Answer:
$53,355.7047
Explanation:
The computation of the estimated cost of the replacement cost is shown below:
Estimated cost = (old cost i.e purchased cost of an equipment ÷ Cost index of that year i.e 2006) × estimated cost index for 2017
= ($30,000 ÷ 149) × 265
= $53,355.7047
We simply applied the above formula so that the estimated cost could come
Reunion BBQ has $4,000,000 of notes payable due on March 11, 2017, which Reunion intends to refinance. On January 5, 2017, Reunion signed a line of credit agreement to borrow up to $3,500,000 cash on a two-year renewable basis. On the December 31, 2016, balance sheet, Reunion should classify:
Answer:
$500,000 of notes payable as short-term and $3,500,000 as long-term obligations.
Explanation:
SHORT-TERM debt which is also known as current liabilities can be defined as a company or an organisation financial obligations which are expected to be pay off with one year.
LONG TERM liability which is also known as non current liabilities can be defined as the type of liability which is an obligation that occured from a previous event which is not due within one year of the said date of the balance sheet
$4,000,000 of notes payable due on March 11, 2017 -$3,500,000 cash on a two-year renewable basis
=$500,000 of notes payable as short-term
Therefore On the December 31, 2016, balance sheet, Reunion should classify as :
$500,000 of notes payable as short-term and $3,500,000 as long-term obligations.
Equity securities in which the investor owns less than 20% ownership in the voting stock of the investee generally can be classified as ________ equity investments. A. no significant influence B. held-to-maturity C. significant influence D. controlling interest
Answer:
A. no significant influence
Explanation:
Equity securities are investment in stock that is held by an individual. It determines control over the company's operational activity.
When a person has less than 20% ownership of equity securities it is considered no significant influence and the holdings are classified as investment.
Significant influence is when an individual owns more than 20% of equity securities. They have voting rights and some control of operational decisions of the company.
Controlling influence bis when ownership is above 50%. The owner holds majority shares of the company
A strategy to be a low-cost provider of branded footwear is unlikely to result in the company being one of the best-performers in the industry if the company's management team fails to:_______.
1. achieve costs per pair sold for both branded and private-label footwear (as reported on p. 7 of the FIR) that are at least close to the industry-low in each geographic region, if not actually equal to the industry-low benchmark.
2. aggressively pursue private-label sales and attain market share leadership in private-label footwear sales in most every year in at least 2 geographic regions
3. establish total compensation packages for production workers that are big enough to keep their total compensation well above the industry-average in those regions where the company has production facilities--such compensation levels are necessary to achieve high worker productivity
4. maintain global production capacity (including full overtime) that is at least 5 million pairs greater than any other company in the industry--otherwise the company will be unable to capture big enough sales volumes to be attractively profitable and successfully execute a low cost/low price/high volume strategy
5. establish production facilities in all 4 geographic regions, produce and market branded footwear with a 5-star or higher S/Q rating, and achieve global market share leadership in both private-label and branded footwear
Answer:
A strategy to be a low-cost provider of branded footwear is unlikely to result in the company being one of the best-performers in the industry if the company's management team fails to:_______.
5. establish production facilities in all 4 geographic regions, produce and market branded footwear with a 5-star or higher S/Q rating, and achieve global market share leadership in both private-label and branded footwear.
Explanation:
The U.S. market is an important market with global reach and image which a U.S. based company cannot neglect. So, establishing production facilities in all 4 geographic regions will help the company to achieve higher U.S. market share and enhance its domestic and global image.
Market branded footwear companies like Nike, Adidas, Jordan, Reebok, etc., are already competing with about 5 others in the global market for footwear. For a company to belong to their class, it must achieve what they have already achieved, especially 5-star or higher S/Q rating.
The Business Strategy Gaming (BSG) is a rating consumer group that "rates the styling and quality of the footwear of all competitors and assigns a styling-quality or S/Q rating of 0 to 10 stars to each company's branded footwear offerings." According to medium.com, to improve BSG rating, "it is important for each to aim for at least 20% market share in each and every segment. This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company."
