Answer:
these countries were prudent with their spending on imports
Explanation:
The trade deficit arise when the exports value would be lower than the imports value. Here the countries have to borrow so that they are able to pay back the amount so that the economy could be run in the smooth manner
The money that is borrowed from the rest of the world could increase the production so that the imports value could be increased
So according to the given situation, these countries would be prudent with their imports spending
what is the bad side of profit motive?
Answer:
The profit motive that drives companies and individuals all too often gives way to greed. The power of leadership all too often gives way to elitist domination. The accumulation of wealth can look like excess or hoarding while income inequality increases in economies around the globe
Tim, a single taxpayer, operates a business as a single-member LLC. In 2020, his LLC reports business income of $382,000 and business deductions of $668,500, resulting in a loss of $286,500. What are the implications of this business loss
Answer: See explanation
Explanation:
First, it should be noted that a threshold limit of $250,000 applies to the question according to IRS since Tim is a single taxpayer.
Therefore, the excess business loss will be:
= $286,500 - $250,000
= $36500
Therefore, Tim can use $250000 out of the loss of $286,500 to offset the non business income. Then, the excess business loss of $36500 will be treated as part of the NOL carryforward for Tim.
An ad for Tums antacid shows a guest at a restaurant asking for Tums to alleviate his heartburn. The waitress brings him a bowl that is filled with packets of Maalox, Rolaids, Tums and other antacids. The waitress says that all antacids are the same. The guest then explains to her that Tums is different because it is the only antacid brand that has calcium. Tums is using: Group of answer choices one-sided advertising two-sided advertising comparative advertising verbal appeals visual appeals'
Answer:
comparative advertising
Explanation:
Comparative advertising is a marketing strategy where the product or service of the company would be represented as a superior good as compared to the competitor. It compared the features of the company to the competitor
Since in the given situation, it is mentioned that the guest explains to her than tums should be different as it the antacid brand that contains only calcium
So, the above represent the answer
Ocean Seafood Company purchases lobsters and processes them into tails and flakes. It sells the lobster tails for $20 per pound and the flakes for $15 per pound. On average, 100 pounds of lobster are processes into 57 pounds of tails and 24 pounds of flakes, with 19 pounds of waste. Assume that the company purchased 3,000 pounds of lobster for $6.00 per pound and processes the lobsters with an additional labor cost of $1,800. No materials or labor costs are assigned to the waste. What is the cost to process tails and flakes and the cost per pound
Answer:
Ocean Seafood Company
The cost to process tails and flakes = $19,800
The cost per pound = $8.15
Explanation:
a) Data and Calculations:
Tails Flakes Waste Total
Sales price per pound $20 $15
Ratio of processing 100 pounds 57 24 19
Purchase of 3,000 pounds 1,710 720 570 2,430
Cost of 3,000 pounds at $6each $12,667 $5,333 0 $18,000
Labor cost 1,267 533 0 1,800
Total cost $13,934 $5,866 0 $19,800
Cost per pound $8.15 $8.15 $8.15
an increase in supply is illustrated by a supply curve sifting to the right
Answer:
Right************, ***
"When auto manufacturer BMW purchased the Rollsminus Royce brand name, BMW had to hire and train a new staff of assembly workers. The new workers were paid $27 per hour, worked a total of 7,200 hours, and produced 2,100 cars. BMW budgeted for a standard labor rate of $32 per hour and 3.50 direct labor hours per car. What is the direct labor rate variance for the Rollsminus Royce division?"
Answer:
See now
Explanation:
With regards to the above, direct labor rate variance is computed as;
Direct labor rate variance
= Actual cost - Standard cost of actual hours
= [(7,200hours × $27) - (7,200 hours × $32)]
= $194,400 - $230,400
= $36,000 favorable
Therefore , direct labor rate variance i s $36,000 favorable
Which of the following is a gauge used to measure distance traveled?
Answer:
please give me brainlist and follow
Explanation:
An odometer or odograph is an instrument used for measuring the distance traveled by a vehicle, such as a bicycle or car. The device may be electronic, mechanical, or a combination of the two (electromechanical).
