Answer:
a) $19.159 million
b) Yes, bank compliance with reserve requirements.
c) 0.938 million
d) $2536.11 million
Explanation:
The amount that is being put apart from the profit for a suitable and relevant purpose is known as Reserve. It is used to usually offset debts and the purchase of fixed assets.
Reserve requirement can be determined as follows:
Daily avg reserve required= Daily avg. net transaction accounts × reserve %
= (0% × $16 million) +(($122.3 million - $16 million)
= 0 + $3.189 million + $20.27 million
= $23.459 million
∴
The avg. daily reserve for the maintenance period = Daily avg reserve required - Avg daily balance of cash.
= ($23.459 -$4.3) million
= $19.159 million
b) SInce the amount of avg daily reserve in the bank($21.2 million) is higher than the required amount of $2.04 i.e. $(21.2 - 19.16)
Then, we can agree that:
Yes, bank compliance with reserve requirements.
c). For the next maintenance period, the reserve carried over = reserve bank required to maintain × highest percentage
= $23.459 million × 4%
= 0.938 million
d)
Since an amount of (2.04 - $0.938) million possess an opportunity cost & no earning at 6%;
Then, the effect of the loss is
[tex]\$1.102 \times 0.06 \times \dfrac{14}{365} \\ \\ =\$2536.11 \ million[/tex] from the reserver period.
7. The price of a movie ticket goes from $7.00 to $8.50. What should happen to the demand for these tickets?
Answer: The price increses
Explanation: Goes t0 7.00 to 8.50 increses a 1.50
The demand has went up
Henderson Electronics Corporation manufactures and sells FM radios. Information on the prior year's operations (sales and production Model A1) is presented below: Sales price per unit $30 Costs per unit: Direct material 7 Direct labor 4 Overhead (50% variable) 6 Selling costs (40% variable) 10 Production in units 10,000 Sales in units 9,500 Refer to Henderson Electronics Corporation. Assume that the remaining Model A1 radios can be sold through normal channels or to a foreign buyer for $6 per unit. If sold through regular channels, the minimum acceptable price will be
Answer:
the minimum acceptable price is $4
Explanation:
The computation of the minimum acceptable price is shown below:
Here the minimum acceptable price would be considered as a variable selling cost i.e. calculated below:
= Selling cost × variable percentage
= $10 × 40%
= $4
hence, the minimum acceptable price is $4
The same would be considered and relevant too
Assume Cluck Home Remedy reported the following adjusted account balances at year-end. 2019 2018 Accounts Receivable $ 1,730,200 $ 1,380,920 Allowance for Doubtful Accounts (96,000 ) (79,900 ) Accounts Receivable, Net $ 1,634,200 $ 1,301,020 Assume the company recorded no write-offs or recoveries during 2019. What was the amount of Bad Debt Expense reported in 2019
Answer: $16100
Explanation:
From the information given, we should note that the amount of bad debt expense reported in 2019 will be:
= Ending balance of the allowance account - Bginning balance of the allowance account.
= $96000 - $79900
= $16100
Therefore, the bad debt expense is $16100
Mongar Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: Original Budget Actual Costs Variable overhead costs: Supplies $ 7,980 $ 8,230 Indirect labor 29,820 29,610 Total variable manufacturing overhead cost $ 37,800 $ 37,840 The original budget was based on 4,200 machine-hours. The company actually worked 4,350 machine-hours during the month and the standard hours allowed for the actual output were 4,190 machine-hours. What was the overall variable overhead efficiency variance for the month
Answer:
Variable overhead variance = $1,440 unfavorable
Explanation:
The variable overhead efficiency variance is the difference between the actual hours and the standard hours for the actual output valued at the standard variable overhead rate per hour.
Machine hours
standard hours for the actual output 4,190
Actual hours 4,350
Efficiency variance 160 unfavorable
Standard rate per hour(see note) × $9
Variable overhead variance 1,440 unfavorable
Standard variable rate per machine hour
= Budgeted overhead cost/Budgeted machine hour s
= $37,800/4,200 hours =$9 per machine hour
Variable overhead variance = $1,440 unfavorable
Fred leases a taco store in the shopping center. In order to prepare his tacos, Fred installs a large, old stove to cook the meat. The lease runs out and Fred does not want to renew the lease. He leaves town and leaves the stove in the landlord's property. The lease contract did not mention the stove and the landlord is very unhappy. What is the legal situation now?
