Answer: a) 0.5%
Explanation:
The real interest rate is simply the nominal interest rate adjusted for inflation.
Real interest rate = Nominal rate - Inflation
= 2.5 - 2
= 0.5%
During the year, cash increased by $360 million. Investing and financing activities created positive cash flow totaling $600 million. What were net cash flows from operating activities in the statement of cash flows
Answer:
-$240 million
Explanation:
The computation of the net cash flows from operating activities is as follows:
As we know that
Net cash flows from operating activities + net cash flows from financing and investing activities = Net Increase in cash for the year
Net cash flows from operating activities + $600 million = $360 million
So, the net cash flows from operating activities is
= -$240 million
If the average cost of producing sweaters is lower in the larger factory when Argyle produces 6,500 sweaters per week, why isn't it also lower when Argyle produces 4,000 sweaters per week
Answer:
The reason for this difference is due to the fixed costs of Argyle.
Explanation:
Within the relevant range of production, the fixed costs of Argyle remain fixed in total but vary per unit. This implies that when Argyle produces 6,500 sweaters per week, its unit cost per sweater will be lower than when it produces 4,000 sweaters for the same period. The 6,500 sweaters share in the total costs and each unit will get a lower share than when the same costs are shared among 4,000 sweaters.
The reason why the average cost of producing sweaters is not lower when Argyle produces 4,000 sweaters per week is due to Economies of scale.
When a company produces goods in larger quantity the average cost of producing will be lower reason being that both fixed cost and variable cost are often extended over a large amount of goods produced.
While on the other hand goods produce in small quantity will have a higher average cost.
Therefore the higher the goods produce the lesser the average cost and the lesser the goods produce the higher the average cost of production.
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During the year, Eastern Gas Pipeline Co. issued 5,000 shares of preferred stock for $25 per share. This transaction is classified as .
Answer: B. Financing cash flow
Explanation:
Financing cashflow activities are those that have to do with the capital raised for the operations of the business. Every cash transaction related to capital falls under Financing activities.
This includes transactions such as issuing shares such as the preferred shares in the question and debt instruments such as bonds. Dividends and treasury purchases also fall under here.
Cassandra is part of a team at ABC Products. In her team meetings, at times, she understands and follows the discussion and other times she misses it because she is preoccupied with other thoughts. Which of the following can measure how Cassandra is paying close attention and is alert or observant?
a. Encoding
b. Vertical communication
c. Horizontal communication
d. Noise
e. Interaction attentiveness
Answer:
e. Interaction attentiveness
Explanation:
Since in the question it is mentioned that cassandra who is a part of the team. In her team meeting, she understands and takes the follow up. So here the interaction attentiveness should be considered as she have a close attention also at the same time she is alert
Therefore the option e is correct
Claude received notice that his disability benefits had ended and that he must resume working. Is Claude entitled to a hearing?
Only if Claude can prove that the loss of his benefits involves a liberty or property interest.
Claude is entitled to a hearing whenever any benefits are terminated and he requests one.
Answer:
Claude is entitled to a hearing whenever any benefits are terminated and he requests one.
Explanation:
Benefits like we all know is the financial support offered to someone who is unable to carry out a specific function due to a given constraint. This constraints could be as a result of disability or an illness.
For Claude benefits to be cut off without actual investigation to evaluate if there is need for that was a wrong move. Claude is definitely entitled to a hearing regarding to that suspension of his benefits.
Answer:
Only if Claude can prove that the loss of his benefits involves a liberty or property interest.
Explanation:
If Robert chooses not to itemize, what is the amount that he can deduct as an above-the-line charitable contribution adjustment in 2020
Answer:
The answer is "$250"
Explanation:
In 2020 they can deduct up to 100% of the gross income from the charitable contribution for a qualifying charitable organization, up to a maximum of $ 300, while our money contribution was just $ 250, so you only allow $ 250 to the non-particular deduction - over the charitable donation line throughout 2020.
The field involved with the organization, grouping, ordering, and presentation of content is known as ________.
