Answer:
D. the National Labor Relations Board
Explanation:
The National Labor Relations Board would be empowered by the national labor relations act who has the responsibility for holding the elections in which the labor would decide whether they want to join the union or as represented by one
Now for approaching to the board for an election purpose there is a requirement to represent the enough proof from the workers so here AUW have to gather the sufficient signature of the employee
Marketing activities enable consumers to become aware of products or services, and they hopefully provide the information necessary for each buyer to identify the one brand or model that will be most appropriate for them to purchase. Such marketing activities include promotion, advertising, and public relations, as well as supply chain activities to ensure products are available at retail outlets convenient to customers. Which of the following reasons to study marketing captures the various marketing activities described?
a. Marketing plays an important role in society.
b. Marketing can be used in everyday life.
c. Marketing offers outstanding career opportunities.
d. Marketing is important to business.
Answer:
d. Marketing is important to business.
Explanation:
The reason that captures all of the activities is that Marketing is important to business. It may actually be the most important aspect of an entire business because without it a company would not have a customer base to sell their products and services to, which would ultimately cause them to fail. Marketing makes potential customers aware of the product/service and persuades them into trying it out, which can lead to new loyal customers.
Which one is a disadvantage of the process structure? *
More competition among departments
More flexibility in responding changes
Add and delete divisions
More focus on customers
Answer: Add and delete divisions
Explanation:
The process structure in organizations is when the organization is divided into different departments such that they're all related to each other for organizational goals to be achieved.
The divisions can include sales, research, manufacturing etc. It brings about more competition among the departments, focuses on customers and brings about flexibility.
Therefore, the disadvantage will be "Add and delete divisions".
Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.
Required:
For each of the following scenarios, determine the appropriate way to report the situation. Explain your reasoning and record any necessary entry.
a. The likelihood of a payment occurring is probable, and the estimated amount is $1.2 million.
b. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $1 to $l.5 million.
c. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.2 million.
d. The likelihood of a payment occurring is remote, while the estimated potential amount is.$1.2 million.
Answer:
A Contingent liability is recorded in the books if the loss is probable and the amount can be estimated.
a. The loss is probable and the amount can be estimated:
DR Loss $1,200,000
CR Contingent Liability $1,200,000
b. Loss is probable and the amount is estimated in a range. Take the lower limit of the range:
DR Loss $1,000,000
CR Contingent Liability $1,000,000
c. Loss is not probable but rather reasonably possible. Contingent liability is not recorded but disclosed in full in the footnotes.
d. Loss is remote. Do not record in books and Disclosure is not required.
The Agricultural Extension Agent's Office has tracked fertilizer application and crop yields for a variety of chickpea and has recorded the data shown in the following table. Their staff statistician developed the regression model and computed the performance statistics displayed below the data.
Fertilizer 10 15 Bushels
10 80
15 115
20 220
25 250
30 225
FERTILIZER APPLICATION VERSUS YEILD Summary
Measure Value
Error Measures
Cumulative forecast error 0
MAD (Me an Absolute Deviation) 28.6
MSE (Mean Squared Error) 933.5
Standard Error (denom=n-23) 39.44
MAPE (Me an Absolute Percent Error) 16
Regression line BUSHELS = 8
+ 8.5* FERTILIZER
Statistics
Correlation coefficient .89
Coefficient of determination (12) .79
1. For every unit of fertilizer applied, the crop yield increases by:_________.
A. 8.0 bushels.
B. 8.9 bushels.
C. 8.5 bushels.
D. 7.9 bushels
2) What percent in the variation of the variable Bushels is explained by the value of the variable Fertilizer?
3) The value of Bushels when Fertilizer is 60 is:__________.
4) The value of Fertilizer required to generate 100 bushels yield must be:___________.
5) If the correlation coefficient were negative, what would also be true?
Answer:
Following are the solution to the given points:
Explanation:
In point 1:
The yield added by the regression equation increases 8.5 times of per each unit of fertilizer.
