Answer:
Yes, the company should accept the offer.
Explanation:
The company should accept the offer as it increases income by $44,000.
Additional volume computations:Additional sales revenue = 40,000 units @ $13 = $520,000
Materials cost per unit = $800,000 / 400,000 units = $2 per unit
Labor cost per unit = $1,600,000 / 400,000 units = $4 per unit
Direct materials = (40,000 × $2) = $80,000
Direct labor = (40,000 × $4) = $160,000
Incremental overhead = $400,000 × 16% = $64,000
Incremental administrative = $172,000 (given).
Cayahuga Hardwood produces handcrafted jewelry boxes. A standard-sized box requires 8 feet of hardwood in the finished product. In addition, two board feet of scrap lumber are normally left from the production of one box. Hardwood costs $4.00 per board foot, plus $1.50 in transportation charges per board foot.Required: Compute the standard direct-material cost of a jewelry box.
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.
Which of the following statements about employer prejudice is true?
A. Employer prejudice occurs only in low-paying jobs.
B. Economic theory tells us that it would be impossible for employer prejudice to exist in a firm that is a monopoly.
C. Employer prejudice will help a monopolist to increase his profits by satisfying his managers personal prejudices.
D. It would be impossible for employer prejudice to exist in a firm that sells its output in a competitive market unless all rivals also discriminate.
E. Legislation has ended employer prejudice in the United States.
Answer:
D. It would be impossible for employer prejudice to exist in a firm that sells its output in a competitive market unless all rivals also discriminate.
Explanation:
In a competitive market , efficiency of employee is the only factor that is taken into account to meet the challenges of the market . The employer can not afford the cost of being prejudiced against a staff because it only has deleterious effect on the morale of the employee. So in a competitive market ,there is no scope for employer's prejudice.
PotvinPotvin Self Storage purchased land, paying $ 165 comma 000$165,000 cash as a down payment and signing a $ 175 comma 000$175,000 note payable for the balance. PotvinPotvin also had to pay delinquent property tax of $ 5 comma 000$5,000, title insurance costing $ 4 comma 000$4,000, and $ 2 comma 000$2,000 to level the land and remove an unwanted building. The company paid $ 55 comma 000$55,000 to add soil for the foundation and then constructed an office building at a cost of $ 900 comma 000$900,000. It also paid $ 52 comma 000$52,000 for a fence around the property, $ 16 comma 000$16,000 for the company sign near the property entrance, and $ 6 comma 000$6,000 for lighting of the grounds.
Answer:
land 400,000
land improvements 76,000
building 900,000
Explanation:
cost 165,000 cash + 175,000 note payable = 340,000
delinquent property tax 5,000
soil 55,000
total land: 340,000 + 5,000 + 55,000 = 400,000
period cost: 2,000 demolition + 4,000 insurance
building: 900,000
Notice the soil while it is used for the fundation It will be part of the land not the building. If we demolish the building later the soild will be still there.
land improvements
fence 52,000
sing 16,000
lighting 6,000
Total 76,000
As part of the overall systems engineering effort, both the Government and the Contractor conduct configuration management activities, and either can take the lead for a particular configuration item. The contractor is usually responsible for design and control of ___________________, while the Government is responsible for _______________. [Recognize how configuration management impacts all functional disciplines (e.g., test, logistics, manufacturing, etc.).]
A. Internal interfaces / external interfaces
B. Supportability changes / sustainability changes
C. Technical measures / technical performance measures
D. Integrated products /integrated processes
Answer:
The correct answer is letter "A": Internal interfaces / external interfaces.
Explanation:
The objectives of network engineering and project management are to provide the same degree of engineering and strategic business management. It includes descriptions of the system, overall design of the system and examination of design integrity. Interfaces are handled both for the contractor and the government. The first takes care of the internal factors while the second of the externals.