Answer: Information architecture
Explanation:
Information Architecture is the field that is involved with the organization, grouping, ordering, and presentation of content.
In Information architecture (IA), the focus is mainly on the organizing, structuring, and the labeling of content in a way that is effective and also sustainable. The main goal of information Architecture is for users to be able to find information and also be able to complete tasks.
16. The cost of land can include: A. Purchase price B. Assessments by local governments C. Costs of removing existing buildings D. Fees for insuring the title E. All of the above
Answer:
E. All of the above
Explanation:
The cost of the land could be computed by adding the purchase price of the land, its assessment done by the local governments, removing cost of the existing buildings, insuring fees for the title
Therefore as per the given situation, it includes all the things mentioned in the question
Therefore the correct option is E
hence, the same is to be considered
TinCan Corp. has common stock with a market value of $450,000, debt with a market value of $350,000 and preferred stock with a market value of $150,000. If debt has a cost of 8%, preferred stock a cost of 10%, common stock a cost of 12%, and the firm has a tax rate of 30%, what is the WACC?
Answer:
9?33%
Explanation:
Calculation for what is the WACC
First step is to calculate the After tax percentage
After tax percentage=8% *(1-30% tax rate)
After tax percentage=0.08 *0.7
After tax percentage=0.056*100
After tax percentage=5.6%
Second is to calculate the Total capital of all the market value
Common stock 450,000
Debt $350,000
Preferred stock $150,000
Total=$950,000
Third step is to calculate the percentage amount for common stock, debt and Preferred stock
Common stock= $450,000 x 12%
Common stock =$ 54,000
Debt =$350,000 x 5.6%
Debt =$ 19,600
Preferred stock=$150,000 x 10%
Preferred stock=$ 15,000
Hence, the total cost=$54,000+$ 19,600+$15,000
Total cost=$88,600
Last step is to calculate the WACC
WACC = $88,600 / $950,000
WACC = 9.33%
Therefore WACC will be 9.33%
A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $54,500; the land at $51,000, and the parking lot at $19,500. Land should be recorded in the accounting records with an allocated cost of:______
Answer: $40,800
Explanation:
Land should be recorded based on its proportion of the appraised value.
Total appraised value = 54,500 + 51,000 + 19,500
= $125,000
Land allocated cost = Weight of land in appraised value * Total Purchase price
= 51,000/125,000 * 100,000
= $40,800
"Uterine family" is the phrase Margery Wolf uses to describe the family a woman makes by having children though they are not officially recognized as members of the same lineage.
a. True
b. False
Answer:
a. True
Explanation:
The uterine family represents the individual mother and mother children. in other way, it is you, your mother, your siblings, etc
The Uterine family implies the family description that shows the women have the children but they are not officially recorded as a members of the similar lineage
Therefore the given statement is true
An accounting system that accumulates and reports costs incurred by each service department for management to evaluate the performance of a department is a:
Answer:
Departmental accounting system
Explanation:
Departmental accounting system is the system that record all the activities and financial information related to department. The company managers use this financial information from departmental accounting system to check the overall profitability of the department.
the link between home currency value of a firm's assets and liabilities and exchange rate fluctuations is
Answer:
Asset exposure
Explanation:
Asset exposure shows the difference that lies between the exposed assets and the exposed liabilities. Here the long in currency is when the exposed assets are more than its liabilities and on the other hand the short in currency is when the exposed assets are less than its liabilities
In addition to this, the linking that need to be done between the firm asset and liabilities of home currency and the fluctuation in exchange rate would be also known as asset exposure
Brooke-lyn makes all purchases on account, subject to the following payment pattern: Paid in the month of purchase: 30% Paid in the first month following purchase: 65% Paid in the second month following purchase: 5% If purchases for April, May, and June were $200,000, $160,000, and $250,000, respectively, what was the firm's budgeted payables balance on June 30?A. $175,000B. $179,000C. $183,000D. $189,000
Answer:
Total budget payable= $189,000
Explanation:
Giving the following information:
Paid in the month of purchase: 30%
Paid in the first month following purchase: 65%
Paid in the second month following purchase: 5%
Purchases:
April= $200,000
May= $160,000
June= $250,000
Payable balance June:
Purchase from April= (200,000*0.05)= 10,000
Purchase from May= (160,000*0.65)= 104,000
Purchase from June= (250,000*0.3)= 75,000
Total budget payable= $189,000
In the GMP partnership (to which Elan seeks admittance), the capital balances of Mary, Gene, and Pat, who share income in the ratio of 6:3:1, are
Mary $266,400
Gene 133,200
Pat 44,400
Required:
a. If no goodwill or bonus is recorded, how much must Elan invest for a one-third interest?