In point 2:
Definition i.e. [tex]R^2[/tex] describes the percentage of variation. Consequently, the value of Fertilizer variable describes 0.79 percent throughout the variance of the Bushels variable.
In point 3:
At [tex]60 \times 8.5 +8 = 518[/tex], Bushels has an fertilizer of 60.
In point 4:
The fertilizer should be 100 when bushels are:
[tex]\to 100= 8+ Fertilizer \times 8.5 \\\\ \to Fertilizer= 10.82 units[/tex]
In point 5:
Increased that amount of fertilizer will reduce the amount of bushels unless the value of determination was negative.
Which of the following is something you should NOT do during negotiations?
a. Identify and prioritize discussion items and concerns.
b. Listen attentively while others contribute to the discussion.
c. Reveal specific findings or numbers to the contractor.
d. Probe and question until satisfied with the result.
Answer:
c. Reveal specific findings or numbers to the contractor.
Explanation:
The following things should do:
a. The identification and the discussion items should be prioritized
b. Listen attentively and on the other hand, the other contributes to the discussion
c. The probe and question till satisfied with the result
But for disclosing the particular finding to the contractor should not to be done
Therefore the option c is correct
The trial balance of My Motor, Inc. on March 1, 20XX, lists the entity's assets, liabilities, and owner's equity on that date.
Account Title Debit Credit
Cash 26,000
Accounts receivable 4,500
Accounts payable 2,000
Common Stock 20,500
Retained earnings 8,000
Total 30,500 30,500
During March, the business engaged in the following transactions:
a. Borrowed $45,000 from the bank and signed a note payable in the name of the business.
b. Paid cash of $40,000 to acquire land.
c. Performed service for a customer and received cash of $5,000.
d. Purchased supplies on account, $300.
e. Performed customer service and earned revenue on account, $2,600.
f. Paid $1,200 on account.
g. Paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400.
h. Received $3,100 on account.
i. Received a $200 utility bill that will be paid next week.
j. Paid cash dividends of $1,800.
Required
a. Prepare journal entries for each transaction. Key journal entries by the transaction letter
b. Prepare the trial balance of My Motors, Inc. at March 31, 20XX
c. Prepare financial statements for My Motors, Inc. for the period ending March 31, 20XX. (Balance sheet and Income statement)
Answer:
Realidades 2 WKBK page 109
Explanation:
Realidades 2 WKBK page 109
Kara Williams is the new controller for Colors, a designer and manufacturer of sportswear. Shortly before the December 31 fiscal year-end, Lashea Lucas (the company president) asks Williams how things look for the year-end numbers. Lucas is not happy to learn that earnings growth may be below 10% for the first time in the company's five-year history. Lucas explains that financial analysts have again predicted a 12% earnings growth for the company and that she does not intend to disappoint them. She suggests that Williams talk to the assistant controller, who can explain how the previous controller dealt with this situation. The assistant controller suggests the following strategies:
a. Postpone planned advertising expenditures from December to January.
b. Do not record sales returns and allowances on the basis that they are individually immaterial.
c. Persuade retail customers to accelerate January orders to December.
d. Reduce the allowance for bad debts (and bad debts expense).
e. Colors ships finished goods to public warehouses across the country for temporary storage until it receives firm orders from customers. As Colors receives orders, it directs the warehouse to ship the goods to nearby customers. The assistant controller suggests recording goods sent to the public warehouses as sales.
Requirement
Which of these suggested strategies are inconsistent with IMA standards? What should Williams do if Lucas insists that she follow all of these suggestions?
Answer:
1. Suggestions that are inconsistent with IMA standards are:
a. Does not violate IMA standards.
b. Is inconsistent with IMA standards.
c. Does not violate IMA standards.
d. Is not clear whether it would violate IMA standards.
e. Is inconsistent with IMA standards.
2. This is what Kara Williams should do if Lucas insists that she follow all of the suggestions:
Kara Williams should resist the attempt to implement b and e and should gather more information about d. If Lucas ignores Williams, then Williams should consider if she wants to continue working for a company that engages in unethical behavior.
