Answer: Immediately give the check to her employee broker
Explanation:
A broker is a person or firm that works between an investor and a stock exchange as an intermediary,
On behalf of a customer, discount brokers conduct transactions, but usually don't offer trading advice. Execution services as well as personalized investment advice and strategies are offered by full-service brokers.
A corporation has 25,000 shares of $10 par stock outstanding. How many shares would be outstanding after a 5-for-1 stock split
Answer:
125,000
Explanation:
When a 5-for-1 stock split takes place, for every outstanding stock, 4 more are created. In this case, there are 25,000 outstanding stocks, which means that 25,000 x 4 = 100,000 more will be issued. In total, 25,000 + 100,000 = 125,000 stocks will be outstanding after the stock split.
A young worker is starting her first job at a research lab. She spent four years
in college getting a degree in biology to prepare her for the career she
wanted. Then, she applied for a job at the lab and negotiated a good salary
for herself after she was hired.
This young worker is most likely part of which economic system?
A. Command economy
B. Market economy
C. Mixed economy
D. Traditional economy
Answer: Market economy
Explanation: A P E X
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 $444,000
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 the 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 goodwill Estimated amount 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)
Preparation of 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)
Preparation of 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)
Good internal controls over the write-off of uncollectible accounts include appropriate review of ________ by management to ensure the appropriateness of the transaction.
Answer: c. cash receipts journal
Explanation:
Good internal controls over the write-off of uncollectible accounts include the company reviewing the cash receipts journal to ensure that the uncollectible accounts should indeed be uncollectible by making sure that the customer has not paid their balance.
This is because there is a chance of fraud if the cash receipts are not checked as an employee might take the cash paid by a receivable and then record that the receivable is uncollectible.
g Cathy Rogers deposits $200 in currency in her checking account at a bank. This deposit is treated as:
Answer: 4) No change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits
Explanation:
The money supply refers to the total amount of money currently in circulation. In this instance it remains the same because no new money was introduced into the economy.
All that has happened is that Ms. Rogers took her $200 which was already in circulation and part of money supply and deposited it in her checking account. The money is therefore still in circulation, just not in immediate cash.
Money supply therefore remains the same.
Total liabilities and stockholders' equity $1,279,600 Accounts payable at the end of December would be:
Answer:
d. $258,700
Explanation:
Note: The full question is attached as picture below
Purchase Budget for December
Particulars Amount
Cost of goods sold (65% of 390,000) $253,500
Add: Desired ending inventory $208,000
(80% of following monthly COGS)
Total inventory required $461,500
Less: Beginning inventory $202,800
Purchases $258,700
Thus, the Accounts payable at the end of December is $258,700
Retained earnings: Multiple Choice Are never adjusted for anything other than net income or dividends. Represents the amount shareholders are guaranteed to receive upon company liquidation. Represent an amount of cash available to pay shareholders. Can only be appropriated by setting aside a cash fund. Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception. PrevQuestion 12 of 20 Total12 of 20Visit question map
Answer:
Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception
Explanation:
Retained earning is the balance of a company's profit that is retained after the distribution of dividend declared to it's shareholders.
A company that makes profit at the end of a reporting period usually make dividend declaration to its shareholder. The accumulation of these declarations are then taken out of the profit earned by the company. The balance when dividends declared(since it's inception) by the company is taken out from its profit, including any net losses is known as retained earning.
The following data relate to Department no. 2 of Young Corporation:
Segment contribution margin $480,000
Profit margin controllable by the segment manager 226,000
Segment profit margin 108,000.
On the basis of this information, fixed costs traceable to Department no. 2 but controllable by others are:
a) $122,000
b) $140,000
c) $250,000
d) $370,000
e) not determinable.
Answer:
e) not determinable.
Explanation:
Calculation for the fixed costs traceable to Department no. 2 but controllable by others
Profit margin controllable by the segment manager 226,000
Less Segment profit margin (108,000)
Fixed costs traceable to Department no. 2 but controllable by others $118,000
(226,000-108,000)
Therefore the Fixed costs traceable to Department no. 2 but controllable by others are: $118,000
A production possibilities frontier can shift outward if
Answer:
A production possibility frontier (PPF) illustrates the combinations of output of two products that a country can supply using all of their available factor inputs in an efficient way. One way the PPF can shift outwards is if there is an increase in the active labour supply
Understanding what the team is working on, encouraging wild ideas, and never rejecting an idea simply because it sounds too crazy are examples of _______ at IDEO.