Answer:
The stove is a trade fixture, but Fred did not take it with him upon the expiration of the lease. Now it is the property of the landlord.
Explanation:
Since in the given situation it is mentioned that that lease would run out and he does not want to renew the lease also he leaves the stove in the property of the landlord. Due to this the landlord is very sad
So here the legal situation is that the stove would be classify as a trade fixture also he did not take it with him so now it would be the property of the landlord
The same would be considered
A company's unadjusted trial balance shows a debit balance in the allowance for doubtful accounts. This means that a. The company has written off more accounts receivable during the period than were accounted for in the opening balance of the allowance. b. The company must recognize bad debt expense at least as great as the unadjusted debit balance of the allowance. c. The company has written off too many accounts receivable and should reassess its write-off policy. d. Both a and b above are correct.
Answer:
d. Both a and b above are correct.
Explanation:
In the case when the company unadjusted trial balance reflect a debit balance of allowance for doubtful debts so this represent that the company would have more written off account receivable that would be shown in the beginning balance of the allowance. Also the company should record the bad debt expense as more as the debit balance of the non-adjusted allowance
Hence, the last option is correct
James has a large farm. He often gets together with a nearby neighbor who raises chickens. When they meet that trade vegetables for chicken and eggs. No money changes hands. They have made trades like this since their parents own the land and have continued the trades. What type of economy is being described?
difference between transport business and drink business
Answer:
a transport business uses (preferably semi's) any vehicles to transport one item from one place to another. a drink business is a place/product ( drinks (soft or alcoholic) and you sell them to make a profit
transport business is both cheaper and easy to set up and run.
Purdum Farms borrowed $14 million by signing a five-year note on December 31, 2017. Repayments of the principal are payable annually in installments of $2.8 million each. Purdum Farms makes the first payment on December 31, 2018 and then prepares its balance sheet. What amount will be reported as current and long-term liabilities, respectively, in connection with the note at December 31, 2018, after the first payment is made
Answer and Explanation:
The amount that should be reported as the current liabilities and long term liabilities is shown below:
The borrowed amount is $14 million
And, the installments is of $2.8 million each
He makes the first payment and then made the balance sheet
So, the current liability amount is $2.8 million
And, the long term liability amount is ($2.8 × 3 years) $8.4 million
So the same would be considered and relevant too
Sheridan sells softball equipment. On November 14, they shipped $5000 worth of softball uniforms to Culver Middle School, terms 2/10, n/30. On November 21, they received an order from Douglas High School for $2400 worth of custom printed bats to be produced in December. On November 30, Culver Middle School returned $600 of defective merchandise. Sheridan has received no payments from either school as of month end. What amount will be recognized as accounts receivable, net on the balance sheet as of November 30
Answer:
ywwwee
Explanation:
gniuqoejwgkd[lA
An amount of $4400 will be recognized as accounts receivable, net on the balance sheet as of November 30.
What is accounts receivable?The money that clients owe our business for goods or services for which invoices have been issued is known as accounts receivable. On the balance sheet, current assets are listed as the total amount of all accounts receivable, which includes bills from clients for goods or services provided to them on credit.
First of all, the order received from Douglas High School has not been delivered by the end of November ,hence the value of the order is irrelevant for the purpose of calculating net accounts receivable at the end of November.
However, out of the goods of $5000 sold to Culver Middle School, goods worth $600 has been returned as defective, leaving a balance of $4400 ($5000-$600).
For Culver to be entitled to the discount of 2% they should have made payment by 24th November, which never happened.
Therefore, the balance of accounts receivable will remain at $4400.
