Answer:
Should they switch to the new apartment? If they plan to stay 6 months.
No, since the difference in rent is too small and it is simply not worth it.
If they were planning to saty in teh new apartment for 1 year, they would need to find the epresent value of the difference between one apartment and the other = $100 x 11.255 (PVIFA, 1%, 12 peridos) = $1,125.50. This amount is higher than the initial deposit, so they should choose the other apartment.
what does CPI stand for and what is it used to measure?
Answer:
please give me brainlist and follow
Explanation:
Consumer Price Index
The Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.
Which of the following is a well written goal for developing a system?
O To institute a more efficient food preparation system
O To hire more housekeepers
To institute a two-week training program for the front desk employees to teach them how to use the new communication system
O To earn at least $5,000 in gift shop revenue more next month
a good written goal for developing a system is B
On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 20 million, $5.00 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $16 on June 13. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is to be effected in the form of a 100% stock dividend. What is the par per share after the split
Answer:
a. No journal entry is required.
b. Par per share after the split = $2.50
Explanation:
a. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is to be effected in the form of a 100% stock dividend.
No journal entry is required for this because the total value of the shares has not changed due to 2-for-1 stock split.
This is because the 2-for-1 stock split has only increased the number of shares outstanding by 2, but at the same time reduces the par value of the share by half making the total value of the shares to remain the same.
b. What is the par per share after the split.
As explained in a above, the effect of 2-for-1 stock split is to reduce the par value of the share by half.
Therefore, the par per share after the split can be calculated as follows:
Par per share after the split = Par per share before the split / 2 = $5 / 2 = $2.50
OS Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the airline industry. Assume that on July 1 the company issues a one-year note for the amount of $5.3 million. Interest is payable at maturity. Required: Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: (Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)
Answer:
the question is incomplete, so I looked for a similar one online:
December 31, year 1:
interest expense = $5,300,000 x 12% x 6/12 = $318,000
September 30, year 1:
interest expense = $5,300,000 x 10% x 3/12 = $132,500
October 31, year 1:
interest expense = $5,300,000 x 9% x 4/12 = $159,000
January 31, year 2:
interest expense = $5,300,000 x 6% x 7/12 = $185,500
Prepare an income statement for the year ended December 31, through the gross profit for Baxter Company using the following information. Baxter Company sold 8,600 units at $125 per unit. Normal production is 9,000 units. (Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance.)
Standard: 5 yards per unit at $6.30 per yard
Standard: 2.25 hours per unit at $15.00
Standard: variable overhead $1.05 per unit
Standard: fixed overhead $211,500 (budgeted and actual amount)
Actual yards used: 43,240 yards at $6.25 per yard
Actual hours worked: 19,100 at $14.90 per hour
Actual total factory overhead: $235,500
Answer:
Baxter Company
Baxter Company
Income Statement
For the year ended December 31
Sales revenue $1,075,000
Cost of goods sold 755,252
Gross profit $319,748
Explanation:
a) Data and Calculations:
Normal production units = 9,000
Units sold at $125 per unit = 8,600
Ending inventory = 400
Sales revenue = $1,075,000 (8,600 * $125)
Standard: 5 yards per unit at $6.30 per yard
Standard: 2.25 hours per unit at $15.00
Standard: variable overhead $1.05 per unit
Standard: fixed overhead $211,500 (budgeted and actual amount)
Cost of production:
Direct materials (43,240 yards at $6.25 per yard) = $270,250
Direct labor (19,100 at $14.90 per hour) = 284,590
Total factory overhead incurred = 235,500
Total cost of production = $790,340
Units produced = 9,000
Cost per unit = $87.82
Cost of goods sold = 8,600 * $87.82 = $755,252
Cost of ending inventory = 400 * $87.82 = $35,128
What are various options to regulate monopolies in the United States?
