Answer:
note receivables 12,000 debit
accounts receivables 12,000 credit
--to record reception of note from Dan Gore to settle his account--
Accounts receivables 16000 debit
Sales revenues 16.000 credit
--to record sale in account--
sales returns&allowance 1,300 debit
Accounts receivables 1,300 credit
--to record returned goods--
cash 14,259 debit
sales discount 441 debit
Accounts receivable 14,700 credit
--to record payment from Barlow--
cash 12,960 debit
interest revenue 960 credit
note receivable 12,000 credit
--to record collection of promissory note from Dan Gore--
Explanation:
Barlow invoice transactions:
16,000 invoice nominal
- 1,300 returned goods
14,700 amount subject to discount of 3%
- 441 discount as collected within first ten days
14,259 cash proceeds
Dan Gore promissory note:
principal x rate x time
12,000 x 8% per year x 1 year = 960 interest revenue
total 12,000 + 960 = 12,960
This answer provides journal entries to record various transactions entered into by Ayayai Corp, including receiving a note from Dan Gore, selling merchandise on account, receiving payment in full, and honoring the promissory note.
Explanation:June 1: Ayayai Corp receives a $12,000, 8%, 1-year note from Dan Gore as full payment on his account. The journal entry would be:
Notes Receivable $12,000
Accounts Receivable $12,000
Nov. 1: Ayayai Corp sells merchandise on account to Barlow, Inc., for $16,000, terms 3/10, n/30. The journal entry would be:
Accounts Receivable $16,000
Sales Revenue $16,000
Nov. 5: Barlow, Inc., returns merchandise worth $1,300. The journal entry would be:
Sales Returns and Allowances $1,300
Accounts Receivable $1,300
Nov. 9: Ayayai Corp receives payment in full from Barlow, Inc. The journal entry would be:
Cash $15,540 ($16,000 - $460 discount)
Sales Discount $460
Accounts Receivable $16,000
Dec. 31: Ayayai Corp accrues interest on Gore's note. Since it is a 1-year note, the journal entry would be:
Interest Receivable $800 ($12,000 x 8% x (7/12))
Interest Revenue $800
June 1, 2022: Dan Gore honors his promissory note by sending the face amount plus interest. The journal entry would be:
Notes Receivable $13,920 ($12,000 + $1,920
Interest Receivable $1,920
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At the beginning of 2017, investors had invested $25,000 of common equity in Grant Corp. and expect to earn a return of 11% per year. In addition, investors expect Grant Corp. to pay out 100% of income in dividends each year. Forecasts of Grant's net income are as follows: 2017: $3,500 2018: $3,200 2019: $2,900 2020 and beyond: $2,750 (no growth) Use this information to compute Grant Corp.'s expected residual income for the year 2017?
Answer:
$750.
Explanation:
By Capital assets Pricing Model,
Equity Charge:
= Equity Capital × Cost of Equity
= 25,000 × 0.11
= $ 2750
If in year 2017, Net income = $ 3500,
then Residual income = Net income - Equity Charge
= 3500 - 2750
= $750.
Since residual income is positive, Its profitable and growth venture from a shareholder's perspective.
Use the following method to calculate the yearly depreciation allowances and book values for a firm that has purchased $150,000 worth of office equipment that qualifies as depreciation property. The equipment is estimated to have a salvage (market) value of $30,000 (20% of the original cost) after the end of its 10-year depreciable life.
a. Straight line
b. MACRS
c. Sum-of-Years' Digits
Answer:
a. Straight Line Method Depreciation= $ 2400
b. MACRS
c. Sum-of-Years' Digits
Explanation:
a. Straight Line Method Depreciation=
Purchase Cost- Salvage Value/ No of useful life *depreciation rate
=$ 150,000- $30,000/10 * 20%
=120,000/10* 20%= 12000* 20/100=$ 2400
b. MACRS
Since it is a non-form 10-year property, the company can elect to use either the 150% or 200% declining balance method.
Depreciation in 1st Year = Cost × 1/Useful Life × A × Depreciation Convention
Depreciation in Subsequent Years =
(Cost − Depreciation in Previous Years) × 1/ Recovery Period × A
Where,
A is 100% or 150% or 200%.
