Explanation:
this is the knowledge, skills added to labor to promote production
Coke and Pepsi battle it out
Until 2004, Pepsi was sold in the Gulf, but notCoca-Cola. Today, Pepsi is fighting to keep its dominant position in the Middle East. Coca-Cola and Pepsi have avoided a price war and have entered into a "display marketing" war. Each copies theother's promotions and tries to do even better. Coca-Cola and Pepsi are at each other's throats, and that's good news for everyone.
AME Info,
April
8, 2004
Describe the game that Coca-Cola and PepsiCo play in the Middle East.
Why is it "good news for everyone" in the MiddleEast?
Coca-Cola and Pepsi are playing _______ game.
A.
an advertising
B.
a research
C.
a price
D.
an efficient
The game ______ good news for people in the Middle East because ______.
A.
is;
Coca-Cola and Pepsi have a reputation for producing interesting and dynamic advertising campaigns
B.
is not;
Coca-Cola and Pepsi will pass on their additional marketing costs to the consumers
C.
is not;
any game that an oligopoly plays always results in higher prices for the consumers
D.
is;
they have more information about the products and the increased promotions give the consumers deals they otherwise would not have experienced
Answer:1. Advertising
2. D. They have more information about the product and the increased promotions give the consumers deals they otherwise would not have experienced.
Explanation:
The war between Pepsi and Coca- Cola is an advertisement war in which each is trying to gain the consumers patronage by proving the superiority of their product over others. It has nothing to do with research, price nor efficiency.
The advertisement provides more information on the product to the consumers and promotion offer like free gift which they hitherto would not have enjoyed.
Marketing or advertising cost are not passed to consumers and the advertisement been interesting adds little or no value to the consumers.
Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget. a. Beginning cash balance on June 1, $94,000. b. Cash receipts from sales, $413,000. c. Budgeted cash disbursements for purchases, $268,000. d. Budgeted cash disbursements for salaries, $95,000. e. Other budgeted cash expenses, $57,000. f. Cash repayment of bank loan, $32,000. g. Budgeted depreciation expense, $34,000.
To calculate the ending cash balance, subtract the total cash disbursements from the sum of the beginning balance and cash receipts. Depreciation expense is ignored as it is not a cash item. The ending cash balance for June 30 is $55,000.
To determine the ending cash balance to be reported on the month-ended June 30 cash budget, we start with the beginning cash balance and adjust for cash inflows and outflows throughout the month. Here's a step-by-step calculation:
Beginning cash balance: $94,000Plus cash receipts from sales: +$413,000Less budgeted cash disbursements for purchases: -$268,000Less budgeted cash disbursements for salaries: -$95,000Less other budgeted cash expenses: -$57,000Less cash repayment of bank loan: -$32,000Ignore budgeted depreciation expense since it is a non-cash item.Now, we calculate the ending balance:
End Balance = Begin Balance + Cash Inflows - Cash Outflows
End Balance = $94,000 + $413,000 - ($268,000 + $95,000 + $57,000 + $32,000)
End Balance = $94,000 + $413,000 - $452,000
End Balance = $507,000 - $452,000
End Balance = $55,000
The ending cash balance to be reported on the June 30 cash budget is $55,000.
Parke-Bernet Galleries, acting as agent for an undisclosed principal, sold a painting to Weisz. Weisz laterdiscovered that the painting was a forgery and sued Parke-Bernet for breach of contract. In defense, Parke-Bernet argued that as a general rule, agents are not liable on contracts made for principals. Is this a gooddefense? Explain.
Answer:No, this is not a good defense
Explanation:
An agent is a person acting on behalf of a principal as regards contract relationship for which the principal will be liable provided the agent adhere to.
Disclosure of principal The identity of the principal must be fully disclosed at the time of contract.
The non disclosure of the principal will make the contracting party believe he his dealing with the agent and for any breach thereon the agent will be liable.
In the above scenario the principal was not disclose and this makes Parke Bennet liable.
