Answer:
23.02 years
Explanation:
The expression that describes the future value of an investment (P) at an annual rate (r) for a period of n years, compounded annualy is:
[tex]FV = P*(1+r)^n[/tex]
If Rachel wants to accumulate $6,500 with an investment of $1,700 at 6% per year, the length of her investment, in years, must be:
[tex]6,500 = 1,700*(1+0.06)^n\\1.06^n = 3.8235\\n=\frac{log(3.8235)}{log(1.06)}\\n=23.02\ years[/tex]
It will take Rachel roughly 23.02 years to accumulate $6,500.
Vore Corp. bought equipment on January 2, 20X4 for $200,000. This equipment had an estimated useful life of five years and a salvage value of $20,000. Depreciation was computed by the 150% declining balance method. The accumulated depreciation balance at December 31, 20X5 should be:
Final answer:
The accumulated depreciation of Vore Corp.’s equipment at December 31, 20X5, using the 150% declining balance method, is calculated by applying a 30% depreciation rate to the diminishing book value each year. After two years, the accumulated depreciation is $102,000.
Explanation:
To calculate the accumulated depreciation for Vore Corp.’s equipment at the end of two years using the 150% declining balance method, we need to apply the accelerated depreciation rate to the book value at the beginning of each year. As the equipment was purchased for $200,000 with a salvage value of $20,000, the depreciation base is $180,000. The annual depreciation rate is therefore 150% divided by the useful life of the equipment, which is 5 years, resulting in a 30% annual depreciation rate.
For the first year (20X4), the depreciation expense is 30% of $200,000, which is $60,000. The book value at the end of the first year will be $200,000 - $60,000 = $140,000. For the second year (20X5), we apply the 30% rate to the new book value of $140,000, resulting in a depreciation expense of $42,000 for that year. Therefore, the total accumulated depreciation at the end of 20X5 would be the sum of the two years’ depreciation expenses, which is $60,000 + $42,000 = $102,000.
Your mom is thinking of retiring. Her retirement plan will pay her either $ 200 comma 000 immediately on retirement or $ 280 comma 000 five years after the date of her retirement. Which alternative should she choose if the interest rate is: a. 0 % per year? b. 8 % per year? c. 20 % per year?
Answer:
a. $280,000 after 5 years.
b. $200,000 immediately after retirement.
c. $200,000 immediately after retirement.
Explanation:
The future value of a $200,000 payment, after 5 years at a rate 'r' is:
[tex]F = 200,000*(1+r)^5[/tex]
For each rate 'r', your mom should only choose to receive the $200,000 immediately on retirement if F > $280,000, otherwise she should opt for the $280,000 in 5 years.
a. 0 % per year
[tex]F = 200,000*(1+0)^5\\F= \$200,000[/tex]
She should opt for the $280,000 after 5 years.
b. 8 % per year
[tex]F = 200,000*(1+0.08)^5\\F= \$293,865.62[/tex]
She should opt for the $200,000 immediately after retirement.
c. 20 % per year
[tex]F = 200,000*(1+0.2)^5\\F=\$497,664[/tex]
She should opt for the $200,000 immediately after retirement.
In January 2000 Ecuador officially replaced its national currency, the Ecuadorian sucre, with the U.S. dollar. This practice is known as: A. bi-currencyism B. a Yankee bailout C. securitization D. dollarization
Answer: D. Dollarization
Explanation: Ecuador officially changing its currency to the US dollar means that it has substituted its Sucre with the Dollar. This is termed dollarization, also known as currency substitution, a process whereby a country, officially, or its residents, unofficially, adopting the US dollar or other foreign currency in parallel to or instead of the domestic currency. It has its advantages as well as disadvantages. Some of the advantages include lower administrative costs, a firm basis for a sounder financial sector, and lower interest rates. Its disadvantages ranges from the loss of monetary autonomy, national symbol as well as greater vulnerability to foreign influence among others.
An economy produces computer chips and fish. In 2014, one pound of fish costs $10, a computer chip costs $10, and the economy produces 10 pounds of fish and 10 computer chips. In 2015, when the economy produces 5 pounds of fish and 20 computer chips, one pound of fish costs $20 and a computer chip costs $5. Real GDP in 2015 (at 2014 prices) was _____ dollars.
Answer:
Real GDP (2014 price) = $ 250
Explanation:
GDP is the total value (PxQ) of goods & services, produced by an economy during a period of time. Real GDP is the value at constant base year prices.