Madison Corporation purchases an investment in Lake Geneva, Inc. at a purchase price of $10 million cash, representing 40% of the book value of Lake Geneva, Inc. During the year, Lake Geneva reports net income of $1,700,000 and pays $419,000 of cash dividends. At the end of the year, the market value of Madison’s investment is $12.0 million. What is the year-end balance of the equity investment in Lake Geneva? Select one: A. $12,000,000 B. $18,910,000 C. $10,480,000 D. $10,512,000 E. $10,000,000
Answer:
$ 10512000
Explanation:
The market value of Madison investment which is the aggregate value of the company's investment =$ 12 million
The book value = assets - liabilities = (1700000 - 419000) ×0.4 = $ 51240
The year-end balance = $ 51240 + $ 10 million = $ 10512000 approx
It is August 14th and John has just purchased 100 shares of Cash Cow Inc. for $1,200 with a settlement date of August 16th. Cash Cow recently declared a dividend of $1.00 per share payable to shareholders of record as of August 15th. How much money did John pay for the right to the recently declared dividend? A. John paid $0.00 for the dividend because he was not the shareholder of record on August 15th. Therefore, the dividend payment went to the previous owner of the stock. B. John paid $100.00 for the dividend because he purchased the stock prior to the dividend record date. C. John paid $50.00 for the dividend because the record date was between purchase date of August 14th and the settlement date of August 16th. Therefore, the dividend payment is shared equally between the previous owner of the stock and John. D. This is a complicated issue and not easily answered. Thus, there is not enough information to answer this question.
Answer:
A. John paid $0.00 for the dividend because he was not the shareholder of record on August 15th. Therefore, the dividend payment went to the previous owner of the stock.
Explanation:
Settlement date is the date on which ownership of share transfer to buyer of stock, it is normally two days after trade date.
Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.
John paid $0.00 for the right to the Cash Cow Inc. dividend because the settlement date of his purchase was after the record date for the dividend.
Explanation:When John purchased shares of Cash Cow Inc., he paid for the stock itself and any dividends that would be coming from that purchase. In this case, John bought the shares on August 14th, but the shares have a settlement date of August 16th. Because the record date for the dividend is August 15th, to be eligible to receive the dividend, John needed to be the shareholder of record by that date. As the settlement date is after the record date, John will not be considered the shareholder of record and thus will not receive the dividend. To answer the question, John paid $0.00 for the right to the recently declared dividend, as the entitlement to the dividend remains with the previous owner of the shares.
Fortune, Inc. holds 50 shares of treasury stock purchased for $20 per share. In March, Fortune sold 10 shares at $50 per share. In December, Fortune sold another 5 shares at only $10 per share. The journal entry to record the transaction in December will include a (debit/credit) to the Paid-In Capital, Treasury Stock account in the amount of $________.
Answer:
Debit, $50
Explanation:
As the journal entry to record the December transaction, we will see how many shares at what prices the company has sold during December.
Fortune sold five shares at $10 per share.
As the company reacquired the shares for $20 per share, the company incurred a loss of $10 per share. Generally, additional paid-in-capital is a credit entry. As the company is selling at lower prices than reacquired prices, the paid-in Capital becomes debit.
As it sold five shares, the amount to be debited $10 × 5 shares = $50.
Final answer:
A journal entry for the sale of treasury stock at a loss will include a debit to Paid-In Capital, Treasury Stock for the loss amount if there are sufficient funds from previous sales at a profit, and any remaining loss not covered would be debited to Retained Earnings.
Explanation:
The journal entry to record the transaction in December when Fortune, Inc. sold 5 shares of treasury stock at $10 per share will include a debit to the Paid-In Capital, Treasury Stock account. Since the shares were originally purchased for $20 per share, and sold for $10 per share, this represents a loss of $10 per share. However, if there was any balance in the Paid-In Capital, Treasury Stock account from previous sales at higher prices, like the sale in March for $50 per share, it should be used to absorb the loss. If there was not enough balance in the Paid-In Capital, Treasury Stock account, the remaining loss should be debited to Retained Earnings.
Thus, if after the previous transactions in March, there was a balance in the Paid-In Capital, Treasury Stock account, part or all of the $50 loss ($10 loss per share for 5 shares) would be a debit to that account. A full entry would also include a debit to Cash for $50 (5 shares at $10 each) and a credit to Treasury Stock for $100 (5 shares at the original cost of $20 each). If the Paid-In Capital, Treasury Stock account has insufficient funds, the Retained Earnings would then be debited for the remaining loss.
You are the vice president of a computer sales company. You could save significant money by firing one of two employees who service the northwest region: Gary and Brenda. Gary is a long-time employee with an excellent sales record and a forceful demeanor. However, you and Gary have conflicted in the past when you rejected his request for a significant raise. Brenda has been struggling with her sales quotas lately, but is very popular amongst her co-workers. She has also been a quiet confident for key sales decisions. Evaluate whether you should layoff Brenda, Gary, or neither employee, and give the reasons for your decision.
Answer:
I would fire Gary.
Explanation:
Even if Gary has a better sales record, he seems to be unable to keep good personal relationships, both with coworkers and clients. This in the long-run could become more problematic and lead to a decline in sales record, and also, a decline in other areas.
