Answer:
A
Explanation:
Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
the systemic risk of portfolio A = 1
systemic risk of portfolio B = (proportion of Gourmet Restaurant's stock x beta of Gourmet Restaurant's stock) + (proportion of Suppertime Restaurant's stock x beta of Suppertime Restaurant's stock)
([tex]\frac{500}{1500}[/tex] × 0.6) + ([tex]\frac{1000}{1500}[/tex] × 1.4) = 0.2 + 0.9 = 1.1
Portfolio B has a higher beta and thus a higher systemic risk than Portfolio A
Non systemic risk are risks that can be diversified away. they are also called company specific risk. Examples of this type of risk is a manager engaging in fraudulent activities.
Portfolio A is more diversified than portfolio B. Thus, Portfolio B has a higher non-systemic risk
You sold two EUR futures contract at the closing price on 3/01. Each EUR futures contract requires the delivery of EUR125,000. Suppose, the initial and maintenance margin for each EUR futures contract are $1,500 and $1,000, respectively. Assume that you do not withdraw from your margin account during this period, but that you do meet your margin calls if you get any
Date 3/01 3/02 3/03 3/04
EUR Spot Price $1.3579 $1.3527 $1.3588 $1.3580
July EUR Futures Contract Price $1.3750 $1.3782 $1.3827 $1.3713
The profit / loss posted to your account at the close of 3/02 is ______
Answer:
What
Explanation:
ack purchased 200 shares of Apple stock earlier this month at the price of $210 per share. Apple stock is trading at $218 today and will pay a dividend of $2/share with tomorrow being the ex-date. Jack faces an ordinary income tax rate of 35% and a capital gain tax rate of 18.8%. How much unrealized capital gains will he have after the dividend payment
Answer:
The amount of unrealized capital gains he will have after the dividend payment is $1,200.
Explanation:
Apple stock price per share today = $218
Dividend per share = $2
Apple stock ex-date price per share = Apple stock price per share today - Dividend per share = $218 - $2 = $216
Unrealized capital gains = Number of Apple stock shares purchased * (Apple stock ex-date price per share - Price per share at which Apple stock shares were purchased) = 200 * ($216 - $210) = 200 * $6 = $1,200
Therefore, the amount of unrealized capital gains he will have after the dividend payment is $1,200.
In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in your analysis.
Recall the components that makeup GDP. National income (Y) equals total expenditure on the economy's output of goods and services. Thus, where C= consumption, I= investment, G =government purchases, X=exports, M =imports, and NX= net exports.
Y= _____
Also, national saving is the income of the nation that is left after paying for _____. Therefore, national saving (S) equals:
S=_____
Rearranging the previous equation and solving for Y yields, Y= _____ Plugging this into the original equation showing the various components of GDP results in the following relationship:
S=_____
Answer:
Y = C + I + G + NX
S = Y - C
S = I + G + NX
Explanation:
National Income Y = C + I + G + NX ; {where consumption, investment, government purchases, net exports ie exports - imports are corresponding expenditure of households, firms, government, rest of the world}
National Saving (S) is income (Y) left after paying for consumption (C) . So, S = Y - C
Using above equations, Y = C + S , Y = C + I + G + NX
C + S = C + I + G + NX
So, S = I + G + NX
Why wages differ
For each of the scenarios in the following table, indicate the most likely reason for the difference in earnings.
Scenario
Differences in Human Capital
Compensating Differential
Differences in Natural Ability
Labor Unions
An economics consulting firm hires Rina, a recent PhD graduate in economics, and pays her an annual wage of $76,000. It also hires Bob, a recent master's degree graduate in economics, and pays him an annual wage of $64,000.
Major league baseball pitchers earn more than minor league baseball pitchers.
Two automotive technicians have the same amount of schooling and work experience, but earn different wages. The first works the day shift for an auto manufacturer factory for an annual wage of $53,000 per year, and the second works the night shift for the same company for an annual wage of $64,000 per year.
