Answer:
$2,645,700
Explanation:
realized amount = cash received + assumed mortgage - points paid by seller - broker's commission = $1,763,800 + $1,058,280 - $105,828 - $70,552 = $2,645,700
The amount realized includes all the money received and any debts assumed by the buyer, minus any expenses paid by the seller that are related to the transaction.
Which of the following theories suggests that employee motivation is influenced by what other people contribute to and receive from the organization?
a. Expectancy theory
b. Equity theory
c. Needs-based theory
d. Need theory
e. Goal setting theory
Explanation:
good good morning everyone in the wind blows when Devon bless the wind blows the pic which snap on snap grip cycle Godfather lead in the cord few questions
The theory that suggests that employee motivation is influenced by what other people contribute to and receive from the organization is Equity theory. Thus option (b) is correct.
What is an organization?An organization is a group of individuals who work together in a structured and coordinated manner to achieve a common goal or objective.
It can be a formal entity, such as a corporation, or nonprofit organization, or an informal group, such as a sports team, community group, or social network.
They can operate in various industries and sectors, including finance, healthcare, education, manufacturing, and technology. The success of an organization depends on its ability to effectively manage its resources, achieve its goals, and adapt to changes in its environment.
The equity theory states that an employee gets motivation by what other people contribute to and receive from the organization is Equity theory.
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"An analysis of yield curves of U.S. Government and lower medium quality corporate bonds shows the yield spread to be widening over the last 4 months. This is an indication that investors expect the economy to:"
Explanation:
recession
Answer:
To be going into recessionary situation over the coming time period. The widening spread indicates that the yield on lower grade corporate bond are higher than normal relative to yield bonds issued by government. This situation is happening due to investors investing highly in government bonds leading to increase in yields.
For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions):
Sales $28,600
Food and packaging $9,710
Payroll 7,200
Occupancy (rent, depreciation, etc.) 6,630
General, selling, and administrative expenses 4,200
$27,740
Income from operations $860
Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.
a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place)
b. What is McDonald's contribution margin ratio? Round to one decimal place.
c. How much would income from operation increase if the same-store sales increased by $900 million for the coming year, with NO change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place)
Answer:
a. What is McDonald's contribution margin?
contribution margin = total sales - total variable costs = $28,600 - [$9,710 + $7,200 + (0.4 x $4,200)] = $10,010
b. What is McDonald's contribution margin ratio?
contribution margin ratio = contribution margin / total sales = $10,010 / $28,600 = 0.35 ≈ 0.4
c. How much would income from operation increase if the same-store sales increased by $900 million for the coming year, with NO change in the contribution margin ratio or fixed costs?
increase in total contribution margin = $900 x 0.35 = $315
Income from operations will increase by $315 million
Brief Exercise 8-5 Vaughn Company uses a periodic inventory system. For April, when the company sold 450 units, the following information is available. Units Unit Cost Total Cost April 1 inventory330$22$ 7,260 April 15 purchase380269,880 April 23 purchase 290 29 8,410 1,000 $25,550 Compute the April 30 inventory and the April cost of goods sold using the FIFO method. Ending inventory $ Cost of goods sold
Answer:
Results are below.
Explanation:
Giving the following information:
Units sold= 450 units
Units Unit Cost Total Cost
April 1 inventory= 330 units at $22
April 15 purchase= 380 units art $26
April 23 purchase= 290 units at $29
To calculate the ending inventory, first, we need to determine the number of units in ending inventory:
Ending inventory in units= 330 + 380 + 290 - 450= 550 units
Ending inventory FIFO= 290*29 + 260*26= $15,170
COGS= 330*22 + 120*26= $10,380
A machine costing $57,000 with a six-year life and $54,000 depreciable cost was purchased January 1. Compute the yearly depreciation expense using straight-line depreciation.
Answer:
$9,000
Explanation:
The computation of the depreciation expense using the straight-line method is shown below;
= (Purchase value of machinery - residual value) ÷ (estimated useful life)
= $54,000 ÷ 6 years
= $9,000
The depreciation cost is the cost which is come after considering the salvage value and the same is to be considered
Hence, the depreciation expense is $9,000
When individuals acquire, process, and act on relevant economic information promptly in their own self-interest and investigate its impact on others, they are said to have __________ expectations.
