Answer:
(a)In 2018, V(t)=$207.05 billion
In 2020, V(t)=$246.90 billion
(b)The export growth rate in 2018 is $18.22 billion per year
The export growth rate in 2020is $21.73 billion per year
Explanation:
The value of exports, t years after 2011 can be approximated by:
[tex]V(t)=111.83 e^{0.088 t}[/tex]
(a)We want to estimate the value of the country's travel exports in 2018 and 2020.
Now, 2018-2011=7 years
Therefore, in 2018
[tex]V(7)=111.83 e^{0.088 *7}\\=\$207.05$ billion[/tex]
Now, 2020-2011=9 years
Similarly, in 2020
[tex]V(9)=111.83 e^{0.088 *9}\\=\$246.90$ billion[/tex]
(b)Growth rate
If [tex]V(t)=111.83 e^{0.088 t}[/tex], then:
[tex]V'(t)=111.83(0.088) e^{0.088 t}\\V'(t)=9.84104 e^{0.088 t}[/tex]
Growth rate in 2018 (at t=7)
[tex]V'(7)=9.84104 e^{0.088*7}\\=\$18.22$ billion per year[/tex]
Growth rate in 2020 (at t=9)
[tex]V'(9)=9.84104 e^{0.088*9}\\=\$21.73$ billion per year[/tex]
g Unearned revenues are classified as: Group of answer choices Assets. Liabilities. Revenues. Stockholders' equity.
Answer:
Liabilities
Explanation:
Unearned revenues are written as liabilities in the balance sheet of a firm. They are regarded as liabilities because the revenue is still unearned. An example is advance rent payment.
It is a prepayment for a good or service that has not been rendered to the customer yet by the provider. The provider or seller now has a liability equal to the revenue they have received till they provide that service for which they were paid
Which of the following is not a remedy Sam Seller may seek under Article 2 if Barney Buyer breaches the sales contract?1. cancel the sales contract 2. damages for lost profits 3. incidental damages 4. stop shipment before Barney receives the goods 5. secured transaction
Answer:
Option D. Stop shipment before barney receives the good.
Explanation:
The reason is that Article 2 says that the claim must not exceed
The amount of profit lost due to breach of contract by the other party to contract (Option 2).The incidental damages caused by the breach of contract (Option 3).Other losses which the party to contract despite knowing has breached the contract.This means all the options are claimable but the option 4, stopping the shipment before barney receives the good is not a remedy as it is not a loss.
Furthermore, the secured transaction is a valid claim if the other party breaches the contract. The other party is liable to return the the consideration received hence it is a valid claim (Option 5).
The cancelation of sales is valid claim for the party because it is the main cause of incidental and profit losses (Option 1).
Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be $3,150,000, and total direct labor costs would be $1,800,000. During February, the actual direct labor cost totaled $160,000, and factory overhead cost incurred totaled $283,900.
Required:
a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals.
b. Journalize the entry to apply factory overhead to production for February.
c. What is the February 28 balance of the account Factory Overhead—Blending Department?
d. Does the balance in part (c) represent overapplied or underapplied factory overhead?
Answer:
a. 175%
b.
Journal Entry to apply factory overhead to production for February.
Work In Process $280,000 (debit)
Overheads $280,000 (credit)
c. $3,900
d. Under-applied Overheads
Explanation:
Predetermined Overhead rate = Total Budgeted Overheads /Total Budgeted Activity
= $3,150,000 / $1,800,000
= $1.75 per direct labor cost. or
= 175% (1.75 × 100)
Applied factory overhead = Predetermined Overhead rate × Actual Activity
= $160,000 × 175 %
= $280,000
Journal Entry to apply factory overhead to production for February.
