Answer:
a. The accounts affected are assets (Supplies) and Equity (Retained Earnings).
b. Assets and Equity accounts are decreased.
c. The reason that Equity has changed is because the Retained Earnings are reduced by the Supplies Expense.
Explanation:
The five major classifications of accounts are assets, liabilities, equity, revenue and expenses. Both revenues and expenses affect the equity balance through retained earnings. While revenues increase retained earnings, expenses decrease them.
A five-sided lot has the following dimensions: side A = 44', side B = 67', side C = 91', side D = 18', and side E = 55'. What is the perimeter of the lot?
Answer:
275
Explanation:
You will add all the figures;that is;44+67+91+18+55=275
Some fairly dramatic changes have taken place in the demographics of the global economy over the past three decades. Several factors have played a significant part in shaping this change. Since the 1960’s, four major factors have contributed to the changing world economy &the world trade picture. These factors are U.S. dominance in the world economy, U.S.dominance in world foreign direct investment, dominance of large multinational U.S.firms, & lack of trade with centrally planned economies. All of these have either changed,or are rapidly changing the global economy today.
Mach each element with the change associated with it.
1. The Changing World Output & World Trade Picture
2. The Changing FDI Picture
3. The Changing Nature of theMultinational Enterprise
4. The Changing World Oder
a. Developing nations
b. China
c. Toyota
d. Hisense
Answer:
1. The Changing World Output & World Trade Picture ⇒ Developing nations
Developing nations have steadily been improving their contribution to the world economy and will eventually become major trade partners.
2. The Changing FDI Picture ⇒ Toyota
Toyota has gone from producing in and exporting from Japan to producing in several countries as a form of FDI which shows that companies apart from those in western nations can now engage in FDI.
3. The Changing Nature of the Multinational Enterprise ⇒ Hisense
Hisense was originally a radio manufacturer from China but has now taken to the world as a Multinational Enterprise spanning markets across the globe.
4. The Changing World Order ⇒ China
China has gone from a country devastated by civil war and internal strife to an economic juggernaut that through trade and aid, is imposing its will on other nations and challenging the US thus signifying the changing world order.
You may use identification documents that are expired or appear fraudulent in the processing of financial product applications.
a. True
b. False
Answer:
You may use identification documents that are expired or appear fraudulent in the processing of financial product applications.
b. False
Explanation:
Using expired or fraudulent documents to process applications for financial products is a financial crime or fraud. It is a form of theft or larceny. It is also morally reprehensible for one to misrepresent or misstate data for the purpose of obtaining a financial advantage. When such a crime is perpetrated, it means that the other party had been defrauded of their financial resources. The law does not pity the party that intentionally engages in misrepresentation or misstatement of records.
Digger Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year.
Budgeted Actual
Overhead cost 975,000 $950,000
Machine hours 50,000 45,000
Direct labor hours 100,000 92,000
Overhead is applied on the basis of direct labor hours
Required:
a. Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 12.25.)
b. Determine the amount of overhead applied for the year.
Answer:
a. $19.5 per machine hour
b. $877,500
Explanation:
a. The predetermined overhead rate is calculated as;
= Budgeted overhead manufacturing cost / Budgeted machine hours
Given that;
Budgeted overhead manufacturing cost = $975,000
Budgeted machine hours = $50,000
Predetermined overhead rate = $975,000 / $50,000
= $19.5 per machine hour
b. Applied overhead rate is calculated as;
= Predetermined overhead rate × Actual machine hour
Given that predetermined overhead rate = $19.5 per machine hour
Actual machine hour = 45,000
Predetermined overhead rate
= $19.5 × 45,000
= $877,500
Indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
a. There are many teenagers who would like to work at fast-food restaurants, but they are not hired due to minimum-wage laws.
b. The government prohibits fast-food restaurants from selling hamburgers for more than $5 each.
c. The government has instituted a legal minimum price of $5 each for hamburgers.