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Although ZipCar has some routine operating tasks, its rules and regulations are, for the most part, not strict. ZipCar's decision making does not follow a strict chain of command, and first-line customer service agents have the authority to make decisions without management approval. This information primarily indicates that ZipCar lacks ________. a organizational culture b cross-functional teams c bureaucratic characteristics d cost controls e strategic alliances
Answer: bureaucratic characteristics
Explanation:
From the information given, we can say that ZipCar lacks bureaucratic characteristics. A bureaucratic organization is an organization with several layers of systems and processes and this brings about complexity and delay in decision making as it is hierarchical.
Since ZipCar's decision making does not follow a strict chain of command, and the first-line customer service agents have the authority to make decisions without management approval, this shows that the organization lacks bureaucratic characteristics.
45.18
What gives the US government the power to collect taxes?
o the Constitution
O laws passed by Congress
O an executive order
common law
Mark this and return
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What gives the US government the right to collect taxes?
The management of Penfold Corporation is considering the purchase of a machine that would cost $270,000, would last for 5 years, and would have no salvage value. The machine would reduce labor and other costs by $60,000 per year. The company requires a minimum pretax return of 12% on all investment projects. Click here to view Exhibit 7B-1 and Exhibit 7B-2 to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to (Ignore income taxes.): (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice $(11,700) $(29,886) $(77,514) $(53,700)
Answer:
$(53,700)
Explanation:
The computation of the net present value is given below:
Given that
Initial investment is $270,000
Time period is 5 years
Annual cash flows is $60,000 per year
Discounting rate is 12%
Now the net present value is
Year cash flows discount rate at 12% Present value
1-5 $60,000 3.605 $216,300
Less:
Initial investment $270,000
Net present value ($53,700)
Discovering the process of distribution of commonly used items is quite interesting and opens eyes to several new processes and careers! Your group will be in charge of dissecting the process of distribution related to any of the following items:
*Televisions
*Milk in Cartons
*Laundry Detergent
*Refrigerators
*Lumber
*Pineapples
*Video Games
*Watches
*Coffee
*Shoes
*Football Helmets
*Pencils
Narrow your research by selecting a brand or company that manufactures or distributes one of the products listed above. For example, not all shoes come from the same country, manufacturer, distributor, or are distributed alike. Select a brand of shoes you are familiar with and begin the search. The goal is to trace the process from production to consumer.
Answer and Explanation:
The distribution of laundry detergent can happen in two ways. The first way, occurs with a distribution of the factory direct to the retailers of a country. These retailers, receive the detergents, store large inventories and send them to smaller stores, within a given region. This type of distribution has a lower economic cost, which causes the detergent to be sold at lower prices.
The second form of distribution occurs with the use of intermediaries between factories and retailers. These intermediaries are the wholesalers, they receive the product from the factories forming large stocks, which will be distributed to retailers, who in turn, will distribute the product to stores. This process makes the product more expensive, making the price higher.
In the financial system, who are the borrowers?
A governments, businesses, and households
B governments, households, and individuals
C individuals and households
D households, individuals, and businesses
user add controls to a form
Answer: meeeeep
Explanation:
Manoel
Hawkins Inc. had pre-tax accounting income of $1,800,000 and a tax rate of 35% in 2017, its first year of operations. During 2017 the company had the following transactions: Received rent from Barrett Co. for 2018 $64,000 Municipal bond income $80,000 Depreciation for tax purposes in excess of book depreciation $40,000 Installment sales revenue to be collected in 2018 $108,000 For 2017, what is the amount of income taxes payable for Hawkins Inc.
Answer:
Hawkins Inc.
For 2017, the amount of income taxes payable for Hawkins Inc. is:
= $572,600.
Explanation:
a) Data and Calculations:
2017 tax rate = 35%
Pre-tax accounting income = $1,800,000
2018 Rent from Barrett Co. 64,000
Less:
Exempt Municipal bond income (80,000)
Tax Depreciation (in excess of
book depreciation) (40,000)
2018 Installment sales revenue (108,000)
Adjusted taxable income $1,636,000
Income tax (35%) 572,600 (35% of $1,636,000)
Tax expense (provision) 630,000 (35% of $1,800,000)
b) The difference between the income tax payable of $572,600 and the provision for income tax expense for the year of $630,000 is due to temporary differences and exempt Municipal bond income. The temporary differences are caused by the different timings of the recognition of revenue and expenses under the tax jurisdiction and the GAAP accounting.
