Answer:
Something useful or valuable.
Explanation:
Shandra Corporation (a U.S.-based company) expects to order goods from a foreign supplier at a price of 131,000 pounds, with delivery and payment to be made on April 20. On February 20, when the spot rate is $1.37 per pound, Shandra purchases a two-month call option on 131,000 pounds and designates this option as a cash flow hedge of a forecasted foreign currency transaction. The time value of the option is excluded in assessing hedge effectiveness; the change in time value is recognized in net income over the life of the option. The option has a strike price of $1.37 per pound and costs $1,310. The goods are received and paid for on April 20. Shandra sells the imported goods in the local market by May 31. The spot rate for pounds is $1.42 on April 20. What amount will Shandra Corporation report as foreign exchange gain or loss in net income for the quarter ended June 30
Answer:
Shandra Corporation
The amount which Shandra Corporation will report as foreign exchange gain in net income for the quarter ended June 30 is:
$5,240
Explanation:
Price of goods = 131,000 pounds
Delivery and payment date = April 20
On February 20, the spot rate for call option on 131,000 pounds = $1.37
Cost of the option = $1,310
The spot rate on April 20 = $1.42
The foreign exchange gain or loss to be reported in net income for the quarter ended June 30 = $0.05 ($1.42 - $1.37
Total gain = ($0.05 * 131,000) - $1,310
= $6,550 - $1,310
= $5,240
b) With this call option, which gives Shandra the right to buy the underlying asset, Shandra hedges his contract to purchase goods from a foreign supplier, and therefore, profits when the spot rate increases from $1.37 on February 20 to $1.42 on April 20. The profit made is reduced by the cost of the call option.
A purely domestic firm that sources its products, sells its products, and raises its funds domestically. . Which of the following is not correct?
a. can face stiff competition from a multinational corporation that can source its products in one country, sell them in several countries, and raise its funds in a third country.
b. cannot be more competitive than a MNC on its home turf even if it has superior knowledge of the local market.
c. can still face exchange rate risk, just like a MNC.
d. can still face country risk, just like a MNC.
Answer:
b. cannot be more competitive than a MNC on its home turf even if it has superior knowledge of the local market.
Explanation:
In the given scenario a company that sources its products, sells its products, and raises its funds domestically will most likely have more competitive advantage than a multinational corporation.
This is due to the fact that it has superior knowledge of the local market.
MNCs will have a hard time adapting to the local market to compete effectively with the local companies.
However local businesses and MNCs will face common challenges like country risk and exchange rate risk.
Because MNCs have ability to source its products in one country, sell them in several countries, and raise its funds in a third country they will provide a stiff competition
On January 1, year 8, Derek Co.’s defined benefit pension plan had plan assets with a fair value of $750,000, and a projected benefit obligation of $875,000. In addition: Actual and expected return on plan assets – 7% Interest cost – 9% Service costs - $24,000 Unamortized prior service cost - $120,000 Employer contributions to the plan - $45,000 Distributions to employees from the plan - $60,000 Unamortized prior service cost is being amortized over the expected remaining service lives of covered employees, which consists of a total of 9 employees: 2 employees are each expected to have 9 years remaining 3 employees are each expected to have 6 years remaining 4 employees are each expected to have 1 year remaining How much amortization of prior service cost will be included in Derek Co.’s pension expense for year 8?
Answer: $27,000
Explanation:
Amortization of prior cost = (No. of employees / Total number of years left) * Unamortized prior service cost
Total number of years left:
2 employees are each expected to have 9 years remaining = 2 * 9
= 18 years
3 employees are each expected to have 6 years remaining = 3 * 6
= 18 years
4 employees are each expected to have 1 year remaining = 4 * 1
= 4 years
Total number of years = 18 + 18 + 4
= 40 years
Amortization of prior cost = (9 / 40) * 120,000
= $27,000
Develop a simple work breakdown structure consisting of at least 25 tasks. This can be hand sketched, photographed, and uploaded here. Consider grouping your identified tasks into the following buckets of work:
a. Obtaining materials and job-site setup/preparation.
b. Removal of barriers to access the house (limbs/overgrowth/nests, etc.).
c. Surface preparation.
d. Painting (primer two coats) of siding and trim.
e. Clean-up.
