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.
JORDAN: OK, I understand that, and I know the amount of principal invested today can be called the value of the investment, whereas the amount realized after the passage of t period of time is called its value. But what causes the present and future values to be different values?
Answer and explanation:
Present Value tells us how much a future sum of money is worth today given a specified rate of return. This is an important financial concept based on the principle that money received in the future is not worth as much as the equal sum received today.
For instance, if you invest $1,000 today, in three years it would be worth more than the original sum assuming a specified rate of return. Waiting three years to invest the money is three years of lost interest, making the future money worth less than today's $1,000.
The present and future values of money differ due to the time value of money, which is influenced by the potential to earn interest and inflation over time. Calculations involve discounting future sums to present value terms, accounting for interest and risk premium.
Explanation:The present and future values of money differ due to the time value of money, which is the principle that money available today is worth more than the same amount in the future because of its potential earning capacity. This intrinsic value can be earned through interest if the money is invested, yielding a higher future value. Conversely, money expected in the future needs to be discounted to reflect its lower present value.
The calculation of present value involves dividing the future amount of money by the factor (1 + r)^n, where 'r' is the interest rate and 'n' is the number of periods until the payment or investment matures. Factors like inflation and risk premium also influence the present and future values, reflecting the changing buying power of money over time and compensating for inherent risks.
For example, a sum of $500 received a year from now would be worth less today because it could otherwise be invested at a given interest rate, like 10%, to yield $550 after one year. This demonstrates why $500 next year is valued less at present: $500/(1+0.1) = $454.54.
National GeographicMagazine brought a bit of nature to New York as part of a week-long event promoting the magazine's October 2006 cover story on parks. The magazine hosted an interactive photography exhibit, which celebrated international and national parks. Invitations to representatives of the news media were an attempt to use which element of the promotional mix?
A. advertising
B. personal selling
C. public relations
D. sales promotion
E. distribution
The correct answer is C. public relations.
Explanation:The correct answer is C. public relations. By inviting representatives of the news media to the event, National Geographic Magazine was using public relations as an element of the promotional mix. Public relations involves building and maintaining relationships with the public, including the media, to enhance the organization's image and reputation. In this case, National Geographic Magazine used the event to promote their magazine and generate positive publicity.
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The National Geographic Magazine used option C) public relations element of the promotional mix through their interaction with news media to promote their park's cover story.
Explanation:The National Geographic Magazine, in sending invitations to representatives of the news media for an event promoting their parks cover story, was utilizing the option C) public relations element of the promotional mix. Public relations refers to activities aimed at promoting goodwill and a positive image between an organisation and its public. In this case, by inviting news media, the magazine likely sought positive coverage of their event, which serves to influence public opinion and create a favourable image.
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Interview Notes
• Sandra Clark is 45 years old.
• Sandra works as a clerk and earned $27,500 in 2019.
• Sandra's daughter, Debbie, is 26 years old and she is not disabled.
• Debbie lived with Sandra as a member of her household for all of 2019.
• Debbie works as a receptionist and earned $18,250 in 2019.
• Sandra purchased health insurance coverage for herself and Debbie on the same policy from the Marketplace for all of 2019.
• Sandra received Form 1095-A from the Marketplace showing that she and Debbie are both covered individuals for all of 2019.
Can Sandra claim Debbie as a qualifying relative on her 2019 return?
a. Yes, because Debbie lived with Sandra as a member of her household for all of 2019.
b. No, because Debbie had gross income of more than $4,200 during the tax year.
Explanation:
Important information to take into consideration to answer the question:
Sandra has taken health insurance during the year 2019
Sandra has covered both himself and Debbie
Considering the above information, Sandra can claim from insurance because Debbie lived with Sandra in 2019 ie. the year same as the year in which the policy has been taken. Debbie's gross salary is not a barrier for the given situation.
Option B stands false because gross income is considered as a barrier.
All of the following are characteristics of an effective design process except
a. increasing the design time for new products and services.
b. meeting customer requirements in the least costly manner.
c. matching product or service characteristics with customer requirements.
d. minimizing the number of revisions needed to make the design workable.
Answer:
The correct answer is letter "A": increasing the design time for new products and services.
Explanation:
Many steps can be taken to effectively design a product before its release. Those steps could imply studying the client in brief, make market research, brainstorming potential product ideas, sketching the most feasible, developing a concept, revision, and completion.
Increasing more time designing new products or services is counterproductive to finish the design product on time.
Characteristics of an effective design process include meeting customer demands cost-effectively, aligning product features with those demands, and minimizing necessary revisions, but not intentionally increasing the design time.
All of the following are characteristics of an effective design process except increasing the design time for new products and services. The elements that contribute to a successful design process include meeting customer requirements in a cost-effective manner, ensuring the product or service traits match customer expectations, and minimizing the revisions required to make a design practical and functional.