Durable goods such as _____________, furniture, and appliances will fluctuate more widely in sales over a business cycle than nondurables such as food and medicine which are necessities.A drinking waterB tooth pasteC gasolineD automobiles
Answer:
D automobiles
Explanation:
In economic theory, a durable good is defined as that product (or service) that once acquired can be used a large number of times over time. Durable goods are those reusable goods and, although they may end up being spent, they are not consumed quickly as non-durable goods. It is argued that durable goods are those that provide the consumer with a flow of service for a relatively long time, such as automobiles, furniture, homes, etc. It is not necessary that a durable good be luxurious, for example an armchair is a durable good. On the other hand, non-durable goods are depleted or consumed completely in the act of satisfying a need, such as food, water or electricity. It should be noted that one of the fundamental characteristics of durable goods is that they are bought today, while the flow of their services extends over time and that the benefits they yield in a period are proportional to the number of units that are removed from the stock, characteristics that resemble it with the investment in productive capital and is defined as a good that is consumed immediately, with a use or a life time of less than 3 years.
Final answer:
The correct answer is D. automobiles. Durable goods such as automobiles fluctuate more in sales compared to nondurables due to changes in economic conditions, while nondurable goods like food and medicine are necessities with more stable sales patterns.
Explanation:
Durable goods such as automobiles, furniture, and appliances will fluctuate more widely in sales over a business cycle than nondurables such as food and medicine which are necessities. In this context, the correct answer is D. automobiles.
When discussing consumers, goods & services, we refer to economic products that are transferable and useful to individuals or entities. As consumers, we purchase these products to fulfill our needs. Consumer goods are intended for individual use and are classified into durable goods, like automobiles, and nondurable goods, such as food products and gasoline. Durable goods tend to experience larger fluctuations in sales during the business cycle, affected significantly by changes in economic conditions like disposable income and consumer confidence.
Market surveys conducted by car companies show that people who buy battery-powered cars are very concerned about pollution and its long term impact on the environment. The same surveys show that people with battery-powered cars, compared to others, are more likely to use energy-saving appliances at home. Thus, car companies emphasize the environmentalb potential buyers who are concerned about the environment. Which of the following statements best expresses the main conclusion of the above argument? 1. Ads for battery-powered cars target those who are concerned about the environment 2. More people are concerned about the environment today than in the past. 3. Primary buyers of battery-powered cars are those concerned with the environment.
Answer:
The statement that best expresses the main conclusion of the argument is:
Primary buyers of battery-powered cars are those concerned with the environment.
Explanation:
From the surveys, we can see that the people that buy battery-powered cars are concerned about the long-term effect of pollution on the environment.
We can also see that these people are more likely to use energy-saving appliances at home and people that use other cars.
These statements show that the people more likely to buy battery-powered cars are concerned with the environment.
The return on a 10 percent coupon bond that initially sells for $1,000 and sells for $900 one year later is?
Paula Boothe, president of the Indigo Corporation, has mandated a minimum 10% return on investment for any project undertaken by the company. Given the company’s decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least 10%. The Energy Drinks division, under the direction of manager Martin Koch, has achieved a 13% return on investment for the past three years. This year is not expected to be different from the past three. Koch has just received a proposal to invest $1,800,000 in a new line of energy drinks that is expected to generate $234,000 in operating income.
Calculate the residual income for the proposed new line of energy drinks.
Answer:
$54,000
Explanation:
The computation of the residual income is shown below:
= Operating income - minimum return
where,
operating income = $234,000
And, the minimum return equal to
= Invested asset amount × minimum rate of return
= $1,800,000 × 10%
= $180,000
Now put these values to the above formula
So, the value would equal to
= $234,000 - $180,000
= $54,000
A customer tried to use a fake id during an insurance transaction and the agent had to file a Suspicious Activity Report under law. One could assume a minimum of ______ was involved in the transaction.
