Final answer:
The debt and coverage ratios, as well as the profitability ratios, were calculated and compared between Pelican Paper, Inc. and Timberland Forest, Inc. Timberland Forest has a higher debt ratio and times interest earned ratio, indicating higher financial risk but also a greater ability to cover interest costs. Timberland Forest also has higher profitability, as evidenced by its higher operating profit margin, net profit margin, return on total assets, and return on common equity.
Explanation:
Debt ratio: The debt ratio is calculated by dividing total debt by total assets. For Pelican Paper, Inc., the debt ratio is 50% (500,000/1,000,000), while for Timberland Forest, Inc., the debt ratio is 70% (3,500,000/5,000,000). This means that Timberland Forest has a higher debt ratio, indicating higher financial risk.
Times interest earned ratio: The times interest earned ratio is calculated by dividing earnings before interest and taxes (EBIT) by interest expense. For Pelican Paper, Inc., the times interest earned ratio is 5 (50,000/10,000), while for Timberland Forest, Inc., the times interest earned ratio is 6 (600,000/100,000). This means that Timberland Forest has a higher times interest earned ratio, indicating a greater ability to cover interest costs.
Operating profit margin: The operating profit margin is calculated by dividing operating income by net sales. For Pelican Paper, Inc., the operating profit margin is 15% (150,000/1,000,000), while for Timberland Forest, Inc., the operating profit margin is 18% (900,000/5,000,000). This means that Timberland Forest has a higher operating profit margin, indicating greater profitability.
Net profit margin: The net profit margin is calculated by dividing net income by net sales. For Pelican Paper, Inc., the net profit margin is 10% (100,000/1,000,000), while for Timberland Forest, Inc., the net profit margin is 14% (700,000/5,000,000). This means that Timberland Forest has a higher net profit margin, further indicating greater profitability.
Return on total assets: The return on total assets is calculated by dividing net income by total assets. For Pelican Paper, Inc., the return on total assets is 10% (100,000/1,000,000), while for Timberland Forest, Inc., the return on total assets is 14% (700,000/5,000,000). This means that Timberland Forest has a higher return on total assets, indicating better utilization of assets to generate profits.
Return on common equity: The return on common equity is calculated by dividing net income attributable to common equity by common equity. For Pelican Paper, Inc., the return on common equity is 20% (100,000/500,000), while for Timberland Forest, Inc., the return on common equity is 35% (700,000/2,000,000). This means that Timberland Forest has a higher return on common equity, demonstrating higher profitability for its common shareholders.
Timberland Forest's larger debt has made it more profitable than Pelican Paper because higher financial leverage can amplify returns when a company is performing well. However, there are risks that Timberland's investors undertake when purchasing its stock instead of Pelican's, such as the possibility of higher financial risk due to the higher debt ratio and the potential for higher interest costs.
Suppose that the price of wheat is above its equilibrium price. You would expect to see __________- A) an increase in quantity demanded because of the high price. B) a leftward shift of the demand curve because of the high price. C) sellers begin to lower their prices because of the surplus of wheat.D) a shortage on the market that causes prices to increase further
Answer:
The correct answer is letter "B": a leftward shift of the demand curve because of the high price.
Explanation:
The equilibrium price represents the point at which buyers' demand and sellers supply face each other because both parties' needs are satisfied. If the price of a given product is higher than the equilibrium level, the quantity demanded is likely to decrease which directly implies a leftward move in the demand curve.
Suppose the price of widgets rises from $5 to $7 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it Elastic, Inelastic, or Unitary Elastic? Why? Please show your work.
Answer:
1
Unitary elastic
Elasticity of demand is unitary elastic because the absolute value of elasticity is equal to 1.
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Elasticity of demand = percentage change in quantity demanded / percentage change in price
Percentage change in quantity demanded = (25 - 15) / 25 = 0.4 × 100 = 40%
Percentage change in price = ($5 - $7) / $5 = 0.4 × 100 = 40%
Elasticity of demand = 40% / 40% = 1
If coefficient of elasticity is equal to 1, demand is unit elastic. It means that a change in price has an equal efect on the quantity demanded. Quantity demanded has an equal and proportional change to changes in price.
I hope my answer helps you
The price elasticity of demand is calculated to be 1, indicating unitary elasticity. This means a percentage change in price leads to an equal percentage change in quantity demanded, which implies widgets have a proportional responsiveness to price changes.
Explanation:The price elasticity of demand for widgets can be calculated using the formula: PED = (% Change in Quantity Demanded) / (% Change in Price)
To determine the percentage change in quantity demanded, subtract the new quantity (15 widgets) from the original quantity (25 widgets), divide by the original quantity, and multiply by 100. The calculation is: [(15 - 25) / 25] * 100 = -40%
The percentage change in price is calculated as: [(7 - 5) / 5] * 100 = 40%
Substituting these values into the formula gives: PED = (-40%) / (40%) = -1. Because we usually report price elasticity of demand as absolute values, we interpret it as 1 in absolute value terms.
Since the price elasticity of demand is 1, it indicates a unitary elasticity. This implies that a 1% change in price induces a proportionate 1% change in quantity demanded. So, as price increased, customers decreased their purchase of widgets proportionately.
