The following is the journal entry to document the expenses incurred in honouring 1,221 warranty claims:
Cost of the warranty: $24,420
Liability for Warranties: $24,420
What journal entry should be made to honour warranty claims?When a business honours warranty claims, it must take the related expenses into consideration. In this instance, Bramble Company predicts that 4% of the sold units will have defects while under warranty. The typical price to replace or fix a broken item is $20.
Bramble sold 36,800 units in November and 38,800 units in December, according to these projections. 736 faulty units were found up until December 31.
The journal entry includes a debit to Warranty Expense for the actual costs of $24,420 in order to account for the expenses paid in honouring 1,221 warranty claims.
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How would you describe Brad Smith’s leadership style? Which
leadership concepts, models, or theories best reflect how he
leads?
ricky griffin fundamentals of management
Chapter 11 case management at
Brad Smith, the former CEO of Intuit, has a collaborative leadership style. His leadership style prioritizes creativity, collaboration, and customer-driven approaches to problem-solving. This is evident in how he runs Intuit, where he focuses on creating an environment of openness and trust that encourages innovation and fosters creativity.
Brad Smith's leadership style is primarily based on the transformational leadership theory. Transformational leadership is a leadership approach in which leaders work with their followers to identify the needed change, create a vision to guide the change through inspiration and execute the change with the commitment of everyone involved.
Brad Smith believes in working collaboratively with his employees to create and execute a shared vision. Smith emphasizes the need to provide employees with a sense of purpose and empower them to be decision-makers, and lead from the front to establish a positive work culture where collaboration and innovation thrive.
In addition, Brad Smith uses the servant leadership model where leaders serve their followers. This model requires leaders to be compassionate and committed to their team members, thus providing an environment where team members can flourish.
Brad Smith's leadership approach has been a great success, resulting in Intuit's revenue increasing from $2.7 billion to $6.8 billion during his tenure.
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• Furniture and fittings: 10% per annum on a reducing-balance basis (assume no residual value) Depreciation for the year ended 31 December 2017 has not yet been accounted for. Hallam charges all depreciation to cost of sales. 4) On 31 December 2017, a purchase of raw materials of £150,000 was returned to the supplier. The purchase of the materials has already been included in the cost of sales. 5) Corporation tax for the year is estimated at £5,348,000. 6) A final ordinary dividend of 3p per share and preference dividend of £324,000 was declared on 1 December 2017 but was not paid at the year end. 7) The cost of sales was calculated based on the inventory shown in the trial balance. On 31 December 2017, it was found that an inventory that was valued at £500,000 has a net realisable value of £250,000. 8) There has been no issue of shares during the year 2017. Required: a) In respect of the year ended 31 December 2017, prepare the Statement of Comprehensive Income (using format 1) and the Statement of Financial Position for Hallam plc, in accordance with International Financial Reporting Standards (to the nearest £000). (25 marks) b) Calculate basic Earnings per Share (EPS) for Hallam plc in respect of the year ended 31 December 2017. Discuss briefly the limitations of EPS as a performance measure.
a) Without specific financial data and calculations, it is not possible to provide the Statement of Comprehensive Income and the Statement of Financial Position for Hallam plc as required.
b) Earnings per Share (EPS) is calculated by dividing the net earnings of a company by the weighted average number of outstanding shares. The limitations of EPS as a performance measure include not considering the quality of earnings, the timing of cash flows, the potential dilution from convertible securities, and differences in accounting policies among companies.
To prepare the financial statements for Hallam plc, detailed financial data, and calculations are necessary, such as revenues, expenses, assets, liabilities, and equity. Without this information, it is not possible to provide the required statements accurately.
Earnings per Share (EPS) is a widely used measure to assess a company's profitability. However, it has limitations. EPS does not consider the quality of earnings, meaning it doesn't differentiate between sustainable and one-time gains. It also doesn't reflect the timing of cash flows, as it is based on accrual accounting.
EPS doesn't account for the potential dilution of earnings from convertible securities. Additionally, EPS can be influenced by differences in accounting policies among companies, making it difficult to compare across industries or companies with different accounting practices.
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a company implements a new information system and observes a 5 percent increase in its monthly sales. this is a(n) ________ of the system.
A company implements a new information system and observes a 5 percent increase in its monthly sales. This is a benefit of the system.
The increase in monthly sales is considered a benefit for the company because it helps the company increase its profits and revenue. An information system helps companies automate their processes and make data-driven decisions. This helps companies become more efficient and effective in their operations.
The information system likely contributes to improving the company's operational efficiency, data management, decision-making processes, or customer interactions, resulting in increased sales. This increase can be attributed to various factors, such as better inventory management, improved customer relationship management, enhanced data analysis capabilities, or streamlined processes enabled by the information system. Overall, the observed increase in sales demonstrates the effectiveness and value of the implemented information system in driving business growth and generating positive outcomes for the company.
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The graph depicts the following situation: A consumer consumes good x and good y. She initially has an income of I=$150, and faces prices of px=$1 and py=$3. Then, the price of good x doubles. In response to the rising prices, the government gives the consumer a lump-sum payment of $30. What do points z and k in the graph stand for?
A. z=$100 and k=$150
B. z=75 units of good x and k=150 units of good y
C. z=50 units of good x and k=$150
D. z=75 units of good x and k=60 units of good y
E. None of the above
None of them accurately represent points z and k in the graph. Therefore, the correct answer is None of the above, option E is correct.
Based on the given information, we can determine the meanings of points z and k in the graph. Point z represents the initial consumption bundle before any changes occur. The consumer has an income of $150 and faces prices of px=$1 and py=$3. Since we don't have specific quantities mentioned, we can't determine the exact values for z. Therefore, none of the options provided correctly represent point z.
Point k represents the new consumption bundle after the price of good x doubles and the consumer receives a lump-sum payment of $30 from the government. Therefore, none of the options provided correctly represent point k, option E is correct.