Depreciation for the the first year $ 150,000/10 *200%= $30,000
Depreciation for the the 2nd year =$ 150,000-30,000/10 *200%= $24,000
Depreciation for the the third year =$ 150,000-30,000- 24000/10 *200%
=$ 19,200
Depreciation for the the 4th year $ 150,000-30,000-24000-19200/10 *200%= Note A
Note A: MACRS declining balance changes to straight-line method when that method provides an equal or greater deduction. Deduction under 200% declining balance MACRS for 4th year would be $ 153,600 ($150000 - $30,000 - $24000 - $19200 × 1/10 × 200%. This is greater than depreciation under straight line method .
c. Sum-of-Years' Digits Method Depreciation
Depreciation Amount = Acquisition Cost - Salvage Value = $ 120,000
Sum of useful life= 10+9+8+7+6+5+4+3+2+1= 55
Depreciation Factor = 10/55, 9/55, 8/55, 7/55 etc.
Depreciation for the 1st year= 10/55* 120,000= $ 21,818.2
Depreciation for the 2nd year= 9/55* 120,000= $ 19 636.4
Depreciation for the 3rd year= 8/55* 120,000= $17,546
Depreciation for the 4th year= 7/55* 120,000= $ 15,273
Depreciation for the 5th year= 6/55* 120,000= $ 13,091
Depreciation for the 6th year= 5/55* 120,000= $ 10,909.1
Depreciation for the 7th year= 4/55* 120,000= $ 8727.3
Depreciation for the 8th year= 3/55* 120,000= $ 6545.5
Depreciation for the 9th year= 2/55* 120,000= $4363.63
Depreciation for the 10th year= 1/55* 120,000= $ 2181.81
Suppose your company needs $18 million to build a new assembly line. Your target debt-equity ratio is .7. The flotation cost for new equity is 7 percent, but the flotation cost for debt is only 4 percent. Your boss has decided to fund the project by borrowing money because the flotation costs are lower and the needed funds are relatively small.a. What is your company’s weighted average flotation cost, assuming all equity is raised externally?b. What is the true cost of building the new assembly line after taking flotation costs into account?
Answer:
a. Weighted average flotation cost
= FCE(E/V) + FCD(D/V)
= 7(100/170) + 4(70/170)
= 4.12 + 1.65
= 5.77%
V = E + D
V = 100 + 70 = 170
b. Flotation cost of debt financing
= 4% x $18 million
= $0.72 million
True cost of the building after taking flotation cost into account
= $18 million + $0.72
= $18.72
Explanation:
The weighted average flotation cost is the flotation cost of equity multiplied by the proportion of equity in the capital structure plus flotation cost of debt multiplied by proportion of debt in the capital structure. The total market value is 100 + 70 = 170. Since the debt-equity ratio is 0.7. Debt takes 70 while equity takes 100. The proportion of equity in the capital structure is 100/170 while the proportion of debt in the capital structure is 70/170.
Final answer:
The company's weighted average flotation cost, assuming all equity is raised externally, is 4.9%. The true cost of building the new assembly line after taking flotation costs into account is $18.95 million.
Explanation:
To calculate the weighted average flotation cost, we need to consider the proportions of debt and equity used to fund the project. The flotation cost is the percentage of funds that the company must pay to raise new capital. In this case, the flotation cost for equity is 7% and for debt is 4%. Since the target debt-equity ratio is 0.7, we can calculate the weighted average flotation cost using the formula:
Weighted average flotation cost = (Proportion of debt * Flotation cost of debt) + (Proportion of equity * Flotation cost of equity)
Substituting the given values, we have:
Weighted average flotation cost = (0.7 * 0.04) + (0.3 * 0.07) = 0.028 + 0.021 = 0.049, or 4.9%.
Therefore, the company's weighted average flotation cost, assuming all equity is raised externally, is 4.9%.
To calculate the true cost of building the new assembly line after taking flotation costs into account, we need to consider the total amount of funds needed and the effective rate of return. The true cost can be calculated using the formula:
True cost = Total funds needed / (1 - Flotation cost rate)
Substituting the given values, we have:
True cost = $18 million / (1 - 0.049) = $18 million / 0.951 = $18.95 million.
Therefore, the true cost of building the new assembly line after taking flotation costs into account is $18.95 million.
A company purchased a weaving machine for $264,970. The machine has a useful life of 8 years and a residual value of $14,500. It is estimated that the machine could produce 759,000 bolts of woven fabric over its useful life. In the first year, 109,500 bolts were produced. In the second year, production increased to 113,500 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year?a. $36,135b. $38,227c. $39,623
Answer:
$37,455
Explanation:
The computation of the depreciation per units or bolts under the units-of-production method is shown below:
= (Original cost - residual value) ÷ (estimated production bolts)
= ($264,970 - $14,500) ÷ (759,000 bolts)
= ($250,470) ÷ (759,000 bolts)
= $0.33 per bolt
Now for the second year, it would be
= Production units in second year × depreciation per bolts
= 113,500 units × 0.33
= $37,455
This is the answer and the same is not provided in the given options
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
A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2012. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,109.