Answer:
For this question assume that the equilibrium price for hamburgers is $7.
A Price ceiling on a good means that no price higher than the one mandated should be charged. Binding price ceiling means that the price ceiling is lower than the equilibrium price.
A Price floor means that no price should be charged that is lower than the mandated price. Binding price floor means that the price floor is higher than the equilibrium price.
a. Binding Price Floor
Minimum wage laws are price floors because they represent a minimum price that can be charged for labor. One cannot go below this price thereby making it a price floor. It is a binding price floor because it is higher than the Equilibrium price for labor. This is why people are not hiring the teenagers.
b. Binding Price Ceiling
The government has given a maximum price that can be charged for hamburgers. This makes it a price ceiling. It is binding because it is lower than the equilibrium price of $7..
c. Non-binding Price Floor
This is a minimum price which means that it is a price floor. It is non-binding because this price floor is lower than the equilibrium price of $7.
Drag each tile to the correct location.
Match each element to the correct part of an effective essay.
attention-getting sentence
call to action
specific details about topic
conclusion
body
introduction
Answer:
1). Attention-getting sentence - Introduction
2). Call to action - Conclusion
3). Specific details about the topic - Body
Explanation:
The 'introduction' of an essay primarily functions to capture the readers' attention towards the topic and arouse their interest in it. Thus, it must be catchy enough to hook the attention and inform the readers about the key argument of the essay. While the body of the essay must function to explain the ideas, points, and arguments using sufficient evidence to substantiate the claim. And the conclusion of the essay acts as a 'call to action' as it aims to initiate the readers to take the desired action and to play the role they can play.
Answer:
Attention-getting sentence - Introduction
Call to action - Conclusion
Specific details about the topic - Body
Explanation:
Granger Service Company, Inc., was organized by Ted Granger and five other investors. The following activities occurred during the year:
a. Received $71,000 total cash from the six investors; each investor was issued 8,500 shares of common stock with a par value of $0.20 per share.
b. Purchased equipment for use in the business at a cost of $19,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months). Signed an agreement with a cleaning service to pay $130 per week for cleaning the corporate offices next year.
c. Received an additional contribution from investors who provided $3,100 in cash and land valued at $16,000 in exchange for 1,100 shares of stock in the company.
d. Lent $2,600 to one of the investors who signed a note due in six months. Ted Granger borrowed $7,100 for personal use from a local bank, signing a one-year note.
Required:
Create T-accounts for the above accounts.
Answer:
Granger Service Company, Inc.
T-accounts
Cash
Accounts Titles Debit Credit
Common stock $10,200
APIC - common stock 60,800
Equipment $4,750
Common stock 2,200
APIC - common stock 900
Notes Receivable 2,600
Notes Receivable
Accounts Titles Debit Credit
Cash $2,600
Common Stock
Accounts Titles Debit Credit
Cash $10,200
Cash 2,200
Additional Paid-in Capital
Accounts Titles Debit Credit
Cash $60,800
Cash 900
Land 16,000
Land
Accounts Titles Debit Credit
APIC - common stock $16,000
Equipment
Accounts Titles Debit Credit
Cash $4,750
Notes payable 14,250
Notes payable
Accounts Titles Debit Credit
Equipment $14,250
Explanation:
The T-accounts consist of account titles at the top horizontal line, a debit column, and a credit column. It may also look exactly like the letter T. Otherwise, in modern time, T-accounts are no longer presented in the form of the letter T. They are now presented in columnar formats, as shown above.
Increasingly, CEOs are building their companies’ brands through personal online participation, including through wide distribution of blog posts, and in this way they are allowing consumers to gain trust in the person running the business rather than an impersonal brand.
a. True
b. False
Answer:
a. True
Explanation:
A marketing channel can be defined as the process of developing marketing techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers. There are four (4) main types of marketing channels;
1. Direct selling.
2. Dual distribution.
3. Sales through intermediaries.
4. Reverse channel.
When selecting a marketing channel, the first step is to determine the type of channel that will best meet your objectives and the distribution needs of your customers.
