Answer:
the required time is 36 seconds
Explanation:
The computation of the required time is given below:
= Production time available ÷ desired output
= (8 hours × 60 minutes × 60 seconds) ÷ 800 units
= 28,800 ÷ 800
= 36 seconds
hence, the required time is 36 seconds
Number of Employees 20 Average Salary per employee $ 30,000 Weeks per year 52 Minutes available per week 2,400 Practical capacity percentage 80 % If a company uses time-driven activity-based costing, what is the practical capacity of resources supplied in minutes
Answer:
1,996,800 minutes
Explanation:
Calculation for what is the practical capacity of resources supplied in minutes
Practical capacity of resources supplied =52 weeks × 2,400 minutes per week× 80% × 20 employees
Practical capacity of resources supplied= 1,996,800 minutes
Therefore the practical capacity of resources supplied in minutes is 1,996,800 minutes
What are Apple’s dollar amounts for assets, liabilities, and equity at September 29, 2018? Confirm that the accounting equation holds in this case. Assets = Liabilities + Equity Answer Answer Answer Round to one decimal place (i.e. 34.5%) What percent of Apple’s assets is financed from creditor financing sources?
Answer:
70.7%
Explanation:
Note: The full question is attached as picture below
Percent of Apple's assets is financed from creditor financing sources = Liabilities / Assets
Percent of Apple's assets is financed from creditor financing sources = $258,578 / $365,725
Percent of Apple's assets is financed from creditor financing sources = 0.70702851
Percent of Apple's assets is financed from creditor financing sources = 70.7%
What are fixed assets?
Explanation:
Fixed assets, also known as long-lived assets, tangible assets or property, plant and equipment, is a term used in accounting for assets and property that cannot easily be converted into cash. This can be compared with current assets such as cash or bank accounts, described as liquid assets.
Answer:
Fixed assets, also known as long-lived assets, tangible assets or property, plant and equipment, is a term used in accounting for assets and property that cannot easily be converted into cash. This can be compared with current assets such as cash or bank accounts, described as liquid assets.
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Explanation:
Summary of opportunity cost
Describe the role of communication in effective leadership. Discuss your own administration style and how it may influence your successful completion of your program of study. Use headings to support the organization of your content. (1,000 words, two scholarly sources, APA format) Discuss in your owns words
Answer:
Knowledge and ideas of leader are shared with the team through effective communication.
Explanation:
A good leader possesses many qualities among which effective communication is an essential quality which a leader must have. Leader should be able to express his ideas and inspire others through his leadership skills. Leader should communicate with its team in a routine language and should not use jargons. The team should be involved in decision making and ideas should be gathered through brainstorming.
State if each of the following statements is true or false. Justify your answers. The efficient-market hypothesis assumes that a. There are no taxes. b. There is perfect foresight. c. Successive price changes are independent. d. Investors are irrational. e. There are no transaction costs. f. Forecasts are unbiased.
Answer:
a. FALSE
The Efficient Market Hypothesis has no assumption that limits the role of taxes in the model so this statement is false.
b. FALSE
The model does believe in the notion of imperfect foresight because the model follows the assumption that it is not possible to estimate stock price with absolute accuracy.
c. TRUE
The model does indeed believe this because it assumes that the price on a day is independent of the price of the same stock on another day.
d. FALSE
It it believed that investors are rational.
e. FALSE
Transaction costs are catered for in the model so this statement is incorrect.
f. TRUE
As much as possible, the model does not allow for the creation of biased forecasts as it strives for no bias in its forecasts.
Melissa is an unmarried person who earns a salary of $54,000 per year and has $500 of interest income. Her itemized deductions total $2,500. She is able to use a non-refundable credit of $400. She has $5,000 of federal income taxes withheld from her wages. What is the amount of Melissa's REFUND OR TAX DUE FOR 2020
Answer:
$6150
Explanation:
These are the details of Melissa's income
Salary = $54000
Interest income = 500
Itemized deductions = $ 2500
Non refundable credit = $400
Withheld federal income tax = $5000
We have to calculate the amount of her tax return for year 2020
Taxable income = 54000+500-2500
= $52500
Tax rate 22%
Tax on taxable income = 52500x0.22
= 11550
Minus non refundable credit = 11550-400
Minus federal tax withheld = 11550-400-5000
= $6150
University Car Wash built a deluxe car was across the street from campus. The new machines cost $246,000 including installation. The company estimates that the equipment will have a residual value of $27,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours.