Brenda, on the other hand, needs to improve her sales record, but she has strong interpersonal skills that give her an advatange. It is easier to teach a person how to sell than how to be a well-mannered person, therefore, in theory, if should not be so difficult to help Brenda reach higher sales.
The free cash flow hypothesis states:
a. that firms with higher levels of free cash flow should reward their managers with bonuses.
b. that firms with greater free cash flow will pay more in dividends thereby reducing the risk of financial distress.
c. that issuing debt requires interest and principal payments to be paid thereby reducing the potential of management to waste resources.
d. that firms will higher levels of free cash flow should reduce their debt levels.
e. that firms with greater free cash flow should issue new equity to help minimize the wasting of resources by managers.
Answer:
C. that issuing debt requires interest and principal payments to be paid thereby reducing the potential of management to waste resources.
Explanation:
Free Cash Flow is the cash generated by an organisationafter it has accounted for the outflows to capital assets maintenance costs and operating activities. Free Cash flow is a measure of a company's profitability after non-cash expenses in the account statement have been deducted. It is the cash flow an organisation has when it has limited or no debt obligations in its portfolio
The Hypothesis of free cash flow states that an organisation with a large amount of free cash will display less financial or spending discipline compared with an organisation that has debts obligations to spend cash on.
Based on the hypothesis, it becomes essential for such organisations to issue debts so that as the legal obligations (debts, principal and interest) increases, the potential to waste money as a result of fre cash flow reduces.
Suppose there are two coffee shops in your college town, Laughing Monkey Latte and Kelly's Coffee Krush, and they decide to operate collusively as a cartel. If both shops abide by the cartel's agreement, each will earn $80000 in profit. If both shops cheat on the cartel's agreement, both will earn $15000 in profit. If one shop cheats and the other abides by the agreement, the cheater will earn a profit of $120000, while the shop that abides will have a loss of $7500. The Nash equilibrium between Laughing Monkey Latte and Kelly's Coffee Krush occurs when Choose one: O A. both shops abide by the cartel's agreement. B. both shops cheat on the cartel's agreement. C. Laughing Monkey Latte cheats on the agreement and Kelly's Coffee Krush abides by the agreement. D. There is no Nash equilibrium for Laughing Monkey Latte and Kelly's Coffee Krush.
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.
Maloney's, Inc. has found that its cost of common equity capital is 17 percent and its cost of debt capital is 6 percent. The firm is financed with $3,000,000 of common shares (market value) and $2,000,000 of debt. What is the after-tax weighted average cost of capital for Maloney's, if it is subject to a 40 percent marginal tax rate?
Answer:
11.64%
Explanation:
The formula to compute WACC is shown below:
= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)
where,
Weighted of debt = Debt ÷ total firm
The total firm includes debt, preferred stock, and the equity which equals to
= $3,000,000 + $2,000,000 = $5,000,000
So, Weighted of debt = ($2,000,000 ÷ $5,000,000) = 0.40
And, the weighted of common stock = (Common stock ÷ total firm)
= $3,000,000 ÷ $5,000,0000
= 0.60
Now put these values to the above formula
So, the value would equal to
= (0.40 × 6%) × ( 1 - 40%) + (0.60 × 17%)
= 1.44% + 10.2%
= 11.64%
The after-tax weighted average cost of capital for Maloney's, Inc. is calculated using the provided cost of equity, cost of debt, market values, and tax rate. The after-tax WACC is found to be 10.92%.
The student has asked about computing the after-tax weighted average cost of capital (WACC) for Maloney's, Inc. Knowing the cost of common equity capital, cost of debt capital, market value of debt and equity, as well as the marginal tax rate, we can calculate WACC. The cost of debt capital is adjusted for the tax shield provided by the interest expense deduction.
First, we need to find the weights for the debt and equity in the overall capital structure. This can be done by dividing the market value of each by the total market value of financing (debt + common shares).
Next, the cost of debt is adjusted for taxes by multiplying it with (1 - tax rate).
Finally, we calculate the WACC by multiplying the weight of each source of capital (equity and after-tax debt) by their respective costs and then summing these products.
The formula to compute the WACC is:
WACC = (E/V) × Re + (D/V) × Rd × (1 - Tc)
Where:
E is the market value of equity ($3,000,000)
D is the market value of debt ($2,000,000)
V is the total market value of financing (E + D)
Re is the cost of common equity capital (17%)
Rd is the cost of debt capital before taxes (6%)
Tc is the corporate tax rate (40%)
Applying the formula:
WACC = ($3,000,000 / $5,000,000) × 0.17 + ($2,000,000 / $5,000,000) × 0.06 × (1 - 0.40)
WACC = 0.102 + 0.0072
WACC = 0.1092 or 10.92%
The after-tax WACC for Maloney's, Inc. is 10.92%.
