Answer:
C.
Explanation
A - Private schools recieve federal funds and so can their students.
B - Some private loans can waive interest, but not all.
D - any student can receive scholarships, if they qualify or if the are awarded the scholarship after applying.
Good luck in your studies.
If a taxpayer sells property for cash, the amount realized consists of the net proceeds from the sale. For each of the following, indicate the effect on the amount realized if:
a. The property is sold on credit. The amount realized includes both the cash received at the time of sale and the cash to be received in the future .
b. A mortgage on the property is assumed by the buyer. The assumption by the buyer of the seller's mortgage the amount realized by_______ .
c. A mortgage on the property of the buyer is assumed by the seller. The assumption by the seller of the buyer's mortgage the amount realized by______ .
d. The buyer acquires the property subject to a mortgage of the seller. The buyer's acquisition of the property subject to the mortgage of the seller the amount realized by_______ .
e. Stock that has a basis to the purchaser of $6,000 and a fair market value of $10,000 is received by the seller as part of the consideration. The receipt of the stock by the seller the amount realized by the seller by_________
Answer:
a. Is answered
b. The amount realized increases.
As the mortgage is assumed by the buyer, the seller is now free of the debt in addition to making cash from selling. Realized value therefore increases.
c. The amount realized decreases.
As the mortgage is assumed by the seller, they will have to pay off the mortgage from the cash received therefore their realized value decreases.
d. Amount realized increases.
As the buyer is gets the property subject to the mortgage, they will be the ones making the mortgage payments instead of the seller so the seller's realized value will increase.
e. Realized value increases to $10,000.
The seller accepted the stock so the fair value will be the amount considered for the realized value.
Chemco Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproof anything. Over a 5-year period, the costs associ-ated with the pilot test product line were as fol-lows: first cost of $30,000 and annual costs of $18,000. Annual revenue was $27,000 and used equipment was salvaged for $4000. What rate of return did the company make on this product
Answer:
Chemco Enterprises
The rate of return that the company made on this product is:
= 15.83%
Explanation:
a) Data and Calculations:
Project duration = 5 years
Initial Cost = $30,000
Total Annual costs = 90,000 ($18,000 * 5)
Total costs $120,000
Total Annual revenue = $135,000 ($27,000 * 5)
Salvage value = 4,000
Total revenue = $139,000
Return = $19,000 ($139,000 - $120,000)
Rate of return = $19,000/$120,000 * 100) = 15.83%
b) The rate of return compares the gain from an investment or a product with the costs of the investment. The resulting figure is then expressed as a percentage.
A company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $24,000 indicates that Dept. Y had a direct wage expense of $3,000 and Dept. Z had a direct wage expense of $5,000. The remaining expenses are indirect and analysis indicates they should be allocated evenly between the two departments. Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:
Answer:
$11,000;$13,000
Explanation:
Calculation for Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:
First step is to calculate the Indirect wages
Indirect wages = 24,000 - (3000+5000)
Indirect wages= 16,000
Now let calculate Departmental wage expenses for Dept. Y and Dept. Z, respectively,
Departmental wages for dept Y
= 3000 + (16,000/2)
Departmental wages for dept Y=$ 11,000
Departmental wages for dept Z
= 5000 + (16,000/2)
Departmental wages for dept Z= $13,000
Therefore Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:$11,000 ; $13,000
During the first two years, ABC drove the company truck 15,000 and 22,000 miles, respectively, to deliver merchandise to its customers. The company originally purchased the truck for $175,000. If the truck has an estimated life of 10 years or 300,000 miles, with an estimated residual value of $25,000, what amount of depreciation expense should ABC record in the second year using the activity-based method
Answer:
11,000
Explanation:
In addition to telling readers why an illustration is important, why else should you refer to it in the text of your document?
Answer:
To assist the readers to relate objects and actions with texts.
Explanation:
Aside from telling readers why an illustration is important, the other reason you should refer to it in the text of your document is "to assist the readers to relate objects and actions with texts."
This is evident in the fact that illustration in a text is a means of presenting a graphical representation of ideas, processes, or theories to aid or give elaborate meaning to what is written.
Appliance Center is an experienced home appliance dealer. Appliance Center also offers a number of services for the home appliances that it sells. Assume that Appliance Center sells ovens on a standalone basis. Appliance Center also sells installation services and maintenance services for ovens. However, Appliance Center does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows.