1) 2,800
2) 1,900
3) 2,000
4) 2,000
5) 1,800
6) 1,500
Prepare a schedule for six-years using straight- line, double-declining balance, and activity-based method.
Answer:
straight line depreciation
depreciable value = $246,000 - $27,000 = $219,000
depreciation rate per year = $219,000 / 6 = $36,500
double-declining balance
depreciation rate year 1 = 2 x 1/6 x $246,000 = $82,000
depreciation rate year 2 = 2 x 1/6 x $164,000 = $54,667
depreciation rate year 3 = 2 x 1/6 x $109,333 = $36,444
depreciation rate year 4 = 2 x 1/6 x $72,889 = $24,296
depreciation rate year 5 = 2 x 1/6 x $48,593 = $16,198
depreciation rate year 6 = $32,395 - $27,000 = $5,395
units of activity
depreciable value = $246,000 - $27,000 = $219,000
depreciation rate per unit = $219,000 / 12,000 = $18.25 per unit
depreciation rate year 1 = $18.25 x 2,800 = $51,100
depreciation rate year 2 = $18.25 x 1,900 = $34,675
depreciation rate year 3 = $18.25 x 2,000 = $36,500
depreciation rate year 4 = $18.25 x 2,000 = $36,500
depreciation rate year 5 = $18.25 x 1,800 = $32,850
depreciation rate year 6 = $18.25 - 1,500 = $27,375
Assume that you live in California and are on vacation, traveling by car from California to Texas. You are injured in a motel room when the bed on which you are sleeping collapses, causing you to fall to the floor. You suffer substantial back and leg injuries, requiring many medical treatments and causing you to miss work for 15 weeks. Your medical bills total $50,000 and your lost wages total $15,000. You intend to sue the owner of the Texas motel.
Required:
a. Can you bring your case in federal court? Why or why not?
b. Can you commence the case in California? What additional information might you need to answer this question?
c. At the end of the trial, the jury awards you $100,000 ($50,000 for medical, $15,000 for lost wages and $35,000 for punitive damages). After the trial, the attorney for the hotel approaches and offers to settle the case for $50,000. Should you consider accepting the settlement? Why or why not?
Answer:
a. No. A state court will do a better job in this case because it exercises unlimited jurisdiction. Moreover, you can only bring your case to a federal court if the amount of your claim is up to $75,000 or the issue is exclusive to the federal court. This is not the case here.
b. Yes and No. We need some additional information about the accident location to help answer this question definitively.
c. No. You should not consider accepting the offered settlement. The jury award is meant to pay for your medical bills and also to help you recover financially as though the accident did not happen in the first place. Accepting any lesser amount after the judgment is rendered is in bad taste. The other party should have negotiated to settle out of court before the final judgment was rendered. But it did not. So, go with the jury award.
Explanation:
a) Data and Calculations:
Missed work for 15 weeks
Total medical bills incurred = $50,000
Total lost wages incurred = $15,000
Jury award = $100,000 ($50,000 for medical, $15,000 for lost wages and $35,000 for punitive damages)
Settlement offer = $50,000
Following is an extract of account balances of Wilson Mowing Services as of December 31 of the first year of operation. Accounts Receivable $7,000 Accounts Payable 4,000 Salaries Expense 6,000 Repairs Expense 500 Truck 8,000 Equipment 10,000 Notes Payable 8,100 Cash 7,300 Supplies Expense 1,400 Service Revenue 35,000 Gasoline Expense 3,800 Salaries Payable 300 What is the amount of total assets at the end of the year
Answer:
$32,300
Explanation:
With regards to the above, the amount of total assets is the addition of current assets + Fixed assets.
= Accounts receivables + Cash + Truck equipment
= $7,000 + $7,300+ $8,000 + $10,000
= $32,300
Therefore ,
Total assets = $32,300
Select the correct answer.
The restaurant manager rarely offers instructions. He expects employees to make decisions without input. He is nice and cares about them, but
they often don't have what they need at the restaurant or don't have enough people working. He is an example of a:
OA Authoritarian leader
OB. Free rein leader
OC, Democratic leader
OD. Narcissistic leader
Answer:
B.
