Answer:
General Journals
July 3.
Merchandise $62,650 (debit)
Accounts Payable : Hamling Co. $62,650 (credit)
Purchase of Merchandise on credit from Hamling Co
July 5.
Merchandise $33,450 (debit)
Account Payable : Kester Co $33,450 (credit)
Purchase of Merchandise on credit from Kester Co
July 6.
Account Receivable : Parsley Co $36,000 (debit)
Cost of Sales $25,000 (debit)
Sales Revenue $36,000 (credit)
Merchandise $25,000 (credit)
Sale of Merchandise on credit to Parsley Co
July 7.
Account Payable: Kester Co $6,850 (debit)
Merchandise $6,850 (credit)
Merchandise Returned to Kester Co
July 13.
Account Payable : Hamling Co. $62,650 (debit)
Discount Received $1,253 (credit)
Cash $61,397 (credit)
Payment of Merchandise supplied by Hamling Co. Net Cash Discount
July 15.
Account Payable : Kester Co. $26,600 (debit)
Discount Received $532 (credit)
Cash $26,068 (credit)
Payment of Merchandise supplied by Kester Co. Net Cash Discount
July 21.
Cash $108,000 (debit)
Cost of Sales $64,800 (debit)
Sales Revenue $108,000 (credit)
Merchandise $64,800 (credit)
Cash Sale of Merchandise
July 22.
Account Receivable : Tabor Co $16,650 (debit)
Cost of Sales $10,000 (debit)
Sales Revenue $16,650 (credit)
Merchandise $10,000 (credit)
Sale of Merchandise on credit to Tabor Co
July 23.
Cash $91,200 (debit)
Cost of Sales $55,000 (debit)
Sales Revenue $91,200 (credit)
Merchandise $55,000 (credit)
Cash Sale of Merchandise
July 28.
Sales Revenue $7,150 (debit))
Merchandise $4,250 (debit)
Account Receivable : Parsley Co $7,150 (credit)
Cost of Sales $4,250 (credit)
Refund for Merchandise Returned by Parsley Co
July 31.
Service Fees $1,650 (debit)
Cash $1,650 (credit)
Service Fees Paid
Explanation:
See the journal entries and their narrations prepared above.
"16. An investment promises to pay $6,000 at the end of each year for the next five years and $4,000 at the end of each year for years 6 through 10. a. If you require a 12 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?"
Answer:
$33,387.70
Explanation:
A summary of the cash flows for this investment is :
Year 1 $6,000
Year 2 $6,000
Year 3 $6,000
Year 4 $6,000
Year 5 $6,000
Year 6 $4,000
Year 7 $4,000
Year 8 $4,000
Year 9 $4,000
Year 10 $4,000
So, clear these are uneven cash flows thus use your CFj function on your financial calculator to find the Net Present Value at the rate of 12% as below:
CFj $6,000
CFj $6,000
CFj $6,000
CFj $6,000
CFj $6,000
CFj $4,000
CFj $4,000
CFj $4,000
CFj $4,000
CFj $4,000
I/YR = 12 %
SHIFT NPV = $33,387.70
Thus, the maximum amount you would pay for this investment is $33,387.70.
Presented below are a number of balance sheet accounts of Deep Blue Something, Inc.
A. Debt Investments.B. Treasury Stock.C. Common Stock.D. Dividends Payable.E. Accumulated Depreciation—Equipment.F. Construction in Process.G. Petty Cash.H. Interest Payable.I. Deficit.J. Equity Investments (ownership stake of less than 20%).K. Income Taxes Payable.L. Unearned Subscriptions Revenue.M. Work in Process.N. Salaries and Wages Payable.Instructions:
For each of the accounts above, indicate the proper balance sheet classification. In the case of borderline items, indicate the additional information that would be required to determine the proper classification.