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Henry is a new graduate from college that has been brought into a local retailer that has been doing business for almost ten years. They have begun to open locations around the city that they are in and have asked you to make recommendations to tighten the internal controls. The accounting office is located within an hour of each of the four new store locations. The CEO has asked that the company warehouse driver picks up the sales receipts once a week and that paycheques are sent back to each location on payday. The process today is that the driver collect the daily receipts in a plastic grocery bag and bring them back to the accounting office once a week. In recent weeks, there have been receipts that have gone missing and paycheques that have become lost. One store is not located near a bank for daily deposits and the CEO has the driver picking up the weekly deposit of $6000 to bring back in a brown paper bag with the store location number written on it. The accounting department has found discrepancies between the register ribbon and the money of $10-$20 each week. 1. Understanding the overall goals for internal controls, what recommendations should be made for this small company? (Each recommendation should include a realistic control) 2. List five (5) realistic Cash Controls that could be used with a brief explanation of how each could help. 3. List five (5) realistic Internal Management Controls that could be used with a brief explanation of how each could help.
By implementing these recommendations and controls, the company can strengthen its internal controls, reduce the risk of errors and fraud, enhance accountability, and safeguard its assets.
Overall Goals for Internal Controls:Implement segregation of duties: Assign different individuals to handle cash receipts, payroll, and financial record-keeping to prevent collusion and increase accountability.Establish physical safeguards: Ensure that cash, receipts, and paychecks are stored securely and transported in a safe manner to minimize the risk of theft or loss.Enhance documentation and record-keeping: Implement systematic procedures for recording and reconciling cash transactions, maintaining proper documentation, and conducting regular audits to detect and prevent errors or fraudulent activities.Strengthen authorization and approval processes: Implement controls that require proper authorization and approval for cash disbursements, payroll processing, and other financial transactions to minimize the risk of unauthorized actions. Develop an internal reporting system: Implement a system that encourages employees to report any suspicious activities, discrepancies, or concerns related to cash handling or internal controls.
Realistic Cash Controls:Daily cash reconciliation: Each store should reconcile their daily cash receipts with the register totals and investigate any discrepancies promptly. This control helps identify and address issues early on.Secure cash handling procedures: Implement strict guidelines for cash handling, including the use of cash registers, limiting access to cash drawers, and conducting surprise cash counts to deter theft and increase accountability.Dual control for cash transfers: Assign two employees to handle the weekly deposit, ensuring that both individuals verify the cash count, sign off on the amount, and maintain a record of the transaction. This control reduces the risk of theft during transportation.Implement secure deposit process: Explore options such as hiring armored courier services to pick up and transport cash deposits securely, especially for the store without a nearby bank. This minimizes the risk of loss or theft during transit.Implement a cash shortage/overage reporting system: Require employees to report any cash shortages or overages immediately and investigate the reasons behind these discrepancies. This control helps identify potential issues or errors in cash handling processes.Realistic Internal Management Controls:
Implement employee training and awareness programs: Provide comprehensive training on cash handling procedures, internal controls, and fraud prevention to all employees. Regularly update and reinforce these training programs to ensure compliance and vigilance.
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Explain whether each of the following statements is true, false, or could go ether way depending on the circumstances. If a question has more than one part, please explain why each part is true, faise, or uncertan Use the analyscal tools learned in this course to back up your answers, EXPLANATION DETERMINES MARKS
1. In the US currently, since the nominal interest rate is virtually zero, the real interest rate has to be negative.
2. The fall employment level of output is the output level corresponding to an unemployment rate of zero.
3. On January 1 2015, you bought 10 gallons of petrol at GHC 15 per gallon The filling station purchased the petrol the previous week at wholesale price of GHC 12 per gallon. The contribution of this transaction to GDP in 2015 is GHC 150.
4. If in a given year the profits of US based Toyota increase; this will contribute to the US GNP for that year.
5. The Monetary Policy Committee of the Bank of Ghana after its meeting in November 2015 increased the monetary polity rate from 25% to 26%. This represents a 1% increase the monetary policy rate
6. The recent reduction in the monetary policy rate from 23.4% to 22.5% represents an expansionary monetary policy because it seeks to increase the money supply.
7. According the 2016 Budget Statement for Ghana presented on November 13, 2015, total government expenditure for 2016 is projected to be GHC 46,445.7 million, representing 16.6% increase over the expenditure in 2015. This represents a tightening of monetary policy.
8. The overall budget deficit for 2016 is expected to be 5.3% of GDP compared with a year-end 7.3% for 2015. In the goods market this will lead to an increase
9. in the real interest rate. If banks introduce home equiry lines of credit that allow homeowners to write checks against the value of their homes it will increase the demand for money.
1. TRUE 2. FALSE 3. FALSE 4. FALSE 5. TRUE 6. FALSE 7. FALSE 8. FALSE 9. TRUE
1.The real interest rate equals the nominal interest rate minus the expected inflation rate. If the nominal interest rate is zero, then the real interest rate must be negative if the expected inflation rate is positive.
2. The natural rate of unemployment is the unemployment rate that arises from normal frictions in the labor market. The fall employment level of output is the output level corresponding to the natural rate of unemployment, not zero unemployment.
3. The purchase of gasoline by a consumer is a consumption expenditure, not a contribution to GDP.
4. The profits of US-based Toyota contribute to Japan's GNP, not the US GNP.
5. An increase in the monetary policy rate represents a contractionary monetary policy.
6. A reduction in the monetary policy rate represents an expansionary monetary policy because it seeks to lower interest rates and increase the money supply.
7. An increase in government expenditure represents an expansionary fiscal policy, not a tightening of monetary policy.
8. A decrease in the budget deficit represents a contractionary fiscal policy, not an increase in the real interest rate.
9. The introduction of home equity lines of credit increases the supply of money, which lowers the equilibrium interest rate and increases the quantity of money demanded.