Answer:
Understanding what the team is working on, encouraging wild ideas, and never rejecting an idea simply because it sounds too crazy are examples of _______ at IDEO.
Deviance
Explanation:
At IDEO, deviance is equally encouraged just as conformity is also encouraged. Deviance simply means non conformance to expected ways of doing things. IDEO has recognized the importance of innovation in its product designs. It is important to note that innovation comes in many shapes and sizes, and it is only through diversity in thought that people can recognize opportunities for innovation. This is while it forms teams to bring in the two aspects that encourage innovation: conformity and deviance.
True or False: Raising annual trend growth by 0.5 percentage points would do much more for the next generation than eliminating cyclical fluctuations around the trend
Answer:
False
Explanation:
The cyclical fluctuations around the trend may be higher than the 0.5 percentage points at which the annual trend growth is being raised. This implies that just raising the annual trend growth by a percentage point without due consideration of the cyclical fluctuation rates does not do much good for the next generation. Therefore, holistic consideration should be paid to all factors before final decision is taken.
List the 10 Strategic Points. These should align to one another to create a cohesive study. What is meant by alignment
Answer: Strategic points are Topic, background, statement, sample and location e.t.c
Explanation:
Alignment could be seen or described as when things add up or line up, or work together to meet a specific or same purpose.
The ten(10) Strategic Points are;
- Topic
- Background of the problem/gap
- Statement
- Sample and location
- Research questions
- Hypothesis
- Methodology and design
- Purpose statement
- Data collection
- Data analysis
Suppose a popular band decides to hold a free concert in its hometown. Admission is available on a first-come, first-served basis. This concert is an example of:
Answer: Private good
Explanation:
The main feature of a private good is rivalry and excludabilty. For a private good, when a consumer or when someone consumers or purchases the product, this will privemt others from enjoying such good.
Since the admission of the concert is available on a first-come, first-served basis, Thai means only those that quickly come will benefit while others will be excluded.
This is a private good.
20192018201720162015 Sales$656,856$432,142$358,624$243,135$180,100 Cost of goods sold 337,397 222,192 186,298 125,649 91,851 Accounts receivable 31,726 25,194 24,602 14,199 12,355 Compute trend percents for the above accounts, using 2015 as the base year.\
Answer:
Trend Percent for Net Sales :
2016 = 135.00 %
2017 =199.00%
2018 = 239.9 %
2019 = 364.7 %
Trend Percent for Cost of goods sold :
2016 = 136.7 %
2017 = 202.8 %
2018 = 241.9 %
2019 = 367.33 %
Trend Percent for Accounts receivable :
2016 = 114.9 %
2017 = 199.00 %
2018 = 203.9 %
2019 = 256.7 %
Explanation:
2019 2018 2017 2016 2015
Sales $656,856 $432,142 $358,624 $243,135 $180,100
Cost of goods sold 337,397 222,192 186,298 125,649 91,851 Accounts receivable 31,726 25,194 24,602 14,199 12,355
Trend Percent for Net Sales :
2016 Current Year Sales/ Base year Sales = $243,135 /$180,100
= 135.00 %
2017 Current Year Sales/ Base year Sales = $358,624 /$180,100 = 199.00%
2018 Current Year Sales/ Base year Sales =$432,142 / $180,100
= 239.9 %
2019 Current Year Sales/ Base year Sales = $656,856 /$180,100
= 364.7 %
Trend Percent for Cost of goods sold :
2016 Current Year CGS/ Base year CGS = $125,649 /91,851 = 136.7 %
2017 Current Year CGS/ Base year CGS = $ 186,298 /91,851 = 202.8 %
2018 Current Year CGS/ Base year CGS =$ 222,192/ 91,851 = 241.9 %
2019 Current Year CGS/ Base year CGS= $337,397 /91,851 = 367.33 %
Trend Percent for Accounts receivable :
2016 Current Year A/R/ Base year A/R = $14,199 /12,355 = 114.9 %
2017 Current Year A/R/ Base year A/R= $ 24,602 /12,355= 199.00 %
2018 Current Year A/R/ Base year A/R=$ 25,194 / 12,355 = 203.9 %
2019 Current Year A/R/ Base year A/R = $31,726 /12,355 = 256.7 %
The net effects on the corporation of the declaration and payment of a cash dividend are to increase assets and increase stockholders' equity. increase stockholders' equity and decrease liabilities. decrease assets and decrease stockholders' equity. decrease liabilities and decrease stockholders' equity.