Oven only 803
Oven with installation service 910
Oven with maintenance services 976
Oven with installation and maintenance services 1,040
In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $173. Additionally, the incremental amount charged by The Center for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event The Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $803. Assume that a customer purchases an oven with both installation and maintenance services for $1,040.
Required:
Indicate the amount of revenues that should be allocated to the oven, the installation, and to the maintenance contract.
Answer:
Oven $1,133
Installation $150
Maintenance contract $244
Explanation:
Calculation to Indicate the amount of revenues that should be allocated to the oven, the installation, and to the maintenance contract.
Oven= $ 803/($910-173)× $1,040
Oven= $ 803/737×$1,040
Oven =$1,133
Installation= ($910-$803)/($910-173)× $1,040
Installation=$107/737×$1,040
Installation=$150
Maintenance contract= $173/($910-173)× $1,040
Maintenance contract= $173/737×$1,040
Maintenance contract=$ 244
Therefore the amount of revenues that should be allocated to the oven, the installation, and to the maintenance contract are :
Oven $1,133
Installation $150
Maintenance contract $ 244
Express Meals is a local bistro that has budgeted inventory purchases as follows: September: $ 300,000 October: $ 350,000 November: $ 390,000 Express pays for 20% of their purchases during the month of purchase, 70% during the month following the purchase, and the remaining 10% two months after the month of purchase. What is the budgeted accounts payable balance on November 30
Answer:
Express Meals
The budgeted accounts payable balance on November 30 is:
= $347,000.
Explanation:
a) Data and Calculations:
Budgeted inventory purchases:
September: $ 300,000
October: $ 350,000
November: $ 390,000
Payment to suppliers:
Month of purchase = 20%
Month following purchase = 70%
Two months after purchase = 10%
September October November Total
Purchase $300,000 $350,000 $390,000 $1,040,000
Payments:
Month of purchase (20%) 60,000 70,000 78,000 $208,000
Month following purchase (70%) 210,000 245,000 $455,000
Two months after purchase (10%) 30,000 $30,000
Total payments 60,000 280,000 353,000 $693,000
Outstanding balance ($1,040,000 - $693,000) = $347,000
Billy has received a mediocre evaluation for the second year in a row. He knows that he has made improvements, but his supervisor just does not seem to notice or in Billy’s opinion, care. Billy likes his job and wants to keep it. He listens to what his supervisor says and then his supervisor asks Billy to prepare a written response. Before Billy leaves the room to prepare the response, how should he respond to his supervisor?
Answer:
He could take deep breaths and then respond nonjudgmentally
Explanation:
From the question, we are informed about Billy who has received a mediocre evaluation for the second year in a row. He knows that he has made improvements, but his supervisor just does not seem to notice or in Billy’s opinion, care. Billy likes his job and wants to keep it. He listens to what his supervisor says and then his supervisor asks Billy to prepare a written response. Before Billy leaves the room to prepare the response, In this case should he respond to his supervisor by taking deep breaths and then respond non-judgmentally when addressing is supervisor.
isa Inc. uses the lower-of-cost-or-net-realizable-value (LCNRV) basis for its inventory. The following data are available at December 31 Units Cost/Unit NRV/Unit Cameras Minolta 6 $171 $166 Canon 7 149 159 Light Meters Vivitar 15 121 118 Kodak 11 122 135 What amount should be reported on Lisa's financial statements, assuming the lower-of-cost-or-net-realizable-value rule is applied
Answer:
Lisa Inc.
The amount that should be reported on Lisa's financial statements, assuming the lower-of-cost-or-net-realizable-value rule is applied is:
= $5,151.
Explanation:
a) Data and Calculations:
at December 31
Units Cost/Unit NRV/Unit Total Value
Cameras
Minolta 6 $171 $166 $996 ($166 * 6)
Canon 7 149 159 1,043 ($149 * 7)
Light Meters
Vivitar 15 121 118 1,770 ($118 * 15)
Kodak 11 122 135 1,342 ($122 * 11)
Total value of ending inventory $5,151
b) This implies that the value of the ending inventory is based on the lower of each product's cost or net realizable value. Once each individual product's lower cost is chosen, it is then multiplied by the units in ending inventory to obtain the value for the particular product's ending inventory. Then, the sum of the individual values becomes the value of all the ending inventory for Lisa Inc.