Increasingly, CEOs are building their companies’ brands through personal online participation, including through wide distribution of blog posts, and in this way they are allowing consumers to gain trust in the person running the business rather than an impersonal brand. This is essentially achieved through the use of social media such as Face-book, Twitter, Insta-gram, Goo-gle, etc.
Dixie Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard tapered candles 50%, and large scented candles 20%. The contribution margin ratio of each candle type is shown below.
Answer:
Information is missing, so I looked for a similar question:
Candle Type
Contribution Margin Ratio
Birthday 20%
Standard tapered 30%
Large scented 45%
the weighted average contribution margin ratio = (0.30 x 20%) + (0.50 x 30%) + (0.20 x 45%) = 30%
if the fixed costs = $450,000, its break even point in dollars = $450,000 / 30% = $1,500,000
Birthday $450,000 Standard tapered $750,000 Large scented $300,000Answer: weighted average contribution margin ratio=0.30
Explanation:
Candle Type
Contribution Margin Ratio
Birthday 20%
Standard tapered 30%
Large scented 45%
the weighted average contribution margin ratio = (0.30 x 20%) + (0.50 x 30%) + (0.20 x 45%) = 30%
Birthday $450,000
Standard tapered $750,000
Large scented $300,000
Please provide at least 3 similarities and 3 differences between insurance companies and depository institutions both in terms of their function as well as the make-up of their balance sheet.
Answer:
Explanation:
I will be starting with the similarities first. 3 of the similarities both of them share are
1) They both have a financial leverage that is quite high
2) they both can be subjected to national oversight as regards to their balance sheet quality.
3) they both are institutions that accepts funds and also gives out funds to finance commercial firms
Moving on to the differences, differences that exists between both includes
1) Insurance companies can are invest in stock markets but depository institutions do not have that leverage.
2) Insurance companies do not have fixed composition of liabilities, while depository institutions have.
3)
Crinks Corporationu ses direct labor hours in its predetermined in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 14,400 hours and the total estimated manufacturing overhead was $355,680. At the end of the year, actual direct labor-hours for the year were 10,800 hours and the actual manufacturing overhead for the year was $254,840. Overhead at the end of the year was:_______
Answer: $11920 Overapplied
Explanation:
We have to calculate the Predetermined overhead rate which would be:
= Estimated total manufacturing overhead / Estimated amount of the allocation base
= $355,680 ÷ 14,400 direct labor-hours
= $24.70 per direct labor-hour
Since the actual hours is 10,800 hours, therefore, the applied overhead would be:
= 10,800 × 24.70
= $266,760
Since the actual overhead = $254,840, then the overapplied Overhead would be:
= $266,760 - $254,840
= $11920 Overapplied
students all year at State College, located at 11100 College Boulevard, Your City, Your State. During the year, Anthony paid $5,000 in tuition and fees, substantiated with Form 1098-T. Nicole paid $3,800 in tuition and fees, also substantiated with Form 1098-T. Both Anthony and Nicole have part-time jobs outside of school. They did not receive any scholarships during the year. Their adjusted gross income is $47,000. Their total tax on line 12a of their federal Form 1040 is $2,327. They had no additional taxes. Both Anthony and Nicole meet all the requirements to qualify for the American Opportunity Tax Credit.
Required:
a. Assuming that all other requirements are met, what is the refundable amount of Anthony and Nicole's American Opportunity Credit?
b. Assuming that all other requirements are met, what is the amount of anthony and nicoles nonrefundable american opportunity credit?
