Answer:
Lalit- It is a mix of song, dance, and story presentation.
Bharu - It includes singing of Bhajans followed by characters presenting a story connected to day to day life.
All are various forms of arts!
The inflationary spiral explains the causes and effects of high inflation.
The spiral usually begins with an increase in demand. What is the direct effect of this increase?
a. Producers raise prices to continue to make a profit.
b. The government prints more money, lowering the value of money.
c. Workers negotiate with employers to receive more money.
d. Consumers need higher wages to keep up with rising prices.
Answer:
A. Producers raise prices to continue to make a profit.
Explanation:
The direct result of increase in demand is that the producers raise prices to continue to make a profit.
So, option a. is correct.
Inflationary spiralInflation is defined as a broad, gradual increase in the costs of goods and services in a market. An inflationary spiral starts when there is an increase in price, which leads to people requesting pay increases.
The inflationary spiral describes why and how high inflation occurs. Typically, the spiral begins with a rapid growth. The direct result of this increase is that the producers raise prices to continue to make a profit. So, option a. is correct.
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Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery Service during May: Select the accounting equation elements (Assets, Liabilities, Owner's Equity) affected by the transaction. Then, in the "Direction" column, select the impact ("Increases" or "Decreases") on the accounting equation element. Lastly, select the specific account within the accounting equation element that is affected. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by $18,000; Owner's Equity (Katie Wyer, Capital) increases by $18,000.
Element Direction Item
1. Received cash from owner as additional investment, $18,000. Asset Owner's Equity Increases Increases Cash Katie Wyer, Capital
2. Paid advertising expense, $4,850. Liability Increases Katie Wyer, Capital
3. Purchased supplies on account, $2,100. Liability Decreases Accounts Receivable
4. Billed customers for delivery services on account, $14,700. Liability Increases Accounts Payable Liability Decreases Delivery Service Fees
5. Received cash from customers on account, $8,200. Asset Increases Cash Asset Increases Accounts Receivable
Answer:
1. Transaction: Received cash from owner as additional investment $18,000
Accounting equation element: Asset and Equity
Direction: Cash increases Equity increases
Account: Cash and Wyer capital
2. Transaction: Paid advertising expenses $4,850
Accounting equation element: Asset and equity
Direction: Cash decreases Equity decreases
Account: Cash and equity
3. Transaction: Purchase supplies on account $2,100
Accounting equation element: Asset and Liability
Direction: Asset increases Liability increases
Account: Supplies and Accounts payable
4. Transaction: Billed customers for delivery services on account $14,700
Accounting equation element: Asset and Equity
Direction: Asset increases Equity increases
Account: Accounts receivable and equity
5. Transaction: Received cash from customers on account $8,200
Accounting equation element: Asset and Asset
Direction: Cash increases and accounts receivable decreases
Account: Cash and accounts receivable
The following are monthly actual and forecast demand levels for May through December for units of a product manufactured by the D. Bishop Company in Des Moines:_______.
Month Actual Demand Forecast Demand
May 108 100
June 80 104
July 108 101
August 118 104
September 105 104
October 114 104
November 130 105
December 120 107
For the given forecast, the tracking signal = _______ MADs (round your response to two decimal places).
Answer:
4.24
Explanation:
The computation of tracking signal is shown below:-
Month Actual Demand(dt) Forecast Demand (ft) error (dt - ft)
May 108 100 8 8
June 80 104 -24 24
July 108 101 7 7
August 118 104 14 14
September 105 104 1 1
October 114 104 10 10
November 130 105 25 25
December 120 107 13 13
Total 54 102
MADs = 102 ÷ 8
= 12.75
Tracking signal = 54 ÷ 12.75
= 4.24
The tracking signal for the actual and forecast demand levels for May through December for D. Bishop Company is 4.24.
What is a tracking signal?A tracking signal is the ratio of the cumulative sum of the deviations between the estimated forecasts and the actual values of demand to the mean absolute deviations (MADs).
The tracking signal determines the larger deviation (in both plus and minus) of Error in Forecast.
The tracking signal can be calculated with this formula:
Tracking Signal = Accumulated Forecast Errors/Mean Absolute Deviation.
What is Mean Absolute Deviation?The mean absolute deviation is the average of values or more specifically, the difference between the actual values and their average value. The mean absolute deviation (MAD) is used for calculating demand variability.
Data and Calculations:Month Actual Forecast Error Difference
Demand(dt) Demand (ft) (dt - ft)
May 108 100 8 8
June 80 104 -24 24
July 108 101 7 7
August 118 104 14 14
September 105 104 1 1
October 114 104 10 10
November 130 105 25 25
December 120 107 13 13
Total 54 102
MADs (Mean Absolute Deviations) = 12.75 (102 ÷ 8)
Tracking signal = 4.24 (54 ÷ 12.75)
Thus, the tracking signal for the actual and forecast demand levels for May through December for D. Bishop Company is 4.24.
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Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As its cost driver activity changes within the relevant range, which of the following statements is/are correct?
I. As the cost driver level increases, total fixed cost remains unchanged
II. As the cost driver level increases, unit fixed cost increases
III. As the cost driver level decreases, unit variable cost decreases
a. I, II and III are correct
b. I and II only are correct
c. I only is correct
d. II and III only are correct
Answer:
The answer is "Option C".
Explanation:
The Unit variable expenses should remain unchanged, paying no attention to what the price operator is doing. Both variable prices will remain constant, paying little attention to adjustments in the costing system, as adjustments in the costing system may not impact all fixed expenses.