Answer:
$ 10,000 USD
Explanation:
Insurance companies are obliged to report to the federal government through form 8300 about transactions that exceed $ 10,000 or even transactions of a lower value that for some reason arouse the impression of suspicious activity; since criminals are normally aware of this rule and try to avoid the law as much as possible. This arrangement has been proposed by the government to control illicit activity and to comply with the anti money laundering program.
When a customer uses a fake ID during an insurance transaction, the agent has to file a Suspicious Activity Report under the law. The minimum amount involved in the transaction depends on the specifics of the case.
Explanation:When a customer tries to use a fake ID during an insurance transaction, it is considered suspicious activity. In such cases, the agent is required to file a Suspicious Activity Report under the law. The minimum amount involved in the transaction may vary, but it is generally assumed that some degree of financial fraud is involved. The specific amount cannot be determined without additional information about the transaction.
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In a very strong economy, where the demand for qualified job applicants exceeds the supply, the environmental characteristic of ____ is likely to be particularly salient for many companies.a.environmental complexityb.environmental changec.resource scarcity
d.environmental uncertaintye.environmental risk
Answer: (C) Resource scarcity
Explanation:
The resource scarcity is one of the basic economical problem that cause decreasing in the various types of natural resources and various types of basic requirements.
According to the question, the resource scarcity is one of the environmental characteristics and it occur when the demand exceeds as compared to the basic supply and specific requirement. When the consumption are get increased to the basic usage of the requirement.
Therefore, Option (C) is correct.
You have a bond that entitles you to a one-time payment of $10,000 one year from now. The interest rate is 10 percent per year. How much is the bond worth today?
Answer:
$9,090.91
Explanation:
The computation of today price is shown below:
Present value = One time payment × (1 + interest rate)^ number of years
= $10,000 × (1 + 0.10)^1
= $10,000 × 0.909090
= $9,090.91
Simply we determine the discount factor and then multiplied it with the one time payment so that estimated value can come
If Investment Spending does not replace Consumption of Fixed Capital (CFC), then GDP will _________..
Answer: Decrease
Explanation:
GDP = gross domestic product. The number of goods and services produced and consumed within a country.
The major components also include investment spending and consumption.
If investment spending does not replace consumption of fixed capital then GDP will fall or decline. Investment spending needs to be replaced by consumption of fixed capital so that the GDP can increase. Which is beneficial for the economy.
Alpine Corporation reported the following information for fiscal 2017 and 2016.
December 31 | 2017 | 2016
Operating assets | $164,101 | $153,211
Operating liabilities | 120,785 | 114,836
Net cash flow from operations | 46,709 | 39,540
Net operating profit after tax (NOPAT) | 33,371 | 31,742
Discount factor | 6.0% | 6.0%
What are the company's free cash flows to the firm (FCFF) for 2017?
Answer:
$28,430
Explanation:
We have that FCFF = Net operating profit after tax (NOPAT) - change in net operating assets (NOA)
But NOA = Operating assets - Operating liabilities
2016 NOA = $153,211 - $114,836 = $38,375
2017 NOA = $164,101 - $120,785 = $43,316
Hence, the company's free cash flows to the firm (FCFF) for 2017 is
FCFF = $33,371 - ($43,316 - $38,375) = $28,430
Complete the sentence. The principle of minimum differentiation suggests that political parties will _______.
A. offer few ideas on minimizing the size of government
B. tend to have few new ideas as an election approaches
C. have few ideas in common in their platforms
D. tend to become similar as they try to appeal to a majority of voters
Answer:
D. tend to become similar as they try to appeal to a majority of voters
Explanation:
The principle of minimum differentiation suggests that political parties will tend to become similar as they try to appeal to a majority of voters. The idea of minimum differentiation is to appeal a maximum number of voters.
On November 18, 2018, equipment is stolen from ABC manufacturing. ABC purchased the equipment for $100,000 and its adjusted basis is $0. The insurance company paid ABC $20,000 for its loss on January 6, 2019. How long does ABC have to purchase qualified replacement property and how much must it reinvest to avoid recognizing its gain?
