Answer:
$126,900
$125,000
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
( $1,410,000 - $141,000) / 10 = $126900
Activity method based on activity = (miles that year / total miles expected to be driven) x (Cost of asset - Salvage value)
( $1,410,000 - $141,000) x ( 125,000 / 1,000,000) = 125,000
6. GAMA Corp. and FAMA Corp. have the same tax rate, sales, total assets, and basic earning power. Both companies have positive net incomes. GAMA Corp. has a higher debt to asset ratio and, therefore, a higher interest expense. Which of the following statements is CORRECT? a. GAMA Corp. has a lower times interest earned (TIE) ratio. b. GAMA Corp.has more net income. c. GAMA Corp.pays more in taxes. d. GAMA Corp. has a lower ROE.
Answer: GAMA Corp. has a lower times interest earned (TIE) ratio
Explanation:
The times interest earned (TIE) ratio simply means how the ability of a company to meet its debt obligations is being measured based on the current income that the company has.
Since GAMA Corp. has a higher debt to asset ratio and, therefore, a higher interest expense, it simply means that GAMA Corp. has a lower times interest earned (TIE) ratio when compared to FAMA Corp.
Therefore, the correct option is A.
On January 1, 2020, Grand Haven, Inc., reports net assets of $790,800 although equipment (with a four-year remaining life) having a book value of $452,000 is worth $520,000 and an unrecorded patent is valued at $54,900. Van Buren Corporation pays $730,960 on that date to acquire an 80 percent equity ownership in Grand Haven. If the patent has a remaining life of nine years, at what amount should the patent be reported on Van Buren's consolidated balance sheet at December 31, 2021
Answer:
The answer is "42700".
Explanation:
1 January 2020 Patent of Fair Value [tex]54900[/tex]
Less: 2020 and 2021 amortisation[tex]=54900\times \frac{2}{9} \ \ \ \ \ \ =12200[/tex]
December 31, 2021 Patent reported amount [tex]42700[/tex]
The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 3,200 shares held as treasury stock. What is the entry for the dividend declaration?
Answer:
See below
Explanation:
The journal entry is shown below;
Dividend payable $10,080
_________To Cash $10,080
(Being the payment of dividend paid)
The computation is shown below;
= (20,000 shares - 3,200 shares) × $0.6
= $10,080
Dividend payable was debited as it decreases liabilities and credited cash as it reduced the assets.
Alert Security Services Co. End-of-Period Spreadsheet For the Year Ended October 31, 2019 Adjusted Trial Balance Income Statement Balance Sheet Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 71 Accounts Receivable 519 Supplies 24 Prepaid Insurance 18 Land 590 Equipment 236 Accum. Depr.-Equipment 47 Accounts Payable 212 Wages Payable 24 Brenda Schultz, Capital 1,028 Brenda Schultz, Drawing 47 Fees Earned 578 Wages Expense 142 Rent Expense 71 Insurance Expense 59 Utilities Expense 41 Supplies Expense 35 Depreciation Expense 24 Miscellaneous Expense 12 1,889 1,889 Prepare the two closing entries for Alert Security Services Co. For a compound transaction, if an amount box does not require an entry, leave it blank.
Answer:
Alert Security Services Co.
Closing Journal Entries:
October 31, 2019:
Debit Fees Earned $578
Credit Income Summary $578
To close the revenue account to the income summary.
October 31, 2019:
Debit Income Summary $384
Credit:
Wages Expense $142
Rent Expense 71
Insurance Expense 59
Utilities Expense 41
Supplies Expense 35
Depreciation Expense 24
Miscellaneous Expense 12
To close the expenses to the income summary.
Explanation:
a) Data and Calculations:
Alert Security Services Co.
End-of-Period Spreadsheet For the Year Ended October 31, 2019
Adjusted Trial Balance Income Statement Balance Sheet
Account Title Dr. Cr. Dr. Cr. Dr. Cr.