Efficient design processes are crucial for crafting products that satisfy the end-user's needs while also being economically viable for the company. These processes entail iterative testing, prototyping, and refinement steps that often lead to multiple versions before reaching the final product. However, an effective design process should not purposefully extend the design timeframe; instead, it should seek to be as timely and resource-efficient as possible, keeping in mind the constraints of budget and project deadlines. Notably, the engineering design process should be flexible and adaptable, subject to continuous improvement to meet the changing dynamics of both the market and project-specific objectives.
Hence, The characteristics of an effective design process except is Increasing the design time for new products and services are
The commercialization of the electric car was supported by the need for a vehicle that polluted less and ____ Select one: a. cost less b. did not rely on foreign oil c. supported wiFi d. were larger
Answer:
did not rely on foreign oil
Explanation:
An electric car is considered as the latest advancement in the field of the automobile industry. The main focus behind introducing the electric car is pollution and dependency on foreign oil.
Both the above factors are important for any developing country. The pollution is main cause of polluting the environment globally hence it is a vital need to introduce something that produce less pollution. As we know when the oil burns it releases the carbon monoxide in the atmosphere which is the main cause behind raising the average temperature of earth atmosphere
On the other side, we have a dependency on foreign oil. We know that the government pays a huge amount of money in purchasing oil from foreign land thus by introducing an electric car we can save this amount of money and can be used for a different purpose
Answer:
The correct answer is letter "B": did not rely on foreign oil.
Explanation:
Nowadays, electric cars are in the process of expansion, attempting to reach new markets where infrastructure is still in progress for the massive offerings. Most major carmakers are developing the manufacturing of electric cars as the result of avoiding dealing with changing prices in the foreign oil industry and because oil is a non-renewable natural resource, which implies it will be scarce in the future even if those days are not near yet.
Groupong Inc. recently paid a $2.78 annual dividend on its common stock. This dividend increases at 3.50 percent per year and the stock currently sells for $38.30 a share. What is the rate of return? A. 15 percent B. 17 percent C. 11 percent D. 13 percent
Answer:
c) 11%
Explanation:
The question is to determine the rate of return on Groupong Inc's
The rate of return represents an investment's net gain or net loss calculated over a period of time and usually expressed in terms of the percentage of the initial cost of investment.
The rate of return in this question is calculated as follows:
Rate of Return = (The Dividend for the next year/ the current price of the share) + The Growth rate
The dividend for the next year = current year dividend x (1+r), where r is 3.5
= 2.78 x (1+0.035)
=2.78 x 1.035
= (2.8773/38.3) + 0.035
=0.1101 or 11%
In 2011, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2012, the same firm produced 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronics
a. decresed by 4%
b.remained constant
c.increased by 8.33%
d.increase by 27.50%
Answer:
a. decreased by 4%
Explanation:
PRODUCTIVITY OF INDUSTRY IN 2011
= TOTAL OUTPUT PRODUCED/ TOTAL WORKING HOURS
PRODUCTIVITY OF INDUSTRY IN 2011 = 60,000/640
= 93.75%
PRODUCTIVITY OF INDUSTRY IN 2012
= TOTAL OUTPUT PRODUCED/ TOTAL WORKING HOURS
= 76,500/850
= 90%
Therefore, Productivity at Modern Electronics decreased by 4%
If employees are happy working in the traditional boss-hierarchical organization, why should a manager even consider changing to a team-based organization?
Answer and explanation:
Even if employees are happy in a boss-hierarchical organization implementing a team-based organization is helpful to improve employees' communication. Boss-hierarchical organizations tend to be bureaucratic and typically the voice of employees is not heard. Then, by adopting the team-based approach a greater number of workers can provide their points of view and help the business grow with their ideas.
A manager should consider moving from a hierarchical organization to a team-based organization as this generates greater autonomy and creativity in the processes.
What are the advantages of a horizontal organization?In a decentralized or horizontal organization, there is greater autonomy for employees, as there is less hierarchical rigidity and greater participation in decision-making, which increases communication and motivation at work.
Therefore, horizontal organizations contribute to increased satisfaction and productivity, in addition to ensuring greater flexibility and innovation.
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Partnership records show the following capital balances at the date of Hopkin's withdrawal: M. Hammel, $80,000; D. Hopkins, $210,000; and P. Houghton, $100,000. The three partners share income and loss equally. On December 31, after the death of Hopkins, the two remaining partners, Hammel and Houghton, and the estate of Hopkins agree that a payment of $200,000 will be made to settle the capital balance of Hopkins. Prepare the December 31 journal entry for the partnership.
