Answer:
Beginning projected benefit obligation = $90,000
Explanation:
Beginning projected benefit obligation = Interest cost / Discount rate
=$7,200 / 8%
=$7,200 / 0.08
=$90,000
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations.
June 12, 2021 Provide services to customers on account for $41,000.
September 17, 2021 Receive $25,000 from customers on account.
December 31, 2021 Estimate that 458 of accounts receivable at the end of the year will not be received.
March 4, 2022 Provide services to customers on account for $56,000.
May 20, 2022 Receive $10,000 from customers for services provided in 2021.
July 2, 2022 Write of the remaining amounts owed from services provided in 2021.
October 19, 2022 Receive $ 45,000 from customers for services provided in 2022.
December 31, 2022 Estimate that 45% of accounts receivable at the end of the year will not be received.
Record transactions for each date. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Provide services to customers on account for $35,000.
Answer:
Journal Entries are given below
Explanation:
June 12, 2021
Provide services to customers on account of $41,000.
DEBIT CREDIT
Receivable account $41,000
Services Revenue $41,000
September 17, 2021
Receive $25,000 from customers on account.
DEBIT CREDIT
Cash $25,000
Receivable $25,000
December 31, 2021
Estimate that 45% of accounts receivable at the end of the year will not be received.
DEBIT CREDIT
Bad debt($16,000x45%) $7,200
Allowance for doubtful debt $7,200
March 4, 2022
Provide services to customers on account for $56,000
DEBIT CREDIT
Receivable account $56,000
Services Revenue $56,000
May 20, 2022
Receive $10,000 from customers for services provided in 2021.
DEBIT CREDIT
Cash $10,000
Receivable $10,000
July 2, 2022
Write of the remaining amounts owed from services provided in 2021.
Working: $41,000 - $25,000 - $10,000 = $6,000
DEBIT CREDIT
Allowance for doubtful debt $6,000
Account Receivable $6,000
October 19, 2022
Receive $ 45,000 from customers for services provided in 2022.
DEBIT CREDIT
Cash $45,000
Receivable $45,000
December 31, 2022
Estimate that 45% of accounts receivable at the end of the year will not be received.
DEBIT CREDIT
Bad debt (w) $3,750
Allowance for bad debt $3,750
Working:
($56,000 - $45,000) x45% = $4,950
Balance in Allowance account at 31 dec 2021 = 7,200
Bad debt written off = 6,000
Remaining balance = 1,200
Allowance for doubtful debt at 31 dec 2022 = $4,950 - $1,200
Allowance for doubtful debt at 31 dec 2022 = $3,750
If the dividend yield for year one is expected to be 5% based on the current price of $50, what will year three dividend (DIV3) be if dividends grow at a constant 4%
Answer:
Div₃ = $2.81
Explanation:
dividend yield = current dividend / current stock price
0.05 = current dividend / $50
current dividend = $50 x 0.5 = $2.50
Div₀ = $.250
Div₁ = $2.50 x 1.04 = $2.60
Div₂ = $2.60 x 1.04 = $2.704 = $2.70
Div₃ = $2.704 x 1.04 = $2.81
A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $185,000. The current period's entry to record the warranty expense is:
The journal entry for recording the warranty expense is
Dr Warranty Expense 7,400
Cr Estimated Warranty Liability 7,400
Journal entry:Dr Warranty Expense 7,400 (185,000 x 0.04)
Cr Estimated Warranty Liability 7,400
(being warranty expense is recorded)
here expense is debited as it increased the expense and liability should be credited as it also increased the liability.
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The entry for the warranty expense would be recorded in the form of the Journal entry by debiting the Warranty Expense and crediting the Estimated Warranty Liability with the amount of $7,400.
What is the Journal entry?Journal entry is defined as the primary books of accounting, it records the financial transactions of the firm as a form of recording the transaction by applying the golden rules of accounting.
This process of recording involves of transactions by giving the debit as well as credit effect of the transaction in such a manner that the transactions are recorded properly.