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Brock Company makes candy. During the most recent accounting period Brock paid $3,000 for raw materials, $4,000 for labor, and $2,000 for overhead costs that were incurred to make candy. Brock started and completed 10,000 units of candy of which 8,000 were sold. Based on this information the balance in the inventory account on Brock’s balance sheet would be
A. $1,800.
B. $2,000.
C. $9,000.
D. None of the above.
Answer:
A. $ 1.800
Explanation:
The total manufacturing costs for the period are:
Raw materials $ 3,000
Labor $ 4.000
Overhead costs $ 2,000
Total cost of goods manufactured $ 9,000
Units started and completed 10,000
Cost per unit $ 9,000 / 10,000 units $ 0.90 per unit
Units inventory at end of period 2,000
Inventory value at period end $ 0.90 * 2,000 = $ 1,800
You receive $1,200 today, $2,200 in one year, and $3,300 in two years. If you deposit these cash flows in an account earning 12%, how much money is in the account three years from now?
Answer:
The amount of money that is in the account three years from now is $8,142.
Explanation:
Future Value of $1200
FV = PV (1 + r )n
= 1200*(1 + 12%)^3
= $1685.91
Future Value of $2200
FV = PV (1 + r )n
= 2200*(1 + 12%)^2
= $2759.68
Future Value of $3300
FV = PV (1 + r )n
= 3300*(1 + 12%)^1
= $3696.00
Total Future Value = $1685.91 + $2759.68 + $3696.00
= $8142
Therefore, The amount of money that is in the account three years from now is $8,142.
By accumulating each cash flow separately over its respective period at a 12% interest rate and summing the future values, we determine that approximately $8,148.06 will be in the account three years from now.
To calculate the future value of cash flows deposited in a bank account earning 12% interest, we need to accumulate each cash flow to the end of the three-year period. The cash flow received today, $1,200, earns interest for three years. The cash flow received in one year, $2,200, earns interest for two years. Finally, the cash flow received in two years, $3,300, earns interest for one year.
The future value (FV) is found using the formula FV = PV(1 + r)ⁿ, where PV is the present value, r is the interest rate per period, and n is the number of periods. Following this formula, the future values of the cash flows are:
$1,200 imes (1 + 0.12)³
$2,200 imes (1 + 0.12)²
$3,300 imes (1 + 0.12)¹
Summing these future values will give us the total amount in the account three years from now:
$1,200 × (1.12)³
= $1,689.18 (approx.)
$2,200 × (1.12)²
= $2,762.88 (approx.)
$3,300 × (1.12)¹
= $3,696.00 (approx.)
Adding these figures gives us:
$1,689.18 + $2,762.88 + $3,696.00
= $8,148.06 (approx.)
Therefore, three years from now, there will be approximately $8,148.06 in the account.
Brief Exercise 4-10 The balance sheet debit column of the worksheet for Jolie Company includes the following accounts: Accounts Receivable $12,500, Prepaid Insurance $4,500, Cash $4,100, Supplies $5,200, and Debt Investments (short-term) $7,600. Prepare the current assets section of the balance sheet, listing the accounts in proper sequence. (List Current Assets in order of liquidity.)
The order of current assets based on liquidity, starting from the most liquid, is Cash, Accounts Receivable, Supplies, Prepaid Insurance, and short-term Debt Investments.
Explanation:In this context, the order of liquidity is the sequence in which assets would be converted into cash. This implies that cash, being the most liquid asset, would be listed first followed by Accounts Receivable, then Supplies, Prepaid Insurance and finally short-term Debt Investments.
Current Assets
Cash $4,100Accounts Receivable $12,500Supplies $5,200Prepaid Insurance $4,500Debt Investments (short-term) $7,600Learn more about Current Assets here:https://brainly.com/question/34936344
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A company reports the following information as of December 31st:
Sales revenue $ 350,000
Cost of goods sold $ 150,000
Operating expenses $ 110,000
Foreign currency translation gain $ 25,000
1. Ignoring income taxes, what amount should the company report as net income as of December 31st?
Answer:
The company will report $115,000
Explanation:
Giving the following information:
Sales revenue= 350,000
Cost of goods sold= (150,000)
Gross profit= 200,000
Operating expenses= (110,000)
Net operating income= 90,000
Foreign currency translation gain= 25,000
Net income= 115,000
The company will report $115,000
"Consider the market for the Nissan Xterra. Suppose the price of metal, which is an input in automobile production, decreases. When the price of an input changes, this results in a __________ the supply curve
Answer:
Rightward Shift in
Explanation:
Price of inputs is one of the factors affecting the supply.
When price of inputs decrease, the production of that good increases as a consequence, thereby increasing the supply, despite price of the good remaining same.
A shift in a supply curve occurs when factors other than price change. For instance, tastes and preferences, price of complementary goods, income of the consumer, price of inputs, etc.
In the given case, price of metal relates to a factor other than price i.e price of an input. When price of input reduces, it results into a rightward shift in the supply curve. Also referred to as an "increase in supply".
Derek will deposit $3,382.00 per year for 12.00 years into an account that earns 15.00%, The first deposit is made next year. He has $12,548.00 in his account today. How much will be in the account 37.00 years from today?