Cash 71 71
Accounts Receivable 519 519
Supplies 24 24
Prepaid Insurance 18 18
Land 590 590
Equipment 236 236
Accum. Depr.-Equipment 47 47
Accounts Payable 212 212
Wages Payable 24 24
Brenda Schultz, Capital 1,028 1,028
Brenda Schultz, Drawing 47 47
Fees Earned 578 578
Wages Expense 142 142
Rent Expense 71 71
Insurance Expense 59 59
Utilities Expense 41 41
Supplies Expense 35 35
Depreciation Expense 24 24
Miscellaneous Expense 12 12
Total 1,889 1,889 384 578 1,505 1,311
James, Inc. provides the following data: 2025 2024 Cash $132,000 $121,000 Accounts Receivable, Net 75,000 52,000 Merchandise Inventory 49,000 43,000 Property, Plant, and Equipment, Net 122,000 99,000 For the year ending December 31, 2025: Net Sales Revenue $451,000 Cost of Goods Sold (315,000) Gross Profit $136,000 Calculate the number of days' sales in inventory for 2025. (Use 365 days for any calculations.) A. 56.77 days B. 53.28 days C. 51.41 days D. 123.31 days
Answer:
Option A is correct
Days' sales in inventory= 56.77 days
Explanation:
The days' sales in inventory is the average length if days for which product remain in stock until they are sold. The shorter the days the better.
Days' sales in inventory = (closing stock/cost of goods sold) × 365 days
Days' sales in inventory= 49,000/315,000× 365 days= 56.77 days
Days' sales in inventory= 56.77 days
Assume that the marginal tax rate is as follows: 10% for $0-$10,000; 15% for $10,000.01-$25,000; 20% for $25,000.01-$50,000; and 25% for $50,000.01 or more. Next, assume a business has an EBIT of $10,100 and an interest expense of $0. What would you expect the average tax rate on the ROA to be
Answer:
e, 10.15%
Explanation:
The computation of the average tax rate on the ROA is shown below
Given that the business has an EBIT of $10,100 and the interest expense is $0
So based on the given options, we can say that the expected average tax rate on the ROA is 10.15%
Therefore, the option e is correct
And, the same would be considered and relevant
The comparative balance sheets of Greenvale Games, Inc. show a net decrease in unexpired insurance of $400 and a net decrease in interest payable of $250. In order to reconcile net income with net cash flow from operating activities, net income should be:
Answer:
$150 increase
Explanation:
According to the scenario, computation of the given data are as follows,
Decrease in unexpired insurance = $400
Decrease in interest payable = $250
So, we can calculate the net income to reconcile by using following formula,
Net income = Decrease in unexpired insurance - Decrease in interest payable
= $400 - $250
= $150 ( Positive means increase)
So, net income should be increased by $150.
One of the main concerns about buyer-supplier partnerships is: Question 15 options: if cooperative relationships will get better results than competition. if the relationship will violate antitrust laws. if internal users will go along with the idea. if there will be any long-term benefits. if it is possible to partner with offshore suppliers
Answer:
if cooperative relationships will get better results than competition.
Explanation:
Supply chain management can be defined as the effective and efficient management of the flow of goods and services as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers.
Generally, supply chain management involves all the activities associated with planning, execution and supply of finished goods and services to the consumers. The fundamental principle of supply chain management is the complete collaboration between multiple firms. These multiple firms include a company that is saddled with the responsibility of manufacturing (producer), a supplier, a wholesaler and a retailer who typically sells the products to the customers or consumers (buyers).
Basically, these three (3) firms or individuals are required to collaborate with each other so as to meet the needs of the customers in a timely manner or fashion and at a fair price too.
A buyer-supplier partnership can be defined as any commercial transaction that arises between business firms for the purchase and supply of finished goods and services at a specific period of time.
One of the main concerns about buyer-supplier partnerships is, if cooperative relationships will get better results than competition.