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An Incorporation is considering a new three-year expansion project that requires an initial fixed asset investment of $2,400,000. The fixed asset will be depreciated straight- line to zero over its three-year tax life. The project is estimated to generate $3,030,000 in annual sales, with costs of $2,030,000. The project requires an initial investment in net working capital of $168,000 and the fixed asset will have a market value of $203,000 at the end of the project. Assume that the tax rate is 23 percent and the required return on the project is 10 percent. a. What are the net cash flows of the project each year? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
a. The net cash flows of the project each year are as follows: Year 0: -$2,400,000 (initial investment and net working capital), Year 1: $531,900, Year 2: $531,900, Year 3: $531,900, and Year 4: $734,600.
b. The NPV of the project is $171,873.09.
To calculate the net cash flows of the project each year, we need to consider the sales, costs, depreciation, taxes, and salvage value. In Year 0, there is an initial investment of -$2,400,000 for the fixed asset and -$168,000 for the net working capital. In Years 1, 2, and 3, the net cash flow is calculated by subtracting the costs from the sales, considering the tax rate of 23 percent, and adding back the depreciation expense. In Year 4, the net cash flow includes the salvage value of $203,000, which is the market value of the fixed asset at the end of the project. The calculations result in the following net cash flows: Year 0: -$2,400,000, Year 1: $531,900, Year 2: $531,900, Year 3: $531,900, and Year 4: $734,600.
To calculate the NPV of the project, we discount the net cash flows at the required return of 10 percent. The NPV formula is the sum of the present values of the cash flows. Using the cash flows calculated in part (a) and the required return of 10 percent, the NPV of the project is $171,873.09.
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For which of the following matters should an auditor obtain written management representations?
(a) Management's cost-benefit justifications for correcting internal control weaknesses.
(b) Management's knowledge of future plans that may affect the price of the entity's stock.
(c) Management's knowledge of allegations of fraud or suspected fraud affecting the entity.
(d) Management's acknowledgment of its responsibilities for employee's violations of laws.
An auditor is responsible for the evaluation of an entity's financial statements for the purpose of expressing an opinion on the financial statements.
While conducting an audit, an auditor needs to obtain a written management representation on several matters that may be important for the audit to ensure that the auditor has a proper understanding of the business and financial affairs of the entity.
Below mentioned are some of the matters for which the auditor needs to obtain written management representation-
(a) Management's cost-benefit justifications for correcting internal control weaknesses: It is the responsibility of management to assess the risks and benefits of establishing and maintaining effective internal control over financial reporting and ensuring that these controls are maintained. The auditor needs to obtain written management representations about management's cost-benefit justifications for correcting internal control weaknesses to understand the significance of control weaknesses and its effect on the audit.
(b) Management's knowledge of future plans that may affect the price of the entity's stock: The auditor needs to obtain written management representation to confirm that management has provided the auditor with the information required to determine the impact of future plans on the financial statements.
(c) Management's knowledge of allegations of fraud or suspected fraud affecting the entity: It is essential for the auditor to obtain written management representation to confirm that the management has disclosed all information about fraud or suspected fraud affecting the entity.
(d) Management's acknowledgment of its responsibilities for employee's violations of laws: The auditor needs to obtain written management representation about the acknowledgment of the management regarding its responsibilities for employee's violations of laws to understand the legal implications that may arise due to non-compliance with the laws.
In conclusion, an auditor needs to obtain written management representations for various matters to gain a better understanding of the entity's financial affairs and to provide a reasonable opinion on the financial statements.
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FILL IN THE BLANK. employees’ ability to choose among several types and styles of desk chairs:
The given statement will be: Employees' ability to choose among several types and styles of desk chairs: Increases job satisfaction.
There are various factors that impact job satisfaction, and one of them is employees' ability to choose among several types and styles of desk chairs. The statement shows that when employees are provided with the choice to choose among several types and styles of desk chairs, they are more likely to be satisfied with their jobs.
Hence, job satisfaction increases.Therefore, it can be concluded that the employees' ability to choose among several types and styles of desk chairs increases job satisfaction.
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Demand, supply and elasticities - products classification and
impact on industries
Demand, supply, and elasticities are significant terms in economics that can affect the classification of products and have a significant impact on industries. In this context, we will discuss the effect of these terms on product classification and their impact on industries.
Product classification is crucial in understanding market behavior and determining pricing and marketing strategies. Products can be classified into two categories: elastic and inelastic. Elastic products are those that are highly sensitive to changes in price, while inelastic products are less sensitive to price changes.
Demand elasticity refers to the change in the quantity of a product demanded due to changes in its price. If the demand for a product is highly elastic, a small change in its price will result in a significant change in the quantity demanded. In contrast, if the demand for a product is inelastic, a change in its price will not have a significant effect on the quantity demanded.
Similarly, supply elasticity refers to the change in the quantity of a product supplied due to changes in its price. If the supply of a product is highly elastic, a small change in its price will result in a significant change in the quantity supplied. In contrast, if the supply of a product is inelastic, a change in its price will not have a significant effect on the quantity supplied.
These elasticities have significant impacts on industries. For example, if the demand for a product is highly elastic, a small increase in its price will result in a significant decrease in demand. This means that the industry producing that product will have to reduce its prices to maintain demand. Similarly, if the supply of a product is highly elastic, a small decrease in its price will result in a significant increase in supply. This means that the industry producing that product will have to increase its prices to maintain supply.
In conclusion, demand, supply, and elasticities are crucial terms in economics that affect the classification of products and have significant impacts on industries. The understanding of these terms can help businesses to develop effective pricing and marketing strategies.