Marshall Welding Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining and Assembly). The number of employees in each department follows. Cafeteria 20 Human Resources 30 Machining 100 Assembly 150 Marshall Welding uses the step-down method of cost allocation and allocates cost on the basis of employees. Human Resources cost amounts to $1,200,000, and the department provides more service to the firm than Cafeteria. How much Human Resources cost would be allocated to Cafeteria
Answer: $88,889
Explanation:
Based on the information given in the question, the cost of Human Resources that would be allocated to Cafeteria will be calculated thus:
Number of employees (Human Resources to departments)
= 20 + 100 + 150
= 270 employees
The Human Resources cost would be allocated to Cafeteria will be:
= $1,200,000 / 270 x 20
= $88,889
On January 1, 2021, Wetick Optometrists leased diagnostic equipment from Southern Corp., which had purchased the equipment at a cost of $2,251,671. The lease agreement specifies six annual payments of $470,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2025. The six-year lease term ending December 31, 2026 (a year after the final payment), is equal to the estimated useful life of the equipment. The contract specifies that lease payments for each year will increase on the basis of the increase in the Consumer Price Index for the year just ended. Thus, the first payment will be $470,000, and the second and subsequent payments might be different. The CPI at the beginning of the lease is 120. Southern routinely acquires diagnostic equipment for lease to other firms. The interest rate in these financing arrangements is 10%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the appropriate journal entries for Wetick to record the lease at its beginning. 2. Assuming the CPI is 126 at that time, prepare the appropriate journal entries related to the lease for Wetick at December 31, 2021.
Answer:
Equipment 2,251,669.78 DEBIT
Cash 470,000.00 CREDIT
Lease Liability 1,781,669.78 CREDIT
--to record the beginning of the lease--
Lease liability 291,833.02 debit
interest expense 178,166.98 debit
loss on monetary position 23,500 debit
Cash 493,500 credit
Explanation:
We solve for the present value of the six payment of 470,000 to know the lease liability
Present Value of Annuity
[tex]C \times \displaystyle \frac{1-(1+r)^{-time}}{rate} (1+rate)= PV\\[/tex]
C 470,000
time 6
rate 0.1
[tex]470000 \times \displaystyle \frac{1-(1+0.1)^{-6}}{0.1} (1 + 0.10) = PV\\[/tex]
PV $2,251,669.7816
We subtract the first payment of 470,000
Lease liability account: 1,781,669.78
Second payment journal entry:
interest calculations:
1,781,669.78 x 0.1 = 178,166.98
principal payment:
470,000 - 178,166.98 = 291,833.02
inflation' adjustment:
470,000 x 126/120 = 493,500
The difference will be a loss on monetary position by the difference:
493,500 - 470,000 = 23,500
The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: Monthly Fixed Cost Variable Cost Per Deb Sold Sales commissions $ 1.01 Shipping $ 1.51 Advertising $ 51,100 $ 0.31 Executive salaries $ 61,100 Depreciation on office equipment $ 21,100 Other $ 41,100 All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the company has budgeted to sell 16,100 Debs in February, then the total budgeted fixed selling and administrative expenses for February is: Multiple Choice
A fierce debate exists between policymakers as to whether or not they should use monetary and fiscal policies to stabilize small fluctuations in the economy. Please determine which of the given statements could be used to support using policy to stabilize the economy and which might be used against such choices. In favor of using policy Not in favor of using policy
Answer:
Hello the options related to your question is missing attached below are the missing options
answer :
In favor of using policy
Fiscal policy can be used to cut spending and rein in excessive aggregate demand. This controls inflationPolicy makers can expand the money supply in order to increase aggregate demandNot in favor of using policy
Fiscal policy, in particular is subject to long delays in the political process, which can affect its usefulnessMonetary and fiscal policy only take effect after a long lagBecause of the imprecision of economic forecasting, policy makers may end up causing more harm to the economy than goodExplanation:
Fiscal policy is simply the use of government, taxing and spending policy to influence the economic conditions of the country positively over time. and it can come in either ways. i.e. increase in government spending or lowering taxes by the government
In favor of using policy
Fiscal policy can be used to cut spending and rein in excessive aggregate demand. This controls inflationPolicy makers can expand the money supply in order to increase aggregate demandNot in favor of using policy
Fiscal policy, in particular is subject to long delays in the political process, which can affect its usefulnessMonetary and fiscal policy only take effect after a long lagBecause of the imprecision of economic forecasting, policy makers may end up causing more harm to the economy than good1. A service level agreement must be
a. A result of collaboration and negotiation
b. A simple clear summary document
Ć Stated in non-technical language
d. All of the above
Answer:
the answer is D
I think it will helps you
Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Common stock, $7 par value, 119,000 shares authorized Preferred stock, 15 percent, par value $6 per share, 6,000 shares authorized During the year, the following transactions took place in the order presented: a. Sold and issued 21,300 shares of common stock at $12 cash per share. b. Sold and issued 1,900 shares of preferred stock at $16 cash per share. c. At the end of the year, the accounts showed net income of $41,400. No dividends were declared.