Answer:
Balance sheet accounts Proper balance sheet classification
(a)Debt Investments - Current asset
(b)Treasury Stock - Stockholders equity
(c)Common Stock - Stockholders equity
(d)Dividends Payable - Current Liability
(e)Accumulated Depreciation—Equipment - Property, Plant and Equipment & Fixed asset
(f)Construction in Process - Current asset
(g)Petty Cash. - Current asset
(h)Interest Payable - Current Liability
(i)Deficit - Stockholder's Equity
(j)Equity Investments (ownership stake of less than 20%). - Current asset
(k)Income Taxes Payable - Current Liability
(l)Unearned Subscriptions Revenue - Current Liability
(m)Work in Process - Current asset
(n)Salaries and Wages Payable - Current Liability
The balance sheet classification works primarily on the principle of the accounting equation which is stated as Assets = Liability + Equity.
Classification of Items in the Balance Sheet
All Assets go on the left side, while all liability and equity-related items go on the right side.
Assets (Left Side of the Balance Sheet)
Current Assets
Petty CashWork in ProcessDebt InvestmentsNon-Current Assets
Construction in ProcessLiabilities (Right side of the Balance Sheet)
Unearned Subscriptions RevenueDividends PayableInterests PayableDeficitsIncome Taxes PayableSalaries and Wages PayableEquity/Equity Related Items (Right side of the balance sheet under Liabilities)
Common StockContra Assets Items
These items are neither assets or liability. They are:
Borderline Item
Equity Investments (Onwerhsip stake of less than 20%).
This is a borderline item because where it is placed in the asset section is determined by how long Deep Blue Somthing Inc. intends to hold it. If the company intends to hold it for less than or equal to a year, it is classified as a current asset. If more than a year, it is classed as a Non-current Asset.
See the link below for more about Balance Sheets:
https://brainly.com/question/25225110
Much has been written about how to identify and interpret signs that indicate that a new organizational form is needed. Grinnell and Apple have identified five signs in addition to those previously described in Section 3.625:Management is satisfied with its technical skills, but projects are not meeting time, cost, and other project requirements.There is a high commitment to getting project work done, but great fluctuation in how well performance specifications are met.Highly talented specialists involved in the project feel exploited and misused.Particular technical groups or individuals constantly blame each other for failure to meet specifications or delivery dates.Projects are on time and to specification, but groups and individuals aren’t satisfied with the achievement. Grinnell and Apple state that there is a good chance that a matrix structure will eliminate or alleviate these problems. Do you agree or disagree? Does your answer depend on the type of project? Give examples or counterexamples to defend your answers.
Explanation:
I agree that the matrix structure will alleviate these problems encountered.
The matrix structure is a model characterized mainly by its flexibility. The organizational structure of the matrix structure is organized in work groups according to the project being carried out in the company, making the work functions more defined and dynamic, being able to change whenever there are new projects in view.
This structure helps companies to create greater autonomy in carrying out work, increasing coordination and satisfying specialization, which generates greater motivation in employees, increasing participation in the decision-making process, generating more innovation and productivity and the speed with which employees projects are finalized.
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Note: You must complete parts 1, 2, 3, 4 before completing part 5.
Part 5: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet using the following adjustment data.
Insurance expired during May is $275.
Supplies on hand on May 31 are $715.
Depreciation of office equipment for May is $330.
Accrued receptionist salary on May 31 is $325.
Rent expired during May is $1,600.
Unearned fees on May 31 are $3,210.
If an amount box does not require an entry, leave it blank or enter "0".
Kelly Consulting
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended May 31, 20Y8
Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash
Accounts Receivable
Supplies
Prepaid Rent
Prepaid Insurance
Office Equipment
Accum. Depreciation
Accounts Payable
Salaries Payable
Unearned Fees
Common Stock
Retained Earnings
Dividends
Fees Earned
Salary Expense
Rent Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Miscellaneous Expense
Net income
Part of question attached
Answer and Explanation:
Please find answer and explanation attached
In a Las Vegas casino, an employee discovered a flaw in the accounting system. The accounts payable clerk discovered that he was able to change the names of vendors in the computer system to his name. As a result, the employee could create false invoices and then cut a check for the false invoice. The name on the check would be changed to the name of the employee. After the check was printed, the name in the system could then be changed back to the appropriate vendor. The check register would show only the name of the vendor. The fraudulent employee had authorization to sign checks under $1,000. By writing small checks, the employee was able to defraud the company of $10,000. This fraud was caught by accident then the employee of another department was looking through the vendor list on her computer after the fraudulent employee had changed the vendor name to his name. A few entries later, the vendor name changed again. She wondered how this could occur and asked her supervisor. Soon after, the fraudulent employee was caught.