Explanation:
The Institute of Management Accountants (IMA) has ethical standards that should be followed by its members. These standards or principles include professional competence, integrity, credibility, and confidentiality. The most relevant principles, in this situation, are integrity and credibility. Integrity requires that members must not engage in activities that will expose the profession to public ridicule or unethical practices. Credibility requires fair and objective presentation and communication of financial information to stakeholders.
Geraldine is a self-employed consultant in St. Louis, Missouri. She traveled to San Francisco, California, in June and spent two weeks meeting with clients located in the area. She stayed an extra two days on vacation exploring the Bay Area. Which of the following is NOT a deductible business expense on Geraldine's return?
a. Airfare to and from San Francisco.
b. The cost of taking a taxi from her hotel to a client's place of business.
c. The meals and lodging for the extra two days.
d. Any of her meals or lodging, since she tacked on personal vacation days at the end of her trip.
Answer:
c. The meals and lodging for the extra two days.
Explanation:
All other expenses are directly related for the business purpose and there is no luxurious payment made. The extra two days stayed for vacation is the only non-business item, so only that portion of meal and loading expenses will not be treated as business expenses.
As an indicator of an impending recession, inventories will most likely:___________.
A. decrease as a result of a decrease in consumption
B. decrease as a result of an increase in aggregate supply
C. increase as a result of a decrease in aggregate supply
D. increase as a result of a decrease in consumption
E. remain constant as a result of economic uncertainty
Answer:
D. increase as a result of a decrease in consumption
Explanation:
Economics can be classified into two (2) categories, namely;
I. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, recession, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
2. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets. It is focused on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.
Hence, as an indicator of an impending recession, inventories will most likely increase as a result of a decrease in consumption and general decline or fall in economic activities in the society.
Answer:d
Explanation:
What would sell more (both stores are just now opening.): a "in-trend" jewelry store or a Simplistic lip gloss shop?
Answer:
The lip gloss shop
Explanation:
Because a trend last for a short amount of time meaning you have to restock on so many new products all the time wasting more and more money, as to the lip glosses all colors can be sold or always be in style.
Slapshot Company makes ice hockey sticks and sold 1,880 sticks during the month of June at a total cost of $433,000. Each stick sold at a price of $400. Slapshot also incurred two types of selling costs: commissions equal to 10% of the sales price, and other selling expense of $65,000. Administrative expense totaled $53,800.
Prepare an income statement for Slapshot for the month of June
Answer:
$125,000
Explanation:
Preparation of an income statement for Slapshot for the month of June
Sales revenue $752,000
(1,880 x $400)
Less Cost of goods sold ( $433,000)
Gross margin $319,000
($752,000-$433,000)
Less Selling expense ($65,000)
Less Commissions ($75,200)
($752,000 x 10%)
Less Administrative expense ($53,800)
Operating income $125,000
Therefore income statement for Slapshot for the month of June will be $125,000
Ricardo uses his personal vehicle in his sole proprietorship. He keeps no records of any kind regarding his business use of the car and doesn't really know for certain when and where he used the automobile for business. Which of the following is correct?
a. Juan should deduct a good-faith estimate of his expenses for the auto as a business expenses.
b. Juan should estimate his total vehicle expenses for the year, then deduct 50% of that amount as business expense.
c. Juan could have leased a comparable vehicle for $3,600 for 2016. Therefore, he should deduct $3,600 as a business expense.
d. Juan cannot deduct any vehicle expenses because he has no record of his expenses.
Answer: d. Juan cannot deduct any vehicle expenses because he has no record of his expenses
Explanation:
A sole proprietorship is a form of business that is owned and controlled by one person.The person enjoys the profit alone and bears the risk alone as well.
Since we are given the information that he keeps no records of any kind regarding his business use of the car and doesn't really know for certain when and where he used the automobile for business, this means that Juan cannot deduct any vehicle expenses because he has no record of his expenses.
We should note that for a deduction to be made, the details of how the vehicle is used for business purposes would be required. Since he doesn't have it, he can't deduct any vehicle expenses.