What is interest expense for 2013, using straight-line amortization?
a. $1,540,207
b. $1,170,000
c. $1,176,894
d. $1,184,845
Answer:
Option (D) is correct.
Explanation:
Given that,
company issues = $15,000,000 bonds
Rate of interest = 7.8%
Time period = 20 years
Interest expense for 2013:
= (Issued amount × rate) + [(Issued amount - Bonds proceeds) ÷ Time period]
= ($15,000,000 × 7.8%) + [($15,000,000 - $14,703,109) ÷ 20]
= $1,170,000 + $14,845
= $1,184,845
Therefore, the interest expense for 2013, using straight-line amortization is $1,184,845.
What can a manager do when employee personalities are considered?
Explanation:
The work environment is made up of different personality types.
Knowing how to recognize them is extremely important for a manager to better address the strengths and weaknesses of each employee's personality type.
A good manager must know how to understand each individual's individual differences and respect them so that there is good integration between the teams, which are made up of different people with different personalities who still come together to achieve results for the company.
This is why managers need to be able to recognize their team's core motivations and values, so that their decisions are based primarily on their individuality and ethical principles.
Portions of the financial statements for Software Associates are provided below. SOFTWARE ASSOCIATES Income Statement For the year ended December 31, 2021 Net sales $ 710,000 Expenses: Cost of goods sold $ 420,000 Operating expenses 130,000 Depreciation expense 33,000 Income tax expense 49,000 Total expenses 632,000 Net income $ 78,000 SOFTWARE ASSOCIATES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable $ 10,000 Decrease in inventory 13,000 Increase in prepaid rent 3,000 Decrease in salaries payable 4,000 Increase in accounts payable 7,000 Increase in income tax payable 8,000 Required: Prepare the operating activities section of the statement of cash flows for Software Associates using the indirect metho
Answer:
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $78,000
Adjustment made:
Add : Depreciation expense $33,000
Add: Decrease in accounts receivable $10,000
Add: Decrease in inventory $13,000
Add: Increase in accounts payable $7,000
Less: Decrease in salaries payable -$4,000
Add: Increase in income tax payable $8,000
Less: Increase in prepaid rent -$3,000
Total of Adjustments $64,000
Net Cash flow from Operating activities $142,000
To prepare the operating activities section of the statement of cash flows for Software Associates, you can use the indirect method. We need to make adjustments to the net income by adding back non-cash expenses and taking into account changes in working capital accounts.
Explanation:The operating activities section of the statement of cash flows for Software Associates can be prepared using the indirect method. This method starts with net income and adjusts for non-cash expenses and changes in working capital accounts. Here is a breakdown of the adjustments:
Depreciation expense: Add back the amount of depreciation expense, which is a non-cash expense.Decrease in accounts receivable: Add back the decrease in accounts receivable, as it represents cash received from customers.Decrease in inventory: Add back the decrease in inventory, as it indicates cash used for purchasing goods.Increase in prepaid rent: Subtract the increase in prepaid rent, as it represents cash paid for future rent.Decrease in salaries payable: Add back the decrease in salaries payable, as it indicates cash used for paying salaries.Increase in accounts payable: Subtract the increase in accounts payable, as it represents cash used for purchasing goods on credit.Increase in income tax payable: Subtract the increase in income tax payable, as it represents cash used for paying income taxes.By making these adjustments, you can calculate the cash inflows and outflows from operating activities.
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Suppose the price of salt increases by 10 percent and, as a result, the quantity of pepper demanded (holding the price of pepper constant) increases by 1 percent.The cross-price elasticity of demand between salt and pepper is? (Enter your response rounded to two decimal places and include a minus sign if appropriate.) In this example, salt and pepper are?
A. complements,
B. not related,
C. substitute. Instead, suppose salt and pepper were complements. If so, then the cross-price elasticity of demand between saltand pepper would be. A.greater than 1. B. zero. C.greater than minus−1.
D. negative.
E. positive.
Answer:
The cross-price elasticity of demand between salt and pepper is= 0.1 positive.
Salt and pepper are complements.