b. Prepare journal entry for the admission of Elan if she invests $80,000 for a 20 percent interest and goodwill is recorded.
c. Prepare journal entry for the admission of Elan if she invests $200,000 for a 20 percent interest. Total capital will be $600,000; the partners use the bonus method.
Answer:
A. $222,000
B. Dr Cash $80,000
Dr Goodwill 31,000
Cr Elan, Capital $111,000
C. Dr Cash $200,000
Cr Mary, Capital $40,080
Cr Gene, Capital $20,040
Cr Pat, Capital $6,680
Cr Elan, Capital $133,200
Explanation:
A. Calculation to determine how much must Elan invest for a one-third interest
First step is to calculate the 2/3 of the total resulting capital balance of Mary, Gene, and Pat
Mary $266,400
Gene 133,200
Pat 44,400
Total $44,000
Total resulting capital balance=$444,000/2/3)
Total resulting capital balance= $444,000 / .666666
Total resulting capital balance=$ 666,000
Second step is to calculate how much must Elan invest for a one-third interest
Investment for one-third interest= $666,000 x 1/3
Investment for one-third interest=$666,000 x .333333
Investment for one-third interest=221,999.9
Investment for one-third interest=$222,000 (Approximately)
Therefore how much must Elan invest for a one-third interest is $222,000
B. Preparation of journal entry for the admission of Elan if she invests $80,000 for a 20 percent interest and goodwill is recorded.
First step is to calculate the Estimated amount of goodwill to the new partner
Estimated total capital $ 555,000
[($444,000÷(100%-20%)]
Less Total net assets (524,000)
($444,000 + $80,000)
Estimated goodwill to the new partner $31,000
($ 555,000-$524,000)
Now let prepare the journal entry
Dr Cash $80,000
Dr Goodwill 31,000
Cr Elan, Capital $111,000
[(444,,000÷(100%-20%)*20%)]
=($444,000/80%*20%)
=$111,000
C. Preparation of journal entry for the admission of Elan if she invests $200,000 for a 20 percent interest while the Total capital will be $600,000.
First step
Amount Invested in partnership $ 20,000
Less New partner's book value ($133,200)
[($444,000 + $222,000) x .20]
Difference $66,800
($200,000-$133,200)
Now let prepare the journal entry using ratio 6:3:1
Dr Cash $200,000
Cr Mary, Capital $40,080
($66,800 x .60)
Cr Gene, Capital $20,040
($66,800 x .30)
Cr Pat, Capital $6,680
($66,800 x .10)
Cr Elan, Capital $133,200
($666,000 x .20)
Journal entry si the initial recording of the monetary business transactions in the books of accounts. They are recorded in the chronological order. Each business transaction as dual effects in the books of accounts, that is it debits one account and credits another from a single business transaction.
(A) The Elan's Investment for one third interest.
[tex]\bold { = 666,000\times \dfrac {1} {3}}\\\\\bold { = 222,000 }[/tex]
(B) The journal entry for the admission of Elan if she invests $80,000 for a 20% interest and goodwill is recorded.
Estimated total capital $ 555,000
[tex]\bold {= \dfrac {444,000}{(100-20)}}[/tex]
Less Total net assets (524,000)
($444,000 + $80,000)
Estimated goodwill to the new partner $31,000
($ 555,000-$524,000)
Now the Journal entry,
Dr Cash- $80,000
Dr Goodwill- 31,000
Cr Elan, Capital- $111,000
[tex]\bold {\dfrac {(444,000}{(100-20)}\times 20)}\\\\\bold {=111,000}[/tex]
(C) The journal entry for the admission of Elan if she invests $200,000 for a 20%.