Answer:
Scenario Differences In Human Capital Compensating Differential Differences In Natural Ability Labor Unions An Economics Consulting Firm Hires Rina, A Recent PhD Graduate In Economics, And Pays Her An ... For each of the scenarios in the following table, indicate the most likely reason for the difference in earnings.
Explanation:
Answer:
hehaba
Explanation:
The controller of Carla Vista Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs.
Total Electricity Costs Total Machine Hours
January $2,650 200
February 3,100 320
March 3,570 450
April 4,750 695
May 3,160 500
June 4,910 750
July 4,130 630
August 3,810 580
September 5,060 680
October 4,390 610
November 3,290 320
December 8,920 770
(a) Determine the fixed and variable cost components using the high-low method.
(b) What electricity cost does the cost equation estimate for a level of activity of 450 machine hours?
(c) What electricity cost does the cost equation estimate for a level of activity of 750 machine hours?
Answer:
Results are below.
Explanation:
Giving the following information:
January $2,650 200
February 3,100 320
March 3,570 450
April 4,750 695
May 3,160 500
June 4,910 750
July 4,130 630
August 3,810 580
September 5,060 680
October 4,390 610
November 3,290 320
December 8,920 770
To calculate the variable and fixed components using the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (8,920 - 2,650) / (770 - 200)
Variable cost per unit= $11
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 8,920 - (11*770)
Fixed costs= $450
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 2,650 - (11*200)
Fixed costs= $450
Now, the total cost if the machine hours equals 450:
Total cost= 11*450 + 450= $5,400
Finally, 750 hours:
Total cost= 11*750 + 450= $8,700
Journalize the following transactions, using the allowance method of accounting for uncollectible receivables
Mar. 17: Received $2,700 from Keith MacPhearson and wrote off the remainder owed of $6,370 as uncollectible.
Mar. 17 July 29: Reinstated the account of Keith MacPhearson and received $6,370 cash in full payment.
Answer:
Journal entry
Date Account & Explanation Debit Credit
Mar 17. Cash $2,700
Allowance for doubtful accounts $6370
Account receivable $9,070
Jul 29 Account receivable $6,370
Allowance for doubtful accounts $6,370
(To record amount reinstated)
Cash $6,370
Account receivable $6,370
(To record amount received)
Select the correct answer from each drop-down menu.
What techniques can you use to control inventory costs?
(economic order, Just in time, Carrying) ______ quantity indicates the minimum quantity of goods to reach before reordering inventory.
(Reliable Stock, Safety Stock, Scheduled Stock) _____ is the quantity of goods to keep as a buffer to utilize in times of emergency.
Answer:
First one: Economic Order; Second One: Safety Stock
Explanation:
I know the second one's right because it frequently shows up on PLATO modules for business. The first one is economic order according to investopedia.com. I looked up both carrying quantity and just in time quantity, too-- it seems as carrying quantity isn't a thing, and just in time quantity focuses on decreasing waste. See my comments on your question for quotes from the source.
Hope this helps you!!
Which are pathways in the Marketing, Sales, and Service career cluster? Select all that apply.
Marketing Information Management and Research
Marketing Communications and Promotion
Professional Sales and Marketing
Buying and Merchandising
Distribution and Logistics
E-Marketing
Management and Entrepreneurship
Software Design and Distribution
Answer:
All these apply
Marketing Information Management and Research
Marketing Communications and Promotion
Professional Sales and Marketing
Distribution and Logistics
E-Marketing
Explanation
Explanation:
All of the above mentioned choices fall in the pathways that come in the fields of Sales and Marketing. Marketing research is an important arena and so is the art of communicating and carrying out promotion tasks. Distribution is another big arena of sales and so is the trending field of E-Commerce where all these tools can be carried out online.
Marketing Information Management and Research, Marketing Communications and Promotion, Professional Sales and Marketing, Distribution and Logistics and E-Marketing.