Work In Process $280,000 (debit)
Overheads $280,000 (credit)
over-applied or under-applied factory overhead
Over-applied Overheads = Actual Overheads < Applied Overheads
Under-applied Overheads = Actual Overheads > Applied Overheads
Actual Overheads (given) = $283,900
Applied Overheads = $280,000
Actual Overheads: $283,900 > Applied Overheads :$280,000
Thus we have an Under-application situation of $3,900 ($283,900 - $280,000)
The entries to record cost and sale of a finished good on account is Group of answer choices debit Cost of Goods Sold, credit Finished Goods, debit Accounts Receivable, credit Sales debit Cost of Goods Sold, credit Finished Goods debit Sales Expense, credit Finished Goods, credit Cash, credit Accounts Receivable debit Work in Process, credit Finished Goods, debit Accounts Receivable, credit Sales
Answer:
a. debit Cost of Goods sold, credit Finished Goods, debit Account Receivable, credit Sale
Explanation:
The journal entry is shown below:
For the cost of finished goods
Cost of goods sold Dr XXXXX
To Finished goods XXXXX
(Being the cost of finished goods is recorded)
For recording this we debited the cost of goods sold as it increased the expenses and credited the finished goods as it decreased the assets
For the sale of finished goods on account
Account receivable Dr XXXXX
To Sales XXXXX
(Being the sale of finished goods on account is recorded)
For recording this we debited the account receivable as it increased the assets and credited the sales as it also increased the revenue
The tables show the spending and revenue for Littleland in 2010. Use the tables and other information to answer the questions. Spending category Value (millions) education $320 welfare and Social Security $890 health care $270 defense $120 payments on debt $170* other $240 *This payment covers total interest owed only. Revenue category Value (millions) income tax $800 sales tax $270 corporate tax $300 social insurance $340 GDP in 2010: $7.3 billion Total debt as of 2009: $3.5 billion How much money (in millions) did Littleland need to borrow in 2010 to finance its government spending
Answer:
$300 million
Explanation:
The computation of debt is shown below:-
But before that we need to determine the following amounts
Total Expenditure = Spending on Education + Spending on Welfare and social security + Spending on Healthcare + Spending on Defense + Payments on Debt + Other Spending
= $320 + $890 + $270 + $120 + $170 + $240
= $2,010 million
Total Revenue = Income Tax + Sales Tax + Corporate Tax + Social Insurance
= $800 + $270 + $300 + $340
= $1710 million
Debt or borrowed amount =Total expenditure - Total revenue
= $2,010 - $1,710
= $300 million
HUD, Co. had a beginning retained earnings of $30,995. For the year, the company had net income of $7,590 and paid dividends of $3,120. The company also issued $5,320 in new stock during the year. What is the ending retained earnings balance?
Answer:
$35,465
Explanation:
Calculation for Ending Retained Earnings
Using this formula
Retained earnings = Beginning retained earnings +(Net income- Dividend)
Let plug in the formula
Retained earnings = $30,995 + ($7,590 − $3,120)
Retained earnings =$30,995 +$4,470
Retained earnings =$35,465
Therefore the the ending retained earnings balance will be $35,465
Breakin Away Company has three employees—a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:
Consultant Computer Programmer Administrator
Regular earnings rate $4,000 per week $60 per hour $50 per hour
Overtime earnings rate* Not applicable 1.5 times hourly rate 2 times hourly rate
Number of withholding allowances 2 1 2
* For hourly employees, overtime is paid for hours worked in excess of 40 hours per week.
For the current pay period, the computer programmer worked 50 hours and the administrator worked 48 hours. The federal income tax withheld for all three employees, who are single, can be determined from the wage bracket withholding table in Exhibit 2. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and one withholding allowance is $75.
Determine the gross pay and the net pay for each of the three employees for the current pay period. If required, round your answers to two decimal places.