The following information pertains to the Lurkins Company:
Sales price per unit = $300;
Variable cost per unit = $220;
Total fixed costs = $500,000;
Net income = $100,000.
What were unit sales for the company?
Answer: 7500
Explanation:
Let x be the number of units sales for the company.
Total sales = 300x [ Sales price per unit x number of units]
total variable cost = 220x [ Variable cost per unit x number of units]
Total sales - Total variable cost - Total fixed cost = Net income
[tex]\Rightarrow\ 300x-220x-500000=100000\\\\\Rightarrow\ 80x= 600000\\\\\Rightarrow\ x=\dfrac{600000}{80}\\\\\Rightarrow\ x=7500[/tex]
Hence, 7500 units sales for the company.
After creating a business plan, what is the next step for starting a business?
A. Opening up shop for business
B. Getting funding for the business
C. Implementing a business structure
D. Deciding what business to start
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Answer: B
Explanation: you have to have a fund when starting a business it’s what gets you pretty much everything.
After creating a business plan, the next step for starting a business is Getting funding for the business. The appropriate response is option B.
What is a business plan?The operational and financial goals of a business are outlined in a business plan. It is a company's success road map, complete with specific plans and finances outlining how the goals will be achieved.
A business plan is used to govern an organization by outlining goals, the methods for achieving them, and the deadlines for doing so. The strategy will also aid in summarizing the goals, objectives, and purpose of the company.
Start measuring and testing your assumptions. Your strategy hasn't been tried yet and is only an idea. You must now assess how well your business plan performs in practice. Start looking for measurable, actionable items.
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Match each tax form to its purpose.
Form 1098-E
Form 1098-T
Form 1099-DIV
Form 1099-INT
shows interest income
shows income from dividends
shows interest paid on a student loan
shows tuition payments
Answer:
Form 1098-E ⇒ shows interest paid on a student loan
This form is used by taxpayers to deduct student loan interests.
Form 1098-T ⇒ shows tuition payments
This form is used by taxpayers to claim education credits.
Form 1099-DIV ⇒ shows income from dividends
This form is used by taxpayers to report dividends.
Form 1099-INT ⇒ shows interest income
This form is used by taxpayers to report interest income.
You give your pajama-factory workers a $5 raise (per hour), and you also praise them generously for their hard work. They promptly produce 50 percent more pajamas. You assume this is due to the raise you gave them. Instead, you may be experiencing:________
a. McGregor's Theory Y.
b. the Hawthorne effect.
c. Maslow's survival needs.
d. Self-fulfilling prophecy.
Answer:
a. McGregor's Theory Y.
Explanation:
McGregor developed a a theory of motivation in the workplace.
Theory X is an authoritarian management battle where employees have little creativity and expect to be told what to do.
Theory Y is more participative. Employees take responsibility for their deliverables in an environment that encourages motivation.
Employee creativity is encouraged under theory Y.
In the given scenario the employees were praised generously. If this motivated them to produce 50% more Panama's, then we are experiencing McGregor's theory Y.
Berkshire Inc. uses a periodic inventory system. At the end of 2017, it missed counting some inventory items, resulting in an inventory understatement by $610,000. Assume that Berkshire has a 30% income tax rate and that this was the only error it made. If undetected, what is the effect of this error on Berkshire's December 31,2017 balance sheet
Answer:
Since the inventory was understated, that means that the cost of goods sold was overstated. Since the COGS was higher, gross profits and operating income were lower. This results in lower than income taxes, and lower net income.
Lower net income results in understated retained earnings (by $427,000), also taxes payable, a liability, will also be understated by $183,000. On the other side of the balance sheet, assets ill be understated by $610,000.
Explanation:
Oak Interiors is owned and operated by Fred Biggs, an interior decorator. In the ledger of Oak Interiors, the first digit of the account number indicates its major account classification (1—assets, 2—liabilities, 3—owner’s equity, 4—revenues, 5—expenses). The second digit of the account number indicates the specific account within each of the preceding major account classifications.
Match each account number with its most likely account in the list that follows. The account numbers are 11, 12, 13, 21, 31, 32, 41, 51, 52, and 53.