The Journal entry of the given case is:
Warranty Expense a/c Dr. $7,400
To Estimated Warranty Liability a/c $7,400
(being warranty expense is recorded)
The amount is calculated as:
185,000 × 0.04 = $7,400
Therefore, both the accounts are recorded with the $7,400.
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Peter has opened a retirement investment account and plan to contribute $6,000 at the end of each year to his account for 30 years. He wants to retire when he has $1 million in the account. What expected annual rate of return must earn to have $1 million in his account?
Answer:
1.92
Explanation:
Using the compound interest formula
A= P [ (1-i)^n-1 (where A= 1,000,000, P= 6000, i= ?, n= 30)
1000000 = 6000 [ (1 - i)^30-1
1000000 = 6000 [ (1 - i)^29
1000000 = (6000 - 6000i)^29
1000000/6000 = (6000/6000 -6000i/6000)^29
= 166.66 = i^29
= 29✓166.66 = ✓i^29
= 1.92 = i
Using your knowledge of SMART goals, select the best goal.
A. Our division will make money this year.
B. Our division will become profitable soon.
C. Our division will be successful by the end of 2013.
D. Our division will increase profits by 10% by the end of 2013.
The following table contains the steps used in creating a workable plan. Identify the order in which the steps are usually taken.
Planning Step Order
Develop commitment to goals
Track progress toward goal achievement
Develop an effective action plan
Set goals Maintain flexibility
Which of the following methods can be used to track goal progress?
A. Setting proximal and distal goals.
B. Maintaining slack resources.
C. Using options-based planning.
D. Providing performance feedback.
Answer:
SMART Goals
1. Best Goal:
D. Our division will increase profits by 10% by the end of 2013.
2. Planning Step Order:
Set goals
Develop an effective action plan
Develop commitment to goals
Track progress toward goal achievement
Maintain flexibility
3. Method for tracking goal progress:
D. Providing performance feedback.
Explanation:
A goal is described as SMART when it is specific, measurable, attainable, relevant, and time-based. A goal to achieve a 10% increase in profits by the end of 2013 meets these five criteria.
In developing goals, it is imperative to follow known steps so that success can be attained with all the business efforts.
The best goal is our division will increase profits by 10% by the end of 2013. The correct order: Develop an effective action plan, commitment to goals, track progress toward goal achievement, and maintain flexibility. Providing performance feedback can be used to track goal progress, hence options D and D are correct.
When a goal is SMART, it is specific, measurable, attainable, relevant, and time-bound. These five requirements are met by setting a goal of increasing profits by 10% by the end of 2013.
It is critical to follow defined stages while setting goals in order to achieve success with any business activities.
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The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a year. The companies that employ normal designers each collect $500,000 in revenue a year, which is just enough to ensure that each earns exactly a normal profit. The 200th company, however, employs Janus Jacobs, an unusually talented designer. Because of Jacobs's talent, this company collects $1,000,000 in revenue a year.
Required:
a. How much will Jacobs earn?
b. What proportion of his annual salary will be economic rent?
c. Will the advertising company for which Jacobs works be able to earn an economic profit?