Explanation:
Free rein leadership, also known as the Laissez-Faire style, is a type of leadership in which the manager or leader allows their employees to make decisions. In this form of leadership, the manager gives his/her employees objectives and does not provide any guidance on how to achieve those objectives.
In the given case, this restaurant manager exhibits the quality of free-rein leadership. He has set his employees off the noose to allow them to make decisions on their own.
So, option B is the correct answer.
Answer:
b, free rein leader
Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $480 100 Variable costs 312 65 Unit contribution margin $168 35 Assume that Staley Co. is currently selling 600 computer monitors per month and monthly fixed costs are $80,000. Staley Co.'s margin of safety ratio (MOS%) if 600 units are sold would be (round intermediate calculation up to nearest whole number of units): 79.5%. 19.5%. 33.4%. 17.7%. 20.5%.
Answer:
20.5%
Explanation:
Calculation for what Staley Co.'s margin of safety ratio (MOS%) if 600 units are sold would be
First step is to calculate Break-even amount
Break-even = $80,000/($480-$312)
Break-even= 476.19
Break-even= 477 approximately
Second step is to calculate the Margin of Safety
Margin of Safety = 600-477
Margin of Safety= 123
Now let calculate the margin of safety ratio
Margin of safety ratio=123/600
Margin of safety ratio=20.5%
Therefore Staley Co.'s margin of safety ratio (MOS%) if 600 units are sold would be 20.5%
You run a school in Florida. Fixed monthly cost is $5,835.00 for rent and utilities, $5,906.00 is spent in salaries and $1,061.00 in insurance. Also every student adds up to $100.00 per month in stationary, food etc. You charge $678.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,538.00, salaries to $6,613.00 and insurance to $2,290.00 per month. Variable cost per student will increase up to $192.00 per month. However you can charge $1,099.00 per student. You want to determine in percent the new charge compared to the previous charge. To calculate this, divide the new change per student by the previous charge per student, keep in a decimal form and round to 3 decimal points.
Answer: 1.621
Explanation:
The old charge per student was $678 per month
The new charge is $1,099.
The percent of the new charge compared to the old according to the question methodology is:
= New charge per student / old charge per student
= 1,099/678
= 1.621
A management dilemma defines the research question. Group startsTrue or FalseTrue, selectedFalse, unselected
Answer:
False
Explanation:
It is not always the case that a management dilemma results in the research question. However, a research question might be defined by an identified need for improvement.
A management dilemma defines the research question is false. The correct option is false.
A research topic is defined as "a question that a research project seeks to answer." A research question must be chosen for both quantitative and qualitative research. Data gathering and analysis will be required for the investigation, and the methods for this may vary greatly. Good research topics are usually focused and specific in order to improve understanding on an essential topic.
To formulate a research topic, one must first decide if the study will be qualitative, quantitative, or mixed. Other circumstances, such as project finance, may have an impact not only on the research topic itself, but also on when and how it is created during the research process.
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Requirement Assume that all supplies purchased were used in operations in the year of purchase. Rental payments pertain to rental space used in the year of payment. 1. Prepare an income statement for for and under both the cash and the accrual basis of accounting. 2. Compute operating cash flow for both years under cash and accrual bases.
Question Completion:
You are provided the following information for the Del Campo Consulting Associates.