Answer:
The answer is - December 31, 2020 and $20,000 respectively
Explanation:
The gain from an involuntary conversion of tax payer's property may be deferred if the property is replaced within the staturory time limit established by law
Time limilt is 2 years for Destruction or theft of property resulting in insurance recovery
The time starts when the insurance/government proceeds are received
ABC have to reinvest by December 31, 2020 as the proceeds are received on January 6, 2018
Gain of 20,000 which is insurance proceeds received less basis(20,000 - 0) has to be reinvetsed
The answer is - December 31, 2020 and $20,000 respectively
The Commission on Sustainable Development Select one:
a. ensures the high visibility of sustainable development issues within the U.N. system.
b. uses sustainable development tactics to stop the use of ozone-depleting chemicals.
c. identifies existing problems that can be corrected to protect human health and welfare.
d. came into effect as the result of the Exxon Valdez oil spill.
Answer:
C
Explanation:
The commission on sustainable development overseas the development in all aspects of human health and welfare
What is the future value of $1800 invested today at 18% interest in 30 years with interest compounded quarterly?
A. $300,154.84
B. $9.15
C. $354,182.71
D. $258,067.15
E. $394,832.66
Answer:
Future value of amount will be $354182.711
So option (C) will be the correct option
Explanation:
We have given present value [tex]P=$1800[/tex]
Rate of interest r = 18 %
Time t = 30 years
As interest is paid quarterly so
Rate of interest [tex]r=\frac{18}{4}=4.5%[/tex]
And time period = 30×4 = 120
Future value is given by [tex]A=P(1+\frac{r}{100})^n=1800\times (1+\frac{4.5}{100})^{120}=1800\times 196.768=$354182.711[/tex]
So future value of amount will be $354182.711
So option (C) will be the correct option
Siebel Incorporated, a non-publicly traded company, has 2009 after-tax earnings of $25 million, which are expected to grow at 6 percent annually into the foreseeable future. The firm is debt-free, capital spending equals the firm's rate of depreciation; and the annual change in working capital is expected to be minimal. The firm's beta is estimated to be 2.5, the 10-year Treasury bond is 5 percent, and the historical risk premium of stocks over the risk-free rate is 6.0 percent. Publicly-traded Rand Technology, a direct competitor of Siebel's, was sold recently at a purchase price of 10 times its 2009 after-tax earnings, which included a 25 percent premium over its current market price. Aware of the premium paid for the purchase of Rand, Siebel's equity owners would like to determine what it might be worth if they were to attempt to sell the firm in the near future. They chose to value the firm using the discounted cash flow and comparable recent transactions methods. They believe that either method provides an equally valid. Estimate of the firm's value.
a What is the value of Siebel using the DCF method?
b What is the value using the comparable recent transactions method?
c What would be the value of the firm if we combine the results of both methods?
Answer:
Answer of each requirement is given seperatly below.
a What is the value of Siebel using the DCF method?
Value under DCF = CF * (1+growth rate)/ (WAAC" -Growth rate)
Putting values (assuming after tax earning is all in cash)
Value of SI = 25 (1+6%)/ 20%-6% = 189 million dollars
"WAAC calculation
Here WAAC is equal to cost of equity (ke) as company is debt free.
so
Ke = risk free rate + beta (risk premium)
= 5 + 2.5 (6) = 20%
b What is the value using the comparable recent transactions method?
Based on recent tansaction the value of siebel incorporated will be calculated as shown below
Value of SI = Profit afte * 10 = 25 * 10 = 250 million dollars
Publicly-traded Rand Technology, a direct competitor of Siebel's sale is taken as bench mark.
c What would be the value of the firm if we combine the results of both methods?
By combining value of both value technique we get 189 + 250 = 439 million dollars.
Using the DCF method, Siebel is valued at $185.2 million. Using the comparable transactions method, Siebel is valued at $250 million. Averaging these values, Siebel's value is $217.6 million.