1. What kind of fraud is being committed?2. What percent of frauds are of this type?3. How could this fraud have been prevented?
Answer:
- This type of fraud is check tampering
- It amounts to 20.1% of fraud cases in small businesses, and 8.4% of fraud in large businesses
- This type of fraud can be prevented by rotating employees that handle check issuance to vendors, review of budget versus actual expenditure, monitoring of audit trail to see if beneficiary was changed, daily statement download for reconciliation, and restriction of functions for example a employee that issues checks should not also reconcile bank statement.
Explanation:
Check tampering is a very common fraud that involves changing the beneficiary of a valid check so that funds can be diverted.
In the given scenario the accounts payable clerk was able to change checks to his name in order to divert $10,000. This was only discovered by chance when an employee noticed the change in name.
Various internal control measures can be taken to prevent this and they are listed above
Brews 4 U is a local chain of coffee shops. Managers are interested in the costs of the stores and believe that the costs can be explained in large part by the number of customers patronizing the stores. Monthly data regarding customer visits and costs for the preceding year for one of the stores have been entered into the regression analysis.
Average monthly customer-visits 1,462
Average monthly total costs $4,629
Regression results: Intercept $1,496
b coefficient $2.08
R2 0.86814
Required:
a. In a regression equation expressed as y= a + bx, how is the letter b best described?
b. How is the letter y in the regression equation best described?
c. How is the letter x in the regression equation best described?
d. Based on the data derived from the regression analysis, what are the estimated costs for 370 customer-visits in a month?
e. What is the percent of the total variance that can be explained by the regression equation?
Answer:
Explanation:
a. In a regression equation expressed as y= a + bx, how is the letter b best described?
Here, b is the slope and best described as the estimate of the cost when there's a visit of an additional customer.
b. How is the letter y in the regression equation best described?
The letter y is the observed store cost for that particular month.
c. How is the letter x in the regression equation best described?
The letter x is the observed customer visit for that particular month.
d. Based on the data derived from the regression analysis, what are the estimated costs for 370 customer-visits in a month?
The estimated cost for 370 customer visit will be:
Y = a + bx
where,
a =$1496
b = $2.08
x = 370 customer visit
Y = $1496 + ($2.08 × 370 customer visit)
= $1496 + $769.6
= $2265.6
e. What is the percent of the total variance that can be explained by the regression equation?
The percent of total variance which the regression equation explain will be:
R2 = 0.86814 or 86.814%
Suppose that in a competitive market without government regulations, the equilibrium price of a hamburger is $7 each.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
Statement Price Control Binding or Not
Due to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so.
The government prohibits fast-food restaurants from selling hamburgers for more that $5 each.
Answer:
Price Ceiling regulations prohibit the price of a good or service from being higher than a set price known as the Price Ceiling.
Price Floor regulations prohibit the price of a good or service from being lower than a set price known as the Price floor.
When either Price Ceiling or Floor is said to be nonbinding, it means that it does not affect the market/ equilibrium price of the good or service.
Binding Ceilings or Floors affect the market/ equilibrium price.
Due to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so. BINDING PRICE CEILING.
The Fast-food restaurants cannot pay above a certain amount which makes this a Price Ceiling. It is binding because the Market wants to pay higher wages to hire more people but cannot therefore the price ceiling is having an effect on the equilibrium price.
The government prohibits fast-food restaurants from selling hamburgers for more that $5 each. BINDING PRICE CEILING.
Fast-food restaurants are not allowed to sell above the set price of $5 which makes this a price ceiling. It is Binding because the equilibrium price is $7 which means that fast-food restaurants are forced to sell below the equilibrium price therefore this Price ceiling affects the equilibrium price.
Answer:
See Below..
Explanation:
1. Due to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so.
Price Ceiling and Binding
In the labor market, minimum wage laws are an example of a price floor while a cap on wages is an example of a price ceiling. Moreover, the impact of the minimum wage laws depends on the skill and experience of the worker. In this case, new regulations restrict fast-food restaurants from increasing wages and, thus, attracting more workers. This binding price ceiling causes a shortage of workers in this labor market.