Choose an enterprise with which you are familiar that has undergone significant recent reorganization. Compare the new and old organizations with regard to (a) size and influence of specialized staff, (b) management levels, (c) typical spans of control, and (d) responsibility delegated to nonmanagerial professionals. What other changes occurred in the reorganization
Answer:
In 2015, G-oogle went for an reorganization, the company have a new CEO which enabled the two co-founders to focus on new business opportunities.
a. Each business unit have its own CEO which makes a great influence.
b. G-oogle restructured its organization by adding management levels which helps in ease in day to day operation.
c. Narrow span of control is better for the managers to control its subordinates and is currently practiced at G-oogle.
d. Responsibility is delegated to each unit CEO who is responsible for his/her business unit.
Explanation:
In 2015, G-oogle went for an reorganization, the company have a new CEO which enabled the two co-founders to focus on new business opportunities.
a. Each business unit have its own CEO which makes a great influence.
b. G-oogle restructured its organization by adding management levels which helps in ease in day to day operation.
c. Narrow span of control is better for the managers to control its subordinates and is currently practiced at G-oogle.
d. Responsibility is delegated to each unit CEO who is responsible for his/her business unit.
A company issued 70 shares of $30 par value preferred stock for $4,000 cash. The journal entry to record the issuance is:______.
A. Debit Cash $2,100; credit Preferred Stock $2,100.
B. Debit Investment in Preferred Stock $2,100; credit Cash $2,100.
C. Debit Cash $4,000; credit Preferred Stock $4,000.
D. Debit Preferred Stock $2,100, debit Investment in Preferred Stock $1,900; credit Cash $4,000.
E. Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100.
Answer:
E. Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100.
Explanation:
Journal Entry for Issuance of 70 shares of $30 par value preferred stock for $4,000 is -
Cash Debited - $4,000
Paid in Capital in excess of Par value Credited - $1,900
Preferred Stock (70 shares × $30 each) Credited - $2,100
The correct option is - E. Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100.
Explain why the sampling method stated in (1) is the most efficient
method.
Answer:
As with all probability sampling methods, simple random sampling allows the sampling error to be calculated and reduces selection bias. A specific advantage is that it is the most straightforward method of probability sampling.
Trustmark provides more than 2 million people with flexible medical, life, and disability benefits and fitness and wellness services. The company, headquartered in Lake Forest, Illinois, has more than 6,200 full- and part-time employees working in twenty five locations across the United States. Trustmark experienced steady growth until mid-1990, when it experienced financial pressures that forced it to re-evaluate its operations. Trustmark concentrated on core competencies, sold off businesses, and focused on generating capital. Once the company was financially sound, Trustmark executives moved to create a culture that would be open to innovation and opportunity. The challenge was to create a culture where all employees felt they could challenge that status quo and seek new opportunities. The key to creating this culture was developing effective leaders who supported it. Trustmark used workshops and 360-degree feedback to help the "Trustmark Renaissance," a radical change in the organization culture and mindset, succeed. The leadership program includes sessions, attended by senior leaders, directors, and managers, during which participants learn about leadership practices, such as how to inspire a shared vision, challenge the process, enable others to act, and encourage with the heart. During these sessions, participants also receive feedback from their 360-degree assessments. Participants also get one-on-one coaching where they can discuss their leadership challenges and their feedback. Participants are asked to identify development areas to focus on during the next step in the process, a two-day workshop. At the workshop, participants learn more about the leadership practices and how to improve the areas identified in their feedback. Participants leave the workshop with an improvement plan for improving their leadership effectiveness. Participants are paired with partners who are expected to provide post-workshop support, exchange action plans, and commit to follow-up to ensure success in using what they learned. 1- What development activities are used in this program? Why are they important? 2- What data or outcomes should be collected to monitor the effectiveness of the leadership development program? Explain the business reason for your choice or outcomes or data.
Answer:
Trustmark
1. The development activities used in this program are:
a. Leadership workshops
b. 360-degree feedback
c. One-on-one coaching
d. Improvement plans for participants
1b. These development activities enable participants to achieve success in their development learning.
2. The data or outcomes that should be collected to monitor the effectiveness of the leadership development program are the improved ability of participants to:
a. inspire a shared vision
b. challenge the process
c. enable others to act
d. encourage with the heart.
The business reason for the above-stated outcomes is that these outcomes will demonstrate that participants have actually improved their leadership skills. Their improved leadership skills will galvanize them to become effective leaders who could create and grab new business opportunities for the overall growth of the company.