I’ll give brainliest
Answer:
ok I'll give you what I know monopolies are one business operating so try and use that
[tex]\color{green}{\tt {Regulation \: of \: monopoly}}[/tex]
The government may wish to regulate monopolies to protect the interests of consumers. For example, monopolies have the market power to set prices higher than in competitive markets. The government can regulate monopolies through:Price capping – limiting price increasesRegulation of mergersBreaking into cartels and unfair practisesNationalisation – government ownership.[tex]\color{red}{\tt {Why \: the \: Government \: regulates \: monopolies}}[/tex]
Prevent excess prices. Without government regulation, monopolies could put prices above the competitive equilibrium. This would lead to allocative inefficiency and a decline in consumer welfare.Quality of service. If a firm has a monopoly over the provision of a particular service, it may have little incentive to offer a good quality service. Government regulation can ensure the firm meets minimum standards of service.Monopsony power. A firm with monopoly selling power may also be in a position to exploit monopsony buying power. For example, supermarkets may use their dominant market position to squeeze profit margins of farmers.Promote competition. In some industries, it is possible to encourage competition, and therefore there will be less need for government regulation.Natural Monopolies. Some industries are natural monopolies – due to high economies of scale, the most efficient number of firms is one. Therefore, we cannot encourage competition, and it is essential to regulate the firm to prevent the abuse of monopoly power.#CarryOnLearning
#LetsEnjoyTheSummer
→XxKim02xXlist of purpose & uses of assets
Answer:
Explanation:
Assets may be used to store wealth, create income, and reduce future expenses.
Assets are reported on a company's balance sheet and are bought or created to increase a firm's value or benefit the firm's operations. An asset can be thought of as something that, in the future, can generate cash flow, reduce expenses, or improve sales, regardless of whether it's manufacturing equipment or a patent.
Hope this helped!!
Break-even analysis can be used by a firm that produces more than one product, but:
a. the results are estimates, not exact values.
b. the firm must allocate some fixed cost to each of the products.
c. each product has its own break-even point.
d. the break-even point depends upon the proportion of sales generated by each of the products.
e. None of these statements is true.
Answer:
d. the break-even point depends upon the proportion of sales generated by each of the products.
Explanation:
Breakeven analysis is the method used to determine the number of units a firm must sell at a specific price to cover all costs. It is a concept that allow business owners or financial experts to determine and know what they need to sell either on a monthly or annual (yearly) basis, in order to be able to cover the costs of doing the business.
Basically, it helps us to determine the amount of revenue required for the smooth operation of a business, amount of money needed to cover both fixed and variable costs. Using the breakeven analysis, production costs can be categorized as;
1. Variable costs: these are costs that usually change with respect to changes in the level of production or output. Examples are direct labor, maintenance of equipment or machines, raw materials costs etc.
2. Fixed costs: these are the costs which are not directly related to the level of production or not affected by the quantity of output in an organization. Examples are rent, depreciation, administrative cost, research and development costs, marketing costs etc.
Break-even analysis can be used by a firm that produces more than one product, but the break-even point depends upon the proportion of sales generated by each of the products.
The corporate charter of Concord Corporation allows the issuance of a maximum of 4,300,000 shares of $1 par value common stock. During its first three years of operation, Michael issued 2,060,000 shares at $15 per share. It later acquired 88,000 of these shares as treasury stock for $25 per share. Based on the above information, answer the following questions:
a. How many shares were authorized?
b. How many shares were issued?
c. How many shares are outstanding?
d. What is the balance of the Common Stock account?
e. What is the balance of the Treasury Stock account?
Answer:
a. 4,300,000 shares
This is the maximum issuance allowed by the Corporate Charter so is the authorized share quantity.
b. 2,060,000 shares were issued as per the question
c. Number of shares outstanding = Number of shares issued - Treasury shares
= 2,060,000 - 88,000
= 1,972,000 shares
d. Balance in Common stock account:
= Number of shares issued * par value
= 2,060,000 * 1
= $2,060,000
e. Balance in Treasury:
= 800,000 * 25
= $2,200,000
People who are confident but not
about their own talents are more
impressive than people who don't believe in their own abilities.
A.aggressive
B.arrogant
C.insecure
D.embarrassed
Answer:
C. insecure
when youre insecure you dont feel good about yourself or your abilities
On August 2, ABC Co. receives a $7,900, 90-day, 10.5% note from its customer who is past due on what he owes. This note is replaces the customer's $7,900 account receivable. Prepare ABC's journal entry assuming the note is honored by the customer on October 31 of that same year. (Do not round intermediate calculations. Round your answers to nearest whole dollar value. Use 360 days a year.)
Answer:
Oct 31
Dr Cash $8,107
Cr Notes receivable$7,900
Cr Interest revenue $207
Explanation:
Prepare ABC's journal entry assuming the note is honored by the customer on October 31 of that same year
Oct 31
Dr Cash $8,107
[$7,900+($7,900*10.5%*90/360)]
Cr Notes receivable$7,900
Cr Interest revenue $207
($7,900*10.5%*90/360)]
Which of the following statements concerning the add-on interest method is true?