What is E-Marketing?E-marketing, also known as digital marketing or online marketing, refers to the use of digital channels, such as the internet, social media, email, and mobile devices, to promote products or services and to engage with customers and prospects.
E-marketing provides businesses with a cost-effective way to reach a large audience and to engage with customers in real-time. Some of the most common e-marketing tactics include search engine optimization (SEO), pay-per-click (PPC) advertising, content marketing, social media marketing, email marketing, and mobile marketing.
Overall, e-marketing has become an essential component of modern marketing strategies as it provides businesses with a powerful way to reach and engage with customers in an increasingly digital world.
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has a standard of 2 direct labor hours per unit. The standard wage rate of each worker is $32.50 per hour. In July, the company produced 4,770 units and paid workers $190,000 for a total of 8,940 direct labor hours. Compute the direct labor efficiency variance.
Answer:
$130 Favourable
Explanation:
Given the above information,
Standard hours = 2 × 4770 = 9,540
Actual hours = 8,940
Standard rate = $32.50
Then, Direct labor efficiency variance is computed as
= ( Standard hours allowed for production - Actual hours taken) × Standard rate per direct labor hour
= [(2 × 4,770) - 8,940] × $32.50
= [9,540 - 8,940] × $32.50
= 600 × $32.50
= $130 Favourable
Maestro Inc has a $1,000, 6% coupon bond with interest payable semiannually and a remaining term of 20 years. The market yield on similar bonds is 10%. What percentage of face value is the bond selling for today
Answer:
65.682%
Explanation:
The computation of the percentage is shown below;
But before that first determine the present value i.e.
Given that
Future value = $1,000
PMT = $1,000 × 6% ÷ 2 = $30
RTAE = 10% ÷ 2 = 5%
NPER = 20 × 2= 40
the formula is shown below;
= -PV(RATE,NPER,PMT,FV,TYPE)
After applying the above formula, the present value is $656.82
Now the percentage is
= $656.82 ÷ $1,000
= 65.682%
please help me out with this problem
Answer: organizing
Explanation:
Which best describes the future growth potential of the Marketing, Sales, and Service career cluster?
Growth is expected to decline.
Growth is expected to grow less quickly than average.
Growth is expected to be about average.
Growth is expected to grow much more quickly than average.
Answer:
I believe your answer is D
Explanation:
Growth is expected to grow much more quickly than average is best describes the future growth potential of the Marketing, Sales, and Service career cluster. Hence, option D is correct.
What is growth potential marketing?The development of new product lines, the use of more effective marketing strategies, or other strategies that transform a company from a specialized market to a greater volume operation can all be used to determine an organization's potential for growth.
The pace of growth that an economy may sustain over the medium term without experiencing excessive inflation is known as potential growth. The advanced countries' potential growth has decreased in recent decades as a result of slower increases in the labor force, capital stock, and productivity.
From technical-based marketing to anticipation marketing, there will be a mental shift. This will allow marketers to foresee what consumers will want and then incorporate that information into automation processes. This fresh perspective will now only improve productivity.
Thus, option D is correct.
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Skip and Trace decide to start a business. They sign a partnership agreement providing that Skip will contribute $6,000 toward the necessary $10,000 in start-up capital and Trace will contribute $4,000. If the agreement is silent as to management and profits, Skip should receive:
Answer: 50% of the profit and share equal management.
Explanation:
Since the agreement is silent as to management and profits, Skip should receive 50% of the profit and share equal management.
It should be noted that when profit sharing and the management related isn't defined, profits and management will be divided equally among the partners. Therefore, in this case, profit will be shared equally.
A customer has requested that Lewelling Corporation fill a special order for 2,200 units of product S47 for $38 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $16.90:
Direct materials $ 4.60
Direct labor $ 4.00
Variable manufacturing overhead $ 1.70
Fixed manufacturing overhead $ 6.60
Unit product cost $ 16.90
Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product S47 that would increase the variable costs by $1.90 per unit and that would require an investment of $16,000.00 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:_________
a) $40,760
b) ($15,700)
c) $16,200
d) ($2,000)
What is the answer i been trying this whole time.If you get it i'll give you 30 point honestly......