Consultant Computer Programmer Administrator
Gross pay $ $ $
Net pay $ $ $
Answer:
Gross pay:
consultant $4,000 computer programmer $3,300 administrator $2,800Net pay:
consultant $2,767.98 computer programmer $2,295.48 administrator $1,993.98Explanation:
regular earnings overtime withholding
allowances
Consultant $4,000 per week N/A 2
Computer programmer $60 per hour 1.5 1
Administrator $50 per hour 2 2
computer programmer worked 50 hours = ($60 x 40) + ($60 x 10 x 1.5) = $3,300
administrator worked 48 hours = ($50 x 40) + ($50 x 8 x 2) = $2,800
Social security taxes:
Consultant = 6% x $4,000 = $240 Computer programmer = 6% x $3,300 = $198 Administrator = 6% x $2,800 = $168Medicare taxes:
Consultant = 1.5% x $4,000 = $60 Computer programmer = 1.5% x $3,300 = $49.50 Administrator = 1.5% x $2,800 = $42Federal income taxes:
Consultant: amount subject to withholding = $4,000 - (2 x $75) = $3,850. Federal income taxes = $356.90 + [28% x ($3,850 - $1,796) = $932.02 Computer programmer = amount subject to withholding = $3,300 - (1 x $75) = $3,225. Federal income taxes = $356.90 + [28% x ($3,225 - $1,796) = $757.02 Administrator = amount subject to withholding = $2,800 - (2 x $75) = $2,650. Federal income taxes = $356.90 + [28% x ($2,650 - $1,796) = $596.02Gross pay:
consultant $4,000 computer programmer $3,300 administrator $2,800Net pay:
consultant $4,000 - ($240 + $60 + $932.02) = $2,767.98 computer programmer $3,300 - ($198 + $49.50 + $757.02) = $2,295.48 administrator $2,800 - ($168 + $42 + $596.02) = $1,993.98The business purchased an office rack from Zuhdi Bhd for RM8,000 and
paid cash of RM3,000, the balance is to be paid later. State the journal
entry for this transaction,
Your answer
Answer and Explanation:
The Journal entries are shown below:-
Office equipment Dr, RM8,000
To Cash RM3,000
To Accounts payable RM5,000
(Being purchase of office equipment is recorded)
Here we debited the office equipment as it increased the assets and credited the cash and account payable as it decreased the assets and increased the liabilities
Graphical Designs is offering 10-10 preferred stock. The stock will pay an annual dividend of $10 with the first dividend payment occurring 10 years from today. The required return on this stock is 5.20 percent. What is the price of the stock today
Answer:
PV of the stock today = $115.83
Explanation:
We will use the discounted cash flows approach to calculate the price of the stock today. This approach values the stock by accumulating the present value of all the expected future cash flows from the stock/asset.
As the preferred stock pays a constant dividend after equal intervals of time and for an indefinite period, it can also be treated as a perpetuity. Thus, the formula for the present value of perpetuity will be used to calculate the price of the stock at year 10 that we will discount back to today.
Present value of perpetuity = Cash flow / expected rate of return
PV of stock at Year 10 = 10 / 0.052
PV of stock at Year 10 = 192.3076923
The value of the today will be,
PV of the stock today = 192.3076923 / (1+0.052)^10
PV of the stock today = $115.83
three examples of foreign companies operating in Fiji and a type of service they provide
Answer:
Three foreign companies operating in Fiji:
Bank of Baroda: a multinational, financial services companies from India. It offers banking services in Fiji, and is one of the five international banks that operate in that country.Coca Cola: this American multinational beverages corporation from Atlanta, Georgia, also operates in Fiji. It sells consumer goods, specially beverages.Marriott: the American multinational hotel corporation has one hotel in Fiji: the Fiji Marriott Resort Momi Bay.
Ireland Corporation obtained a $40,000 note receivable from a customer on June 30, 2011. The note, along with interest at 6%, is due on June 30, 2012. On September 30, 2011, Ireland discounted the note at Cloverdale bank. The bank's discount rate is 10%. What amount of cash did Ireland receive from Cloverdale Bank
Answer:
$39,220
Explanation:
The maturity value of the note receivable on June 30, 2012
= Principal + Interest
= $40,000 + $40,000 x 6%
= $40,000 + $2,400
= $ 42,400
The note is discounted on September 30, 2011. Time period remaining to go till maturity as on September 30, 2011
= 12 - 3 months ( July, Aug and Sep)
= 9 months.