This ultimately implies that, a buyer-supplier partnership is focused on exploring the option of cooperative relationship between multiple businesses so as to facilitate or improve the availability of finished goods and services for the end users (buyers). This relationship is opposed to having businesses compete against each other in the market.
a. Calculate the expected return for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the covariance between the returns of the two stocks
Answer:
Note: Question is incomplete but full question is attached as picture below
a) Expected return = Probability of recession*Return during recession + Probability of normal*Return during normal + Probability of boom*Return during boom
Expected return for stock A = 0.21*0.04 +0.61*0.12 + 0.18*0.30
Expected return for stock A = 0.1356
Expected return for stock A = 13.56%
Expected return for stock B = 0.21*-0.41 + 0.61*0.31 + 0.18*0.54
Expected return for stock B = 0.2002
Expected return for stock B = 20.02%
b) Standard deviation of stock = √{Probability(Recession)*(Rate during recession - expected rate )^2 + Probability(Normal)(Rate during normal - expected return)^2 + Probability(Boom)*(Rate in boom - Expected return)^2}
Standard deviation of stock A = √[(0.21*(0.04-0.1356)^2 + 0.61*(0.12 - 0.1356)^2 + 0.18*(0.30-0.1356)^2)^0.5]
Standard deviation of stock A = 0.0832
Standard deviation of stock A = 8.32
Standard deviation of stock B = √(0.21*(-0.41-0.2002)^2 + 0.61*(0.31 - 0.2002)^2 + 0.18*(0.54-0.2002)^2)^0.5]
Standard deviation of stock B = 0.3260
Standard deviation of stock B = 32.60%
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.25 coming 3 years from today. The dividend should grow rapidly - at a rate of 22% per year - during Years 4 and 5; but after Year 5, growth should be a constant 6% per year.
Required:
What is the value of the stock today?
Answer:
$52.75
Explanation:
the discount rate for this question was not provided. the discount rate used is 10%
Value of the stock in year 1 and 2 = 0
value of the stock in year 3 = $1.25
value of the stock in year 4 = ($1.25 x 1.22) / 1.10^4 = $1.04
value of the stock in year 5 = ($1.25 x 1.22^2) / 1.10^5 = $1.16
value of the stock in perpetuality = ($1.25 x 1.22^2 x 1.06) / (0.1 - 0.06) = $49.30
Value of the stock today = $49.30 + $1.16 + $1.04 + $1.25 = $52.75
There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,265 and is expected to generate the following cash flows: First Year Second Year Third Year Total Alpha Project $32,000 $22,500 $4,500 $59,000 Beta Project 8,000 23,000 27,627 58,627 A. Calculate the internal rate of return on both projects. Use the IRR spreadsheet function to calculate internal rate of return. Alpha Project fill in the blank 1 68.275 % Beta Project fill in the blank 2 % B. Make a recommendation on which one to accept.
Answer:
Alpha = 42%
25%
I would accept the alpha project because it has the higher IRR
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Alpha
Cash flow in year 0 = $-35,265
Cash flow in year 1 = $32,000
Cash flow in year 2 = $22,500
Cash flow in year 3 = $4,500
IRR = 42%
Beta
Cash flow in year 0 = $-35,265
Cash flow in year 1 =8,000
Cash flow in year 2 =23,000
Cash flow in year 3 =27,627
IRR = 25%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
The 2745 people residing in the state of Oz want their yellow brick road repaved. It could be repaved with standard asphalt for a cost of $427957 or with shimmering gold asphalt for $5752665 . The senator that represents Oz in the national legislature argues that the yellow brick road is a national treasure and a tourist attraction. As such, the senator argues that the nation of 4801565 people should pay for the repaving. Round your answer to two decimals for all of the following questions.
Required:
a. What is the cost per person if the national government pays for gold asphalt?
b. What is the cost per person if the state of Oz pays for gold asphalt?
c. What is the cost per person if the state of Oz pays for standard asphalt?
Answer:
a. Cost per person = $1.20 per person
b. Cost per person = $2,095.69 per person
c. Cost per person = $155.90 per person
Explanation:
a. What is the cost per person if the national government pays for gold asphalt?
This can be calculated as follows:
Cost per person = Cost of gold asphalt / Total population of the nation = $5752665 / 4801565 = $1.20 per person
b. What is the cost per person if the state of Oz pays for gold asphalt?