Explanation:a)
Discounted Cash Flow (DCF) method
: This method relies on forecasting how much cash flow the company will generate in the future and then, using an expected rate of return, calculating how much that cash flow is worth. The rate of return is calculated using the Capital Asset Pricing Model (CAPM), where the required rate of return equals the rate on a risk-free security plus a risk premium. Given Siebel's beta of 2.5, the 10-year Treasury bond rate of 5 percent, and the historical risk premium of 6 percent, the required rate of return for Siebel's equity is 20 percent (5% + 2.5×6%). Assuming constant growth of 6%, the DCF value is the earnings divided by (rate of return - growth rate) or $25million / (20% - 6%) = $185.2 million.
b) Comparable recent transactions method: This method involves valuing a company based on the sale price of a similar company in a similar industry. In this case, Rand Technology was sold at 10 times its after-tax earnings (including a 25% premium). Therefore, Siebel would be valued at 10 times its earnings of $25 million, equal to $250 million.
c) If we take the average of these two methods, we get a valuation for Siebel of $217.6 million (($185.2 million + $250 million) / 2).
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Highlander Technologies makes three types of smart phones: the HipI, the HipII, and the OldGeezer. Each smart phone requires some labor, in the fabrication department, in the assembly department, and in the shipping department. The smart phones are sold through a local dealer who has estimated the maximum demand for the coming quarter for the HipI, the HipII, and the OldGeezer of 300, 250, and 100 units respectively. The dealer makes profit of, $15, $24, and $18 for the HipI, the HipII, and the OldGeezer respectively. The fabrication department has a maximum of 1850 hours for the quarter. The assembly department has a maximum of 2400 hours for the quarter. The shipping department has a maximum of 1500 hours for the quarter. The HipI model requires 4 hours, 3 hours, and 3 hours for fabrication, assembly, and shipping respectively. The HipII model requires 6 hours, 5 hours, and 2 hours for fabrication, assembly, and shipping respectively. The OldGeezer requires 2 hours, 7 hours, and 4 hours for fabrication, assembly, and shipping respectively. The goal is to maximize profit with the best product mix. Work-in-progress is OK.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
A consumer buying cooperative tested the effective heating area of 20 different electric space heaters with different wattages. Here are the results. Heater Wattage Area 1 1,500 131 2 1,500 142 3 750 111 4 1,500 264 5 1,250 237 6 1,750 267 7 1,500 61 8 2,000 135 9 2,000 263 10 2,000 263 11 750 125 12 1,500 76 13 2,000 77 14 750 170 15 1,000 165 16 1,000 152 17 1,000 238 18 1,750 209 19 1,250 167 20 1,750 75
Answer:
Using following equation
Q=KDT/Dx
DT=25
K=9.97
Dx=5
The heat transfer will be
Q=48.989 W
Suppose Presented below is 2022 information for for PepsiCo, Inc. and The Coca-Cola Company. ($ in millions)
PepsiCo Coca-Cola
Net cash provided by operating activities $7,296 $7,893
Average current liabilities 7,906 13,159
Net income 5,581 6,858
Sales revenue 40,232 28,244
Capital expenditures 2,112 1,800
Dividends paid 2,605 3,928
Required:
1. Compute free cash flow for both companies and compare.
Answer:
$2,579; $2,165
Pepsi Co.
Explanation:
Pepsi Co
Free cash flows:
= Cash provided by operating activities - Capital expenditures - dividends
= $7,296 - $2,112 - $2,605
= $2,579
Coca-Cola
Free cash flows:
= Cash provided by operating activities - Capital expenditures - Dividends
= $7,893 - $1,800 - $3,928
= $2,165
By the comparing the cash flows of these two companies, we have found that Pepsi company has the higher free cash flows.
Exercise 11-2 Blossom Company had these transactions during the current period. June 12 Issued 78,000 shares of $1 par value common stock for cash of $292,500. July 11 Issued 2,500 shares of $100 par value preferred stock for cash at $104 per share. Nov. 28 Purchased 1,000 shares of treasury stock for $7,100.Prepare the journal entries for the Blossom Company transactions.