2019 2018
Service revenue (accrual basis) $250,000 $185,000
Cash collected from clients 97,000 80,000
Operating expenses:
Salary expense (accrual basis) 12,000 16,500
Purchased supplies for cash 4,000 2,500
Purchased supplies on account 1,000 1,500
Depreciation expense 2,000 2,000
Rent paid in cash 7,000 3,000
Prepaid insurance 5,500 0
Answer:
Del Campo Consulting Associates
Accrual Basis Cash Basis
Income Statements 2019 2018 2019 2018
Service revenue $250,000 $185,000 $97,000 $80,000
Operating Expenses:
Salary expense 12,000 16,500 0 0
Supplies 5,000 4,000 4,000 2,500
Depreciation 2,000 2,000 0 0
Rent 7,000 3,000 7,000 3,000
Prepaid Insurance 0 0 5,500 0
Total operating expenses $26,000 $25,500 $16,500 $5,500
Net income $224,000 $159,500 $80,500 $74,500
2. Compute Operating Cash Flow under cash and accrual basis:
Accrual Basis Cash Basis
Operating Cash Flow 2019 2018 2019 2018
Cash collected from clients $80,500 $74,500 $80,500 $74,500
Purchased supplies (4,000) (2,500) (4,000) (2,500)
Rent paid in cash (7,000) (3,000) (7,000) (3,000)
Prepaid insurance (5,500) (5,500)
Net operating cash flows $64,000 $69,000 $64,000 $69,000
Explanation:
The net income reported the accrual basis and that reported under the cash basis are different. The accrual basis considers all revenue whether actually received or not, the cash basis only considers cash received from clients in each period. However, the net operating cash flows under the two bases are the same. The reason for this is that only actual cash flows are considered under the two bases.
Ice is food, but it must not be handled with the same degree of care as other food. T or false
Answer:
False............................
The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances:
Account Title Debits Credits
Cash 29,300
Accounts receivable 17,000
Equipment 29,000
Accumulated depreciation 8,700
Salaries payable 9,500
Common stock 48,000
Retained earnings 9,100
Total 75,300 75,300
The following is a summary of the transactions for the year:
Service revenue, $130,000, of which $39,000 was on account and the balance was received in cash.
Collected on accounts receivable, $26,200.
Issued shares of common stock in exchange for $15,000 in cash.
Paid salaries, $47,500 (of which $9,500 was for salaries payable at the end of the prior year).
Paid miscellaneous expense for various items, $25,600.
Purchased equipment for $17,500 in cash.
Paid $3,150 in cash dividends to shareholders.
Accrued salaries at year-end amounted to $950.
Depreciation for the year on the equipment is $2,900.
Required:
2., 5, & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed.
3. Post the transactions, adjusting and closing entries into the appropriate t-accounts.
4. Prepare an unadjusted trial balance.
6. Prepare an adjusted trial balance.
7-a. Prepare an income statement for 2021.
7-b. Prepare a balance sheet as of December 31, 2021.
9. Prepare a post-closing trial balance.
Answer:
Realidades 2 WKBK page 109
Explanation:
Realidades 2 WKBK page 109
NEED HELP ASAP
There 22 Question
The capital balance for Messalina is $210,000 and for Romulus is $140,000. These two partners share profits and losses 60 percent (Messalina) and 40 percent (Romulus). Claudius invests $100,000 in cash in the partnership for a 20 percent ownership. The bonus method will be used. What are the capital balances for Messalina, Romulus, and Claudius after this investment is recorded
Answer: $216,000 , $144,000 , $90,000
Explanation:
The capital balances for Messalina, Romulus, and Claudius after this investment is recorded will be calculated thus:
Messalina:
Capital balance: $210,000
Bonus share: 60% × $10000 = $6,000
New capital balance: $216,000
Romulus:
Capital balance: $140,000
Bonus share: 40% × $10000 = $4,000
New capital balance: $144,000
Claudius:
Capital balance: $100,000
Bonus share: 10% × $10000 = ($10,000)
New capital balance: $90,000
The answer is $216,000 , $144,000 , $90,000
Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2020 information related to Blossom Company ($000 omitted).
Administrative expense
Officers' salaries $5,488
Depreciation of office furniture and equipment 4,548
Cost of goods sold 61,158
Rent revenue 17,818
Selling expense Delivery expense 3,278
Sales commissions 8,568
Depreciation of sales equipment 7,068
Sales revenue 97,088
Income tax 9,658
Interest expense 2,448
Required:
a. Prepare income statement for the year 2014 using the mutiple-step form. Common shares outstanding for 2014 total 40,550 (000 omitted).
b. Prepare an income statement for the year 2014 using the single-step form.