Answer:
The Journal entry is as follows:
D. Hopkins, Capital A/c Dr. $210,000
To cash A/c $200,000
To M. Hammer's Capital A/c $5,000
To P. Houghton's capital A/c $5,000
(To record the amount of Hopkins Capital balance)
Workings:
Income = D. Hopkins, Capital - Cash payment after his death
= $210,000 - $200,000
= $10,000
$10,000 is divided equally among M. Hammer and P. Houghton.
The journal entry for Hopkins' withdrawal from the partnership would involve a debit of $210,000 to Hopkins' capital, credits of $200,000 to cash, and $5,000 each to Hammel's and Houghton's capital accounts to balance the difference.
Explanation:When a partner withdraws from a partnership, it is necessary to settle their capital account. In this case, D. Hopkins withdraws with a capital balance of $210,000. The partnership and Hopkins' estate have agreed on a withdrawal payment of $200,000. These transactions would result in the following journal entry:
Hopkins' Capital (Debit) $210,000Cash (Credit) $200,000Hammel's Capital (Credit) $5,000Houghton's Capital (Credit) $5,000The division of the remaining $10,000 ($210,000 - $200,000) between Hammel and Houghton is equitable because they share profits and losses equally. This means with Hopkins' exit, the $10,000 difference is divided between the two, resulting in a $5,000 credit each to Hammel's and Houghton's capital accounts.
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A yacht offered for sale is currently assessed at $350K but asked for $450K. The purchaser of the yacht believes that the yacht is worth $375K, but ultimately purchases the yacht for $400K.
The purchaser records the yacht at:
a. $45K
b. $450K
c. $400K
d. $350K
e. $375K
Answer:
c. $400K
Explanation:
Given that
Offered price for sale = $350K
Asked price = $450K
Worth of the yacht determined by the purchaser = $375K
The Purchase value of yacht = $400K
By considering the historical cost principle, the yacht should be recorded at the purchase price or acquired price or original price i.e $400K in the purchase records so that the reliability of the books could be maintained
According to Scott, the COO of Barcelona Restaurant Group, employees are given the opportunity and freedom to achieve organizational goals through a variety of different approaches, tasks, and decisions, based on the situation. This is most consistent with the a systems approach to management. b. contingency approach to management. c. classical perspective of management
Answer:
b. contingency approach to management.
Explanation:
The Contingency Approach to management tells us that there is no best style of management.
The Employees should in turn push to encourage to adopt situation specific management approach since It gives them an opportunity to explore new things and problem specific solutions.
The following transactions pertain to the operations of Blair Company for 2014:
1. Acquired $23,400 cash from the issue of common stock.
2. Performed services for $43,000 cash.
3. Paid a $27,200 cash advance for a one-year contract to rent equipment.
4. Recognized $32,200 of accrued salary expense.
5. Accepted a $1,600 cash advance for services to be performed in the future.
6. Provided $16,900 of services on account.
7. Incurred $7,350 of other operating expenses on account.
8. Collected $5,400 cash from accounts receivable.
9. Paid a $9,000 cash dividend to the stockholders.
10. Paid $18,000 cash on accounts payable.
a. Classify the cash flows from these transactions as :
Operating activities (OA),
Investing activities (IA), or
Financing activities (FA).
Use NA for transactions that do not affect the statement of cash flows.
b. Prepare a Statement of Cash flows.
(There is no beginning cash balance.) (Amounts to be deducted should be indicated with a minus sign.)
Answer:
The items of cash flows are classified as follows:
1. Acquired $23,400 cash from the issue of common stock. (FA)
2. Performed services for $43,000 cash. (OA)
3. Paid a $27,200 cash advance for a one-year contract to rent equipment. (OA)
4. Recognized $32,200 of accrued salary expense. (NA)
5. Accepted a $1,600 cash advance for services to be performed in the future. (OA)
6. Provided $16,900 of services on account. (NA)
7. Incurred $7,350 of other operating expenses on account. (NA)
8. Collected $5,400 cash from accounts receivable. (OA)
9. Paid a $9,000 cash dividend to the stockholders. (FA)
10. Paid $18,000 cash on accounts payable.(OA)
b.The increase in cash and cash equivalents in the year is $19200 as shown below
Explanation:
Blair Company Statement of Cash Flows:
$
Cash Sales 43000
Equipment rent -27200
Service Advance Cash 1600
Accounts receivable 5400
Accounts payable -18000
Cash flows from operating activities 4800
Financing activities
Common stock 23400
Dividends -9000
14400
19200
Which of the following scenarios describes an action that is not rational from an economic point of view? A. Eric buys a replacement ticket to the basketball game after he realizes that he accidentally left his original ticket at home. B. US Airways sells a last minute ticket to Don for $50 even though its average cost per passenger is $250. C. Emily chooses to attend a social event on Tuesday night instead of studying even though she has an important exam on Wednesday morning. D. After drinking one martini (shaken, not stirred), James buys and drinks a second martini even though the marginal benefit of the second martini is lower than the marginal benefit of the first. E. None of the above
Answer:
E. None of the above
Explanation:
The marginal benefit from the next unit decreases but the consumption goes on up to full satisfaction.