This can be calculated as follows:
Cost per person = Cost of gold asphalt / Total population of the state of Oz = $5752665 / 2745 = $2,095.69 per person
c. What is the cost per person if the state of Oz pays for standard asphalt?
This can be calculated as follows:
Cost per person = Cost of standard asphalt / Total population of the state of Oz = $427957 / 2745 = $155.90 per person
Assume that you are an intern with the Brayton Company, and you have collected the following data: The yield on the company's outstanding bonds is 7.75%; its tax rate is 40%; the next expected dividend is $0.65 a share; the dividend is expected to grow at a constant rate of 6.00% a year; the price of the stock is $15.00 per share; the flotation cost for selling new shares is 10%, and the target capital structure is 45% debt and 55% common equity. What is the firm's WACC, assuming?
Answer:
The firm's WACC will be "8.04%".
Explanation:
The given values are:
Yield of maturity,
= 7.75%
Rate of tax,
= 40%
Next year's dividend,
= $o.65
Growth,
= 6%
Share price,
= $15
Flotation cost,
= 10%
[tex]w_d=45 \ percent[/tex]
[tex]w_s=55 \ percent[/tex]
Now,
= [tex]r_d(1-Rate \ of \ tax)[/tex]
On substituting the values, we get
= [tex]7.75(1-0.40)[/tex]
= [tex]4.65 \ percent[/tex]
The [tex]r_e[/tex] will be:
= [tex]\frac{D1}{p}\times (1-F)+G[/tex]
= [tex]\frac{0.65}{15}\times (1-0.1)+6[/tex]
= [tex]4.81+6[/tex]
= [tex]10.81 \ percent[/tex]
hence,
The firm's WACC will be:
= [tex]w_d(r_d)(1-T)+w_s(r_s)[/tex]
= [tex]0.45\times 4.65+0.55\times 10.81[/tex]
= [tex]2.0925+5.9455[/tex]
= [tex]8.04[/tex]%
The shareholders' equity of Green Corporation includes $200,000 of $1 par common stock and $400,000 of 6% cumulative preferred stock. The board of directors of Green declared cash dividends of $60,000 in 2011 after paying $20,000 cash dividends in each of 2010 and 2009. What is the amount of dividends common shareholders will receive in 2011?
a. 28000
b. 30000
c. 50000
d. 25000
Answer:
Option a (28000) is the right option.
Explanation:
Given:
Preferred stock,
= $400,000
In year 2009 and 2010, the dividends paid,
= $20,000 each year
Dividends declared,
= $60,000
Now,
The preferred dividend per year will be:
= [tex]Preferred \ stock\times 6 \ percent[/tex]
= [tex]400000\times 6 \ percent[/tex]
= [tex]24,000[/tex] ($)
Arrears in preferred dividend per year will be:
= [tex]24000-20000[/tex]
= [tex]4000[/tex] ($)
For preferred stock, the total dividends arrears will be,
= [tex]4000\times 2[/tex]
= [tex]8000[/tex] ($)
hence,
The dividends which are received by the common stock holders will be:
= [tex]Dividends \ declared-Preferred \ dividend-Arrears \ in \ preferred \ dividend[/tex]
By putting the values, we get
= [tex]60000-24000-8000[/tex]
= [tex]28000[/tex]
JKL has 3 million shares of common stock outstanding and 80,000 bonds outstanding. The bonds pay semi-annual coupons at an annual rate of 9.05%, have 6 years to maturity and a face value of $1,000 each. The common stock currently sells for $30 a share and has a beta of 1. The bonds sell for 94% of face value and have a 10.42% yield to maturity. The market risk premium is 5.5%, T-bills are yielding 5% and the tax rate is 30%. What is the firm's capital structure weight for equity
Answer:
54.48%
Explanation:
The computation of the weight of equity is given below;
But before that we need to do the following calculations
Total Equity
= 3 million shares × $30
= $90 million
The Value of Debt,
Total Debt = 80,000 (1,000)(0.94)
= $75.2 million
Now the weight of equity is
= $90 million ÷ ($90 million + $75.2 million)
= 54.48%
On Point, Inc., is interested in producing and selling a deluxe electric pencil sharpener. Market research indicates that customers are willing to pay $40 for such a sharpener and that 20,000 units could be sold each year at this price. The cost to produce the sharpener is currently estimated to be $34. a. If On Point requires a 20 percent return on sales to undertake production of a product, what is the target cost for the new pencil sharpener
Answer: $32
Explanation:
The target cost would be such that 20% of the $40 that people are willing to pay would be profit.