Given [2015] : Fish Quantity = 5 , Computer Chip Quantity = 20
Base Year [2014] price : Fish = $10 , Computer Chip = $10
2015 Real GDP at 2014 base year price = Price 2014 x Quantity 2015
= (Fish PXQ) + (Computer Chip PXQ)
= (10 x 5) + (10 x 20)
= 50 + 200
= $ 250
The Real GDP in 2015 (at 2014 prices) is calculated by multiplying the quantities of goods produced in 2015 by their 2014 prices, resulting in a total of $250.
The student's question involves calculating the Real GDP in 2015 using 2014 prices. To find the Real GDP for 2015, we use the quantities of goods produced in 2015 and multiply them by the prices from 2014. For fish, in 2015, 5 pounds were produced, and the 2014 price was $10 per pound. For computer chips, 20 were produced in 2015, with the 2014 price being $10 each.
The Real GDP in 2015 at 2014 prices can be calculated as follows:
Real GDP from fish = Quantity in 2015 imes Price in 2014 = 5 pounds imes $10/pound = $50
Real GDP from computer chips = Quantity in 2015 imes Price in 2014 = 20 chips imes $10/chip = $200
Adding these values together gives:
Real GDP in 2015 (at 2014 prices) = $50 + $200 = $250 dollars.
Adjusting Entry at Balance Sheet Date
Yum! Brands, Inc. has the following receivables and payables denominated in foreign currencies, prior to closing on December 31. The spot rates at December 31 are also given.
Item Current $ balance FC balance December 31 spot rate
1. Receivable $65,000 1,000,000 Mexican pesos $0.06
2. Receivable 165,000 225,000 Canadian dollars 0.75
3. Payable 556,000 400,000 Jordan dinar 1.41
4. Payable 56,000 200,000 Saudi Arabian riyal 0.27
Prepare the adjusting entry recorded by Yum! Brands at December 31.
Answer:
The entries are prepared and explained in the explanations.
Explanation:
The question is to prepare the adjusting entries recorded by Yum! Brand
Number 1:
Account Items Debit Credit
Cash $60,000
Foreign Exchange loss $5,000
Accounts Receivable $65,000
(1,000,000 x 0.06= $60,000
65,000 - 60,000= $5,000 loss)
Number 2:
Account Items Debit Credit
Cash $168,750
Account Receivable $165,000
Foreign Exchange gain $3,750
225,000 x 0.75= 168, 750
$168,750- $165,000 = $3,750
Number 3:
Account Items Debit Credit
Accounts Payable $556,000
Foreign Exchange loss $8,000
Cash $564,000
400,000 x $1.41 = $564,000
564,000-556,000= $8,000
Number 4:
Account Items Debit Credit
Accounts Payable $56,000
Foreign Exchange gain $2,000
Cash $54,000
200,000 x $0.27= $54,000
56,000- 54,000=$4000
As a Christmas thank you for being a good employee, Ed's TV Repair gave 62-year-old Edwina three shares of its stock worth $20 per share. Edwina then received dividends of $1 per share related to the stock. How much should be included in Edwina's gross income? a. $0 b. $60 c. $3 d. $63 e. None of these
Answer:
d. $63
Explanation:
This "thank you" classifies as a performance bonus and, therefore, Edwina should include the whole market value plus dividends received from the three shares of Ed's TV Repair stock that she earned. The total amount for the shares' value plus dividends earned is:
[tex]A = 3*(\$20+\$1)\\A=\$63[/tex]
Edwina should include $63 in her gross income.
A revenue center manager:
a. would normally be held accountable for producing an adequate return on invested capital.
b. does not have the ability to produce revenue.
c. may be the manager who oversees the operations of a retail store.
d. may be involved with the sale of new marketing programs to clients.
e. often oversees divisional operations.
Answer:
d. may be involved with the sale of new marketing programs to clients.
Explanation:
A revenue center manager -
It refers to the person , who is responsible for the generation of the sales , is referred to as a revenue center manager .
A good revenue center manager is determined by his or her ability to generate the sales , not by the cost incurred .
Hence , from the given question,
The correct option is d.
Relational integrity constraints enforce business rules vital to an organization's success and often require more insight and knowledge than relational integrity constraints. Question 33 options: True False
Relational integrity constraints ensure data quality and consistency in a relational database, while business rules are broader guidelines for organizational success. Relational integrity constraints focus on the database, while business rules consider the organization as a whole.
Explanation:Relational integrity constraints are rules that are applied to the data in a relational database to ensure its quality and consistency. These constraints can include primary key constraints, foreign key constraints, and other rules that define the relationships between tables in the database. They ensure that data is correctly and consistently stored and manipulated.
On the other hand, business rules are specific rules or guidelines that are defined by an organization to ensure its success and operational efficiency. These rules can include policies, regulations, and best practices that govern the behavior and actions of the organization's members.