Answer:
GBGGPGGGGRGGGGGPGGGWG
Explanation:
Green trees = G
Blue trees = B
Pink trees = P
Red trees = R
Purple trees = P
White trees = W
The 1-year, 2-year. 3-year,and 4-year risk-free zero rates are 4%, 4.5%, 4.75%, and 5% with continuous compounding. What is the forward rate for the one year period beginning in two years
Answer:
5.25%
Explanation:
Mathematically, investing at the 3-year risk-free zero rate should be the same as investing at a 2-year risk-free zero rate and one-year forward rate beginning in two years as shown thus
(1+S3)^3=(1+S2)^2*(1+y2y1)^1
S3=4.75%
S2=4.5%
y2y1=unknown
(1+4.75%)^3=(1+4.5%)^2*(1+y2y1)
1+y2y1=(1+4.75%)^3/(1+4.5%)^2
y2y1=((1+4.75%)^3/(1+4.5%)^2)-1
y2y1=5.25%
Roger must create a feasibility study to see how the money from the investor could be spent to best enhance the business's money-making potential. He knows there are several things that should go in the plan, but some are unnecessary. Which of the following does NOT belong in the feasibility study?
Answer: quality plan
Explanation:
A feasibility study is used to know if a project is feasible and therefore worth undertaking or not. It is an analysis that takes into consideration of all the factors that are relevant to the project into account. These factors include the technical, economic, legal, political factors etc in order to ascertain if the project will be successful.
The option that doesn't belong in the feasibility study is the quality plan. This isn't part of the feasibility study and therefore is the correct option. Other options belong in the feasibility study.
Quality plan: A feasibility study is used to know if a project is possible and therefore worth undertaking or not.
Who is Investor
It is an analysis that takes into consideration all the elements that are relevant to the project into account. These characteristics include the technical, economic, legal, political factors, etc. to ascertain if the assignment will be successful.
When The option that doesn't belong in the feasibility study is the quality plan. This isn't part of the feasibility study and therefore is the correct option. Other choices belong in the feasibility study.
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a 12- year bond with a par value of 1,000 and interest rate of 12 percent interst (6percent semiannyally). The current maret price of the bond is $700. This bonds expected rate of return will be g
Answer:
18.34 %
Explanation:
Bond holders usually expect to receive a rate that is offered on the market for similar bonds. this rate is the same as the Bond Yield and can be determined using financial calculator as follows ;
PV = - $700
FV = 1,000
N = 12
PMT = 1,000 x 12 % = $120
P/YR = 1
I/YR = ??
Inputting the values in the financial calculator as set above gives a required rate (I/YR ) for similar bonds of 18.34 %
A firm that uses a functional structure will typically have efficient top-down and bottom-up communication, but Group of answer choices dual reporting relationships typically blur lines of authority. the top management team may fail in their coordination and control efforts of functional-level employees. communication may be hampered among the horizontal, distinct organizational functions. career paths and professional development are limited.
Answer:
communication may be hampered among the horizontal, distinct organizational functions.
Explanation:
In the case when the firm want to use the functional structure that contains top-down, bottom -up communication but the communication might be hampered between the horizontal and different organizational functions as the functional areas would permit the top-down and bottom-up communication but not the horizontal and cross functional communication
Therefore the above shows the answer
A functional structure categorizes the department of the company based on the expertise area. It may hamper communication between administrative positions.
What is Functional structure?In a company, various teams and departments are established based on their roles and expertise. The functional organization establishes those departments to work as a functional unit.
This allows the increased efficiency, growth, and flexibility. The operational speed and clarity become high and productivity increases.
On the other hand, the functional structure of an organization can be disadvantageous as it can lead to segregation, territorial disputes, lack of coordination, misunderstanding, and hampered communication.
Therefore, option C. communication can be hampered by functional structure.