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For the year ended 30 June 2022, the following information is available for Scan Ltd: 2022 2021 Dividend payable 13,000 10,000 Bank loan 100,000 80,000 Share Capital 250,000 200,000 Retained earnings 45,000 36,000 Profit after tax 20,000 Additional information: A bonus share dividend of $5,000 and a cash interim dividend were paid during the year. Repayments of $45,000 on the bank loan were made during the year. Further loans were taken out, partly to cover the cost of a new vehicle for $30,000 and the remainder to inject cash into the business. Land was purchased, partly paid for by issuing $30,000 shares. Required: a) Calculate the net cash used in financing activities. b) Present the cash flows in the correct format.
The net cash used in financing activities is $113,000 and the cash flows in the correct format is $143,000.
a) Net cash used in financing activities:
Net cash used in financing activities includes the cash inflows and outflows from the company's financial activities. For the year ended 30 June 2022, the net cash used in financing activities is calculated as follows:
Net Cash used in Financing Activities
= Dividend payable 2022 - Dividend payable 2021
= 13,000 – 10,000
= $3,000
Net cash raised from the bank loan
= (100,000 - 80,000) + 45,000 - 30,000
= $35,000
Net cash raised from the issue of shares
= (250,000 - 200,000) + 30,000
= $80,000
Cash used to pay bonus dividend= $5,000
Net Cash Used in Financing Activities
= Dividend payable 2022 - Dividend payable 2021 + Net cash raised from the bank loan + Net cash raised from the issue of shares - Cash used to pay bonus dividend
= 13,000 - 10,000 + 35,000 + 80,000 - 5,000
= $113,000
b) Cash flows in the correct format:
Cash flows from operating activities:
Profit after tax= $20,000
Adjustments to reconcile profit to net cash inflow from operating activities:
Depreciation= $10,000
Cash flows from operating activities
= Profit after tax + Depreciation
= 20,000 + 10,000
= $30,000
Cash flows from investing activities:
Purchase of land= ($30,000)
Purchase of vehicle= ($30,000)
Cash flows from investing activities
= (30,000 + 30,000)
= ($60,000)
Net cash used in investing activities= ($60,000)
Cash flows from financing activities:
Net Cash Used in Financing Activities= ($113,000)
Net increase in cash and cash equivalents
= Cash flows from operating activities + Cash flows from investing activities + Cash flows from financing activities
= 30,000 - 60,000 - 113,000
= ($143,000)
Therefore, the net decrease in cash and cash equivalents is $143,000.
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(a) Define shirking. In the Shapiro-Stiglitz model, does a worker benefit from shirking? Explain, using algebra and words in your answer. (15 marks) Answer: Marker Moderator (b) Algebraically state the monetary rule in the Three Equation Model, MR. Fully explain how this monetary rule helps the monetary policymaker choose its nominal policy rate i. (10 marks)
Shirking is a term used to define situations where employees are not putting in maximum effort or output into their work. This may be due to a variety of reasons such as dissatisfaction, lack of motivation, or lack of supervision. The Shapiro-Stiglitz model is used to analyze the effects of asymmetric information in the labor market. In this model, a worker does not benefit from shirking as it reduces their productivity, leading to a lower wage rate.
The utility function of the worker is given by U = U(c,l) where c is the worker's consumption and l is their leisure time. The wage rate is given by w = F(L, z) where L is labor input and z is the level of effort by the worker. The worker chooses the level of effort that maximizes their utility function. However, since the level of effort is not directly observable by the firm, there is a moral hazard problem. The firm has to pay the wage rate based on the observed output and cannot observe the worker's level of effort. Therefore, a worker who shirks reduces the observed output, leading to a lower wage rate. This reduces the worker's utility, hence they do not benefit from shirking.
The monetary rule in the Three Equation Model is given by MR = pi - π^T + 0.5(y - y^P) where MR is the nominal policy rate, pi is the inflation rate, π^T is the inflation target, y is the output gap, and y^P is the potential output. This rule states that the monetary policymaker should adjust the nominal policy rate based on the deviation of the actual inflation rate from the target inflation rate, the output gap, and potential output. If the inflation rate is higher than the target, the nominal policy rate should be increased to reduce demand and hence inflation. If the output gap is positive, this indicates excess demand in the economy and hence the nominal policy rate should be increased to reduce demand and avoid inflation. Conversely, if the output gap is negative, indicating a recession, the nominal policy rate should be decreased to stimulate demand and hence output. The monetary rule helps the monetary policymaker choose its nominal policy rate i by providing a systematic and transparent framework for policy decisions. The rule is based on economic theory and empirical evidence and provides clear guidance on how to adjust the policy rate in response to changes in inflation and output.
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13. Suppose the external financing needed is a negative number,
then:
a. the firm’s growth rate in sales is greater than its
sustainable growth rate.
b. the firm’s growth rate in sales is greater
If the external financing needed is a negative number, then the firm's growth rate in sales is less than its sustainable growth rate. This suggests that the company can fund its growth initiatives and capital expenditures using internally generated funds.
Sustainable growth rate is the maximum rate of growth that a firm can achieve while keeping its financial ratios constant. It is determined by factors like profit margin, retention rate, asset turnover ratio, and financial leverage ratio. In other words, the sustainable growth rate reflects the level of growth that can be funded by the company's internal resources.
A negative external financing requirement indicates that the company can finance its growth initiatives without relying on external sources such as debt or equity. This is a positive sign for investors since it reduces the risk of default and dilution of equity.In conclusion, if the external financing requirement is negative, the firm's growth rate in sales is less than its sustainable growth rate. As a result, the company can fund its growth initiatives using its internal resources. This is an indication of a healthy and sustainable growth strategy.
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1. Maria Rodrigues, who works in the finance department of Patches Corporation, was invited to dinner by her parents. Publicly. Patches Corporation seems to be one of the best businesses in the news. However, Maria Rodrigues's analytic work at the office suggests that many of the opportunities are even stronger than reported, and could lead to fabulous gains in the near future. The parents follow the news and are unhappy with their current retirement portfolio. Maria Rodrigues is tempted to advise her his parents to invest in Patches Corporation. Briefly outline the ethical issues faced by Maria Rodrigues.