Although full fixed costs will remain constant, paying special heed to changes in the cost engine, group fixed costs will not. Unless the amount of a costing system increases, all operating rates will continue as before, however, the full number of items will increase as well as the operating unit price will reduce.
H. J., Inc., and other customers of Northwestern Bell Corp. alleged that Northwestern Bell had Furnished cash and tickets for air travel, plays, and sporting events and had offered employment to members of the Minnesota Public Utilities Commission in exchange for favorable treatment in rate cases before the commission. A Minnesota statute makes it a felony to bribe public officials. H. J. and other customers brought suit against Northwestern for violation of the criminal bribery statute. Can the customers bring a criminal action?
Answer:
The private cause of action cannot come under the criminal statute. Thus, customers cannot bring the criminal action.
Explanation:
Bribery is an act of providing monetary or non-monetary benefits to an individual in order to influence his decision in one's favor. Bribery is a white collar crime.
The plaintiff are civilians therefore, the action which was alleged under bribery statute of criminal law do not provide any private remedies as it contains no provision for such remedies. Bribery under common law also do not have any cause of action in Minnesota state. Under the Criminal law, the civil action can only be taken if it appears that it was the legislative intent. Since, there was no legislative intent to provide civil cause of action in criminal statute, the customer cannot bring the criminal action.
Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $816,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Worth Company's cost of goods sold for the year is:__________.
a. $804,000.
b. $828,000.
c. $776,000.
d. $552,000.
Answer:
a. $804,000
Explanation:
Preparation of Worth Company's cost of goods sold for the year
Cost of goods manufactured $816,000
Add Beginning finished goods inventory $252,000
Less Ending finished goods inventory ($264,000)
Cost of goods sold $804,000
Therefore Worth Company's cost of goods sold for the year is: $804,000
Civil liberties in Latin America vary. This means that __________. A. everyone across the region has the same civil liberties B. some people have more civil liberties than others C. people in Latin America have no civil liberties D. people in Latin America have the same civil liberties as people in the US
Answer:
Civil liberties in Latin America vary. This means that __________. A. everyone across the region has the same civil liberties B. some people have more civil liberties than others C. people in Latin America have no civil liberties D. people in Latin America have the same civil liberties as people in the US = Answer Is B
Explanation:
Some People Do Have More Rights That Others, Due To Capitalism, And Racism, And Think The Whites Are Most Important, Even Though Some "Not American" People Helped Form What Is Today, I Must Stop Know Before I Start Talking About All That
Answer:
b btw
Explanation:
Rafner Manufacturing identified the following budgeted data in its two production departments. Assembly Finishing Manufacturing overhead costs . $1,200,000 $600,000 Direct labor hours 12,000 DLH 20,000 DLH Machine hours . 6,000 MH 16,000 MH 1. What is the company’s single plantwide overhead rate based on direct labor hours? 2. What is the company’s single plantwide overhead rate based on machine hours? (Round your answer to two decimal places.)
Answer:
Results are below.
Explanation:
Giving the following information:
Total estimated overhead= 1,200,000 + 600,000= 1,800,000
Direct labor hours= 12,000 + 20,000= 32,000
Machine hours= 6,000 + 16,000= 22,000
To calculate the predetermined overhead rate, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Based on direct labor hours:
Predetermined manufacturing overhead rate= 1,800,000/32,000
Predetermined manufacturing overhead rate= $56.25 per direct labor hour
Based on machine hours:
Predetermined manufacturing overhead rate= 1,800,000/22,000
Predetermined manufacturing overhead rate= $81.82 per machine hour
Is your boss right? A. Yes, you can tell by the way the income shares for each factor move in opposite directions over time. B. No, if it were a Cobb-Douglas production function, the income shares would be constant over time. C. The production function cannot be determined without knowing how real GDP changed over time. D. No, if it were a Cobb-Douglas production function, the income shares would change in the same direction over time.
Answer: B. No, if it were a Cobb-Douglas production function, the income shares would be constant over time.
Explanation:
The Cobb-Douglas production function is usually used to show the relationship between capital and labor( can be used for other variables) and how much output they can produce at varying levels.
The thing about the Cobb-Douglas function however, is that it assumes a constant rate of income shares overtime. This country's income on the other hand, sees its income shares fluctuating overtime so the Cobb-Douglas function is not a good representation for them.
You’ve collected the following information from your favorite financial website.
52-Week Price
Div PE Close Net
Hi Lo Stock (Div) Yld % Ratio Price Chg
64.60 47.80 Abbott 1.12 1.9 235.6 62.91 −.05
145.94 70.28 Ralph Lauren
2.50 1.8 70.9 139.71 .62
171.13 139.13 IBM 6.30 4.3 23.8 145.39 .19
91.80 71.96 Duke Energy
3.56 4.9 17.6 74.30 .84
113.19 96.20 Disney 1.68 1.7 15.5 ? .10
According to your research, the growth rate in dividends for Abbott Laboratories for the previous 5 years has been negative 11.5 percent. If investors feel this growth rate will continue, what is the required return for the company's stock?
Answer:
13.48%
Explanation:
Calculation for the required return for the company's stock using this formula
Required return = (D1/P0) +g
Let plug in the formula
Required return = [$1.12(1 + 0.115) / $62.91] + 0.115
Required return= [$1.12(1.115) / $62.91] + 0.115
Required return =(1.2488/$62.91)+0.115
Required return=0.019850580194+0.115
Required return = 0.1348 *100
Required return =13.48%
Therefore the required return for the company's stock will be 13.48
Use the following generalized linear demand relation:
Qe = 680 - 9P + 0.006M - 4PR
Where M is income and PRis the price of a related good, R.