Eric wanted to watch the game and brought the replacement ticket is rational.
Emily choose to go to a social event is her rational choice
The last ticket has no marginal cost so the ticket selling below ATC is not the concern, profit is maximum at MR = MC and MC = 0 for the passenger at last minute.
None of the above statements describes the actions which could be regarded as rational from an economic point of view.
The rational economic view states that decision-making by customers is led by their rational choices granting them the highest utility. Thus, the statements given are not rational for economics as no event is causing any harm to economic welfare.
Thus, as per rationality in economics individuals are seen as making decisions in a certain manner, which is predictive that would be generating the greatest satisfaction to them.
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An investment pays you $30,000 at the end of this year, and $15,000 at the end of each of the four following years. What is the present value (PV) of this investment, given that the interest rate is 5% per year
The present value of the investment, given that the interest rate is 5% per year, is calculated by summing the present value of all future cash flows. In this example, the present value of the investment is approximately $79,230.
Explanation:The present value (PV) of an investment is calculated using the formula PV = CF / (1 + r)^n, where CF is the cash flow received at the end of each year, r is the interest rate, and n is the number of years. So for this problem, we have a cash flow of $30,000 at the end of this year and a cash flow of $15,000 at the end of each of the four following years with an interest rate of 5%.
The present value of the cash flows received can be calculated as follows:
For the $30,000 received at the end of this year, PV = $30,000 / (1 + 0.05)^1 = $28,571.43 For each $15,000 received at the end of each of the four following years, the present value is summed up as such:PV of year 2 = $15,000 / (1 + 0.05)^2 = $13,605.44PV of year 3 = $15,000 / (1 + 0.05)^3 = $12,957.56PV of year 4 = $15,000 / (1 + 0.05)^4 = $12,341.49PV of year 5 = $15,000 / (1 + 0.05)^5 = $11,753.80
To get the total present value of the investment, we add all the present values together: $28,571.43 + $13,605.44 + $12,957.56 + $12,341.49 + $11,753.80 = $79,229.72. So, the present value of this investment, given that the interest rate is 5% per year, is approximately $79,230.
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To find the present value of the investment with varying cash flows, use the formula for Present Value of an Annuity to discount each payment back to its present value. The total present value of the investment is $85,676.34.
The present value (PV) of the investment can be calculated by discounting each cash flow back to its present value using the formula for Present Value of an Annuity:
Calculate the PV of $30,000 to be received at the end of the year using the formula: PV = $30,000 / (1 + 0.05)¹ = $28,571.43
Calculate the PV of the annuity payment of $15,000 each year for 4 years using the formula for Present Value of an Annuity: PV = $15,000 ×[(1 - (1 + 0.05)⁻⁴) / 0.05] = $57,104.91
Sum up the PV of the two components to find the total present value of the investment: PV = $28,571.43 + $57,104.91 = $85,676.34
Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $ 42 comma 000 for the current period. Assuming a flat ordinary tax rate of 22 %, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $ 11 comma 500 in interest. b. The firm pays $ 11 comma 500 in preferred stock dividends.
Answer:
a. $23,790 ; $23,790
b. $42,000 ; 21,260
Explanation:
The computation is shown below:
a. For the first case
EBIT $42000
Less interest expense -$11,500
Earnings before taxes $30,500
Less: tax rate -$6,710 (22% of $30,500)
Earning after taxes $23,790
Less preferred dividend $0
Earnings available for common stockholders $23,790
b. For the second case
EBIT $42000
Less interest expense $0
Earnings before taxes $42,000
Less: tax rate -$9,240 (22% of $42,000)
Earning after taxes $32,760
Less preferred dividend $0-$11,500
Earnings available for common stockholders $21,260
Pele Arnaz is a plant foreman for a generator manufacturer. He spends his day carrying out operational plans for the ongoing daily activities of the plant. Arnaz is a ____ manager.A. functional
B. coordination
C. supervisory
D. middle
E. stratrgic
Answer:
The correct answer is letter "C": supervisory.
Explanation:
Supervisory management is the type of role executives play when there is little involvement with the direct activities of employees. These types of managers tend to be more worried about making plans to achieve the firm's goals. However, the executive still imposes regulations and enforces corporate norms when necessary.
Pele Arnaz is a supervisory manager, responsible for day-to-day task accomplishment and overseeing the daily activities of the plant he manages.