In comparison, while relational integrity constraints primarily focus on the data integrity and consistency within a database, business rules encompass a broader scope and consider the overall goals and requirements of the organization. Both are important for the success of an organization, but business rules often require more insight and knowledge specific to the organization.
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Yi Min started an engineering firm called Min Engineering. He began operations and completed seven transactions in May, which included his initial investment of $18,000 cash. After those seven transactions, the ledger included the following accounts with normal balances. Cash $ 37,600 Office supplies 890 Prepaid insurance 4,600 Office equipment 12,900 Accounts payable 12,900 Common stock 18,000 Dividends 3,370 Engineering fees earned 36,000 Rent expense 7,540 Required: 1. Prepare a trial balance for this business as of the end of May.
Answer:
Trial balance for Yi Min
on the May 31, YY
Dr. Cr.
$ $
Cash 37,600
Office supplies 890
Prepaid insurance 4,600
Office equipment 12,900
Dividends 3,370
Rent expense 7,540
Accounts payable 12,900
Common stock 18,000
Engineering fees earned 36,000
66,900 66,900
The trial balance includes all the accounts and balances. The total debit is $66,900 and total credit is $66,900, so the trial balance is balanced.
Explanation:To prepare a trial balance, you list all the accounts titles and their balances. In trial balance, debits will be listed on the left and credits on the right. We start with assets accounts followed by liabilities, equity, revenue, and finally expenses. The sum of debit balance should be equal to the sum of credit balance.
Here is the trial balance for Min Engineering at the end of May:
Debit: Cash $37,600Debit: Office Supplies $890Debit: Prepaid Insurance $4,600Debit: Office Equipment $12,900Credit: Accounts Payable $12,900Credit: Common Stock $18,000Debit: Dividends $3,370Credit: Engineering Fees Earned $36,000Debit: Rent Expense $7,540Total Debit = $37,600 + $890 + $4,600 + $12,900 + $3,370 + $7,540 = $66,900
Total Credit = $12,900 + $18,000 + $36,000 = $66,900
The totals of debit and credit match, so the trial balance is balanced.
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Seller agrees to supply all gasoline fire needs for the next year three dollars per gallon. After three months the price of gas falls to 233 per gallon. Buyer refuses to keep buying from seller unless the seller lowers the price. Seller agrees to months later the average price of gas goes up to $3.50 per gallon. Seller asked buyer to agree to the price range, but the buyer refuses which of the following is true
A. Buyer must pay three dollars per gallon for the rest the year
B. buyer must pay $2.33 per gallon for the rest of the year
C. Buyer must pay $3.50 per gallon for the rest of the year
D. Seller can legally refuse to supply by with any more gasoline for the rest of the year
Answer:
B. buyer must pay $2.33 per gallon for the rest of the year.
Explanation:
The correct answer is B. The seller agrees to supply gasoline for next year at $3 per gallon, the buyer agreed to it. When the gasoline prices declined the buyer insisted to reduce price and seller agreed to it. When the prices rise again the seller asked to raise price but buyer refused. Buyer cannot terminate the contract instead it has to continue buying at $2.33 per gallon if the seller is agreed to sell on this price for the rest of the year.
When you were born, your grandfather established a trust fund for you in the Cayman Islands. The account has been earning interest at the rate of 66% per year. If this account will be worth $120 comma 000120,000 on your 2323th birthday, how much did your grandfather deposit on the day you were born?
Answer:
$1.0391
Explanation:
The question is asking for the calculation of the present value of a future sum.
First, the Future Value = $120,000 = FV
The number of years to achieve the value is = 23 years = N
and the earning interest rate per year is 66%= r
Based on these information, the formula for calculating the future value is as follows:
FV / (1/ (1+ r)∧)n)
Using the formula, we have the following:
$120,000/ [1/(1+0.66)∧23]
$120,000 /(1/115474.48258)
$120,000/ (0.0000086599)
=$1.0391
Using the compound interest formula and provided the interest is compounded annually, it's calculated that the grandfather deposited approximately $138.51 in the trust fund upon the student's birth.
Explanation:This problem is about understanding compound interest. The formula for compound interest is A = P(1 + r/n)nt where:
A is the money accumulated after n years, including interest. P is the principal amount (the initial money). We’re trying to find this. r is the interest rate (decimal). In this case, it's 0.66. n is the number of times that interest is compounded per unit t. t is the time the money is invested for in years. Here it's 23 years.
Since we don’t have the details on how many times the interest is compounded, we’ll consider it compounded annually. So n = 1.