You need to have $30,750 in 11 in years. You can earn an annual interest rate of 6 percent for the first 3 years, 6.6 percent for the next 2 years, and 7.3 percent for the final 6 years. How much do you have to deposit today
Answer:
=$14887.26
Explanation:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
30750=P*(1.06)^3*(1.066)^2*(1.073)^6
30750=P*2.065524435
P=30750/2.065524435
=$14887.26
Aragon and Associates has found from past experience that 25% of its services are for cash. The remaining 75% are on credit. An aging schedule for accounts receivable reveals the following pattern:
Ten percent of fees on credit are collected in the month that service is rendered.
Sixty percent of fees on credit are collected in the month following service.
Twenty-six percent of fees on credit are collected in the second month following service.
Four percent of fees on credit are never collected.
Fees (on credit) that have not been paid until the second month following performance of the legal service are considered overdue and are subject to a 3% late charge.
Aragon has developed the following forecast of fees:
May $180,000
June 200,000
July 190,000
August 194,000
September 240,000
Required:
Prepare a schedule of cash receipts for August and September. If an amount box does not require an entry, leave it blank or enter "0". Round answers to the nearest dollar.
Answer:
schedule of cash receipts
May June July August September
$ $ $ $ $
Credit Fees (75%) 135,000 150,000 142,500 145,500 180,000
Cash Sales (25%) 45,000 40,000 47,500 48,500 60,000
Credit Receipt (10%) 13,500 15,000 14,250 14,550 18,000
Credit Receipt (60%) 0 81,000 90,000 85,500 87,300
Credit Receipt (26%) 0 0 35,100 39,000 37,050
Total Receipts 58,500 136,000 186,850 187,550 202,350
Explanation:
The schedule of cash receipts must include the cash sales and other amounts received for credit sales in the respective months and amounts as outlined by the question.
Amherst City provides a defined benefit pension plan for employees of the city electric utility, an enterprise fund. Assume that the projected level of earnings on plan investments is $184,300, the service cost component is $245,000, and interest on the pension liability is $166,400 for the year. The City is amortizing a deferred outflow resulting from a change in plan assumptions from a prior year in the amount of $6,100 per year. Prepare journal entries to record annual pension expense for the enterprise fund.
Answer:
Dr Service cost 245,000
Cr Interest 166,400
Cr Cash 411,400
Dr Plan assets - pension 411,400
Cr Service cost 245,000
Cr Interest 166,400
Explanation:
Preparation of the journal entries to record annual pension expense for the enterprise fund of Amherst City
Since we are Assuming that the plan investments was $184,300 while the service cost component is the sum of $245,000, and interest on the pension liability is the sum of $166,400 for the year this means the Journal entries to record annual pension expense for the enterprise fund of Amherst City will be:
Dr Service cost 245,000
Cr Interest 166,400
Cr Cash 411,400
(245,000+166,400)
Dr Plan assets - pension 411,400
(245,000+166,400)
Cr Service cost 245,000
Cr Interest 166,400
Prepare a bank reconciliation for Show Me, Inc., as of June 30 from the following information:
(a) The June 30 balance shown on the bank statement is $5,796.
(b) Outstanding checks at June 30 totaled $330.
(c) A deposit of $424 made on June 30 was not included in the balance shown on the bank statement.
(d) The bank statement contained an adjustment of $410 for a note receivable collected by the bank on behalf of Show Me, Inc. ($382 principal and $28 interest).
(e) A bank charge of $34 was made to the account during June. Although the company was expecting a charge, the amount was not known until the bank statement arrived.
(f) The bank erroneously charged a $340 check of Shirt, Inc., against the Show Me, Inc., bank account.
(g) The June 30 balance in the general ledger Cash account, before reconciliation, is $6,026.
(h) The bank statement included a notice that a customer's check for $172 that had been deposited on June 14 had been returned NSF.
Required:
(1) Prepare the bank reconciliation for Show Me, Inc., as of June 30.
(2) Prepare the appropriate adjusting entry(ies) or show the reconciling items in a horizontal model, for Show Me, Inc., related to the bank reconciliation.
Answer:
bank account reconciliation:
bank account balance $5,796
- outstanding checks $330
+ deposits in transit $424
+ error from Shirt, Inc., check $340
reconciled balance $6,230
cash account reconciliation:
cash account balance $6,026
+ note collected $410
- bank fee $34
- NSF check $172
reconciled balance $6,230
assets = liabilities + equity
cash acc. rec. notes rec. int. rec.