Pele Arnaz, as a plant foreman for a generator manufacturer who spends his day carrying out operational plans and managing daily activities of the plant, is best described as a supervisory manager. This type of manager falls into the category characterized by focusing on the day-to-day task accomplishment, maintaining establishment, and adhering to the rules and regulations. According to Hersey and Blanchard's situational-leadership model, Arnaz's role involves overseeing the day-to-day tasks of his subordinates, which aligns closely with the supervisory level of management within the organization.
Hence, Pele Arnaz, as a plant foreman for a generator manufacturer who spends his day carrying out operational plans and managing daily activities of the plant, is best described as a supervisory manager.
Suppose the own price elasticity of demand for good X is -3, its income elasticity is -3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 2. Determine how much the consumption of this good will change in percentage if:
a. The price of good X decreases by 7 percent.
b. The price of good Y increases by 9 percent.
c. Advertising decreases by 2 percent.
d. Income increases by 5 percent.
Answer:i dont know
Explanation:
On January 1, 2018, the company purchased equipment that cost $10,000. The equipment is expected to be worth about (or has a salvage value of) $1,000 at the end of its useful life in five years. The company uses straight-line depreciation. It has not recorded any adjustments relating to this equipment during 2018. Complete the necessary journal entry.
Answer:
The journal entries are as follows:
(i) On January 1, 2018
Equipment A/c Dr. $10,000
To cash A/c $10,000
(To record the purchase of equipment)
(ii) On December 31st,
Depreciation expense A/c Dr. $1,800
To Accumulated depreciation - equipment $1,800
(To record the accumulated depreciation on equipment for the year 2018 under the straight line method)
Workings:
Depreciation:
= (Cost of the equipment - Salvage value) ÷ Useful life
= ($10,000 - $1,000) ÷ 5
= $9,000 ÷ 5
= $1,800
Final answer:
To complete the journal entry for straight-line depreciation on equipment costing $10,000 with a salvage value of $1,000 over 5 years, you would debit Depreciation Expense and credit Accumulated Depreciation for $1,800.
Explanation:
The question involves calculating the straight-line depreciation expense for a piece of equipment based on its cost, salvage value, and useful life.
For the given equipment which cost $10,000 and has a salvage value of $1,000 after its 5-year useful life, the annual depreciation expense would be calculated as follows:
(Cost of the Equipment - Salvage Value) / Useful Life in Years = Annual Depreciation Expense
($10,000 - $1,000) / 5 years = $1,800 per year
The journal entry on December 31, 2018, to record the annual depreciation would be:
Debit Depreciation Expense: $1,800
Credit Accumulated Depreciation: $1,8000
This entry reduces the net book value of the equipment on the balance sheet and recognizes the expense on the income statement.
Why did the Thibodaux workers go on strike? Was the strike successful? What accounts for its success or lack of success
Answer:
Thibodaux workers went on strike to protest against sugar cane plantations in four parishes which are Lafourche, Terrebonne, St. Mary, and Assumption.
No, the strike was not successful.
The unscheduled return to work by some workers before the end of the strike, makes it unsuccessful. The aftermath of the strike resulted to violence leading to death of many black workers and their families, as well injuries to many others.
Santa Fe Company was started on January 1, Year 1, when it acquired $9,800 cash by issuing common stock. During Year 1, the company earned cash revenues of $6,200, paid cash expenses of $3,650, and paid a cash dividend of $1,200. Based on this information, which is true?
a) The 2016 statement of cash flows would show net cash inflow from operating activities of $2,450.
b) The 2016 income statement would show net income of $1,300.
c) The 2016 statement of cash flows would show a net cash flow from financing activities of $9,700.
d) The December 31, 2016 balance sheet would show total equity of $15,750.
Answer:
The 2016 statement of cash flows would show net cash flow from financing activities if $8,600.
Explanation:
The operating activities cash flows is determined by Revenue - Cash expenses.
Operating activities = $6200 - $3650 = 2550.
The dividend paid by the company is considered as Financing activity. The financing activity will include common stock minus dividend paid. Net cash flows from Financing activity = $9800 - $1200 = $8600.
A year ago, you invested $2,500 in a savings account that pays an annual interest rate of 2.5%. What is your approximate annual real rate of return if the rate of inflation was 3.4% over the year?
Answer:
The answer is -0.8704%= -0.9%
Explanation:
A real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external factors.
Real rate of return=[ (1+nominal rate) / (1+ inflation rate) - 1]
Real rate of return = (1.025/1.034) -1= -0.0087* 100= -0.087%
Final answer:
The approximate annual real rate of return on the $2,500 investment, with a nominal interest rate of 2.5% and an inflation rate of 3.4%, is -0.9%, indicating a decrease in value when considering inflation.