Accounts Payable
Accounts Receivable
Cash
Fees Earned
Fred Biggs, Capital
Fred Biggs, Drawing
Land
Miscellaneous Expense
Supplies Expense
Wages Expense
Answer:
Oak Interiors
Matching each account number with its most likely account in the list:
12 - Cash
13 - Accounts Receivable
17 - Land
21 - Accounts Payable
31 - Fred Biggs, Capital
32 - Fred Biggs, Drawing
41 - Fees Earned
51 - Supplies Expense
52 - Wages Expense
53 - Miscellaneous Expense
Explanation:
a) Data and Classifications:
Digits and Accounts:
1—assets
12 - Cash
13 - Accounts Receivable
17 - Land
2—liabilities
21 - Accounts Payable
3—owner’s equity
31 - Fred Biggs, Capital
32 - Fred Biggs, Drawing
4—revenues
41 - Fees Earned
5—expenses
51 - Supplies Expense
52 - Wages Expense
53 - Miscellaneous Expense
b) The chart of accounts of Oak Interiors is where the financial accounting is organized into five major categories. These categories are called accounts. They include assets, liabilities, equity, revenue, and expenses. This implies that all business transactions that are recorded in accounts are summarized under any of these five major headings.
Gutierrez, which uses a process-costing system, adds all material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The information that follows relates to the period just ended: Units started and completed: 75,000 Units in ending work-in-process inventory: 15,000, 60% complete Which of the following choices correctly expresses the total equivalent units of production with respect to material and conversion cost? Material Conversion
A. 130,000 130,000
B. 139,540 139,540
C. 145,900 136,360
D. 145,900 139,540
E. 145,900 145,900
Answer:
Materials ⇒ 90,000 units Conversion ⇒ 84,000 unitsExplanation:
Materials
Material is added at the beginning of production which means that it is complete at period end.
Equivalent unit of production for Materials:
= Units started and completed + Units in ending WIP
= 75,000 + 15,000
= 90,000 units
Conversion
Ending WIP is only 60% complete conversion wise.
Equivalent unit is therefore:
= Units started and completed + Units in ending WIP
= 75,000 + (15,000 * 60%)
= 84,000 units
to make the most of your time you should break up large projects into small pieces true or false
true i think............
The following is a list of account balances for Pick-A-Pet, Inc., as of June 30, Year 3:
Accounts Payable $ 349,200
Accounts Receivable 419,200
Cash 732,600
Common Stock 662,100
Equipment 58,400
Logo and Trademarks 421,600
Long-term Notes Payable 268,900
Retained Earnings 470,100
Software 118,500
The company entered into the following transactions during July, Year 3. Stockholders contribute $300,000 cash for additional ownership shares and the company borrows $150,000 in cash from a bank to buy new equipment by signing a formal agreement to repay the loan in 2 years. No other transactions took place during July, Year 3.
Required:
a. Prepare a classified balance sheet for the company at June 30, Year 3.
b. Show the effects of the July transactions on the basic accounting equation.
c. Prepare the journal entries that would be used to record the transactions.
Answer:
Pick-A-Pet, Inc
a. Classified Balance Sheet as of June 30, Year 3:
Assets
Current Assets:
Cash $1,182,600
Accounts Receivable 419,200 $1,601,800
Equipment 58,400
Software 118,500
Logo & Trademarks 421,600 $598,500
Total assets $2,200,300
Liabilities and Equity:
Current Liabilities:
Accounts Payable $ 349,200
Long-term Liabilities:
Long-term Notes Payable $418,900
Total liabilities $768,100
Equity:
Common Stock 962,100
Retained Earnings 470,100 $1,4322,200
Total liabilities + equity $2,200,300
b. Effects of the July transactions on the basic accounting equation:
Assets = Liabilities + Equity
1. Stockholders contribute $300,000 cash for additional ownership shares
Assets (Cash + $300,000) = Liabilities + Equity (Common Stock + $300,000)
2. Company borrows $150,000 in cash from a bank to buy new equipment by signing a formal agreement to repay the loan in 2 years.