The target profit is therefore:
= 20% * 40
= $8
Target cost is therefore:
= Amount customers would pay - Target profit
= 40 - 8
= $32
Answer:
The answer is $32 for sure :)
Consider the two countries of Swala and Atlantis. Swala is a major producer of wheat and rice while Atlantis specializes in the production of marble and automobile parts. Engaging in free trade benefits both countries since Swala is an agrarian nation and Atlantis lacks arable land. This follows the theory of comparative advantage, and we can say that engaging in free trade benefits all countries that participate in it; however, this conclusion is based on which inaccurate assumptions?
a. We have assumed a simple world in which there are only two countries.
b. We have assumed the prices of resources and exchange rates in the two countries are dynamic.
c. We have assumed there are barriers to the movement of resources from the production of one good to another within the same country.
d. We have assumed that agrarian nations do not specialize in producing fertilizers.
e. We have assumed diminishing returns to specialization.
In X1, Adam and Jason formed ABC, LLC, a car dealership in Kansas City. In X2, Adam and Jason realized they needed an advertising expert to assist in their business. Thus, the two members offered Cory, a marketing expert, a one-third capital interest in their partnership for contributing his expert services. Cory agreed to this arrangement and received his capital interest in X2. If the value of the LLC's capital equals $180,000 when Cory receives his one-third capital interest, which of the following tax consequences does not occur in X2?A. Cory reports $60,000 of ordinary income in X2.B. Adam, Jason, and Cory receive an ordinary deduction of $20,000 in X2.C. Adam and Jason receive an ordinary deduction of $30,000 in X2.D. Cory reports $60,000 of ordinary income in X2, and Adam and Jason receive an ordinary deduction of $30,000 in X2.
Answer: B. Adam, Jason, and Cory receive an ordinary deduction of $20,000 in X2.
Explanation:
Based on the information given, since the value of the LLC's capital equals $180,000 after Cory receives his one-third capital interest, Cory will report (⅓ × $180000) = $60,000 of ordinary income in X2.
Also, Adam and Jason will receive an ordinary deduction of $30,000 in X2. The sentence that "Adam, Jason, and Cory receive an ordinary deduction of $20,000 in X2" is wrong. They do not get sane amount as Cory gets a higher amount.
Suppose that you are in charge of hiring a new employee for your firm. You have to decide between two persons. One is a person with many years of experience in a company very similar to yours who has only a high school education. The other person is a recent university graduate with a degree in a field closely related to your company's business. Which person would you choose? Discuss.
Answer:
The one with many years ofexperience
Explanation:
1 experience
2 knows the job
3 proven to be dependable hence the many years of experience
Chapter 13: Statement of Cash Flows Amount OA, IA, or FA (for extra credit only) Accounts payable increase $ 9,000 Accounts receivable increase 4,000 Salaries payable decrease 3,000 Amortization expense 6,000 Cash balance, January 1 22,000 Cash balance, December 31 15,000 Cash paid as dividends 29,000 Cash paid to purchase land 90,000 Cash paid to retire bonds payable at par 60,000 Cash received from issuance of common stock 35,000 Cash received from sale of equipment 17,000 Depreciation expense 29,000 Gain on sale of equipment 4,000 Inventory decrease 13,000 Net income 76,000 Prepaid expenses increase 2,000 Using the information above, calculate the cash flow from operating activities using the indirect method.