2. The government prohibits fast-food restaurants from selling hamburgers for more that $5 each.
Price Floor and Binding
A price ceiling is a legal maximum on the price at which a good can be sold. Therefore, prohibiting fast-food restaurants from selling hamburgers for more than a particular price is an example of a price ceiling. A binding price ceiling is a price ceiling that is set below the equilibrium price. Because the equilibrium price is $7 each for hamburgers, a legal maximum price of $5 is a binding price ceiling. A binding price ceiling will ultimately cause a shortage, while a non-binding price ceiling has no effect on the equilibrium price and quantity.
Hope this helped you!
Marigold Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $192000 loss in the year of disposal. The loss on disposal of the segment was $99000. If the tax rate is 30%, and income before income taxes was $1630000.
a. the income tax expense on the income before discontinued operations is $378300.
b. the income from continuing operations is $1141000.
c. net income is $1339000.
d. the losses from discontinued operations are reported net of income taxes at $291000.
Answer:
The correct option is b. The income from continuing operations is $1141000.
Explanation:
Based on the information given we were told that the tax rate is 30% while the income before income taxes was $1,630,000 which means that the The income from continuing operations is $1141000 calculated as:
Income from continuing operations=[$1,630,000-(30%*$1,630,000)]
Income from continuing operations=$1,630,000-$489,000
Income from continuing operations=$1,141,000
true or false ,The first step in composing a message is to identify its purpose
A comparative balance sheet for Sarasota Corporation is presented as follows.
December 31
Assets 2020 2019
Cash $ 72,680 $ 22,000
Accounts receivable 84,360 68,680
Inventory 182,360 191,680
Land 73,360 112,680
Equipment 262,360 202,680
Accumulated Depreciation-Equipment
(71,360 ) (44,680 )
Total $603,760 $553,040
Liabilities and Stockholders' Equity
Accounts payable $ 36,360 $ 49,680
Bonds payable 150,000 200,000
Common stock ($1 par) 214,000 164,000
Retained earnings 203,400 139,360
Total $603,760 $553,040
Additional information:
1. Net income for 2020 was $129,720. No gains or losses were recorded in 2020.
2. Cash dividends of $65,680 were declared and paid.
3. Bonds payable amounting to $50,000 were retired through issuance of common stock.
Prepare a statement of cash flows for 2020 for Sarasota Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Determine Sarasota Corporation’s current cash debt coverage, cash debt coverage, and free cash flow.
Answer:
Sarasota Corporation
1. Statement of Cash Flows for the year ended December 31, 2020:
Operating Activities:
Net Income $129,720
Non-cash adjustment:
Depreciation 26,680
Cash from operating $ 156,400
Changes in working capital:
Accounts Receivable (15,680)
Inventory 9,320
Accounts Payable (13,320)
Net cash from operating activities $136,720
Investing Activities:
Land 39,320
Equipment (59,680)
Net cash from investing activities $(20,360)
Financing Activities:
Cash dividends $(65,680)
Net cash inflows $50,680
2. Sarasota Corporation's:
a) Current Cash Debt Coverage = Cash from operating activities/Current liabilities
= $136,720/$36,360
= 3.76
b) Cash Debt Coverage = Cash from operating activities/Total liabilities
= $136,720/$186,360
= 0.73
c) Free Cash Flow = Cash from operating activities minus Capital expenditure
= $136,720 - 59,680
= $77,040
Explanation:
a) Data and Calculations:
Sarasota Corporation
Comparative Balance Sheets
As of December 31 2020 and 2019:
Assets 2020 2019 Increase Decrease
Cash $ 72,680 $ 22,000 $50,680
Accounts receivable 84,360 68,680 15,680
Inventory 182,360 191,680 $9,320
Land 73,360 112,680 39,320
Equipment 262,360 202,680 59,680
Accumulated Depreciation-Equipment
(71,360) (44,680) 26,680
Total $603,760 $553,040
Liabilities and Stockholders' Equity
Accounts payable $ 36,360 $ 49,680 13,320
Bonds payable 150,000 200,000 50,000
Common stock ($1 par) 214,000 164,000 50,000
Retained earnings 203,400 139,360
Total $603,760 $553,040
b) The decrease in bonds is not a cash flow. The increase in Common Stock is not a cash flow. The two are exchanges. In calculating the free cash flow, the cash proceeds from sale of land were not taken into consideration because the sale was a one-off transaction and not part of the operating activities of Sarasota Corporation.
