John loans George money and they sign a written agreement whereby George will repay John in monthly installments. Is this loan subject to the Truth-n-Lending Act? No, if John is not in the business of offering credit

Increase the promotion budget to gain greater awareness

Explanation:

Answer:

g.- LIFO as the cost of good sold will be based on the lattest unit thus, the more expensive under inflationary environment.

3.- FIFO as will declare cost the oldest unit (cheapest) and keep under inventory the newest (more expensive) units

4.- It should minimize holding and order cost using the economic quantity order

Then it will have to match their payment cycle with the collection cycle.

It will be better to pay just before 30 days so it pays nominal but after 30 days it will benefit from the inflation thus, it will be like 2% or 3% cheap as inflation per month is abotu that. I would be like paying with discount

Is important to do not led the invoice outdate as the supplier will charge high interest to compensate the inflation (inlation premium )

Explanation:

Xia should make the part because it would be more cost-effective compared to buying the part.

The relevant costs for Xia to make or buy the part include the direct materials, direct labor, overhead, and incremental overhead. Xia believes that making the part would require $7.20 per unit of direct materials, $1.05 per unit of direct labor, and an incremental overhead rate of $0.75 per unit. To calculate the overhead cost, Xia uses a predetermined overhead rate of 245% of direct labor cost.

Therefore, the relevant costs for Xia to make the part would be -

$7.20 (direct materials) + $1.05 (direct labor) + (245% * $1.05) (overhead) + $0.75 (incremental overhead). On the other hand, if Xia were to buy the part, the relevant cost would be $10 per unit.

Comparing the relevant costs, Xia should make the part if the cost of making is lower than the cost of buying. In this case, the cost of making the part is $9.508125 (rounded to 2 decimal places) per unit, while the cost of buying the part is $10 per unit. Therefore, Xia should make the part, as it would be more cost-effective.

Answer:

The Sehrish's boss has leadership style of

b. relationship-oriented

Explanation:

Answer:

Allocated administrative cost for mixing is $81000

And allocated administrative cost for for bottling is $81000

Explanation:

We have given total number of employs for mixing = 350

And total number of employs for bottling = 350

Administrative cost = $162000

So total number of employs = 350+350 = 700

So allocation base for mixing [tex]=\frac{350}{700}=0.5[/tex]

So allocated amount for mixing = 0.5×$162000 = $81000

Allocation base for bottling = [tex]=\frac{350}{700}=0.5[/tex]

So allocated amount for bottling = 0.5×$162000 = $81000

Answer:

The correct answer is letter "A": If tax cuts are not evenly distributed across income groups.

Explanation:

Fiscal policy refers to the combined governmental decisions regarding a country's taxing and spending. The term fiscal policy is associated with British economist John Maynard Keynes (1883-1946) who believed governments should influence macroeconomic productivity levels. Though, it could be a trap if it is not allocated correctly among different income groups. Economies such as Brazil, for instance, have allocated higher taxes for low-income people creating economic disparity.

Answer:

(D) Carla keeps $ 2,000 in a bank account in case of emergencies.

Explanation:

In general, we could say that money have these necessary functions on the economy:

1) Money is a medium of exchange

2) Money is a measure of value

3) Money is a store of value

Depending upon the functions above, there will be appearing of the demand for the money. Now, there are 2 types of demand for money:

1) Transactional Demand- is the keeping the money for purchasing. It means you always need some money to conduct your transactions as well. So we could say that, a medium of exchange function of money coincides with this demand type.

2) Asset Demand-is something about keeping the money as a financial asset or creating a store of value for later use. So the liquidity of the money is very essential for this type of demand. Additionally, measure of value and store of value functions will be the characteristics of this type of demand.

In the option A, the point is about purchasing so it is transaction demand. In the option B, there is not any talking about storing the money, but even if he stores the money as gold investment, it will not be liquidity meaning that is why not the asset demand because the prices and values of gold will be changed easily according to the currency. In the option C, the case is about the stocks so there is volatility and the volume of the money will be very volatile and this cannot be considered as an asset. However, in the option D, there is money on the bank account just the store of cash and it could be used as an asset on emergent moments.

Answer:

A

Explanation:

Explanation of how an increase in the reserve ratio impacts the money multiplier, leading to a decrease in its maximum potential value.