Answer:
Decrease assets and decrease stockholders equity
Explanation:
Shareholders of the Company are rewarded for their contribution through dividends.
Declaration and payment of a cash dividend results in the following journal :
Dividend (debit)
Cash (credit)
Thus,
The Owners Equity Decrease whilst the Assets Account (Cash) Decreases
Company is a popular car-wash operation that measures its activity in terms of number of cars washed. Last month, the budgeted level of activity was 1,240 cars washed and the actual level of activity was 1,230 cars washed. The cost formula for the washing expenses is $4.80 per car washed plus $26,000 per month. The actual washing expense was $25,000.
Required:
What was the spending variance for the washing expenses last month?
Answer:
the spending variance is $6,904 favorable
Explanation:
The computation of the spending variance is as follows;
Budgeted Expense is
= 1,230 cars × $4.80 per car + $26,000
= $5,904 + $26,000
= $31,904
And, the actual expense is $25,000
Therefore, the spending variance is
= $31,904 - $25,00
= $6,904
Therefore, the spending variance is $6,904 favorable
A firm is considering the purchase of a $500,000 machine for its business. The machine is expected to increase sales by $237,000. The machine will have a 5 year useful life and will be depreciated over 5 years via the straight line method. There is no salvage value. The firm has a required rate of return of 10% for all new capital investments. The project's pro forma income statement is shown below:
Sales $237,000
Total Cost 137,000
Depreciation 100,000
EBIT $0
Taxes 0
Net income $0
The firm should: ___________
a. Accept the project because the NPV is $2,543
b. Accept the project because the NPV is $10,011
c. Reject the project because the NPV is negative $120,921
d. Reject the project because the NPV is negative $500,000
e. It doesnt matter since the NPV is 0
f. Cant tell since there isnt enough information
Answer:
The firm should: ___________
c. Reject the project because the NPV is negative $120,921
Explanation:
a) Data and Calculations:
Pro Forma Income Statement:
Sales $237,000
Total Cost 137,000
Depreciation 100,000
EBIT $0
Taxes 0
Net income $0
Cost of machine = $500,000
Required rate of return = 10%
Annual revenue from new machine = $237,000
Annual operational costs = $137,000
Annual net cash flow = $100,000
Depreciation expense = $100,000
Annuity factor at 10% for 5 years = 3.791
PV Annuity of $100,000 = $100,000 * 3.791 = $379,100
NPV = $379,100 - $500,000 = $120,900
b) The Net present value of the project is $120,900 (the difference between the total present value of cash inflow of $379,100 and the initial cash outflow of $500,000).
Tara's company has launched a new style of lightweight running shoe. The company recently received some bad publicity. Tara is planning to
rebuild a strong relationship with her customers by Investing in techniques that improve the company's reputation and earn public goodwill.
Tara is looking to Improve her company's reputation through
__________
Incomplete question. The remaining part reads;
Identify the sales promotion technique based on the given scenario.
Answer:
Loyalty Points to Customers.
Explanation:
An important sales promotion technique that fits well into this technique is the sales promotion technique. This technique involves providing some incentives that motivate your aggrieved customers to reconsider coming back to you.
For example, Tara could offer her customers loyalty points which they can redeem as discounts for every pair of the new style of lightweight running shoe. By so doing, she may be able to regain the trust of her customers.
If average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorder point is:
Answer:Reorder point = 700 units
Explanation:
Reorder point (ROP) is the minimum quantity OF inventory that a business should have available in its stock before the inventory is replenished or reordered .