Answer: rational
Explanation:
Rational expectations is a way by which individuals make their decisions based on their past experience, self interest, human rationality and the information that they have.
Therefore, when individuals acquire, process, and act on relevant economic information promptly in their own self-interest and investigate its impact on others, they are said to have rational expectations.
4. Calculate the required rate of return for Manning Enterprises assuming that investors expect 3.5% rate of inflation in the future. The real risk-free rate is 2.5%, and the market risk premium is 6.5% Manning has a beta of 1.7, and its realized rate of return has averaged 13.5% over the past 5 years.
Answer: 17.05%
Explanation:
Given the variables available, the method to be used to calculate the required return is the Capital Asset Pricing Model with the formula;
Required Return = Nominal Risk-free rate + beta ( Market premium)
Nominal Risk-free rate = real risk-free rate + inflation
= 2.5% + 3.5%
= 6%
Required Return = 6% + 1.7 ( 6.5%)
Required Return = 6% + 11.05%
Required Return = 17.05%
Coyote Loco, Inc., a distributor of salsa, has the following historical collection pattern for its credit sales.
80 percent collected in the month of sale.
10 percent collected in the first month after sale.
5 percent collected in the second month after sale.
4 percent collected in the third month after sale.
1 percent uncollectible.
The sales on account have been budgeted for the last seven months as follows:
June $126,500
July 154,000
August 179,000
September 208,000
October 233,000
November 258,000
December 220,500
Required:
1. Compute the estimated total cash collections during October from credit sales.
2. Compute the estimated total cash collections during the fourth quarter from sales made on account during the fourth quarter.
Answer:
80 perent...
Explanation:
1. The estimated total cash collections during the month of October from credit sales are $222,310.
2. The estimated total cash collections during the fourth quarter of the year from sales made only on account during the fourth quarter are $835,870 ($166,400 + $207,200 + $240,100 + $222,170).
Data and Calculations:
Cash Collections from Credit Sales
June Jul Aug Sept Oct. Nov. Dec.
Credit Sales:
$126,500 $ 154,000 $179,000 $208,000 $233,000 $258,000 $220,500
Cash Collections:
80% $166,400 $186,400 $206,400 $176,400
10% 17,900 20,800 23,300 25,800
5% 7,700 8,950 10,400 11,650
4% 5,060 6,160 7,160 8,320
Total collections $222,310
June Jul Aug Sept Oct. Nov. Dec.
Credit Sales:
$126,500 $ 154,000 $179,000 $208,000 $233,000 $258,000 $220,500
Cash Collections:
80% $166,400 $186,400 $206,400 $176,400
10% 20,800 23,300 25,800
5% 10,400 11,650
4% 8,320
Total collections $166,400 $207,200 $240,100 $222,170
Thus, cash collections in October alone are $222,310 while for the fourth quarter based on fourth quarter credit sales only are $835,870.
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For any economy, the "scarcity" problem simply means that the available free resources are "not enough" to produce all goods and services required to satisfy the unlimited human wants.
a. True
b. False
Answer:
Your correct answer for this is False.
Explanation:
There is no way that it could possibly be True.
Suppose you are Coca-Cola and you are competing with Pepsi-Cola. Both of you would make more money if you advertised less - but you find yourself in a repeated prisoner's dilemma where you both are deciding to advertise. How would you prefer to deal with your competitor
Available Options Are:
A. Be nice and don't advertise first.
B. If your competitor advertises do not escalate the situation, but do match their move
C. Wait to respond to your competitors actions.
D. Make sure your actions are clear to your competitor.
E. All of the above except 'c'.
Answer:
Option C. Wait to respond to your competitors actions.
Explanation:
The best way to respond to our customer would be by to wait to respond to Pesi-cola's actions. By doing so, we have option to take best advantage out of the position. Furthermore, it is in the best interest of both competitors to increase the revenue by not sepending huge amounts on advertising products. And this is only possible if both Coca-cola and Pepsi-cola not investing in marketing products. So the only option here that gicves this option is Statement C.
It can also help to design better strategy to take advantage of the competitor's strategy.