Answer:
a. Jacob should earn= $100,000 + ($1,000,000 - $500,000)
= $100,000 + $500,000
=$600,000
Hence, Jacob earns $600,000
b. The economic rent is the amount by which payment of Jacob(600,000) exceed the reservation price of the supplier(100,000)
Thus, the economic rent = 600,000 - 100,000 = $500,000
Proportion of Economic rent = Economy rent / Salary of jacob
= $500,000 / $600,000
= 5/6
Hence, the proportion of the economic rent of Jacob is salary is 5/6
c. The advertising company will not be able to make an economic profit because if they withhold some additional revenue made because of hiring Jacob, then he will switch to another advertising company at a higher salary and that company keep on making profit. The company should bid for Jacob until firm are indifferent on paying $600,000 or hiring someone else for $100,000 . Thus, the bidding of Jacob will continue until the salary of Jacob has bid up to a level where no company can make economic profits
Bustillo Incorporated is working on its cash budget for March. The budgeted beginning cash balance is $35,000. Budgeted cash receipts total $142,000 and budgeted cash disbursements total $151,000. The desired ending cash balance is $30,000. To attain its desired ending cash balance for March, the company needs to borrow:
Answer:
$4,000
Explanation:
Bustillo Incorporated
Cash Budget
For the month of March, 202x
Beginning cash balance $35,000
Total cash collections $142,000
Total cash disbursements ($151,000)
Ending cash before financing $26,000
Desired minimum cash balance ($30,000)
Financing needs ($4,000)
ack Hammer invests in a stock that will pay dividends of $3.06 at the end of the first year; $3.42 at the end of the second year; and $3.78 at the end of the third year. Also, he believes that at the end of the third year he will be able to sell the stock for $56. What is the present value of all future benefits if a discount rate of 13 percent is applied
Answer:
$46.82
Explanation:
Present value is the sum of discounted cash flows
present value can be calculated using a financial calculator
Cash flow in year 1 = $3.06
Cash flow in year 2 = $3.42
Cash flow in year 3 = $3.78 + $56 = $59.78
I = 13%
Present value = $46.82
To find the PV 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 NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
The Pennington Corporation issued a new series of bonds on January 1, 1985. The bonds were sold at par ($1,000); had a 12% coupon; and mature in 30 years, on December 31, 2014. Coupon payments are made semiannually (on June 30 and December 31). a. What was the YTM on January 1, 1985?
Answer:
The YTM on January 1, 1985 was 6.00%.
Explanation:
The YTM is the interest rate used to determine the Present Value of Coupons and Principle and can be found as follows :
PV = $1,000
Pmt = ($1,000 × 12 %) / 2 = - $60
P/yr = 1
n = 30 × 2 = 60
Fv = - $1,000
YTM = ?
Using a Financial Calculator, the YTM is 6.00%
Therefore, the YTM on January 1, 1985 was 6.00%.
Carla Vista Company has the following information available for September 2020.
Unit selling price of video game consoles $410
Unit variable costs $328
Total fixed costs $36,900
Units sold 600
1. Compute the unit contribution margin.
2. Prepare a CVP income statement that shows both total and per unit amounts.
3. Compute Carla Vista’ break-even point in units.
4. Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Unit selling price of video game consoles $410
Unit variable costs $328
Total fixed costs $36,900
Units sold 600
First, we need to determine the unitary contribution margin:
Unitary contribution margin= 410 - 328= $82
Contribution margin income statement:
Sales= 600*410= 246,000
Total variable cost= 600*328= (196,800)
Total contribution margin= 49,200
Fixed costs= (36,900)
Net operating income= $12,300
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 39,200/82
Break-even point in units= 478 units
Finally, the income statement for the break-even point:
Sales= 478*410= 195,980
Total variable cost= 478*328= (156,784)
Total contribution margin= 39,196
Total fixed costs= (39,200)
Net operating income= (4)
On April 30, 2018, Quality Appliances purchased equipment for $280,000. The estimated service life of the equipment is six years and the estimated residual value is $19,000. Quality's fiscal year ends on December 31.
Required:
Calculate depreciation for 2013 and 2014 using each of the three methods listed. Quality calculates partial year depreciation based on the number of months the asset is in service.
2013 2014
1. Straight-Line
2. Sum-of-the-years'digits
3. Double-declining balance
Answer:
The answer is b
Explanation:
hope this helped
1. Certain balance sheet accounts in a foreign subsidiary of Shaw Company on December 31, 20X1, have been restated in U.S. dollars as follows: Restated at Current Rates Historical Rates Accounts Receivable, Current $ 100,000 $ 110,000 Accounts Receivable, Long-Term 50,000 55,000 Prepaid Insurance 25,000 30,000 Patents 40,000 45,000 Total $ 215,000 $ 240,000 What total should be included in Shaw's balance sheet for December 31, 20X1, for these items?