Answer:
Explanation:
The journal entries are shown below:
1. Cash A/c Dr $292,500
To Common Stock $78,000 (78,000 × $1)
To Additional Paid-in Capital in excess of par - Common Stock $214,500
(Being the issue of the stock is recorded and the balance remaining is credited to the additional paid-in capital account)
2. Cash A/c Dr $260,000 (2,500 shares × $104)
To Preferred stock $250,000 (2,500 shares × $100)
To Additional Paid-in Capital in excess of par - Preferred Stock $10,000
(Being the issue of the stock is recorded and the balance remaining is credited to the additional paid-in capital account)
3. Treasury stock A/c Dr $7,100
To Cash A/c $7,100
(Being the treasury stock is purchased for cash)
A 90-day note dated August 26 matures on which of the following dates?
A. November 23
B. November 24
C. November 25
D. November 26
Answer:
B. November 24
Explanation:
The computation of the number of days is shown below:
= 5 days in August month+ 30 days in September month + 31 days in October month + 24 days in November month
It covers the 90 days from August to November month
The maturity date is that date on which the note is matures
And, the 5 days comes from 31 days in august - 26 days in august month
In which of the following situations would each of the members be responsible for producing an equal share of the total amount of output sold by the cartel engaged in joint profit maximization?
A) When the amount of revenue generated by each member of the cartel is the same.
B) When there are no economies of scale in production.
C) When each member of the cartel is using the same scale of production.
D) When marginal costs of production are the same for each of the members of the cartel.
Answer:
In which of the following situations would each of the members be responsible for producing an equal share of the total amount of output sold by the cartel engaged in joint profit maximization?
When marginal costs of production are the same for each of the members of the cartel.
Explanation:
D
A building acquired at the beginning of the year at a cost of $1,375,000 has an estimated residual value of $250,000 and an estimated useful life of 40 years. Determine (A) the double-declining-balance rate and (B) the double-declining-balance depreciation for the first year.
Answer:
a. 5%
b. $68,750
Explanation:
The computation is shown below:
a. The double-declining balance rate would be
= One ÷ estimated useful life
= 1 ÷ 40 years
= 0.025 or 2.5%
Now the rate is double So, 5%
b. In year 1, the original cost is $1,375,000, so the depreciation is $after applying the 5% depreciation rate is $68,750
In mathematically, it would be
= $1,375,000 × 5%
= $68,750
The double-declining-balance rate for a building with an estimated useful life of 40 years is 5%. The double-declining-balance depreciation for the first year for a building acquired for $1,375,000 would be $68,750.
Explanation:To answer your question, we need to firstly calculate the double-declining-balance rate. This is determined by dividing 1 by the estimated useful life of the asset and then doubling the result. So, for a 40-year life, the rate would be (1/40) * 2 = 0.05 or 5%.
For the double-declining-balance depreciation in the first year, you would multiply the initial cost of the asset by the double-declining-balance rate. In this case, $1,375,000 * 0.05 = $68,750 is the depreciation for the first year.
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Structural unemployment is caused bya. short-term changes in the economy.b. temporary layoffs in industries such as construction.c. hifts in the economy that make certain job skills obsolete.d. the impact of the business cycle on job opportunities.2. Which of the following statements is true?a. According to supply-side fiscal policy, lower tax rates would shift the aggregate demand curve to the right, expanding the economy and creating some inflation.b. To combat inflation, Keynesians recommend lower taxes and greater government spending.c. The presence of the automatic stabilizers tends to destabilize the economy.d. Above the optimal tax rate, a reduction in tax rates along the downward-sloping portion of the Laffer curve would increase tax revenues.
Answer:
Consider the following explanation
Explanation:
1. Option C.
Structural unemployment is a type of unemployment which occurs naturally when the economy shifts in time.
This forces certain job skills to become obsolete, due to which mismatch of skills and the jobs available in the economy.