204 172 -382 -28 = 0 + -34
income statement
revenues - expenses = net income
0 - 34 = -34
All the adjustments are considered cash flows from operations.
If government regulations force employers to provide dental insurance, then there is a movement up the:________.
1. AS curve as price level increased.
2. AS shifts right and price level would decrease.
3. AS shifts right and price level would increase.
4. AS shifts left and price level would decrease.
5. AS shifts left and price level would increase.
Answer:
The correct answer is the option 3: AS shifts right and price level would increase.
Explanation:
To begin with, the Aggregate Supply Curve is the total amount of goods and services that the suppliers are willing and able to offer at a certain price level given and at a certain period of time. If the costs of the sellers increases then that would mean that they would try to obtain more profits so that would implicate in an increase in the amount of quantity offered by them. So that means that the aggregate supply curve would shift to the right and the price level would increase as the sellers would try to earn more profits so that they could cover all the new costs given by the government.
To align currency symbols and decimal points in a column of numbers, you can apply the ____ number format.
Answer:
Accounting.
Explanation:
In Microsoft Excel, to align currency symbols and decimal points in a column of numbers, you can apply the accounting number format.
When an individual (accountants or financial experts) wishes to display numbers as a monetary value, he or she is required to format the numbers as currency. The procedure for achieving this, is to apply an accounting number format to the required or necessary cells to be formatted.
In order to access the number formatting options, users should navigate to the Home tab which is found in the Number group on the Microsoft excel software application.
Also, worthy of mention is the fact that the accounting number format can be used to display negative numbers in parentheses and zeros as dashes.
Use the following information for Meeker Corp. to determine the amount of equity to report. Cash $ 72,000 Buildings 126,500 Land 208,600 Liabilities 131,500 A. $22,600. B. $275,600. C. $407,100. D. $538,600. E. $285,600.
Answer:
$276,500
Explanation:
The computation of the total equity is shown below;
As we know that
Accounting equation is
Total assets = Total liabilities + total stockholder equity
where,
Total assets is
= Cash + land + buildings
= $72,000 + $208,600 + $126,500
= $407,100
And, the total liabilities is $131,500
So, the total stockholder equity is
= $407,100 - $131,500
= $276,500
We simply applied the above formula
A company had average total assets of $932,000. Its gross sales were $1,097,000 and its net sales were $965,000. The company's total asset turnover equals:
Answer:
Total asset turnover is 1.035.
Explanation:
The total assets that the company had = $932000
Gross sales = $1097000
Net sales = $965000
The total asset turnover can be determined by dividing the net sales with average total assets. Here, the average total assets are $932000 and net sales is $965,000.
Total asset turnover = net sales / average total assets
= 965000 / 932000
=1.035
Bank A quotes a bid rate of $0.300 and an ask rate of $0.305 for the Malaysian ringgit (MYR). Bank B quotes a bid rate of $0.306 and an ask rate of $0.310 for the ringgit. What will be the profit for an investor that has $500,000 available to conduct locational arbitrage
Answer: $1639.3
Explanation:
From the question, we are informed that Bank A quotes a bid rate of $0.300 and an ask rate of $0.305 for the Malaysian ringgit (MYR) and that bank B quotes a bid rate of $0.306 and an ask rate of $0.310 for the ringgit.
The profit for an investor that has $500,000 available to conduct locational arbitrage goes thus:
Purchasing Malaysian ringgit (MYR) from bank A at the ask rate will be:
= $500,000/$0.305
= 1,639,344.3
Selling the Malaysian ringgit (MYR) at bank B based on the ask rate will be:
= 1,639,344.3 × 0.306
= $501,639.3
The profit for an investor that has $500,000 available to conduct locational arbitrage will be:
= $501,639.3 - $500,000
= $1639.3
Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms that sell Blu-ray players: Movietonia and Videotech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its players.