1. From this relation it is apparent that the good is:____.
a. an inferior good.
b. a substitute for good R.
c. a normal good.
d. a complement for good R.
e. both c and d.
2. If M $15,000 and PR $20, the demand function is:______.
A. P = 690 - 9Qd.
B. Qd = 690 - 9P.
C. Qd = 680 - 9P.
D. P = 680 - 9Qd.
E. Qd = 800 - 19 P.
3. If M-$15,000 and Pr- $20 and the supply function is Qs price and quantity are, respectively:______.
A. P $55 and Q = 195.
B. P=$6 and Q = 38.
C. P=$12 and Q = 200.
D. P=$50 andQ = 170.
E. P=$40 and Q =250.
4. If M $15,000 and PR $20 and the supply function is Qs = 30 + 3P, then, when the price of the good is $60:______.
a. there is a shortage of 60 units of the good.
b. there is equilibrium in the market.
c. there is a surplus of 60 units of the good.
d. the quantities demanded and supplied are indeterminate.
5. If M $15,000 and Pr-$20 and the supply function is Qs 30+3P, then, when the price of the good is $40:_____.
a. there is equilibrium in the market.
b. there is a shortage of 180 units of the good.
c. there is a surplus of 180 units of the good.
d. there is a shortage of 80 units of the good.
Answer:
Explanation:
1 .
Qe = 680 - 9P + 0.006M - 4PR
When the price of good R is increased , the demand of good is decreased . That means the demand of another good is increased . It means that goods R is a complement good . Now the coefficient of M is positive that means when income increases , demand of good increases . So the good is a normal good .
Hence good is a normal and complement good of R
option e ) is correct.
2 .
Qe = 680 - 9P + 0.006M - 4PR
Putting the value of M = 15000 and PR = 20
Qe = 680 - 9P + 0.006x 15000 - 4 x 20
Qe = 680 - 9P + 90 - 80 = 690 - 9P
3 .
For equilibrium
supply = demand
30+3P = 690 - 9P
12 P = 660
P = 55
Q = 690 - 9P = 690 - 9 x 55 = 195
4 .
When the price of goods is 60 , it is higher than the equilibrium price , hence demand will shrink and it will be less than supply
quantity demanded = 690 - 9P = 690 - 9 x 60 = 150
quantity supplied = 30+3P = 30 + 3 x 60 = 210
excess supply = 210 - 150 = 60 .
5 .
when price is 40 which is less than equilibrium price
there will be more demand
quantity demanded
= 690 - 9P = 690 - 9 x 40 = 330
quantity supplied = 30+3P = 30 + 3 x 40 = 150
excess supply = 180
1. The good is both a normal as well as a complement for good R.
2. The demand function would be Qd = 690 - 9P.
3. The P is $55 and Q is 195 units.
4. There is a supply surplus of 60 units of the goods.
5. There is a shortage of 180 units of goods due to excess demand.
The good referred to as normal good as M is given positive, which means income increases the quantity of demand would also rise. On the other hand, the good is complementary to R due to the negative relationship that is the price of R increases would create an increase in demand of another good.
The function is given as:
[tex]Qe = 680 - 9P + 0.006M - 4PR[/tex]
Now, by substituting the value of M that is 15000 and PR that is 20 in the above function, it would give:
[tex]Qe = 680 - 9P + 0.006x 15000 - 4*20\\Qe=690 - 9P[/tex]
The equilibrium level is decided when demand equalizes with the supply.
Price at equilibrium would be computed as:
[tex]30+3P = 690 - 9P\\=55[/tex]
Now, equilibrium quantity would be:
[tex]Q = 690 - 9P \\ = 195[/tex]
The excess or surplus of supply would be seen when the price becomes 60. it is because this price would be more than the equilibrium price that is 55, which would decrease the quantity demanded. Thus, it shows that supply in the market is the same but demand falls with increased prices.
Quantity demanded would be:
[tex]Qd = 690 - 9*60 \\ = 150[/tex]
Quantity supplied would be:
[tex]Qs= 30 + 3* 60 \\= 210[/tex]
Finally, the excess supply is:
[tex]Qs-Qd\\=210 - 150 \\= 60[/tex]
When prices fall that is 40 below the equilibrium prices then it would increase the quantity demanded with the same supply in the market.
Calculation of Quantity demanded:
[tex]Qd= 690 - 9 * 40\\ = 330[/tex]
Quantity supplied is computed as:
[tex]Qs = 30 + 3* 40 \\= 150[/tex]
Now the excess of demand would be:
[tex]Qd-Qs\\330-150\\=180[/tex]
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Sheridan Co. wishes to enter receipts and payments in such a manner that adjustments at the end of the period will not require reversing entries at the beginning of the next period. Record the following transactions in the indicated manner and give the adjusting entry on December 31, 2020. (Two entries for each part.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