Answer:
a. Material procured for the construction of theme park
b. The area was cleaned and barriers were removed for the machinery to reach the site.
c. The bulldozer was run over the site and all the broken walls were demolished
d. The construction work started and paint was done.
e. The machinery was removed after the work done.
Explanation:
The site preparation is an important task which is done before any construction work is started. The area is cleaned so that the machinery can reach the site and stay at the work place. The machinery then demolished and smoothens the site area so that the new construction work can be done with ease without any barrier.
A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond currently sells at a yield to maturity of 7% and has a par value of $1,000. What is its yield to call
Answer:
6.74%
Explanation:
The computation of the yield to call is as followS;
But before that the present value is
Given that
PMT = $1,000 × 8% ÷ 2 = $40
NPER = 30 × 2 = 60
RATE = 7% ÷ 2 = 3.50
FV = $1,000
The formula is shown below:
= -PV(RATE, NPER, PMT, FV,TYPE)
After applying the above formula, the present value is $1,124.72
Now the yield to call is
Given that
PMT = $1,000 × 8% ÷ 2 = $40
NPER = 5 × 2 = 10
PV = $1,124.72
FV = $1,100
The formula is given below:
= RATE(NPER,PMT,-PV,FV,TYPE)
After applying the above formula, the yield to call is
= 3.37% × 2
= 6.74%
Using the income statement for Times Mirror and Glass Co., compute the following ratios:
TIMES MIRROR AND GLASS COMPANY
Sales $270,000
Cost of goods sold 130,000
Gross profit $140,000
Selling and administrative expense 43,200
Lease expense 11,700
Operating profit* $85,100
Interest expense 9,300
Earnings before taxes $75,800
Taxes (30%) 30,320
Earnings after taxes $45,480
*Equals income before interest and taxes.
Required:
a. Compute the profit margin ratio.
b. Compute the total asset turnover ratio.
c. Compute the return on assets (investment).
Answer:
a. 9.15 times
b. 4.61 times
c. 31.52%
d. 1.08 times
e. 20.88 %
Explanation:
Note : I have attached the full question as image below.
Interest Coverage = Earnings Before Interest and tax ÷ Interest expense
= $85,100 ÷ $9,300
= 9.15 times
Fixed Charge Coverage = EBIT + Lease Payments ÷ Interest Payments + Lease Payments
= $85,100 + $11,700 ÷ $9,300 + $11,700
= 4.61 times
Profit margin = Operating Profit / Sales x 100
= $85,100 / $270,000 x 100
= 31.52%
Total asset turnover = Sales ÷ Total Assets
= $270,000 ÷ $249,000
= 1.08 times
Return on assets (investment) = Earning Before Interest after Tax / Total Assets x 100
= ($45,480 + $9,300 x 70%) / $249,000 x 100
= 20.88 %
Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $345,675 for the year, and machine usage is estimated at 125,700 hours. For the year, $372,125 of overhead costs are incurred and 131,500 hours are used. (a) Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 1.25.) Manufacturing overhead rate $enter a dollar amount rounded to 2 decimal places per machine hour
Answer:
Predetermined manufacturing overhead rate= $2.75 per machine hour
Explanation:
Giving the following information:
Overhead costs are estimated to total $345,675 for the year, and machine usage is estimated at 125,700 hours.
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
Predetermined manufacturing overhead rate= 345,675/125,700
Predetermined manufacturing overhead rate= $2.75 per machine hour
An accounting professor is considering opening his own consulting firm. To do so, she will have to quit her current job, that pays $125,000 a year, and take over a building that she owns and currently rents to her friend for $15,000 a year. Additionally, she will have to withdraw $50,000 from her savings, that pays 5 percent per year. Her expenses at the firm have been estimated as follows: $80,000 for employee salaries, $6,000 for insurance, $5,000 for utilities, and $9,000 for supplies. She anticipates annual revenues of $250,000. Determine:
Answer:
The answer is "$100,000"
Explanation:
Please find the complete question in the attached file.