Explanation:
To calculate the approximate annual real rate of return on an investment when there is inflation, you subtract the inflation rate from the nominal interest rate earned on the investment. In this case, you invested $2,500 at an interest rate of 2.5%, and the inflation rate was 3.4% over the year. Therefore, the real rate of return would be calculated as follows:
Nominal interest rate - Inflation rate = Real rate of return
2.5% - 3.4% = -0.9%
Your real rate of return is approximately -0.9%, meaning your investment lost value when adjusted for inflation.
Landon Corporation was organized on January 2, 2014, with the investment of $120,000 by each of its two stockholders. Net income for its first year of business was $96,560. Net income increased during 2015 to $140,980 and to $164,950 during 2016. Landon paid $23,000 in dividends to each of the two stockholders in each of the three years.
Required:
Prepare a statement of retained earnings for the year ended December 31,2016
Answer:
Landon Corporation
Statement of retained earnings
for the year ended December 31,2016
$
Retained Earning on January 1,2016 = 145,540
Add : Net Income / Less Net loss = 164,950
Less: Dividend = 46,000
Retained earning at December 31,2016 = 264,490
Working:
Retained Earning on January 1,2014 = $0
Add : Net Income / Less Net loss = $96,560
Less Dividend = $46,000
Retained earning at December 31,2014 = $50,560
Retained Earning on January 1,2015 = $50,560
Add : Net Income / Less Net loss = $140,980
Less Dividend = $46,000
Retained earning at December 31,2015 = $145,540
To prepare the statement of retained earnings for Landon Corporation for the year ended December 31, 2016, start with the beginning balance of retained earnings, add the net income for the year, and subtract the dividends paid out.
The statement of retained earnings shows the changes in the retained earnings account over a specified period of time. To prepare the statement of retained earnings for Landon Corporation for the year ended December 31, 2016, we need to start with the beginning balance of retained earnings.
In this case, the beginning balance would be $120,000 + $96,560 - $23,000 - $23,000 - $23,000. Then, we add the net income for 2016, which is $164,950. Finally, we subtract the dividends paid out in 2016, which is $23,000 + $23,000.
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As a result of increased tensions in the Middle East, oil production is down by 1.21 million barrels per day – a 5 percent reduction in the world's supply of crude oil. Explain the likely impact of this event on the market for gasoline and the market for small cars.The gasoline market will have:A. higher equilibrium prices and higher equilibrium quantity.B. lower equilibrium prices and higher equilibrium quantity.C. lower equilibrium prices and lower equilibrium quantity.D. higher equilibrium prices and lower equilibrium quantity.The small car market will have:A. higher equilibrium prices and lower equilibrium quantity.B. higher equilibrium prices and higher equilibrium quantity.C. lower equilibrium prices and higher equilibrium quantity.D. lower equilibrium prices and lower equilibrium quantity.
Answer:
Gasoline market
D. higher equilibrium prices and lower equilibrium quantity
Car market
A. higher equilibrium prices and lower equilibrium quantity
Explanation:
As the demand supplies decreases, the equilibrium quantity will decrease while the price increase Assuming everything else remains constant.
The car market from which gasoline plays a lead cost of the automobile industry will also suffer a decrease in the supply as higher input cost makes the price go up.
Higher input cost makes supply decrease as well.
Also the demand for car will decreaase as the maintenance cost associate with a car may decrease the demand
This will defenetively decrease the quatity and make the price go up.
Increased tensions in the Middle East resulting in a 5 percent reduction in the world's supply of crude oil would likely lead to higher equilibrium prices and lower equilibrium quantity in the gasoline market, and lower equilibrium prices and higher equilibrium quantity in the small car market.
Explanation:The likely impact of a 5 percent reduction in the world's supply of crude oil due to increased tensions in the Middle East would result in higher equilibrium prices and lower equilibrium quantity in the gasoline market. This is because a decrease in oil production would lead to a decrease in gasoline supply, which in turn would increase the price of gasoline.
In the small car market, the impact would result in lower equilibrium prices and higher equilibrium quantity. This is because with higher gasoline prices, consumers would likely shift towards smaller, more fuel-efficient cars, increasing the demand for small cars and decreasing their prices.
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In January 2017, Expo Mining Company paid $4,400,000 to buy a new mine. Expo estimates it will be able to remove 4,000,000 tons of ore from the mine. It also estimates that the property will be worth $300,000 after the ore has been extracted. Expo incurred a total of $900,000 in development costs when preparing the mine for production. In the mine’s first year of operation (2017), Expo removed 500,000 tons of ore and was able to sell 475,000 tons. Given this information, Expo should record total 2017 depletion cost of A : $593,750 B : $662,500 C : $625,000 D : $629,375
Answer:
correct option is C : $625,000
Explanation:
given data
paid = $4,400,000
total explore = 4,000,000 tons
salvage = $300,000
incurred a total = $900,000
explore = 500,000 tons
sell = 475,000 tons
solution
we get here cost incurred for asset use is capitalized is
so depletion expose is
depletion expose = [tex]\frac{cost-salvage}{total\ tons\ explored}[/tex] × explored .................1
put here value we get
depletion expose = [tex]\frac{4400000+900000-300000}{4000000}[/tex] × 500000
depletion expose = $625000
so correct option is C : $625,000
Expo should record a total 2017 depletion cost of $593,750.