Amount of deduction
= $ 42,400 x 10% x 9/12
= $ 3,180
Finally, the Cash received by Ireland will be
= Maturity value - Discount
= $42,400 - $ 3,180
= $39,220
Determine the number of widgets that you should try to sell in order to maximize revenue. What is the maximum revenue. Be sure to answer in complete sentences and to include units. Explain how you found the results.
Answer:
Hello some important parts of your question is missing ( Table ) attached below is the table
Answer : Number of widgets = 50
Explanation:
The number of widgets that you should sell to maximize revenue can be calculated as
= ( demand for widgets * price per widget ) - Total cost
from the table:
i) ( 10 * 141 ) - 609 = 1410 - 609 = $801
ii) ( 20 *133 ) - 1103 = 2660 - 1103 =$1557
iii) (30 *126) - 1618 = 3780 - 1618 = $2162
iv) (40*128) - 2109 = 5120 - 2109 =$3011
v) (50*113) - 2603 = 5650 -2603 = $3047
vi) (60*97) - 3111 = 5820 - 3111 = $2709
vii) (70*90) - 3619 = 6300 - 3619 =$2681
viii) ( 80*82) - 4103 = 6560 - 4103 = $2457
ix) (90*79) - 4601 = 7110 - 4601 = $2509
From the calculation above the number of widgets that should be sold in other to maximize revenue is : 50. this is because the revenue made is $3047 which is the highest when compared to other revenues generated
The Thomlin Company forecasts that total overhead for the current year will be $11,420,000 with 157,000 total machine hours. Year to date, the actual overhead is $7,958,000 and the actual machine hours are 83,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a.$2,848,500 underapplied b.$1,899,000 underapplied c.$1,899,000 overapplied d.$2,848,500 overapplied
Answer:
Under/over applied overhead= $1,899,000 underallocated
Explanation:
Giving the following information:
Estimated overhead= $11,420,000
Estimated machine-hours= 157,000
Actual overhead is $7,958,000 and the actual machine hours are 83,000 hours.
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 11,420,000/157,000
Predetermined manufacturing overhead rate= $73 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 73*83,000= $6,059,000
Finally, we can determine the under/over allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 7,958,000 - 6,059,000
Under/over applied overhead= $1,899,000 underallocated
1. Do you think it is a good idea to have employers withhold
estimated taxes from paychecks? Why or why not?
Answer:
No,
Explanation:
The tax withholding system is something that most of us take for granted, but the concerned citizens, politicians and economists who have analyzed it have many criticisms of the system.
Taxpayers have no idea how much they pay and are apathetic about tax rates
If taxpayers had to make one large payment, they would know exactly how much they were forking over for federal taxes, Social Security taxes, Medicare taxes and state taxes. Since the money is taken gradually, many people never pay attention to the full amount, which makes it easier for high tax rates to persist and for the government to increase tax rates. For example, the state of California in 2009 decided to use the tax withholding system to take a large, interest-free loan from its taxpayers. It increased the withholding tax by 10%, and even journalists didn't seem to notice until the days before the rate hike was implemented. The government says it will refund the borrowed money in April.
Judd Corporation has a weighted average cost of capital of 10.25%, and its value of operations is $57.50 million. Free cash flow is expected to grow at a constant rate of 6.00% per year. What is the expected year-end free cash flow, FCF1 in millions? a. $2.44 b. $2.96 c. $3.25 d. $2.20 e. $2.69
Answer:
The answer is $2.44 millions option (a) is correct
Explanation:
Solution
Recall that:
Weighted average cost of capital =10.25%
The value of operations = $57.50 million
Constant rate = 6.00%
Now we have to find the expected year-end free cash flow.