Answer:
$327,400
Explanation:
Preparation of the stockholders' equity section of the balance sheet at the end of the year.
TANDY, INCORPORATED Balance Sheet (Partial) At December
TANDY, INCORPORATED
Balance Sheet (Partial)
At December 31, this year
Stockholders' equity:
Contributed capital:
Common stock $149,100
(21,300*$7)
Additional paid-in capital, common stock $106,500
[21,300 x (12-7)]
Common stock - Contributed capital $255,600
($149,100+$106,500)
Preferred stock $11,400
(1,900*$6)
Additional paid-in capital, Preferred stock $19,000
[1,900 x (16-6)]
Preferred stock - Contributed capital $30,400
($11,400+$19,000)
Total Contributed Capital $286,000
($255,600+$30,400)
Retained earnings $41,400
Total Stockholders' equity $327,400
($286,000+$41,400)
Therefore the stockholders' equity section of the balance sheet at the end of the year will be $327,400
A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing.
For the students of the college, the visual appearance of the campus is_________and __________ . Thus, the visual appearance would be classified as a public good.
Suppose the college administrators estimate that the beautification initiative will cost $7,200. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 300 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $18.
Answer:
Non rival and non excludable
Explanation:
if the visual appearance is classified as a public good, then it is non-rival and non excludable.
In economics, a public good is described with these two characteristics. such goods are non rivalrous and also without excludability.
if mr A is using such a good, it does not prevent mr B from using it also. Also Mr A cannot exclude Mr B from using it
the benefit of the beautification initiative = $18*300
= 5400
When a company uses outsourcing to zero in on even better performance of those truly strategy-critical activities where its expertise is most needed, then it may also be able to:________.
a. better police compliance with ethical standards, lower overall operating costs, and create two or more distinctive competencies.
b. devote more resources to its social responsibility strategy, better empower employees, and reduce employee turnover.
c. decrease internal bureaucracies, flatten its organizational structure, and shorten the time it takes to respond to changing market conditions.
d. create a values-based corporate culture that excels in product innovation.
e. reduce the potential for information overload and improve the quality of decision-making in each domain.
Answer:
c. decrease internal bureaucracies, flatten its organizational structure, and shorten the time it takes to respond to changing market conditions.
Explanation:
Outsourcing is the process where a business gives out part of its activities to a third party to handle.
They are no longer directly in control of the activity.
For example recruitmemt, procurement, and sales can be outsourced to third party companies.
In the given scenario. If a company uses outsourcing to zero in on those truly strategy-critical activities where its expertise is most needed, then it will reduce the bureacracy associated with outsourcing.
Employees of the company will have a shorter time to respond to changing market conditions.