O Interest is added to the amount borrowed before the payments are calculated.
O It usually results in a higher APR than the discount interest method.
O The lender subtracts the interest due from the principal before the borrower receives the loan proceeds.
O It results in a lower APR than the simple interest method.
Answer:
O Interest is added to the amount borrowed before the payments are calculated.
Required information
Problem 9-3A Aging accounts receivable and accounting for bad debts LO P2, P3
[The following information applies to the questions displayed below.]
Jarden Company has credit sales of $3,100,000 for year 2017. On December 31, 2017, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $19,564. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here.
December 31, 2017
Accounts Receivable Age of
Accounts Receivable Expected Percent
Uncollectible
$ 620,000 Not yet due 0.85 %
248,000 1 to 30 days past due 1.60
49,600 31 to 60 days past due 6.10
24,800 61 to 90 days past due 30.75
4,960 Over 90 days past due 64.00
Problem 9-3A Part 1
Required:
1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable method.
Problem 9-3A Part 2
2. Prepare the adjusting entry to record bad debts expense at December 31, 2017.
Answer and Explanation:
1.
The estimation of the required balances are as follows:
Age Balance Estimated Estimated Uncollectible amount
of Dec-31 Percentage
Accounts Uncollectible
Not yet due $620,000 0.85% $5,270.00
1–30 days $248,000 1.60% $3,968.00
31–60 days $49,600 6.10% $3,025.60
61–90 days $24,800 30.75% $7,626.00
Over 90 days $4,960 64.00% $3,174.40
Total $947,360 $23,064
2.
Now the journal entry is
but before that following calculation is needed
Ending balance of allowance for doubtful account $23,064
Less: Opening balance in allowance for doubtful account -$19,564
Bad debt expense for the year $3,500
The journal entry is
Bad debt expense $ 3,500
To Allowance for doubtful accounts $ 3,500
(Being bad debt expense is recorded)
Comparative advantage in production is achieved by: Group of answer choices Subsidizing, specializing, and lowering the price of an exported good. Being able to produce a good with fewer inputs than in other countries. Having terms of trade that are better than the terms of trade faced in other countries. Having a lower opportunity cost of producing a good relative to that of other countries.
Answer:
Having a lower opportunity cost of producing a good relative to that of other countries.
Explanation:
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
Also, the principle of comparative advantage asserts that countries can become better off by specializing in what they do best.
This simply means that, any country applying the principle of comparative advantage, would enjoy an increase in output and consequently, a boost in their Gross Domestic Products (GDP).
Hence, comparative advantage in production is achieved by having a lower opportunity cost of producing a good relative to that of other countries.
Gilberto Company currently manufactures 75,000 units per year of one of its crucial parts. Variable costs are $2.45 per unit, fixed costs related to making this part are $85,000 per year, and allocated fixed costs are $72,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.65 per unit guaranteed for a three-year period.
Required:
Calculate the total incremental cost of making 75,000 and buying 75,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?
Answer:
$2,000
Explanation:
The total incremental cost of making 75,000 and buying 75,000 units.
Assume that the labor market for retail workers is generally unskilled. If a minimum wage is set in the labor market for retail workers and that this minimum wage is above the equilibrium wage in this particular labor market, then __________ . Select the correct answer below: there will be a shortage of retail workers in this labor market there will be a surplus of retail workers in this labor market. there will be a non-binding price floor there will be a non-effective minimum wage
Answer:
there will be a surplus of retail workers in this labor market.
Explanation:
In the attached diagram the scenario is illustrated.
When the minimum wage is above the equilibrium wage it means that the minimum wage is above what employees are willing to pay workers. So employees will be less wiling to pay this amount.
There will be a reduction in the number of available slots for workers.
On the other hand workers will receive higher wage than they expected but since the slots for work are now limited there will be a surplus of labour in the market
Pet Supplies Inc., a pet wholesale supplier, was organized on January 1. Projected sales for each of the first three months of operations are as follows: January $300,000 February 500,000 March 750,000 All sales are on account. Seventy-five percent of sales are expected to be collected in the month of the sale, 20% in the month following the sale, and the remainder in the second month following the sale. Prepare a schedule indicating cash collections from sales for January, February, and March. Enter all amounts as positive numbers.