Amount Invested in partnership $ 20,000
Less New partner's book value ($133,200)
[tex][(\bold {444,000 + 222,000) \times 20 }[/tex]
Difference- $66,800
($200,000-$133,200)
The Journal entry, in the ratio 6:3:1
Dr Cash - $200,000
Cr Mary, Capital- $40,080
[tex]\bold {(66,800 \times 60)}[/tex]
Cr Gene, Capital- $20,040
[tex]\bold{(66,800 \times 30)}[/tex]
Cr Pat, Capital- $6,680
[tex]\bold {(66,800 \times 10)}[/tex]
Cr Elan, Capital- $133,200
[tex]\bold {(666,000 \times 20)}[/tex]
Therefore, Journal entry is the intial recording of the monetary business transactions in the books of accounts. They are reocrded in the chronological order. Each business transaction as dual effects in the books of accounts, that is it debits one account and credits another from a single business transaction.
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When companies purchase technology from Conversica to reduce the variability of the human component of their service offerings, they are dealing with which fundamental difference of services marketing?
Answer:
Companies purchase technology to reduce the variability of the human component of their service offerings. When they do this, they are dealing with the fundamental difference of heterogeneity of services marketing.
Explanation:
Service offerings are never the same. However, the presence of technology reduces this variability (heterogeneity) caused by the human component. The other fundamental differences between goods and service offerings are intangibility, inseparability, and perishability.
Services are businesses that are rendered through the efforts of humans. For Conversica to reduce the variability of the human component of their service offerings, they are dealing with;
HeterogeneityWhen people receive services from some businesses, they expect that they will always receive the same standard of care.
When people receive different standards of care, they can be turned off and seek better services from other businesses.
There should be no heterogeneity or variability in the standards of care. This is what Conversica is trying to avoid.
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Economic ordering quantity with safety stock (LO5) Diagnostic Supplies has expected sales of 84,100 units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order.
a. What is the economic order quantity?
b. What is the average inventory? What is the total carrying cost?
c. Assume an additional 80 units of inventory will be required as safety stock. What will the new average inventory be? What will the new total carrying cost be?
Answer:c. Assume an additional 80 units of inventory will be required as safety stock. What will the new average inventory be? What will the new total carrying cost be?
Explanation:
Answer:
"Diagnostic Supplies has expected sales of 84,100" units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order.
Explanation:
What type of special title insurance policy covers the possibility of a mechanic's lien have priority over a mortgage or deed of trust
Answer:
Depending on the state this type of coverage is called slightly different names. E.g. in Colorado, this type of coverage in included under Comprehensive Coverage. In other states it is simply called Mechanic's Lien Coverage. Most title insurance companies that are registered in ALTA (American Land Title Association) offer some type of mechanic's lien coverage since it is one of the most common sources of litigation regarding real estate.
Mechanic's liens have priority over other types of liens and they are retroactive to the moment when the construction process began. E.g. the contractor started working on January 2, 2020, and decides to file a claim due to unpaid services on November. So the mechanic's lien is retroactive to January 2, 2020. If a mortgage was recorded on June, the mechanic's lien will have priority even though it was recorded at a later date.
EvenFlo Pipes forecasts a small increase in sales next year. To achieve this growth in sales, however, the firm must purchase an amount of plant and equipment that is more than double the increase in sales. What is the most likely reason EvenFlo must purchase such a large amount of fixed assets
Answer: a. The firm must purchase lumpy assets to achieve the increase in sales.
Explanation:
EvenFlo Pipes needs to sell more pipes in order to see an increase in sales. Assuming they are the producers, they will need to produce more pipes than they have been doing and this will need them to increase their production capacity.
To do so they would have to invest in fixed assets as these are what produce pipes. This is why the firm will have to purchase lumpy assets that will help them produce and sell more pipes.