Unlike when it is outsourced and one needs to communicate with a third party
Two hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 500Qmill + (Qmill)2 where Qmill indicates the mills annual production in thousands of tons. The marginal cost of production is MC = 500 + 2Qmill. The external cost of a mill’s production (in dollars) is given by the formula EC = 40Qmill + (Qmill)2 and the marginal external cost of production is MEC = 40 + 2Qmill. Finally, annual market demand (in thousands of tons) is given by the formula Qd = 150,000 – 100P where P is the price of paper per ton. Using algebra, find the competitive equilibrium price and quantity, as well as the efficient quantity. Calculate the magnitude of the deadweight loss resulting from the externality. Illustrate your solution with graphs.
Answer: See explanation
Explanation:
The magnitude of the deadweight loss resulting from the externality is shown below:
MC = 500 + 2Q
MEC = 40 + 2Q
Therefore, the Marginal social cost (MSC) will be:
= MC + MEC
= 500 + 2Q + 40 + 2Q
= 540 + 4Q
Since Demand: Q = 150,000 - 100P, we have to get a function for P which will be:
Q = 150,000 - 100P
100P = 150,000 - Q
P = (150,000 - Q)/100
P = 1,500 - 0.01Q
Total revenue, TR = P x Q
= (1,500 - 0.01Q) × Q
= 1500Q - 0.01Q²
Marginal revenue, MR will be:
= dTR / dQ
= 1,500 - 0.02Q
It should be noted that for when there's no externality, Equilibrium, MC must be equal to MR. Therefore,
1,500 - 0.02Q = 500 + 2Q
2Q + 0.02Q = 1500 - 500
2.02Q = 1,000
Q = 1000/2.02
Q = 495
P = 1,500 - (0.01 x 495)
= 1,500 - 4.95
= 1,495.05
When there's externality, Equilibrium will be:
MR = MSC
1,500 - 0.02Q = 540 + 4Q
4.02Q = 960
Q= 960/4.02
Q = 239
Therefore, P = 1,500 - (0.01 x 239)
= 1,500 - 2.39
= 1,497.61
Then, we will calculate the deadweight loss which will be:
= 1/2 x Difference in price x Difference in quantity
= 1/2 x (1,497.61 - 1,495.05) x (495 - 239)
= 1/2 x 2.56 x 256
= 327.68
Which type of bonds are written by a municipality with you give me to repay the amount of the bond plus interest on a particular maturity date
A) government
B) preferred
C)mutual
The Correct Answer: government
write the importance of flower farming in Nepal in point
Item1 10 points Time Remaining 59 minutes 50 seconds00:59:50 eBookItem 1 Time Remaining 59 minutes 50 seconds00:59:50 Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $150,000 and would have a sixteen-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $20,000 per year to operate and maintain, but would save $50,000 per year in labor and other costs. The old machine can be sold now for scrap for $15,000. The simple rate of return on the new machine is closest to (Ignore income taxes.)
Answer:
Denny Corporation
The simple rate of return on the new machine is closest to:
= 13.75%.
Explanation:
a) Data and Calculations:
Cost of new machine = $150,000
Estimated useful life = 16 years
Salvage Value = $0
Annual depreciation expense = $9,375 ($150,000/16)
Operation and maintenance cost per year = $20,000
Savings in labor and other costs per year = $50,000
The net savings in costs per year = $30,000 ($50,000 - $20,000)
Incremental net income = $20,625 ($30,000 - $9,375)
The simple rate of return = Net Savings per year/Cost of new machine * 100
= $20,625/$150,000 * 100
= 13.75%
b) This simple rate of return of 13.75% does not account for inflation or the time value of the investment. So there is no discounting or calculation of the present values of the investment and the incremental net income. Instead, it considers the annual depreciation expense that is attributable to the investment.
BOGO Inc. has two sequential processing departments, roasting and mixing. At the beginning of the month, the roasting department had 3,080 units in inventory, 70% complete as to materials. During the month, the roasting department started 21,600 units. At the end of the month, the roasting department had 4,800 units in ending inventory, 80% complete as to materials. Cost information for the roasting department for the month follows:
Beginning work in process inventory (direct materials) $ 4,870
Direct materials added during the month 45,900
Using the FIFO method, assign direct materials costs to the roasting department’s output—specifically, the units transferred out to the mixing department and the units that remain in process in the roasting department at month-end. (Do not round intermediate calculations.)