Maria Rodrigues faces ethical issues in advising her parents to invest in Patches Corporation due to conflicts of interest, potential insider trading, breach of professional confidentiality, and the need to fulfill her fiduciary duty.
How does Maria Rodrigues face ethical issues?Maria Rodrigues faces several ethical issues in advising her parents to invest in Patches Corporation. These include:
1. Conflict of interest: As an employee of Patches Corporation, Maria may have a personal interest in promoting the company's stock to her parents. This conflict of interest can cloud her judgment and compromise her ability to provide unbiased advice.
2. Insider trading: If Maria possesses non-public information about Patches Corporation that could influence her parents' investment decision, using that information to their advantage would be considered insider trading, which is illegal and unethical. It is important for Maria to maintain strict confidentiality and not misuse any confidential information for personal gain.
3. Breach of professional confidentiality: As an employee of Patches Corporation, Maria may have access to sensitive financial information and business strategies. Sharing this information with her parents without proper authorization would violate professional confidentiality and could harm the company's interests.
4. Fiduciary duty: If Maria is a licensed financial professional or holds a position of trust in advising her parents, she has a fiduciary duty to act in their best interests. This duty requires her to provide objective and unbiased advice based on a thorough analysis of their financial goals, risk tolerance, and investment options. Advising them to invest solely in Patches Corporation without considering other suitable investments may breach this duty.
To navigate these ethical issues, Maria should consider recusing herself from advising her parents on investments related to Patches Corporation. Alternatively, she can seek independent advice from a qualified financial professional who has no personal or professional ties to the company. This ensures that her parents receive impartial guidance and helps Maria maintain ethical integrity in her professional role.
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On March 1, 2021, Gold Examiner receives $169,000 from a local bank and promises to deliver 95 units of certified 1-oz. gold future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a thi carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in The stand-alone price of a gold bar is $1,710 per unit, and Gold Examiner estimates the stand-alone price of the replacement a service to be $90 per unit. Brink's picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurre April 1. Required: 1. How many performance obligations are in this contract? 2 to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30 and April 1.
The answer to the first part is: There are two performance obligations in this contract. and the answer to the second part is: The journal entry Gold Examiner would record on March 1 is: Cash 169,000 Unearned Revenue 169,000(March 1: Cash received from local bank for delivery of 95 units of certified 1-oz. gold future date)
The journal entry Gold Examiner would record on March 30 is: Unearned Revenue 162,450Revenue 162,450(March 30: Revenue recognized as 90 units of certified 1-oz. gold is delivered to Brink's)The journal entry Gold Examiner would record on April 1 is: Cost of Sales 81,225 Inventory 81,225(April 1: 45 units of certified 1-oz. gold delivered to bank)Explanation: Gold Examiner receives $169,000 from a local bank on March 1, 2021, and promises to deliver 95 units of certified 1-oz. gold on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a third-party carrier. There are two performance obligations in this contract. The first is the delivery of 95 units of certified 1-oz. gold and the second is the promise to replace the products if they are lost. Gold Examiner records the receipt of cash and creates an unearned revenue account. On March 30, when 90 units of gold are delivered to Brink's, Gold Examiner records revenue for the portion of the contract that has been satisfied and reduces unearned revenue. On April 1, when Brink's delivers 45 units of gold to the bank, Gold Examiner records the cost of sales and reduces inventory.
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jerry wants to rent out living space to a tenant. he wants the benefit of steady rent payments and the ease of evicting the tenant when he feels it would be convenient. jerry also wants to formalize the tenancy with a rental agreement so that his rights and privileges are explicitly accounted for and agreed to in writing. which form of tenancy should jerry use in renting out his space?
Jerry should use a fixed-term tenancy in renting out his space.
A fixed-term tenancy, also known as a lease agreement, would be the most suitable form of tenancy for Jerry's needs. With a fixed-term tenancy, Jerry can have the benefit of steady rent payments as the tenant agrees to pay rent for a specific period, usually for a year or more.
This provides Jerry with stability and predictability in terms of rental income. Additionally, a fixed-term tenancy allows for easier eviction when necessary, as it typically includes provisions for termination at the end of the agreed-upon term.
Furthermore, by formalizing the tenancy with a written rental agreement, Jerry can ensure that his rights and privileges as a landlord are explicitly stated and agreed upon by both parties, providing clarity and legal protection.
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QuickBooks considers all of the following to be vendors
except:
Utility companies
All the choices are correct
Tax agencies such as the IRS
Leasing companies
QuickBooks considers all of the following to be vendors except tax agencies such as the IRS.
QuickBooks is a cloud-based accounting program that assists small businesses in keeping track of their finances. QuickBooks is an accounting software package created by Intuit that is geared toward small and medium-sized companies.
QuickBooks has become the industry standard for accounting software. It has evolved into a wide range of financial management software that assists businesses in organizing their bookkeeping activities.
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Which statement best describe bookkeeping?
A) Main objective of bookkeeping is to keep the records of all transactions proper and systematic
B) Preparation of financial statements is part of bookkeeping functions.
C) The data provided from bookkeeping can be used to make decisions
D) Bookkeeping requires special skills due to its complex nature
A) The main objective of bookkeeping is to keep the records of all transactions proper and systematic. The correct option is A.
Bookkeeping is the process of recording, organizing, and maintaining financial transactions of a business. It involves systematically documenting all financial activities, including purchases, sales, expenses, and payments.
The main objective of bookkeeping is to ensure that accurate and complete records are kept for every transaction.
Option B is not the best description of bookkeeping because the preparation of financial statements is typically considered a part of accounting rather than bookkeeping.
Bookkeeping provides the raw data that is used in the preparation of financial statements, but the actual creation of financial statements is generally considered an accounting function.
Option C is correct as bookkeeping provides the data necessary for decision-making. The accurate records maintained through bookkeeping enable businesses to analyze their financial position, track expenses, monitor cash flow, and make informed decisions based on the financial data. The correct option is A.