Given value:
[tex]\text{Employees salary}= \$ 80,000\\\\\text{Insurance}= \$ 6,000\\\\\text{Utility cost}=\$ 5,000\\\\\text{Supplies}= \$ 9,000[/tex]
[tex]\text{Annual Explicit costs}= ?[/tex]
Formula:
[tex]\text{Annual Explicit costs}= \bold{\text{Employees salary}+ \text{Insurance}+ \text{Utility cost}+ \text{Supplies}}[/tex]
[tex]= \$ 80,000 + \$ 6,000 + \$ 5,000 + \$ 9,000\\\\= \$ 80,000 + \$ 20,000\\\\= \$ 100,000[/tex]
A company that utilizes carbon fiber 3-D printing wants to have money available two years from now to add new equipment. The company currently has $650,000 in a capital account and it plans to deposit $200,000 now and another $200,000 one year from now. The total amount available in two years, provided it returns a compounded rate of 15% per year, is closest to
Answer:
Total amount available in two years is $1,354,125.
Explanation:
The total amount available in two years can be calculated as follows:
Total amount in the deposit now = Current deposit + Amount planned to be deposited = $650,000 + $200,000 = $850,000
Future value of the total amount the deposit now = Total amount in the deposit now * (1 + Annual interest rate)^Number of years the deposit used = $850,000 + (1 + 15%)^2 = $1,124,125
Future value of next year's deposit = Next year's deposit * (1 + Annual interest rate)^Number of years the deposit used = $200,000 * (1 + 15%)^1 = $230,000
Total amount available in two years = Future value of the total amount the deposit now + Future value of next year's deposit = $1,124,125 + $230,000 = $1,354,125
In 2020, Ryan files as head of household and has taxable income of $122,500. None of his taxable income consists of capital gains or qualified dividends. Using the tax rate schedule, his tax liability rounded to the nearest dollar, totals $______.
Answer: 22,038, 22,037, or 22,036
Explanation:
Taxable liability of Ryan is $22,154
Given:
Household and taxable income = $122,500
Find:
Taxable liability
Computation:
Household and taxable income of Ryan is $122,500
So,
Ryan falls [$84,201 - $160,700] tax range
So,
Taxable liability = 12,962 + (122,500 - 84200) × 24%
Taxable liability = 12,962 + (122,500 - 84200) × 0.24
Taxable liability = 12,962 + (38,300) × 0.24
Taxable liability = 12,962 + 9,192
Taxable liability = $22,154
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Ashley Corporation uses a process-cost accounting system. The company adds direct materials and direct labor at the start of its production process; overhead cost is incurred evenly throughout manufacturing. The firm has no beginning work-in-process inventory; its ending work in process is 40% complete. Which of the following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory?
a. Materials, 100%; labor, 100%; overhead cost, 40%.
b. Materials, 100%; labor, 100%; overhead cost, 100%.
c. Materials, 100%; labor 40%; overhead cost, 40%.
d. Materials, 40%; labor, 40%; overhead cost, 60%.
e. Materials, 40%; labor, 40%; overhead cost, 100%.
Answer:
a. Materials, 100%; labor, 100%; overhead cost, 40%
Explanation:
Since Materials and Labor are added at the start of its production process, they will always be 100 % complete at the the end of the period as this mark is already passed. Overheads will be complete up to the extent of the work done in work in process that is 40%.
Brody Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory for January consisted of 1,030 units that were 75% completed. 10,000 units were started into the process during January. On January 31, the inventory consisted of 400 units that were 40% completed. What would be the equivalent units for conversion cost using the weighted average method
Answer:
Equivalent units for conversion cost is 10,790 units
Explanation:
Completed and Transferred (1,030 + 10,000 - 400) x 100 % = 10,630
Ending Work In Process 400 x 40% = 160
Total equivalent units for conversion cost = 10,790
Leo is a recruitment executive for a large company. He has identified new labor resource requirements in both the marketing and production departments. What should be his first step in recruiting candidates for the positions?
A.
conduct background checks of candidates
B.
make job offers
C.
arrange interviews
D.
conduct reference checks
E.
place job ads on job sites
Answer:
E. place job ads on job sites
Explanation:
The first step for Leo is to place the Job advertisement on the various job sites. Advertising is making the public aware of the vacancy. The purpose of going public is to attract as many qualified candidates as possible. Having a large pool of candidates increases the possibility of getting the right person for the job.
Which of the following statements is INCORRECT with regard to trends that organizational behavior is addressing?
a. The workforce is getting younger and thus their integration into most organizations will be seamless.
b. Organizations will likely become "shamrock-shaped" in the future.
c. The world is "flattening" so information access is increasing.
d. Outsourcing is becoming a way of life in many organizations.