Answer:
Direct material cost of units transferred out = $42,596
Cost of ending work in process inventory = $8,174
Explanation:
This can be done using the following 3 steps:
Step 1: Calculation of equivalent unit of production (EUP) of materials
Note: See the attached excel file for the calculation of equivalent unit of production (EUP) of materials.
From the attached excel file, we have:
Physical unit = 24,680
EUP-material = 21,564
Step 2: Calculation of cost per EUP of materials
Cost per EUP of materials = Direct materials added during the month / EUP-Materials = $49,900 / 21,564 = $2.13
Step 3: Assignment of direct materials cost to the units transferred out amd the ending WIP
Cost of materials added to complete the beginning WIP = 924 * $2.13 = $1,967
Cost of units started and transferred out = 16,800 * $2.13 = $35,760
Direct material cost of units transferred out = Direct material cost of beginning WIP + Cost of materials added to complete the beginning WIP + Cost of units started and transferred out = $4,870 + $1,967 + $35,760 = $42,596
Cost of ending work in process inventory = 3,840 * $2.13 = $8,174
First and Ten Corporation’s stock returns have a covariance with the market portfolio of .0415. The standard deviation of the returns on the market portfolio is 20% and the expected market risk premium is 6.7%. The company has bonds outstanding with a total market value of $55 million and a yield to maturity of 6.5%. The company also has 4.2 million shares of common stock outstanding, each selling for $35. The company’s CEO considers the firm’s current debt-equity ratio optimal. The corporate tax rate is 21% and Treasury bills currently yield 3.4%. The company is considering the purchase of additional equipment that would cost $49 million. The expected unlevered cash flows from the equipment are $16.4 million per year for five years. Purchasing the equipment will not change the risk level of the firm. Calculate the NPV of the project.
Answer:
NPV of the project = $14,906,309.99
Explanation:
Note: See the attached excel file for calculation of the NPV of the project (in bold red color).
The weighted average cost of capital (WACC) used in calculating the discounting factor used in the attached excel file is calculated as follows:
Cost of equity = Treasury bills current yield + (Stock returns covariance with the market portfolio / Standard deviation of the returns on the market portfolio^2) * Expected market risk premium = 3.4% + (0.0415 / 20%^2) * 6.7% = 10.35%
After tax cost of debt = Bond yield to maturity * (100% - Tax rate) = 6.5% * (100% - 21%) = 5.14%
Market value of debt = $55,000,000
Market value of equity = Shares of common stock outstanding * Market price per share = 4,200,000 * $35 = $147,000,000
Total market value = Market value of equity + Market value of debt = $147,000,000 + $55,000,000 = $202,000,000
Equity share in the market value = $147,000,000 / $202,000,000 = 72.77%
Debt share in the market value = $55,000,000 / $202,000,000 = 27.23%
WACC = (Cost of equity * Equity share in the market value) + (After tax cost of debt * Debt share in the market value) = (10.35% * 72.77%) + (5.14% * 27.23%) = 8.93%
From attached excel file, we have:
NPV of the project = $14,906,309.99
To be included in property, plant, and equipment, an asset must have all of the following except Group of answer choices a. the asset must be held for use. b. the asset must have an expected life of a normal operating cycle. c. the asset must be tangible in nature. d. the asset must have an expected life of more than one year. g
Answer:
b. the asset must have an expected life of a normal operating cycle.
Explanation:
A current asset can be defined as all of the assets that are being owned by a company or business entity and are expected to be converted into their cash equivalent through sales or use within a period of one year of its date on the organization's balance sheet.
Hence, to be included in property, plant, and equipment, an asset must have all of the following;
I. The asset is expected or required to be held for use
II. It must be tangible in nature.
III. It is required to have an expected life of that is typically above a year.
A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $118,982.50 today. The system is expected to generate net cash flows of $10,209 per year for the next 35 years. The investment has zero salvage value. The company requires an 7% return on its investments. 1-a. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) 1-b. Should the project be accepted
Answer and Explanation:
The computation of the net present value is given below:
a.