Explanation:
Lets first understand what elasticity of demand is. Elasticity of demand is the responsiveness of demand to changes in prices only. Now not all products are highly responsive to changes in prices. Such products whose demand changes significantly due to changes in price are referred to as Elastic products and those whose demand doesn't change that much as a result of changes in price are Inelastic products. Examples of inelastic products are, basic necessities like, bread, milk, eggs etc.
The elasticity of demand is measured by the change in quantity demand of a product upon change in price of that product. In this case the cross-price elasticity of demand between salt and pepper is= Change in quantity demand of pepper/ Change in price of Salt
= 1/10=0.1
0.1 elasticity of demand of a product means that product is price inelastic, which means the demand of the product doesn't change as hugely as it's price changes.
The cross-price elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good. In the given example, salt and pepper are substitutes, and the cross-price elasticity of demand between them is positive at 0.10. If they were complements, the cross-price elasticity would be negative.
Explanation:In this example, salt and pepper are substitutes. The cross-price elasticity of demand between salt and pepper measures the responsiveness of the quantity demanded of pepper to a change in the price of salt. To calculate the cross-price elasticity of demand, we divide the percentage change in the quantity demanded of pepper by the percentage change in the price of salt. In this case, since the price of salt increased by 10 percent, and the quantity of pepper demanded increased by 1 percent, the cross-price elasticity of demand between salt and pepper is positive at 0.10.
If salt and pepper were complements, the cross-price elasticity of demand would be negative. Complementary goods are those that are typically consumed together, such as bread and butter, or salt and pepper. When the price of one complementary good increases, the demand for the other complementary good decreases. Therefore, the cross-price elasticity of demand between salt and pepper would be negative.
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Assume the firms in a monopolistically competitive industry initially are earning positive economic profits. Which of the following will not occur over time?
A. The firms' economic profits will be reduced
B. New firms will enter
C. Demand for the existing firms' output will become more inelastic
D. The number of substitutes available in the industry will increase
Answer:
C. Demand for the existing firms' output will become more inelastic
Baldwin’s product Bold has material costs that are rising from $6.80 to $7.80. Assume that period costs and other labor costs remain unchanged. If Baldwin decides to absorb the cost and not pass any on to its customers in the form of raised prices how many units of product Bold would need to be sold next round to break even on the product?
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.
In most cases, what is the most expensive promotion tool?
A) advertisingB) personal sellingC) mass mediaD) public relationsE) publicity
Answer: (B) Personal selling
Explanation:
The person selling is basically refers to the two-way communication process in which we sell our products and the services face to face to the customer.
The personal selling is also known as the interaction form of selling the products to the user.
The personal selling is one of the most expensive promotion tool as it is hardly used for advertising the products. It mainly involve spreading the information regarding the specific organization products and the services.
Therefore, Option (B) is correct.
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.
The following information pertains to the Frameworks Corporation for May. Calculate the cost of goods sold for the period:Beginning Finished Goods Inventory $19,500Ending Finished Goods Inventory$18,000Cost of Goods Manufactured $126,800A. $126,800.B. $125,300.C. $146,300.D. $128,300.E. $164,300.
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Beginning Finished Goods Inventory $19,500
Ending Finished Goods Inventory$18,000
Cost of Goods Manufactured $126,800
To calculate the cost of goods sold we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 19,500 + 126,800 - 18,000= $128,300
Parsons Company is planning to produce 2,800 units of product in 2017. Each unit requires 1.20 pounds of materials at $5.60 per pound and a half-hour of labor at $12.00 per hour. The overhead rate is 70% of direct labor. (a) Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. Direct materials $ Direct labor $ Overhead $ (b) Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.) Standard cost $ Click if you would like to Show Work for this question: Open Show Work
Answer:
a. Budgeted amounts for 2017: $
Direct material (1.20 pounds x $5.60 x 2,800 units) = 18,816
Direct labour (0.5 hr x $12 x 2,800 units) = 16,800
Applied overhead (0.5 hr x $8.40 x 2,800 units) = 11,760
Budgeted amount for 2017 47,376
b. Standard Cost for One Unit of Product
$
Direct material ( 1.20 pounds @ $5.60 per pound) = 6.72
Direct Labour (0.5 hour @ $12 per hour) = 6.00
Overhead (0.5 hours @ $8.40 per hour) = 4.20
Standard cost for one unit of product 16.92
Explanation:
The Budgeted amount for 2017 is the budgeted direct material cost , budgeted direct labour cost and budgeted overhead. Budgeted direct material cost is the product of standard quantity, standard price and budgeted output. Budgeted direct labour cost is the product of standard hours, standard rate and budgeted output. Budgeted overhead is the product of standard hours, standard overhead rate and budgeted output.