Answer:
Net Cash flow from operating activities $120,000.00
Explanation:
The computation of the cash flows from operating activities is shown below:
Cash flow from operating activities
Income $76,000.00
Less: Gain on sale of equipment (4,000.00)
Add: Depreciation expense 29,000.00
Add: Amortisation expense 6,000.00
Adjustments:
Add: Account payable increase 9,000.00
Less: Account receivable increase (4,000.00)
Less: Salaries payable decrease (3,000.00)
Add: Inventory decrease 13,000.00
Less: Prepaid expese increase (2,000.00)
Net Cash flow from operating activities $120,000.00
Suppose that the Federal Reserve is conducting an expansionary monetary policy. It will _____ Treasury bills on the open market, so that the money supply will _____, interest rates will _____, planned investment spending will _____, and the AD curve will shift to the _____. sell; increase; rise; rise; left buy; increase; fall; rise; right sell; decrease; rise; fall; left buy; decrease; fall; fall; left
Answer:
buy; increase; fall; rise; right.
Explanation:
Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.
An inflationary gap, also known as the expansionary gap in economics is used to measure the difference between the gross domestic product (GDP) and the current level of real Gross Domestic Products that exists when a country's economy is guaged at a full employment rate. This eventually causes the price of goods and services to go up with a low income level.
Basically, an expansionary fiscal policy will cause the total increase in aggregate demand to be greater than the initial increase in aggregate demand due to the multiplier process.
Hence, the Fed will buy Treasury bills on the open market, so that the money supply will increase, interest rates will fall, planned investment spending will rise, and the aggregate demand (AD) curve will shift to the right.
Aggregate demand (AD) can be defined as the total quantity of output (final goods and services) that is demanded by consumers at all possible price levels in an economy at a particular time.
An aggregate demand curve gives a negative relationship between the aggregate price level for goods or services and the quantity of aggregate output demanded in an economy at a specific period of time.
Midwest Corporation has provided the following data concerning manufacturing overhead for 2020: Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,360 and 4,200, respectively. The actual manufacturing overhead was $72,200. What is the predetermined manufacturing overhead rate per direct labor hour for the year
Answer:
$16.00
Explanation:
Predetermined manufacturing overhead rate = Budgeted Overheads ÷ Budgeted Activity
therefore,
Predetermined manufacturing overhead rate = $32,320 ÷ 2,020
= $16.00
Applied overheads = Predetermined manufacturing overhead rate x Actual activity
therefore,
Applied overheads = $16.00 x 2,410 = $38,560
Conclusion :
Under-applied overheads = $72,200 - $38,560
= $33,640
the predetermined manufacturing overhead rate per direct labor hour for the year is $16.00
what are good ways to start earning money
Answer:
Explanation:
Sell your gently used clothes. ...
Trade in old phones, electronics for cash. ...
Drive for Uber, Lyft. ...
Make deliveries for Amazon, Uber Eats. ...
Become a dog walker or dog sitter. ...
Get a babysitting gig. ...
Find work as a housesitter. ...
Sell unused gift cards.
The equation describes the value of an investment after years. For the investment, give the initial value, the continuous growth rate, the annual growth factor, and the annual growth rate. Round your answer for the annual growth factor to four decimal places, and your answer for the annual growth rate to two decimal places. The initial value is 1100 . The continuous growth rate is . The annual growth factor is . The annual growth rate is .
Answer:
The continuous growth rate is 4.2%.
The annual growth factor is 0.04289.
The annual growth rate is given as 4.23%.
Explanation:
As the complete question is not given, the complete question is found online and the solution is then implemented. The complete question is attached.
The equation is given as
[tex]V=1100e^{0.042t}[/tex]
The continuous growth rate is given as by comparing it with the value of [tex]V=V_oe^{kt}[/tex]
Here K is the continuous growth rate thus K is 0.042. or 4.2%.
The continuous growth rate is 4.2%.
The annual growth factor is given as
[tex]V_o(1+r)^t=V_oe^{0.042t}\\(1+r)^t=(e^{0.042})^t\\1+r=e^{0.042}\\1+r=1.04289\\r=1.04289-1\\r=0.04289[/tex]
The annual growth factor is 0.04289.
The annual growth rate is given as 4.23%.