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Assuming a stock sells for $71 and paid a $2 dividend yesterday, what is the stock's capital gains yield if it's dividends are expected to grow at 5.5% each year for the foreseeable future?
Given that the stock sells for $71 and paid a $2 dividend yesterday, we need to calculate the capital gains yield if its dividends are expected to grow at 5.5% each year for the foreseeable future.
Capital gains yield is the return on an investment generated by an increase in the stock price. We can calculate the capital gains yield using the following formula: Capital gains yield = (P1 - P0) / P0Where, P0 = initial price, P1 = final price won't have the final price. But we can assume that the stock price will grow at the same rate as the dividends. So the new price will be: P1 = P0 (1 + g)Here, g is the dividend growth rate.
It is given that dividends are expected to grow at 5.5% each year. Therefore, g = 0.055. Substituting the values of P0 and P1 in the above formula, we get: Capital gains yield = ($71(1 + 0.055) - $71) / $71= ($74.61 - $71) / $71= $3.61 / $71= 0.0509 or 5.09% Therefore, the stock's capital gains yield is 5.09% if its dividends are expected to grow at 5.5% each year for the foreseeable future.
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Consider the central bank balance sheet for the country of Riqueza. Riqueza current has $2,000 million escudos in its money supply, $1,300 million of which is backed b domestic government bonds; the rest is backed by foreign exchange reserves. Assum that Riqueza maintains a fixed exchange rate of 1 escudo per dollar, the foreign interest rate remains unchanged, and money demand takes the usual form, M/P L(i) Y Assume prices are sticky.
Show Riqueza's central bank balance sheet, assuming there are no private banks. What is the backing ratio?
The backing ratio for Riqueza is 1.857
The central bank balance sheet for Riqueza is as follows:AssetsLiabilitiesDomestic government bondsForeign exchange reservesCurrency in circulationTotal2,000 million escudos1,300 million escudos700 million escudos2,000 million escudosThe backing ratio is calculated as follows:
Backing ratio = (Domestic government bonds + Foreign exchange reserves) / Currency in circulation= (1,300 million escudos + (2,000 million escudos – 1,300 million escudos)) / 700 million escudos= 1.857
Therefore, the backing ratio for Riqueza is 1.857. This indicates that the central bank has more than sufficient reserves to back the country's money supply. This is because the backing ratio is greater than 1, which is the minimum required for the central bank to maintain a fixed exchange rate.
In other words, Riqueza's central bank is capable of intervening in the foreign exchange market to maintain the fixed exchange rate of 1 escudo per dollar.
This also means that Riqueza's central bank can afford to purchase additional foreign exchange reserves or domestic government bonds in order to expand the money supply if necessary.
Additionally, since prices are sticky, this suggests that any changes in the money supply will have a real effect on output and employment levels in the short run, but not in the long run.
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In ________ a neutral person investigates a complaint and develops findings that may be the basis for resolving an employee complaint.
a. training in employment discrimination
b. more than half
c. fact finding
d. job applicants
Answer:
I believe the answer is C. fact finding
In option c. fact finding, a neutral person investigates a complaint and develops findings that may be the basis for resolving an employee complaint.
Fact-finding is the process of conducting a comprehensive examination or investigation of an issue or dispute with the goal of producing a neutral, impartial report of relevant evidence. Fact-finding is often employed in labor disputes, contract disputes, or other types of disputes. Fact-finding provides an independent investigation that can be used by parties to reach an agreement, or by a court or arbitrator to decide an issue in a case. In cases of workplace disputes, fact-finding is used to investigate complaints of discrimination, harassment, or other types of misconduct.
Fact-finding can help identify the relevant facts and evidence in a case, provide a neutral perspective on the situation, and develop findings that may be used to resolve the dispute. Often, a neutral third party, such as an investigator or mediator, will conduct the fact-finding investigation to ensure that the process is impartial and unbiased.
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What is the approximate LM relation, of a closed economy, if the central bank sets both an interest rate i = 0.04, and inflation expectations +1 = 0.02? Consider the following equations which describe the closed economy from 4. and derive the IS relation: C = 100+ 0.75Y, I = 400+ 0.15Y - 1000 (r + x), G = T= 300, and x = 0.03. Solve the IS-LM model, from 4. and 5., for the equilibrium level of output, consumption and investment.
L = kY - hi is the given LM equation .The LM equation when Interest rate is 0.04 and Inflation rate is 0.02; LM equation- Ky=hi Ky=hiKy =0.004.
L in the LM equation stands for real money demand, Y for income, i for interest rate, k for real money demand's sensitivity to income, and h for real money demand's sensitivity to interest.
The IS equation is Y=C+I+GY
=100+0.75YD+400+0.15Y-1000(r+x)+300Y
=100+0.75(Y-300)+400+0.15Y-1000(r+0.03)+300Y
=100+0.75Y-225+400+0.15Y-1000r-30+300Y
=545+0.90Y-1000rY-0.9Y
=545-1000r0.1Y
=545-1000rY
=5450-10000r
The equilibrium Level of output:
Y=C+I+GY
=100+0.75YD+400+0.15Y-1000(r+x)+300Y
=100+0.75(Y-300)+400+0.15Y-1000(0.04+0.03)+300Y
=100+0.75Y-225+400+0.15Y-70+300Y
=505+0.90YY-0.9Y
=5050.1Y =505Y=1010
Consumption: C=100+0.75(Y-T)
=100+0.75(1010-300)
=100+532.5
=632.5
Investment:- I=400+0.15Y-1000(0.04+0.03)I
=400+0.15(1010)-70I
=400+151.5-70I
=481.5
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If the auditor wants to substantiate the completeness of recorded sales, the auditor should select items for testing from the
Sales invoice file
Sales journal
Shipping document file
Approved sales order file
If the auditor wants to substantiate the completeness of recorded sales, the auditor should select items for testing from the sales invoice file.