Answer:
Part a
Blossom Company
Income statement for the year 2014 - multiple-step form
$000
Sales revenue 97,088
Less Cost of goods sold (61,158)
Gross Profit 35,930
Less Operating Expenses :
Administrative expense
Officers' salaries 5,488
Depreciation of office furniture and equipment 4,548 (10,036)
Selling expense :
Delivery expense 3,278
Sales commissions 8,568
Depreciation of sales equipment 7,068 (18,914)
Operating Income (Loss) 6,980
Less Non Operating Expenses :
Income tax 9,658
Interest expense 2,448 (12,106)
Net Income (Loss) (5,126)
Part b
Blossom Company
Income statement for the year 2014 - single-step form
$000
Sales revenue 97,088
Less Cost of goods sold (61,158)
Gross Profit 35,930
Less Expenses :
Officers' salaries 5,488
Depreciation of office furniture and equipment 4,548
Delivery expense 3,278
Sales commissions 8,568
Depreciation of sales equipment 7,068
Income tax 9,658
Interest expense 2,448 (41,056)
Net Income (Loss) (5,126)
Explanation:
The multiple-step form shows the Operating Income and Net Income separately by grouping expenses as either operating and non-operating expenses.
The single-step form shows all expenses under one category and no grouping of expenses as either operating or non-operating.
Consider a town in which only two residents, Bob and Cho, own wells that produce water safe for drinking. Bob and Cho can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water.
Price Quantity Demanded Total Revenue
(Dollars per gallon) (Gallons of water) (Dollars)
4.20 0 0
3.85 40 $154.00
3.50 80 $280.00
3.15 120 $378.00
2.80 160 $448.00
2.45 200 $490.00
2.10 240 $504.00
1.75 280 $490.00
1.40 320 $448.00
1.05 360 $378.00
0.70 400 $280.00
0.35 440 $154.00
0 480 0
Suppose Bob and Cho form a cartel and behave as a monopolist. The profit-maximizing __________price isper gallon, and the total output is__________gallons. As part of their cartel agreement, Bob and Cho agree to split production equally. Therefore, Bob's profit is__________, and Cho's profit is____________.
Suppose that Bob and Cho have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Bob says to himself, "Cho and I aren't the best of friends anyway. If I increase my production to 40 gallons more than the cartel amount, I can increase my profit even though her profit goes down. I will do that starting tomorrow."
After Bob implements his new plan, the price of water ________ to__________per gallon. Given Cho and Bob's production levels, Bob's profit becomes________ and Cho's profit becomes___________. Because Bob has deviated from the cartel agreement and increased his output of water to 40 gallons more than the cartel amount, Cho decides that she will also increase her production to 40 gallons more than the cartel amount. After Cho increases her production, Bob's profit becomes__________, Cho's profit becomes_________, and total profit (the sum of the profits of Bob and Cho) is now____________.
Answer:
Suppose Bob and Cho form a cartel and behave as a monopolist. The profit-maximizing price is 2.10 per gallon, and the total output is 240 gallons. As part of their cartel agreement, Bob and Cho agree to split production equally. Therefore, Bob's profit is $252 and Cho's profit is $252.
Suppose that Bob and Cho have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Bob says to himself, "Cho and I aren't the best of friends anyway. If I increase my production to 40 gallons more than the cartel amount, I can increase my profit even though her profit goes down. I will do that starting tomorrow."
After Bob implements his new plan, the price of water decreases to 1.75 per gallon. Given Cho and Bob's production levels, Bob's profit becomes 280 and Cho's profit becomes 210 . Because Bob has deviated from the cartel agreement and increased his output of water to 40 gallons more than the cartel amount, Cho decides that she will also increase her production to 40 gallons more than the cartel amount. After Cho increases her production, Bob's profit becomes 224 , Cho's profit becomes 224 , and total profit (the sum of the profits of Bob and Cho) is now 448.
Explanation:
Suppose Bob and Cho form a cartel and behave as a monopolist. The profit-maximizing price is 2.10 per gallon, and the total output is 240 gallons. As part of their cartel agreement, Bob and Cho agree to split production equally. Therefore, Bob's profit is $252 and Cho's profit is $252.
Suppose that Bob and Cho have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Bob says to himself, "Cho and I aren't the best of friends anyway. If I increase my production to 40 gallons more than the cartel amount, I can increase my profit even though her profit goes down. I will do that starting tomorrow."
After Bob implements his new plan, the price of water decreases to 1.75 per gallon. Given Cho and Bob's production levels, Bob's profit becomes 280 and Cho's profit becomes 210 . Because Bob has deviated from the cartel agreement and increased his output of water to 40 gallons more than the cartel amount, Cho decides that she will also increase her production to 40 gallons more than the cartel amount. After Cho increases her production, Bob's profit becomes 224 , Cho's profit becomes 224 , and total profit (the sum of the profits of Bob and Cho) is now 448.
