changes in technology and global demand for skilled workers. This trend has led to greater income disparities over the last four decades.
Marsh Company had 150 units of product A on hand at January 1, year 2, costing $21 each. Purchases of product A during the month of January were as follows: Units Unit cost Jan. 10 200 $22 18 250 23 28 100 24
A physical count on January 31, year 2, shows 250 units of product A on hand. The cost of the inventory at January 31, year 2, under the LIFO method is
a. $5,850b. $5,550c. $5,350d. $5,250
Answer:
a. $5,850
Explanation:
Under the LIFO Method, the cost of good sold equals to
= January 28 units × cost per unit + Remaining units × cost per unit
= 100 units × $24 + 150 units × $23
= $2,400 + $3,450
= $5,850
Since the firm has sold 250 units, so out of which 100 units sold at a price of $24 and the remaining 150 units sold at a price of $23
The cost of the inventory at January 31, year 2, under the LIFO method is not provided in the answer choices.
Explanation:The LIFO (Last In First Out) method assumes that the most recently purchased inventory is sold first. In this case, the cost of the 250 units purchased on January 18, 23, and 24 will be used to calculate the cost of the inventory at January 31st.
Let's calculate the cost of the inventory:
The total cost of the inventory at January 31st, year 2, under the LIFO method is $9,350. Therefore, the correct option is none of the above.
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What leadership approach is considered the most dominant among the styles and why?
Answer:
Democratic leadership approach
Explanation:
Democratic leadership, often recognized as participatory leadership, is a form of management style wherein team members play a much more participatory position in the procedure of making business decisions.
The option to engage is provided to all in such a framework, ideas are openly shared and conversation is promoted. Because the democratic process focuses solely on the equal rights of groups as well as the unlimited flow of information, the team leader is only there to provide advice and influence.
Such style of leadership will extend from private companies to schooling to the government to any entity. That's why it is considered to be most dominating.
Final answer:
While it is difficult to pinpoint a single dominant leadership style, democratic leadership is often celebrated for its effectiveness across a range of scenarios due to its emphasis on inclusivity and team engagement. However, the most effective leadership approach can vary significantly based on the situation at hand, highlighting the importance of adaptability in leadership practices.
Explanation:
Identifying a single dominant leadership style is challenging because effectiveness largely depends on the context in which the leadership is applied, including the nature of the task, the team's characteristics, and the broader environment. However, among the various leadership styles discussed, democratic leadership is often highlighted for its versatility and effectiveness in a wide range of scenarios. Democratic leaders actively involve team members in decision-making processes, which can lead to higher levels of engagement, creativity, and satisfaction among group members. This approach fosters a sense of ownership and empowerment within the team, contributing to cohesive team dynamics and enhancing overall productivity.
However, it's important to note that the most effective leadership style can vary significantly depending on the specific requirements of the situation. For instance, in crisis situations where quick, decisive action is needed, an autocratic leadership approach may be more effective. Similarly, in highly skilled, self-motivated teams, a laissez-faire leadership style might be preferable, as it gives individuals the autonomy to innovate and make decisions without constant oversight.
In addition to understanding different leadership styles, it's crucial for leaders to be adaptable and capable of employing various approaches as circumstances change. The ability to discern which style will be most effective in a given situation is a hallmark of great leadership. This agility enables leaders to navigate complex environments successfully, balancing between offering guidance and empowering their teams to operate autonomously.
Kansas farmers sell $1,500 of wheat to food processors. Processors sell $3,500 of flour to bakers. Bakers use the flour to produce $5,500 bread and sell it to consumers. Additionally, U.S. car makers import $17,500 of steel from China and produce cars. $12,500 of cars are sold to Uber and $16,000 of cars are sold to U.S. consumers. What is the GDP of the U.S. in 2018?
Answer:
$17,000
Explanation:
In bread all the raw materials and value addition is domestic hence will be a part of GDP i.e $5500 will be added.
In case of cars irrespective to whom it is sold the value produced domestically will be a part of GDP,
hence,
total value:
= 12500 + 16000
= $28,500
but $17500 is not produced domestically (imported) hence will not be a part of GDP.
Hence,
Added in GDP:
= 28,500 - 17,000
= $11,500 will be added in GDP
Therefore, GDP of the U.S. in 2018:
= $5,500 + $11,500
= $17,000
The company has an opportunity to sell 40,000 additional units at $13 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume would create the following incremental costs: (1) total overhead would increase by 15% and (2) administrative expenses would increase by $172,000. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit. Should the company accept or reject the offer?
Answer:
Yes, the company should accept the offer.
Explanation:
The company should accept the offer as it increases income by $44,000.