Videotech Pricing
High Low
Movietonia Pricing High 11, 11 2, 15
Low 15, 2 8, 8
For example, the lower-left cell shows that if Movietonia prices low and Videotech prices high, Movietonia will earn a profit of $15 million and Videotech will earn a profit of $3 million. Assume this is a simultaneous game and that Movietonia and Videotech are both profit-maximizing firms.
1. If the firms do not collude, what strategies will they end up choosing?
2. The game between Movietonia and Videotech is an example of the prisoners' dilemma.
a. true
b. false
Answer:
pricing low
yes
Explanation:
Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.
Dominant strategy is the best option for a player regardless of what the other player is playing.
Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.
if either firm charges high, they either earn 11 million or 2 million.
if either firm charges low, it would earn either 15 million or 8 million.
because the payoffs of charging low is higher than the payoffs of charging high, the best strategy is for the firms to charge low if there is no cooperation.
the game is a prisoners dilemma because the choice the firms make isn't the choice that will yield the highest payoffs. the choice that would yield the highest payoffs is to both charge high prices.
Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2016’s activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $200,000. The maximum output capacity of the company is 40,000 units per year.
ASTRO COMPANY
Contribution Margin Income Statement
For Year Ended December 31, 2015
Sales $ 1,000,000
Variable costs 800,000
Contribution margin 200,000
Fixed costs 250,000
Net loss $ (50,000 )
1. Compute the break-even point in dollar sales for year 2015.
2. Compute the predicted break-even point in dollar sales for year 2016 assuming the machine is installed and there is no change in the unit selling price.
3. Prepare a forecasted contribution margin income statement for 2016 that shows the expected results with the machine installed. Assume that the unit selling price and the number of units sold will not change, and no income taxes will be due.
4. Compute the sales level required in both dollars and units to earn $200,000 of target pre-tax income income in 2016 with the machine installed and no change in unit sales price.
Answer:
Required 1.
Break even point (dollar sales) = $750,000
Required 2.
Break even point (dollar sales) = $1,250,000
Required 3.
ASTRO COMPANY
Forecasted Contribution Margin Income Statement
For Year Ended December 31, 2016
Sales $ 1,000,000
Variable costs ($ 400,000 )
Contribution margin $ 600,000
Fixed costs ($ 450,000 )
Net loss $ 150,000
Required 4.
Sales to meet target profit (dollar sales) = $1,833,333
Sales to meet target profit (unit sales) = 73,334
Explanation:
Break even point is the level of activity where a Company neither makes a profit nor a loss.
Break even point (dollar sales) = Fixed Cost / Contribution Margin Ratio
Where,
Contribution Margin Ratio = Contribution / Sales
= $ 200,000 / $ 1,000,000
= 0.20
Therefore,
Break even point (dollar sales) = $250,000 / 0.20
= $1,250,000
Assuming the machine is installed
Contribution Margin Ratio = ($ 1,000,000 - $400,000) / $ 1,000,000
= $600,000 / $1,000,000
= 0.60
Therefore,
Break even point (dollar sales) = ($250,000 + $200,000) / 0.60
= $750,000
Sales to meet target profit of $200,000
Sales to meet target profit (dollar sales) = Fixed Cost + Target Profit / Contribution Margin Ratio
= ($450,000 + $200,000) / 0.60
= $1,833,333
Sales to meet target profit (unit sales) = $1,833,333 / $25
= 73,334
You have just finished reading an article in a personnel journal about compensation plans. The turnover rate in your firm is too high, especially the cost of losing experienced employees. The CEO has indicated there is a 50% chance the budget for a new compensation plan would be available next year. You must decide which compensation plan warrants further study by your HR staff. Each study costs $3,000 and will be automatically charged against your budget as "Incident Cost" in your Budget Analysis and Report. You may only choose one response from the options given below; if the one you choose pertains only to production workers, you may assume that another system would also be instituted for management.
a. A system based on the relative worth of jobs.
b. Many feel that higher level employees perform sufficiently different work and should be paid at a higher rate.
c. This may be contributing to an unspoken morale problem.
d. This system may help protect the firm against discrimination claims, as equal work would be paid equal pay.
Answer:
(C)
Explanation:
Which compensation plan warrants further study by the HR staff?
(C) An unspoken morale problem
Further study should be carried out on this, in order to decipher the reason for the high cost of losing experienced employees.