Plugging in the known values into the compound interest formula gives us:
120,000 = P(1 + 0.66)23
Solving for P, we find that the amount of money that your grandfather deposited on the day you were born would have been approximately $138.51.
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Analytical CRM tools can slice-and-dice customer information to create made-to-order views of _________________. Multiple Choice customer spending customer value All of these are correct. customer segmentation
Answer:All of these are correct.
Explanation:CRM(customer relations management) is a concept applied by Organisations to help them manage their relationship with their customers,it helps to know what customers need and do the necessary changes or actions to meet them.
Analytical customer relationship management has to do with the analysis(slicing and dicing)carried out on customer information in order to understand the values customer have for a given product or service, customer spending choices and customer segmentation. Analytical CRM is very useful in making effective customer satisfaction and customer relationship.
The following information is available for Aikman Company. January 1, 2022 2022 December 31, 2022 Raw materials inventory $21,000 $30,000 Work in process inventory 13,500 17,200 Finished goods inventory 27,000 21,000 Materials purchased $150,000 Direct labor 220,000 Manufacturing overhead 180,000 Sales revenue 910,000 Instructions a. Compute cost of goods manufactured. b. Prepare an income statement through gross profit. c. Show the presentation of the ending inventories on the December 31, 2022, balance sheet. d. How would the income statement and balance sheet of a merchandising company be different from Aikman's financial statements?
Answer:
a. $537,300
b. Aikman Company
Income Statement
For the year ended December 31, 2022
Sales Revenue $910,000
Less: Cost of goods sold
Raw material, beginning 21,000
Add:Purchases 150,000
Raw materials available 171,000
Less: Raw material, end 30,000
Cost of raw material used 141,000
Add: Direct labor 220,000
Prime Cost 361,000
Add: Factory overhead 180,000
Manufacturing cost 541,000
Add: Work in process, beginning 13,500
Less: Work in process, Ending 17,200
Cost of Goods Manufactured 537,300
Add: Finished Goods, beginning 27,000
Less: Finished Goods, Ending 21,000
Cost of Goods Sold 543,300
Gross Profit $366,700
c. Raw materials, ending $30,000
Work in process, ending $17,200
Finished goods, ending $21,000
Total inventory $68,200
d. The difference in the balance sheet and income statement of Aikman Company to Merchandising company is that, Aikman income statement consists of expenses arising from the manufacturing of goods that the merchandising company never incur. In addition to that, Aikman Company has ending inventory of Raw materials, work in process and finished goods while the other merchandising company only has ending inventory of good purchased not yet sold.
Explanation:
a. Aikman's statement of goods manufactured is presented below.
Aikman Company
Statement of Cost of Goods Manufactured
For the year ended December 31, 2022
Raw material, beginning 21,000
Add:Purchases 150,000
Raw materials available 171,000
Less: Raw material, end 30,000
Cost of raw material used 141,000
Add: Direct labor 220,000
Prime Cost 361,000
Add: Factory overhead 180,000
Manufacturing cost 541,000
Add: Work in process, beginning 13,500
Less: Work in process, Ending 17,200
Cost of Goods Manufactured 537,300
b. Income statement of Aikman starts from the sales revenue that the company incurs for the period and then deduct the cost of goods sold to arrive the gross profit.
c. Aikman's inventory balance consists of Raw materials, work in process and finished goods balances.
The cost of goods manufactured for Aikman Company is calculated by adding materials, labor, and overhead costs to the opening WIP inventory and subtracting the ending WIP inventory. This is deducted from sales revenue to reveal gross profit. A merchandising company’s financial statements differ in that their COGS does not involve production costs.
To calculate the Cost of Goods Manufactured (COGM) for Aikman Company, we need to add the costs of materials, labor, and manufacturing overhead to the beginning Work in Process (WIP) inventory, and then subtract the ending WIP inventory. The COGM is the total cost incurred to manufacture products and transfer them into finished goods inventory during a set time period.
To prepare an income statement through gross profit, we need to subtract the COGM from the sales revenue. The balance left is the gross profit. The ending inventories would be presented under the current assets section in the balance sheet dated December 31, 2022.
Comparatively, a Merchandising company's financial statements differ mainly in terms of cost calculation. These companies directly purchase finished goods, thus their Cost of Goods Sold (COGS) would not include production costs such as direct labor or manufacturing overhead that are common for manufacturing companies like Aikman.
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What is the present value of a cash flow that begins with $1,500 deposited at the end of year 1 and increases by $500 per year thereafter through year 30 (so year 2 deposit is $2,000, and the last deposit will be at the end of year 30)? Assume interest is 6% annual rate compounded annually.