Additional volume computations:Additional sales revenue = 40,000 units @ $13 = $520,000
Materials cost per unit = $800,000 / 400,000 units = $2 per unit
Labor cost per unit = $1,600,000 / 400,000 units = $4 per unit
Direct materials = (40,000 × $2) = $80,000
Direct labor = (40,000 × $4) = $160,000
Incremental overhead = $400,000 × 16% = $64,000
Incremental administrative = $172,000 (given).
Brad and Angelina are a wealthy couple who have three children, Fred, Bridget, and Lisa. Two of the three children, Fred and Bridget, are from Brad’s previous marriages. On Christmas this year, Brad gave each of the three children a cash gift of $6,500, and Angelina gave Lisa an additional cash gift of $41,000. Brad also gave stock worth $54,000 (adjusted basis of $13,500) to the Actor’s Guild (an "A" charity).
(Leave no answer blank. Enter zero if applicable.)
a. Brad and Angelina have chosen to split gifts. Calculate Brad’s gift tax. Assume that Angelina has no previous taxable gifts, but Brad reported previous taxable gifts of $2 million in 2009 when he used $345,800 of unified credit and paid $435,000 of gift taxes. (Reference the tax rate schedule in Exhibit 25-1 and the Unified Credit schedule in Exhibit 25-2 to answer this problem.)
Final answer:
Brad's gift tax calculation involves determining the total value of gifts given and applying the annual exclusion. However, subtracting the annual exclusions from the total gifts given by Brad ($40,000) shows that there are no taxable gifts, resulting in no gift tax being due.
Explanation:
The question involves calculating Brad's gift tax considering that he and Angelina have chosen to split gifts. First, we'll calculate the total amount of gifts given by Brad. He gave each of his three children a cash gift of $6,500 totaling $19,500. Since gift splitting is elected, Angelina's additional gift of $41,000 to Lisa is also considered as half given by Brad, adding $20,500 to his gifts. The stock gift worth $54,000 to the Actor's Guild charity falls under charitable contribution and is not typically subject to gift tax.
After combining the amounts, we get Brad’s total gifts for the year as $40,000. We subtract the annual exclusion amount ($15,000 in 2021) for each gift to Fred, Bridget, and Lisa which amounts to $45,000 ($15,000 x 3). Therefore, $40,000 - $45,000 results in no taxable gift exceeding the annual exclusion. Since there are no taxable gifts exceeding the annual exclusion, there would be no gift tax incurred, and Brad's unified credit and previous taxable gifts are not affected.
Please note, this calculation is a basic example and actual gift tax calculations can vary depending on the tax code and any applicable exclusions or deductions that may apply at the time of the gifts.
At the beginning of 2014 Country A's Net International Investment Position is - at book (or accounting) value - equal to $0. During 2014 Country A's residents purchase shares in Country B's stock market for $500, and Country A's government sells treasury bonds to Country B's residents for $500. Country A's Current Account Balance in 2014 and 2015 is 0, and no other financial account entries are recorded in Country A's balance of payments. At the end of 2015, however, Country B's shares owned by Country A residents have increased their value by 10%, while the Country A's treasury bonds owned by Country B's residents have lost 5% of their original market value. What is the market value of Country A's Net International Investment Position at the end of 2015
Answer:
$50; $550; $25; $475; $75
Explanation:
Increase in value:
= Investment made × Percentage change
= (500 × 10) ÷ 100
= 50
Thus, the increase in value of country A is $50.
New value = Original value + Increased value
= $500 + $50
= $550
Therefore, the new value of country A's investment in a foreign country at the end of 2015 is $550.
(b) The value of foreign country's investment in country A has decreased to 5%.
Decrease in value = Original value × Decreased value
= (500 × 5) ÷ 100
= 2,500 ÷ 100
= 25
Therefore, decrease in value of country A is $25.
New value = Original value - Decreased value
= $500 - $25
= $475
Thus, the value of foreign countries invests in the country A at the end of 2015 is $475.
Net international investment position:
= (value of country A's investment in a foreign country at the end of 2015) - (value of foreign countries investment in the country A at the end of 2015)
= $550 - $475
= $75
Thus, the market value of the country A's net international investment position at the end of 2015 is $75.
Final answer:
The current account balance can be calculated using the national saving and investment identity formula. If investment rises by $50 billion while the budget deficit and national savings remain the same, the current account balance would decrease by $50 billion.
Explanation:
The current account balance can be calculated using the national saving and investment identity formula:
Current Account Balance = National Savings - Domestic Investment.
In this case, the government budget deficit of $100 billion and total domestic savings of $1,500 billion are given.
Therefore, the current account balance would be $1,400 billion ($1,500 billion - $100 billion).
If investment rises by $50 billion while the budget deficit and national savings remain the same, the current account balance would decrease by -
= ($1,400 billion - $50 billion).