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To improve your odds of winning, it is recommended that you play a blackjack b slot machines c roulette d powerball
Answer:
a blackjack
hope this helps
have a good day :)
Explanation:
Company Z is just starting to make a brand new product it has never made before. It has completed two units so far. The first unit took 19 hours to complete and the next unit took 15 hours. Based only on this information, what would be the estimate of the learning percentage in this process
Answer:
the learning percentage is 78.95%
Explanation:
The computation of the learning percentage is shown below;
= The next unit ÷ first unit
= 15 hours ÷ 19 hours
= 78.95%
We simply divided the two items with each other so that the correct percentage could arrive
hence, the learning percentage is 78.95%
When applying for the FAFSA, which of the following is not true?
Answer:
it provides early admission
Explanation:
thats my answer
When applying for FAFSA, the following is not true : The earliest one can apply and submit for FAFSA is January 1st of each year.
FAFSAFAFSA stands for Free Application for Federal Students Aid.
FAFSA is financial aid eligibility form for the students of United States of America. The FAFSA provides aids such as federal grants, loans, federal students aid, etc. to the college students.
The earliest one can submit for FAFSA is 1st of October every year.
FAFSA can be filled online or on paper.
Both dependent and independent students can fill for FAFSA.
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a manufacturing company has a beginning finished goods inventory of 15,100, raw material purchases of 18,500, cost of goods manufactured of 33,500 and an ending finished goods inventory of 18,300. the cost of goods sold for this company is
Answer:
$30,300
Explanation:
cost of goods sold = opening inventory + cost of goods manufactured - closing inventory
= $15,100 + $33,500 - $18,300
= $30,300
The cost of goods sold for this company is $30,300
Indicate how each of the following transactions affects U.S. exports, imports, and net exports.
Effect On...
Transaction U.S. Exports U.S. Imports U.S. Net Exports
A French historian spends a semester touring
museums and historic battlefields in the United States.
Your parents go on a trip to Japan in late March
for the Cherry Blossom season.
Your auntie purchases a Panasonic camera.
The student bookstore at Yale University sells
books published by Cambridge University Press.
A European family goes to Disney World in
Florida for vacation.
Answer:
export import net export
1. increases unchanged increases
2. unchanged increases decreases
3. unchanged increases decreases
4. unchanged increases decreases
5. increases unchanged increases
Explanation:
export would comprise of goods and services produced in the US that are been sold to foreign countries
Import would comprise of foreign produced goods and services that are been sold in the US
Net export would increase when export occurs and decrease when import occurs
Net export = exports – imports
When the French historian visits the US museum and the European family visits Disney, they are enjoying US services, thus export increases and net export increases
The purchase of books from Cambridge in UK, Panasonic camera and the visit to Japan constitutes import. These increases import and reduces net export
One out of every ten jobs falls into the marketing category.
True
False
Answer:
true
Explanation:
one out of every ten jobs falls into the marketing category
Margaret Lindley paid $15,160 of interest on her $301,600 acquisition debt for her home (fair market value of $501,600), $4,160 of interest on her $30,160 home-equity debt, $1,160 of credit card interest, and $3,160 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,160 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year
Answer:
Margaret Lindley
Margaret Lindley can deduct $12,320 of the interest expense this year.
Explanation:
a) Data and Calculations:
Interest on $301,600 acquisition debt for her home = $15,160
Fair market value of home = $501,600
Interest on her $30,160 home-equity debt = $4,160
Credit card interest = $1,160
Margin interest expense = $3,160
Interest income received = $10,160
Deductible interest expense:
Interest on debt for her home = $15,160
Interest on home-equity debt = $4,160
Margin interest expense = $3,160
Interest income received = ($10,160)
Deductible interest expense = $12,320
b) Margaret cannot deduct her credit card interest because it is considered as a type of personal consumer finance interest. This type of interest expense is not tax-deductible.
If you have PhP 5,000.00, which of the following investment alternatives would provide the greatest ending wealth for your one-year investment?