The standard cost per unit of product is comprised of standard material cost per unit, standard labour cost per unit and standard overhead cost per unit.
Standard material cost per unit is the product of standard quantity and standard price. Standard labour cost per unit is the product of standard rate and standard hours. Overhead cost per unit is the product of standard overhead rate and standard hours. Standard overhead rate is 70% of $12 = $8.40.
The 2017 budgeted amount for Parsons Company is calculated to be $18,816 for direct materials, $16,800 for direct labor, and $11,760 for overhead. The standard cost of one unit of product based on these costs is $16.92.
Explanation:To compute the budgeted amounts for 2017 for Parsons Company, we first need to calculate the cost for each component: direct materials, direct labor, and overhead.
Direct Materials: Each unit requires 1.20 pounds of materials, so for 2,800 units, it would be 2,800 * 1.20 = 3,360 pounds of materials. The cost for materials is $5.60 per pound, so 3,360 * $5.60 = $18,816. Direct Labor: Each unit requires a half-hour of labor, so for 2,800 units, it would be 2,800 * 0.5 = 1,400 hours of labor. The cost for labor is $12.00 per hour, so 1,400 * $12.00 = $16,800. Overhead: The overhead is 70% of direct labor. Hence, $16,800 * 0.70 = $11,760.
To compute the standard cost of one unit of product, we add the cost per unit of materials, labor, and overhead. The cost per unit for each is:
Direct Materials: $18,816 / 2,800 = $6.72 Direct Labor: $16,800 / 2,800 = $6.00 Overhead: $11,760 / 2,800 = $4.20
The standard cost of one unit is hence, $6.72 + $6.00 + $4.20 = $16.92 (rounded to 2 decimal places).
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Some years ago, the three leading aluminum producers in the U.S. changed prices nine times by exactly the same amount each time and usually within one to three days of the initial price increase. This is an example of _____. Group of answer choices sequential pricing price leadership price discrimination tacit collusion price fixing
Answer:
Price leadership.
Explanation:
Price leadership occurs when a pre-eminent firm (the price leader) sets the price of goods or services in its market. The leading Aluminium producer determine and control the prices leaving the other producer no choice than to follow them.
Evie Adams Using the tax software, complete the tax return, including Form1040 and all appropriate forms, schedules, or worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINs), replace the Xs as directed, or with any four digits of your choice. Interview Notes • Evie is single and has two young girls, Poppy and Lily, who lived with her all year. • Evie paid more than half of the support for her daughters and all the cost of keeping up the home. • Evie was unemployed for two months (March and April). She cashed in her 401(k) and used the money to pay for living expenses. • Evie is paying off a student loan that she took out when she attended college for her bachelor's degree. • She took some courses this year at Southwest College to improve her job skills as an educator. She did not receive a Form 1098-T for 2018. • Evie was an elementary school teacher from May to December and paid $550 out of pocket for classroom supplies. • She went to the local casino and won some money in 2019. During the interview she mentions that she had gambling losses of $700.20. What is the total amount of adjustments on Evie's tax return?a. $250 b. $600 c. $850 d. $1,550
Answer:The answer is a $250
Explanation:
Since she won some money in local casino, and during the interview she reported that she had gambling losses of $700.20, The gambling losses is regarded as income, Therefore total income = $700.20
Adjustment or above the line deduction are
Educator expenses $550
Amount she cashed and use to pay for living expenses 401(k)
To find the total amount of adjustment, we subtract the above the line deduction from income
401 + 550 = 951
Therefore. 951 - 700.20
= 250.8
The amount for deduction to the nearest dollar is $250
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.
If the marginal propensity to consume in a municipality is 0.8, what is the value of the simple multiplier? If a new stadium that adds $30 million in new consumption expenditures is built, what is the impact on the economy based on this multiplier? Suppose the marginal propensity to import is 0.3, what happens to the multiplier and to the impact on the economy?
Final answer:
The marginal propensity to consume (MPC) of 0.8 leads to a simple multiplier of 5, meaning that $30 million in new spending for a stadium results in a $150 million increase in the economy. Incorporating a marginal propensity to import of 0.3 reduces the multiplier to 2 and the stadium's economic impact to $60 million.
Explanation:
The marginal propensity to consume (MPC) is a key concept in economics that indicates the proportion of additional income that a consumer will spend rather than save. When the MPC is 0.8, it means that for every extra dollar received, 80 cents will be spent. This spending generates additional income and spending in the economy, which can be calculated using the simple multiplier. The formula for the simple multiplier is 1/(1 - MPC), which in this case would be 1/(1 - 0.8) or 5. This means that every dollar of initial spending generates five dollars of total economic activity.