Explanation:
Creating a culture open to innovation and opportunity will enable Trustmark to become competitive.
Leadership workshops are sessions where participants learn and improve their leadership skills.
360-degree feedback is a communication strategy that enables face-to-face or one-on-one interaction.
One-on-one coaching is a personalized form of coaching aimed at improving a leader's skills exclusively.
Improvement plans for participants enable workshop participants to develop their skills and grow in their leadership experience.
A project has expected sales of 15,000 units, plus or minus 4 percent, variable cost per unit of $120 plus or minus 3 percent, fixed costs of $311,000plus or minus 2 percent, and a sales price per unit of $168 plus or minus 2 percent. The depreciation expense is $74,000 and the tax rate is 35 percent. What is the contribution margin per unit for a sensitivity analysis using a variable cost per unit of $122
Answer:
$46
Explanation:
Calculation to determine the contribution margin per unit for a sensitivity analysis using a variable cost per unit of $122
Sales price per unit of $168
Less variable cost per unit ($122)
Contribution margin per unit $46
(168-$122)
Therefore the the contribution margin per unit for a sensitivity analysis using a variable cost per unit of $122 will be $46
Data related to the inventories of Costco Medical Supply are presented below: Surgical Surgical Rehab Rehab Equipment Supplies Equipment Supplies Selling price $ 260 $ 100 $ 340 $ 165 Cost 170 90 250 162 Costs to sell 30 15 25 10 In applying the lower of cost or net realizable value rule, the inventory of surgical equipment would be valued at: Multiple Choice $240. $170. $152. $230.
Answer:
$85
Explanation:
Calculation for what the inventory of surgical supplies would be valued at
Net realizable value = $100 - $15
Net realizable value = $85
Therefore based on the above calculation the inventory of surgical supplies would be valued at $85
The following data are available for the four steps: A B C D Activity time per unit (min) 0.25 0.33 0.2 0.5 Capacity per worker (units/min) 4 3 5 2 Number of workers 2 3 2 4 Suppose the steps in activity D are made easier, so the activity time per unit in step D is reduced by 50% (to 0.25 min per unit). If the assignment of workers to steps remains the same, what is the capacity of the entire process in units per min after the activity time per unit in step D is reduced by 50%
Solution :
A B C D
The Activity of time per unit(min) (X) 0.25 0.33 0.2 0.5
Capacity per worker(units/min) (Y) 4 3 5 2
Number of workers (Z) 2 3 2 4
Capacity (Units/min) (ZxY) 8 9 10 8
A and D re the bottlenecks with a minimum capacity of 8 units/min
Hence, initial system capacity = 8 units/min
It is given that activity time per unit in D step is [tex]$\text{reduced by 0.25}$[/tex] min per unit
Capacity/worker = 1/0.25 = 4 per min
Number of worker for D = 4
New capacity of D per min = 4 x 4 = 16 units
Steps A B C D
New capacity(units/min) 8 9 10 16
Therefore now, step A is the bottleneck as it has the lowest capacity of 8 units/min.
Capacity of the entire process = 8 units/min
5 Make versus buy, activity-based costing. The Svenson Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in 2017 and the expected costs in 2018: Current Costs in 2017 Expected Costs in 2018 Variable manufacturing costs Direct material cost per CMCB $ 180 $ 170 Direct manufacturing labor cost per CMCB 50 45 Variable manufacturing cost per batch for setups, materials handling, and quality control 1,600 1,500 Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBs are not made 320,000 320,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 800,000 800,000 Svenson manufactured 8,000 CMCBs in 2017 in 40 batches of 200 each. In 2018, Svenson anticipates needing 10,000 CMCBs. The CMCBs would be produced in 80 batches of 125 each. The Minton Corporation has approached Svenson about supplying CMCBs to Svenson in 2018 at $300 per CMCB on whatever delivery schedule Svenson wants. 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. 2. Suppose the capacity currently used to make CMCBs will become idle if Svenson purchases CMCBs from Minton. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton
Answer:
See below
Explanation:
Expected manufacturing costs 2018:
Direct materials $170 × 10,000 = $1,700,000
Direct labor $45 per unit × 10,000 = $450,000
Variable overhead per batch 1,500 × 80 = $120,000
Fixed overhead:
Avoidable $320,000
Not avoidable $800,000
1. Calculate that total expected manufacturing cost per unit of making CMCBs in 2018
= $1,700,000 + $450,000 + $120,000 + $320,000 + $800,000
= $3,390,000
Cost per unit = $3,390,000/10,000 units
= $339 per unit
2. Svenson should keep manufacturing the CMCBs
Costs if CMCBs are purchased from Minton = ($300 × 10,000) + $800,000
= $3,000,000 + $800,000
= $3,800,000
It means that the cost of purchasing is $410,000 [ $3,390,000 - $3,800,000] higher than the cost of manufacturing.