Explanation:To calculate the depletion cost, we first need to determine the depletion rate per ton of ore. The depletion rate is the cost of the mine divided by the estimated tons of ore. In this case, the depletion rate is $4,400,000 / 4,000,000 tons = $1.10 per ton.
Next, we calculate the depletion cost for the ore that was removed and sold in 2017. Since 475,000 tons were sold at a depletion rate of $1.10 per ton, the depletion cost for the sold ore is 475,000 tons x $1.10/ton = $522,500.
Therefore, the total 2017 depletion cost is $522,500. Therefore, the correct answer is A: $593,750.
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Order winners and qualifiers: A. only apply to quasi-manufacturing firms B. remain constant over time C. are consistent between manufacturing and service organizations D. only matter when responding to formal competitive bid requests E. change over time
Answer:
The correct answer is letter "E": change over time.
Explanation:
Qualifiers are those minimal characteristics a good or service must have so customers could consider purchasing them. Once the customer is interested in a product and decides to choose to purchase it over its competitors, the good becomes an order winner.
Both qualifiers and order winners tend to change over time with changes in the market which leads to changes in consumer preferences and behavior.
Identify whether each of the following transactions will take place in an input market or in an output market, and whether firms or households are demanding the good or service or supplying the good service a. Anderson works 37 hours each week as a clerk at the county courthouse. b. Mei Lin purchases a 3-week Mediterranean cruise vacation for her parents. c. Caterpillar doubles employment at its Huntsville, Alabama factory. d. The Greyson family sells their 250-acre ranch to Marriott so it can build a new resort and golf course.
Answer:
The correct answers are explained below.
Explanation:
In the case of A, the household is providing the service and the transactions is taking place in an input market due to the fact that the service given by the particular person is used inside the court to provide a complete service to the community.
In the case of B, the firm is providing the service that is being demanded by the household and the transactions is taking place in an output market due to the fact that the complete service is already being purchased and demanded.
In the case of C, the household is providing the service and the firm is demanding the service of labor force and the transaction is taking place in an input market due to the fact that the firm needs the labor force to produce a new product to deliver to the output market as a finished product.
In the case of D, the household is providing the good and the firm is demanding the good and the transactions is taking place in an input market due to the fact that the firm is buying the good in order to establish a new building that will provide a finishied service to the customers in the future.
In the provided scenarios, when individuals are providing their labor or properties for firms to produce goods or services, like Anderson's job or the Greyson's property sale, these transactions are taking place in the input market. When an individual is acquiring a good or service from a firm, like Mei Lin's cruise purchase, this transaction is occurring in the output market.
Explanation:a. Anderson works 37 hours each week as a clerk at the county courthouse. This transaction takes place in the input market, where labor (Anderson's work hours) is being supplied by a household member (Anderson) to a firm (the county courthouse).
b. Mei Lin purchases a 3-week Mediterranean cruise vacation for her parents. This transaction occurs in the output market, where goods and services (the cruise) are being demanded by households (Mei Lin).
c. Caterpillar doubles employment at its Huntsville, Alabama factory. This is an example of an interaction in the input market, as the firm (Caterpillar) is demanding labor for its factory.
d. The Greyson family sells their 250-acre ranch to Marriott so it can build a new resort and golf course. This transaction occurs in the input market as a real estate (input) is being supplied by households (The Greyson family) to a firm (Marriott).
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Which of the following sequences represents the normal flow of accounting data from the journal to the ledger? Question 6 options: a) Transactions occur, Source documents are prepared, Transaction analysis, Transaction is journalized and posted b) Source documents are prepared, Transaction analysis, Transaction is journalized and posted, Transactions occur c) Transaction analysis, Transaction is journalized and posted, Transactions occur, Source documents are prepared d) Transactions occur, Transaction analysis, Transaction is journalized and posted, Source documents are prepared
Answer:
a) Transactions occur, Source documents are prepared, Transaction analysis, Transaction is journalized and posted
Explanation:
We should consider that the client comes first in a business model.
Thus, we need somethign torecord first. so the first event is the transactions.
Then the customer will require a doccument to back it up. We cannot delay their request and tell them to wait until we analyze the transaction or do the journal entry. We give the receipt to the customer.
Now, the last two are more easy in order to know how to journalize we must analysis the transactions.
This tought makes option A the correct one.