Thus
The value of operations = $57.50 million
WACC =10.25%
Growth rate = 6.00%
So
The value of operation = free cash flow/( WACC-growth rate )
$57.50 = free cash flow / 0.1025-0.06
$ 57.50 = free cash flow/0.425
Free cash flow = $ 57.50*0.0425
= $2.44 millions
Hence the expected ear-end free cash flow is $2.44 millions
Answer:
A. $2.44
Explanation:
Hope this helps
Symon's Suppers Co. has announced that it will pay a dividend of $4.27 per share one year from today. Additionally, the company expects to increase its dividend by 4.6 percent annually. The required return on the company's stock is 10.8 percent. What is the current share price
Answer:
The price of the stock today is $65.02
Explanation:
The current price of the stock can be calculated using the constant growth model of DDM. The DDM values the stock based on the present value of the expected future dividends from the stock.
The formula for the price of the stock today under the constant growth model is,
P0 = D1 / (r - g)
Where,
D1 is the dividend expected to be paid next periodr is the required rate of returng is the growth rate in dividendsTo calculate the price today, we use the dividend for the next period. Thus, we will use D2 to calculate the price of the stock at Year 1 and will discount it back to today to calculate the price today.
P0 = [(4.27 * (1+0.046)) / (0.108 - 0.046)] / (1+0.108)
P0 = $65.017 rounded off to $65.02
In cell N2, enter a formula using the IF function and a structured reference to determine if Alison Simoneau is eligible for tuition remission.
a. The IF function should first determine if the staff member's Service Years 11 is greater than 1. Remember to use a structured reference to the Service Years column.
b. The function should return the text Eligible if the staff member's Service Years is greater than 1.
c. The function should return the text Not Eligible if the staff member's Service Years is not greater than 1.
Answer:
In cell N2, enter a formula using the IF function and a structured reference to determine if Alison Simoneau is eligible for tuition remission.
=IF([Service Years]>
a. The IF function should first determine if the staff member’s Service Years is greater than 1. A structured reference to the Service Years column:
=IF([Service Years]>1,
b. The function should return the text Eligible if the staff member’s Service Years is greater than 1.
=IF([Service Years]>1,"Eligible"
c. The function should return the text Not Eligible if the staff member’s Service Years is not greater than 1.
=IF([Service Years]>1,"Eligible","Not Eligible")
Identify the trade-restraining practice that this example demonstrates.
Company A and Company B both work in the candy industry. They agree that Company A will only sell chocolate to Company C and Company B will only sell fruit candies to Company C.
it demonstrates Division of Markets
Suppose in 2012 in New Zealand, there are deflationary pressures and prices drop by 20 percent throughout the economy. All else being equal, expectations of increasing deflation should:
Answer: B. shift the AD curve to the left
Explanation:
When people expect that deflation which is the general reduction in prices, will occur, they will try to take advantage of it by reducing their consumption in the present so that they can resume consumption when prices are lower so as to reduce their cost of consumption.
This will have the effect of reducing Aggregate Demand which will force the Aggregate Demand curve to the Left which will further exacerbate the effects because prices will then fall to the new point of intersection between AD and the Aggregate Supply curve.
When the prices are fall by 20 percent throughout the economy so here it should be shifted to AD curve to the left hand side.
Impact on deflation:In the case when there is deflation that means reduction in the price so here there should be decreased in the consumption also it decrease the consumption cost.
Due to this the Aggregate Demand should be decreased due to this, it should be shifted to the left hand side because of the decreasing in the price
Therefore, When the prices are fall by 20 percent throughout the economy so here it should be shifted to AD curve to the left hand side.
This question is incomplete.The options for this question are;
A. Cause a movement along an AD curve or a change in quantity of AD
B. shift the AD curve to the left
C. leave the AD curve unchanged
D. shift the AD curve to the right
Learn more about price here: https://brainly.com/question/24304293
Martin Company paid $900,000 for equipment. Martin uses straight-line depreciation. Currently the Accumulated Depreciation account shows a balance of $180,000. If the asset has no residual value and an estimated life of 10 years, how many years has the asset been depreciated? (Round your final answer to the nearest year.)
Answer:
2 years
Explanation:
900,000/10=90,000
180,000/90,000=2
Splish Brothers Inc. issues $257,000, 10-year, 8% bonds at 99. Prepare the journal entry to record the sale of these bonds on March 1, 2022.