Answer:
Total sum in the account= $5,438,822.55
Explanation:
Future Value of a single sum
The amount of $12,548 already in the account will earn interest for 37 years at the same rate of 15% compounded yearly. The amount this will accrue to is called the Future value of a lump sum. This can be worked as thus:
FV = PV × (1+r)^(n)
FV = 12,548 × (1.15)^(37)
= $12,548 × 176.124
= $2,210,011.85
Future Value of an annuity
The series of $3,382 to be invested per year to earn an interest of 12% per year for 12 years is called the annuity. The worth of this investment at the end of the 12th year is called the Future value of annuity. It can worked as out as follows:
FV = A ×((1+r)^n - 1)/r
= 3,382 ×( (1.15)^(12) - 1)/0.15)
= 3,382 × 29.0016
= $98,083.64
From the 12th year to 37th year is another 25 years. So the $98,083.64 would be treated as another lump sum invested. So we work out its future value as follows:
FV = 98,083.64 × (1.15)^(25)
= 98,083.64 × 32.9189
=$ 3,228,810.70
Total sum in the account at the end of the 37th year :
= $2,210,011.85 + $ 3,228,810.70
= $5,438,822.55
Economists tend to see ticket scalping asA. an unproductive activity which should be made illegal everywhere.B. a way for a few to profit without producing anything of value.C. a way of increasing the efficiency of ticket distribution.D. an inequitable interference in the orderly process of ticket distribution.
Answer:
C. A way of increasing the efficiency of ticket distributionExplanation:
Ticket Scalpers are the ticket speculators who buy the tickets to a sport or performance event and resells them at higher prices. Lassiez-faire economists consider it to be a good thing. the correct value of the ticker is decided by the market but the Scalpers are flexible in pricing than the venue, they may also bear a loss while still guaranteeing the full value that venue gets. But the problem with the scalping is the at the value goes to the agents instead of the venue that is providing the product.
Economists often view ticket scalping as a way of increasing the efficiency of ticket distribution according to the principle of economic efficiency. However, this perspective doesn't consider factors like equity, and possible unwanted outcomes of markets.
Explanation:Economists tend to view ticket scalping as a means of increasing the efficiency of ticket distribution. This perception is based on the workings of the demand and supply diagram, which underscores the principle of economic efficiency. This principle maintains that a situation is efficient if it is not possible to improve the circumstances of one individual or party without imposing a cost on another.
In that light, ticket scalping, which allows for the redistribution of tickets at different prices, could potentially lead to a more efficient distribution, where tickets end up with those consumers who value them most and are willing to pay for that value.
However, it's worth noting that this perspective does not take into account factors such as equity or fairness, nor does it account for situations where markets may produce unwanted outcomes, such as when they lead to severe income inequality.
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Suppose the following bond quotes for IOU Corporation appear in the financial page of today’s newspaper. Assume the bond has semiannual payments, a face value of $2,000 and the current date is April 19, 2018. Company (Ticker) Coupon Maturity Last Price Last Yield EST Vol (000s) IOU (IOU) 5.7 Apr 19, 2034 108.96 ?? 1,827 a. What is the yield to maturity of the bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the current yield?
Answer:
a. 4.89%
b. 5.23%
Explanation:
We use the rate formula which is shown in the attached spreadsheet
Given that,
Present value = $2,000 × 108.96% = $2,179.20
Future value or Face value = $2,000
PMT = $2,000 × 5.7% ÷ 2 = $57
NPER = 16 years × 2 = 32 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
a. The yield to maturity of the bond is 4.89%
b. The current yield would be
= 57 × 2 ÷ $2,179.20
= 5.23%
a) When The yield to maturity of the bond is= 4.89%
b) After that The current yield is = 5.23%
Calculation of Maturity of the bondNow We are using the rate formula are:
Given that as per question:
Now The Present value is = $2,000 × 108.96% = $2,179.20
Then The Future value or Face value is = $2,000
Then PMT is = $2,000 × 5.7% ÷ 2 = $57
Now NPER is = 16 years × 2 = 32 years
Then The formula is shown below:
That is, = Rate(NPER;PMT;-PV;FV;type)
Then The present value come in negative
a. Hence, The yield to maturity of the bond is 4.89%
b. Thus, The current yield would be
= 57 × 2 ÷ $2,179.20
= 5.23%
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The following selected information pertains to Wilson Company. Current liabilities: $100; long-term liabilities: $150; contributed capital: $120; retained earnings: $50; accumulated other comprehensive income: $20. The company's debt to equity ratio
Answer:
The company's debt to equity ratio is 1.32
Explanation:
Wilson Company has following
Total Debt = Current liabilities + long-term liabilities
Total Debt = 100 + 150 = $250
Total Capital = Contributed capital + Retained earnings + Accumulated other comprehensive income
Total Capital = 120 + 50 + 20 = 190
Debt to equity Ratio = Total Debt / Shareholders Equity
Debt to equity Ratio = 250 / 190
Debt to equity Ratio = 25 / 19
Debt to equity Ratio = 1.32
Final answer:
The calculation of the debt to equity ratio for Wilson Company is 1.32, meaning that for every dollar of equity the company has $1.32 in debt.
Explanation:
The question asks to calculate the debt to equity ratio for Wilson Company based on the provided financial data. To compute the debt to equity ratio, we sum the company's current and long-term liabilities and then divide that sum by the total equity. In this case, the equity is the sum of contributed capital, retained earnings, and accumulated other comprehensive income.