The higher the required reserve ratio, the lower the deposit multiplier.

For example, with a required reserve ratio of 0.1, the deposit multiplier is 10. If the ratio increases to 0.2, the deposit multiplier would be 5.

Therefore, if the reserve ratio is raised from 10% to 20%, the maximum potential value of the money multiplier falls from 10 to 5.

Answer:

total rate of return on the Bond = 9.40%

Explanation:

given data

coupon bonds  = 5.8%

bonds price =  $1,030

maturity time = 14 year

required return on the bonds = 5.1 percent

solution

we know here market price of the bond is Present Value of Coupon Payments + Present face Value  

so that face Valueof  bond = $1,000

and here annual Coupon Amount will be

annual coupon amount = $1000 × 5.80%

annual coupon amount = $58

and here Market Price of the Bond will be

Market Price of Bond = Present Value of Coupon Payments + Present face Value    ......................1

here Present Value of Coupon Payments  at PVIFA 5.10% and 14 Years

Present Value Annuity Inflow Factor (PVIFA) =  [tex]\frac{1-(1/(1+r)^t}{r}[/tex]  ....2

Present Value Annuity Inflow Factor =  [tex]\frac{1-(1/(1+0.0510)^14}{0.0510}[/tex]

Present Value Annuity Inflow Factor = 9.83566

and

Present Value Inflow Factor (PVIF) 5.10%, 14 Years= [tex]\frac{1}{(1+r)^t}[/tex]   ...........3

Present Value Inflow Factor (PVIF) = [tex]\frac{1}{(1+0.0510)^14}[/tex]

Present Value Inflow Factor = 0.49838

so

Market Price of Bond = ( $58 × 9.83566 ) + ( $1,000 × 0.49838 )

Market Price of Bond = $1,068.85

so total rate of return on the Bond will be

total rate of return on the Bond = [ { Annual Coupon Amount + ( Change in Bond Price ) } ÷ Current Price]  ...............4

total rate of return on the Bond = [tex]\frac{58+(1068.85-1030)}{1030}[/tex]

total rate of return on the Bond = 9.40%

Answer:

a. The firm will look at the demand curve to find out what it could charge for that quantity of output.

Explanation:

The monopolistic competition market has a large number of competing vendors and producers. In this type of market, firms compete by producing substitute (differentiated) goods that can replace each other, not homogeneous goods, while competing. The production of differentiated goods gives this market a competitive and monopolistic character, but because there are many vendors in the market, prices cannot be determined by a small number of companies. What is important in the monopolistic competition market is that the goods are attractive, preferable and indispensable. Characteristics of monopolistic competition:

1) Many sellers.

2) Differentiated products, products are not exactly the same as in the competitive market. Firms are not the determinants of the price.

3) Companies can enter and exit the market without restrictions. This traffic continues until the profit of the firms is worthless.

A profit-maximizing monopolistic competitor will have a target of the quantity in that case, marginal revenue should be equal to marginal cost and then he monopolistic competitor will start generate that level of output and finally, will decide charge the price which is indicated by the firm's demand curve. That demand curve will not be flat but downward sloped.

The accounting rate of return (ARR) for the machine is calculated to be 41.22%. However, none of the provided options a-d match this calculation, suggesting there's an error with the options given. ARR measures the profitability of an investment in percentage terms.

To calculate the accounting rate of return (ARR) for the machine, we use the formula:

ARR = (Average Annual Profit / Initial Investment) x 100

First, we calculate the average annual profit (Net Income) after depreciation and taxes, which is given as $12,120. The initial investment is the cost of the machine, which is $29,400. Plugging these into the formula gives us:

ARR = ($12,120 / $29,400) x 100

ARR = 41.22%

The ARR is used to determine the profitability of an investment, and it is clear that none of the choices (6.00 years, b 4.85 years, c 2.43 years, d 173 years) represent a rate, so there seems to be an error in the provided options.

On the basis of the given data and standard ARR calculation, none of options a-d are correct, as they do not reflect a percentage rate of return. The computed ARR here is 41.22%.

The journal entry on January 2, 2017, should be the debiting of Accounts Receivable for $410,000 and the crediting of Sales for $370,000 and Unearned Revenue for $40,000. In terms of revenue recognized in the first quarter of 2017, it should be only the revenue from the sale of the goods, totaling $370,000, as the installation service is not yet completed.