A shareholder who was buying additional shares in Wayport, Inc., told the shareholder seller "he was not aware of any bluebirds of happiness in the corporation's world." However, at the time the buyer made the statement he was aware that the CEO had informed the board via e-mail of a patent sale by Wayport that meant that the corporation would receive net proceeds of $7.6 million and would increase its year-end cash position by 22%. Which of the following statements is correct? a. The buyer has done nothing wrong unless he was the CEO or a member of the board. b. The statement was too general to constitute a basis for a 10(b) claim. c. The seller has a 10(b) claim against the buyer. d. The statement would need to contain numbers to be a material misrepresentation.
Answer: C. The seller has a 10(b) claim against the buyer.
Explanation:
10(b) is a section within the Securities and Exchange Commission and are a common source of liability for public companies.
It makes it unlawful to use or employ in relation to the trading of shares or securities.
Over here the buyer made the statement that he was aware that the CEO informed the board via email of a patent sale by Wayport that meant that the corporation would receive net proceeds.
The buyer has unlawful means of source and therefore is thinking of buying additional shares. Buyer is violating the 10(b) section of the securities and exchange commission act.
Kaplan purchased 2500 shares of its own previously issued $10 par common stock for $62500. As a result of this event,
a. Kaplan’s Common Stock account decreased $25000.
b. Kaplan’s total stockholders’ equity decreased $62500.
c. Kaplan’s Paid-in Capital in Excess of Par Value account decreased $37500.
d. All of these answer choices are correct.
Answer:
b. Kaplan’s total stockholders’ equity decreased $62500.
Explanation:
In the given scenario, the previously issued common stock was purchased for $62,500 which reflects the treasury stock and as we know that, the treasury stock reduces the balance of the total stockholder equity.
While computing the stockholder equity balance, we deduct the treasury stock
So, the total stockholders’ equity would decreased by $62,500
The correct answer is d. All of these answer choices are correct.
Explanation:The correct answer is d. All of these answer choices are correct.
When a company repurchases its own shares, it reduces the amount of shares outstanding. This results in a decrease in the Common Stock account, as the company buys back its own stock. Additionally, the repurchase of shares using more than their par value results in a reduction in Paid-in Capital in Excess of Par Value account. Finally, repurchasing shares also decreases the total stockholders' equity, as stock is being taken out of circulation.
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Which of the following is NOTa consideration when making tradeoffs among various functional areas to achieve a balanced design?
A. Environmental concerns
B. Machinery
C. Materials
D. Profits from manufacturing
Profits from manufacturing is NOT a consideration when making trade-offs among various functional areas to achieve a balanced design
Explanation:
Profit means the income produced more than the production cost or the cost of selling products more than the investment capital. The estimated average profit proportion of the manufacturer differs from 25% to 35%.
The concept of trade-off is an exchange in which one thing you give up to have something that you want. An example of a deal is when you want to travel a half-hour to make more cash.
To take decisions, one product against someone else needs to be traded. In business, the term "business off" is often used as a cost of chance, the preferred alternative. A deal involves a sacrifice to achieve a product or experience.
The Latimore Company invested $8.5 million in a new plant in Italy when the exchange rate was 1.1500 euros to the dollar. At the end of the year, the rate was 1.2000 euros to the dollar. (Indirect quotes.)
a. Did Latimore make or lose money on the exchange rate movement? If so, how much?
b. What kind of exchange rate gain or loss was it?
c. What was the tax impact if Latimore’s marginal tax rate is 40%?
Answer:
Latinmore made money on the exchange rate movement. It was an exchange rate gain of $369,566. The marginal tax impact was $147,826.
Explanation:
Since the standard practice in accounting is to reflect the current situation of the company, any change in the exchange rate that affects the assets of the company abroad must be recognized. The financial income of exchange gains are registered in the Income Statement and affects the base to pay income tax.
Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100 per unit. Production was 67,200 units, while sales were 50,400 units.
a. Determine whether variable costing income from operations is less than or greater than absorption costing income from operations. Variable costing income from operations is less than absorption costing.
b. Determine the difference in variable costing and absorption costing income from operations. $
The difference in income between variable costing and absorption costing when production exceeds sales is due to the treatment of fixed manufacturing costs. The difference is calculated by multiplying unsold inventory by the fixed cost per unit, which yields a difference of $739,200 in income.