Answer:hahah
Explanation:u are so unsmart hahah lol
You are going to a dinner whith three (3) friends, one who likes steak, another wine, and the third is a vegetarian (which is assumed to be the least expensive). Which is true?a. The vegetarian will be better off with equal shares.b. Equal sharing of the bill ensures that people order a similar dollar amount of food.c. How the bill is shared has no effect on what and how much people choose to eat.d. The wine-drinker will argue for equal shares, and will drink as fast (and/or as much) as possible.
Answer:
The correct answer is letter "C": How the bill is shared has no effect on what and how much people choose to eat.
Explanation:
Regardless of the price, the friend who likes steak, the other who drinks wine, and the vegetarian are unlikely to change their eating preferences. Just because the bill is to be shared it does not imply that the vegetarian will eat stake or that the friend who eats steak will prefer to choose wine.
Which of the following are included in the typical bond indenture? I. the basic terms of the bond; II. details of the protective covenants; III. sinking fund arrangements; IV. call provisions
Answer:
D. I, II, III, IV. All of the above
Explanation:
Bond indentures are legal contracts between the issuer and the trustee that specifies the scope and responsibilities of everyone involved (borrower, trustee and lender) and also the features of the bond like maturity date and so on.
Things found in a bond indenture may include but not all
1. The name of the issuer.
2. Terms of the bond
3. Its features such as the principal value, coupon rate, dates when interest payments will be made, and maturity date.
4. Issuer’s obligations.
5. If the bonds are secured or not.
6. Protective Covenants details
7. call provisions.
8. Bondholders’ rights
9. Sinking fund arrangements.
Four of which are mentioned in the question, hence the answer given.
The 2011 income statements of Leggett & Platt, Inc., reports net sales of $3,636.0 million in 2011 and $3,359.1 million in 2010. The balance sheet reports accounts and other receivables, gross of $527.9 million at December 31, 2011, and $501.0 million at December 31, 2010. Calculate the average number of days that receivables were outstanding in 2011. Explain in plain English, what this ratio means. Did it improve from 2010?
Answer:
a) Average number of days in 2011 = 53 days
b) The days are lower than 2010, so it is better than 2010.
Explanation:
the question is to calculate the average number of days that receivables were outstanding in 2011
First, the formula
= (Accounts Receivable/The Net Credit Sales for the Period) x 365 days (days in a year)
Therefore:
1) The Net Sales for 2011 = $3,636 million
Accounts receivable for 2011= $527.9 million
We then calculate the Receivable days outstanding for 2011 as follows
= 527.9 million / 3,636 million x 365 = 53 days
2) The Net Sales for 2010= $3,359.1 million
Accounts receivable for 2010= $501 million
We then calculate the Receivable days outstanding for 2010 as follows
= 501 million / 3359.1 million x 365 = 54. 4 day
It should be noted that the higher the days of receivable were outstanding then the slower the revenue collection rate after sales. Therefore, a lower number of days is better.
Based on this, 2011 is better than 2010 because the number of days have reduced from 54.4 to 53 days.
Urban Window Company had gross wages of $240,000 during the week ended june 17. The amount of wages subject to social security tax was $240,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows:
Social security 6.0%
Medicare 1.5%
States unemployment 5.5%
Federal unemployment 0.8%
The total amount witheld from employee wages for federal taxes was $48,000.
Required:
a. Journalize the entry to record the payroll for the week of June 17.
b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.
Answer:
Wages expense 240,000
medicare payable 3,600 credit
social security payable 14,400 credit
wages payable 222,000 credit
payroll taxes 20,205 debit
FUTA payable 280 credit
SUTA payable 1,925 credit
medicare payable 3,600 credit
social security payable 14,400 credit
Explanation:
MEDICARE 1.5% Social Security 6&
OASDI/HI $ 240000 3600 14400
FUTA&SUTA $ 35000 SUTA: 5.5% = 1925 FUTA 0.8% = 280
NET WAGES:
240,000 - 3,600 - 14,400 =222,000
payroll taxes:
the employe pays the same amount for OASDI and HI and also pays FUTA and SUTA
14,400 + 3,600 + 1,925 + 280 = 20,205
In the venture life cycle, moving from the development stage to the startup stage frequently begins with the preparation of a business plan. The business plan is a written document that describes the proposed venture in all of the following terms except:
a. the proposed product or service opportunity
b. the accounting data for the last five years
c. current resources available to the venture
d. financial projections
Answer:
The correct answer is letter "B": the accounting data for the last five years.