What was the opening price of Coca-Cola on Jan 1, 1962?
Answer:
I'm not 100 %sure but but I think 49 cents
Answer:
6.5 oz glass
Explanation:
a pharmacist and former confederate soldier produced the first Coca cola syrup on May 1886. Although most soda fountain drinks cost seven or eight cents at the time(for a 6.5 oz glass)
Sun Corporation received a charter that authorized the issuance of 86,000 shares of $6 par common stock and 19,000 shares of $75 par, 7 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation:
2018
Jan. 5 Sold 12,900 shares of the $6 par common stock for $8 per share.
12 Sold 1,900 shares of the 7 percent preferred stock for $85 per share.
Apr. 5 Sold 17,200 shares of the $6 par common stock for $10 per share.
Dec. 31 During the year, earned $303,500 in cash revenue and paid $241,400 for cash operating expenses.
31 Declared the cash dividend on the outstanding shares of preferred stock for 2018. The dividend will be paid on February 15 to stockholders of record on January 10, 2019.
31 Closed the revenue, expense, and dividend accounts to the retained earnings account.
2019
Feb. 15 Paid the cash dividend declared on December 31, 2017.
Mar. 3 Sold 2,850 shares of the $75 par preferred stock for $95 per share.
May 5 Purchased 550 shares of the common stock as treasury stock at $6 per share.
Dec. 31 During the year, earned $254,200 in cash revenues and paid $171,000 for cash operating expenses.
31 Declared the annual dividend on the preferred stock and a 0.50 per share dividend on the common stock.
31 Closed revenue, expense, and dividend accounts to the retained earnings account. Sold 14,400 shares of the $3 par common stock for $5 per share.
Record the entries in the General Journal of Sun Corporation. Note: Enter debits before credits.
Answer:
Sun Corporation
Journal Entries:
Jan. 5: Debit Cash $103,200
Credit Common stock $77,400
Credit APIC-Common stock $25,800
To record the sale of 12,900 shares at $8.
Jan. 12: Debit Cash $161,500
Credit 7% Cumulative Preferred stock $142,500
Credit APIC-Preferred stock $19,000
To record the sale of 1,900 shares at $85 each.
Apr. 5: Debit Cash $172,000
Credit Common stock $103,200
Credit APIC-Common stock $68,800
To record the sale of 17,200 at $10 each.
Dec. 31: Debit Cash $303,500
Credit Revenue $303,500
To record the revenue earned for the year.
Debit Operating expenses $241,400
Credit Cash $241,400
To record the payment of operating expenses for the year.
Debit Preferred Dividends $9,975
Credit Dividends Payable $9,975
To record the declaration of 7% on preferred stock of $142,500.
Debit Revenue $303,500
Credit Retained Earnings $303,500
To close revenue to retained earnings account.
Debit Retained Earnings $241,400
Credit Operating Expenses $241,400
To close operating expenses to retained earnings account.
Debit Retained Earnings $9,975
Credit Preferred Dividends $9,975
To close preferred dividends to retained earnings.
Feb. 15 Debit Dividends Payable $9,975
Credit Cash $9,975
To record the payment of Preferred dividends.
Mar. 3: Debit Cash $270,750
Credit 7% Cumulative Preferred stock $213,750
Credit APIC-Preferred stock $57,000
To record the issue of 2,850 shares at $95.
May 5: Debit Treasury Stock $3,300
Credit Cash $3,300
To record the repurchase of 550 common shares at $6.
Dec. 31: Debit Cash $254,200
Credit Revenue $254,200
To record revenue earned.
Debit Operating expenses $171,000
Credit Cash $171,000
To record the payment of operating expenses.
Debit Preferred Dividends $24,938
Credit Dividends Payable $24,938
To record the declaration of 7% on preferred stock of $356,250.
Debit Common Stock Dividends $14,775
Credit Dividends Payable $14,775
To record the declaration of $0.50 per share (29,550 common stock shares outstanding).