As we know that
Net present value
= Annual cash inflows × PVIFA factor at 7% for 35 years - initial investment
= $10,209 × 12.9477 - $118,982.50
= $132,183.0693 - $118,982.50
= $13,200.57
Hence, the net present value is $13,200.57
b. Yes the project should be accepted as it net present value comes in positive amount
What is the first element that should be considered in creating an
advertisement?
Answer:
UNDERSTANDING THE PRODUCT DNA::
the first element is recognise the idea behind the product or service.For example if you are selling "bespoke clothing line" then the idea behind is 'luxury'. therefore, the advertising campaign must revovle around luxury.
Answer:
the message
Explanation:
Entry for Issuing Materials
Materials issued for the current month are as follows:
Requisition No. Material Job No. Amount
103 Plastic 400 $ 2,800
104 Steel 402 24,000
105 Glue Indirect 1,620
106 Rubber 403 3,200
107 Titanium 404 31,600
Journalize the entry to record the issuance of materials.
For a compound transaction, if an amount box does not require an entry, leave it blank.
Work in Process
Factory Overhead
Materials
Answer:
Journal entry to record the issuance of materials
Date Accounts & explanation Debit Credit
Work in process $61,600
(2,800+24,000+3,200+31,600)
Factory overhead $1,620
Material $63,220
(To record the issuance of material)
Sophia just graduated from college. She just sold the furniture from her college apartment for $450 in cash. She just deposited $2,700 in graduation money into her checking account and has $7,500 saved in her savings account from working part-time. She charged gas and groceries to her credit card that she hasn't paid off yet. The total balance on her credit card is $179. Sophia has driven the same car since high school that is valued at $3,254. She doesn't have an auto loan. Her total student loan amount after graduating is $54,178. What is Sophia's net worth? (Do not include the $ sign or commas in your answer).
Answer:
Sophia's Net Worth
Sophia's net worth is:
= ($40,453).
Explanation:
a) Data and Calculations:
Assets:
Proceeds from sale of furniture = $450
Checking account deposit = 2,700
Savings account 7,500
Car 3,254
Total assets $13,904
Liabilities:
Credit card $179
Student loan after graduating 54,178
Total liabilities $54,357
Sophia's net worth = ($40,453)
b) Sophia's net worth is in the negative because of the student loan. This implies that she is in debt. A negative net worth simply means that Sophia owes more than she owns. In other words, Sophia's liabilities exceed her assets' value.
It is argued that LIFO should not be allowed to compute net income because a. it does not match costs to revenues, especially when there is inflation in the economy. b. it overstates balance sheet inventory. c. it understates cost of goods sold when prices are rising and therefore makes US companies' results look better than foreign companies' results which can only use FIFO. d. it causes profits to be understated when prices are rising and allows a company to dodge taxes.
Answer:
d. it causes profits to be understated when prices are rising and allows a company to dodge taxes.
Explanation:
The LIFO method should not be permitted to determine the net income as in this case the profits would be understated at the time when price is increased due to this it permits the company to dodge taxes as the inventory consumed in the production process also the high inventory value would be involved in the cost of sales that represent the high cost, this result in lower profits and taxes
Hence, the option d is correct
A consumer electronics company is in the process of evaluating whether it should pursue an internal development strategy or an external growth strategy. To make this decision, the management needs to assess whether the company's internal resources are superior to those of competitors in the targeted area. Which of the following strategic management models would be most useful in this assessment?
a. the core competence matrix.
b. the Boston Consulting Group (BCG) matrix.
c. the transaction-cost economics model.
d. the VRIO framework.
Answer:
Option d: The VRIO framework
Explanation:
The VRIO Framework?
This simply talks about (explains) and tells (predicts) firm-level competitive advantage. It is said to uncovers sustained competitive advantage.
VRIO is an acronym for a four-question framework which makes up the 4 components of the VRIO Framework. It includes;
1. Valuable
2. Rare
3. Costly to Imitate
4. Organized to Capture.
VRIO as Valuable means it has attractive features and has low cost and price in its design and build.
VRIO as Rare means only a few firms posses it.