7/10 percent compounded annually
7/10 percent compounded semi-annually
72/100 percent simple interest
7/10 percent compounded quarterly
NO FILES AND CHAIN MESSAGE OR ELSE I'LL REPORT YOUR ACCOUNT.
Answer:
7/10 percent compounded quarterly
Explanation:
The formula for calculating future value:
FV = P (1 + r/m)^mn
m = number of compounding
FV = Future value
P = Present value
R = interest rate
N = number of years
Simple interest = principal x time x interest rate
1. 5000 x (1.007) = 5035
2. 5000 x (1 + 0.007/2)^2 = 5035.06
5000 x (1 + 0.007/4)^4 = 5035.09
Petty Cash Fund Entries
Journalize the entries to record the following:
Check No. 12-375 is issued to establish a petty cash fund of $500.
The amount of cash in the petty cash fund is now $40. Check No. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $212; miscellaneous selling expense, $156; miscellaneous administrative expense, $61. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $500, record the discrepancy in the cash short and over account.)
Petty Cash Fund Entries
Journalize the entries to record the following:
Check No. 12-375 is issued to establish a petty cash fund of $500.
The amount of cash in the petty cash fund is now $40. Check No. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $212; miscellaneous selling expense, $156; miscellaneous administrative expense, $61. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $500, record the discrepancy in the cash short and over account.)
a. Journalize the entry to establish the petty cash fund. If an amount box does not require an entry, leave it blank.
b. Journalize the entry to replenish the petty cash fund. If an amount box does not require an entry, leave it blank.
Answer:
A. Dr Petty cash fund $500
Cr Cash $500
B. Dr Office supplies expenses $212
Dr miscellaneous selling expense $156
Dr miscellaneous administrative expense $61
Dr Cash short and over 31
Cr Petty cash fund $460
Dr Petty cash fund $460
Cr Cash $460
Explanation:
A. Preparation of the journal entry to establish the petty cash fund.
Dr Petty cash fund $500
Cr Cash $500
(To establish the petty cash fund)
B. Preparation of the journal entry to replenish the petty cash fund.
Dr Office supplies expenses $212
Dr miscellaneous selling expense $156
Dr miscellaneous administrative expense $61
Dr Cash short and over 31
($500-$212+$156+61+$40)
Cr Petty cash fund $460
($212+$156+$61+$31)
(To replenish the petty cash fund)
Dr Petty cash fund $460
($212+$156+$61+$31)
Cr Cash $460
July 1 Purchased merchandise from Boden Company for $6,200 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $517. 3 Paid $105 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,500 for $1,900 cash. 9 Purchased merchandise from Leight Co. for $2,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. 11 Returned $800 of merchandise purchased on July 9 from Leight Co., and debited its account payable for that amount. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 16 Paid the balance due to Boden Company within the discount period. 19 Sold merchandise that cost $1,200 to Art Co. for $1,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 21 Gave a price reduction (allowance) of $300 to Art Co. for merchandise sold on July 19, and credited Art's accounts receivable for that amount. 24 Paid Leight Co. the balance due, net of discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $5,000 to Creek Co. for $7,100 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
Prepare journal entries to record the following merchandising transactions of Blink Company, which applies the perpetual inventory system. (Round your answers to 2 decimal places.)