Answer:
The total that should be included in Shaw's balance sheet for December 31, 20X1 is $215,000
Explanation:
The amount that should be included in Shaw's balance sheet for December 20X1 would be
Particulars Stated at Current Rates
Accounts Receivable, Current $100,000
Accounts Receivable, Long-Term $50,000
Prepaid Insurance $25,000
Patents $40,000
Total $215,000
Marco was an economics major in college until he discovered he could major in strength and conditioning. Then he switched majors. Clearly, learning about this field is important to him. Mike and Bob are addressing
n the video, Marco says he was an economics major in college until he discovered he could major in strength and conditioning. Then he switched majors. Clearly, learning about this field is important to him. Mike and Bob are addressing ............... when they send Marco to seminars instead of, for example, increasing his salary in exchange for his continued high performance at MBSC. They could maintain Marco’s high level of motivation by:........................
A. Sending him on an all-expense-paid Caribbean cruise for two weeks
B. Reimbursing his tuition as he seeks a master’s degree in fitness management
C. Reassuring him that he has a job with MBSC as long as he performs well
D. Setting up an employee discount program at a nearby coffee shop, laundromat, and tasalon
Answer:
Valence
C. Reassuring him that he has a job with MBSC as long as he performs well
Explanation:
By sending Marco to seminars, Mike and Bob are addressing VALENCE; a psychological value an individual put on another person, in relation to the attractiveness of individual whose a psychological value has been placed. In this case, a psychological value placed on Macro by his managers is the valuable rewards they would get from his professional development, rather than increasing his salary in exchange for high performance.
Therefore, they could maintain Marco’s high level of motivation by reassuring him that he has a job with MBSC as long as he performs well.
Write a two- to three-paragraph response discussing whether you think the patent system is useful and beneficial. Why do you think the patent system is or is not working
Answer:
The answer is below
Explanation:
Patent is a term that describes a governmental grant or legal right to inventors of an intellectual property, to refrain or stop others from making, using, selling or importing their invention to and from other country.
Patent system is useful and beneficial because of the following reasons:
1. It allows an inventor the right to stop others from copying, manufacturing, selling or importing individual's invention without the person's permission. This will surely encourage invention from other people, which will lead to more technological advancement in the country.
2. It gives an inventor protection for a pre-determined period. This helps to refrain competitors from competing with the inventor, and in turn, leads to profit maximization for the inventor.
3. It also allows the inventor to license patent for others to use it or can sell. This can be considered as a great source of revenue for inventor's business, by collecting royalties from a patent they have licensed, often in a combination with a registered design and trade mark.
The decision to accept an additional volume of business should be based on a comparison of the revenue from the additional business with the sunk costs of producing that revenue.
a) true
b) false
Answer:
false
Explanation:
Sunk cost is cost that has already been incurred and cannot be recovered. it should not be considered when making future decisions
Assume a nominal interest rate on one-year US Treasury Bills of 4.60% and a real rate of interest of 2.50%. Using the Fisher Effect Equation, what is the approximate expected rate of inflation in the US over the next year
Answer:
2.0488%
Explanation:
Fisher Effect Equation = ( 1 + nominal rate ) = ( 1 + inflation rate ) x (1 + real rate)
= ( 1 + 0.046) = ( 1 + inflation rate ) x (1 + 0.025)
( 1 + inflation rate ) = ( 1 + 0.046) / (1 + 0.025)
( 1 + inflation rate ) = 1.020488
Inflation rate = 1.020488 - 1 = 0.020488 = 2.0488%
Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Amazon Kindle for $350. The minimum payment on the card is only $10 per month
a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card. Round to the nearest month.
b. If Simon makes monthly payment of $30, how many months will it be before he pays off the card. Round to the nearest month.
c. How much more in total payments will Simon make under the $10-a-month plan than under the $30-a-month plan? Make sure you use three decimal places for N.