\AllCity, Inc., is financed 40% with debt, 8% with preferred stock, and 52% with common stock. Its cost of debt is 5.7%, its preferred stock pays an annual dividend of $2.49 and is priced at $30. It has an equity beta of 1.15. Assume the risk-free rate is 1.7%, the market risk premium is 7.3% andAllCity's tax rate is 35%. What is its after-tax WACC? [Note: Assume that the firm will always be able to utilize its full interest tax shield.]
Answer:
WACC = 6.38%
Explanation:
Cost of equity = 1.7% + (1.15 x 5.6%) = 8.14%
Weight of equity = 52%
After tax cost of debt = 5.7% x (1 - 35%) = 3.705%
Weight of debt = 40%
Cost of preferred stock = $2.49 / $30 = 8.3%
Weight of preferred stock = 8%
WACC = (8.14% x 0.52) + (3.705% x 0.4) + (8.3% x 0.08) = 6.3788% ≈ 6.38%
18. You've arrived at the Pecan Shellers conference - your first networking opportunity.
Naturally, you're feeling nervous, but to avoid seeming insecure or uncertain, you've
decided to
A. square your shoulders before entering the room.
B. speak a little louder than you would normally.
C. talk on your cell phone as you walk around.
D. hold an empowered image of yourself in your mind.
When a person is feeling nervous in this case, to avoid seeming insecure or uncertain, you've decided to square your shoulders before entering the room.
How do you describe a person who is uncertain?A person who is uncertain is said to be one who is said to be capricious; and also unstable.
This is a kind of person that is not sure of their opinions. and so they are ambiguous. In the case above, the right thing to do is option A.
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Answer:
D. hold an empowered image of yourself in your mind
Explanation:
Dr. Norma Carr-Ruffino, a professor of management at San Francisco State University, suggests that you prepare yourself mentally before you enter the room. Imagine new relationships forming on the basis of shared goals, mutual respect, successful communication, and connections that empower you.
Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to calculate Smithson's fixed costs per month. Round your final answer to the nearest dollar. Do not round interim calculations. Cost Machine Hours January $26,000 10,500 February 37,100 17,700 March 29,000 11,500 April 30,900 15,300 a.$9,812 b.$16,680 c.$7,850 d.$31,398
Answer:
Fixed Cost = $9812.499999941 rounded off to $9812
Option A is the correct answer
Explanation:
The high-low method is used to separate the components of a mixed cost and it calculates the variable cost component in a mixed cost. The formula to calculate the variable cost per unit under the high-low method is as follows,
VC/unit = [Highest Activity cost - Lowest Activity Cost] / [Highest Activity units - Lowest Activity units]
VC/unit = [37100 - 26000] / [17700 - 10500]
VC/unit = 1.54166666667 rounded off to $1.54
The total fixed costs will be,
Fixed cost = 37100 - [1.54166666667 * 17700]
Fixed Cost = $9812.499999941 rounded off to $9812
What is the difference between demand and supply curve?
Abbott, Inc., plans to issue $500,000 of ten percent bonds that will pay interest semiannually and mature in five years. Assume that the effective interest rate is 12 percent per year compounded semiannually. Calculate the selling price of the bonds. Round answers to the nearest whole number.