Morale problems that experienced staff are facing might include: slow or no promotion, neglect of their efforts or talents, poor compensation plans or benefits, etcetera.
After the JPR Corporation paid its employees on May 15, 2019, and recorded the corporation’s share of payroll taxes for the payroll paid that date, the firm’s general ledger showed a balance of $1,730 in the Social Security Tax Payable account, a balance of $356 in the Medicare Tax Payable account, and a balance of $1,972 in the Employee Income Tax Payable account. On May 16, 2019, the business issued a check to deposit the taxes owed in the local bank. Record this transaction in a general journal form.
Answer:
Given that the firm's general ledger showed the following:
Balance in the Social Security Tax Payable account = $1,730
Balance in the Medicare Tax Payable account = $356
Balance in the Employee Income Tax Payable account = $1,972.
Record this transaction in a general journal form:
Date: May 16, 2019
Account title: Social Security Tax Payale. Dr. $1,730
Medicare Tax Payable. Dr. $356
Employee Income Tax Payable, Dr. $1,972
Bank/Cash(Total), Cr. $4,058
Suppose there are five sellers and five buyers in a rental market, each willing to buy or sell one rental unit, with values of {1000,900,800,700,600}. Assuming no transactions costs and a competitive market, what is the equilibrium price in this market
Answer: $800
Explanation;
The Equilibrium price is the price where the quantity sold by buyers equals the quantity sold by sellers.
Going by the following schedule that price would be $800 because at that point Sellers are willing to sell 3 units and Buyers are willing to buy 3 units.
Price Quantity Demanded Quantity Sold
1,000 1 5
900 2 4
800 3 3
700 4 2
600 5 1
What forces have caused cost and management accounting system designed decade's ago to become less relevant and less valuable for organizational employee's in today's global competitive environment
Answer with its Explanation:
The forces that had lessened the importance of the cost and management accounting systems in today's dynamic world are as under:
The ancient bookkeeping and the costing techniques were very time consuming and the accounting systems were also not integrated with the financial accounting systems. Today we have very robust and integrated systems which helps the management of the business operations nation wide with greater security and better performance than the previous old versions.The complexity of the organization operations have resulted in origination of additional management accounting techniques that were adapted in the form of automated software, that are used to produce management reports on daily, weekly, monthly and yearly basis. The examples include the Throughput costing, Activity based costing, Bench-marking techniques, etc.The activities automation has led to attaining of maximum efficiency possible in some areas which wasn't possible in the past. The robots management systems, activity automation, etc has increased the fixed cost share in the total cost and the variable cost has become a very minute share of the total cost of the activity. This variable cost which is often referred to as controllable cost, is very less in percentage share of total cost today than 10 years back. In the future, we will see it as a very very very small share of total cost. This makes the today's management costing techniques obsolete and requires new solutions, new techniques, new softwares, etc. to manage the companies operations.Innovations are allowing consumers to utilize gesture, touch, and voice to control computers and other devices. This is an example of a(n) __________ force that could impact many industries.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Economic
b) Technological
c) Competitive
d) Regulatory
e) Social
And the correct answer is the option B: Technological.
Explanation:
To begin with, those kind of innovations like gesture, touch and voice commands that are focused in controlling the computers in a major amount of ways so therefore the use of the device will be easier for the users, are only trying to tend to the new ways of technology that will eventually in the future dominate in the industries and will cause an increase in the production of those companies that use that kind of technology because it only makes it easier to do the tasks and therefore that the technology force mentioned will only impact in a great way in many industries.
Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $ 4.91 million per year. Your upfront setup costs to be ready to produce the part would be $ 7.96 million. Your discount rate for this contract is 7.5 %.
Required:
a. What is the IRR?
b. The NPV is $ 4.68$4.68 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule?
Answer:
IRR = 38.43%
Yes, they agree
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator.
Cash flow in year 0 = $-7.96 million.
Cash flow each year from year 1 to 3 = 4.91 million
IRR = 38.43%
A project should be undertaken if the IRR of the project is greater than its discount rate. The IRR of this project is greater than the IRR, so the project should be carried out.