Answer:
A.50 months
B.12.92 months
C.$112.38
Explanation:
a). Using this formula
PV of Annuity = Monthly Payment * [{1 - (1 + r)-n} / r]
Where,
PV of Annuity =$350
Monthly Payment =$10
r=(0.18/12)
Let plug in the formula
$350 = $10 * [{1 - (1 + 0.18/12)-n} / (0.18/12)]
$350 / $10 = {1 - (1.015)-n} / 0.015
35 * 0.015 = 1 - (1.015)-n
(1.015)-n = 1 - 0.525
-n[log(1.015)] = log(0.475)
-n[0.0149] = -0.7444
n = -0.7444 / -0.0149
n= 50 months
b). Using this formula
PV of Annuity = Monthly Payment * [{1 - (1 + r)-n} / r]
Where,
PV of Annuity =$350
Monthly Payment =$30
r=(0.18/12)
Let plug in the formula
$350 = $30 * [{1 - (1 + 0.18/12)-n} / (0.18/12)]
$350 / $30 = {1 - (1.015)-n} / 0.015
11.67 * 0.015 = 1 - (1.015)-n
(1.015)-n = 1 - 0.175
-n[log(1.015)] = log(0.825)
-n[0.0149] = -0.1924
n = -0.1924 / -0.0149 =
n=12.92 months
c). Calculation for the Total Amount Paid under $10-a-month plan
Using this formula
Total Amount Paid under $10-a-month plan = No. of Payments * Monthly Payment
Where,
No.of Payments =50
Monthly Payment=10
Let plug in the formula
Total Amount Paid under $10-a-month plan= 50 * $10 = $500
Calculation for the Total Amount Paid under $30-a-month plan
Using this formula
Total Amount Paid under $30-a-month plan = No. of Payments * Monthly Payment
Where,
No. of Payments =12.92
Monthly Payment=$30
Let plug in the formula
Total Amount Paid under $30-a-month plan= 12.92 * $30 = $387.62
Hence,
Total Amount Paid under $10-a-month plan -Total Amount Paid under $30-a-month plan
= $500 - $387.62
= $112.38
During 2008, Gum Co. introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to dollar sales are 2 percent within twelve months following the sale and 4 percent in the second twelve months following the sale. Sales and actual warranty expenditures for the years ended December 31, 2008 and 2009, are as follows:
Sales Actual Warranty Expenditures
2008 $150,000 $2,250
2009 250,000 7,500
$400,000 $9,750
What amount should Gum report as estimated warranty liability on its December 31, 2009 balance sheet?
a. $7,500
b. $4,250
c. $11,250
d. $14,250
e. $16,500
Answer:
d. $14,250
Explanation:
Calculation of the amount that Gum should report as estimated warranty liability on its December 31, 2009 balance sheet
First step
2% within twelve months following the sale + 4 % in the second twelve months following the sale.
Will give us 6%
Second step is to calculate the estimated warranty liability that should be reported
Sales Total of $400,000×6%
=$24,000
Hence,
Estimated warranty liability =$24,000 -Total of actual warranty expenditures of $9,750
Estimated warranty liability=$14,250
Therefore the amount that Gum should report as estimated warranty liability on its December 31, 2009 balance sheet will be $14,250
Pandora pioneered a new way to broadcast music. This kind of breakthrough of creating ________ ways to solve old problems or meeting customer needs in a ___________ new way is referred to as a pioneering new entry.
Answer:new; unique
Explanation:
Pioneering new entry is when a firm brings a new product into the market which in turn, changes the way in which businesses will be conducted.
In situations whereby the product is unique, then the pioneering firm may end up having little direct competition. Pioneering new entry is somehow risky as the product or service may not be accepted.