The calculation would be as follows:
(Current Liabilities + Long-term Liabilities) / (Contributed Capital + Retained Earnings + Accumulated Other Comprehensive Income)
($100 + $150) / ($120 + $50 + $20) = $250 / $190 = 1.32 approximately.
Therefore, the debt to equity ratio for Wilson Company is 1.32. This means that for every dollar of equity, the company has $1.32 in debt.
A comparable property price is adjusted to $315,500 from the original selling price of $345,000. What percentage is the adjusted price compared to the original selling price?
Answer:
91.45%
Explanation:
The percentage of the adjusted price compared to the original selling price is determined by dividing the adjusted price by the original price. Since the original price was $345,000 and the adjusted price is $315,500:
[tex]P=\frac{315,500}{345,000}=0.9145 =91.45\%[/tex]
The adjusted price is 91.45% of the original selling price
The December 31, 2020, Allowance account balance includes $3,076 for a past due account that is not likely to be collected. This account has not been written off. (1) If it had been written off, will there be any effect of the write-off on the working capital at December 31, 2020?
Answer:
There will be no effect on working capital upon write off as the entries required would be a credit to receivables and a debit to allowance account.
Explanation:
The allowance account is the account used to record receivables due that may not be collectible.
When a company has determined that a receivable may be uncollectible, the company credits the allowance for receivables account and debits bad debit expense. This reduces the accounts receivable balance in the balance sheet as the receivables to be reported will be net the allowance given. As such, where on December 31, 2020, Allowance account balance includes $3,076 for a past due account that is not likely to be collected.
There will be no effect on working capital upon write off as the entries required would be a credit to receivables and a debit to allowance account.
Prepare income statements (Learning Objective 5)
Part One: In 2012, Penny Henderson opened Penny’s Posies, a small retail shop selling oral arrangements. On December
31, 2013, her accounting records show the following:
Sales revenue ................................................................................................... $53,000
Utilities for shop ............................................................................................... $ 1,400
Inventory on December 31, 2013 .................................................................... $ 9,600
Inventory on January 1, 2013 ........................................................................... $12,700
Rent for shop .................................................................................................... $ 4,600
Sales commissions ............................................................................................ $ 4,900
Purchases of merchandise ................................................................................ $37,000
Requirement
Prepare an income statement for Penny’s Posies, a merchandiser, for the year ended December 31, 2013.
Part Two: Penny’s Posies was so successful that Penny decided to manufacture her own brand of oral supplies: Floral
Manufacturing. At the end of December 2014, her accounting records show the following:
Utilities for plant ......................................................................................... $ 4,300
Delivery expense ........................................................................................ $ 2,500
Sales salaries expense ................................................................................ $ 4,400
Plant janitorial services ............................................................................... $ 1,550
Work in process inventory, December 31, 2014 ........................................ $ 3,500
Finished goods inventory, December 31, 2013 ......................................... 0
Finished goods inventory, December 31, 2014 ......................................... $ 4,000
Sales revenue ............................................................................................. $109,000
Customer service hotline expense ............................................................. $ 1,700
Direct labor ................................................................................................ $ 20,000
Direct material purchases ........................................................................... $ 34,000
Rent on manufacturing plant ..................................................................... $ 9,600
Raw materials inventory, December 31, 2013 ............................................ $ 11,000
Raw materials inventory, December 31, 2014 ............................................$ 6,500
Work in process inventory, December 31, 2013 ........................................ 0
Requirements
1. Calculate the Cost of Goods Manufactured for Floral Manufacturing for the year ended December 31, 2014.
2. Prepare an income statement for Floral Manufacturing for the year ended December 31, 2014.
3. How does the format of the income statement for Floral Manufacturing differ from the income statement of Penny’s
Posies?
Part Three: Show the ending inventories that would appear on these balance sheets:
1. Penny’s Posies at December 31, 2013
2. Floral Manufacturing at December 31, 2014
Answer:
Part 1 Penny Henderson
Income Statement
For the year ended December 31, 2013
Sales $53,000
Less: Cost of goods sold
Beginning Inventory 12,700
Add: Purchases 37,000
Total Goods available for sale 49,700
Less: Inventory, end 9,600
Cost of goods sold $40,100
Gross profit $12,900
Less: Operating expenses
Utilities expense 1,400
Rent expense 4,600
Sales commission 4 ,900
Total operating expense $10,900
Net Income $2,000
Part 2
1. $77,350
2. Floral Manufacturing
Income Statement
For the year ended December 31, 2014
Sales $109,000
Less: Cost of goods sold
Raw materials, beginning 11,000
Add:Purchases 34,000
Raw materials available 45,000
Less: Raw material, end 6,500
Cost of raw material used 38,500
Add: Direct labor 20,000
Prime Cost 58,500
Add: Factory overhead 22,350
Manufacturing cost 80,850
Add: Work in process, beginning -
Less: Work in process, Ending 3,500
Cost of Goods Manufactured 77,350
Add: Finished goods, beginning -
Cost of goods available for sale 77,350
Less: Finished goods, ending 4,000
Cost of goods sold 73,350
Gross profit $35,650
Less: Operating expenses
Customer service hotline 1,700
Net Income $33,950
3. The difference between the 2013 and 2014 income statement is the composition of their cost of goods sold. In 2013, there is no cost of goods manufactured, raw materials and work in process account like 2014.