Reporting an Income Statement, Reporting a Statement of Retained Earnings, Reporting a Balance Sheet and Recording Closing Journal Entries [LO 4-4, LO 4-5]
[The following information applies to the questions displayed below.]
The Sky Blue Corporation has the following adjusted trial balance at December 31.
Debit Credit
Cash $1,230
Accounts Receivable 2,000
Prepaid Insurance 2,300
Notes Receivable (long-term) 3,000
Equipment 12,000
Accumulated Depreciation $ 2,600
Accounts Payable 5,420
Salaries and Wages Payable 1,000
Income Taxes Payable 2,900
Deferred Revenue 600
Common Stock 2,400
Retained Earnings 1,000
Dividends 300
Sales Revenue 42,030
Rent Revenue 300
Salaries and Wages Expense 21,600
Depreciation Expense 1,300
Utilities Expense 4,220
Insurance Expense 1,400
Rent Expense 6,000
Income Tax Expense 2,900
Total $58,250 $ 58,250
M4-17
Prepare closing journal entries on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer and Explanation:
The Journal entry is shown below:-
1. Sales Revenue Dr, $42,030
Rent Revenue $300
To Salaries and Wages Expense $21,600
To Depreciation Expense $1,300
To Utilities Expense $4,220
To Insurance Expense $1,400
To Rent Expense $6,000
To Income Tax Expense $2,900
To Retained Earnings $4,910
(Being closing of revenues and expenses is recorded)
2. Retained Earnings Dr, $300
To Dividends $300
(Being closing of dividend is recorded)
Eaton Tires manufactures tires for dune buggies and has two different products, nubby tires and smooth tires. The company produces 5,000 nubby tires and 10,000 smooth tires each year and incurs $172,000 of overhead costs. The following information is available:
Activity Total Cost Cost Driver
Materials handling $60,000 Number of requisitions
Machine setups 55,000 Number of setups
Quality inspections 57,000 Number of inspections
For the nubby tires, the company has 400 requisitions, 200 setups, and 200 inspections. The smooth tires require 600 requisitions, 300 setups, and 400 inspections.
Determine the overhead rate for each activity.
Answer:
Materials handling= $60 per requisition
Machine setups= $110 per setup
Quality inspections= $95 per inspection
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Materials handling= 60,000/1,000= $60 per requisition
Machine setups= 55,000/500= $110 per setup
Quality inspections= 57,000/600= $95 per inspection
Suppose that per-unit costs for Alpha-Zeta Co. are $25 when they are producing 50,000 units. Now suppose that the firm increases production to 50,100 units and total costs are $2,000,000 at that level of production. Question: What is occurring as the firm increases production from 50,000 to 50,100 units?
Answer:
Diseconomies of scale due to the fact that per unit cost increased from $25 to $39.92
Explanation:
Economies is scale is when a larger production is a product leads to reduced cost of production.
For example if production of 1,000 units of a good costs $20 per unit, but production of 1,500 units goes for $17. The cost of production per unit reduces. So there is economies of scale.
In the given scenario production of 5,000 units is at $25 per unit.
While at 5,100 units it is (2,000,000 ÷ 50,100) = $39.92
So this is a diseconomies of scale.
what are you being for halloween
Answer:
maybe a fox
Explanation:
One major advantage of pure competition compared to a monopoly is that:
A. More capital is available for research and development
B.businesses have more incentives to keep prices low
C. Economies of scale become less important
D. Consumers have to make fewer economic choices
Answer: businesses have more incentives to keep prices low.
Explanation: just took the test
Answer:businesses have more incentives to keep prices low.
Explanation:
A commodity’s demand causes its price to go up.
True
False
Answer:
the answer is false
Explanation:
You would expect a bond of the U.S. government and a bond of an Eastern European government to pay different interest rates because of differences in the bonds_____.