Answer:
a. The workforce is getting younger and thus their integration into most organizations will be seamless.
Explanation:
An organizational behavior can be defined as the study of people's opinions, feelings, actions and how people perceive an organization
The following statements are correct and true with regard to trends that organizational behavior is addressing;
I. Organizations will likely become "shamrock-shaped" in the future.
II. The world is "flattening" so information access is increasing.
III. Outsourcing is becoming a way of life in many organizations.
However, opining that the workforce is getting younger and thus their integration into most organizations will be seamless is completely false because the workforce would be growing older as their years of active service increases i.e the workforce is getting older.
For each of the following activities, indicate which of the objectives of managerial accounting activity is involved. In some cases, several objectives may be involved.
a. Providing information for decision making and planning.
b. Assisting managers in directing and controlling operational activities.
c. Motivating managers and other employees toward the organization's goals.
d. Measuring the performance of activities, subunits, managers, and other employees within the organization.
e. Assessing the organization's competitive position, and working with other managers to ensure the organization's long-run competitiveness in its industry
Answer:
1)C.motivating managers and other employees toward the organization's goals.
2)B.assisting managers in controlling operations
3)A.providing information for decision making and planning.
4)A.providing information for decision making and planning
-B.assisting managers in directing and controlling operational activities
D.measuring the performance of activities, subunits, managers and other employees within the organization
5)A.providing information for decision making and planning
6) ✓Measuring the performance of activities, subunits, managers, and other employees within the organization
✓Providing information for decision making and planning
7)E.Assessing the organization's competitive position and working with other managers to ensure the organization's long-run competitiveness in its industry.
Explanation:
THIS IS THE COMPLETE PART OF THE QUESTION BELOW;
1. Developing a bonus reward system for the managers of the various offices of the AAA (American Automobile Association) Travel Agency.
a.Providing information for decision making and planning.unchecked
b.Assisting managers in directing and controlling operational activities.unchecked
c.Motivating managers and other employees toward the organization’s goals.checked
d.Measuring the performance of activities, subunits, managers, and other employees within the organization.unchecked
e.Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry.
2. Comparing the actual and planned cost of a consulting engagement completed by an engineering firm such as Allied Engineering.
a.Providing information for decision making and planning.unchecked
b.Assisting managers in directing and controlling operational activities.checked
c.Motivating managers and other employees toward the organization’s goals.unchecked
d.Measuring the performance of activities, subunits, managers, and other employees within the organization.unchecked
e.Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry.unchecked
3. Determining the cost of manufacturing a tennis racket at Wilson Sporting Goods.
a.Providing information for decision making and planning.unanswered
b.Assisting managers in directing and controlling operational activities.unanswered
c.Motivating managers and other employees toward the organization’s goals.unanswered
d.Measuring the performance of activities, subunits, managers, and other employees within the organization.unanswered
e.Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry.unanswered
4. Measuring the cost of the inventory of digital cameras on hand in a Best Buy store.
a.Providing information for decision making and planning.unanswered
b.Assisting managers in directing and controlling operational activities.unanswered
c.Motivating managers and other employees toward the organization’s goals.unanswered
d.Measuring the performance of activities, subunits, managers, and other employees within the organization.unanswered
e.Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry.
5. Estimating the annual operating cost of a newly proposed Wells Fargo branch bank.
a.Providing information for decision making and planning.unanswered
b.Assisting managers in directing and controlling operational activities.unanswered
c.Motivating managers and other employees toward the organization’s goals.unanswered
d.Measuring the performance of activities, subunits, managers, and other employees within the organization.unanswered
e.Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry.unanswered
6. Measuring the following costs incurred during one month in a Hyatt Regency hotel:
7. Comparing a Sheraton Hotel’s room rate structure, occupancy rate, and restaurant patronage with industry averages.
EXPLANATION:
Managerial accounting can be regarded as the practice involving identification, measurement, analysing as well as communication of financial information across to managers so that goals of the organization can be achieved. Main objective of managerial accounting is the maximization of profit as well minimization of losses. It involves coming up with data so that
inconsistencies in finances can be predicted and this will help manager to make some decisions
Solving for dominant strategies and the Nash equilibrium
*Fill in the blanks please :) *
Suppose Paolo and Sharon are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Paolo chooses Right and Sharon chooses Right, Paolo will receive a payoff of 5 and Sharon will receive a payoff of 4.