Part 3
1. Ending inventory of $9,600
2. Ending inventory of $14,000
Explanation:
Part 2
1. Floral Manufacturing
Statement of Cost of Goods Manufactured
For the year ended December 31, 2014
Raw materials, beginning 11,000
Add:Purchases 34,000
Raw materials available 45,000
Less: Raw material, end 6,500
Cost of raw material used 38,500
Add: Direct labor 20,000
Prime Cost 58,500
Add: Factory overhead 22,350
Manufacturing cost 80,850
Add: Work in process, beginning -
Less: Work in process, Ending 3,500
Cost of Goods Manufactured 77,350
3. The difference in the 2013 and 2014 preparation came from the balances of working in process and raw materials in the 2014 production wherein 2013 on the hand don't have it.
Part 3.
1. 2013 ending inventory consists of the goods not yet sold at the end of the year.
2. 2014 ending inventory consists of raw materials ending balance of $6,500 plus the work in process ending balance of $3,500 and the finished goods ending balance of $4,000.
Comprehensive income is determined by adding or subtracting __________ to (from) __________.
a. other comprehensive income; operating expenses
b. other comprehensive income; gross profit
c. income from continuing operations; other comprehensive
d. income other comprehensive income; net income
Comprehensive income is determined by adding or subtracting income other comprehensive income to (from) net income.
Explanation:Comprehensive income is a financial reporting concept that goes beyond traditional net income. It includes all changes in shareholders' equity during a specific period, except those resulting from investments by owners and distributions to owners. Comprehensive income encompasses both realized and unrealized gains and losses, such as changes in the fair value of investments or foreign currency translation adjustments.
This broader perspective provides stakeholders with a more comprehensive view of a company's financial performance and helps assess its overall economic well-being. It's particularly valuable for companies with significant exposure to market fluctuations, foreign operations, or complex financial instruments, as it captures a more holistic picture of their financial health.
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Comprehensive income is calculated by adding Other Comprehensive Income to Net Income. Other Comprehensive Income includes all unrealized gains and losses not included in net income. Therefore, it provides a broader view of a company's financial performance.
Explanation:Comprehensive income is determined by adding
Other Comprehensive Income
(OCI) to
Net Income
, as per option d in your question.
Comprehensive Income helps to provide a bigger and more holistic picture of a company's financial performance. Unlike Net Income, Comprehensive Income includes all revenues, costs, gains, and losses that directly affect shareholders' equity. Other Comprehensive Income encapsulates unrealized gains and losses that are not included in net income, such as foreign currency translation gains or losses, pensions plan gains or losses, and unrealized gains or losses from hedging activities.
So, to calculate Comprehensive Income, you start with Net Income and then add or subtract Other Comprehensive Income. This can include both positive and negative amounts, depending on the company's activities during the accounting period under consideration.
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Manuel Acala is a marketing analyst, but made only $28,000 last year because he was employed only part of the year. He paid $5,000 in taxes, and spent another $10,000 for food, housing, a car, and other "necessities." Manuel's discretionary income was:
Answer:
$13000
Explanation:
There are two types of incomes; disposable income that is the income after paying income tax, and discretionary income that is the income after paying income taxes and necessities. Overall, the Manuel Acala made $28000; he paid $5000 in taxes.
Disposable income= $28000-$5000 = $23000
He spent $10000 on food
Discretionary income = $23000-$10000= $13000
Coronado Shoes Fool Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case. The attorneys estimated that there is a 40% chance of losing. If this is the case, their attorney estimated that the amount of any payment would be $800,000. What is the required journal entry as a result of this litigation? a. Debit Litigation Expense for $800,000 and credit Litigation liability for $800,000. b. No journal entry is required. c. Debit Litigation Expense for $320,000 and credit Litigation Liability for $320,000. d. Debit Litigation Expense for $480,000 and credit Litigation Liability for $480,000.
Answer:
b. No journal entry is required
Explanation:
Given that
Estimated percentage of losing = 40%
Estimated amount = $800,000
By considering the above information, we concluded that
As in the case of the litigation, there is no journal entry is recorded as the possibility of the event is not certain with respect to the entity's economic resources.
Therefore in the given case, the correct option is b.
Please identify the appropriate term for the following scenarios. Ivan, a Russian fishermen, needs a permit so that he can participate in commercial ice fishing for yellow perch and legally sell the perch he catches. Ivan's permit Garet is an undergraduate student who has to work at McDonald's part-time to help pay his tuition loans. Always looking on the bright side of things, he is thankful that he cannot make less than what he is earning, $ 7.25 /hour. Garet's wage D'Artagnan, a poor French noblemen, discovers
Complete Question:
Please identify the appropriate term for the following scenarios.
Ivan, a Russian fishermen, needs a permit so that he can participate in commercial ice fishing for yellow perch and legally sell the perch he catches.
Ivan's permit Garet is an undergraduate student who has to work at McDonald's part-time to help pay his tuition loans. Always looking on the bright side of things, he is thankful that he cannot make less than what he is earning, $ 7.25 /hour.
Garet's wage D'Artagnan, a poor French noblemen, discovers a large cache of truffles in his backyard. However, the government caps the sale of truffles a $100 a pound, which frustrates D'Artagnan as he knows they are worth more than that.