Assets (Cash + $150,000) = Liabilities (Long-term Notes Payable + $150,000) + Equity
c. Journal Entries to record the July transactions:
1. Debit Cash $300,000
Credit Common Stock $300,000
To record the additional capital contribution by stockholders.
2. Debit Cash $150,000
Credit Long-term Notes Payable $150,000
To record the borrowing of cash from a bank, repayable in 2 years.
Explanation:
a) Data and Calculations:
Accounts Payable $ 349,200
Accounts Receivable 419,200
Cash 732,600
Common Stock 662,100
Equipment 58,400
Logo and Trademarks 421,600
Long-term Notes Payable 268,900
Retained Earnings 470,100
Software 118,500
July Year 3 Transactions and Effects on accounts:
Cash 732,600
Common Stock 300,000
Notes Payable 150,000
Cash 1,182,600
Common Stock 662,100
Cash 300,000
Common Stock 962,100
Long-term Notes Payable 268,900
Cash 150,000
Long-term Notes Payable 418,900
Modified account balances:
Cash 1,182,600
Accounts Receivable 419,200
Equipment 58,400
Software 118,500
Logo and Trademarks 421,600
Accounts Payable $ 349,200
Long-term Notes Payable 418,900
Common Stock 962,100
Retained Earnings 470,100
Inflation imposes many costs on the economy: shoe-leather costs, money illusion, menu costs, wealth redistribution, price confusion, future price level uncertainty, and tax distortions. For each of the following statements, determine the associated cost. Be careful! Some of the statements may not go into any of the categories because two categories are missing.
a. A jeweler observes the price of gold rise and wonders if there is a shortage of gold.
b. Carson is angry because the price of donuts increased from $1 to $2 since last week
c. Your grandmother's savings account pays 2% interest, but inflation is 5%.
d. The CEO of GM worries that his revenue received in the future won't cover the expenses he incurs today.
e. Jim is reluctant to sell his stocks at the end of the year.
f. John thinks his new salary in NYC will increase his standard of living
g. Kallie is taking more trips to ATM now that the post.
Answer:
a. A jeweler observes the price of gold rise and wonders if there is a shortage of gold.
Costs imposes by Inflation: Price confusion
b. Carson is angry because the price of donuts increased from $1 to $2 since last week
Costs imposes by Inflation: Menu costs
c. Your grandmother's savings account pays 2% interest, but inflation is 5%.
Costs imposes by Inflation: Wealth redistribution
d. The CEO of GM worries that his revenue received in the future won't cover the expenses he incurs today.
Costs imposes by Inflation: Not associated with listed cost
e. Jim is reluctant to sell his stocks at the end of the year.
Costs imposes by Inflation: Not associated with listed cost
f. John thinks his new salary in NYC will increase his standard of living
Costs imposes by Inflation: Money illusion
g. Kallie is taking more trips to ATM now that the post.
Costs imposes by Inflation: Shoe-leather costs
The given statements would be correctly matched with their inflation costs associated would be as follows:
a). A jeweler observes the price of the gold rise and wonders if there is a shortage of gold. - Price confusion
b). Carson is angry because the price of donuts increased from $1 to $2 since last week. - Menu costs
c). Your grandmother's savings account pays 2% interest, but inflation is 5%. - Wealth redistribution
d). The CEO of GM worries that his revenue received in the future won't cover the expenses he incurs today. - Not associated with the costs listed.
e). Jim is reluctant to sell his stocks at the end of the year. - Not associated with the costs listed.
f). John thinks his new salary in NYC will increase his standard of living - Money illusion
g). Kallie is taking more trips to ATM now that the post. - Shoe-leather costs
Inflation Costs
The various costs imposed by inflation include:
Shoe-leather costsMenu costs.Redistribution of wealth.Money IllusionLoss of purchasing power.Shoe-leather costs are characterized as the cost that one pays through his/her additional time and effort for the same task due to inflation.
While menu costs are associated with the cost born by the firm due to the alteration of the price of the product for the consumers.