The IRR rule and NPV rule agree
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
Leaper Corporation uses an activity-based costing system with the following three activity cost pools:
Total Activity Activity Cost Pool machine- Fabrication 35,000 hours Order processing 300 orders Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries Depreciation $420,000 170,000 190,000 Occupancy $780,000 Total The distribution of resource consumption across activity cost pools is given below:
Activity Cost Pools Order Processing Fabrication other Total Wages and salaries Depreciation 30% 25% 45% 100% 20% 50% 30% 100% 40% 35% 100% 25% Occupancy
The activity rate for the Order Processing activity cost pool is closest to:
The activity rate for the Order Processing activity cost pool is closest to:
a) $633 per order
b) $1,745 per order
c) $855 per order
d) $572 per order
Answer:
Order processing= $846.67 per order
Explanation:
Giving the following information:
Activity costs:
Wages and salaries= 420,000
Depreciation= $170,000
Occupancy= $190,000
Activity Cost Pools:
Order Processing:
Wages and salaries= 0.3
Depreciation= 0.25
Occupancy= 0.45
Order processing 300 orders
First, we need to calculate the total overhead cost for order processing:
Wages and salaries= 0.3*420,000= 126,000
Depreciation= 0.25*170,000= 42,500
Occupancy= 0.45*190,000= 85,500
Total= $254,000
Now, using the following formula, we can determine the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Order processing= 254,000/300= $846.67 per order
With a looming recession in front of him, department store owner Cooper Collins decided to make a gutsy move with his high-end Eastpointe stores. Rather than focus on the upscale, luxury market that the store attracted earlier in the decade, he focused on bringing in clothing with more mass appeal. The stores succeeded in turning around downward trending sales. In conjunction with your understanding of the product life cycle, which of the following statements summarizes the marketing strategy?A) Eastpointe recognized that it was not competing well with its traditional higher income market. It decided to change its product offering and price to appeal to a broader market and increase sales and profits.B) Eastpointe stores recognized several markets that it could reach with its upscale clothing lines.C) Eastpointe positioned itself against, rather than with, the competition. It decided to adhere to its price leadership position.D) Eastpointe knew that in order to re-invent itself, it was going to have to practice the same marketing strategy followed by Walmart and other discount stores. It would make all marketing decisions based on cost. The price on an item need only exceed what it cost to make and ship it. Falling prices became the norm.
Answer: A) Eastpointe recognized that it was not competing well with its traditional higher income market. It decided to change its product offering and price to appeal to a broader market and increase sales and profits
Explanation:
Based on the scenarios discussed in the question above can see that Eastpointe realized that it was not competing well with the traditional higher income market.
When goods reach maturity, the sales and the profits will begin to rise at first and then drop off. Based on this realization, Eastpointe decided to change its product offering and price as it is believed that doing this will help appeal to a broader market and also lead to the increase in sales and profits
The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.
Rina spends all of her money on comic books and beignets. In 2011 she earned $14.00 per hour, the price of a comic book was $7.00, and the price of a beignet was $2.00.
Which of the following give the nominal value of a variable?
A) Rina's wage is 2 comic books per hour in 2011.
B) The price of a beignet is $2.00 in 2011.
C) Rina's wage is $14.00 per hour in 2011.
Answer: B) The price of a beignet is $2.00 in 2011.
C) Rina's wage is $14.00 per hour in 2011
Explanation:
A Nominal Value is an expression of a Variable in terms of it's monetary value in a various years.
When something is expressed by it's monetary value in a certain year therefore, this is the nominal value of the variable.
The price of a beignet in 2011 is therefore an example of a Nominal Value as it is the monetary value in 2011.
In the same vein, Rina's wage per hour in 2011 expressed in monetary terms of $14.00 is also a nominal value.
Quince Holman Corporation reports: Cash provided by operating activities $250,000 Cash used by investing activities 110,000 Cash provided by financing activities 140,000 Beginning cash balance 70,000 What is Holman's ending cash balance
Answer:
Holman's ending cash balance is $350,000.
Explanation:
The Ending Cash Balance can be obtained by Preparing a Cash Flow Statement as follows :
Quince Holman Corporation
Cash Flow Statement
Net Cash from Operating Activities $250,000
Net Cash from Investing Activities ($110,000)
Net Cash from Financing Activities $140,000
Movement during the Year $280,000
Cash and Cash Equivalents at the Beginning of the year $70,000
Cash and Cash Equivalents at the End of the year $350,000
Conclusion :
Holman's ending cash balance is $350,000.