Assume that the parent company acquires its subsidiary by exchanging 55,000 shares of its Common Stock, with a market value on the acquisition date of $40 per share, for all of the outstanding voting shares of the investee. In its analysis of the investee company, the parent values all of the subsidiary's assets and liabilities at an amount equaling their book values except for a building that it feels is undervalued by $500,000, an unrecorded License Agreement that the parent values at $250,000, and an unrecorded Customer List owned by the subsidiary that the parent values at $100,000.
Any further discrepancy between the purchase price and the book value of the subsidiary's Stockholders' Equity is attributed to expected synergies to be realized by the consolidated company as a result of the acquisition.
Given the following acquisition-date balance sheets of the parent and subsidiary, at what amounts will each of the following be reported on the consolidated balance sheet?
Balance Sheet
Parent Subsidiary
Assets
Cash $910,500 $201,600
Accounts receivable 384,000 417,600
Inventory 582,000 536,400
Equity investment 2,200,000
Property, plant and equipment (PPE), net 2,799,600 992,400
$6,876,100 $2,148,000
Liabilities and stockholders' equity
Accounts payable $188,100 $127,000
Accrued liabilities 220,800 221,000
Long-term liabilities 1,000,000 600,000
Common stock 220,000 120,000
APIC 3,740,000 150,000
Retained earnings 1,507,200 930,000
$6,876,100 $2,148,000
Answer:
Consolidated Balance Sheet:
Balance Sheet
Parent Subsidiary Consolidated
Assets
Cash $910,500 $201,600 $1,112,100
Accounts receivable 384,000 417,600 801,600
Inventory 582,000 536,400 1,118,400
Equity investment 2,200,000 0
Property, plant and
equipment (PPE), net 2,799,600 1,492,400 4,292,000
License Agreement 250,000 250,000
Customer List 100,000 100,000
Goodwill 1,000,000
Total Assets $6,876,100 $2,998,000 $8,674,100
Liabilities & stockholders' equity
Accounts payable $188,100 $127,000 315,100
Accrued liabilities 220,800 221,000 441,800
Long-term liabilities 1,000,000 600,000 1,600,000
Unrealized gain from fair value:
Building 500,000 500,000
License Agreement 250,000 250,000
Customer List 100,000 100,000
Common stock 220,000 120,000 220,000
APIC 3,740,000 150,000 3,740,000
Retained earnings 1,507,200 930,000 1,507,200
Total liabilities and equity $6,876,100 $2,998,000 $8,674,100
Explanation:
a) Data:
Balance Sheet
Parent Subsidiary
Assets
Cash $910,500 $201,600
Accounts receivable 384,000 417,600
Inventory 582,000 536,400
Equity investment 2,200,000
Property, plant and
equipment (PPE), net 2,799,600 992,400
Total Assets $6,876,100 $2,148,000
Liabilities & stockholders' equity
Accounts payable $188,100 $127,000
Accrued liabilities 220,800 221,000
Long-term liabilities 1,000,000 600,000
Common stock 220,000 120,000
APIC 3,740,000 150,000
Retained earnings 1,507,200 930,000
Total liabilities and equity $6,876,100 $2,148,000
b) For the consolidated balance sheet, the assets and liabilities of the parent and subsidiary are consolidated based on their fair values. The investment in the subsidiary is eliminated. If the assets increased in their fair values, unrealized gains on fair values are created for the revalued assets. On the equity side, the subsidiary's equity is eliminated. Any difference is attributed to Goodwill on acquisition.
All of the following are normally found in a corporation's stockholders' equity section, exceptAll of the following are normally found in a corporation's stockholders' equity section, except a. Paid-in-capital in excess of par b. Unearned Rent c. Retained Earnings d. Common Stock
Answer:
b. Unearned Rent
Explanation:
Shareholders Equity is the residual amount of Assets after deducting the Liabilities.
The Unearned Rent is a Liability and is not found in the Shareholders Equity Section.
Liabilities are Present obligations of an entity that arise as a result of past events, the settlement of which will result in out flow of economic benefits from the entity.
Which of the following determine(s) the level of real interest rates? I) The supply of savings by households and business firms II) The demand for investment funds III) The government's net supply and/or demand for funds
Answer:
I II & III - All of the above.
Explanation:
Real interest rate is an interest rate that shows actual cost of funds to a borrower having taken into consideration the effects of inflation while also reflecting actual gain to the lender. It shows how purchasing power has value on interest paid on a loan.