Answer:
The answer is "$1000 and $2450"
Explanation:
In point a:
Credit of American Refundable Chance:
when [tex]20 \%[/tex] deduction is upto [tex]\$100 \ or\ 40\%[/tex] credit upto [tex]\$1000[/tex]i s refundable
[tex]\to AOLC_{Anthony} =\$5000 \times 20\% = \$1000\\\\\to AOLC_{Nicole} =\$3800 \times 20\% = \$760[/tex]
[tex]= \$1760 \ upto \ max \ $1000[/tex]
In point b:
[tex]100 \%[/tex] deduction for first [tex]\$2000 \ then \ 25\%[/tex] deduction max upto [tex]\$2500[/tex]
[tex]\to AOLC_{Anthony} =\$2000 +(5000 -2000) \times 0.25 = 2750 \\\\\to AOLC_{Nicole} =\$2000 +(3800 -2000) \times 0.25 = \$2450[/tex]
Question 5 of 10
What role does Congress play in developing the federal budget?
A. Congress sends requests to the president for federal spending
priorities.
B. Congress sends different plans to state governments for their
approval.
C. Congress determines which federal spending programs will be
mandatory.
O D. Congress considers the president's budget proposal and votes on
a finalized budget.
Answer: D
Explanation:
The role that the congress play in developing the federal budget is that the Congress considers the president's budget proposal and votes on a finalized budget.
What is federal budget?The federal budget is a numbered plan for the United States' annual public expenditures.
It is used to pay for a variety of federal expenses, including distributing agricultural subsidies, paying federal personnel, and purchasing military equipment.
The duty of Congress in the development of the federal budget is to evaluate the president's budget proposal and vote on a finalized budget.
Therefore, option D is correct.
Learn more about the federal budget, refer to:
https://brainly.com/question/4514203
#SPJ2
3.
a. Define stare decisis.
b. Describe "precedent” and relate it to stare decisis.
Explanation:
Stare decisis
Meaning "to remain by items agreed," it is the law of precedence. When a matter has been recently taken to the court and a decision has already been made, courts cite to stare decisis.
"Precedent” and relate it to stare decisis.
Legal concepts that useful today our U.s civil law structure are tradition and stare decisis.That judges look at the previous, related problems to direct their rulings. Such previous rulings are referred to as precedence.
In which file can you find the dormant date and location presentation duration and general guideline for the BBA conference and presentation
Answer:
powerpoint.
Explanation:
I WISH ITS CORRECT༼ つ ◕‿◕ ༽つ
The following information is available for Aikman Company.
January 1, 2017 December 31, 2017
Raw materials inventory $21,000 $30,000
Work in process inventory 13,500 17,200
Finished goods inventory 27,000 21,000
Materials purchased $150,000
Direct labor 220,000
Manufacturing overhead 180,000
Sales revenue 910,000
Required:
1. Compute cost of goods manufactured.
2. Prepare an income statement through gross profit.
Answer:
$537,300
$378,700
Explanation:
1. Cost of goods manufactured
Direct material Jan 1 2017
$21,000
Add purchases of raw materials
$150,000
Less raw materials December 2017
($30,000)
Materials used in production
$141,000
Direct labor
$220,000
Manufacturing overhead
$180,000
Total manufacturing cost
$541,000
Add work in process inventory at Jan
$13,500
Less ending work in process inventory
($17,200)
Cost of goods manufactured
$537,300
2. Income statement through gross profit
Sales revenue
$910,000
Less cost of goods sold:
Cost of goods manufactured
$537,300
Add: finished goods at 1 Jan 2017
$27,000
Less: finished goods at 31 2017
($21,000)
Gross profit
$378,700
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match each of the following accounts with its proper account group from the groups listed below.