The only dominant strategy in this game is for _________ to choose __________.
The outcome reflecting the unique Nash equilibrium in this game is as follows: Paolo chooses __________ and Sharon chooses _______.
Question Completion:
Matrix payoff:
Sharon
Left Right
Paolo Left 8, 3 4, 4
Right 5, 3 5, 4
Answer:
The only dominant strategy in this game is for ___Paolo______ to choose ____Right______.
The outcome reflecting the unique Nash equilibrium in this game is as follows: Paolo chooses ____Right______ and Sharon chooses __ Right_____.
Explanation:
a) Paolo's dominant strategy is the strategy that always provides the greater utility to Paolo, no matter what Sharon's strategy is. In this case, the dominant strategy for Paolo is to choose RIGHT always.
b) The Nash Equilibrium concept determines the optimal solution in a non-cooperative game in which each player (e.g. Paolo and Sharon) lacks any incentive to change their initial strategies. This implies that each player can achieve their desired outcomes by not deviating from their initial strategies since each player's strategy is optimal when considering the decisions of the other player.
6. Despite multimillion-dollar investments, many IT organizations cannot respond quickly to evolving business needs. Also, they cannot adapt to large-scale shifts like mergers, sudden drops in sales, or new product introductions. Can cloud computing help organizations improve their responsiveness and get better control of their IT costs
Answer:
Yes
Explanation:
In a way Yes. Cloud Computing can allow an IT organization to quickly meet their current changing needs since they have access to all the necessary equipment and computing power by simply making a phone call. That is the main service of Cloud Computing organizations, they provide all the necessary hardware power to IT companies completely remotely. All the IT company would have to do is pay for the extra computing power that they need and they can get it immediately. This will allow them to immediately adapt to changes such as mergers, sudden drops in sales, or new product introductions.
Last month, you lent a work colleague $5000 to cover some overdue bills. He agreed to pay you in 1 month with interest at 2% for the month, thus owing you $5100. Today, when the repayment is due, he asked you to extend the loan for another month and he would pay you the $5100 next month. In the meantime, you have had the offer to invest as much as you wish in an oil-well venture that is expected to pay 40% per year and a hot new IT stock that is estimated to return 39% the first year. If you let your colleague have another month, what is the opportunity cost of your decision
Answer:
The opportunity cost of lending the money to the friend is the largest expected return that could be earned with the money loaned to the friend. From the available opportunity, the investor could earn maximum of 40% by investing in oil well venture. Thus, the opportunity cost to the investor is 40%
The opportunity cost in dollar = Investment * Opportunity cost in %
= $5,000 * 40%
= $2,000
Thus, the opportunity cost in dollar is $2,000
Stock A has the following returns for various states of the economy State of the Economy Probability Stock A's Return Recession 9 72 Below Average 16 15 Average 51 16 Above Average 14 35 Boom 10 85 Stock A's expected return is Group of answer choices 13.8 12.7 16.5 9.9
Answer:
the expected return is 12.7%
Explanation:
The computation of the expected return is given below:
Expected return = Respective probability × respective return
= (-72 × .09) + (-15 × .16) + (16 × .51) + (35 × .14) + (85 × .10)
= -6.48% -2.4% + 8.16% + 4.9% + 8.5%
= 12.68%
= 12.7%
Hence, the expected return is 12.7%
The above formula should be used for the same.
For the year, Jensen's has depreciation of $2,058, dividends paid of $125, interest expense of $382, an addition to retained earnings of $3,408, and an increase in common stock of $2,500. The total tax rate is 21 percent. What is the operating cash flow
Answer:
$5,973
Explanation:
The computation of operating cash flow is seen below;
Net income = $125 + $3,408 = $3533
Net income $3,533 - Interest expense $382 - Depreciation $2,058 = EBIT $1,093
Tax = 21% × $1,093 = $229.53
Operating cash flow = $1,093 + $2,058 + $2,700 - $229.53 = $5,973
Describe what will happen to total revenue in the following situations: 1. Price decreases and demand is elastic 2. Price decreases and demand is inelastic 3. Price increases and demand is elastic 4. Price increases and demand is inelastic 5. Price increases and demand is unitary elastic 6. Price decreases and demand is perfectly inelastic 7. Price increases and demand is perfectly elastic
Answer:
Total revenue increases
If prices are reduced, demand would increase more than the fall in price and total revenue would increase.