With regards to the above, determinants of real interest rates are; the supply of savings by household and business firms, the demand for investment funds and the government's net supply/and or demand for funds.
Which of the following statements are true?
A. Different companies will use different charts of accounts based on individual company need.
B. The chart of accounts contains the balance of all the accounts in the ledger.
C. The general ledger contains all of the accounts that a company uses, along with detail of the balances in those accounts.
D. The general ledger and the chart of accounts can be ordered in any sequence because they are not formal financial systems.
Answer:
TRUE: A. Different companies will use different charts of accounts based on individual company need.
C. The general ledger contains all of the accounts that a company uses, along with detail of the balances in those accounts.
Explanation:
A. Different companies will use different charts of accounts based on individual company need.
A chart of accounts is the combination of all the accounts of an organization in an organized and structured model whose objective is to establish a codification so that there is a standardization of the company's financial information to assist the work of the accounting sector.
Therefore, each company will have a model chart of accounts referring to its activities and processes.
C. The general ledger contains all of the accounts that a company uses, along with detail of the balances in those accounts.
The general ledger can be defined as the set of all accounts held in the organization in detail.
Through the information in the accounts, the organization is able to correctly separate each one by type and carry out the organizational financial statement.
Darth Company sells three products. Sales and contribution margin ratios for the three products follow: Given these data, the contribution margin ratio for the company as a whole would be:
Answer: A. 25%
Explanation:
The Contribution margin for the whole company = [tex]\frac{Total Contribution Margin Amounts}{Total Sales}[/tex]
Total Contribution Margin = (0.45 * 25,000) + (0.4 * 40,000) + ( 0.15 * 100,000)
= 9,000+16,000+15,000
= $40,000
Total Sales = 20,000+40,000+100,000
= $160,000
Contribution Margin for the whole Company = [tex]\frac{40,000}{160,000}[/tex]
= 25%
Operations management is the discipline that manages the day-to-day and tactical activity of the entire value added chain, which includes the supply chain, the transformation process, the distribution chain and the point of sale to the customer.
a) true
b) false
Answer:
Operations Management:
a) true
Explanation:
Operations management ensures that the organization achieves its objectives by coordinating processes and executing them in the conversion of organizational resources into goods and services which will enable the organization to maximize profits. It is the core of the organizational hierarchy and plays important tactical roles that deliver results. It translates the strategic policies of top management into day-to-day actionable and deliverable processes to meet external needs (customers'), thereby generating income for the owners of the business. Without operations management, a business remains an idea that cannot be implemented.
Use linear approximation to estimate the amount of paint in cubic centimeters needed to apply a coat of paint 0.07 cm thick to a hemispherical dome with a diameter of 30 meters.
Answer:
dv= 989100cm^3
Explanation:
The volume of a sphere can be calculated using below formula
Volume of a sphere = 4/3 π r^3
Therefore, for a hemisphere, V= 2/3 pi r^3
V=(4/3)πr³
V= 2/3πr³
dV/dr=4πr²
Then we need to pproximate dV/dr with
ΔV/Δr then we have
Volume of hemispherical some is one half of the the volume of a sphere where dr is change in radius, dv is change in volume
dV/dr=2πr²
Take the derivative of V with respect to r then we have
dV=2πr²dr
where
Radius = diameter/2
Our diameter is 30cm then
r=30m/2 = 15cm
Then we convert to cm we have
r= 1500cm
dv= 2×π ×(1500)^2 × 0.07
dv= 989100cm^3
the amount of paint in cubic centimeters needed to apply a coat of paint 0.07 cm thick to a hemispherical dome with a diameter of 30 meters is
989100cm^3
Using a linear approximation to estimate the amount of paint in cubic centimeters needed to apply a coat of paint 0.07 cm thick to a hemispherical dome with a diameter of 30 meters will be: 989,601.69 cubic centimeters
Volume of a sphere = 4/3 πr^3
Hemisphere:
V= 2/3 πr^3
dV = 2πr^2 dr
Where:
dr=0.07cm
r=(1/2)×30m=1500cm
Let plug in the formula
dV = 2×π×(1500^2)×(.07)
dV=989,601.69 cubic centimeters
Inconclusion using a linear approximation to estimate the amount of paint in cubic centimeters needed to apply a coat of paint 0.07 cm thick to a hemispherical dome with a diameter of 30 meters will be: 989,601.69 cubic centimeters
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Draw a curve that shows the relationship between the tax rate and the amount of tax revenue collected. The relationship between the tax rate and the amount of tax revenue collected is called the ______ curve. This curve shows that ______.