Explanation:Understanding Variable and Absorption Costing
When comparing variable costing and absorption costing, the main difference is in how fixed manufacturing costs are treated. Under variable costing, only variable costs are included in the product costs, while absorption costing includes both variable and fixed manufacturing costs. With the information provided, we know that fixed manufacturing costs are $44 per unit and variable costs are $100 per unit. Production was at 67,200 units while sales were 50,400 units.
Comparison of Income from Operations
Under variable costing, only variable production costs are expensed when products are sold. Hence, when production exceeds sales, as it does in this case, the inventory will carry less cost under variable costing since no fixed costs are allocated to unsold inventory. Conversely, under absorption costing, fixed manufacturing costs are allocated to each unit produced, regardless if they are sold or not. This means when production exceeds sales, absorption costing will report higher income from operations compared to variable costing, because some of the fixed costs are tied to the units in inventory rather than being expensed immediately.
The difference in income from operations under both costing methods is attributable to the deferred fixed manufacturing cost in inventory under absorption costing. To calculate the difference:
Find the number of units in ending inventory (Production - Sales) which is 67,200 - 50,400 = 16,800 units.Multiply this by the fixed cost per unit ($44) to determine the total fixed costs deferred in inventory: 16,800 units * $44/unit = $739,200.The difference in income between the two methods will be $739,200, which reflects the fixed manufacturing costs that are included in the ending inventory under absorption costing but not under variable costing.
Which of the following is not a required assumption for the analysis of variance?
a. The random variable of interest for each population has a normal probability distribution.
b. Populations under consideration have equal means.
c. At least 2 populations are under consideration.
d. The variance associated with the random variable must be the same for all populations.
Answer:
B. Population under consideration have equal means.
Explanation:
ANOVA (analysis of variance) is a statistical technique for determining the existence of differences among several population means. ANOVA is not used to show that variances are different (that is a different test); it is used to show that means are different
The assumption that populations under consideration have equal means is not required for an analysis of variance (ANOVA); instead, ANOVA aims to test whether the means are statistically significantly different.
Explanation:The student's question pertains to the required assumptions for conducting an analysis of variance (ANOVA). In ANOVA, several assumptions must be satisfied:
Each population from which a sample is taken is assumed to be normally distributed.All samples are randomly selected and independent.The populations are assumed to have equal standard deviations (or variances).At least two populations are under consideration.Option b, which states that populations under consideration have equal means, is not a required assumption for ANOVA. In fact, the purpose of ANOVA is to test if there are statistically significant differences between the means of these populations. Hence, assuming equal means beforehand would negate the purpose of the test.
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Evans Inc. had current liabilities at April 30 of $74,100. The firm's current ratio at that date was 1.7.Required:Calculate the firm's current assets and working capital at April 30.Assume that management paid $17,200 of accounts payable on April 29. Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made. (Round "Current ratio" answer to 2 decimal places.)
Answer:
* The firm's current assets and working capital at April 30:
+ Current asset $125,970
+ Working capital: $51,870
* The current ratio and working capital at April 30 as if the April 29 payment had not been made:
+ Current ratio: 1.57
+ Working Capital: $51,870
Explanation:
* The firm's current assets and working capital at April 30:
We have Current asset/ Current Liabilities = Current ratio <=> Current asset = Current liabilities x current ratio = 74,100 x 1.7 = $125,970.
Working capital = Current asset - Current Liabilities = 125,970 - 74,100 = $51,870.
* The current ratio and working capital at April 30 as if the April 29 payment had not been made:
- Current asset will be 125,970 + 17,200 = $143,170; Current Liabilities will be 74,100 + 17,200 = $91,300 ( as cash has not be deducted for account payable settlement, as a result, account payable is still maintained balance of 17,200 higher than the scenario where the payable had been settled).
=> Current ratio = 143,170/91,300 = 1.57; Working Capital = 143,170 - 91,300 = $51,870.
Answer: Current asset S10,586
Working capital is-S63,514
Current ratio 1 to 7
Explanation:
Current ratio= current assets to current liability =1..7
1.7=x to 74100
1/7=x/74100
7x=74100
X=74100/7
Current asset=S10,586
Working capital is current assets minus current liability
S10,586 minus S74100
Working capital is -S63,514
Current ratio if the payment has not been made is 1 to 7
Describe three different types of organizational cultures. When would each be most and least effective for a research and development company dependent on employee innovation?
Explanation:
Organizational culture is the set of values, policies, beliefs that is shared by all employees of an organization in order to drive the behavior of all organizational parts.