2. Total revenue falls. If price is reduced, there would be little or no change in quantity demanded and as a result total revenue would fall.
3. Total revenue falls. If prices are increased, demand would fall more than the rise in price and total revenue would fall.
4, Total revenue increases. If demand is inelastic and prices are increased, the rise in price would be greater than the fall in demand. As a result, total revenue increases
5. no change in total revenue . a increase in price leads to an equal change in quantity demanded and there would be no change in total revenue
6. fall. If prices decreases, there would be no change in quantity demanded and total revenue would fall
7. total revenue falls to zero. If prices are increased, demand would fall to zero and total revenue would fall
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes. If prices are reduced, demand would increase more than the fall in price and total revenue would increase. If prices are increased, demand would fall more than the rise in price and total revenue would fall.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one. If price is increased, there would be little or no change in quantity demanded and total revenue would increase. If price is reduced, total revenue would fall.
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded. If price increases, there would be an equal change in quantity demanded, total revenue would remain the same
Answer:
a. The overall income will drop.
b. The overall income will drop.
c. The overall income will drop.
d. The overall income will rise.
e. The overall income will not change.
f. The overall income will not change.
g. The overall income will not change.
Explanation:
a. If there is an elastic demand for the product and the price goes down, the overall revenue will go down. This is due to the fact that when there is a decrease in price, there is a rise in the amount that is desired. This is due to the fact that customers are sensitive to changes in price and will begin purchasing a greater quantity of the item or service after the price has dropped. Yet, because of the drop in price, there will be a reduction in the overall income that is generated from the sale of the product or service. This is due to the fact that the increase in quantity will not be sufficient to compensate for the reduction in cost that will result from the sale.
b. If there is no change in the level of demand, but the price is decreased, total revenue will likewise go down. This is due to the fact that if there is a fall in price, there will be an increase in the amount that is desired. Unfortunately, the increase in quantity will not be sufficient to compensate for the reduction in price, which will result in a lower overall income. This is due to the fact that the increase in supply will not be sufficient to compensate for the reduction in cost.
c. If there is no significant change in demand, then higher prices will not significantly affect overall income. This is due to the fact that as the price goes up, the amount of the good that is desired will go down. This is due to the fact that customers are sensitive to changes in price and will begin purchasing less of the item or service as the price rises. Even if the rise in price is more than the reduction in quantity desired, the overall income will still fall because of the lower amount of the good or service that is being purchased.
d. If there is no change in the level of demand, a rise in price will lead to an increase in total income. This is due to the fact that if the price goes higher, the quantity needed will go down, but not by an amount that is sufficient to compensate for the price going up. As a consequence, there will be an increase in total income as a direct consequence of the price rise.
e. if the demand is unitary elastic and the price goes up, the overall revenue won't change but it will stay the same. This is due to the fact that whenever there is a rise in price, there is a corresponding fall in the number of goods that are desired. As a consequence, there will be no change in overall income as a result of the rise in price since it will be balanced out by the drop in quantity.
f. If there is no change in the level of demand, regardless of whether the price goes up or down, overall revenue will stay the same. This is due to the fact that even if prices go down, consumers will still want the same amount of the good or service. Thus, there will be no change in overall income as a consequence of the fall in price since this will be balanced out by the demand for the same amount.
g. If there is no change in demand despite a rise in price, businesses will get the same amount of revenue overall. This is due to the fact that once the price is raised, customers will no longer purchase any of the product or service. Because of this, there will be no change in overall income as a consequence of the rise in price since there will be no change in the amount that is required.
On September 1, Capitol Maintenance Company contracted to provide monthly maintenance services for the next seven months at a rate of $2,300 per month. The client paid Capitol $16,100 on September 1. The maintenance services began on that date. Assuming Capitol records deferred revenues using the alternative treatment, what would be the adjusting entry recorded on December 31
Answer:
Debit Unearned Revenue, Credit Service Revenue for $9,200
Explanation:
Date Account Titles Debit Credit
Sept 1 Cash $16,100
Unearned service revenue $16,100
Dec 31 Unearned service revenue $9,200
Service Revenue $9,200
($2300 * 4 months)
You are contemplating between four possible interest rate structures. The rates are as follows: annual effective rate of 12% annual nominal rate of 12% compounded monthly annual nominal rate of 8% compounded quarterly annual nominal rate of 10% compounded semiannually You wish to deposit $1,000 into a fund for 2 years. Calculate the difference between the largest and smallest possible accumulated values of your deposit at the end of 2 years.