Answer:
January = $225,000
February = $435,000
March = $677,500
Explanation:
Use the collection policy given to guide your calculations for cash collection.
Month`s Collection = 75 % of Current Month`s Sale + 20 % of Previous Month`s Sale + 5 % of Second Previous Month` Sales
Therefore cash collections for January, February, and March will be :
January = $300,000 x 75 % = $225,000
February = $500,000 x 75 % + $300,000 x 20% = $435,000
March = $750,000 x 75 % + $500,000 x 20 % + $300,000 x 5 % = $677,500
A schedule indicating cash collections from sales for January, February, and March will indicate the following Total Collections :
January = $225,000
February = $435,000
March = $677,500
Exercise 10-3 Recording bond issuance and interest LO P1 On January 1, Boston Enterprises issues bonds that have a $1,950,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months
Answer:
$87,750
Explanation:
Calculation to determine How much interest will Boston pay (in cash) to the bondholders every six months
Using this formula
Semiannual cash interest paymen=Par maturity value*Semi-annual rate
Let plug in the formula
Semiannual cash interest payment=$1,950,000*9%/2
Semiannual cash interest payment=$87,750
Therefore The cash paid every six months would be $87,750
On April 1, Sunland Company purchased for $1620000 a tract of land on which a warehouse and office building was located. The following data were collected concerning the property: Current Assessed Valuation Vendor's Original Cost Land $620000 $570000 Warehouse 390000 360000 Office building 790000 690000 $1800000 $1620000 What are the appropriate amounts that Sunland should record for the land, warehouse, and office building, respectively
Answer:
Land $558,000
Warehouse $351,000
Office building $711,000
Explanation:
Calculation to determine the appropriate amounts that Sunland should record for the land, warehouse, and office building, respectively
ALLOCATED COST
LAND $620000/ $1,80,0000*$1,620,000=$558,000
WAREHOUSE 390000/$1800000*$1620000=$351,000
OFFICE BUILDING 790000/$1800000*$1620000=$711,000
Total $1,800,000 $1,620,000
Therefore the appropriate amounts that Sunland should record are :
Land $558,000
Warehouse $351,000
Office building $711,000
Renaissance Creations restores antique stained glass windows. All jobs generate some breakage or improper cuts. This scrap can be sold to stained glass hobbyists. Renaissance Creations expects to incur approximately 45,000 direct labor hours during 2013. The following estimates are made in setting the predetermined overhead rate for 2013:
One job that Renaissance Creations completed during 2013 was a stained glass window of the Pierce family crest that took 125 hours, and direct labor is invoiced at $20 per hour. Total direct material cost for the job was $890. Scrap that was generated from this job was sold for $93.
a. What was the predetermined overhead rate (set on the basis of direct labor hours) for 2013?
b. What was the cost of the Pierce stained glass window?
c. Prepare the journal entry to record the sales value of the scrap from the Pierce stained glass window.
d. Assume instead that only certain jobs generate scrap. What was the cost of the Pierce stained glass window?
Answer:
hello your question has some missing information attached below is the missing information
answer :
a) $7
b) $4265
c) attached below
d) $4192
Explanation:
a) determine the predetermined overhead rate
= Total estimated overhead / estimated direct labor hour
Total estimated overhead = $315,000
estimated direct labor hour = 45,000
hence predetermined overhead rate = 315,000 / 45,000 = $7
b) calculate the cost of the Pierce stained glass window
Direct material cost = $890
number of labor hours = 125
direct labor cost = $20 per hour
predetermined overhead rate = $7
∴cost of glass window = [ ( 890 + ( 125 * 20 ) + ( 125 * 7 ) ] = $4265
c) Journal entry used to record sell of scrap
Account name
cash $93
manufacture overhead $93
d) assuming only some jobs generate scrap
first we will calculate the overhead rate per hour
= ( $297000 + $25200) / 45,000 = $7.16
∴ Total cost of pierce stained glass window
= [ (direct material cost + number of labor hours ) + number of labor hours ( predetermined overhead rate ) ] - $93
= $4285 - $93 = $4192
Question 3. A Lilian and Brad both graduated from a law college, decided to donate money to their college. They setup 5 scholarships per year starting in 2046 for every year (assume more than 100 years). If $40,000 is invested in the trust fund in the year 2021 and if it earns a very good rate of return of 10% per year, what will the amount of each scholarship are starting in 2035
Answer:
If $40,000 is invested in the trust fund in the year 2021 and if it earns a very good rate of return of 10% per year, the amount of each scholarship, starting in 2035 will be:
= $167,089.93
Explanation:
a) Data and Calculations:
Investment in the trust fund in 2021 = $40,000
Investment period = 15 years (2021 to 2035)
Rate of return = 10%
From an online financial calculator:
N (# of periods) 15
I/Y (Interest per year) 10
PV (Present Value) 40000
PMT (Periodic Payment) 0
Results
FV = $167,089.93
Total Interest $127,089.93
Colquhoun International purchases a warehouse for $311,000. The best estimate of the salvage value at the time of purchase was $16,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years.