You would expect a bond that pays the principal in year 2040 and a bond that pays the principal in year 2020 to pay_____interest rates because of differences in the bonds.
You would expect a bond from a software company you run in your garage and a bond from Coca-Cola to pay different interest rates because of differences in the bonds_____.
You would expect a bond issued by New York State to pay_____interest rate as compared to a bond issued by the federal government.
Answer:
You would expect a bond of the U.S. government and a bond of an Eastern European government to pay different interest rates because of differences in the bonds Credit Risk.
The United States has the safest securities in the World and so pay different rates from other countries to reflect this especially with an Eastern European Government that is not as trusted.
You would expect a bond that pays the principal in year 2040 and a bond that pays the principal in year 2020 to pay higher interest rates because of differences in the bonds.
Bond with longer maturity terms are riskier as they will be exposed to more inflation and interest rate risk.
You would expect a bond from a software company you run in your garage and a bond from Coca-Cola to pay different interest rates because of differences in the bonds Credit Risk.
Coca-Cola is a big company with many assets that back up any leverage it has and so they will have a lower risk than a person with a small business in a garage that might be unable to keep up with payments and default.
You would expect a bond issued by New York State to pay higher interest rate as compared to a bond issued by the federal government.
The Federal Government will be less riskier than New York when it comes to repaying debt because if push comes to shove they can simply print more dollars. They also have higher revenue streams than New York State which means that New York is riskier and will therefore pay a higher interest rate to compensate.
The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the price the investor receives when the stock is sold. The final price includes the original price paid plus an expected capital gain. The actions of the marginal investor determine the equilibrium stock price. Market equilibrium occurs when the stock's price is -Select-less thanequal togreater thanCorrect 1 of Item 1 its intrinsic value. If the stock market is reasonably efficient, differences between the stock price and intrinsic value should not be very large and they should not persist for very long. When investing in common stocks, an investor's goal is to purchase stocks that are undervalued (the price is -Select-abovebelowequivalent toCorrect 2 of Item 1 the stock's intrinsic value) and avoid stocks that are overvalued.
The value of a stock today can be calculated as the present value of -Select-a finitean infiniteCorrect 3 of Item 1 stream of dividends:
This is the generalized stock valuation model. We will now look at 3 different situations where we can adapt this generalized model to each of these situations to determine a stock's intrinsic value:
1. Constant Growth Stocks;
2. Zero Growth Stocks;
3. Nonconstant Growth Stocks.
Constant Growth Stocks:
For many companies it is reasonable to predict that dividends will grow at a constant rate, so we can rewrite the generalized model as follows:
This is known as the constant growth model or Gordon model, named after Myron J. Gordon who developed and popularized it. There are several conditions that must exist before this equation can be used. First, the required rate of return, rs, must be greater than the long-run growth rate, g. Second, the constant growth model is not appropriate unless a company's growth rate is expected to remain constant in the future. This condition almost never holds for -Select-maturestart-upCorrect 4 of Item 1 firms, but it does exist for many -Select-maturestart-upCorrect 5 of Item 1 companies.
Which of the following assumptions would cause the constant growth stock valuation model to be invalid?
The growth rate is zero.
The growth rate is negative.
The required rate of return is greater than the growth rate.
The required rate of return is more than 50%.
None of the above assumptions would invalidate the model.
-Select-Statement aStatement bStatement cStatement dStatement eCorrect 6 of Item 1
Quantitative Problem 1: Hubbard Industries just paid a common dividend, D0, of $1.60. It expects to grow at a constant rate of 2% per year. If investors require a 10% return on equity, what is the current price of Hubbard's common stock? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share
Zero Growth Stocks:
The constant growth model is sufficiently general to handle the case of a zero growth stock, where the dividend is expected to remain constant over time. In this situation, the equation is:
Note that this is the same equation developed in Chapter 5 to value a perpetuity, and it is the same equation used to value a perpetual preferred stock that entitles its owners to regular, fixed dividend payments in perpetuity. The valuation equation is simply the current dividend divided by the required rate of return.