Answer:
The difference between the largest and smallest possible accumulated values of the deposit at the end of 2 years is $98
Explanation:
Annual effective rate of 12%
FV = PV * (1+i)^n
FV = $1,000 * (1+0.12)^2
FV = $1,000 * 1.2544
FV = $1,254.
Annual nominal rate of 12% compounded monthly
FV = PV * (1+i)^nm
FV = $1,000 * (1+0.01)2^12
FV = $1,000 * (1+0.01)^24
FV = $1,000 * 1.2697
FV = $1,270
Annual nominal rate of 8% compounded quarterly
FV = PV * (1+i)^nm
FV = $1,000 * (1+0.02)2*4
FV = $1,000 * (1+0.02)^8
FV = $1,000 * 1.171659
FV = $1,172
Annual nominal rate of 10% compounded semiannually
FV = PV * (1+i)^n
FV = $1,000 * (1+0.05)^2*2
FV = $1,000 * (1+0.05)^4
FV = $1,000 * 1.215506
FV = $1,216
So, the difference between the largest and smallest possible accumulated values is $98 ($1,270 - $1,172)
The following trial balance of Watteau Co. does not balance.
Debit    Credit
Cash $2,870
Accounts Receivable $3,231
Supplies 800
Equipment $3,800
Accounts Payable $2,666
Unearned Service Revenue 1,200
Common Stock 6,000
Retained Earnings 3,000
Service Revenue 2,380
Salaries and Wages Expense 3,400
Office Expense    94000000
$13,371 $16,916
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
a. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
b. The purchase of a computer printer on account for $500 was recorded as a debit to Supplies for $500 and a credit to Accounts Payable for $500.
c. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
d. A payment of $65 for telephone charges was recorded as a debit to Office Expense for $65 and a debit to Cash for $65.
e. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $325 was performed prior to June 30 (related to Unearned Service Revenue).
f. A debit posting to Salaries and Wages Expense of $670 was omitted.
g. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
h. A dividend of $575 was debited to Salaries and Wages Expense for $575 and credited to Cash for $575.
Required:
Prepare a correct trial balance.
Answer and Explanation:
The preparation of the correct trial balance is presented below:
Particulars Debit Credit
Cash $2,920
Accounts Receivables $3,051
Supplies $300
Equipment $4,300
Accounts Payables $2,200
Unearned Service Revenue $875
Common Stock $6,000
Dividend $575
Retained Earning $3,000
Service Revenue $3,506
Salaries & Wages $3,495
Telephone Expenses $65
Office Expenses $875
Total $15,581 $15,581
Fluno Corporation has 1 million shares outstanding at the end of fiscal 2005. Its stock is trading at $15 per share. It issued $0.6 million in dividends, and had net income of $1 million in fiscal 2005. At the end of 2005, its total assets, liabilities, and retained earnings were $25 million, $15 million, and $7.5 million, respectively. Fluno's price-to-book ratio is _____ and Fluno's dividend yield ratios is _____ for 2005.
Answer:
Fluno's price-to-book ratio is 1.5 and Fluno's dividend yield ratios is 4% for 2005.
Explanation:
total equity = $10 million
book value per share = $10 million / 1 million shares = $10 per share
price to book ratio = $15 / $10 = 1.5
dividend per share = $0.6 million / 1 million shares = $0.60 per share
dividend yield ratio = annual dividend / price per share = $0.60 / $15 = 0.04 = 4%
Big Lake Bob spends his time carving fishing lures and duck decoys. If Big Lake Bob spends all of his time carving fishing lures he can carve 50 lures in a week. If he spends all of his time carving duck decoys he can carve 25 decoys in a week. For every 5 duck decoys Big Lake Bob carves he must give up 10 fishing lures.
Fill in the values in the table below to complete Big Lake Bob's production possibilities schedule.