The normal flow of accounting data from the journal to the ledger sequence is: transactions occur, source documents are prepared, transaction analysis, then the transaction is journalized and posted.
Explanation:The correct sequence for the normal flow of accounting data from the journal to the ledger is option a) Transactions occur, Source documents are prepared, Transaction analysis, Transaction is journalized and posted. This sequence starts with the transaction event. Next, source documents are generated such as receipts and invoices.
The third step is Transaction analysis, which involves deciphering the impact of the transaction on the company's accounts. In the final step, the Transaction is journalized, or recorded in the company's journal, and then posted to various ledgers accordingly.
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Equity Information 50 million shares; $80 per share; Beta-:1.15; Market risk premium 9% Risk-free rate 5% Debt Information $1 billion in outstanding debt (face value); Current quote 110 Coupon rate 9%, semiannual coupons; 15 years to maturity; Tax rate: 40% 1.What is the cost of equity? 2.What is the cost of debt? 3.What is the after-tax cost of debt? 4.What are the capital structure weights? 5.What is the WACC?
Answer:
Ke = 15.35%
cost of debt: pretax 7.84%
after tax rate of 40% = 4.704%
Equity weight = 0.784313725
Debt Weight = 0.215686275
WACC 13.05380%
Explanation:
With the CAPM we solve for the cost of equity:
[tex]Ke= r_f + \beta (r_m-r_f)[/tex]
risk free = 0.05
premium market = (market rate - risk free) 0.09
beta(non diversifiable risk) = 1.15
[tex]Ke= 0.05 + 1.15 (0.09)[/tex]
Ke 0.15350
The cost of debt will be detrmiante by solve for the rate which makes the debt worth 110 of their value
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 4.50 (100 x 9% / 2 payment per year)
time 30 ( 15 years x 2)
rate 0.039268264
[tex]4.5 \times \frac{1-(1+0.039268)^{-30}}{0.039268} = PV\\[/tex]
PV $78.5102
110.00
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 100.00
time 30.00
rate 0.03927
[tex]\frac{100}{(1 + 0.039268)^{30} } = PV[/tex]
PV 31.4898
PV c $78.5102
PV m $31.4898
Total $110.0000
(the debt is quoted 110 so we need to solve for that amount)
we get 0.0392 semiannual rate using excel we multiply by 2 to get the annual costof debt:
0.0392 x 2 = 0,0784
after tax:
0.0784 x (1 - 0.4) =0.04704
the weights are calcualte with the market values
D 1,100,000,000 (1 billon x 110/100)
E 4,000,000,000 (50,000,000 x $80)
V 5,100,000,000
Now, we plug all the data and sovle for the WACC
[tex]WACC = 0.1535(0.784313725490196) + 0.0784(1-0.4)(0.215686274509804)[/tex]
WACC 13.05380%
By referring to the attorney by his title but calling other employees by their first names, the law firm is transmitting their organizational culture through _______.
A.material symbols
B.artifacts
C.rituals
D.language
E.legends
The law firm is transmitting their organizational culture by differentiating how it addresses the attorney and other employees, this is done through the use of language.
Explanation:By referring to the attorney by his title but calling other employees by their first names, the law firm is transmitting its organizational culture through language. This use of language is a clear example of how an organization communicates its hierarchical structure, esteem for roles, and expectations for professionalism. Just like rituals, artifacts, or symbols, language is a key component that helps shape and convey an organization's culture to its members and those interacting with it. Therefore, it is highly important to use language appropriately in an organizational context.
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The law firm is transmitting their organizational culture through the use of language, which reflects their values and beliefs.
By referring to the attorney by his title but calling other employees by their first names, the law firm is transmitting their organizational culture through language. This aspect of communication is a way culture manifests itself within an organization. Language, part of nonmaterial culture, includes the values, beliefs, symbols, and language that define a society. Given the context described, using titles for certain employees can convey values such as respect for hierarchy, formality, or professionalism, while first names suggest a more casual or personable approach to others. These practices contribute to the cultural makeup and social environment of the firm.
Industries’ capital structure features 63 percent equity, 7 percent preferred stock, and 30 percent debt. If the before-tax component costs of equity, preferred stock, and debt are 11.60 percent, 9.5 percent, and 9 percent, respectively, what is MNINK’s WACC if the firm faces an average tax rate of 21 percent and can make full use of the interest tax shield?
Answer:
16.091%
Explanation:
The computation of the WACC is shown below:
= (Weightage of debt × cost of debt) × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of common stock) × (cost of common stock)
= (0.3 × 9%) × ( 1 - 21%) + (0.07 × 9.5%) + (0.63 × 11.60%)
= 2.133% + 6.65% + 7.308%
= 16.091%
Basically we multiplied the weightage with its cost