When a new stadium is built with an initial spending of $30 million, and the multiplier is 5, the total impact on the economy would be 5 times $30 million, which equals $150 million.
However, if we incorporate the marginal propensity to import of 0.3, we must adjust the multiplier because some of the spending now leaks out of the local economy to pay for imports. The new multiplier is calculated as 1/(1 - (MPC - marginal propensity to import)), which would be 1/(1 - (0.8 - 0.3)) or 1/(0.5), resulting in a multiplier of 2. This reduces the total impact of the stadium to 2 times $30 million, which is $60 million.
The time for the current iteration is up and one of the features isn't complete. What do you do?
Select an answer:
Stop working and add the incomplete feature back into the backlog.
Stop working but ask the assigned resource to complete the feature while you plan the next iteration.
Extend the iteration to complete the feature.
Stop working and add the incomplete feature to the next iteration.
Answer:
Stop working and add the incomplete feature back into the backlog.
Explanation:
In case a task could not be completed in the current iteration, it is best to add it to the backlog, so that in subsequent iterations it will be completed (giving it priority, of course).
Of course, it is not convenient to extend the iteration time just to finish the incomplete task. Also, we should not add it directly to the next iteration because we would be altering its structure. So the most appropriate thing to do, is to leave it marked as a priority to be included in the next iterations.
If the time for the current iteration is up and one of the features is not complete, what you should do is to:
Stop working and add the incomplete feature back into the backlog.After you have stopped working on this iteration, you have to take this feature that is not complete to the backlog.
After it has been added to the backlog, The iterations that would follow is where the feature is going to be prioritized and completed subsequently.
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The stock of Big Joe's has a beta of 1.38 and an expected return of 16.26 percent. The risk-free rate of return is 3.42 percent. What is the expected return on the market?a. 7.60%b. 8.04%c. 9.30%d. 12.72%e. 12.16%
Answer:
d. 12.72%
Explanation:
To calculate the expected return on the market, we will use the Capital asset pricing model (CAPM) equation.
The CAPM allows to relate the risk-free rate of return (RFROR), the market risk premium, the beta of an asset and the expected return of this asset.
Expected return = risk-free ROR + (Beta*Market risk premium)
In this case we know all the parameters but the Market risk premium (MRP), so we have:
[tex]ER=RFROR+\beta*MRP\\\\\\16.26=3.42+1.38*MRP\\\\MRP=(16.26-3.42)/1.38=9.30[/tex]
We also know that the beta of the market, by definition, is equal to one. So now that we know the market risl premium we can calculate the expected return on the market:
[tex]ER=RFROR+\beta*MRP\\\\ER=3.42+1*9.30=3.42+9.30=12.72[/tex]
The expected return on the market is 12.72%.
Final answer:
Using the CAPM formula, we rearrange to solve for the Expected Return on the Market and find it to be 12.72%, corresponding to option d.
Explanation:
The student's question concerns finding the expected return on the market using the Capital Asset Pricing Model (CAPM). The CAPM formula is given by:
Expected Return on Stock = Risk-Free Rate + Beta * (Expected Return on Market - Risk-Free Rate)
We can rearrange this formula to solve for the Expected Return on the Market (ERM), as follows:
ERM = ((Expected Return on Stock - Risk-Free Rate) / Beta) + Risk-Free Rate
Substituting the provided values into this equation, we get:
ERM = ((16.26% - 3.42%) / 1.38) + 3.42%
ERM = (12.84% / 1.38) + 3.42%
ERM = 9.30% + 3.42%
ERM = 12.72%
Therefore, the expected return on the market is 12.72%, which corresponds to option d.
How can an organization use all four social media zones safely and appropriately?
Answer:
How can an organization use all four social media zones safely and appropriately?
This could be achieved by employing a social media savvy individual who has high technicality in maximizing all social media platform.
Explanation:
A digital marketer with a top-notch experience in social media usage would suits such an organization
An organization can use all the zones appropriately by employing someone who's well experienced to manage the activities.
It should be noted that the social media zones include social commerce, social publishing, social entertainment, and social communities.
It should be noted that an organization can use all the zones appropriately by employing someone who's well experienced to manage the activities. This is vital to enhance the organization's revenue.