A company has derivatives transactions with Banks A, B, and C which are worth +$20 million, −$15 million, and −$25 million, respectively to the company. How much margin or collateral does the company have to provide? The transactions are cleared bilaterally and are subject to one-way collateral agreements where the company posts variation margin, but no initial margin. The transactions are cleared centrally through the same CCP and the CCP requires a total initial margin of $10 million.
Answer:
1. With Bilateral Clearing, where the company posts variation margin, but no initial margin:
The company has to provide collateral to Banks A, B, and C of $0 million, $15 million, and $25 million respectively.
Therefore, the total collateral required is $40 million.
2. With Central Clearing through the CCP, where the CCP usually requires an initial margin of $10 million:
The derivatives are netted against each other, and the company’s total variation margin is $20 million (–$20 + $15 + $25) in total.
The total margin required (including the initial margin) is, therefore, $30 million ($20 + $10 million).
Explanation:
a) Data and Calculations:
Worth of derivative with Bank A = +$20 million
Worth of derivative with Bank B = -$15 million
Worth of derivative with Bank C = -$25 million
b) In a bilateral clearing, the company and each bank (called market participants) enter into an agreement with each other to cover all outstanding derivative transactions between the two parties. On the other hand, in central clearing, a central clearing party (CCP) stands between the two sides of an OTC derivative transaction in much the same way that the exchange clearing house does for exchange-traded contracts.
Jessica can produce 2 boats in a day or 100 umbrellas in a day. Paul can produce 3 boats in a day or 120 umbrellas in a day. This means that for every boat that Jessica produces, her opportunity cost is 50 umbrellas. For every boat Paul produces, his opportunity cost is 40 umbrellas. What would you illustrates the idea of comparative advantage?
Answer: B. Paul is relatively better at producing boats because he gives up fewer umbrellas per boat.
Explanation:
Comparative advantage is a notion introduced by famous economist, David Ricardo. It argues that entities should produce the goods that they have a lower opportunity cost in producing as this would prove they are better at producing said goods because they are more efficient.
In this scenario, Paul most definitely has a comparative advantage over Jessica in the production of boats because he has a lower opportunity cost of 40 umbrellas when he does so. He is therefore more efficient at it than Jessica.
The option that illustrates comparative advantage is Paul is relatively better at producing boats because he gives up fewer umbrellas per boat.
What is comparative advantage?A person has comparative advantage in production of a good or service if it produces the good at a lower opportunity cost when compared to other people.
A person has a lower opportunity cost if it gives up fewer of other goods to produce a good. Paul has a comparative advantage in the production of boats. Jessica has a comparative advantage in the production of umbrellas.
Here are the options to this question:
A. Jessica produces fewer boats in a day than Paul, so she has comparative advantage in producing boats.
B. Paul is relatively better at producing boats because he gives up fewer umbrellas per boat.
C. Paul is better at producing boats because he can produce more boats in a day.
D. There is no comparative advantage in this case because Paul can produce more goods in a day.
E. Jessica produces fewer umbrellas in a day than Paul, so she has comparative advantage in producing boats.
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Sunland Corp. obtained a trade name in January 2019, incurring legal costs of $69,840. The company amortizes the trade name over 8 years. Sunland successfully defended its trade name in January 2020, incurring $19,012 in legal fees. At the beginning of 2021, based on new marketing research, Sunland determines that the fair value of the trade name is $58,200. Estimated future net cash flows from the trade name are $62,080 on January 4, 2021. Prepare the necessary journal entries for the years ending December 31, 2019, 2020, and 2021
Answer:
See below
Explanation:
2019
December 31
Amortization expense - Trade name $8,730
Trade name $8,730
($69,840 ÷ 8)
2020
December 31
Amortization expense - Trade name $11,446
Trade name
$11,446
[($69,840 - $8,730 + $19,012) ÷ 7 years ]
2021
December 31
Loss on impairment
$10,476
Trade name
$10,476
Carrying value ($69,840 - $8,730 + $19,012 - $11,446)
$68,676
Less recoverable amount
($58,200)
Loss on impairment
$10,476
2021
December 31
Amortization expense - Trade name
$9,700
Trade name
$9,700
[$58,200 ÷ 6 years]
DRK, Inc., has just sold 100,000 shares in an initial public offering. The underwriter’s explicit fees were $60,000. The offering price for the shares was $40, but immediately upon issue, the share price jumped to $44. a. What is the total cost to DRK of the equity issue? b. Is the entire cost of the underwriting a source of profit to the underwriters? multiple choice Yes No
Answer: a. $460,000 ; b. No
Explanation:
a. What is the total cost to DRK of the equity issue?