Answer:
1. Ivan, a Russian fishermen, needs a permit so that he can participate in commercial ice fishing for yellow perch and legally sell the perch he catches - LICENSE
2. Ivan's permit Garet is an undergraduate student who has to work at McDonald's part-time to help pay his tuition loans. Always looking on the bright side of things, he is thankful that he cannot make less than what he is earning, $ 7.25 /hour - PRICE FLOOR
3. Garet's wage D'Artagnan, a poor French noblemen, discovers a large cache of truffles in his backyard. However, the government caps the sale of truffles a $100 a pound, which frustrates D'Artagnan as he knows they are worth more than that - PRICE CEILING
The appropriate term for the scenarios is permits. Permits are legal documents that grant individuals or organizations the right to engage in certain activities, such as fishing, emitting pollution, or preserving salmon, in accordance with specific regulations and limits.
Explanation:The appropriate term for the scenario described is permits. Permits are legal documents that grant individuals or organizations the right to engage in certain activities, such as fishing, emitting pollution, or preserving salmon, in accordance with specific regulations and limits. In the given examples, Ivan needs a permit for commercial ice fishing, a city sells permits to firms for pollution emission, and the federal government pays fishermen to preserve salmon. Permits are often used to regulate and manage various activities to ensure sustainability, resource conservation, and fair competition.
Wolverine World Wide, Inc., manufactures military, work, sport, and casual footwear and leather accessories under a variety of brand names, such as Hush Puppies, Wolverine, Merrell, Stride Rite, and Bates, to a global market. The following transactions occurred during a recent year. Dollars are in millions.a. Issued common stock to investors for $14,084 cash (example).b. Purchased $872,418 of additional inventory on account.c. Borrowed $11,700.d. Sold $1,346,068 of products to customers on account; cost of the products sold was $750,547.e. Paid cash dividends of $21,258.f. Purchased for cash $25,726 in additional property, plant, and equipment.g. Incurred $345,584 in selling expenses, paying three-fourths in cash and owing the rest on account.h. Earned $1,772 interest on investments, receiving 90 percent in cash.i. Incurred $2,990 in interest expense to be paid at the beginning of next year.Required:For each of the transactions, complete the tabulation, indicating the effect (positive value for increase, negative value for decrease, and leave blank if no effect) of each transaction.
Blake eats two bags of generic potato chips each day. Blake's hourly wage increases from $ 8 to $ 15 , and he decides to stop eating generic chips and instead eats a name-brand potato chip. Use the midpoint method to calculate Blake's income elasticity of demand for generic potato chips. Round your answer to two decimal places.\
Answer:
-3.28
Explanation:
The question is to calculate Blake's income elasticity of demand for generic potato chips
The formula for this is as follows
[tex]\frac{Q2-Q1}{Q2+Q1/2}[/tex] ÷ [tex]\frac{M2-M1}{M2+M1}/2[/tex]
For this equation; Q2 will be the final demand while Q1 represents the initial demand. Also , M2 represents the final outcome and M1 is the initial income
First, since Blake decides to stop generic chips completely, it means his demand for generic chips has reduced. The demand function therefore becomes:
Q2-Q1= 0-2=-2
Also, since his income has increased for $8 to $15 which is $7 (M2-M1) increase, the following can be said
His average demand of chips = Q2-Q1/2= 0+2/2=1
His average income, M2-M1/2 8+15/2= $11.5
The Income elasticity of demand for Blake
= -2/1 ÷ 7/11.5
= -3.28
For questions 9-12, use the following scenario. You are a consultant and have been employed by Urban General, a large inner-city hospital, to estimate the demand for its services. Your research indicates that the income elasticity of demand for the target market is +0.50; the price elasticity of demand is -0.15; and the cross-price elasticity of demand with respect to the price of services at St. Elsewhere, a near-by hospital, is +0.35. Answer the following questions.
The price of services at St. Elsewhere falls by 10 percent. What happens to the quantity of services demanded at Urban General?
Quantity demanded rises by 35.0 percent.
Quantity demanded falls by 3.5 percent.
Quantity demanded falls by 1.5 percent.
Quantity demanded rises by 5.0 percent.
Quantity demanded stays the same.
Answer:
Quantity demanded falls by 3.5 percent.
Explanation:
Given that,
Income elasticity of demand = +0.50
Price elasticity of demand = -0.15
Cross-price elasticity of demand = +0.35
price of services at St. Elsewhere falls by 10 percent
Therefore,
Cross price elasticity of demand = Percentage change in quantity demanded ÷ Percentage change in price
+0.35 = Percentage change in quantity demanded ÷ (-10%)
0.35 × (-10%) = Percentage change in quantity demanded
(-3.5%) = Percentage change in quantity demanded
Hence, the quantity demanded falls by 3.5%.
Final answer:
Using the cross-price elasticity of demand, a 10 percent decrease in the price of services at St. Elsewhere leads to a 3.5 percent drop in the quantity demanded at Urban General.
Explanation:
The question involves understanding the impact of a change in the price of services at a nearby hospital (St. Elsewhere) on the demand for services at Urban General, utilizing the concept of cross-price elasticity of demand. Given that the cross-price elasticity of demand with respect to the price of services at St. Elsewhere is +0.35, and there's a 10 percent fall in the price of services at St. Elsewhere, we can calculate the effect on the quantity demanded at Urban General. Since cross-price elasticity of demand measures the percentage change in the quantity demanded of one good resulting from a 1 percentage change in the price of another good, a 10 percent decrease in the price at St. Elsewhere leads to a 3.5 percent (0.35 * -10) fall in the quantity demanded at Urban General. Therefore, the correct answer is: Quantity demanded falls by 3.5 percent.