Answer:
Laffer curve.
Explanation:
Laffer Curve is developed by
Arthur Laffer. It is used to show the relationship between tax rates and the amount of tax revenue collected by governments of a particular country. Laffer curve is used to demonstrate Laffer’s argument that sometimes cutting tax rates can increase total tax revenue.
Laffer curve shows the relationship that occurs between the tax rate and the amount of tax revenue collected
The relationship between the tax rate and the amount of tax revenue collected is called the LAFFER CURVE curve. This curve shows that TAX CUT CAN INCREASE TAX REVENUE.
The drawing of a laffer curve has been attached
An online-only bank currently offers a 7-year CD (certificate of deposit) paying simple interest rate of 4% per quarter. If you want to get $4,240 from this CD 7 years later, how much do you have to purchase today?
Answer:
The answer is $1,413.94
Explanation:
Number of periods(N) = 28 periods (7 years x 4 quarters)
Interest rate(I/Y) = 4% per quarter. Therefore, interest rate per year is 16% per year(4% x 4 quarters)
Future value(FV) = $4,240
Present Value (PV) = ?
Let's use a financial calculator:
N = 28; I/Y = 4, FV = 4,240; CPT PV= -1,413.94
Therefore, the present value is $1,413.94
Patton has acquired several other companies. Assume that Patton purchased Kate for $ 6 comma 000 comma 000 cash. The book value of Kate's assets is $ 15 comma 000 comma 000 (market value, $ 17 comma 000 comma 000 ), and it has liabilities of $ 13 comma 000 comma 000 (market value, $ 13 comma 000 comma 000 ). Requirements 1. Compute the cost of goodwill purchased by Patton . 2. Record the purchase of Kate by Patton .
Answer:
1. $2,000,000
2. Accounting Entry
Assets $17,000,000 (debit)
Goodwill $2,000,000 (debit)
Liabilities $13,000,000 (credit)
Investment in Kate $6,000,000 (credit)
Explanation:
The Acquisition of Kate must be done at the fair value of Assets and Liabilities at the acquisition date instead of book values.
Goodwill is the excess of the Purchases Price over the Net Identifiable assets acquired.
Calculation of Goodwill :
Purchase Price $6,000,000
Less Net Identifiable Assets
Assets at Fair Value $17,000,000
Less Liabilities at Fair Value ($13,000,000) ($4,000,000)
Goodwill $2,000,000
Accounting Entry
Assets $17,000,000 (debit)
Goodwill $2,000,000 (debit)
Liabilities $13,000,000 (credit)
Investment in Kate $6,000,000 (credit)
Scenario: Home Monopolist) A monopolist faces a demand curve given by P = 60 2Q and has total costs given by TC = Q2. Its marginal revenue is MR = 60 4Q and its marginal cost is MC = 2Q. Compared with the no-trade equilibrium, consumer surplus ___________ when the monopolist engages in free trade.
Answer:
2Q
Explanation:
Economy equilibrium is where MC = MR.
Marginal cost equals marginal return when the supply and demand is linear. Consumer surplus is the additional amount that a consumer is willing to pay for the goods and services. Here MC = 2Q and MR = 60 + 4Q. Here consumer is paying 2Q additional in the equation of marginal return.
Power and influence (Connect, Perform)
Complete the following sentences with the correct term.
1. When a manager uses relationships and formal authority to cause other people in the organization to change their behavior, the manager _______.
2. The homeroom teacher has ______ because she can choose to give the best-behaving students passes to the school library, which students find a more pleasant place to study than the classroom.
3. Management at Work As the training and development manager at the Anderson Windows and Doors Company, part of your job involves helping managers learn to become better leaders. You are thinking about starting a class titled "Power and Influence for Managers," and you’ve been gathering some examples to use during the training session. Select which type of power the manager is using in the following example.
Example--- Type of Power Used Jeffrey has 20 years of management experience, and he can answer any question. Because Jeffrey is one of the most knowledgeable managers in the company, people naturally follow his advice when making complicated decisions. In reviewing research on power, you discover that there are three other common sources of power in organizations.