The question relates to the topic of revenue recognition. In this scenario, Shaw Company has two distinct performance obligations: the delivery of goods and the installation service. The total transaction price of $410,000 should be allocated between these two obligations based on their standalone selling prices (in proportion to their relative standalone selling prices).

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Answer:

WACC = 9.76%

Explanation:

First lets calculate the Market value of a firms equity and debt.

Market value of Equity = 963,000 * 3.07 = $2,956,410

Market value of Debt = 441,000 * 3.07 = $1,353,870

WACC =

Weight of equity * return on equity + weight of debt * return on debt * (1 - tax rate)

This gives us,

=[(2956410/(2956410 + 1353870))*0.127]+[(1353870/(2956410+1353870)*0.056] * (1 - 0.40)

WACC = 0.087 + 0.0106 = 0.0976 or 9.76%

Hope that helps.

Answer:

314,000 shares

Explanation:

The number of issued shares in case of 2 for 1 stock split would be

= Number of issued shares ×  stock split ratio

= 157,000 shares × 2

= 314,000 shares

Simply we multiply the Number of issued shares with the stock split ratio so that the accurate number of shares can come

All other information which is given is not relevant. Hence, ignored it

Final answer:

The number of issued shares of Element Corporation after a 2-for-1 stock split will be 314,000 shares, doubling from the original 157,000 shares.

Explanation:

After a 2-for-1 stock split, the number of issued shares of Element Corporation will double. Originally, there were 157,000 shares issued and outstanding. When a company performs a 2-for-1 stock split, each share is divided into two, so the new number of issued shares will be 314,000 (157,000 shares x 2).

Answer:

Option (D) is correct.

Explanation:

It was given that video game is a normal good. We know that there is a positive relationship between the demand for a normal good and income of the consumer, hence, if there is an increase in the income level of the consumer then as a result the demand for a normal good increases which shifts the demand curve for normal good rightwards.

Therefore, this will lead to increase both equilibrium price and equilibrium quantity in the market for video games.

Final answer:

If the income of video game players increases, d) both the equilibrium price and quantity in the market for video games will increase.

Explanation:

Equilibrium price and quantity refer to the point in a market where the demand for a good or service equals its supply, establishing a balance between buyers and sellers. At this equilibrium, the market-clearing price and quantity are determined, ensuring that all units offered by producers are bought by consumers. Changes in demand or supply can shift the equilibrium, leading to adjustments in price and quantity.

In the market for video games, if the income of video game players increases, it will result in an increase in demand for video games. This can be seen as a shift in the demand curve to the right. As a result, both the equilibrium price and quantity will increase.

Answer:

Option (B) is correct.

Explanation:

Annual Subscription:

= 6000 × $125

= $750,000

Since, the payment was received for 1 Year, we will recognize 4 months revenue (1 September till 31st December) in the given year:

= $750,000 × (4/12)

=  $250,000

Unearned Revenue as on 31st December:

= Total Payment Received - Revenue Recognized for 4 months

= $750,000 - $250,000

= $500,000

The unearned revenue for Vista newspapers as of December 31 is $500,000, which is the correct choice. This is found by calculating the monthly revenue from the total annual subscriptions and then multiplying it by the remaining eight months of the subscription period.

The question pertains to the accounting concept of unearned revenue, which is relevant when a company receives payment for goods or services that have not yet been delivered or rendered. In this scenario, Vista newspapers sold 6,000 annual subscriptions at $125 each, totaling $750,000 in revenue on September 1. Since subscriptions cover an entire year, as of December 31, four months of the service will have been provided, leaving eight months unearned.

To calculate the unearned revenue as of December 31, we divide the total revenue by 12 months to get the monthly revenue and then multiply by the 8 months of service that will remain unprovided at that date:

Therefore, option b, $500,000, is the correct amount of unearned revenue that will exist as of December 31.

Answer:

The correct answer is letter "E": Derived demand.

Explanation:

Derived demand implies the quantity requested to manufacture a good is directly related to the supply requested from the market. If the demand for the good increases, it means the quantity of the materials needed to manufacture that good will increase as well.

Answer:

Yes the company should you pursue the project.

Explanation:

This problem requires us to tell whether we should pursue the project or not. The IRR of the project is given in the question and WAAC is required to be calculated. The company should accept the project if IRR (10%) is greater than or equal to company's WAAC.