Explanation:
A Business Plan is a written document that states how a company will achieve its goals. Few good companies last long without one. Business plans give direction to new companies, while established ones used them to determine new ventures. A business plan should paint a clear picture of the costs and drawbacks that come with each important decision.
Requesting and analyzing accounting data for the last five years is not included in the making of a business plan.
The fiscal 2016 financial statements of Nike Inc. shows average net operating assets (NOA) of $8,450 million, average net nonoperating obligations (NNO) of $(4,033) million, average total liabilities of $9,014 million, and average equity of $12,483 million. The company's 2016 financial leverage (FLEV) is: Select one: A. (0.477) B. (0.559 C. (0.323) D. (0.447) E. There is not enough information to determine the ratio.
Answer:
C. (0.323)
Explanation:
The computation of financial leverage is shown below:
= (Average net nonoperating obligations) ÷ ( average equity)
= ($4,033 million) ÷ ($12,483 million)
= (0.323)
In order to find out the financial leverage, we deduct the average net non-operating obligations by the average equity so that the financial leverage could come
The financial leverage (FLEV) for Nike Inc. in 2016 is approximately 1.91. None of the provided options in the choices accurately represents this ratio, as FLEV is typically a positive value.
To calculate the financial leverage (FLEV) for Nike Inc. in 2016, you can use the following formula:
[tex]\[FLEV = \frac{NOA}{NOA + NNO}\][/tex]
Where:
- NOA = Average Net Operating Assets
- NNO = Average Net Nonoperating Obligations
Plugging in the given values:
NOA = $8,450 million
NNO = $(4,033) million (note that this value is negative)
[tex]\[FLEV = \frac{8,450}{8,450 - 4,033} = \frac{8,450}{4,417} \approx 1.91\][/tex]
Since the result is positive, the correct answer is none of the provided options.
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Now, assume that Addison’s savings institution modifies the terms of her account and agrees to pay 5.8% in compound interest on her $1,000 balance. All other things being equal, how much money will Addison have in her account in nine years?
Answer:
Addison will have $ 1,661 in her account in nine years.
Explanation:
This problem requires us to calculate value of our investment of $ 1000 dollars after nine years. The interest on the investment is 5.8% compounded annually.
This problem can be solved by using simple compounding formula given below.
Future Value = Present Value (1+interest rate%)^-period
Future Value = 1,000 (1+5.8)^9
Future = $ 1,661
The following account balances were taken from the 2021 post-closing trial balance of the Bowler Corporation: cash, $9,500; accounts receivable, $19,500; inventory, $35,000; equipment, $210,000; accumulated depreciation, $78,000; accounts payable, $75,000; salaries payable, $31,000; retained earnings, $21,000; and common stock, $69,000.
Prepare a balance sheet
The balance sheet of the Bowler Corporation for 2021 includes total assets of $196,000 (cash, accounts receivable, inventory, and net equipment), total liabilities of $106,000 (accounts payable and salaries payable) and total equity of $90,000 (common stock and retained earnings). The sum of total liabilities and total equity equals the total assets, corroborating the fundamental accounting equation.
Explanation:The Balance Sheet of Bowler Corporation for the year ending 2021 would look like this:
AssetsCash: $9,500Accounts Receivable: $19,500Inventory: $35,000Equipment: $210,000 less Accumulated Depreciation: $78,000 equals Net Equipment: $132,000Total Assets=$196,000
LiabilitiesAccounts Payable: $75,000Salaries Payable: $31,000Total Liabilities=$106,000
EquityCommon Stock: $69,000Retained Earnings: $21,000Total Equity=$90,000
Do note that the Total Assets is equal to Total Liabilities plus Total Equity which satisfies the fundamental accounting equation.
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Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years:Number of Visitors per Year: (thousands) Maintenance Costs ($000)1,925 $3,535 2,105 3,868 4,325 7,615Required:a. Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor. (Enter your answers in dollars not in thousands of dollars. Round "Variable cost" answer to 2 decimal places.) b. The company expects a record 2,800,000 visitors next year. What would be the estimated maintenance costs? (Enter your answer in dollars not in thousands of dollars.)
Answer:
formula for maintenance cost:
maintenance cost = 1.7 visitors + 262.5
cost for 2,800,000 visitors $5,022,500
Explanation:
We find and subtract low from high:
[tex]\left[\begin{array}{ccc}High&4325&7615\\Low&1925&3535\\Diference&2400&4080\\\end{array}\right][/tex]
With that we solve for the slope which is the variable cos:
cost 4080
Unis 2400
variable cost 1.7
now, we solve for the fixed cost:
Total Cost 7615.00
Variable 4325 x 1.7 = 7352.50
Fixed Cost 262.50
expected cost for 2,800 visitors:
(2800 x 1.7 + 262.5) x 1,000 = 5,022,500
Investment Assets at Year End $170,000 Investment Assets at Beginning of Year $125,000 Savings $25,000 Employer Match to 401(k) $4,800 Gross Income $120,000 Total Assets at Year End $650,000 Total Assets at Beginning of Year $610,000 Total Liabilities at Year End $235,000 Total Liabilities at Beginning of Year $240,000. What was the return on assets (ROA) for the year?
a. 1.67%.
b. 3.25%.
c. 6.56%.
d. 13.74%.