To substantiate the completeness of recorded sales, auditors perform testing on sales recorded in the financial statements. They gather data from different sources like sales journals, approved sales order files, sales invoice files, and shipping document files, to name a few.
To determine the completeness of recorded sales, auditors use tests like the cutoff test, sales invoice test, and shipping and handling test. When selecting items for testing, the auditor should choose a sample that represents all significant transactions for the period.
The auditor must choose items for testing that will help confirm whether all the recorded sales have been included. The sales invoice file is usually a key source for confirming sales recorded in the financial statements.
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In an article "Why China is Sticking With Its Covid Zero' Strategy" by Bloomberg on 11 February 2022 the author stated that, "Covid Zero has sent ripples through the global supply chain. Outbreaks have led to temporary production halts at the China based factories of top carmakers in the northern port city of Tianjin for people to undergo mass testing. Foxconn brielly suspended operations at its Shenzhen sites, one of which produces iPhones. The month long lockdown of Xi'an disrupted leading chipmakers Micron Technology Inc and Samsung Electronics Co., while Toyota Motor Corp. and Volkswagen AG had to suspend production at factories in Jilin Note: A ripple effect occurs when an initial disturbance to a system propagates outward to disturb an increasingly larger portion of the system, like ripples expanding across the water when an object is dropped into it. 2220 1b) TOOTO Use the International Production Networks (IPNS) to discuss the "ripple" effect mentioned in the article. TOOTO TO In 2020, the shortage in the supply of N95 face masks in most western countries highlighted just how dependent the West countries had become on production in China. Afterward, The Trump administration initiated a series of policy responses to "decouple from China". In this context, do you believe China could be decoupled from the western countries? If so, which countries will suffer most? If not, why not? 137 T
China cannot be decoupled from Western countries since it will disrupt supply chains and have a significant impact on the world economy is the answer.
In the article "Why China is Sticking With Its Covid Zero' Strategy" by Bloomberg on 11 February 2022, the author reported that China's zero-tolerance policy for COVID-19 has had a ripple effect throughout the global supply chain. The outbreaks led to temporary production halts at China's leading carmakers' factories in the port city of Tianjin. Production at Foxconn facilities, which manufacture iPhones, was briefly suspended. The month-long lockdown in Xi'an disrupted leading chipmakers Micron Technology Inc and Samsung Electronics Co. Production at Toyota Motor Corp. and Volkswagen AG's factories in Jilin was halted. The International Production Networks (IPNs) have been disrupted as a result of these interruptions.
Furthermore, China is a central node in many global supply chains, from automobiles to electronics and textiles, due to its large and well-developed manufacturing base. As a result, the pandemic and China's strict COVID-19 response have disrupted production and trade throughout the world.
The shortage in the supply of N95 face masks in most Western countries in 2020 showed how reliant the West had become on Chinese production. Consequently, the Trump administration began a series of policy responses aimed at "decoupling from China." However, it is difficult to decouple from China, particularly in terms of manufacturing, due to its significant manufacturing base and robust supply chains. As a result, Western nations would find it challenging to decouple from China. In conclusion, China cannot be decoupled from Western countries since it will disrupt supply chains and have a significant impact on the world economy.
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You are working for Medical Equipment Exports Group. Your corporation is going to pay an annual dividend of $5 per share and an extra dividend of $1.5 per share in 4 weeks. The company’s stock is currently listed and actively traded on the ASX.
The ex-dividend price for Medical Equipment Exports Group shares on the ASX is be $137.
When is the ex-dividend date for dividend payment?To know ex-dividend date, we will consider the settlement process of T+2. This means that the ex-dividend date will be two trading days before the record date.
The closing price the day before the ex-dividend date is $143.5. To know the ex-dividend price, we need to subtract the dividend amount from the closing price.
Given data:
The annual dividend is $5 per share
The extra dividend is $1.5 per share.
The total dividend is:
= $5 + $1.5
= $6.5 per share.
Ex-dividend price = $143.5 - $6.5
Ex-dividend price = $137.
Full question:
You are working for Medical Equipment Exports Group. Your corporation is going to pay an annual dividend of $5 per share and an extra dividend of $1.5 per share in 4 weeks. The company's stock is currently listed and actively traded on the ASX. Required: a) The standard process of settlement in ASX is T+2. If tomorrow is the record date for dividend payment for Medical Equipment Exports Group, when is the ex-dividend date for trading of this share on the ASX? Calculate the ex-dividend price if the corporation's closing price the day before ex-dividend date is $143.5, assuming the dividend flat tax rate is 17%.
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（1）The firm’s interest in the venture can be sold after three
years with an estimated after-tax salvage value of $9 million.What
is the IRR of this investment?
A,15.3%
B,14.1%
C,19.7%
The correct answer is option b. The IRR of the investment is 14.1%.
The firm’s interest in the venture can be sold after three years with an estimated after-tax salvage value of $9 million.
To determine the IRR of this investment, the following formula can be used: IRR = r + NPVn / A × {1 − [(1 + r)⁻ⁿ]} Where: NPVn is the net present value of cash flows at period n.
A is the initial cash investment. r is the interest rate or discount rate.
The initial investment in the venture is $12 million.
The cash inflows from the venture for the next three years are expected to be $5 million, $6 million, and $8 million, respectively, and the after-tax cash outflow is expected to be $1 million.
The calculation of the IRR is as follows: NPV = ($5,000,000 ÷ (1 + r)¹) + ($6,000,000 ÷ (1 + r)²) + ($8,000,000 ÷ (1 + r)³) − ($1,000,000 ÷ (1 + r)³)− $12,000,000
The equation is equal to 0 = NPV, and the solution for r in this equation will give the IRR of the investment.
The IRR of the investment is 14.1%.
Therefore, the correct option is (B) 14.1%.
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What is the formula for calculating working capital (WC)?
Working capital (WC) is the capital available to finance the day-to-day activities of an organization.