True/False:
A. The United States is only a destination for illegal drugs.
B. The global drug trade lives up to its name in that nearly all regions of the world are involved, either as a source or destination of illegal drugs.
C. China appears to be a hotbed of illegal drug activity.
D. Generally, countries with the lowest gross national income per capita are more likely to be sources for illegal drugs than to be destinations for those drugs.
E. Generally, countries with the highest gross national income per capita are more likely to be destinations for illegal drugs than to be sources of those drugs.
Answer:
A-True
B-True
C-True
D-True
E-True
Explanation:
To begin with, according to a report done on 2018 by the United Nations Office on Drugs and Crime The United States is increasing highly its number of drugs consumption regarding the fact that the american territory is growning as an illegal drugs' destination. Moreover, just like other countries that have high gross national income per capita the more citizens they have the more they consume regarding the fact that both rich and poor tend to drug addiction and therefore that those countries tend to be destinations for drugs. In addition, countries with the lowest gross national income per capita tend to be the ones that produce the drugs according to a report done by the government of The United States called ''the black list'' of country producers and where of 22 countries in the list, 17 of them are latinamerican countries that have low gross national income per capita.
To continue, the drug traffic around the world involves nearly all regions of the globe regarding the fact that they may either a source or a destination for the drugs. Furthermore, taking China for example, a great hotbed of illegal drug activity that has been increasing over the years.
A trader buys two July futures contracts on orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is 160 cents per pound, the initial margin is $6,000 per contract, and the maintenance margin is $4,500 per contract. What price change would lead to a margin call?Under what circumstance can $2000 be withdrawn from the account?
Hope this helps. Enjoy! Explanation is provided.
Final answer:
A margin call would occur if the futures price decreases by 10 cents per pound. The trader is able to withdraw $2,000 from the account when the account balance exceeds the initial margin requirements by that amount.
Explanation:
A trader buys two July futures contracts on orange juice with each contract being for the delivery of 15,000 pounds. The current futures price is 160 cents per pound, with an initial margin of $6,000 and a maintenance margin of $4,500 per contract.
A margin call occurs when the account balance falls below the maintenance margin. Since the initial margin is $6,000 and the maintenance margin is $4,500, this represents a $1,500 cushion per contract for the price to move against the trader before a margin call is issued. So, for two contracts, the trader has a total cushion of $3,000 ($1,500 x 2). Therefore, to trigger a margin call, the total value of the contracts must decline by $3,000.
Since each contract is for 15,000 pounds, and there are two contracts, the total weight covered is 30,000 pounds. To find the price change per pound that would lead to a margin call, divide the total cushion by the total pounds: $3,000 cushion / 30,000 pounds = $0.10 per pound. Thus, a decrease of 10 cents per pound in the futures price would trigger a margin call.
$2,000 can be withdrawn from the account when the account balance exceeds the initial margin requirements by at least $2,000. This would happen if the futures price moves in favor of the trader, increasing the value of the positions.
A company uses the retail method to estimate inventories. The following information is for the first six months of the current year: beginning inventory at cost and retail were $70,000 and $100,000 respectively, net purchases at cost and retail were $270,000 and $360,000, respectively, and sales during the first six months totaled $320,000. What is the estimated cost of goods sold at the end of the six-month period using the LIFO retail method?
Answer:
The correct answer is $240,000.
Explanation:
According to the scenario, given data are as follows:
Beginning inventory at cost = $70,000
Beginning inventory at retail = $100,000
Net purchases at cost = $270,000
Net purchases at retail = $360,000
Total sales = $320,000
According to the LIFO method.
Particulars Cost Retail Cost/Retail Ratio
Beginning inventory $70,000 $100,000 70%
Net purchases $270,000 $360,000 75%
Total Inventory $340,000 $460,000
Total sales $320,000
Ending inventory ( Estimated )
($360,000-$320,000)× 75% $30,000
$70,000 × 70% $70,000
Ending inventory at cost $100,000
Estimated cost of goods sold $240,000.
Hence the correct answer is $240,000.
Evaluate Microsoft’s product and marketing evolution over the years. What has the company done well, and where did it falter?
Explanation:
Microsoft is a giant technology company with worldwide influence.
Its success and reputation have ensured the company the position of the most valuable company in the world by market capital.
The popularization of the Windows Operating System, worldwide, was the product that consolidated the company as a giant in the business world. Technological companies, should focus on innovation, as each day more advances in technology appear to correct possible system errors, make the user's performance and use better and make production costs cheaper. With regard to the Operating System for computers, Microsoft has always evolved in launching new, more evolved versions, and making the previous ones obsolete for use, but one of the company's failures was to have lost the timing to develop an OS aimed at the use in cell phones, since that the company tried to enter this market, but was unsuccessful, and was defeated by its biggest competitors: Google and Apple.
Final answer:
Microsoft has excelled in the operating system market and has adapted to the changing technology landscape, maintaining a strong market presence. The company faced challenges with antitrust issues but managed to overcome them through settlements and changing strategies. Their evolution shows resilience and adaptability, though they have had moments of legal and competitive difficulties.