Answer:
correct option is a. 1.67%
Explanation:
given data
Total Assets at Year End = $650,000
Total Assets at Beginning = $610,000
Total Liabilities at Year End = $235,000
Total Liabilities at Beginning = $240,000
Savings = $25,000
Gross Income = $120,000
Employer Match = $4,800
solution
we get here return on assets that is express as
return on assets = (Total Assets at at year end - ( Total Assets at Beginning + Savings + Employer Match ) ) ÷ Total Assets at Beginning .........................1
put here value and we get
return on assets = [tex]\frac{650000-610000+25000+4800}{610000}[/tex]
return on assets = 0.016721
return on assets = 1.67 %
so correct option is a. 1.67%
The return on assets (ROA) for the year is approximately 30.51%.
Explanation:To calculate the return on assets (ROA), we need to determine the change in investment assets and the average investment assets for the year. The change in investment assets is calculated by subtracting the investment assets at the beginning of the year from the investment assets at the end of the year. ($170,000 - $125,000 = $45,000)
The average investment assets for the year can be calculated by adding the investment assets at the beginning of the year to the investment assets at the end of the year and dividing by 2. (($125,000 + $170,000) / 2 = $147,500)
Now we can calculate the ROA by dividing the change in investment assets by the average investment assets and multiplying by 100 to express it as a percentage. (($45,000 / $147,500) * 100 = 30.51%)
Therefore, the return on assets (ROA) for the year is approximately 30.51%.
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Government survey takers determine that typical family expenditures each month in the year designated as the base year are as follows:
25 pizzas at $10 each
Rent of apartment, $600 per month
Gasoline and car maintenance, $100
Phone service (basic service plus 10 long-distance calls), $50
In the year following the base year, the survey takers determine that pizzas have risen to $11 each, apartment rent is $700, gasoline and maintenance have risen to $120, and phone service has dropped in price to $40.
a) Find the CPI in the subsequent year and the rate of inflation between the base year and the subsequent year
Answer:
1. CPI in the subsequent year: 1,1352. Rate of inflation: 13.5%
Explanation:
1. Calculate the CPI
CPI is the consumer price index.
CPI is created using a basket of goods and services that are typically consumed.
In the given case the typical basket is:
25 pizzasRent of apartmentGasoline and car maintenancePhone service (basic service plus 10 long-distance calls).Then to find the CPI for a determined year you multiply each item by its price and then add up all the results.
For the base year, the expenditures per month were:
25 pizzas at $ 10: $10 × 25 = $250 Rent of apartment: $600Gasoline and car maintenance: $100Phone service (basic service plus 10 long-distance calls): $50Then, the CPI for the base year is:
CPI = $250 + $600 + $100 + $50 = $1,000The year following the base year, the expenditures per month are:
25 pizzas at $ 11 : $11 × 25 = $275 Rent of apartment: $700Gasoline and car maintenance: $120Phone service (basic service plus 10 long-distance calls): $40Then the CPI for the followng year is:
CPI = $275 + $700 + $120 + $40 = $1,1352. Calculate the rate of inflation
The rate of inflation is defined as the increase of the CPI of the given year with respect ot the base year:
The formula to calculate the rate of inflation is:
Inflation = (CPI of the year - CPI of the base year) / (CPF of the base year) × 100Inflation = [ (1,135 - 1,000) / (1,000)] × 100 = 13.5%Hence, the rate of inflation for the subsequent year is 13.5%
If Miles and Hunter work together, which of the following points would NOT be on their economy-wide PPF? A. 15 dogs walked and 11 dogs groomed B. 0 dogs walked and 14 dogs groomed C. 40 dogs walked and 0 dogs groomed D. 20 dogs walked and 4 dogs groomed
Answer:
D. 20 dogs walked and 4 dogs groomed
Explanation:
The point (20,4) comes inside of the PPF, if we place all the point on a graph paper then we get a graph where the point (20,4) is inside than the other points so it is not on the PPF .