If the Budgetary fund balance account was debited when the budget was recorded in the City of Mustangville's General Fund, then:__________.
a. appropriations exceed estimated revenues
b. actual expenditures exceed appropriations
c. estimated revenues exceed appropriations
d. appropriations exceed actual revenues
Answer: a. appropriations exceed estimated revenues
Explanation:
A Budgetary Fund Balance is simply an account that Government agencies and Departments have to calculate the difference between expected inflows and Outflows for the period that a budget covers.
It is a temporary account with it's balance going to the General fund. If it is debited in the General fund then that means that Appropriations approved for the period are more than the revenues expected. The reverse is true.
The cost of an asset is $ 1 comma 050 comma 000, and its residual value is $ 130 comma 000. Estimated useful life of the asset is ten years. Calculate depreciation for the second year using the doubleminusdecliningminusbalance method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)
Answer:
$168,000
Explanation:
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life)
Depreciation factor = 2 x (1/10) = 0.2
depreciation expense in year 1 = 0.2 x $1,050,000 =$210,000
book value at the beginning of year 2 = $1,050,000 - $210,000 = $840,000
depreciation expense in year 2 = 0.2 x $840,000 = $168,000
If the government is required to balance the budget and the economy falls into a recession, which of the actions is a feasible policy response?
a. invest in infrastructure
b. increase government spending to stimulate the economy
c. cut taxes to encourage consumer spending
d. cut spending equal to the reduction in tax revenue
Answer:
d. cut spending equal to the reduction in tax revenue
Explanation:
Recession is basically a period of temporary economic decline where people usually buy less and less trade happens. When this happens, the government loses TAX revenue (money coming in from taxes) so a good way for govt. to balance the budget (amount that govt needs for spending on different areas) is to cut spending equal to the reduction in tax revenue (the reduction came about due to recession)
In other words, reduce spending by x dollars (here x dollar represents the lost tax revenue.
A customer sells 1 ABC Jul 40 Put at $6 when the market price of ABC is $38. The market falls to $25 and the customer is assigned. The customer then sells the stock in the market. The loss is:
Answer: 9 points or $900
Explanation:
Given:
Market price = $38.
Fall = $25.
Premium = $6.
When exercised, the customer must buy the stock for $40. But he goes ahead to sell the stock at $25 for a 15 point loss. Hence since 6 points was collected as the premium, the net loss is 9 points or $900. This means the customers loss is $900.
_____ illuminates exactly what activities are associated with serving a particular customer and how these activities are linked to revenues and the consumption of resources.
Answer:
Activity based costing
Explanation:
Activity based costing is defined as a method of costing that identifies the activities involved in production in an organisation, and assign cost of the activity to the product.
It provides an objective way of assigning cost. Activities that contribute more to the production of a product will have a higher cost assigned to that product.
Manufacturing companies more accurately assign overhead cost to products.
For example machine hours can be used as a cost driver in the production process. The higher the machine hours of a process the higher the cost of that process assigned to the product.
Martin Distributors has the following transactions related to notes receivable during the last two months of the year.
Dec. 1 Loaned $16,000 cash to E. Kinder on a 1-year, 6% note.
16 Sold goods to J. Jones, receiving a $4,800, 60-day, 7% note.
31 Accrued interest revenue on all notes receivable.
Instructions:
Journalize the transactions for Trent Distributors.
Answer:
Dec. 1
Note Receivable : E. Kinder $16,000 (debit)
Cash $16,000 (credit)
Dec. 16
Note Receivable : J. Jones $4,800 (debit)
Sales $4,800 (credit)
Dec. 31
Note Receivable : E. Kinder $80 (debit)
Note Receivable : J. Jones $168 (debit)
Interest Income $248 (credit)
Explanation:
Interest accruing on E. Kinder`s Note Receivable = $16,000 × 6 % × 1/12 = $80.
Interest accruing on J. Jones`s Note Receivable = $4,800 × 7 % × 30/60= $168.