It is a measure of an organization's short-term liquidity, i.e., its ability to pay off its current liabilities using its current assets.
The formula for calculating working capital (WC) is as follows
:Working capital (WC) = Current assets - Current liabilities
Current assets are assets that can be converted into cash within a year, while current liabilities are liabilities that are due within a year.
Examples of current assets include cash, accounts receivable, and inventory, while examples of current liabilities include accounts payable and short-term loans
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"On January 1, 2020, Booker Corp. issued $9 million of ten year bonds at 100.5 (Booker amortizes any premium/discount on a straight line basis). Each $1,000 bond is convertible into 30 shares of Booker's $7.00 par value common stock.
On January 1, 2024, holders of 70% of the bonds exercised the privilege, and converted their bonds into Booker common stock. The journal entry to record the conversion will include a credit to ""Paid in Capital in Excess of Par - Common"" of ______
To calculate the credit to "Paid in Capital in Excess of Par - Common" account, we need to first calculate the number of shares issued and then multiply the same with the excess of the conversion price over the par value of shares issued.
Firstly, we need to calculate the number of shares issued:Number of Bonds converted = 70% of $9,000,000 = $6,300,000Therefore, Number of shares issued = $6,300,000 ÷ $1,000 per bond × 30 shares per bond= 189,000 sharesNext, we need to calculate the excess of conversion price over the par value of shares issued:Conversion Price = $1,000 ÷ 30 shares = $33.33 per sharePar value of shares issued = 189,000 shares × $7 par value per share= $1,323,000Therefore, the excess of conversion price over par value of shares issued = 189,000 shares × ($33.33 - $7) per share= $10,122,300Thus, the journal entry to record the conversion will include a credit to "Paid in Capital in Excess of Par - Common" of $10,122,300. Convertible bonds are a type of security that provides the bondholder with the option to convert the bond into a specific number of shares of the issuer's common stock. This option is generally given to the bondholder as an incentive to purchase the bond at a lower yield than they would otherwise demand. In the given scenario, Booker Corp. issued $9 million of ten year bonds that were convertible into 30 shares of Booker's $7.00 par value common stock each. On January 1, 2024, holders of 70% of the bonds exercised the privilege, and converted their bonds into Booker common stock. The journal entry to record the conversion will include a credit to "Paid in Capital in Excess of Par - Common" of $10,122,300.
The calculation is done by first calculating the number of shares issued and then multiplying the same with the excess of the conversion price over the par value of shares issued.
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why are low-income countries at a disadvantage when it comes to economic growth? select the correct answer below: they save too much, disallowing for investments into physical and human capital they all suffer from extreme hyperinflation they do not have strong alliances with high-income countries any income that people receive are spent immediately on necessities such as food
Low-income countries are at a disadvantage when it comes to economic growth because any income that people receive are spent immediately on necessities such as food.
In low-income countries, a significant portion of the population lives in poverty, and their incomes are often just enough to cover basic needs. As a result, they have limited capacity to save or invest in physical and human capital, which are crucial for economic growth.
Without sufficient savings, it becomes challenging to accumulate funds for investments in infrastructure, education, healthcare, and technology, which are vital for long-term economic development. Additionally, the lack of savings inhibits the formation of financial capital, making it difficult to mobilize resources for productive investments.
Therefore, the immediate spending of income on necessities limits the ability of low-income countries to generate economic growth and improve living standards. Addressing this issue requires efforts to alleviate poverty, enhance income levels, promote savings, and create an environment conducive to investment and economic development.
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Cascade Company was started on January 1, Year 1, when it acquired $153,000 cash from the owners. During Year 1, the company earned cash revenues of $97,900 and incurred cash expenses of $69,900. The company also paid cash distributions of $9,500.
Required:
Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet
To prepare the Year 1 financial statements for Cascade Company, we will start with the income statement, followed by the capital statement (statement of changes in equity), and finally, the balance sheet.
1. Income Statement:
The income statement shows the revenues earned and expenses incurred during a specific period, resulting in the net income or net loss.
Income Statement for Year 1:
Revenues:
Cash Revenues: $97,900
Expenses:
Cash Expenses: $69,900
Net Income: Revenues - Expenses
Net Income: $97,900 - $69,900
Net Income: $28,000
The income statement shows that Cascade Company earned a net income of $28,000 during Year 1.
2. Capital Statement (Statement of Changes in Equity):
The capital statement summarizes the changes in the owners' equity during a specific period. In this case, the only change in equity is the initial cash investment by the owners and the cash distributions made.
Capital Statement for Year 1:
Owners' Equity at the beginning of Year 1: $153,000
Add: Cash Investment by Owners: $153,000
Total Owners' Equity: $153,000 + $153,000
Total Owners' Equity: $306,000
Less: Cash Distributions: $9,500
Owners' Equity at the end of Year 1: $306,000 - $9,500
Owners' Equity at the end of Year 1: $296,500
The capital statement shows that the owners' equity at the end of Year 1 is $296,500.
3. Balance Sheet:
The balance sheet provides a snapshot of the company's financial position at a specific point in time, showing its assets, liabilities, and owners' equity.
Balance Sheet for Year 1:
Assets:
Cash: $97,900 (From the income statement)
Total Assets: $97,900
Liabilities:
None (As no liabilities are mentioned in the question)
Owners' Equity:
Owners' Equity: $296,500 (From the capital statement)
Total Liabilities and Owners' Equity: $97,900 + $296,500
Total Liabilities and Owners' Equity: $394,400
The balance sheet shows that Cascade Company has total assets of $97,900 and total owners' equity of $296,500, resulting in total liabilities and owners' equity of $394,400.
In summary, the Year 1 financial statements for Cascade Company include an income statement showing a net income of $28,000, a capital statement showing owners' equity of $296,500 at the end of Year 1, and a balance sheet reflecting total assets of $97,900 and total owners' equity of $296,500.
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