The accounting department of a garment manufacturing company has estimated that the variable cost will be $21 per unit for a new designer-labeled dress to be introduced for teenage girls. Fixed costs are anticipated to be $1M per year. Forty percent of the business for this garment will be with one preferred customer and will be charged $28 per unit. The remaining 60% of the business will be with several other customers who will be charged $40 per unit. i. Compute a. the breakeven volume for this plant. b. the unit cost if 100,000 units are made per year. c. the annual profit for this quantity. ii. The management wants to know if it should really make this garment if it expects a profit of at least $500,000 per year on this venture.
Answer:
i.
a. Break-even volume: 70,423 units;
b. Unit cost if 100,000 units are made: $31;
c. Annual profit at 100,000 units made: $420,000.
ii.
The company should make this garment if the company should be able to manufacture and sell 105,634 units per year.
Explanation:
i.
a. Break-even volume:
Denote x is the break-even volume, then we have:
1,000,000 = 0.4* X * ( 28 - 21) + 0.6 * X * ( 40 -21) <=> 14.2X = 1,000,000 <=> X = 70,423 units;
b. Unit cost if 100,000 units are made:
Total cost if 100,000 units are made = 1,000,000 + 100,000 * 21 = $3,100,000;
Unit cost = 3,100,000 / 100,000 = $31.
c. Annual profit at 100,000 units made = Total revenue - Total cost = 100,000*0.4*28 + 100,000*0.6*40 - 3,100,000 = 3,520,000 - 3,100,000 = $420,000.
ii.
To meets the minimum expected profit given costs, selling price and sell structure remains the same, the company should be able to manufacture and sell Y units per year, with Y is calculated as below:
0.4 * Y * (28-21) + 0.6 * Y * (40-21) - 1,000,000 = 500,000 <=> 14.2Y - 1,000,000 = 500,000 <=> 14.2Y = 1,500,000 <=> Y = 105,634 units
So, it should make this garment if the company should be able to manufacture and sell 105,634 units per year.
____________ is not an important middleware standard. CORBA (Common Object Request Broker Architecture Distributed Computed Environment (DCE) Asynchronous Transfer Mode (ATM) Open Database Connectivity (ODBC) None of the above is an appropriate answer
Answer:
Asynchronous Transfer Mode (ATM)
Explanation:
A middleware is a software that connects the frontend (user interface) with the backend (software core). For example when a user makes a request for data it passes throught the middleware before it gets to the backend where databases are stored.
Asynchronous transfer module (ATM) is a transfer protocol for transferring packets of data. Has more to do with networking.
'Asynchronous Transfer Mode (ATM)' is not an important middleware standard. Rather, it's a data transmission protocol. Therefore, it does not belong to the same category as CORBA, DCE, and ODBC, which are key middleware standards.
Explanation:In the context of middleware standards, 'Asynchronous Transfer Mode (ATM)' is not regarded as an important middleware standard. Middleware allows applications to communicate with each other and work cohesively in an interconnected environment. Middleware standards like CORBA (Common Object Request Broker Architecture), DCE (Distributed Computed Environment), and ODBC (Open Database Connectivity) help in achieving this objective. However, 'Asynchronous Transfer Mode (ATM)' is actually a protocol used for data transmission and does not belong to the middleware category.
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Harlan Gravity Grips produces spike sets for track shoes. CEO Brittany Harlan has gathered the following information about the company’s sales volume and marketing cost for the past six months. Sales Volume Total Marketing Costs January 550,840 $82,788 February 390,728 $72,871 March 561,080 $83,092 April 543,000 $82,188 May 546,336 $82,492 June 552,544 $82,864 Collapse question part (a) Using the high-low method, compute the variable marketing cost per spike set. (Round unit cost to 2 decimal places, e.g. 12.50.) Variable marketing cost = $ per spike set sold
Answer:
0.06 per spike set sold
Explanation:
The computation of the variable marketing cost per spike set is shown below:
Variable cost per spike set = (High total marketing cost - low total marketing cost) ÷ (High sales volume - low sales volume )
= ($83,092 - $72,871) ÷ (561,080 - 390,728)
= $10,221 ÷ 170,352
= 0.06 per spike set sold
Hence, the variable marketing cost per spike set is $0.06
The incentives built into the market economy ensure that resources are put to good use and that opportunities to make people better off are not wasted.
This means that:
A) people usually are not selfish enough to exploit opportunities to make themselves better off.
B) markets move toward equilibrium.
C) resources should be used as efficiently as possible to achieve society's goals.
D) markets usually lead to efficiency.
Answer:
D) markets usually lead to efficiency.
Explanation:
The incentives built into the economy ensures that the efficiency is achieved in markets except in case of market failure.