Wealth redistribution stands for the transfer of money or wealth possessions from one to another is exemplified through Granny's savings.
Money Illusion is the term that displays the biased tendency of people considering the value in its nominal form instead of the real which makes them think a higher pay scale in a foreign country would increase their lifestyle.
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Ayayai Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $3,000,000 on January 1, 2020. Ayayai expected to complete the building by December 31, 2020. Ayayai has the following debt obligations outstanding during the construction period.
Construction loan-12% interest, payable semiannually, issued December 31, 2019 $1,200,000
Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 840,000
Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 600,000
(a) Assume that Ayayai completed the office and warehouse building on December 31, 2020, as planned at a total cost of $3,120,000, and the weighted average amount of accumulated expenditures was $2,160,000. Compute the avoidable interest on this project. (Use interest rates rounded to 4 decimal places, e.g. 7.5825% for computational purposes and round final answers to O decimal places, e.g. 5,275.) Avoidable Interest $__________.
Answer:
Ayayai Furniture Company
The avoidable interest on this project is:
= $250,909.44
Explanation:
a) Data and Calculations:
Estimated cost of construction = $3,000,000
Construction started on January 1, 2020
Construction expected to complete by December 31, 2020
Debt obligations outstanding:
Construction loan-12% interest, payable semiannually, issued December 31, 2019 $1,200,000
Annual interest payment = $144,000 ($1,200,000 * 12%)
Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 840,000;
Annual interest payment = $84,000 ($840,000 * 10%)
Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 600,000
Annual interest payment = $66,000 ($600,000 * 11%)
Total debt obligations = $2,640,000
Total interest payment = $294,000
Weighted average interest rate = $294,000/2,640,000 = 0.111364
Total cost of construction incurred = $3,120,000
Weighted average amount of accumulated expenditure = $2,160,000
Avoidable interest = Construction loan *12% + (Weighted Average Accumulated Expenditures - Construction loan) *Weighted average interest rate
= $1,200,000 * 12% + ($2,160,000 - $1,200,000) * 11.1364%
= $144,000 + (960,000 *11.1364%)
= $144,000 + $106,909.44
= $250,909.44
b) Avoidable interest is the interest that would not have been incurred assuming that this combination office and warehouse building project was not carried out.
All connecting rooms adjoin, but not all adjoining rooms connect.
Answer:
What do you mean? is that the question?
Your local movie theater earns a total revenue of $40,000 per month when the price of a movie ticket is $8, and it earns a total revenue of $35,000 when the price of a movie ticket is $10. Demand is:______
Answer:
elastic
Explanation:
It is given that the local movie theater gets a revenue amount of $40,000 in a month when the movie ticket price is $8 but it earns a revenue of only $35,000 when the price of the movie ticket increases to $10.
The revenue of the movie theater decreases from $40,000 to $35,000 when the price of movie tickets increases increases form $8 to $10 and so the demand is elastic.
When the demand is unit elastic, the revenue is maximum. It increases when the price increases and the demand is inelastic. Whereas it decreases when the price increases and if the demand is elastic.
The Fitter Snacker company sold 6,435 cases of snack bars in June of the previous year.They are expecting sales to increase by 3% this year.In addition,they are launching a promotional campaign in May,which they expect will increase sales in June by an additional 500 cases.
-What is the sales forecast for June of this year that Fitter Snacker should use?
a. 6,628
b. 7,128
c. 6,935
d. 7,143
Answer:
a. 6,628
Explanation:
Sales forecast for current year June month = 6,435 cases*(1+0.03) = 6,435 cases*1.03 = 6,628.05 cases
Total sales for June in current year = Sales forecast for June + increase in sales due to promotion = 6,628.05 cases + 500 cases = 7,128.05 cases
Brian loves opera and hates rock 'n' roll. Tim loves playing rock 'n' roll music at high volume. Unfortunately, they are next-door neighbors in an apartment building with paper-thin walls.
In this case, (Brian/Tim) imposes a (Positive/Negative) externality on his neighbor in the form of noise pollution.