Some types of organizational culture may be:
Power Culture: In this model of organizational culture, the focus is on leadership, usually attributed to the entrepreneur or a manager. It is more centralized and focused on results. There are also barriers to the development of skills and competencies among employees, due to the difficulty of implementing innovation in organizational processes, which is only incumbent on the leader.Role Culture: The focus is on employee performance, but there are still well-structured and inflexible processes that make it difficult for employees to implement innovation.People Culture: The focus of this type of culture is the employees, they are well valued, there is greater interaction between teams and there is a great chance for professional growth and development, as this is the most relevant type of culture for workers to collaborate with. innovative ideas and creative solutions to aid in organizational processes.Which of the following correctly explains the dominant firm model of an oligopoly?
Group of answer choices
A. The firm that sets the lowest price gains the entire market share.
B. A single firm sets a price which is lower than the current market price and gains market share at the expense of the other firms.
C. A single firm sets the price in the market, which is taken as given by the other smaller firms.
D. Each firm in the market sets its price based on the reaction of the other firm.
E. The firms in the market collude and set prices in order to maximize their combined profits.
Answer:
C. A single firm sets the price in the market, which is taken as given by the other smaller firms
Explanation:
An oligopoly is when there are a few large firms operating in an industry. There are significant barriers to entry or exit of firms in the industry.
An oligopoly can set price through price leadership. It is when a firm sets the price in the market, which is taken as given by the other smaller firms.
Another way an oligopoly sets prices is through collusion. It is when firms in an oligopoly come together to set prices.
I hope my answer helps you.
Analysis reveals that a company had a net increase in cash of $22,310 for the current year. Net cash provided by operating activities was $20,100; net cash used in investing activities was $11,050 and net cash provided by financing activities was $13,260. If the year-end cash balance is $27,150, the beginning cash balance was:
a $4,840.
b $17,470.
c $49,460.
d $44,620.
e $43,620.
Answer:
If the year-end cash balance is $27,150, the beginning cash balance was: a $4,840.
Explanation:
Analysis reveals that a company had a net increase in cash of $22,310 for the current year.
Therefore,
The year-end cash balance - the beginning cash balance = $22,310
The beginning cash balance = The year-end cash balance - $22,310
The year-end cash balance is $27,150
The beginning cash balance = $27,150 - $22,310 = $4,840
Final answer:
The correct answer is a $4,840.
Explanation:
Net cash provided by operating activities: $20,100
Net cash used in investing activities: $11,050
Net cash provided by financing activities: $13,260
To find the beginning cash balance, use the formula:
Beginning Cash Balance = Ending Cash Balance - Net Increase in CashBeginning Cash Balance = $27,150 - $22,310Beginning Cash Balance = $4,840The guidance for having infant sleep on their back to reduce the incidence of SIDS has a grade of A. Group of answer choices Problem Description Etiology Recommendations Implementation and Evaluation
Answer:
The correct answer is letter "D": Recommendations.
Explanation:
Evidence-based public health (EBPH) practice is the application, and assessment of effective public health programs and policies by applying scientific reasoning principles. It includes several recommendations on basic practices that should be followed to avoid future medical conditions.
Your company does not want its employees to use the Internet to exchange personal e-mail during work hours. What is the best tool to use to ensure the company does not violate an employee’s right to privacy?
There is a way that you can implement to prevent employees to use Internet to exchange personal e-mail during work hours: Use of monitoring tool for IT admins and people and let employees sign the consent. Most common misinterpretation when employers use monitoring tools to see if their employees are violating their policies is privacy issues. This is wrong. Monitoring tools are needed for safety of both parties (company and employees). For employees, they could use these as an evidence that they are really following the rules and not violating anything. As for employers, this is their safeguard against violators.
Your firm has just issued five-year floating-rate notes indexed to six-month U.S. dollar LIBOR plus 1/4 percent. What is the amount of the first coupon payment your firm will pay per U.S. $1,000 of face value, if six-month LIBOR is currently 7.2 percent?
Answer:
The first coupon payment is 37.25 dollars.
Explanation:
This problem require us to calculate the first coupon payment that the firm will make. This can be easily calculated by multiplying the applicable interest rate with face value of notes issued.