Clear All
Liabilities Patents
Assets Fees Earned
Revenue Prepaid Insurance
Owner's Equity Unearned Rent
Chris Clark, Drawing
Answer:
Matching accounts with their proper account groups:
Accounts Proper account group
Unearned Rent Liabilities
Patents Assets
Prepaid Insurance Assets
Fees Earned Revenue
Chris Clark, Drawing Owner's Equity
Explanation:
a) Data and Calculations:
Liabilities
Patents
Assets
Fees Earned
Revenue
Prepaid Insurance
Owner's Equity
Unearned Rent
Chris Clark, Drawing
b) Some accounts can be grouped according to their impact on the accounting equation, as assets, liabilities, and equity. Other accounts can also be grouped according to their impact on the net income, as either revenues or expenses. From these, one can conclude that there are basically five types of accounts. They are assets, liabilities, equity (balance sheet) accounts, and revenue and expenses (income statement) accounts.
Your firm needs a computerized machine tool lathe which costs $43,000 and requires $11,300 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 34 percent and a discount rate of 13 percent.If the lathe can be sold for $4,300 at the end of year 3, what is the after-tax salvage value?
Answer:
=3921.34
Explanation:
We first have to calculate the book value.
The Book value = (price at purchase)x(1-summation of MACR rates from start to the current date)
We have purchase price at $43000
= (43000)x(1-0.3333-0.4445-0.1481)
= 43000x0.0741
= 3186.3
Then the After tax salvage value = selling price x (1-tax rate) + the book valuexl x tax rate
= 4300x(1-0.34)+3186.3*0.34
= 2,838+1,083.342
= 3921.342
This is the after-tax salvage value
Joe Fixit has an appliance- repair business. He has more business than he can handle and wants to hire another person. Joe estimates that three appliances can be repaired each hour by a qualified person.
Joe bills out labor at $45 per hour, but he stipulates that the minimum charge for appliance - repair estimates is $30 plus parts.
What is the marginal revenue product of a qualified repair person?
What is the maximum hourly wage that he would pay an employee?
Answer:
A. $90
B. $90 per hour
Explanation:
Calculation for the marginal revenue product of a qualified repair person
Using this formula
Marginal revenue product= Numbers of appliance repairs per hour * Estimated minimum charge for appliance repair
Let plug in the formula
Marginal revenue product= 3 appliance*$30
Marginal revenue product=$90
Therefore the marginal revenue product of a qualified repair person will be $90
B Based on the above calculation the maximum hourly wage that he would pay an employee will be $90 (3 appliance repairer per hour*$30) reason been that we have bring in extra amount of $90 per hour because of the additional one more repairer that was hired or employed .
Therefore the maximum hourly wage that he would pay an employee will be $90 per hour
(Learning Objective 4: Construct the financial statements) Suppose Robin Sporting
Goods Company reported the following data at July 31, 2018, with amounts in thousands:
Cost of goods sold................. $136,800
Cash...................................... 50,000
Property and equipment, net ... 19,400
Common stock...................... 26,000
Inventories ............................ 36,000
Long-term liabilities.............. 11,700
Dividends.............................. 0
Retained earnings,
July 31, 2017 ............ $ 31,500
Accounts receivable....... 34,000
Net revenues ................. 191,000
Total current liabilities.. 80,000
All other expenses......... 29,000
Other current assets ...... 5,000
Other assets................... 30,000
Use these data to prepare Robin Sporting Goods Company’s single-step income statement for
the year ended July 31, 2018; statement of retained earnings for the year ended July 31, 2018;
and classified balance sheet at July 31, 2018. Use the report format for the balance sheet. Draw
arrows linking the three statements.