1. An insurance policy for two years was acquired on April 1, 2020 for $23,000.
2. Rent of $16,800 for six months for a portion of the building was received on November 1, 2020
Answer:
April, 1
DR Prepaid Insurance .............................................................$23,000
CR Cash ........................................................................................................$23,000
Dec, 31
DR Insurance Expense.............................................................$8,625
CR Prepaid Insurance................................................................................$8,625
Working
Insurance expense;
April to December = 9 months
= 23,000 * 9/24 months
= $8,625
Nov, 1
DR Cash ......................................................................................$16,800
CR Deferred rent revenue .....................................................................$16,800
Dec, 31
DR Deferred rent revenue ...................................................$5,600
CR Rent Revenue......................................................................................$5,600
Working
= 16,800 * 2/6 months
= $5,600
Carnes has the following account balances as of December 31, 2017 before an acquisition transaction takes place. Inventory $100,000 Land 400,000 Buildings (net) 500,000 Common stock ($10 par) 600,000 Additional paid-in capital 200,000 Retained earnings 200,000 Revenues 450,000 Expenses 250,000 The fair value of Carnes' Land and Buildings are $650,000 and $550,000, respectively. On December 31, 2017, Riley Company issues 30,000 shares of its $10 par value ($25 fair value) common stock in exchange for all of the shares of Carnes' common stock. Riley paid $10,000 for costs to issue the new shares of stock. Before the acquisition, Riley has $700,000 in its common stock account and $300,000 in its additional paid-in capital account. At the date of acquisition, by how much does Riley's additional paid-in capital increase or decrease? Question 2 options: A) $450,000 increase. B) $640,000 increase. C) $440,000 increase. D) $0. E) $650,000 decrease.
Answer:
C) $440,000 increase.
Explanation:
Particulars Amount
Number of shares issued (a) 30,000
Issued price per shares $25
Less: Par value per shares $10
Paid in capital in excess of par per share (b) $10
Total paid in capital in excess of par (a*b) $450,000
(30,000 shares * $15)
Less: Issue costs $10,000
Increase in additional paid-in-capital $440,000
Pandey Inc. had the following activities during the month:______.
A. Borrowed $890,000 cash, signing a promissory note.
B. Bought a building for $1,180,000, paying $260,000 in cash and signing a promissory note for $920,000.
C. Rented equipment at a cost of $29,000 per month and issued a check covering six months’ rent.
D. Provided $200,000 of services and billed customers.
E. Purchased $68,000 of supplies on account.
F. Received a utility bill for the current period in the amount of $5,000.
G. Raised sales prices on 200 units from $450 per unit to $630 per unit.
H. Received a 50% deposit from a customer on a $58,000 order to be filled next month.
Required:
Analyze each of the activities (A) through (H) above with the goal of indicating their effects on the basic accounting equation by completing the table below. Indicate the accounts and amounts involved. Include a plus (+) or minus (−) sign before each number to show its effect on the accounting equation. If the activity should not to be recorded as a transaction, enter the word "None" in the first column for that activity. AssetsLiabilitiesStockholders' EquityAccount(s)AmountAccount(s)AmountAccount(s)AmountABCDEFGHWhat will be an ideal response?
Answer:
Based on the analysis, the basic accounting equations holds as follows:
Total Assets = Total Liabilities + Total Shareholders' Equity => 2,078,000 = 1,912,000 + 166,000
Explanation:
Note: See the attached excel file for the horizontal analysis.
For event C: Advance payment for Equipment rentals = $29,000 * 5 months = $145,000
All the items under the shareholders’ fund are income statement items that will affect the retained earnings.
The additional note below the horizontal analysis in the excel file shows that accounting equations holds. That is;
Total Assets = Total Liabilities + Total Shareholders' Equity => 2,078,000 = 1,912,000 + 166,000
During March, the production department of a process operations system completed and transferred to finished goods 35,000 units that were in process at the beginning of March and 190,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 50% complete with respect to labor. At the end of March, 27,000 additional units were in process in the production department and were 100% complete with respect to materials and 70% complete with respect to labor. The production department incurred direct materials cost of $255,300 and its beginning inventory included materials cost of $94,200. Compute the direct materials cost per equivalent unit for the department using the weighted-average method.
Answer:
cost per equivalent unit for direct materials is $1.39.
Explanation:
First, calculation of equivalent units of production with respect to Direct materials
Closing Work In Process (27,000 × 100%) = 27,000
Completed and Transferred (225,000 × 100%) = 225,000
Equivalent units of Production with respect to Direct materials = 252,000
Then calculate the cost per equivalent unit for direct materials as follows :
Cost per equivalent unit = Total Costs ÷ Total Equivalent units
= ($255,300 + $94,200) ÷ 252,000
= $1.39
Cindy is considering going to law school. If she does, she will spend $70,000 on tuition and books to get a college education (during the first time period), $140,000 on tuition and books to get a law degree (during the second time period), and her law degree will earn her $700,000 during the remainder of her work-life (during the third time period). Cindy's time preference for money is associated with a per-period interest rate of 10 percent. Approximately what is Cindy's present value of obtaining a law degree
Answer:
$346,581.52
Explanation:
we need to use the present value formula to solve this:
present value = future value / (1 + r)ⁿ
the present value of tuition and books will be negative (since they are a cash outflow)
PV = -70,000 / (1 + 0.1) = -70,000 / 1.1 = -$63,636.36
PV = -140,000 / (1 + 0.1)² = -140,000 / 1.1² = -$115,702.48
the present value of the expected income will be positive since it represents cash inflows
PV = 700,000 / (1 + 0.1)³ = 700,000 / 1.1³ = $525,920.36
the net present value of obtaining a law degree = $525,920.36 - $63,636.36 - $115,702.48 = $346,581.52
Item1 1 points eBookPrintReferences Check my work Check My Work button is now enabledItem 1Item 1 1 points Assume the perpetual inventory method is used. 1) The company purchased $13,900 of merchandise on account under terms 2/10, n/30. 2) The company returned $3,400 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period. 4) All of the merchandise purchased was sold for $21,800 cash. The amount of gross margin from the four transactions is: Multiple Choice $11,578. $11,510. $7,742. $7,900.