Given
average demand for an inventory item =200 units per day
lead time = three days,
safety stock = 100 units
We have that
Reorder point = (Average daily unit sales x Lead time ) + Safety stock
=( 200 x 3 )+ 100
600 + 100
= 700 units
The minimum quantity of inventory of a stock that a firm should have available before the inventory is replenished. The reorder point is 700 units.
Reorder point (ROP) :
It is the minimum quantity of inventory of a stock that a firm should have available before the inventory is replenished.
Reorder point = (Average daily unit sales x Lead time ) + Safety stock
Given Here,
Average demand for an inventory item = 200 units/day
Lead time = 3 days,
Safety stock = 100 units
Thus,
Reorder Point = ( 200 x 3 )+ 100
Reorder Point = 600 + 100
Reorder Point = 700 units
Therefore, the reorder point is 700 units.
To know more about Reorder point,
https://brainly.com/question/14184995
A financial analyst discovers that Stark Industries has been inappropriately capitalising R&D costs in each year and amortizing them completely over a three-year period on a straight-line basis, beginning in the year after the cost was incurred. A total of $24m, $30m and $36m was inappropriately capitalised for fiscal years 2017, 2018 and 2019, respectively. At the financial year end of 30 June 2019, it had total assets of $280m. Net income was $20m for fiscal 2019. Ignore tax effects for this question.
Required:
a. Compute the amount of total asset and expense misstatement (over or understatement) in each period and provide your answer in the boxes provided below. Show all workings in the spaces provided.
b. Which other account(s), if any, will be mis-stated as a result of the above accounting treatment at the end of fiscal 2019?
c. Prepare the journal entries for correcting the misstatements that arise from the inappropriate capitalisation of R&D at the end of fiscal 2019. Note: Extra space for the journal entries has been provided below
Answer:
Stark Industries
a. Amount of total asset overstatement and expense understatement:
Total Asset and Expense Misstatements:
Assets Expenses
Overstatement Understatement
2017 $24m ($24m -$0) $24m
2018 $46m (24 -8 + 30)m $22m ($30m- $8m)
2019 $64m (46 -18 + 36)m $18m ($36m - $18m)
b. The Retained Earnings account will be misstated as a result of the above accounting treatment at the end of fiscal 2019.
c. Journal Entries:
June 30, 2019:
Debit R&D expense $82m
Credit Total assets $64m
Credit Amortization Expense $18m
To correct the R&D amortization and inappropriate capitalization.
Explanation:
a) Data and Calculations:
30 June 2019:
Total assets = $280m
Net income = $20m
Amortization R&D Amount
Expense Costs Capitalized
2017 $0 $24m $24m ($24m - $0)
2018 $8m $30m $46m ($24m - $8m + $30m)
2019 $18m $36m $64m ($46m - $18m + $36m)
Calculation of amortization expenses:
2017 R&D costs = $24m/3 = $8m
2018 R&D costs = $30m/3 = $10m
2019 R&D costs = $36m/3 =$12m
On December 1, Year 7, Gelt Corporation declared a dividend and distributed to its sole shareholder a parcel of land that was not an inventory asset. On the date of the distribution, the following data were available: Adjusted basis of land $ 6,500 Fair market value of land 14,000 Mortgage on land 5,000 For the year ended December 31, Year 7, Gelt had earnings and profits of $30,000 without regard to the dividend distribution. If the mortgage on the land was assumed by the sole shareholder, by how much should the dividend distribution reduce Gelt's earnings and profits
Answer:
The amount by which the dividend distribution should reduce Gelt's earnings and profits is $1,500.
Explanation:
The mortgage on the land was assumed by the sole shareholder, the amount by which the dividend distribution should reduce Gelt's earnings and profits can be calculated using the following formula:
Amount of expected reduction in Gelt's earnings and profits = Adjusted basis of land - Mortgage on land ................. (1)
Where;
Adjusted basis of land = $6,500
Mortgage on land = $5,000
Substitute the values into equation (1), we have:
Amount of expected reduction in Gelt's earnings and profits = $6,500 - $5,000 = $1,500
Therefore, the amount by which the dividend distribution should reduce Gelt's earnings and profits is $1,500.