Learn more about social media on:
https://brainly.com/question/1163631
According to surveys in the U.S. and the United Kingdom, what are the most frequently used financial performance measures by multinational organizations?
A. Stock price, return on investment, profit
B. Budgeted profit vs. actual profit, stock price, sales
C. Budgeted profit vs. actual profit, return on investment, profit
D. Internal rate of return, profit, return on investment
Answer:
Correct answer is (C)
Explanation:
Budgeted profit vs. actual profit, return on investment, profit
Wellington Corp. has outstanding accounts receivable totaling $3 million as of December 31 and sales on credit during the year of $15 million. There is also a debit balance of $12,000 in the allowance for doubtful accounts. If the company estimates that 8% of its outstanding receivables will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense? $1, 200,000. $ 228,000. $ 240,000. $ 252,000.
Final answer:
The balance in the allowance for doubtful accounts after the year-end adjustment for Wellington Corp. will be $252,000. This calculation accounts for an 8% estimate of uncollectible accounts receivable and an existing $12,000 debit balance in the allowance account.
Explanation:
The student is asking about the adjustment of the allowance for doubtful accounts in accordance with accounting principles. Wellington Corp. has outstanding accounts receivable totaling $3 million and estimates that 8% of these receivables will be uncollectible. The existing debit balance in the allowance for doubtful accounts is $12,000. To compute the adjusted balance in the allowance account, multiply the total accounts receivable by the uncollectible percentage rate, which is:
$3,000,000 * 8% = $240,000
Now, since there is a debit balance of $12,000 already in the allowance account, we need to add this amount to the estimated uncollectibles to find the year-end balance for the allowance for doubtful accounts:
$240,000 + $12,000 = $252,000
Therefore, after recording the bad debt expense, the balance in the allowance for doubtful accounts would be $252,000.
Flora has been working at Abacrux Inc. for four-and-a-half years. Her pension plan will vest at her five-year work anniversary. She has had great performance evaluations and has received regular raises and promotions. The internal finance department has determined that cost cutting is needed to keep the company profitable. They recommend that Flora be fired before her pension vests and becomes a permanent liability against the corporation. According to the ______ they cannot fire her to prevent her from getting vested pension rights.
A. Employee Retirement Income Security Act (ERISA)
B. Consolidated Omnibus Budget Reconciliation Act (COBRA)
C. Health Insurance Portability and Accountability Act (HIPPA)
D. Fair Labor Standards Act (FLSA)
E. Immigration Reform and Control Act (IRCA)
Answer:
Employee Retirement Income Security Act (ERISA)
Explanation:
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.
ERISA requires plans to provide participants with plan information including important information about plan features and funding; sets minimum standards for participation, vesting, benefit accrual and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires plans to establish a grievance and appeals process for participants to get benefits from their plans; gives participants the right to sue for benefits and breaches of fiduciary duty; and, if a defined benefit plan is terminated, guarantees payment of certain benefits through a federally chartered corporation, known as the Pension Benefit Guaranty Corporation (PBGC).
In general, ERISA does not cover plans established or maintained by governmental entities, churches for their employees, or plans which are maintained solely to comply with applicable workers compensation, unemployment or disability laws. ERISA also does not cover plans maintained outside the United States primarily for the benefit of nonresident aliens or unfunded excess benefit plans.
In 2009, Mercury Marine, an outboard motor manufacturer, threatened to close their plant in Fond du Lac, WI and move to a nonunionized location in Oklahoma. This threat caused the union workers to vote to accept a contract with major concessions, including a 30% decrease in pay for newly hired workers and workers returning from layoff. This strategy could best be described as a:
Answer:
The correct answer is: forcing strategy.
Explanation:
A forcing strategy is used by employers through different coercive actions that disfavor workers. This is done to push employees to have a response on a specific matter usually when it comes to diminishing their compensations. A forcing strategy is a win-lose approach that does nothing more than promoting distrust among the work-frame.
"The strategy employed by Mercury Marine can best be described as a form of union busting, specifically using the threat of plant closure or relocation to coerce union workers into accepting less favorable contract terms. This tactic is often referred to as a ""runaway shop"" strategy.
In labor relations, a runaway shop occurs when a company shifts its operations to a new location, often to reduce labor costs by moving to an area with lower wages, weaker labor unions, or more favorable labor laws.
By threatening to move to a nonunionized location in Oklahoma, Mercury Marine was leveraging the fear of job loss among its union workers in Fond du Lac, WI to compel them to agree to significant concessions, including a substantial decrease in pay for new hires and workers coming back from layoff.