The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year 2012 are as follows: January 1 finished goods, $765,000; December 31 finished goods, $640,000; cost of goods sold for the year, $2,560,000. The budgeted costs of goods manufactured for the year is?a. $2,560,000b. $3,965,000c. $2,435,000d. $1,405,000
Answer:
d. $2,435,000
Explanation:
To calculate the cost of goods manufactured, we need to use the formula below;
Cost of goods sold = Beginning finished inventory + Cost of goods manufactured - Ending finished goods
$2,560,000 = $765,000 + Cost of goods manufactured - $640,000
Cost of goods manufactured = $2,560,000 - $765,000 + $640,000
Cost of goods manufactured = $2,435,000
What is the problem with ISPs, which are private business firms, charging whatever they want to charge and that the market will bear
Answer:
The concern as set out in the scenario was indeed presented below.
Explanation:
The major issue has always been that the globe's largest ISPs were only ever some very corporations and would have the authority to monopolize prices. Enough that whenever they're doing, this same employees have no problem with paying what others individuals ask for this with the internet connection, and as well as the suppliers were becoming addictive to the use of those same service providers, so that's where they'll pay whichever the ISPs request besides.These are selected account balances on December 31, 2022. Land $155000 Land (held for future use) 220500 Buildings 1074000 Inventory 237000 Equipment 659000 Furniture 152000 Accumulated Depreciation 447000 What is the total amount of property, plant, and equipment that will appear on the balance sheet
Answer:
$1,813,500
Explanation:
According to IAS 16, Property, Plant and Equipment are tangible items that are held for use in production or supply of goods or services, for rental to others or for administrative purposes and are expected to be used during more than one year period.
The total amount of property, plant, and equipment will be calculated as :
Land $155,000
Land (held for future use) $220,500
Buildings $1,074,000
Equipment $659,000
Furniture $152,000
Accumulated Depreciation ($447,000) $1,438,000
Total $1,813,500
With $5,100,000 Paul's will creates a trust with the following provisions: life estate to Jacob (Paul's son) and remainder to Anastasia (Paul's granddaughter and Jacob's daughter). Jacob dies when the value of the trust is $7,650,000.
Required:
When does the generation-skipping transfer result?
Answer:
After the death of Jacob's
Explanation:
Based on the information given we were told that Paul's transfer the life estate to Jacob which means that if Jacob dies when the amount of the trust was $7,650,000 the GENERATION-SKIPPING TRANSFER OF PROPERTY that will occur due to the legal Transfer of the property or inheritance will result after Jacob's death to the beneficiary which are the grandchildren for the sole aim of making sure that the life estate tax are paid and to ensure that the life estate taxes are not paid twice which is why GENERATION-SKIPPING TRUST was created in order to reduce estate taxes.
Therefore the GENERATION-SKIPPING TRANSFER OF PROPERTY will result after the death of Jacob's
Drew gets married in January of 2019 and provides support for his stepdaughter, Melissa, who is 26 years old. Melissa does not earn any income in 2019 since she is a full-time graduate student. Which of the following is true regarding Melissa as a qualifying relative
a. Melissa qualifies based on her age of 26
b. Melissa qualifies based on her earned income
c. Melissa qualified because there is no age limit on qualifying relatives
d. Both B and C are correct
Answer: A. Melissa qualifies based on her age of 26
Explanation:
An age of maturity qualifies an individual to access some rights in the society, especially at matured age ranging from 18-21 years above. Melissa qualifies to enjoy the benefits of Mr Drew based on her age.
To measure system performance, companies use _____, which uses a set of standard tests on one system to compare its performance and capacity to that of other systems.
Answer:
benchmark testing
Explanation:
BENCHMARK TESTING can be regarded as method that is devices in the measurement of set of repeatable quantifiable results which usually taken as a point of reference in comparing products/services in a company. A benchmark must be a repeatable one, and it's application is also found in result testing in comparism of the present as well as well as future software releasees along with benchmarks. It should be noted that To measure system performance, companies use benchmark testing which uses a set of standard tests on one system to compare its performance and capacity to that of other systems.