To determine the realized return on an investmen, the investor needs to know:________
1. Income received
2. The cost of an investment
3. The sale price of the investment
a. 2 and 3
b. 2 and 4
c. 1 and 4
d. 1 and 3
Answer:
The correct answer all of the above is missing
Explanation:
In order to determine the realized return on investment, for instance, stock, one needs to the income received(dividend) the initial purchase price as well as the sale price of the investment as shown in the formula below:
return on investment=P1-Po+D/Po
P1 is the sale price of investment
Po is the initial cost of investment
D is the income received
Childress compnay produces three products, K1, S5, and G9. Each product uses the same type of material. K1 uses 4.5 pounds of the material, S5 uses 3 pounds , and G9 uses 5.5 pounds. Demand for all products is strong but only 59900 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows.
K1 S5 G9
Selling price $158.38 $114.80 $204.52
Variable costs 86.00 91.00 139.00
Required:
Calculate the contribution margin per pound for each of the three products.
Answer:
Product K1 S5 G9
$ $ $
Contribution per pound 16.08 7.93 11.91
Explanation:
Contribution per pound is equate to contribution per unit divided quantity of material required per unit of product.
Contribution per pound = Contribution per unit/quantity of material
Contribution per unit =selling price - variable cost per unit
Product K1 S5 G9
$ $ $
Selling price 158.38 114.80 204.52
Variable cost (86.00) (91.00) (139.00)
Contribution per unit 72.38 23.8 65.52
Material per unit (pounds) 4.5 3 5.5
Contribution per pound 16.08 7.93 11.91
A $200 petty cash fund has cash of $20 and receipts of $177. The journal entry to replenish the account would include a credit to Group of answer choices Cash for $20 Cash Short and Over for $3 Petty Cash for $190 Cash for $180
Answer: Cash for $180
Explanation:
The Petty Cash balance should be at a certain level necessary to cover petty cash expenses of the company. In this case that amount is $200. $20 is already in cash in the account and so will need to be topped up to get to $200.
= 200 - 20
= $180
$180 will take the balance back to $200. The Cash account would be credited of this $200 and the Petty Cash would be debited.
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 10,600 8,500 7,000 11,100 Each unit requires 0.35 direct labor-hours, and direct laborers are paid $20.00 per hour. Required: 1. Prepare the company’s direct labor budget for the upcoming fiscal year.
Answer and Explanation:
The preparation of the direct labor budget is presented below:
Particulars Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Required
Production 10,600 8,500 7,000 11,100 37,200
Multiply with
Direct labor
hours 0.35 0.35 0.35 0.35
Total
direct labors 3,710 2,975 2,450 3,885 13,020
Multiply with
Direct labor
cost $20 $20 $20 $20 $20
Total
direct labor
cost $74,200 $59,500 $49,000 $77,700 $260,400
A stock has an expected return of 12.15 percent, its beta is 1.31, and the expected return on the market is 10.2 percent. What must the risk-free rate be
Answer:
Rf=risk-free rate=3.91%
Explanation:
E(R) = Rf + ß( Rmarket - Rf )
E(R)= Expected return =12.15%=0.1215
Rf= Risk free rate = ?
ß = Beta = 1.31
Rmarket = Expected return of market = 10.2 %= 0.102
Changing to fraction before solving
0.1215= Rf + 1.31(0.102- rf)
0.1215= Rf +0.13362-1.31Rf
0.13362-0.1215= -Rf+1.3Rf
0.01212=0.31Rf
Rf= 0.01212/0.31= 0.03909 x 100%= 3.909% =3.91%
or Solving directly
12.15= Rf +1.31(10.2-Rf)
12.15= Rf +13.362 -1.31Rf
13.362 -12.15=-Rf + 1.31Rf
1.212= 0.31Rf
Rf =3.909% round off to 3.91%
Don Wyatt is unable to reconcile the bank balance at January 31. Don?s reconciliation is as follows.
Cash balance per bank $3,800.20
Add: NSF check 570.00
Less: Bank service charge 35.00
Adjusted balance per bank $4,335.20
Cash balance per books $4,115.20
Less: Deposits in transit 650.00
Add: Outstanding checks 940.00
Adjusted balance per books $4,405.20
Prepare a correct bank reconciliation.