The applicable interest rate is six month libor + 0.25% (1/4)
so
First coupon payment = (7.45%)'/2 * 1000 = 37.25 dollars
'7.25% + 0.25% = 7,45%
Ayayai Corporation purchases a patent from Blossom Company on January 1, 2020, for $40,000. The patent has a remaining legal life of 12 years. Ayayai feels the patent will be useful for 10 years. Prepare Ayayai’s journal entries to record the purchase of the patent and 2020 amortization
Answer:
Explanation:
The journal entries are shown below:
1. Patent A/c Dr $40,000
To Cash A/c $40,000
(Being patent is purchase in cash is recorded)
2. Amortization expense A/c Dr $4,000
To Patent A/c $4,000
(Being amortization expense is recorded)
The computation is shown below:
= Patent ÷ useful life
= $40,000 ÷ 10 years
= $4,000
Final answer:
To record the purchase of a patent, Ayayai Corporation would debit 'Patent' and credit 'Cash' for $40,000. The 2020 amortization would be recorded by debiting 'Amortization Expense' and crediting 'Accumulated Amortization—Patent' for $4,000, assuming a straight-line amortization over its 10-year useful life.
Explanation:
The student's question involves recording the purchase of a patent and its subsequent amortization in accounting records. On January 1, 2020, Ayayai Corporation purchases a patent from Blossom Company for $40,000, which has a legal life of 12 years but Ayayai estimates its useful life to be 10 years. To record the purchase, Ayayai would make the following journal entry:
Patent 40,000
Cash 40,000
To record the 2020 amortization of the patent, Ayayai would use the straight-line method, which spreads the cost evenly over its useful life. With a useful life of 10 years, the annual amortization expense would be $4,000 ($40,000 / 10 years). The journal entry for the 2020 amortization would be:
Amortization Expense 4,000
Accumulated Amortization—Patent 4,000
This entry would be made at the end of the accounting period (e.g., December 31, 2020). As a result of this entry, Ayayai's income statement for 2020 would reflect the amortization expense, and the balance sheet would show the patent net of accumulated amortization.
Delicious Dave?s Maple Syrup, a Vermont corporation, has property in the following states:Property State Beginning EndingMaine $971,644 $1,044,489Massachusetts $138,027 $251,061New Hampshire $420,455 $320,689Vermont $922,332 $954,376Total $2,452,458 $2,570,615
What are the property apportionment factors for Maine, Massachusetts, New Hampshire, and Vermont in each of the following alternative scenarios?A. Delicious Dave?s has nexus in each of the states.b. Delicious Dave?s has nexus in each of the states, but the Maine total includes $460,000 of investment property that Delicious rents out (unrelated to its business).c. Delicious Dave?s has nexus in each of the states, but also pays $56,000 to rent property in Massachusetts.
Final answer:
The property apportionment factors for each state are calculated based on the proportion of property value in each state to the total property value of Delicious Dave?s Maple Syrup. In scenario C, where Delicious Dave?s pays $56,000 to rent property in Massachusetts, the property apportionment factors for Massachusetts and Vermont are calculated differently.
Explanation:
The property apportionment factors for Maine, Massachusetts, New Hampshire, and Vermont can be calculated based on the proportion of property value in each state to the total property value of Delicious Dave?s Maple Syrup.
In scenario A, where Delicious Dave?s has nexus in each of the states, the property apportionment factors are:
Maine: ($1,044,489 - $971,644) / ($2,570,615 - $2,452,458) = 0.0127Massachusetts: ($251,061 - $138,027) / ($2,570,615 - $2,452,458) = 0.0137New Hampshire: ($320,689 - $420,455) / ($2,570,615 - $2,452,458) = -0.0216Vermont: ($954,376 - $922,332) / ($2,570,615 - $2,452,458) = 0.0166In scenario B, where the Maine total includes $460,000 of investment property that Delicious rents out unrelated to its business, the property apportionment factor for Maine would be:
Maine: ($1,504,489 - $971,644) / ($2,570,615 - $2,452,458) = 0.0818Massachusetts, New Hampshire, and Vermont remain the same as in scenario A.In scenario C, where Delicious Dave?s pays $56,000 to rent property in Massachusetts, the property apportionment factors for Massachusetts and Vermont would be:
Maine, New Hampshire, and Vermont remain the same as in scenario A.Massachusetts: ($307,061 - $138,027 - $56,000) / ($2,570,615 - $2,452,458) = 0.0506Daily Enterprises is purchasing a $ 9.8 million machine. It will cost $ 48,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. If Daily uses straight-line depreciation, what are the depreciation expenses associated with this machine?
Answer:
$1,969,600
Explanation:
Total cost to be capitalized = $9,800,000 + $48,000
= $9,848,000
Useful life = 5 years
Using straight line method
Depreciation expense = $9,848,000/5
= $1,969,600
The depreciation expenses associated with this machine amounts to $1,969,600.