Answer:
July 1
Dr Merchandise Inventory$6,200
Cr Accounts Payable $6,200
July 2
Dr Accounts Receivable $900
Cr Sales $900
Dr Costs of Goods Sold $517
Cr Merchandise Inventory $517
July 3
Dr Merchandise Inventory $105
Cr Cash $105
July 8
Dr Cash $1,900
Cr Sales $1,900
Dr Cost of Goods Sold $1,500
Cr Merchandise Inventory $1,500
July 9
Dr Merchandise Inventory $2,800
Cr Accounts Payable$2,800
July 11
Dr Accounts Payable $800
Cr Merchandise Inventory $800
July 12
Dr Cash $882
Dr Sales Discounts-$18
Cr Accounts Receivable $900
July 16
Dr Accounts Payable $6,200
Dr Merchandise Inventory $124
Cr Cash $6,076
July 19
Dr Accounts Receivable $1,800
Cr Sales $1,800
Dr Cost of Goods Sold $1,200
Cr Merchandise Inventory $1,200
July 21
Dr Sales Returns and allowances $300
Cr Accounts Receivable $300
July 24
Dr Accounts Payable $2,000
Cr Merchandise Inventory $40
Cr Cash -$1,960
July 30
Dr Cash $1,470
Cr Sales discounts $30
Cr Accounts receivable $1,500
July 31
Dr Accounts receivable $7,100
Cr Sales $7,100
Dr Cost of Goods Sold $5,000
Cr Merchandise Inventory $5,000
Explanation:
Preparation of journal entries to record merchandising transactions of Blink Company
July 1
Dr Merchandise Inventory$6,200
Cr Accounts Payable $6,200
July 2
Dr Accounts Receivable $900
Cr Sales $900
Dr Costs of Goods Sold $517
Cr Merchandise Inventory $517
July 3
Dr Merchandise Inventory $105
Cr Cash $105
July 8
Dr Cash $1,900
Cr Sales $1,900
Dr Cost of Goods Sold $1,500
Cr Merchandise Inventory $1,500
July 9
Dr Merchandise Inventory $2,800
Cr Accounts Payable $2,800
July 11
Dr Accounts Payable $800
Cr Merchandise Inventory $800
July 12
Dr Cash $882
($900-$18)
Dr Sales Discounts-$18
(900x.02=$18 sales disc.)
Cr Accounts Receivable $900
(882+18)
July 16
Dr Accounts Payable $6,200
Dr Merchandise Inventory $124
(6,200x.02)
Cr Cash $6,076
($6,200-$124)
July 19
Dr Accounts Receivable $1,800
Cr Sales $1,800
Dr Cost of Goods Sold $1,200
Cr Merchandise Inventory $1,200
July 21
Dr Sales Returns and allowances $300
Cr Accounts Receivable $300
July 24
Dr Accounts Payable $2,000
($2,800-$800)
Cr Merchandise Inventory $40
($2,000*2%)
Cr Cash -$1,960
($2,000-$40)
July 30
Dr Cash $1,470
($1,500-$30)
Sales discounts $30
($1,500x.02)
Cr Accounts receivable $1,500
($1,800-$300)
July 31
Dr Accounts receivable $7,100
Cr Sales $7,100
Dr Cost of Goods Sold $5,000
Cr Merchandise Inventory $5,000
You wish to earn a return of 13% on each of two stocks, X and Y. Stock X is expected to pay a dividend of $3 in the upcoming year while Stock Y is expected to pay a dividend of $4 in the upcoming year. The expected growth rate of dividends for both stocks is 7%. The intrinsic value of stock X______
a. cannot be calculated without knowing the market rate of return
b. will be greater than the intrinsic value of stock Y
c. will be the same as the intrinsic value of stock Y
d. will be less than the intrinsic value of stock Y
e. none of the above is a correct answer.
Answer: D. will be less than the intrinsic value of stock Y
Explanation:
Based on the information given above, the intrinsic value of Stock X will be calculated thus:
D1 = Dividend in next year = $3
g = growth rate = 7%
r = = 13%
Therefore, intrinsic value of Stock X will be:
= D1 / (r-g)
= 3 / (13% - 7%)
= 3/6%
= 3 / 0.06
= $50
Therefore, the intrinsic value of stock X is $50.
Intrinsic value of Stock Y will b calculated thus:
D1 = $4
g = 7%
r = 13%
Intrinsic value of Stock Y will be:
= D1 / (r-g)
= 4 / (13% - 7%)
= 4/6%
= 4 / 0.06
= 66.67
Intrinsic value of Stock Y is $66.67
Therefore, the intrinsic value of Stock X will be less than the intrinsic value of Stock Y