First, we calculate the implicit cost per share which will be:
= $44 - $40 = $4.
Therefore, the total implicit cost will be:
= $4 × 100,000
= $400,000
Therefore, total cost to DRK of the equity issue will be:
= Implicit cost + Explicit cost
= $400,000 + $60,000
= $460,000
b. Is the entire cost of the underwriting a source of profit to the underwriters?
No. The entire cost of the underwriting would not be a source of profit to the underwriters. This is because the cost of underpricing isn't included.
What is the difference between feedback and coaching?
Answer:
Coaching is about assisting employees reach their goals for the future. Feedback is about helping employees understand what prevents them from reaching their current goals.
Explanation:
Departmental overhead rates are preferred over plantwide rates when: Multiple Choice The plant makes a single product. The products use different amounts of different processes in different departments. There are a number of different products in the plant which go through the same processes. The plant has a complex production process for a small number of products that go through the same production processes.
Answer:
The products use different amounts of different processes in different departments
Explanation:
Plant Wide overhead rates is basically a single rate that is used to assign to the company's manufacturing overhead costs. This is best used when a company produces single product. On the other hand, if the manufacturing of different products with use of different processes is being done then using plant wide rate (which applies only a single rate) might not be appropriate.
The activities of the diversified products would have a high correlation with regard to the input of overheads. Therefore, the departmental overhead rates are preferred when the products use different amounts of different processes in different departments.
Suppose in the market for lattes there is an improvement in latte technology, which allows lattes to be produced at lower costs. We can say for certain that in the latte market
A. consumer surplus will increase and total surplus will increase.
B. consumer surplus will increase but total surplus will decrease
C. consumer surplus will decrease and total surplus will increase.
D. consumer surplus will decrease and total surplus will decrease
Answer:
A. consumer surplus will increase and total surplus will increase.
Explanation:
In the case when there is an improvement in the latte technology that permits to generate at the lesser cost this would decrease the production cost that improve the profit margin as a result the production and the supply would increased
Also if the supply would rise so there is a reduction in the equilibrium price but rise in equilibrium quantity
So, the first option is correct
Beth, an employer, wants to hire someone for a strenuous job that requires a great deal of training, which will take place over the course of several years. The applicant who appears most qualified is 58 years old; however, Beth is concerned that the applicant will not be able to handle the physical demands of the position in the long run. Further, she is concerned that the applicant will only continue working for several more years before she retires. Does Beth hire the applicant anyway
Answer:
Beth should not hire the applicant.
Explanation:
Based on common hiring practices, Beth should not hire the applicant. Mainly due to the applicant's age. It costs a company a large amount of money to properly train an employee in order to have them be as efficient as possible when working for the company. This is regardless of their current experience, therefore if a candidate is as old as this particular candidate and is already thinking of retiring then it will be a waste of company resources to hire the individual candidate. Instead, Beth should go for someone with the same experience/skills but will instead be with the company for the long term.
1. Friedman distinguishes between the two concepts that (a) businesses really do act in ways to maximize profit and (b) businesses have a moral responsibility (or, as he puts it, a social responsibility) to act to maximize profit. How does he defend the latter position? (See both the Friedman and Sandbu readings)
Explanation:
Friedman defends the position that companies have a social responsibility to act to maximize profit, in the sense that, the primary function of companies is to generate profit. The author goes against the growing opinions in society that companies must have social responsibility, that is, they need to create a positive and sensitive corporate image to please political and society interests and counter or even soften the words and actions its central purpose, which is profit generation. For him, social responsibility cannot be politicized in order to be an obligation of companies, as it limits freedom and interests arising from the business.