Answer:
$11,510
Explanation:
Calculation for the gross margin amount from the four transactions
First is to find the Cost of goods sold
Cost of goods sold = ($13,900 - $3,400) × (100%-2%)
Cost of goods sold=$10,500*0.98
Cost of goods sold=$10,290
Last step is to find the gross margin amount using this formula
Gross margin amount=Sales revenue - Cost of goods sold
Let plug in the formula
Gross margin amount=$21,800-$10,290
Gross margin amount=$11,510
Therefore the gross margin amount from the four transactions will be $11,510
The following information is for the Jeffries Corporation:
Product A: Revenue $16.00 Variable Cost $12.00
Product B: Revenue $24.00 Variable Cost $16.00
Total fixed costs $75,000
Assume the sales mix consists of three units of Product A and one unit of Product B.
If the sales mix shifts to four units of Product A and one unit of Product B, then the weighted-average contribution margin will:____________
Answer:
will decrease per unit
If the sales mix shifts to four units of Product A and one unit of Product B, then the weighted-average contribution margin will: $ 4.8 per unit of sales mix.
Explanation:
Jeffries Corporation:
Product A: Product B:
Revenue $16.00 $24.00
Variable Cost $12.00 $16.00
Contribution Margin $ 4.0 $8.0
Sales Mix 3 units 1 unit
% 0.75 0.25
When he sales mix consists of three units of Product A and one unit of Product B the weighted-average contribution margin was
C.M (3* Product A ) +C. M( 1* Product B)
$ 4.0*0.75 + $8.0*0.25= $ 3.0 + $2.0 = $ 5.0
If the sales mix shifts to four units of Product A and one unit of Product B, then the weighted-average contribution margin will: $ 4.8 per unit of sales mix.
The new Sales mix % will be
Product A = 4/5= 0.8 % and
Product B = 1/5 = 0.2%
C.M (4* Product A ) +C. M( 1* Product B)
$ 4.0*0.8 + $8.0* 0.2= $ 3.2 + $1.6 = $ 4.8
Because the contribution margin of Product B is greater and the CM of Product A is less so when we decrease the % of Product B in the Sales mix the CM is also decreased.
On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June:_______.
Opened a business bank account with a deposit of $25,000 from personal funds.
Purchased office supplies on account, $2,600.
Received cash from fees earned for managing rental property, $7,030.
Paid rent on office and equipment for the month, $3,190.
Paid creditors on account, $1,180.
Billed customers for fees earned for managing rental property, $5,910.
Paid automobile expenses (including rental charges) for the month, $710, and miscellaneous expenses, $350.
Paid office salaries, $2,250.
Determined that the cost of supplies on hand was $1,540; therefore, the cost of supplies used was $1,060.
Withdrew cash for personal use, $2,130.
Required:1. Indicate the effect of each transaction and the balances after each transaction:For those boxes in which no entry is required, leave the box blank.For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)
Answer:
Opened a business bank account with a deposit of $25,000 from personal funds.
Dr Cash 25,000
Cr Schatz, Pamela, capital 25,000
the account balances:
Cash 25,000
Schatz, Pamela, capital 25,000
Purchased office supplies on account, $2,600.
Dr Supplies 2,600
Cr Accounts payable 2,600
the account balances:
Supplies 2,600
Accounts payable 2,600
Received cash from fees earned for managing rental property, $7,030.
Dr Cash 7,030
Cr Service revenue 7,030
the account balances:
Cash 32,030
Service revenue 7,030
Paid rent on office and equipment for the month, $3,190.
Dr Rent expense 3,190
Cr Cash 3,190
the account balances:
Cash 28,840
Rent expense 3,190
Paid creditors on account, $1,180.
Dr Accounts payable 1,180
Cr Cash 1,180
the account balances:
Cash 27,660
Accounts payable 1,420
Billed customers for fees earned for managing rental property, $5,910.
Dr Accounts receivable 5,910
Cr Service revenue 5,910
the account balances:
Accounts receivable 5,910
Service revenue 12,940
Paid automobile expenses (including rental charges) for the month, $710, and miscellaneous expenses, $350.
Dr Rent expense 710
Dr Miscellaneous expenses 350
Cr Cash 1,060
the account balances:
Cash 26,600
Rent expense 3,900
Miscellaneous expenses 350
Paid office salaries, $2,250.
Dr Wages expense 2,250
Cr Cash 2,250
the account balances:
Cash 24,350
Wages expense 2,250
Determined that the cost of supplies on hand was $1,540; therefore, the cost of supplies used was $1,060.
Dr Supplies expense 1,060
Cr Supplies 1,060
the account balances:
Supplies 1,540
Supplies expense 1,060
Withdrew cash for personal use, $2,130.