So let calculate waac first.

WAAC = 80%* 8.5% (100% -21%) + 20% * 11%

          = 5.4% + 2.2 %

          = 7.6%

based on above mentioned rule the company should pursue the project.

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.  

Answer:

Orion has a comparative advantage in the production of granite .

Scorpius has a comparative advantage in the production of Blueberries.

Explanation:

We have the relative cost for Orion of producing one Ton of Granite is: 9/6 = 1.5 Bushels of Blueberries, while the relative cost for Scorpius of producing one ton of Granite is : 7/3 = 2.33 Bushels of Blueberries. Thus, Orion has comparative advantage of producing Granite.

We have the relative cost for Orion of producing one Bushels of Blueberries is: 6/9 = 0.67 ton of granite, while the relative cost for Scorpius of producing one Bushels of Blueberries is : 3/7 = 0.43 ton of granite. Thus, Scorpius has comparative advantage of producing Blueberries.

Orion has a comparative advantage in both the production of granite and blueberries as its workers are more productive in producing both goods in comparison to Scorpius.

In the context of this question, comparative advantage refers to a country's ability to produce a particular good more efficiently (using less labor) relative to other goods. To determine who has a comparative advantage, we compare labor productivity of each worker in both countries.

(1) Orion workers produce 6 tons of granite compared to 3 tons by Scorpius workers, so Orion has a comparative advantage in the production of granite.

(2) A comparison of blueberry production shows that an Orion worker produces 9 bushels of blueberries, while a Scorpius worker produces 7. So, Orion also has a comparative advantage in the production of Blueberries.

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Answer:

B. is able to accumulate tax-free interest earnings on cash values.

Explanation: whole life insurance policy also known as permanent life insurance,is an insurance policy where people who buy the policy are deferred from paying tax,this policy ensure that you pay the same amount of premium throughout the policy,it is a policy that is not termed and it doesn't expire it can last up to 120years.

Answer:

An index fund manager is expected to generate a return that matches the particular index he has chosen.

Explanation:

An index fund manager is required to generate a return that matches a chosen index so as to cover all the expenses relating to the index he is managing.

Answer:

Annual depreciation= $8,000

Explanation:

Giving the following information:

On January 1, Year 1, Toy Factory purchases a patent for a printing process for $40,000.

The company estimates that the useful life of the patent is only 5 more years.

To calculate the depreciation for the year, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= 40,000/5= $8,000

Answer:

Total= $202,500

Explanation:

Giving the following information:

Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase.

To calculate the August cash disbursement, we need to use the following formula:

Cash= total August cash required + cash from July

Cash for August:

August= 210,000*0.75= 157,500

From July= 180,000*0.25= 45,000

Total= $202,500

Answer:

The least important is the Option A "The price of a competitor's output". It has no influence in the decision of the manager about the inputs in the production process. The choice of inputs will depend on the technology, prices of the inputs and their marginal productivities.

Explanation:

The least important is the Option A "The price of a competitor's output". It has no influence in the decision of the manager about the inputs in the production process. The choice of inputs will depend on the technology, prices of the inputs and their marginal productivities.

Option B: The technology of the production process could affect the decision about the inputs employed because they are closely related.

Option C: The marginal productivity affect the decision about the inputs because it determines how the productivity can be maximized.

Option D: The prices of the inputs affect the decision because low price inputs (related with their marginal productivity) will be prefer to the high price inputs.

The technology of the production process would have the least amount of influence on a manager's choice of which inputs to employ.

The correct answer is B. The technology of the production process. A manager's choice of which inputs to employ in a production process is usually influenced by several factors, such as the price of a competitor's output, the marginal productivity of the inputs, and the prices of the inputs. However, out of the given options, the technology of the production process would have the least amount of influence on a manager's choice. This is because the technology determines how the inputs are used but does not directly affect the selection of inputs.

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Answer:a

Explanation:

One weakness of present value models is that small changes in model assumptions and inputs can lead to significant changes in valuation. Additionally, comparing valuations of different companies for different investors is challenging due to the dependence on the investor's holding period.

A weakness of present value models is that small changes in model assumptions and inputs can result in large changes in the computed intrinsic value of the security. This means that even slight variations in factors such as interest rates or dividend expectations can significantly impact the valuation of a security.