What command-and-control policy might the landlord impose?
(a) A rule that music could not be played above a certain decibel level
(b) A rental subsidy for those tenants who do not own any musical devices
(c) A tax on rent for those tenants who own speakers
Suppose the landlord lets the tenants do whatever they want.
True or False: According to the Coase theorem, Tim and Brian might not be able to reach an agreement if the transaction costs are high.
(True)
(False)
Answer:
Tim imposes a Negative externality on his neighbor in the form of noise pollution.
The command-and-control policy might the landlord impose is : a) A rule that music could not be played above a certain decibel level
(True)According to the Coase theorem, Tim and Brian might not be able to reach an agreement if the transaction costs are high.
Explanation:
As given ,
Brian loves opera and hates rock 'n' roll. Tim loves playing rock 'n' roll music at high volume.
In this case, Tim imposes a Negative externality on his neighbor in the form of noise pollution.
Because Tim's rock 'n' roll music disturb Brian and it effects negatively because due to Tim's music , Brian is unable to listen opera properly
Now,
The command-and-control policy might the landlord impose is :
a) A rule that music could not be played above a certain decibel level
Now,
If the landlord lets the tenants do whatever they want.
According to the Coase theorem, Tim and Brian might not be able to reach an agreement if the transaction costs are high.
It is True
Because if transaction cost is low , then Tim can pay compensation to Brian for high volume of music . But if transaction cost is high then they can not do any negotiation.
Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 2 bars and the price is $5. In year 2, the quantity produced is 4 bars and the price is $8. In year 3, the quantity produced is 6 bars and the price is $10.
Required:
Using year 1 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year.
Answer:
Nominal gdp in year 1 = $10
Real gdp in year 1 = $10
GDP deflator in year 1 = 100
Nominal gdp in year 2 = $32
Real GDP in year 2 =$20
GDP deflator in year 2 =160
Nominal gdp in year 3 = $60
Real gdp in year 3 = $30
GDP deflator in year 3 = 200
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
Nominal GDP = current year price x quantity produced
Real GDP = base year price x quantity produced
GDP deflator = (nominal GDP / real GDP) x 100
Nominal gdp in year 1 = (2 x $5) = $10
Real gdp in year 1 = (2 x $5) = $10
GDP deflator in year 1 =( $10 /$10 ) x 100 = 100
Nominal gdp in year 2 = (4 x $8) = $32
Real GDP in year 2 = 4 x $5 = $20
GDP deflator in year 2 = ($32 / $20) x 100 = 160
Nominal gdp in year 3 = 6 X $10 = $60
Real gdp in year 3 = 6 x$5 = $30
GDP deflator in year 3 = ($60 / $30) x100 = 200
Barton Corporation, which adds materials at the beginning of production, uses a weighted-average process-costing system. Consider the data that follow. Number of Units Cost of Materials Beginning work in process 40,000 $ 80,600 Started in June 60,000 124,400 Production completed 75,000 Ending work in process 25,000 The company's cost per equivalent unit for materials is:
All of the following statements about flexible spending accounts (FSAs) are TRUE, EXCEPT:
a. A taxpayer can direct a total of $5,000 from both employer and employee funds into a child or dependent care FSA.
b. Contributions are pre-tax.
c. Funds remaining in the account at the end of the year roll forward to the next year.
d. Expenses paid for with FSA dollars cannot be used to calculate a related credit.
Answer:
c. Funds remaining in the account at the end of the year roll forward to the next year.
Explanation:
Flexible spending accounts is created by an employer for the employee and is a type of savings account that allows the account holder with certain tax benefits. The employee is required to contribute some amount from his earnings to the account. Contributions made to this account are deducted from your account thereby decreasing your taxable income.The funds are utilized for payment of qualified expenses.
The funds should be used by the end of the year. But the employer can give grace period of two and half months within which you should completely use the fund and finish it. Sometimes the employer might let you roll over $500 per year from the unused fund from your account.
So funds remaining in the FSA at the end of the year doesn't roll forward to the next year. All other statements are correct.