VRIO as Costly to Imitate means that it is difficult to be developed or bought at a reasonable price.
VRIO as Organized to Capture means it exploit competitive potential.
Journal Entries (Note Received, Renewed, and Collected) 1. Prepare general journal entries for the transactions. When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. May 22 Received a 30-day, 6% note in payment for merchandise sale of $20,000. June 21 Received $100 cash (interest) on the old (May 22) note; the old note is renewed for 30 days at 7%. July 21 Received principal and interest on the new (June 21) note. 28 Received a 45-day, 7% note in payment for accounts receivable balance of $11,600. Sept. 11 Received $101.5 cash (interest) plus $1,200 principal on the old (July 28) note; the old note is renewed for 60 days (from September 11) at 7.5%. Nov. 10 Received principal and interest on the new (September 11) note.
Answer:
Journal Entries:
May 22 Debit 6% Note Receivable $20,000
Credit Sales Revenue $20,000
To record the receipt of a 30-day, 6% note in payment for merchandise.
June 21 Debit Cash $100
Credit Interest Revenue $100
To record a month's interest received on the note receivable.
Debit 7% Note Receivable $20,000
Credit 6% Note Receivable $20,000
To record the renewal of the 6% note with a 7% note for 30 days.
July 21 Debit Cash $20,116.67
Credit 7% Note Receivable $20,000
Credit Interest REvenue $116.67
To record the receipt of principal and interest on the new (June 21) note.
July 28 Debit 7% Note Receivable $11,600
Credit Accounts Receivable $11,600
To record the receipt of a 45-day, 7% note in payment for accounts receivable balance.
Sept. 11 Debit Cash $1,301.50
Credit Interest Revenue $101.5
Credit 7% Note Receivable $1,200
To record the receipt of cash for note and interest.
Debit 7.5% Note Receivable $10,400
Credit 7% Note Receivable $10,400
To record the renewal of the old note for 60 days at 7.5%.
Nov. 10 Debit Cash $10,530
Credit 7.5% Note Receivable $10,400
Credit Interest Revenue $130
To record full settlement of principal and interest on the note.
Explanation:
a) Data and Analysis:
May 22 6% Note Receivable $20,000 Sales Revenue $20,000.
June 21 Cash $100 Interest Revenue $100
7% Note Receivable $20,000 6% Note Receivable $20,000
July 21 Cash $20,116.67 7% Note Receivable $20,000 Interest REvenue $116.67
July 28 7% Note Receivable $11,600 Accounts Receivable $11,600
Sept. 11 Cash $1,301.50 Interest Revenue $101.5 7% Note Receivable $1,200
7.5% Note Receivable $10,400 7% Note Receivable $10,400
Nov. 10 Cash $10,530 7.5% Note Receivable $10,400 Interest Revenue $130
On January 1, James Industries leased equipment to a customer for a five-year period, at which time possession of the leased asset will revert back to James. The equipment cost James $830,000 and has an expected useful life of seven years. Its normal sales price is $830,000. The residual value after five years is $200,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. The interest rate is 8%. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Calculate the amount of the annual lease payments.
Answer:
James Industries
The amount of the annual lease payments is:
= $207,878.86.
Explanation:
a) Data and Calculations:
Cost of equipment = $830,000
Normal sales price = $830,000
Residual value after 5 years = $200,000
Interest rate = 8%
Lease period = 5 years
From an online financial calculator:
Loan Amount 830000
Loan Term 5 years
Interest Rate 8
Results:
Payment Every Year $207,878.86
Total of 5 Payments $1,039,394.29
Total Interest $209,394.29
Lease Payment Schedule:
Period PV PMT Interest FV
1 $830,000.00 $-207,878.86 $66,400.00 $-688,521.14
2 $688,521.14 $-207,878.86 $55,081.69 $-535,723.98
3 $535,723.98 $-207,878.86 $42,857.92 $-370,703.04
4 $370,703.04 $-207,878.86 $29,656.24 $-192,480.42
5 $192,480.42 $-207,878.86 $15,398.43 $0.00