Quantitative Problem 2: Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $2.00 at the end of each year. If investors require an 10% return on the preferred stock, what is the price of the firm's perpetual preferred stock? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share
Nonconstant Growth Stocks:
For many companies, it is not appropriate to assume that dividends will grow at a constant rate. Most firms go through life cycles where they experience different growth rates during different parts of the cycle. For valuing these firms, the generalized valuation and the constant growth equations are combined to arrive at the nonconstant growth valuation equation:
Basically, this equation calculates the present value of dividends received during the nonconstant growth period and the present value of the stock's horizon value, which is the value at the horizon date of all dividends expected thereafter.
Quantitative Problem 3: Assume today is December 31, 2013. Imagine Works Inc. just paid a dividend of $1.15 per share at the end of 2013. The dividend is expected to grow at 15% per year for 3 years, after which time it is expected to grow at a constant rate of 6% annually. The company's cost of equity (rs) is 9.5%. Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2013)? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share
Full question attached
Answer and Explanation:
Find attached
Winona and Hubert need to decide which one of them will take time off from work to complete the rather urgent task of shearing their llamas. Winona is pretty good with a pair of shears; she can shear the llamas in 1 hour. Hubert is somewhat slow; it takes him 9 hours to shear the llamas. Winona earns $200 per hour as a psychiatrist, while Hubert earns $25 per hour as a cobbler. Keeping in mind that either Winona or Hubert must take time off from work to shear the llamas, who has the lowest opportunity cost of completing the task?
a. Jacques
b. Kyoko and Jacques face equal opportunity costs
c. Kyoko
Selected accounts from the ledger of McDaniel Corporation appear below. Indicate the nature of each account. Type Of Account
1. Supplies select a type of account
2. Notes Payable select a type of account
3. Service Revenue select a type of account
4. Dividends select a type of account
5. Accounts Payable select a type of account
6. Salaries and Wages Expense select a type of account
7. Common Stock select a type of account
8. Accounts Receivable select a type of account
9. Equipment select a type of account
10. Notes Receivable select a type of account
Answer:
1. Supplies - ASSETS
Supplies are assets and are debited when they increase.
2. Notes Payable - LIABILITIES.
Current Liabilities owed to creditors.
3. Service Revenue. REVENUE
Revenue that will go to the income statement.
4. Dividends. EQUITY.
These are payments to Shareholders and so are Equity.
5. Accounts Payable. LIABILITY.
These are current liabilities and increase by credit.
6. Salaries and Wages Expense. EXPENSE.
These are expenses that will go to the Income Statement
7. Common Stock. EQUITY.
Common Stock is equity as it represents ownership in the company.
8. Accounts Receivable. ASSET.
Accounts Receivables are current assets and are debited when they increase.
9. Equipment. ASSET.
Equipment are fixed assets and are debited when they increase.
10. Notes Receivable. ASSETS.
Like Receivables these are current assets and are debited when they increase.
For Sheffield Corp., sales is $1660000 (8300 units), fixed expenses are $480000, and the contribution margin per unit is $80. What is the margin of safety in dollars
Answer:
$460,000
Explanation:
The computation of the margin of safety in dollars is shown below:-
Break even sales = fixed cost ÷ contribution per unit
= $480,000 ÷ $80
= 6,000 units
The Margin of safety in dollars = Total sales - Break even sales
= 8,300 - 6,000
= 2,300
sale price = $1660000 ÷ 8,300
= $200 per unit
margin of safety in dollars = 2,300 × $200
= $460,000
During job interviews, potential employers often ask candidates to describe a time where they have demonstrated their initiative and/or results driven skills. This week, you’ll have a chance to practice.
In paragraph 1, describe a time at work, home, or school where there was a problem and you took the initiative to solve that problem and to seek results on your own.
In paragraph 2, explain how the process went and describe the solution that you developed.
Answer:
During a pandemic everyone and everything is crazy and it hasn't gone very for me at work or at home. I guess that's why they say it's best for you stay home and quaretine for days because of a test that came back positive.
Explanation:
Pix Company has the following production data for March: no beginning work in process, units started and completed 30,500, and ending work in process 5,200 units that are 100% complete for materials and 40% complete for conversion costs. Pix uses the FIFO method to compute equivalent units. If unit materials cost is $4 and unit conversion cost is $12. The total costs to be assigned are $533,760, prepare the cost section of the production cost report for Pix Company using the FIFO approach.