McCoy's Fish House purchases a tract of land and an existing building for $980,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $2,800. The company also pays $13,600 in property taxes, which includes $8,800 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $4,800 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $49,000 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $4,600 and pays an additional $10,800 to level the land.
Required:
Determine the amount McCoy's Fish House should record as the cost of the land.
Answer:
McCoy's Fish House
The amount McCoy's Fish House should record as the cost of the land is:
$
Explanation:
a) Data and Calculations:
Purchase price = $980,000
Title insurance 2,800
Tearing down old
building 49,000
Salvaged materials (4,600)
Levelling the land 10,800
Total $1,038,000
b) The costs that should be included in the cost of the land include all expenses that are necessary to bring the land to a usable condition. This cost should include the cost of preparing the land for the construction of the new restaurant. The property taxes paid are not necessary expenses that would bring the land to use. That is why they should be excluded, especially since they were paid as unpaid taxes and for the current year.
On January 1, Coronado Corporation had 960000 shares of $10 par value common stock outstanding. On March 31, the company declared a 25% stock dividend. Market value of the stock was $20/share. As a result of this event:_______
a. Key‘s Paid-in Capital in Excess of Par account increased $2,000,000
b. Key’s total stockholders‘ equity was unaffected.
c. Key‘s Stock Dividends account increased $6,000,000.
d. All of these answer choices are correct.
Answer:
d. All of these answer choices are correct.
Explanation:
Based on the information given as a result of this event their Paid-in Capital in Excess of Par account will increased with amount of $2,000,000 while their total stockholders‘ equity will be unaffected and lastly the Stock Dividends account will increased
by the amount of $6,000,000 which is calculated as :
Stock Dividends account=2,000,000 *.20*(25%*20+$10)
Stock Dividends account=2,000,000 *.20*$15
Stock Dividends account=$6,000,000
The physical distribution concept seeks to minimize the cost of distribution for a given customer service level.
a) True
b) False
Answer:
A)True
Explanation:
Physical distribution concept can be regarded as larger distribution process that involves wholesale as well as retail marketing and the physical movement ( transportation as well as storage.) of goods/service. It should be noted that the The physical distribution concept seeks to minimize the cost of distribution for a given customer service level.
Auagaa474 Corporation had sales of $491,300 and average operating assets of $289,000 for the past period. What is the margin that Auagaa474 needed to earn in order to achieve an ROI of 27.2%?
Answer:
16%
Explanation:
Calculation for the margin that Auagaa474 needed to earn in order to achieve an ROI of 27.2%
First step is to calculate the Turnover using this formula
Turnover = Sales ÷ Average operating assets
Let plug in the formula
Turnover= $491,300 ÷$289,000
Turnover=1.7
Now let calculate the margin using this formula
ROI = Margin × Turnover
Let plug in the formula
27.2% = Margin × 1.7
Margin = 27.2% ÷ 1.70
Margin=0.16*100
Margin= 16%
Therefore the margin that Auagaa474 needed to earn in order to achieve an ROI of 27.2% will be 16%
On September 1, Home Store sells a mower (that costs $310) for $610 cash with a one-year warranty that covers parts. Warranty expense is estimated at 9% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $43 in materials taken from the Repair Parts Inventory.
Required:
Prepare the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs.
The preparation of the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs is as follows:
Journal Entries:September 1:
Debit Cash $610
Credit Sales Revenue $610
To record the sales for cash.Debit Cost of goods sold $310
Credit Inventory $310
To record the cost of goods sold.Debit Warranty Expense $55
Credit Warranty Liability $55
To record the warranty expenses and liability.January 24:
Debit Warranty Liability $43
Credit Repair Parts Inventory $43
To record the warranty liability incurred.Transaction Analysis:September 1: Cash $610 Sales Revenue $610
Cost of goods sold $310 Inventory $310
Warranty Expense $55 Warranty Liability $55 ($610 x 9%)
January 24: Warranty Liability $43 Repair Parts Inventory $43
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