Debit Revenue $254,200
Credit Retained Earnings $254,200
To close the revenue to the retained earnings account.
Debit Retained Earnings $171,000
Credit Operating expenses $171,000
To close the operating expenses to the retained earnings account.
Debit Retained Earnings $39,713
Credit Preferred Dividends $24,938
Credit Common Stock Dividends $14,775
To close the dividends to the retained earnings account.
Explanation:
a) Data and Analysis:
Authorized share capital:
Common stock, 86,000 shares of $6 par
Outstanding common stock:
Jan. 5 = 12,900
Apr. 5 = 17,200
May 5 = (550)
Total = 29,550 shares
7% Cumulative Preferred stock, 19,000 shares of $75 par
Outstanding preferred stock:
Jan. 12 = 1,900
Mar. 3 = 2,850
Total = 4,750 shares
APIC = Additional Paid-in Capital
Jan. 5: Cash $103,200 Common stock $77,400 APIC-Common stock $25,800 (12,900 * $8)
Jan. 12: Cash $161,500 7% Cumulative Preferred stock $142,500 APIC-Preferred stock $19,000 (1,900 * $85)
Apr. 5: Cash $172,000 Common stock $103,200 APIC-Common stock $68,800 (17,200 * $10)
Dec. 31: Cash $303,500 Revenue $303,500
Operating expenses $241,400 Cash $241,400
Preferred Dividends $9,975 Dividends Payable $9,975 (7% of $142,500)
Revenue $303,500 Retained Earnings $303,500
Retained Earnings $241,400 Operating Expenses $241,400
Retained Earnings $9,975 Preferred Dividends $9,975
Feb. 15 Dividends Payable $9,975 Cash $9,975
Mar. 3: Cash $270,750 7% Cumulative Preferred stock $213,750 APIC-Preferred stock $57,000 (2,850 * $95)
May 5: Treasury Stock $3,300 Cash $3,300 (550 * $6)
Dec. 31: Cash $254,200 Revenue $254,200
Operating expenses $171,000 Cash $171,000
Preferred Dividends $24,938 Dividends Payable $24,938 (7% of $356,250)
Common Stock Dividends $14,775 Dividends Payable $14,775 ($0.50 * 29,550)
Revenue $254,200 Retained Earnings $254,200
Retained Earnings $171,000 Operating expenses $171,000
Retained Earnings $39,713 Preferred Dividends $24,938 Common Stock Dividends $14,775
There are no shares of $3 par common stock. This transaction is not treated here.
Which type of company only spends money when absolutely necessary?
Gomez runs a small pottery firm. He hires one helper at $15,000 per year, pays annual rent of $6,500 for his shop, and spends $23,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $6,000 per year if alternatively invested. He has been offered $20,500 per year to work as a potter for a competitor. He estimates he could use his talents to earn an additional $5,000 per year in consulting fees if he were working full time as a potter. Total annual revenue from pottery sales is $82,000. Calculate the accounting profit and the economic profit for Gomez’s pottery firm.
Answer:
Gomez
The accounting profit = $40,500
The economic profit = $9,000
Explanation:
a) Data and Calculations:
Accounting Profit
Annual revenue $82,000
Expenses:
Wages $15,000
Rent 6,500
Materials 23,000 44,500
Net income $40,500
Economic Profit
Net income $40,500
Opportunity cost:
Return on investment $6,000
Salaries 20,500
Additional consulting fees 5,000
Total opportunity cost $31,500
Economic profit $9,000
b) What differentiates Gomez accounting profit and economic profit is that its accounting profit only records the financial inflows and outflows while its economic profit considers the opportunity cost of alternative investments.
commercial bank definition in your own words.
Answer:
The term commercial bank refers to a financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses.
What is the most money that an investor could lose if they buy 40 shares of electriccarco for $25/share
Answer:
$300
Explanation:
define debt economics.
Answer:
Debt, Something owed. Anyone having borrowed money or goods from another owes a debt and is under obligation to return the goods or repay the money, usually with interest. For governments, the need to borrow in order to finance a deficit budget has led to the development of various forms of national debt
The following information relates to Moran Co. for the year ended December 31, 2020: net income $1,245.7 million; unrealized holding loss of $10.9 million related to available-for-sale debt securities during the year; accumulated other comprehensive income of $57.2 million on December 31, 2019. Assuming no other changes in accumulated other comprehensive income. Determine (a) other comprehensive income for 2017, (b) comprehensive income for 2017, and (c) accumulated other comprehensive income at December 31, 2017.