Which of the following are included in that list? Check all that apply.
A. Network of relationships
B. Personal effort
C. Locus of control
D. Information
4. Select the type of influence principle that best describes each of the following examples.
Example- Type of Influence Principle. A real estate agent gets new clients by being known as a "good guy" whose clients trust and respect him. A parent smiles at a child whenever the child is being quiet. In turn, the child is quiet more often. When discussing influence tactics with your managers, you should tell them that:
A. The best managers use a variety of influence tactics
B. The best managers avoid the use of influence tactics
C. The best managers use hard tactics, such as asking for what they want and using rational persuasion
D. The best managers use soft tactics, such as making people like them and developing allies
Answer:
1. Is exercising influence.
2. Reward power.
3a. Referent power.
3b. A, B and D.
4a. Make people like you.
4b. Reward the behaviors you want.
5. A. The best managers use a variety of influence tactics.
Explanation:
1. When a manager uses relationships and formal authority to cause other people in the organization to change their behavior, the manager is exercising influence.
2. The homeroom teacher has reward power because she can choose to give the best-behaving students passes to the school library, which students find a more pleasant place to study than the classroom.
3a. Jeffrey has 20 years of management experience, and he can answer any question. Because Jeffrey is one of the most knowledgeable managers in the company, people naturally follow his advice when making complicated decisions. The type of power used by Jeffrey is referent power.
3b. The three (3) common sources of power are;
I. Network of relationships.
II. Personal effort.
III. Information.
4a. A real estate agent gets new clients by being known as a "good guy" whose clients trust and respect him. The type of influence principle here is, make people like you because he is termed a "good guy" meaning he his trustworthy, respectful and nice. Hence, people would like his personality and by extension be his clients.
4b. A parent smiles at a child whenever the child is being quiet. In turn, the child is quiet more often. The type of influence principle used here is, reward the behaviors you want because the parent is happy that the child isn't crying or disturbing. Therefore, to reinforce the child's quietness; the parent smiles at the child.
5. When discussing influence tactics with your managers, you should tell them that: the best managers use a variety of influence tactics. In order to be able to lead your subordinates effectively, efficiently and successfully as a manager, you will have to know how and when to use a variety of influence tactics such as rational persuasion, consultation, ingratiation, legitimating, pressure, personal appeals, coalitions, exchange and inspirational appeals depending on the context or situation.
Hence, the more tactics you have as a manager, the higher your chances of achieving your influence goals.
A municipal revenue bond trust indenture includes an "additional bonds test" covenant. This prohibits the issuer from doing all the following EXCEPT:_________.
A. issuing parity bonds unless the facility's revenues are sufficient to pay for existing and proposed debt
B. issuing senior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt
C. issuing junior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt
D. issuing bonds with the same lien on pledged revenues unless the facility's revenues are sufficient to pay for existing and proposed debt
Answer:
C. issuing junior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt
Explanation:
A municipal revenue bond trust indenture includes an "additional bonds test" covenant. This prohibits the issuer from doing all the following;
1. issuing parity bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.
2. issuing senior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.
3. issuing bonds with the same lien on pledged revenues unless the facility's revenues are sufficient to pay for existing and proposed debt
On the other hand, it allows issuing junior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.
An additional bonds test ultimately implies that the issuer is prohibited or restricted from the issuance of new bonds against the revenues of any other firm having same parity lien against pledged revenues, except it has sufficient funds (revenues) to do so.
Generally, in bond transactions, prohibition are made for selling debt having a senior claim when compared to that of the old (existing) bondholders such as creditors or investors.
Gonyo Inc., which produces and sells a single product, has provided the following contribution format income statement for December appears below:
Sales (5,000 units) $ 330,000
Variable expenses 175,000
Contribution margin 155,000
Fixed expenses 104,900
Net operating income $50,100
Required:
Redo the company's contribution format income statement assuming that the company sells 5,200 units.
Net Operating Income _______.
Answer:
Net income= 56,300
Explanation:
Giving the following information:
Fixed expenses 104,900
First, we need to determine unitary values:
Selling price= 330,000/5,000= $66
Unitary variable expenses= 175,000/5,000= $35
Now, we can redo the contribution margin income statement for 5,200 units:
Sales= 66*5,200= 343,200
Total variable cost= 35*5,200= (182,000)
Total contribution margin= 161,200
Fixed costs= (104,900)
Net income= 56,300
Nathan works for a major automobile manufacturing company. His company is being sued by hundreds of customers who have been injured when the steering wheel airbags exploded upon a low-impact collision. The customers are demanding monetary damages. This lawsuit is based on
Answer:
Product liability, is the right answer.