Dr Schatz, Pamela, drawings 2,130
Cr Cash 2,130
the account balances:
Cash 22,220
Schatz, Pamela, capital 22,870
An indication of the effect of each transaction and the account balances are as follows:
Transaction Assets = Liabilities + Capital
1. $25,000 $25,000
Account balances $25,000 $0 $25,000
2. $2,600 $2,600
Account balances $27,600 $2,600 $25,000
3. $7,030 $7,030
Account balances $34,630 $2,600 $32,030
4. -3,190 -$3,190
Account balances $31,440 $2,600 $28,840
5. -$1,180 -$1,180
Account balances $30,260 $1,420 $28,840
6. $5,910 $5,910
Account balances $36,170 $1,420 $34,750
7. -$710 -$710
Account balances $35,460 $1,420 $34,040
8. -$350 -$350
Account balances $35,110 $1,420 $33,690
9. -$2,250 -$2,250
Account balances $32,860 $1,420 $31,440
10. -$1,060 -$1,060
Account balances $31,800 $1,420 $30,380
11. -$2,130 -$2,130
Account balances $29,670 $1,420 $28,250
Transaction Analysis:Cash $25,000 Common Stock $25,000
Office supplies $2,600 Accounts Payable $2,600
Cash $7,030 Rental Fees $7,030
Rent Expenses $3,190 Cash $3,190
Accounts Payable $1,180 Cash $1,180
Accounts Receivable $5,910 Rental Fees $5,910
Automobile Expenses $710 Cash $710
Miscellaneous Expenses $350 Cash $350
Office Salaries Expenses $2,250 Cash $2,250
Supplies Expenses $1,060 Office Supplies $1,060
Drawings $2,130 Cash $2,130
Thus, based on the accounting equation, each transaction affects either the assets, liabilities, or capital.
Learn more about the effect of transactions on the accounting equation here: https://brainly.com/question/24560438
You purchased 4,400 shares in the New Pacific Growth Fund on January 2, 2016, at an offering price of $45.50 per share. The front-end load for this fund is 5 percent, and the back-end load for redemptions within one year is 1 percent. The underlying assets in this mutual fund appreciate (including reinvested dividends) by 5 percent during 2016, and you sell back your shares at the end of the year. If the operating expense ratio for the New Pacific Growth Fund is 1.05 percent, what is your total return from this investment? (Assume that the operating expense is netted against the fund’s return.)
Answer:
Total return is -2.24%
Explanation:
Calculation of the initial NAV
Initial NAV = Offering price * (1-% of front end load)
Initial NAV = $45.50 * (1 - 5%)
Initial NAV = $45.50 * 0.95
Initial NAV = $43.225
Calculation of the final NAV
Final NAV = Initial NAV * (1 + (Appreciation rate - Operating expenses ratio)
Final NAV = $43.225* (1 + (5% - 1.05%))
Final NAV = $43.225 * 1 + 0.0395
Final NAV = $43.225 * 1.0395
Final NAV = $44.9323875
Calculation of the sales proceeds per share
Sales proceeds per share = Final NAV * (1 - % of back end load)
Sales proceeds per share = $44.9323875 * ( 1 - 1%)
Sales proceeds per share = $44.483063625
Calculation of the total return
Total return = (Sales proceeds per share - Offering price) / Offering price
Total return = ($44.483063625 - $45.50) / $45.50
Total return = -2.24%
Which of the following positions would be considered a human resource specialist?
Answer:
1) Job Application. ...
2) Employee Benefits Survey. ...
3) Employee Referral Form. ...
4) 360 Degree Feedback. ...
5) PTO Request.
Explanation:
On 1/1/2019, Firm XYZ signs a debt contract. According to the debt contract, Firm XYZ raises $100,000 from an investor and promises to pay the investor $100,000 on 1/1/2020 (i.e., the interest rate is zero). On 1/2/2019, Firm XYZ finds that there are two investment opportunities, and each project costs the firm $100,000:
Project 1: $400,000 with probability 0.4 and $0 with probability 0.6
Project 2: $200,000 with probability 1.
i) Which project exhibits a higher NPV?
ii) Which project does the firm prefer? Firm prefers project 1 because
iii) How about debtholders? Debtholders would prefer project 2 because
iv) Suppose that, on 1/1/2019, the investor knows that the firm will choose a project between project 1 and 2. Would the investor choose to sign the debt contract?
Answer:
i) Which project exhibits a higher NPV?
project 2
ii) Which project does the firm prefer?
project 1 since it has the potential to earn $400,000 (resulting in an NPV of $300,000) and if things go wrong, they will not lose their money. When you gamble with someone else's money, you are willing to take higher risks.
iii) How about debtholders?
project 2 since it guarantees that the loan will be paid back
iv) Suppose that, on 1/1/2019, the investor knows that the firm will choose a project between project 1 and 2. Would the investor choose to sign the debt contract?
This depends on what type of business Firm XYZ is. If it is a corporation, LLC or a LLP, then I doubt that the loan will be made because the firm's owners are not personally liable for the debt. If the firm is a sole proprietorship or a general partnership, then depending on the financial position of the owners, the loan can be made.