Answer:
a. Other Comprehensive income for 2020 = Unrealized holding loss = -$10.9 million
b. Comprehensive income for 2020 = Net income - Unrealized holding loss = $1,245.7 million -$10.9 million = $1,234.8 million
c. Accumulated other comprehensive income at December 31, 2020 = Accumulated other comprehensive income - Other Comprehensive income for 2020 = $57.2 million - $10.9 million = $46.3 million
Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance sheet. (a) Advanced $10,000 to an employee. select an account title (b) Received a promissory note of $34,000 for services performed. select an account title (c) Sold merchandise on account for $60,000 to a customer. select an account title
Answer:
Indicating how each receivable is reported on the balance sheet:
(a) Advanced $10,000 to an employee = Other Receivable
(b) Received a promissory note of $34,000 for services performed = Notes Receivable
(c) Sold merchandise on account for $60,000 to a customer = Accounts Receivable
Explanation:
The advance to an employee is reported as Other Receivable, while the credit sale to a customer is reported as an Accounts Receivable. Finally, the promissory note received from a client for services rendered on credit is reported as Notes Receivable. This classification of receivables shows the true nature of the underlying transactions.
What is the role of the Federal Trade Commission?
Explanation:
The fredeal trade commission protests consumers by stopping unfair, deceptive and fraudulent practices in the marketplace. We conduct investigation, sue companies, develop rules to ensure a vibrant marketplace, and educated consumers and businesses about their rights and responsibilities.PLEASE HELPPP!! Human Resources class
A local grocery store buys USDA A grade pork at the wholesale price of $4 per pound and sells at the retail price of $7 per pound. The grocery store orders once per week. There is no chance to reorder during the week. The meat is good to be sold for one week. Unsold meat have to be dumped (Throw away to regular trash bin is not acceptable, it is hazardous material) at the cost of $0.5 per pound. The weekly demand is uncertain and has a discrete distribution:______.
Demand Probability 300 0.25 400 0.25 500 0.25 600 0.254
How many pounds of meat should be order per week? What is the expected weekly profit?
Answer:
$1,012.5
Explanation:
Cu = Retail price - Wholesale price = $7 - $4 = $3
Co = Wholesale price + Dumping cost = $4 + $0.5 = $4.5
Critical ratio = Cu/(Cu+Co) = 3/(3+4.5) = 0.4
Demand Probability Cumulative probability
300 0.25 0.25
400 0.25 0.50
500 0.25 0.75
600 0.25 1.00
Corresponding demand is 400. Optimal order quantity = 400 pounds
Expected demand = 300*0.25+400*0.25+500*0.25+600*0.25
Expected demand = 450 pounds
Expected shortage = (500-400)*0.25+(600-400)*0.25
Expected shortage = 75
Expected sales = Expected demand - Expected shortage
Expected sales = 450 - 75
Expected sales = 375 pounds
Expected inventory = Order quantity - Expected sales
Expected inventory = 400 - 375
Expected inventory = 25 pounds
Expected weekly profit = Expected sales * Cu - Expected inventory * Co
Expected weekly profit = 375*3 - 25*4.5
Expected weekly profit = $1,012.5
TeaForMe is a tea company that considered branching out into the snack food business. The TeaForMe team offered many new ideas such as flavored chips or paleo cookies. After much discussion, the team eliminated the chips and the cookies because they were inconsistent with the organization's new-product strategy, which was to develop new flavors of tea. In the new-product development process, the TeaForMe company is in the _______ stage.
Answer:
In the new-product development process, the TeaForMe company is in the idea screening stage
Explanation:
The new-product development process has 8 stages that are:
-Idea generation: is when the company looks for new ideas.
-Idea screening: the company evaluates the ideas and filters them to drop the bad ones and pick the good ones.
-Concept development and testing: is when the company develops and evaluates the product concept.
-Marketing strategy: the company creates the marketing strategy to introduce the product to the market.
-Business analysis: the company evaluates if the idea is a good business.
-Product development: is when the concept is developed into a physical product.
-Test marketing: the company evaluates the product and the marketing strategy in the market.
-Commercialisation: this refers to launching the product to the market.
According to this, the answer is that in the new-product development process, the TeaForMe company is in the idea screening stage because they generated a new idea an then, evaluated that idea and decided to drop it because it was inconsistent with the organization's new-product strategy.