Answer:
Robin Sporting Goods Company
1. Single-step Income Statement for the year ended July 31, 2018:
Net revenues ................. $191,000
Cost of goods sold................. 136,800
All other expenses......... 29,000 165,800
Net Income $25,200
2. Statement of retained earnings for the year ended July 31, 2018:
Retained earnings, July 31, 2017 ............ $31,500
Net Income $25,200
Dividends.............................. 0
Retained earnings, July 31, 2018 $56,700
3. Report Format Classified Balance Sheet as of July 31, 2018:
Assets
Current assets:
Cash...................................... $50,000
Accounts receivable....... 34,000
Inventories ............................ 36,000
Other current assets ...... 5,000 $125,000
Long-term assets:
Other assets................... 30,000
Property and equipment, net ... 19,400 $49,400
Total assets $174,400
Liabilities + Equity
Total current liabilities........... $80,000
Long-term liabilities.............. 11,700
Total liabilities $91,700
Common stock...................... $26,000
Retained Earnings, July 31, 2018 56,700 $82,700
Total liabilities + Equity $174,400
Explanation:
a) Data and Calculations:
Trial Balance as of July 31, 2018:
Accounts Titles Debit Credit
Cash...................................... $50,000
Accounts receivable....... 34,000
Inventories ............................ 36,000
Other current assets ...... 5,000
Other assets................... 30,000
Property and equipment, net ... 19,400
Total current liabilities........... $ 80,000
Long-term liabilities.............. 11,700
Common stock...................... 26,000
Retained earnings, July 31, 2017 ............ 31,500
Net revenues ................. 191,000
Cost of goods sold................. 136,800
Dividends.............................. 0
All other expenses......... 29,000
Totals $340,200 $340,200
b) Linkages to the three statements:
Income statement is linked to the Statement of Retained Earnings by the Net Income. The Statement of Retained Earnings is linked to the Balance Sheet by the Retained Earnings of July 31, 2018. There is no ability to draw arrows here.
Mulkeen Service Company, Inc., was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year:
a. Received $48,000 cash from the managers; each was issued 1,200 shares of common stock.
b. Purchased equipment for use in the business at a cost of $8,400; one-fourth was paid in cash and the company signed a note for the balance (due in six months).
c. Signed an agreement with a cleaning service to pay it $70 per week for cleaning the corporate offices, beginning next year.
d. Conor Mulkeen borrowed $15,000 for personal use from a local bank, signing a one-year note.
Required:
a. Create T-accounts for the following accounts: Cash, Equipment, Note Payable, and Contributed Capital.
b. Using the balances in the T-accounts, fill in the following amounts for the accounting equation:
Assest $_______ = Liabilities$ _______ + Stockholders Equity $_______
c. Explain your response to events (c) and (d).
Answer:
a)
cash common stock
48,000 48,000
2,100
45,900
equipment note payable
8,400 6,300
b)
Assets = Liabilities + Equity
$54,300 $6,300 $48,000
c)
there is no transaction in (c) and the corporation is a separate entity and Conor's personal accounts are not part of it.
Which of the following account options earns the lowest interest?
O Savings
O Certificate of deposit
O Roth IRA
O Money market
Out of the choices provided above, it can be concluded that a savings deposit account is the one that earns the lowest amount of interest. Therefore, the option A holds true.
What is the significance of a savings account?A savings account, or a bank deposit account, can be referred to or considered as such an account in which a person will be able to deposit any sum of monies, and earn a fixed and predetermined rate of interest over such deposit.
Usually, savings account is used for the purpose of safekeeping of money, and is not used for the purpose of investment. As a result, the amount of interest offered by the banks in a savings account deposit is the lowest among all money instruments.
Therefore, the option A holds true and states regarding the significance of a savings account.
Learn more about a savings account here:
https://brainly.com/question/3811440
#SPJ2
Scenario II:
Mrs. Ghas T. Dur. Was hooked by so many nice freebies in Avon. She ordered new things including gadget for
her two adolescent children who are in grade 8 and the other in grade 12.
Last December her husband gave her all the money he received from the company he is working.
With the holiday season she spends for gifts and foods for special occasion, what she left by January was
5,000.00. She still owes Avon amounting to 4,500.00 which is due by 15th this month. Her two children were
asking to pay for tuition fees that has a balance of 4,500.00 and so they can take the exam. If you were in the
position of Mrs. Ghas what will you do then, which will you pay first and how much. Where will you get an extra
amount to pay your dues? Justify your answer.