Big Lake Bob's production possibilities schedule
Fishing lures Duck Decoys
100 0
0 30
Answer:
Big Lake Bob
Production Possibilities Schedule:
Fishing Lures Duck Decoys
100 0
90 5
80 10
70 15
60 20
50 25
40 30
30 35
20 40
10 45
0 50
Explanation:
Number of fishing lures carved in a week = 50
Number of duck decoys carved in a week = 25
This means that for every 5 duck decoys Big Lake Bob carves, he gives up 10 fishing lures.
Big Lake Bob's production possibilities schedule
Fishing Lures Duck Decoys
100 0
90 5
80 10
70 15
60 20
50 25
40 30
30 35
20 40
10 45
0 50
b) Big Lake Bob's production possibilities Schedule is a table of numbers that illustrates the production possibilities of Bob's economy, with the alternative combinations of two goods that can be produced with limited resources (labor hours, capital, and materials, etc.) and technology.
Below is the complete list of accounts of Sooner Company and the related balance at the end of April. All accounts have their normal debit or credit balance. Cash, $3,200; Prepaid Rent, $6,700; Accounts Payable $3,600; Common Stock, $33,000; Service Revenue, $24,700; Salaries Expense, $7,500; Accounts Receivable, $5,400; Land, $53,000; Deferred Revenue, $1,950; Retained Earnings, $21,250; Supplies Expense, $8,700. Required: Prepare a trial balance with the list of accounts in the following order: assets, liabilities, stockholders' equity, revenues, and expenses.
Answer:
Trial Balance
Debit Credit
Land 53000
Accounts Receivable 5400
Cash 3200
Prepaid Rent 6700
Accounts Payable 3600
Deferred revenue 1950
Common Stock 33000
Retained earnings 21250
Service Revenue 24700
Salaries expense 7500
Supplies expense 8700
Totals 84500 84500
Explanation:
The trial balance has been made in the answer section.
The shift from PPF1 to PPF2 implies all of the following EXCEPT: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a the maximum amount of dining sets that can be produced did not change. b the maximum amount of laptop computers that can be produced increased. c the maximum amount of both outputs that can be consumed increased. d the maximum amount of each good that can be produced increased.
Answer:
The shift from PPF1 to PPF2 implies all of the following EXCEPT:
a. the maximum amount of dining sets that can be produced did not change.
Explanation:
A production possibility frontier (PPF) indicates the maximum possible output combinations of two goods or services an economy can produce with the efficient and effective utilization of economic resources. The production possibility frontier illustrates the concepts of opportunity cost, trade-offs and also shows the effects of growth in any given economy. A shift from PPF1 to PPF2 implies an increase.
The Hawthorne studies found that although financial incentives are important drivers of worker productivity, intrinsic motivation was equally important. intrinsic motivation was equally important. flexible working hours was equally important. flexible working hours was equally important. social factors are more important. social factors are more important. work variety is more important.
Answer:
social factors are more important.
Explanation:
The Hawthorne Studies was a study that centered around the employees that were working at the Hawthorne plant of the Western Electric Company and it was conducted in the 1920s by Elton Mayo and Fritz Roethlisberger.
Basically, the study was focused on examining the socio-psychological aspects of human behavior (employees) working in a business firm or an organization.
The main purpose of the Hawthorne Studies was to analyze, examine and determine how various aspects of the work environment in an organization which typically includes social factors such as break time, lighting, and duration of work hours have on the level of productivity (performance) of employees.
Hence, the Hawthorne studies found that although financial incentives are important drivers of worker productivity, social factors are more important.
Pronghorn Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually).
Aug. 2 Invested $12,100 cash and $2,690 of equipment in the business.
7 Purchased supplies on account for $550. (Debit asset account).
12 Performed services for clients, for which $1,180 was collected in cash and
$682 was billed to the clients.
15 Paid August rent $622.
19 Counted supplies and determined that only $295 of the supplies purchased
on August 7 are still on hand.
Date Account Titles and Explanation Debit Credit
Answer:
Date Account Details and Description Debit Credit
Aug. 2 Cash $12,100
Equipment $2,690
Owner's Capital $14,790
Date Account Details and Description Debit Credit
Aug. 7 Supplies $550
Accounts Payable $550
Date Account Details and Description Debit Credit
Aug. 12 Cash $1,180
Accounts receivable $682
Service revenue $1,862
Date Account Details and Description Debit Credit
Aug. 15 Rent expense $622
Cash $622
Date Account Details and Description Debit Credit
Aug 19 Supplies expense (550 - 295) $255
Supplies $255