Many workers are also laid off as their jobs no longer match their current skills.
2. Option D.
A laffer curve is a curve which shows a relationship between the taxes imposed within an economy and the tax revenues collected from the imposed taxes.
Above the optimal tax rate, a reduction in tax rates along the downward sloping portion of the laffer curve would increase the tax revenue's.
"The Carla Vista Boat Company's bank statement for the month of November showed a balance per bank of $8,500. The company's Cash account in the general ledger had a balance of $5,536 at November 30. Other information is as follows:
(1) Cash receipts for November 30 recorded on the company's books were $6,480 but this amount does not appear on the bank statement.
(2) The bank statement shows a debit memorandum for $50 for check printing charges.
(3) Check No. 119 payable to Sunland Company was recorded in the cash payments journal and cleared the bank for $368. A review of the accounts payable subsidiary ledger shows a $18 credit balance in the account of Sunland Company and that the payment to them should have been for $386.
(4) The total amount of checks still outstanding at November 30 amounted to $6,260.
(5) Check No. 138 was correctly written and paid by the bank for $506. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $560.
(6) The bank returned an NSF check from a customer for $700. (7) The bank included a credit memorandum for $3,880 which represents a collection of a customer's note by the bank for the company; the principal amount of the note was $3,748 and interest was $132. Interest has not been accrued. Prepare a bank reconciliation for the Carla Vista Boat Company at November 30.
Prepare a bank reconciliation for the Carla Vista Boat Company at November 30 AND Prepare any adjusting entries necessary as a result of the bank reconciliation
Answer:
Explanation:
The Carla Boat Company
Bank Reconciliation Statement
as at 30th November
Balance as per bank balance $8,500
Add: Uncredited payment $6,480
Add: Bank Charges $50
Add: Returned Chq $700
Less: Outstanding Chqs ($6,260)
Less: Note received ($3,880)
Less: transposition error on payment ($54)
Balance as per cash book $5,536
Journal entries for transactions:
1. Debit : Bank Charges Expenses $50
Credit: Bank Account $50
Being bank charges expenses for the month of Nov
2. Debit: Cash in bank $54
Credit: Account Payable $54
Being transposition error on Check No 138
3. Debit: Account payable $700
Credit: Bank Account $700
Being NSF check returned
4. Debit: Bank Account $3,880
Credit: Notes Receivable $3,748
Credit: Interest on investment $132
Being note receivable and accrued int
To prepare a bank reconciliation for the Carla Vista Boat Company at November 30, start with the balance per bank, consider items not yet recorded in the bank statement and items recorded on the company's books but not yet cleared the bank. Adjust the balance per bank based on these items and compare it to the Cash account balance in the general ledger. Make adjusting entries to reflect the correct balances.
Explanation:To prepare a bank reconciliation for the Carla Vista Boat Company at November 30, we need to compare the company's Cash account balance in the general ledger with the balance per the bank statement.
Starting with the balance per bank, which is $8,500, we need to take into consideration the items that are not yet recorded in the bank statement. These items include the cash receipts for November 30 ($6,480) that were not yet recorded. So, we add $6,480 to the balance per bank, giving us a corrected balance of $14,980.
We also need to consider the items that have been recorded on the company's books but have not yet cleared the bank. This includes the total amount of checks still outstanding ($6,260). So, we subtract $6,260 from the corrected balance, resulting in a adjusted balance per bank of $8,720.
Now, let's compare this adjusted balance per bank with the balance in the company's Cash account in the general ledger. The Cash account balance is $5,536.
To reconcile the difference, we need to consider the items that have been recorded on the company's books but have not yet cleared the bank. One of these items is Check No. 138, which was recorded as $560 in the company's Cash account but cleared the bank for $506. So, we subtract the difference of $54 from the Cash account balance, giving us a reconciled balance of $5,482.
We also need to consider the payment to Sunland Company, which was recorded for $368 but should have been $386 according to the accounts payable subsidiary ledger. So, we subtract the difference of $18 from the Cash account balance, resulting in a reconciled balance of $5,464.