Answer:
Pay tuition first
Explanation:
Mrs. Das should pay the tuition fee of her children first from the $5000 balance with her, this is to enable the children take their exams without any distraction. Failure to pay their tuition may also mean that the children will spend an additional year in some cases. Therefore to avoid inflicting psychological distress on the children, paying the children's tuition will be made priority.
Also, settling Avon before the due date is important too and if I were in her shoes may decide to return or sell some of the goods purchased from her because it could be seen that Mrs. Das was carried away by Avon's stock and purchased more than those things which they needed most importantly.
An investor bought 100 shares of Copier Corp. for $85 a share. The firm paid an annual dividend of $4 a share; and commissions on the purchase and sale were $75. The price of the stock rose to $120 in one year. What is the percentage earned on the investment if the stock is bought for cash (i.e., the investor did not use margin)
Answer:
46.44%
Explanation:
The computation of the percentage earned on the investment is shown below:
But before that the profit is
Profit = Sale - Commissions - (Cost + Commissions) + Dividends
= ($120 × 100) - $75 - (($85 × 100) + $75) + ($4 × 100)
= $12,000 - $75 - ($8,500 + $75) + $400
= $3,750
Now
Percentage earned on investor's funds is
= $3,750 ÷ $8,075
= 46.44%
In 2017, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. Indicate where each of the following income-related items for this company appears on its 2017 income statement.
1. Net sales
2. Gain on state's condemnation of company property, net of tax
3. Cost of goods sold
4. Income taxes expense
5. Depreciation expense
6. Gain on sale of wholesale business segment, net of tax
7. Loss from operating wholesale business segment, net of tax
8. Loss of assets from a meteor strike, net of tax
Required:
Prepare the income statement for the calendar year 2017.
Answer:
Randa Merchandising, Inc.
1. Indication of where each of the following income-related items for this company appears on its 2017 income statement.
Income Statement
1. Net Sales
2. Cost of goods sold
3. Depreciation expense
4. Income taxes expense
5. Gain on state's condemnation of company property, net of tax
6. Gain on sale of wholesale business segment, net of tax
7. Loss from operating wholesale business segment, net of tax
8. Loss of assets from a meteor strike, net of tax
Explanation:
Randa's income statement is prepared using a step-by-step approach. It starts with the net sales from which the cost of goods sold is deducted to arrive at the gross profit. Thereafter, the operating expenses are deducted to obtain the operating income. Based on this, income taxes are computed before arriving at the operating income after taxes. And then, the extraordinary items are disclosed (net of taxes) before arriving at the net income.
Gutierrez Company reported net income of $196,100 for 2020. Gutierrez also reported depreciation expense of $47,400 and a loss of $5,600 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of $10,900 for the year, a $12,900 increase in accounts payable, and a $3,200 decrease in prepaid expenses.
Required:
Prepare the operating activities section of the statement of cash flows for 2020.
Answer:
$276,100
Explanation:
Preparation of the operating activities section of the statement of cash flows for 2020
GUTIERREZ COMPANY Statement of Cash FlowsFor Year Ended December 31, 2020
Cash flows – operating activities
Net income $196,100
Add Reconciling adjustments to net income to netcash provided by activities:
Depreciation expense$47,400
Loss on Disposal of plant assets $5,600
Increase in Accounts payable $12,900
Decrease in Accounts receivable $10,900
Decrease in Prepaid expenses $3,200
Net cash – operating activities $276,100
Therefore the operating activities section of the statement of cash flows for 2020 will be $276,100
Monica Smith was unemployed because the steel company, where she worked, closed and moved overseas to a foreign country. Other steel companies have also closed. Her skills are not transferable to another industry and she is unable to get a job.She would be classified as:_________.
Answer:
structurally unemployed.