Furthermore, the value of a security depends on the investor's holding period, making it difficult to compare valuations of different companies for different investors. Each investor may have different expectations and investment strategies, which can lead to different valuation outcomes.

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With the decrease in the supply of the hogs in the market, there was an excess demand due to which the price of hogs in the market rose from the previous level.

Explanation:

In the year 2014, the price of the hogs in the market of the United States of America was 58 cents per pound. But with the decrease in the supply of the hogs in the market of the country, the supply curve of the same shifted towards the left side.

This created a situation of excess demand in the country because the supply in the market could not fulfill the supply of the hogs in the market. So this led to the price of the hogs rise. In the year 2015, there fore the price of hogs in the market was 81 cents per pound. This was higher than the price compared to the previous year.

Answer:

A. $8,640.

Explanation:

Formula:  Units of Production Depreciation

Annual Depreciation=Depreciable Value×Units produced during the year/Estimated total production

Annual Depreciation = $24,000 *36,000/100,000= $ 8640

Depreciable Value = Original cost – Scrap value= $26,000- $ 2000= $ 24000

To record the sale of 3,500 units by Evans Products, you calculate the total cost of goods sold (COGS) by multiplying the number of units sold by the unit cost, resulting in a COGS of $77,000. The journal entry would involve debiting the Sales account and crediting Revenue for the total sales amount, and debiting COGS and crediting Inventory for $77,000.

The question involves the accounting process of recording the sale of goods in a company that uses a process costing system. The unit costs incurred by the Mixing Department are $4.00 per unit, and the costs transferred to the finished goods warehouse are $22 per unit. Since work-in-process inventories are reduced to zero each month, and the sale involves 3,500 units, to record the sale, you'd first need to calculate the total cost of the goods sold (COGS) which would be 3,500 units x $22/unit. Then, you would debit the Sales account and credit the Revenue account for the total sales amount, and debit the COGS account and credit the Inventory account for the total COGS.

Using accounting equations:

Total COGS = Number of units sold x Cost per unit

Total COGS = 3,500 units x $22/unit

Total COGS = $77,000

The journal entry would be:

Debit Sales (for the total sales amount)

Credit Revenue (for the total sales amount)

Debit COGS (for $77,000)

Credit Inventory (for $77,000)

Evans Products records the sale of units by debiting Accounts Receivable or Cash and crediting Sales Revenue for the total sales amount. It additionally debits Cost of Goods Sold and credits Finished Goods Inventory for the cost associated with the number of units sold, in this case, 3,500 units at $22 each.

The subject of this question involves understanding process costing in the manufacturing industry, specifically within a company named Evans Products. The student is asked about the accounting entry related to sales in the context of a company that has a process costing system with two processing departments.

In this scenario, Evans Products has no remaining work-in-process inventories at the end of the month, and the unit costs after processing in the Mixing Department and Finishing Department sum up to $22 per unit. For the sale of 3,500 units, the total cost of goods sold (COGS) will be 3,500 units multiplied by $22, which is $77,000. Assuming the sales revenue per unit is greater than or equal to COGS, the entry to record sales would include a debit to Accounts Receivable or Cash (depending on whether the sale was on credit or for cash), and a credit to Sales Revenue for the total sales amount. Additionally, a debit to Cost of Goods Sold and a credit to Finished Goods Inventory would be recorded for $77,000.

Answer:

Retained earnings   26,000 debit

         Inventory                       26,000 credit

--to adjust for change of method--

Average cost per unit $49

COGS:                 11,000 units x $ 49 =  539,000

Ending Inventory 8,500 units x $ 49 =  416,500

Explanation:

Beginning inventory, FIFO (6,500 units @ $45.00) $ 292,500

Beginning inventory Average                                   $ 266,500  

Difference between methods                                        26,000

We will adjust inventory against retained earnings as a lower or higher inventory will represent higher or lower COGS respectively

beginning inventory            $ 266,500

Purchases:

6,500 units @ $51.00  $ 331,500

6,500 units @ $55.00 $ 357,500

                                                689,000

Total good avilable for sale:   955,500

Units available for sale:              19,500    

Average cost per unit: 955,500 / 19,500 = $ 49

COGS: 11,000 x $ 49 = 539,000

Ending Inventory 8,500 x $ 49 =  416,500