Answer and Explanation:
The preparation of the correct bank reconciliation is presented below:
Don Wyatt
Bank reconciliation statement
January 31
Particulars Amount Particulars Amount
Bank cash balance $3,800.20 Company cash balance $4,115.20
Deposits in transit $650 Less: NSF check -$570
Less: Outstanding Less: service fee -$35
Check -$940
Bank balance Company balance
After reconciliation $3,510.20 After reconciliation $3,510.20
We adjust the transactions according to the bank balance and book balance so that the both balance could be matched accordingly
Smith buys and sells equity securities. On December 15, 2021, Smith purchased $522,000 of Jones shares and elected the fair value option to account for the Jones investment. As of December 31, 2021, the Jones shares had a fair value of $578,000. In the 2021 financial statements, Smith will report (ignore taxes):
Answer:
Smith will report an investment income of $56,000 in its income statement.
Explanation:
Based on the information given we were told that Smith made a purchased of the amount of $522,000 of Jones shares in which as of December 31, 2021, the Jones shares also had a fair value of the amount of $578,000 this means that Smith will report an investment income of $56,000 ($578,000-$522,000) in its income statement.
In the film Islam and America: Through the eyes of Imran Khan, which of the following best describes how average Pakistanis responded when the interviewer asked them about the IMF (International Monetary Fund)?
a. They did not know what the IMF is.
b. They considered the IMF a benevolent source of funding to help economic growth.
c. They criticized or disparaged the IMF.
Answer: c. They criticized or disparaged the IMF.
Explanation:
In the 2001 film, Islam and America: Through the eyes of Imran Khan, it is shown that the average person in Pakistan know what the IMF is and detests them. They criticized and disparaged the IMF with some reasons given being that;
the IMF is a way for the Developed world to economically colonise Pakistanthe IMF is tool for the Americans to use and try to assert controlthe IMF forces governments to raise utility prices to meet their conditions or pay back loans which makes poor people suffer the most.Suppose that the government imposes a $2 a cup tax on coffee. The rise in the price of a Starbucks coffee will be ______, coffee. The number of cups of coffee bought in coffee shops will _______.
Answer:
increase, decrease
Explanation:
In simple words, when the tax was imposed on the product the company will ultimately bear it to the final consumer which means the price will rise. However when the price of the product rises the demand for that product decreases due to the fact that many individuals would not be able to buy it now from their limited income, this phenomenon is called price elasticity due to income.
Answer:
increasedecreaseExplanation:
Customer-Level Planning Circle K operates a number of convenience stores worldwide. Assume that an analysis of operating costs, customer sales, and customer patronage reveals the following:Fixed costs per store ............................................$80,000.00/year
Variable cost ratio...............................................0.80
Average sale per customer visit....................................$15.00
Average customer visits per week..................................1.75
Customers as portion of city population .............................0.04
Determine the city population required for a single Circle K to earn an annual profit of $40,000
Answer:
11,000 people
Explanation:
fixed costs per store $80,000
variable cost ratio 0.80
average sale per customer $15
average customer sales per week 1.75
customers as portion of population 4%
each customer shops 1.75 x 52 = 91 times per year
contribution margin per visit = $15 - ($15 x 0.8) = $3
contribution margin per client per year = $3 x 91 = $273
in order to make $40,000 in profits, you need at least:
($80,000 + $40,000) / $273 = 439.56 ≈ 440 customers
to determine the city's total population = 440 / 0.04 = 11,000
Speedster Bicycles, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If sales are budgeted to be $250,000 for March and $280,000 for April, what are the budgeted cash receipts from sales on account for April
Answer:
Total cash April= $257,500
Explanation:
Giving the following information:
Speedster Bicycles, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale.
Sales:
March= $250,000
April= $280,000
Cash budget of April:
Sales on account from April= 280,000*0.25= 70,000
Sales on account from March= 250,000*0.75= 187,500
Total cash April= $257,500