A worker who loses a job at a call center because business firms switch the call center to another country is an example of which type of unemployment?
Answer:
"Structural unemployment" is the right approach.
Explanation:
The terminology economists mischaracterize unemployment, which seems to be the consequences of such an absence or failure of coordination of talents as well as of opportunities, is defined as Structural unemployment.This would be caused by economic shifts that prevent jobless persons from finding opportunities throughout different firms with very high qualifications.On January 2, 20X5, Patriot purchased 80 percent of Jags Inc.'s outstanding common shares for $800,000. Jag reported net income of $310,000 for 20X5, and paid dividends of $100,000. What are all the cost method adjustments?
Answer:
Patriot Company
The cost method adjustments are:
Debit Cash $80,000
Credit Dividends Revenue $80,000
To record the dividends received from Jags Inc.
Explanation:
a) Data and Calculations:
Investment in Jags Inc. = 80%
Jag's outstanding common shares = $800,000
Net income for 20X5 = $310,000
Dividends paid = $100,000
Cost of investment in Jags = $640,000
Cost method adjustments:
Cash $80,000 Dividends Revenue $80,000 ($100,000 * 80%)
b) With the 80% shareholding in Jags Inc., the investment is supposed to be accounted for using the equity method and not the cost method, and the accounts of the two companies should be consolidated. However, using the cost method leaves the investment at cost (or purchase price) in the balance sheet, while adjustments are made for dividends revenue.
Sergey bought two shares of a stock at $22 each in early January 2018. At the end of a year he earned $2 dividend on each one. By year-end 2018 the price had risen to $22.50. In early January (after the holidays) he bought another share at that price. At year-end 2019 the price was $22.80 and the dividend of $2 a share was again paid out. What was the dollar weighted return on his investment?
Answer: 10.79%
Explanation:
Based on the information given, the return in year 1 will be:
= (22.5 + 2)/21 - 1
= 1.1136 - 1
= 0.1136
= 11.36%
The return in year 2 will be:
= (22.8 + 2)/22.5 - 1
= 1.1022 - 1
= 0.1022
= 10.22%
Therefore weighted return will be:
= (11.36% + 10.22%)/2
= 21.58%/2
= 10.79%
Magic Corporation manufactures water toys. It plans to grow by producing high-quality water toys that are delivered in a timely manner. There are a number of other manufacturers who produce similar water toys. Magic believes that continuously improving its manufacturing processes and re-engineering processes to downsize and eliminate excess capacity are critical to implementing its strategy. Which of the following best describes Magic's strategy?
A) product differentiation
B) product leadership
C) cost differentiation
D) cost leadership
Answer: D. Cost leadership
Explanation:
Magic's strategy in this case is cost leadership. Cost leadership is when a company produces ita product by using the lowest production cost and therefore has a competitive edge towards its rivals.
In a cost leadership strategy, the cost is reduced and the company therefore makes the least expensive goods in the industry and thus gain marhet share.
Identify ways you could establish credit
Answer:
The answer is below
Explanation:
Getting or establishing credit is simply a way of having a credit history. Hence to establish credit, there are ways to go about it, some of which are:
1. Get a co-signer or co-applicant
2. Ensure you have a secured credit card
3. Apply for a credit-builder loan or a secured loan
4. Get savings and checking accounts with banks.
5. Have good credits habits and be consistent
6. Assess your credit scores and reports.
The steady growth line best supports which conclusion about the economy
represented in the graph?
A.The economy as a whole continues to grow between each
business cycle.
O B. The economy is weak and will likely enter a depression in the next
business cycle.
C. The economy has more pronounced peaks than valleys in each
business cycle.
D. The economy does not show a consistent pattern in its business
cycles.
Answer:
A.The economy as a whole continues to grow between each business cycle.
Explanation:
The steady growth line best supports the conclusion about the economy
represented in the graph is that "The economy as a whole continues to grow between each business cycle."
The above statement is true because the production output of the firm continues to rise with time. As time goes on in the business cycle of the firm, the firm continues to grow, which is evident in the increase in the level of production.