The only thing a firm can and should do to balance the conflicting demands of being agile in a dynamic environment is to design systems and processes that can identify, assess, and develop technology based opportunities.
a. True
b. False
Answer:
b. False
Explanation:
By saying that's the "only thing a firm can and should do" makes the statement untrue because, in a scenario where there is conflicting demand, the firm may employ other methods.
suppose that the city of springfield decides to regulate the company. if the city requires the monopoly to charge a normal profit price, the company will charge
Answer:
The monopolist company will charge $7 and sell 90 units.
Explanation:
If the city of Springfield regulates the monopolist, it will require the company to charge a price of $7, which is the normal profit price, according to the attached diagram. Ordinarily, the monopolist, if unregulated, may decide to increase the price it charges to $10. At such a price, there is no market equilibrium. But monopolists are better regulated for the market to achieve equilibrium in the market supply and demand of the goods or services.
Doug's Boat Shop, Inc. reports operating income of $260,000 and interest expense of $31,200. The average common stockholders' equity during the year was $50,000. The beginning assets balance is $115,000 and ending assets balance is $180,000. What is the leverage ratio
Answer:
2.95
Explanation:
Given that;
Beginning assets = $115,000
Ending assets = $180,000
Operating income = $260,000
Interest expense = $31,200
Average common stockholder equity = $50,000
Average total assets ;
= (Beginning assets + Ending assets) ÷ 2
= ($115,000 + $180,000) ÷ 2
= $147,500
Therefore,
Leverage ratio = Average total assets ÷ Average common stockholder equity
Leverage ratio = $147,500 ÷ $50,000
Leverage ratio = 2.95
What economic problem did many countries face as a result of world war 2
Answer:
trade deficits, lack of investment capital, and wide gaps between rich and poor
Explanation:
If the expected rate of return on the market portfolio is 12% and T-bills yield 6%, what must be the beta of a stock that investors expect to return 10%?
Answer:
the beta of the stock is 0.67
Explanation:
The computation of the beta of the stock is shown below
As we know that
As per CAPM model
Expected rate of return = risk free rate + beta × (market rate of return - risk free rate)
0.10 = 0.06 + beta × (0.12 - 0.06)
Beta = 0.04 ÷ 0.06
= 0.67
Hence, the beta of the stock is 0.67
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Arthur is a California resident. He was ordered to pay $2,000 in alimony and $3,000 in child support to his former spouse. He meets all the requirements when paying his support. What amount can Arthur take as a deduction for these payments
Answer: $2000
Explanation:
Alimony is referred to as a financial support that is given to an individual when there is a divorce. This is usually an order from the court
Based on the question above, we should note that no amount should be removed from the child support as they're not deductible. Therefore, the amount that Arthur can take as a deduction for these payments would be $2000.
Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $15,500. If the issuing corporation redeems the bonds at 98 1/2, what is the amount of gain or loss on redemption
Answer:
Loss on Redemption = $500
Explanation:
Gain or Loss on redemption:
Par value of Bonds $1,000,000
Less: Discount on bonds $15,500
Book Value of Bonds $984,500
Less: Redemption value $985,000 ($1,000,000 * 98.50%)
Loss on Redemption $500
In order to evaluate risk, management may also set qualitative risk classes. Rank these four projects from least risky to most risky, all other things being equal. Completely new market in United States. Completely new market in South America. Addition to normal product line. Repair to old machinery.
Answer:
Ranking projects from least risky to most risky:
1. Repair to old machinery.
2. Addition to normal product line.
3. Completely new market in United States.
4. Completely new market in South America.
Explanation:
As can be seen from the above scenario, the risk profile increases as the company's activities move away from the known, controllable, and internal arenas to the unknown, uncontrollable, and external arenas. This implies that increasing uncertainty induces more risk.
"An investor expects a return of 14.7% on her portfolio with a beta of 1.13. If the expected market risk premium decreases from 8% to 7%, what return should she now expect on the portfolio?"
Answer:
13.57%
Explanation:
Calculation for what return should she now expect on the portfolio
Expected return = 14.7% + 1.13(7% − 8%)
Expected return = 14.7%+1.13(-1%)
Expected return = 14.7%-1.13
Expected return = 13.57%
Therefore the return she should expect now on the portfolio will be 13.57%