Explanation:
Microsoft's Product and Marketing Evolution
Upon evaluating Microsoft's product and marketing evolution over the years, it is evident that the company has excelled in innovating and capturing the operating system market. In the early 2000s, Microsoft held a dominant share of the software for computer operating systems, which was integral to its success. Despite this dominance, when considering all computer software and services, Microsoft's market share was around 14% in 2014, illustrating a competitive marketplace with varied definitions of market scope.
In 2000, Microsoft faced legal challenges regarding unfair competition and a federal court proposed the company to be split. This decision was overturned on appeal, and by November 2002, a settlement was reached ending Microsoft's restrictive practices. Microsoft's ability to navigate these legal challenges while maintaining its market position showcases both resilience and adaptability in its business strategy.
Microsoft has demonstrated strength in areas like product integration, marketing, and global brand recognition. They occasionally faltered, such as when dealing with antitrust issues, which questioned their market power and competition practices. Over time, Microsoft has managed to adapt to the changing technology landscape, shifting focus from just software to offering cloud services and other technological advancements, remaining a key player in the industry.
In text analysis, what is a lexicon? a. A catalog of customers, products, words, and phrase b. A catalog of customers, their words, and phrase c. A catalog of letters, words, phrases and sentences d. A catalog of words, their synonyms, and their meanings
Answer:C
Explanation:
A lexicon in text analysis is a catalog of words, their synonyms, and their meanings. It serves as a tool for understanding and analyzing language, identifying semantics and context of words used in a text.
Explanation:In text analysis, a lexicon is essentially a catalog of words, their synonyms, and their meanings. Think of it as a type of language database where each word is linked with its meaning or definitions and possibly its synonyms, antonyms, and other related words. A lexicon serves as a tool for understanding and analyzing language in a text. It helps to identify the semantics and context of words used in the text.
For example, a lexicon for English language literature would contain an extensive list of words used in English literature along with detailed information about each word's usage, meanings, and related words.
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Shane starts a new business this year and incorporates the business entity as SNB, Inc (taxed as a C corporation). Unfortunately, SNB, Inc. has a slower than expected start and loses $6,800. Assuming a 40% income tax rate, how much income tax will SNB, Inc. pay this year?
Answer:
no tax this year
Explanation:
given data
Shane loses = $6,800
income tax rate = 40%
to find out
how much income tax pay this year
solution
we know that here Shane business as SNB, Inc started slower than expected
and we notice he have loss of $6,800
so that it will pay no tax this year because his business generate a loss
so it is probably can be carry forward loss to future year to offset income
so no tax this year
Trina'sTrikes, Inc. reported a debt-to-equity ratio of 2 times at the end of 2018. If the firm's total debt at year-end was $10 million, how much equity does Trina's Trikes have? Multiple Choice $2 million $5 million $10 million $20 million
Answer:
$5 million
Explanation:
Trina'sTrikes, Inc. reported following figures:
Debt Equity Ratio = 2
Total Debt = 10 million
Formula for Debt Equity ratio is as follows:
Debt Equity Ratio = Total Debt / Total Equity
2 = $10 million / Total Equity
Total Equity = $10 million / 2
Total Equity = $5 million
So the correct option is $5 million
Joe's starting salary as a mechanical engineer is around $100 comma 000. Joe is planning to place a total of 13% of his salary each year in the mutual fund. Joe expects a 5% salary increase each year for the next 25 years of employment. If the mutual fund will average 11% annual return over the course of his career, what can Joe expect at retirement?
Answer:
$ 2,209,797.96
Explanation:
Given:
Salary = $100,000
Salary investment rate = 13%
Salary increase rate(g) = 5%
number of year = 25
Annual rate of return(i) = 11%
Calculation:
Salary invested = $100,000*13% = $13,000
calculation of present worth
[tex]P=A[\frac{1-(1+g)^n(1+i)^{-n}}{i-g}] \\P=13000[\frac{1-(1+0.05)^{25}(1+0.11)^{-25}}{0.11-0.05}] \\P=13000[\frac{1-(1.05)^{25}(1.11)^{-25}}{0.06}] \\P=13000[\frac{1-(3.386354)(0.073608086)}{0.06}]\\\\P=13000[\frac{1-0.249263}{0.06}]\\\\ P=13000[12.5122827]\\\\\\P= 162,659.675[/tex]
[tex]Future worth = P(1+i)^n\\ = 162,659.675(1+0.11)^{25}\\ = 2,209,797.96[/tex]
Sue and Kevin Kellman signed a contract for the construction of a cabin near Pinetop. In building the $562,000 cabin, the builder discovered that it had to put the vent for the heating system in the area where the hall closet is located. The result was that the Kellman’s had a half-closet there instead of a full-length closet that was open to the floor. The Kellmans: a. can be compensated under the doctrine of force majeure. b. can be compensated under the doctrine of substantial performance. c. need not pay for the cabin because of this material breach. d. can be compensated under the doctrine of commercial impracticability.
Answer:
The correct answer is letter "B": can be compensated under the doctrine of substantial performance.
Explanation:
Substantial performance is a concept in law by which and an individual who signed a contract can sue the counterparty because part of the contract was not fully respected but the incomplete portion is so minimal or irrelevant that it could not be considered as a breach of the contract.
Thus, the Kellman's can sue the cabin house builder for not constructing a full-length hall closet and could be compensated for that change.