Finally, we need to consider the debit memorandum for $50 for check printing charges. This charge is not yet recorded in the company's Cash account, so we subtract $50 from the reconciled balance, giving us a final adjusted balance of $5,414.
In summary, the bank reconciliation for the Carla Vista Boat Company at November 30 shows an adjusted balance per bank of $5,414, which is the reconciled balance between the balance per bank and the Cash account balance in the general ledger.
As for the adjusting entries necessary as a result of the bank reconciliation, we need to record the cash receipts for November 30 ($6,480) and the check printing charges ($50) in the Cash account. These will increase the Cash account balance by $6,530. We also need to adjust the payment to Sunland Company to the correct amount of $386, increasing the Cash account balance by $18. Therefore, the total adjustment to the Cash account is $6,548.
In the long run, firms under monopolistic competition_____ A. Standardize their products. B. Face perfectly elastic demand curves. C. Earn zero economic profit. D. Produce output at minimum average cost.
Answer:
The correct answer is letter "C": Earn zero economic profit.
Explanation:
For markets that have many companies offering similar products or services, monopolistic competition exists. Restaurants, grocery stores, and clothing stores, for example. Such similar products or services are not ideal replacements for each other in monopolistic competition. In the short run, the economic profit of the firms is positive but in the long run, the economic profit approaches to zero.
Blair Madison Co. issues $1.9 million of new stock and pays $281,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.59 million in a new bond issue and paid off existing bonds with a face value of $2.45 million. The company bought 509 of another company's $1,090 bonds at a $109,000 premium. The net cash flow provided by financing activities is:
Answer:
$759,000
Explanation:
Given that,
New stock issues = $1.9 million
Dividend paid in cash during the year = $281,000
The net cash flow provided by financing activities is:
= Million new stock issue increase in cash - Cash dividend decrease in cash + Increase in cash - Decrease in cash
= $1,900,000 - $281,000 + $1,590,000 - $2,450,000
= $759,000
During the recession of 2007-2009, the U.S. economy was experiencing a decrease in home prices and consumer wealth, a credit crisis in the financial markets, and declining consumer and business confidence. a. What components of aggregate demand were affected and what was the impact on real output? b. What were the policy options?
Answer:Answer The business sector (b)The policy option is the fiscal policy
Explanation:
Recession can be defined as a state of economic declines in a country which in turn lead to decline in the GDP of a country as well as increase in the rate of unemployment in the country. It is a period of slow business activities in the country which can last for period of six months or a year depending on the quick response of the handlers of the economy to quickly put the situation under control. It is a period of slow growth in the economy. In a period of recession, the business sector experience lack of credit facility which arise due to the inability of the banking sector of the economy to lend to the business sector.. during these period there is a decrease in consumer spending, in the sense that, the demand for goods and services by the households will reduced drastically as a result of the reduction in the purchasing power of the people.
However, with a view to bring the economy under control, the policy option to be adopted is the fiscal policy in which the government can increase their spending on the economy, The fiscal policy also includes the reduction of the income tax as a way of increasing the purchasing power of the people. In addition, The banking sector will also be encouraged to start lending to the business sector as a way of boosting the economy and bring back the economy to the path of growth.
On a reset date, floating-rate notes:
Multiple Choice:
O experience very volatile price changes.
O market price will usually gravitate toward par.
O market price will usually gravitate toward par, unless the borrowers’ credit rating has declined.
O none of the options
Answer:
The correct answer is letter "B" and "C": market price will usually gravitate toward par; market price will usually gravitate toward par, unless the borrowers’ credit rating has declined.
Explanation:
A floating-rate note is a debt instrument with an interest rate that floats or varies. They are also called floaters. Financial institutions and governments typically issue floaters. Floaters can protect investors because they gain more when interest rates rise, unlike fixed-rate bonds which lose value when rates rise. Then, it is said that the market price will gravitate towards par unless the borrower's credit rating declines.