Explanation:
The liability of a manufacturer or seller for handing over a defective commodity into the hands of the consumers is known as the product liability. The responsibility for handing over the defective product that causes injuries lies with the retailers of the product who are a part of the distribution chain. The law requires that the good sold to the consumer meets the ordinary expectations of the consumer. If the consumer's ordinary expectations aren't met due to an unexpected defect or danger, the consumer may ask for monetary damages.
Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Teller has 3,900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory.
Required:
What is the total amount to be budgeted for manufacturing overhead for the month?
Answer:
Budgeted overhead= $2,877.6
Explanation:
Giving the following information:
Direct labor required:
Production= 870 units
Direct labor hours= 870*0.25= 218 hours
Direct labor cost= $12 an hour
Manufacturing overhead is applied at a rate of 110% of direct labor costs.
To calculate the allocated overhead for the period, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Direct labor cost= 218*12= $2,616
Allocated MOH= 1.1*2,616= $2,877.6
The petty cash fund has a current balance of $ 350, which is the established fund balance. Based on activity in the fund, it is determined that the balance needs to be changed to $ 550. Which journal entry is needed to make this change?
A. No journal entry is needed because this change only involves cash.
B. Debit the Petty Cash account and credit the Cash account for $200.
C. Debit the Cash account and credit the Petty Cash account for $200.
D. Debit the Petty Cash account and credit the Cash account for $550.
Answer:
i think the answer is B. Debit the Petty Cash account and credit the Cash account for $200.
Explanation:
In case of resale of goods arising out of a breach of contract, if the seller sets aside goods intended for the contract or completes the manufacture of such goods, he is:
Answer:
not obligated to resell the goods to other buyers
Explanation:
In the course of selling goods, a breach of contract could arise either on the part of the seller or buyer. When this occurs, there are options that the two parties could consider. For a seller who suffers a breach of contract after the completion of the manufacture of goods, he has several actions which he could take. One of them is the resale of these goods to another buyer and sue the buyer for losses that were incurred during the manufacturing process.
However, it is not compulsory that he resells the goods to other buyers. He could also decide to retain the goods until the goods are paid for by the buyer. Another option is to stop the goods if they are already in transit.
If each of two competing monopolists undertakes equal advertising efforts to attract consumers away from the other, the total result is Group of answer choices
Complete Question:
If each of two competing monopolists undertakes equal advertising efforts to attract consumers away from the other, the total result is
Group of answer choices:
A. they will both increase market share.
B. they will simply neutralize one another's efforts.
C. they will both lose market share.
D. they will both improve their industrial position.
Answer:
B. they will simply neutralize one another's efforts.
Explanation:
If each of two competing monopolists undertakes equal advertising efforts to attract consumers away from the other, the total result is they will simply neutralize one another's efforts.
A monopolist can be defined as an individual who is engaged in selling a unique product in a market without any competitor. Also, a monopolistic competition involves various firms engaged in monopoly competes with one other, but selling products that are unique and distinct from the other.
Hence, when two competing monopolists undertakes equal advertising efforts to attract consumers away from the other, this would result in one monopolist effort canceling or nullifying the effort of the other. This simply means that, it would have been as though none of them had made any effort at all because they were both involved in doing the same thing. Thus, making the market the same as it were originally prior to their advertising efforts.
Use the information in the chart to calculate the real exchange rate between the U.S. dollar and the Indian rupee. Round to the nearest whole number. 2014 2015 2016 rupees/dollar 57 62 72 U.S. price index 99.5 100.1 101.1 Indian price index 108 117 128 What was the real exchange rate in 2014
Answer: 52.51 rupees/dollar
Explanation:
The real exchange rate attempts to account inflation in the countries being compared by using prices in the exchange rate.
The formula for calculating it is;
Real exchange rate = Nominal exchange rate *(Price index of domestic country/Price index of foreign country)
Real exchange rate in 2014 = 57*(99.5/108)
= 52.51 rupees/dollar