Required:
a. Calculate annual depreciation expense for the first four years.
b. Determine the depreciation expense for the final fifteen years of the asset’s life.
Answer:
a. $11,800
b. $16,520
Explanation:
Depreciation expense using straight line method is calculeted as :
Deprecation expense = (Cost - Salvage Value) ÷ Estimated useful life
therefore,
Annual depreciation expense for the first four years.
Deprecation expense = ($311,000 - $16,000) ÷ 25 = $11,800
The depreciation expense for the final fifteen years of the asset’s life.
Depreciable Amount = Cost - Salvage Value - Accumulated depreciation
= $311,000 - $16,000 - ($11,800 x 4)
= $247,800
Deprecation expense = $247,800 ÷ 15 = $16,520
Explain why monopolies do exist?
Answer:
When one company exerts sole control over a resource that is necessary for the production of a specific product, the market may become a monopoly.
Explanation:
This is because you can control companies if you are the only place available for a resource for example water in dry contents
The following data (in millions) are taken from the financial statements of Tarrow Corporation: Recent Year Prior Year Revenue $386,972 $356,000 Operating expenses 326,634 303,000 Operating income $60,338 $53,000 a. For Tarrow Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: Revenue Operating expenses Operating income Amount of Change (in millions) Percent of Change (round to 1 decimal place) Increase or Decrease 1. Revenue $fill in the blank 1 30,976 fill in the blank 2 % 2. Operating expenses fill in the blank 4 fill in the blank 5 3. Operating income fill in the blank 7 fill in the blank 8 b. During the recent year, revenue and operating expenses . As a result, operating income , from the prior year.
Answer:
Tarrow Corporation
a) Amount of change in millions and the percent of change:
Amount Percentage Direction
of Change of Change of Change
Revenue $30,972 8.7% Increase
Operating expenses 23,634 7.8% Increase
Operating income $7,338 13.8% Increase
b) During the recent year, revenue and operating expenses increased by 8.7% and 7.8% respectively. As a result, the operating income increased by 13.8%, from the prior year.
Explanation:
a) Data and Calculations:
Tarrow Corporation:
Recent Year Prior Year Change Percentage
Revenue $386,972 $356,000 $30,972 8.7% Increase
Operating expenses 326,634 303,000 23,634 7.8% Increase
Operating income $60,338 $53,000 $7,338 13.8% Increase
Paul’s will creates a General Power of Appointment Trust (GPOA) that distributes income to his wife annually for life and gives his wife a general power of appointment over the assets in the trust. Which of the following statements is true regarding a GPOA Trust? A. The GPOA Trust only qualifies for the unlimited marital deduction if the trustee agrees to make distributions of principal to Paul’s trust. B. The unlimited marital deduction cannot be elected over the property transferred to the trust because Paul’s wife cannot appoint assets to herself, her creditors, or to anyone on her behalf. C. The unlimited marital deduction is not available because Paul’s wife does not have the current right to the assets in the trust. D. The GPOA Trust automatically qualifies for the unlimited marital deduction because Paul’s wife has a general power of appointment over the trust’s assets.
Answer: D. The GPOA Trust automatically qualifies for the unlimited marital deduction because Paul's wife has a general power of appointment over the trust's assets.
Explanation:
General Power of Appointment Trust (GPOA) refers to a power of appointment which is a legally binding provision that's contained in a trust such that the beneficiary possess the authority to alter the beneficiaries of the trust.
In this case, Paul's wife possess the power of appointment to anyone on her behalf. Therefore, The GPOA Trust automatically qualifies for the unlimited marital deduction because Paul's wife has a general power of appointment over the trust's assets.