The accounting equation is assets = liabilities + owner’s equity.
Please explain the relationship between economic resources and claims to economic resources.
a. Why must this equation always balance?
b. What transactions increase or decrease owner’s equity?
c. How does net income or loss affect owner’s equity?
d. Please give an example of a transaction, applied to the accounting equation.
The accounting equation, assets = liabilities + owner’s equity, denotes the relationship between a company's resources and the claims to these resources. The equation must always balance due to the dual effect of each transaction. Transactions affect owner's equity, and net income or loss directly impacts this equity.
Explanation:The accounting equation, assets = liabilities + owner’s equity, is a fundamental concept in financial accounting. This equation shows the relationship between economic resources and the claims to these resources. Assets represent economic resources of the company. Liabilities represent claims of creditors and owner’s equity represents the claims of the owners.
a. The accounting equation always must balance because every financial transaction has an equal effect on both sides of the equation.
b. Transactions that increase owner's equity include revenues and injection of capital by owners, while expenses or withdrawal of capital by owners decrease owner's equity.
c. Net income or loss directly affects owner’s equity. If the company has a net income, it increases owner’s equity. Conversely, a net loss decreases owner’s equity.
d. For instance, if a business takes a loan of $20,000, its assets (cash) increase by $20,000 and its liabilities (loan) also increase by $20,000. Hence, the accounting equation is balanced.
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Consider the following situations for Shocker:
a. On November 28, 2018, Shocker receives a $4,500 payment from a customer for services to be rendered evenly over
the next three months. Deferred Revenue is credited.
b. On December 1, 2018, the company pays a local radio station $2,700 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited.
c. Employee salaries for the month of December totaling $8,000 will be paid on January 7, 2019.
d. On August 31, 2018, Shocker borrows $70,000 from a local bank. A note is signed with principal and 9% interest to be
paid on August 31, 2019.
Required:
Record the necessary adjusting entries for Shocker at December 31, 2018. No adjusting entries were made during the year
Answer:
Explanation:
1. 28/11 Debit: Bank. $4,500
Credit: deferred Rev $4,500
Being advance pmt for services
2. 01/12 Debit: advert exp $900
Debit: Ad Prepaym. $1,800
Credit: Bank. $2,700
Being payment for advert
3. 31/12 Debit: Salary payable$8000
Credit: Salary Exp. $8000
Being Accrued salaries
4 31/08 Debit: Bank. $70,000
Credit: Loan A/c. $70,000
Being bank loan borrowed
5. 31/12 Debit: into on loan $2,100
Credit: Bank. $2,100
Being accrued interest on loan borrowed.
Answer:
1. GENERAL JOURNAL
ACCOUNT TITLE DEBIT CREDIT
DEC 31,2018
a Deferred Revenue 1,500
Service Revenue 1500
b Advertising Expense 900
Prepaid Advertising 900
c Salaries Expense 8000
Salaries Payable 8000
d. Interest Expense 2100
interest Payable 2100
(to adjust for accrued interest expense)
2 a,$1500 for the next three months
b.$900
c.Salaries Expense will be recorded as accrual, so there wont be any computation
d.I=$2100
Explanation:
GENERAL JOURNAL
ACCOUNT TITLE DEBIT CREDIT
DEC 31,2018
a Deferred Revenue 1,500
Service Revenue 1500
b Advertising Expense 900
Prepaid Advertising 900
c Salaries Expense 8000
Salaries Payable 8000
d. Interest Expense 2100
interest Payable 2100
(to adjust for accrued interest expense)
2. Service Revenue is credited and the deferred revue is on the debit side
therefore
$4500*1/3
=$1500 for the next three months
b. one-third of advertisement(10/30) has been aired. Advertising expenses is debited while prepaid advertising is credited
$2700*10/30
$900
c.Salaries Expense will be recorded as accrual, so there wont be any computation
d.Interest for four month from September 1 to December 31
I=principal *rate *time
I=70000*9%*4/12
I=$2100
The primary purpose of the Troubled Asset Relief Program was to Select one:
a. quickly provide jobs to the unemployed.
b. shore up shaky financial institutions.
c. lower the rate of inflation.
d. demonstrate that only the Fed controlled economic policy.
e. help out the European economy and boost demand for American exports.
Answer:
The answer is b. shore up shaky financial institutions.
Explanation:
The troubled asset relief program was a $700 billion bailout program that was designed and approved by the US congress to stabilize the american financial institutions following the financial crisis of 2008.