Explanation:
since the discount rate is 0:
the NPV of project 1 = [($400,000 x 0.4) + $0] - $100,000 = $160,000 - $100,000 = $60,000
the NPV of project 2 = $200,000 - $100,000 = $100,000
In 2019, the Creighton Agricultural Products Company used a predetermined manufacturing overhead rate of 150% times direct labor cost. Information for the year is as follows: Actual direct materials cost $812,500 Actual direct labor cost $180,000 Actual overhead costs incurred: $264,000 Total direct labor hours 5,520 What is the amount of the adjustment to COGS required due to the over or under allocation of overhead costs. Select one: a. $4,300 b. $5,900 c. $6,000 d. None of the choices
Answer:
c. $6,000
Explanation:
The computation of the amount of the adjustment required to cost of goods sold is shown below:
Estimated manufacturing overhead cost is
= 150% × $180,000
= $270,000
And, the actual overhead cost incurred is $264,000
So, the adjustment amount is
= $270,000 - $264,000
= $6,000
Hence, the correct option is c. $6,000
Use the following information, taken from each of the company's 2016 financial statements to complete the requirements. Cash from Current Company Operations Liabilities CAPEX Logitech International $258.111 $414.930 $56.615 Steelcase Inc 261.400 557.500 93.400 Chico's FAS Inc. 271.991 298.131 84.841 Vista Outdoor Inc 273.002 368.901 41.526 a. Compute the operating cash flow to current liabilities ratios. b. Rank-order each company from low to high liquidity (ability to pay liabilities as they come due). c. Compute the operating cash flow to CAPEX ratio. Compared with the rule of thumb of 1.0, assess the company's solvency as either low, medium, or high. d. Rank-order each company from low to high solvency. Round answers to two decimal places. For ranking, 1 is the highest and 4 is the lowest. Operating Cash Flow to Current Liquidity Operating Cash Solvency Company Liabilities Rank Flow to CAPEX Rank Logitech International Answer 0 Answer Answer 0 Answer Steelcase Inc Answer 0 Answer Answer 0 Answer Chico's FAS Inc. Answer 0 Answer Answer 0 Answer Vista Outdoor Inc Answer 0 Answer Answer 0 Answer
Answer:
A.Logitech International 0.62
Steelcase Inc 0.47
Chico's FAS Inc. 0.91
Vista Outdoor Inc 0.74
B. Logitech International 0.62 MEDIUM
Steelcase Inc 0.47 LOW
Chico's FAS Inc. 0.91 HIGH
Vista Outdoor Inc 0.74 HIGH
C.Logitech International 4.56
Steelcase Inc 2.80
Chico's FAS Inc. 3.20
Vista Outdoor Inc 6.57
D. Logitech International 4.56 HIGH
Steelcase Inc 2.80 LOW
Chico's FAS Inc. 3.20 MEDIUM
Vista Outdoor Inc 6.57 HIGH
Explanation:
A. Computation of the operating cash flow to current liabilities ratios
Using this formula
Operating Cash Flow to Current Liabilities Ratio = Operating Cash Flow / Current Liabilities
Let plug in the formula
Company Operating Cash Flow Current Liabilities Ratio =Liquidity
Logitech International $258.111 /$414.930 =0.62
Steelcase Inc $261.400/$557.500 =0.47
Chico's FAS Inc. $271.991 /$298.131 =0.91
Vista Outdoor Inc $273.002/$368.901 =0.74
B. Ranking -order of each company from low to high liquidity
Company Operating Cash Flow Current Liabilities Ratio Liquidity RANKING ORDER
Logitech International $258.111 $414.930 0.62 MEDIUM
Steelcase Inc $261.400 $557.500 0.47 LOW
Chico's FAS Inc. $271.991 $298.131 0.91 HIGH
Vista Outdoor Inc $273.002 $368.901 0.74 HIGH
C. Computation of operating cash flow to CAPEX ratio
Using this formula
Operating Cash Flow to CAPEX Ratio = Operating Cash Flow / CAPEX Ratio
Let plug in the formula
Company Operating Cash Flow CAPEX Ratio =Solvency
Logitech International $258.111 /$56.615 =4.56
Steelcase Inc $261.400/$93.400=2.80
Chico's FAS Inc. $271.991 /$84.841 =3.20
Vista Outdoor Inc $273.002 /$41.526 =6.57
D. Ranking -order for each company from low to high solvency
Company Operating Cash Flow CAPEX Ratio Solvency RANKING ORDER
Logitech International $258.111 $56.615 4.56 HIGH
Steelcase Inc $261.400 $93.400 2.80 LOW
Chico's FAS Inc. $271.991 $84.841 3.20 MEDIUM
Vista Outdoor Inc $273.002 $41.526 6.57 HIGH
Therefore operating cash flow to current liabilities ratios is:
Logitech International 0.62
Steelcase Inc 0.47
Chico's FAS Inc. 0.91
Vista Outdoor Inc 0.74
And the Ranking -order of each company from low to high liquidity is :
Logitech International 0.62 MEDIUM
Steelcase Inc 0.47 LOW
Chico's FAS Inc. 0.91 HIGH
Vista Outdoor Inc 0.74 HIGH
Operating cash flow to CAPEX ratio is :
Logitech International 4.56
Steelcase Inc 2.80
Chico's FAS Inc. 3.20
Vista Outdoor Inc 6.57
And the Ranking -order of each company from low to high solvency is :
Logitech International 4.56 HIGH
Steelcase Inc 2.80 LOW
Chico's FAS Inc. 3.20 MEDIUM
Vista Outdoor Inc 6.57 HIGH
At year-end, has cash of , current accounts receivable of , merchandise inventory of , and prepaid expenses totaling . Liabilities of must be paid next year. Assume accounts receivable had a beginning balance of and net credit sales for the current year totaled . How many days did it take to collect its average level of receivables? (Assume 365 days/year. Round any interim calculations to two decimal places. Round the number of days to the nearest whole number.)