Policy makers have been trying to diminish the gender gap in pay for several decades. Let's begin by determining the gender gap in 2004. For both of the maps, move the timeline back to 2004. The overall statistics give two values. The first value (the National Median) is the amount earned by the person for whom half of the country earn more and half earn less. Normally in thinking about pay inequality, we give the amount that women earn for every dollar a man earns. To get that number, divide the National Median for women by the National Median for men. In 2004 how much did women earn, on average for every dollar earned by a man?
a. $0.96
b. $1.32
c. $0.76
d. $0.80
Answer:
c. $0.76
Explanation:
Note: The picture below contains the national median for male and female workers
National median for female workers = $31,374
National median for male workers = $41,194
Earnings of women for every dollar of man’s earnings = National median for female workers / National median for male workers
Earnings of women for every dollar of man’s earnings = 31,374/41,194
Earnings of women for every dollar of man’s earnings = 0.76
On November 15, 2018, X Corp., an accrual basis taxpayer, enters into a contract which will provide the corporation with the use of manufacturing equipment for the 5 year period beginning on December 1, 2018. X Corp. paid $100,000 for the 5-year period on December 1, 2018. How much, if any of the payment can X Corp. deduct in 2018
Answer: $20000
Explanation:
Since $100,000 is paid for the contract which will provide the use of manufacturing equipment for 5 years, the payment that can be deducted for each of the 5 years will be an equal payment.
Therefore, the payment that X Corp. can deduct in 2018 will be:
= $100,000 / 5
= $20000
All of the following are examples of current account transactions EXCEPT: Elimination Tool Select one answer A The United States purchases 200 tons of Canadian bacon. B Argentina purchases 10,000 French berets. C Mexico purchases 500 Spanish matador outfits. D Germany pays 1 million euro for the services of Swiss accountants. E China purchases $10 billion of United States government securities.
Answer:
E
Explanation:
the current account of a country measures the value of the trade balance, transfers and the net income
the component of the current account includes
trade balance - it measures the value of the import and export of goods and services of a country.
net income - measures the value of the income received by a country's residents less the income paid to foreigners
transfers - it includes income sent home by a country's citizens working outside the country
Asset income - measures changes in the asset income
this transaction - China purchases $10 billion of United States government securities - would be included in the capital account
Portions of the financial statements for Myriad Products are provided below.
MYRIAD PRODUCTS COMPANY
Income Statement
For the Year Ended December 31, 2016
($ in millions)
Sales $ 620
Cost of goods sold (217)
Gross margin 403
Salaries expense $ 85
Depreciation expense 72
Patent amortization expense 5
Interest expense 12
Loss on sale of land 3 (177)
Income before taxes 226
Income tax expense (113)
Net Income $ 113
MYRIAD PRODUCTS COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2016 and 2015
($ in millions)
Year
2016 2015 Change
Cash $ 108 $ 104 $ 4
Accounts receivable 224 238 (14 )
Inventory 442 454 (12 )
Accounts payable 150 142 8
Salaries payable 82 90 (8)
Interest payable 31 24 7
Income taxes payable 21 14 7
Required:
Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the indirect method. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.)
Answer:
MYRIAD PRODUCTS COMPANY
Cash flow from Operating Activities
($ in millions)
Net Income $ 113
Adjustment of non-cash items :
Depreciation expense $72
Patent amortization expense $5
Loss on sale of land $3
Adjustment to Changes in Working Capital :
Decrease in Accounts receivable $14
Decrease in Inventory $12
Increase in Accounts payable $8
Decrease in Salaries payable ($8)
Increase in Interest payable $7
Increase in Income taxes payable $7
Net Cash Provided by Operating Activities $219
Explanation:
The Indirect method reconciles the Net Income and Operating Cash flow by adjusting for non- cash items and changes in working capital during the year.
3
Hame and explain
of skills that should be possess by an entrepreneur
Answer:
1. Curiosity. Great entrepreneurs are tasked with identifying new problems, identifying potential niche opportunities, refactoring their existing business processes, and innovating. This necessitates a passion for various fields of study and business cases that are outside of one's comfort zone.
2. Time management. Prioritization, milestone definition, execution, and iteration are all critical. None of this would be possible without the proper project management and time allocation methodologies in place to complete the work.
3. Strategic thinking. Learning to break down a problem to its simplest components and identify growth opportunities. Inventive problem-solving and spotting the low-hanging fruit. Defining an MVP's scope and testing concepts in a short amount of time and on a tight budget.