Answer:
Par value of bonds = $257,000
Issue price of bonds = 99
Cash receipts from issue of bonds = 257,000 x 99% = 254,430
Discount on bonds payable = Par value of bonds - Cash receipts from issue of bonds
= 257,000-254,430
= $2,570
Date Account Titles and Explanation Debit Credit
March 1 Cash $254,430
Discount on bonds payable $2,570
Bonds payable $257,000
(To record issuance of bonds)
Interdepartment Services: Step Method
O'Brian's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. O'Brian's allocates Personnel Department costs on the basis of the number of employees and Payroll Department costs on the basis of gross payroll. Cost and allocation information for June is as follows:
Personnel Payroll Housewares Clothing Furniture
Direct department cost $ 7,800 $ 3,200 $ 12,200 $ 20,000 $ 16,750
Number of employees 5 4 8 16 4
Gross payroll $ 6,000 $ 3,300 $ 10,600 $ 17,400 $ 8,100
(a) Determine the percentage of total Personnel Department services that was provided to the Payroll Department. (Round your answer to one decimal place.)
Answer %
(b) Determine the percentage of total Payroll Department services that was provided to the Personnel Department. (Round your answer one decimal place.)
Answer %
(c) Prepare a schedule showing Personnel Department and Payroll Department cost allocations to the operating departments, assuming O'Brian's uses the step method.
Do not round until your final answers. Round answers to the nearest dollar.
Service Departments Producing Departments
Payroll Personnel Housewares Clothing Furniture
Total costs $Answer $Answer $Answer $Answer $Answe
Answer:
O'Brian's Department Stores
a) Determination of the percentage of total personnel department services that was provided to the Payroll department
Since allocation of the personnel department services is based on the number of employees, we can use this to calculate the percentage. The personnel employees are not included in this calculation.
= 4/32 x 100 = 12.5%
b) Percentage of total payroll department services provided to the personnel department. Since the basis is the gross payroll, we can use this to calculate the percentage. The gross payroll of the Payroll department is not included in the calculation.
= $6,000/$42,100 x 100 = 14.3%
c) Personnel Payroll House- Clothing Furniture Total
Ware
Direct department
cost $ 7,800 $ 3,200 $ 12,200 $ 20,000 $ 16,750 $59,950
Number of
employees 5 4 8 16 4 37
Gross payroll $ 6,000 $ 3,300 $ 10,600 $ 17,400 $ 8,100 $45,400
Total cost $13,800 $6,500 $22,800 $37,400 $24,850 $105,350
Allocation of service departments costs, using the step method:
Personnel -13,800 1,725 3,450 6,900 1,725 13,800
Payroll 0 -8,225 2,415 3,965 1,845 8,225
Total allocated 0 0 $28,665 $48,265 $28,420 $105,350
Explanation:
a) Data:
Personnel Payroll House- Clothing Furniture Total
Ware
Direct department
cost $ 7,800 $ 3,200 $ 12,200 $ 20,000 $ 16,750 $59,950
Number of
employees 5 4 8 16 4 37
Gross payroll $ 6,000 $ 3,300 $ 10,600 $ 17,400 $ 8,100 $45,400
b) Cost allocation & Calculations:
Personnel (based on the number of employees)
Rate = $13,800/32 = $431.25 per employee
Payroll (based on gross payroll)
Rate = Payroll cost = Payroll cost divided by the total gross payroll in the other departments, excluding personnel and payroll departments
= $8,225/$36,100 = $0.2278 per gross payroll
c) Allocation of service departments' costs is a method of apportioning costs incurred by service departments to the production departments in order to include all the costs in the product costs. Three methods exist for allocating service departments' costs to the production departments. The first, which is the simplest, is the direct method. With this method, the costs of service departments are allocated directly to each production department based on the consumption of the service department's services. They are not allocated to other service departments.