Answer: 30 days
Explanation:
Days to collect receivables = 365/ Average Receivables turnover
Average Receivables turnover = Net credit sales/ Average receivables
Average receivables = (Beginning receivables + ending receivables) /2
= (40,000 + 120,000)/2
= $80,000
Average Receivables turnover = 960,000/80,000
= 12
Days to collect receivables = 365/12
= 30.42 days
= 30 days
On May 1, 2021, Cedar Corp. paid $432,000 for rent on warehouse space one year in advance. On November 1, 2021, Cedar Corp. entered into a lease agreement to rent out its old warehouse space it was no longer using. This agreement calls for Cedar to receive $10,000 per month from the lessee, due and payable at the end of the 5-month lease term. At December 31, 2021, none of the rental payments from the lessee had yet been received. If Cedar makes the appropriate adjusting entry, how much will be reported on the December 31, 2021 income statement for rent expense?
Answer: $324,000
Explanation:
Cedar Corp. paid $432,000 for a year in advance. According to the Accrual principle in Accounting, expenses are to be recorded only when incurred.
The rent will therefore have to be apportioned to the months that it has paid for in the current period.
Rent for year = $432,000
Rent for month = 432,000/12 = $36,000
April - December = 9 months
Rent for the year = 9 * 36,000
= $324,000
Note; Question is about Rent expense which is how much Cedar Corp has paid not about how much they have received.
Suppose the hotel in the lecture example raised its price from $30 to $30.50. With the new price, the hotel expects 96 guests to arrive 5% of the time, 97 guests 10% of the time, 98 guests 20% of the time, 99 guests 30% of the time, 100 guests 25% of the time and 101 guests 10% of the time. The variable costs per occupied room and overbooking costs are the same as in the lecture.Calculate the expected revenue, expected variable costs and expected costs from overbooking.Using marginal analysis, should the hotel raise its price? Explain your answer.
Answer:
$3019.50
Explanation:
Expected revenue can be calculated by multiplying the number of guests with the price given in the question. By working out the calculations if the marginal cost comes positive then the hotel should raise its price.
DATA
Expected number of guests = (5% x 96) + (10% x 97) + (2% x 98) + (30% x 99) + (25% x 100) + (10% x 101)
Expected number of guests = 98.9 or 99 guests
Expected revenue = 99 x 30.50 = $3019.50
Expected variable cost = 99 x (varibale cost given in the lecture)
Expected costs from overbooking = 99 - maximum allowed guests (given in lecture )
Expected profit = 3019.50 - 99 x (varibale cost given in lecture) - (99 - maximum allowed guests) given in lecture
Marginal cost = (expected profit - profit when price is 30 (given in lecture))/0.50
NOTE: Data given in the question lacks information such as variable cost given in the lecture.
O'Neill, Incorporated income statement for the most recent month is given below. A proposal has been made that will lower variable expenses in Store A to 62% of sales. However, this reduction can only be accomplished by an increase in fixed expenses of $8,000. If this proposal is implemented and sales remain constant, overall company net operating income should: Select one: a. remain the same b. decrease by $4,200 c. increase by $2,000 d. increase by $8,000
Answer:
c. increase by $2,000
Explanation:
The computation of company net operating income is shown below:-
New amount for Store A variable expenses = Sales percentage × Store A sales
= 0.62 × $100,000
= $62,000
Change in net operating income = (Variable expenses of store A - New amount for Store A variable expenses) - Fixed expenses
= ($72,000 - $62,000) - $8,000
= $10,000 - $8,000
= $2,000 increase
In addition to risk-free securities, you are currently invested in the Tanglewood Fund, a broad-based fund of stocks and other securities with an expected return of and a volatility of . Currently, the risk-free rate of interest is . Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of , a volatility of , and a correlation of with the Tanglewood Fund. Calculate the required return and use it to decide whether you should add the venture capital fund to your portfolio. The required return is nothing%. (Round to two decimal places.) Use the result of the above calculation to determine whether you should add the venture capital fund to your portfolio. Should you add the venture fund to your portfolio?
Answer: 6.29%
Explanation:
Required return = Risk free rate + beta ( expected return - risk free rate)
Beta.
[tex]= Correlation * \frac{Volatility of venture}{Volatility of fund} \\\\= 0.16 * \frac{0.8117}{0.2636} \\\\= 0.493[/tex]
Required return = 3.63% + 0.493(9.03% - 3.63%)
= 6.29%
The firm Gelati-Banking (GB) is considering a project with the following characteristics. Sales will be $100 MM for sure in the first year and grow 10% in the second year; thereafter, the long term growth rate is 3%. Gross Profit Margin (Gross Profit over Sales) will be 20%. Depreciation will be $10 MM each year for the next two years. Working Capital held for the project will have to be 10% of sales. Additional CAPX each year will be $11MM in year 1 and $12 MM in year 2. All cash flows defined here are deterministic and will go on indefinitely. Interest rates are as follows: 3-month t-bill is 3%, the 2 year treasury is 4% and the long bond (30-year) is trading at 5% per year. The Corporate Tax Rate is 40%. What would the investment need to be for this project to be breakeven (ignoring depreciation effects of the investment)
Answer:
Investment needed for breakeven is 784.48 MM
Explanation:
Working is attached with this answer in PDF file, please find it.
The project will be at breakeven when NPV will be equal to 0
NPV = -Investment + Present value of year 1 cash flows + Present value of year 2 cash flows + Present value of year 3 and onwards cash flows
0 = - investment + 5/1.03 + 14.2/(1.04)2 + 15.326 / (0.05 - 0.03)
0 = -Investment + 4.854 + 13.129 + 766.500
Investment = 4.854 + 13.129 + 766.500
Investment = 784.483
(1.05)3
The investment will be less than $ 679.94 MM. At time 0 , the project will be at breakeven when the investment invested intially will be less than $ 669.94 MM.