Answer:
Summary of costs to be accounted for
Costs to be accounted for: Materials Conversion Total
Beginning WIP 0 0 0
Costs incurred in the period $142,800 $390,960 $533,760
Total costs to be accounted for $142,800 $390,960 $533,760
Calculation of cost per equivalent unit
Materials Conversion Total
Total costs to be accounted for $142,800 $390,960 $533,760
Total equivalent units 35,700 32,580
Cost per equivalent unit $4 $12 $16
Cost allocation
Materials Conversion Total
Units finished and transferred $122,000 $366,000 $488,000
Ending WIP $20,800 $24,960 $45,760
Total costs to be accounted for $142,800 $390,960 $533,760
Explanation:
beginning WIP 0 units
units started and completed 30,500
ending WIP 5,200
100% complete for materials
40% complete for conversion costs (2,080 EU)
total EU:
materials 35,700
conversion 32,580
total costs:
materials 35,700 x $4 = $142,800
conversion 32,580 x $12 = $390,960
total = $533,760
True/ false. Initiative means acting only when asked to.
Categories of expenditures
Eric and Ginny Gaffney live in Swarthmore, PA. Ginny's father, Kenji, lives in Sweden.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.
Transaction C I G X M
Eric's employer upgrades all of its computer systems using U.S.-made parts.
Ginny gets a new refrigerator made in the United States.
Ginny's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
Eric buys a bottle of Italian wine.
Answer:
Categories of expenditures
1. I
Eric's employer upgrades all of its computer systems using U.S.-made parts.
2. C
Ginny gets a new refrigerator made in the United States.
3. X
Ginny's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
4. G
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
5. M
Eric buys a bottle of Italian wine.
Explanation:
The US Gross Domestic Product (GDP) can be measured using the expenditure approach: Y = C + I + G + (X – M). This expenditure approach calculates GDP by evaluating the sum of all final goods and services purchased in the US economy. The components of the US GDP identified as “Y” in equation form include Consumption (C), Investment (I), Government Spending (G), and Net Exports (X – M) with X as exports and M as imports.
Southwest Pediatrics has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $116,000; Allowance for Uncollectible Accounts = $1,900 (debit). On December 31, 2021, Southwest estimates uncollectible accounts to be 15% of accounts receivable.
Required:
1. Record the adjusting entry for uncollectible accounts on December 31, 2021.
2. Determine the amount at which bad debt expense is reported in the income statement and the allowance for uncollectible accounts is reported in the balance sheet.
3. Calculate the net realizable value of accounts receivable.
Answer:
Bad Debt expense = Allowance for uncollectible debit + (Estimated uncollectibles)
= 1,900 + (15% * 116,000)
= $19,300
1.
Dec. 31 DR Bad debt expenses $19,300
CR Allowance for Uncollectable $19,300
2. Balance Sheet;
= 116,000 * 15%
= $17,400
Income Statement;
= $19,300
3. Net realizable value
= Accounts receivable - Estimated uncollectibles
= 116,000 - 17,400
= $98,600
1. As a young child, Karina had a passion for animals and environmental issues. After she graduated from college, Karina landed a job in an organization whose mission is to create public awareness about endangered animals and other environmental issues. Karina’s employer depends largely on grants and donations to fund business activities.
Answer: Non-profit corporation
Explanation:
The question seeks to find out what kind of company Karina works for. The answer would be a Non-profit Corporation. Non-profit Organizations are usually involved in humanitarian and altruistic pursuits such animal rights and environmental protection.
Non-profit usually rely on grants and donations in order to carry out their operations and they get usually these from wealthy individuals and companies as part of their Corporate Social Responsibility.
for countries the term specialization refers to
Answer:
we need more info
Explanation:
there's only those words nothing else
Which staff member usually does the work of both a front desk clerk and an accounting clerk?
A. Controller
B. Credit manager
C. Accounts receivable clerk
D. Night auditor
What do successful entrepreneurs have in common?
Answer:
market trends change constantly, funding fall through, business partners flake, and ideas may go wrong
hope this help!