= $50 billion
Skyline Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering the bouquets to its commercial customers. Company personnel who earn $260,000 typically perform both tasks; other firm-wide overhead is expected to total $60,000. These costs are allocated as follows:
Bouquet Production Delivery Other
Wages and salaries 60 % 30 % 10 %
Other overhead 50 % 40 % 10 %
Skyline anticipates making 20,500 bouquets and 4,000 deliveries in the upcoming year.
1. The cost of wages and salaries and other overhead that would be charged to each delivery is closest to __________?
2.The cost of wages and salaries and other overhead that would be charged to each delivery is closest to __________?
Answer:
1. $9.07
2. $25.5
Explanation:
(a) Total Cost:
= 260,000 × 60% (Wages and Salaries) + 60,000 × 50% (Other Overhead)
= $186,000
Cost of Wages and Salaries and Other Overheads Charged to Each Bouquet:
= Total Cost ÷ Total Bouquets
= $186,000 ÷ 20,500
= $9.07
(b) Total Cost:
= 260,000 × 30% (Wages and Salaries) + 60,000 × 40% (Other Overhead)
= $102,000
Cost of Wages and Salaries and Other Overheads Charged to Each Delivery:
= Total Cost ÷ Total Delivery
= $102,000 ÷ 4,000
= $25.5
The cost of wages and salaries and other overhead that would be charged to each delivery can be calculated by multiplying the respective percentages allocated to delivery for both wages and salaries and other overhead with the total wages and salaries and other overhead costs. Then, divide the total cost by the number of deliveries.
Explanation:The cost of wages and salaries and other overhead that would be charged to each delivery can be calculated by multiplying the respective percentages allocated to delivery for both wages and salaries and other overhead with the total wages and salaries and other overhead costs. Then, divide the total cost by the number of deliveries.
For wages and salaries, the calculation would be:
Total wages and salaries cost = $260,000
Cost allocated to delivery = 30% of $260,000 = $78,000
Cost of wages and salaries per delivery = $78,000 / 4,000 deliveries = $19.50 per delivery
For other overhead, the calculation would be:
Total other overhead cost = $60,000
Cost allocated to delivery = 10% of $60,000 = $6,000
Cost of other overhead per delivery = $6,000 / 4,000 deliveries = $1.50 per delivery
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You have noticed that your next-door neighbor, Mary, always works in the garden, and her husband, Joe, always walks the dog. You conclude that if Joe and Mary are efficient, then it must be the case that:A. Mary has an absolute advantage in gardening. B. Joe has a comparative advantage in walking the dog. C. Mary does not understand the principle of low-hanging fruit D. Joe experiences increasing opportunity costs when he gardens, but not when he walks the dog.
Answer:
B
Explanation:
One had noticed the next-door neighbor, Mary, always works in the garden, and her husband, Joe, always walks the dog. So one conclude that if Joe and Mary are efficient, then it must be the case that: Joe has a comparative advantage in walking the dog. Option B is correct.
What do you mean by Comparative Advantage?The ability of an economy to produce a specific good or service at a lower opportunity cost than its trading counterparts is known as comparative advantage.
Further an opportunity cost is a new consideration in the idea of comparative advantage when comparing various manufacturing possibilities.
When manufacturing a specific good, agents in an economic model have a comparative advantage over rivals if they can do so at a lower relative opportunity cost or autarky price, that is, at a lower relative marginal cost before trade.
Thus according to Ricardo's renowned comparative advantage theory, countries can benefit from a trade advantage by concentrating on producing items that have the lowest opportunity costs when compared to those of other countries.
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In your own words, explain three of the nine building blocks for managers to use in developing an innovative and effective business model.
Explanation:
The business model, main customer section, distribution channels, interactions, core capacity, business designs, partners, revenue streams and cost structures are Osterwalder's nine building blocks for managers to use in the development of an innovative and effective business model (Trevino, s., et al., 2009). The basic activities of the organization are nine building blocks of which, sales sources, expense structures and core efficiency. A business must consider its key strengths before it heads to the market. In other words, they differ from other rivals in their ability and advantages.
They should be precise in describing the key capability of the business model. A central skill, for example, is not customer service; the company has customer service 24 hours a day, where consumers speak to a real person who is a professional engineer. It is anticipated that customers will be likely to take advantage of our competitiveness to purchase more services from us. Revenue streams are all the ways that the company gets revenue.
A business model should describe the anticipated sources, periods and quantities of profit predicted and how internal and external variables can be influenced by this distribution and how these factors can be mitigated. Finally, cost structures refer to both fixed and variable operating costs required to operate, produce a product or perform a service. In comparison to the expected revenue source, the expense ratios would determine the expected costs, in effect reflecting the projected productivity of the product.