Explanation:
Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;
1. Cyclical unemployment rate (CU).
2. Frictional unemployment rate (FU).
3. Structural unemployment rate (SU).
Structural unemployment can be defined as an involuntary unemployment that arises as a result of the incompatibility between a worker's skills set and requisite skills an employer seeks from the workers or due to technological changes.
This ultimately implies that, it describes a situation where an individual isn't able to secure a job as a result of insufficient number of jobs matching their qualifications, thus limiting their opportunities.
In this scenario, Monica Smith was unemployed because the steel company, where she worked, closed and moved overseas to a foreign country. Other steel companies have also closed. Her skills are not transferable to another industry and she is unable to get a job.
Hence, she would be classified as structurally unemployed.
All of the following are true of the Human Development Index except:
A. The United States loses points on the HDI because it's education level and literacy rate are lower than countries like Norway and Canada.
B. Most countries that score very high on the scale are located in North America and Europe.
C. Ecology and the environment are strongly considered in the HDI calculations.
D. The HDI measures factors such as life expectancy, literacy, education level, and standard of living.
E. Many low HDI countries are located in sub-Saharan Africa.
Answer:
C. Ecology and the environment are strongly considered in the HDI calculations.
Explanation:
Human Development Index can be defined as a statistical tool used for summarily measuring human achievements, life expetancy, etc
All of the following are true of the Human Development Index (HDI);
I. The United States loses points on the HDI because it's education level and literacy rate are lower than countries like Norway and Canada.
II. Most countries that score very high on the scale are located in North America and Europe.
III. The HDI measures factors such as life expectancy, literacy, education level, and standard of living.
IV. Many low HDI countries are located in sub-Saharan Africa.
Which of the following statements is NOT CORRECT?
a. Foreign bonds and Eurobonds are two important types of international bonds.
b. A Eurodollar is a U.S. dollar deposited in a bank outside the U.S.
c. The term Eurobond applies only to foreign bonds denominated in U.S. currency.
d. Any bond sold outside the country of the borrower is called an international bond.
e. Foreign bonds are bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold.
Answer:
b. A Eurodollar is a U.S. dollar deposited in a bank outside the U.S.
Explanation:
A Eurodollar is a bond issued by a foreign company in US dollars instead of heir own domestic currency. Eurodollars are issued and redeemable at the foreign country, no the US. It has nothing to do with money deposited in banks outside of the US, since it refers to bonds, not deposits.
NYSE NASDAQ
Bid Ask Bid Ask
Compasny X $149.55 $150.45 $149.87 $150.13
Company Y $127.88 $128.12 $127.70 $128.30
Currently you have $120.00 in cash and 1000 shares of Stock Y in your brokerage account. You plan to simultaneously sell 1000 shares of Stock Y, then purchase as many shares of Stock X as possible. Assume you cannot borrow or buy partial shares of stock; you will also buy or sell at the best price offered. Based on the quotes provided, the cash balance in your brokerage account after you purchase the shares of Stock X is closest to:________
a. $(60.89)
b. $59.11
c. $87.95
d. $89.24
e. $106.10
Answer:
Option d ($89.24) is the correct option.
Explanation:
The given values are:
In cash,
= $120
Throughout stock Y,
= 1000 shares
Throughout NYSE, the stock Y would be
= $127.88.
Amount procured by offering to buy the Y stock throughout NYSE will be:
= [tex]1000\times 127.88[/tex]
= [tex]127880[/tex]
The total amount throughout the Demat account will be:
= [tex]120+127880[/tex]
= [tex]128000[/tex]
For stock X, the minimum lowest price would be in NASDAQ,
Now,
The buying stock X will be:
= [tex]\frac{128000}{150.13}[/tex]
= [tex]852.59[/tex] i.e., [tex]852 \ shares[/tex]
The invested amount will be:
= [tex]180\times 150.13[/tex]
= [tex]127910.76[/tex]
So the cash amount in brokerage a/c will be:
= [tex]128000-127910.76[/tex]
= [tex]89.24[/tex]