This strategy is controversial because it pits workers against each other and against the company's economic interests.
It undermines the collective bargaining power of unions by creating a divide between current workers, who may be fighting to maintain their wages and benefits, and potential future workers, who are offered significantly lower compensation. The long-term impact can weaken the union's position and potentially lead to the erosion of labor standards and worker protections.
In summary, the strategy used by Mercury Marine is a union-busting tactic known as a runaway shop, which involves threatening to relocate operations to force union workers to accept reduced wages and benefits. This approach exploits workers' concerns about job security to achieve company cost-saving objectives at the expense of labor rights and solidarity."
A $100 million interest rate swap has a remaining life of 10 months. Under the terms of the swap, the six-month LIBOR is exchanged semi-annually for 12% per annum. The six-month LIBOR rate in swaps of all maturities is currently 10% per annum with continuous compounding. The six-month LIBOR rate was 9.6% per annum two months ago. What is the current value of the swap to the party paying floating? What is it's value to the party paying fixed?
Answer:
Explanation:
Fixed = 12% (exchanged for = receive)
Floating = LIBOR = 9.6% two months ago
Remaining life of swap = 10 months
6 month LIBOR rate for all maturities = 10% (used for discounting)
Receive:
Fixed = [(100)(0.12)(6/12) * e - 0.10 * (4/12)] + 106e - 0.10 * (10/12)= $103,328,005
Pay:
Floating = {100 + [(100)(.096)(.5)]} * e - .10 * (4/12)= $101,364,247
Value of swap to party paying floating: $103,328,004.6 - $101,364,247.3 = $1,963,757
Value of swap to party paying fixed =
- $1,963,757
At the end of the current year, Accounts Receivable has a balance of $490,000; Allowance for Doubtful Accounts has a debit balance of $4,500; and sales for the year total $2,210,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $16,700. Determine the amount of the adjusting entry for uncollectible accounts.
Answer:
$21,200
Explanation:
The computation of the amount of the adjusting entry for uncollectible accounts is shown below:
= Estimated amount of Allowance for Doubtful Accounts balance + debit balance of Allowance for Doubtful Accounts
= $16,700 + $4,500
= $21,200
Simply we added the estimated amount and the debit balance so that the accurate amount can come
All other information which is given is not relevant. Hence, ignored it
The quantity demanded x (in units of a hundred) of the Mikado miniature cameras per week is related to the unit price p (in dollars) by p = −0.2x2 + 220 and the quantity x (in units of a hundred) that the supplier is willing to make available in the market is related to the unit price p (in dollars) by p = 0.1x2 + 8x + 110. If the market price is set at the equilibrium price, find the consumers' surplus and the producers' surplus. (Round your answers to the nearest dollar.)'
To determine the consumer surplus and producer surplus at the market's equilibrium price for Mikado miniature cameras, one must first find the equilibrium by setting the demand equation equal to the supply equation. Then, using the concepts of consumer and producer surplus in economic graphs, calculate the areas below the demand curve and above the supply curve to find the respective surpluses.
Explanation:The student has asked to find the consumer surplus and the producer surplus at the equilibrium price for Mikado miniature cameras. The equilibrium price is the point where the quantity demanded equals the quantity supplied, which can be found by equating the two given equations:
For demand: p = −0.2x² + 220
For supply: p = 0.1x² + 8x + 110
Once the equilibrium price and quantity are found, the consumer surplus is the area below the demand curve and above the market price while the producer surplus is the area above the supply curve and below the market price. These areas form triangular regions on the graph of demand and supply.
WellminusBread Grain Company is a priceminustaker and uses target pricing. The company has just done an analysis of its revenues, costs, and desired profits and has calculated its target full product cost. Assume all products produced are sold. Refer to the following information:
Target full product cost $500, 000 per year
Actual fixed cost $280, 000 per year
Actual variable cost $3 per unit
Production volume 150, 000 units per year
Actual costs are currently higher than target full product cost. Assume all products produced are sold. Assuming that variable costs are dependent on commodity prices and cannot be reduced, what is the target fixed cost?
(A) $450,000
(B) $220,000
(C) $50,000
(D) $500,000
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Target full product cost $500, 000 per year
Actual fixed cost $280, 000 per year
Actual variable cost $3 per unit
Production volume 150, 000 units per year
We can't lower the variable cost. Therefore, the cost reduction must be on fixed costs.
Target cost= 500,000
Variable cost= $3*150,000 units= 450,000
Target fixed costs= 500,000 - 450,000= $50,000