The second method is the step method. Here, the costs of one service department with the highest cost are allocated to all other departments first, including production and other service departments following a step. The costs of the next service department with the highest costs are allocated to the remaining departments. This step is continued until all the service departments' costs have been allocated. Once the costs of a service department have been completely allocated, that department would not be allocated any other cost.
The Reciprocal method, which is the last method, is the most accurate and complicated method. This method first establishes the relationship among the service departments in equation form and uses the established equations to allocate the costs of service departments. We may not discuss it further than this.
All organizations have a collective sense of purpose, whether it's producing oil or creating the fastest Internet search engine.
A. True
B. False
Answer:
true
Explanation:
sorry if im wrong
Tibbs Inc. had the following data for the year ending 12/31/07: Net income = $300; Net operating profit after taxes (NOPAT) = $400; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,300. What was its return on invested capital (ROIC)?
Answer:
17.39%
Explanation:
ROIC = NOPAT / Total net operating capital
ROIC = $400 / $2,300
ROIC = 0.17391304
ROIC = 17.391304%
Hence, the ROIC is 17.39%
1. A stock has an expected return of 10.2 percent, the risk-free rate is 4.1 percent, and the market risk premium is 7.2 percent. What must the beta of this stock be?
Answer:
Beta is 0.85
Explanation:
The value of Beta can de derived from the CAPM formula of expected return
expected return=risk-free rate+Beta*market risk premium
expected return is 10.2%
risk-free rate is 4.10%
market risk premium is 7.2%
Beta is unknown
10.20%=4.10%+Beta*7.20%
10.20%-4.10%=Beta*7.20%
6.10% ==Beta*7.20%
Beta=6.10% /7.20%
Beta= 0.85
In a long-run equilibrium where firms have identical costs, it is possible that some firms in a competitive market are making a positive economic profit.
a) true
b) false
In 1998, the German auto manufacturer Daimler-Benz purchased Chrysler for $36 billion which was one of the biggest mergers of its kind back then. Both of these companies were in the automotive business. Even though they had different cultures and market focus, this merger is an example of a:
Answer:
The answer is
horizontal merger.
Explanation:
A merger is when two or more businesses join together to form a single company.
It is usually a voluntary action on the part of all companies.
It is called vertical mergers when the merger joins different businesses with the same supplier or customer base.
When mergers join similar businesses These are considered horizontal mergers.
hope this help's!! :)
An investment adviser is opening that day's mail and receives a check from a customer for $8,000, however the adviser shows no balance due from the customer - the check was mailed in error to the adviser. 5 business days later, the investment adviser mails the check back to the customer. Under NASAA rules, the investment adviser:
Answer: has not taken custody of the fund of the customer and must also keep a record of the check he or she received.
Explanation:
From the question, we are told that an investment adviser is opening the mail and receives a check from a customer for $8,000, however the adviser shows no balance due from the customer - the check was mailed in error to the adviser. We are further told that five business days later, the investment adviser mails the check back to the customer.
Under NASAA rules, the investment adviser has not taken custody of the fund of the customer and must also keep a record of the check he or she received. The check was received but has been returned. He must also have a copy of the check in case there is argument of further explanation to be made.
The merger of two firms producing personal computers is an example of a __________ merger. Group of answer choices
Answer:
Horizontal merger
Explanation:
The merger of two firms producing personal computers is an example of a horizontal merger
A horizontal merger is a merger or business collaboration that happens between firms that operate in the same industry. The products being sold are similar and in the same market
As of December 31, Bayer, Inc., agrees to provide a bonus of $50,000 to its employees (to be equally shared by all). The bonus will be paid in January.
Requried:
Prepare the December 31 adjusting entry for Bayer by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Dr Bonus expense $50,000
Cr Bonus payable $50,000
Explanation:
Preparation of Bayer, Inc., Journal entry
Since we were told that on December 31, Bayer, Inc agrees to provide a bonus of $50,000 to its employees this means we have to Debit bonus expenses with the amount of $50,000 and Credit Bonus payable with the same amount.
Dec. 31
Dr Bonus expense $50,000
Cr Bonus payable $50,000