Answer:
$463,202.25
Explanation:
The calculation of the selling price of the bond is given below:
The selling price of the bonds is
= Present value of interest + Present value of maturity
where,
In semi-annually basis , the rate of interest would be divided by 2 and the time period would be double
So, The Present value of interest equals to
= $500,000 × 5% × 7.36009
= $184,002.25
The 7.36009 represent PVIFA factor. Refer to the PVIFA table for the same
And, the Present value of maturity is
= $500,000 × 0.5584
= $279,200
So, the selling price of the bond is
= $184,002.25 + $279,200
= $463,202.25
Sheffield Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Sheffield Corporation's anticipated annual volume of 524,000 units. Per Unit Total Direct materials $ 6 Direct labor $11 Variable manufacturing overhead $17 Fixed manufacturing overhead $3,144,000 Variable selling and administrative expenses $17 Fixed selling and administrative expenses $1,572,000 The company has a desired ROI of 25%. It has invested assets of $31,440,000. Compute the total cost per unit. Total cost per unit $enter the total cost per unit
Answer:
Total cost per unit using absorption costing = $34
Explanation:
Absorption costing is method of costing where overheads are charged to units produced using volume-based bases. e.g machine hours, labour hours e.t.c. Units are valued using full cost per unit
Full cost per unit= Direct material cost + direct labor cost + Variable production overhead + Fixed production overhead
Fixed production overhead = Budgeted overhead/Budgeted production units
unit cost for 2,000 units
Fixed production overhead = $3,144,000/524,000= 6
Total cost = 6 + 11+ 17 = 34
Total cost per unit using absorption costing = $34
In order to sell a product at a profit, the product must be priced higher than the total cost to build the unit, plus period expenses and overhead. At the end of last year, Chester had their product Cake aimed at the Low End segment. Cake's production cost (labor + materials) last year was $14.07 ($5.89 unit labor cost and $8.18 unit material cost). Exclude possible inventory carrying costs. Assume period expenses and overhead total 50% of their production cost. What is the minimum price the product could have been sold for in the American region to cover the unit cost, period expenses, and overhead?
Answer:
Chester Cakes
The minimum price the product could have been sold for in the American region to cover the unit cost, period expenses, and overhead is:
= $21.11.
Explanation:
a) Data and Calculations:
Production cost:
Labor per unit = $5.89
Materials per unit 8.18
Total production cost $14.07
50% Overhead 7.04
Minimum price = $21.11
b) The minimum price for a unit of the cake includes the total variable production cost and the determined 50% overhead on the production cost to cover period expenses and other overhead costs.
You decide that structural changes must be made immediately at Holden Evan to deal with the problems caused by the three SBU marketing teams. What should you do? Select an option from the choices below and click Submit. Merge the independent procurement teams of each SBU into a single procurement division serving all product lines. Create a cross-department team to investigate in depth how the problems arose and to offer suggestions on how to deal with them. Merge the three marketing teams of each SBU into a single marketing division serving all product lines.
Answer:
One of the required structural changes that must be made immediately at Holden Evan to deal with the problems caused by the three SBU marketing teams is:
Merge the three marketing teams of each SBU into a single marketing division serving all product lines.
Explanation:
The marketing department is not a product-based team. Therefore, a marketing team should not be tied to just one SBU. The SBU structure can be continued. But the combination of the marketing teams into a single group creates synergy, avoids effort duplication, reduces competitiveness among the various teams, and above all, helping the group' brand managers to utilize accumulated resources, knowledge,and information of the entire marketing organization for the benefit of the different SBUs.
Suppose your company is considering exporting to a new market and needs to determine whether it should sell a basic or luxury version of its product there. Data on all of the following EXCEPT _____ would best help answer that question. Group of answer choices per capita GDP general consumption patterns GDP demographic trends
Answer:
whats qustion
Explanation:
The type of listing agreement that provides for the payment of a commission to the broker even if the owner himself makes the sale without the aid of the broker is called a(n)
a.
open listing
b.
option listing
c.
exclusive-agency listing
d.
exclusive-right-to-sell listing
Georgia Movie Company has a capital structure with 50.00% debt and 50.00% equity. The cost of debt for the firm is 9.00%, while the cost of equity is 15.00%. The tax rate facing the firm is 36.00%. The firm is considering opening a new theater chain in a local college town. The project is expected to cost $12.00 million to initiate in year 0. Georgia Movie expects cash flows in the first year to be $3.10 million, and it also expects cash flows from the movie operation to increase by 4.00% each year going forward. The company wants to examine the project over a 13.00-year period. What is the WACC for this project
Answer:
10.38%
Explanation:
The computation of the WACC is given below:
WACC = Weight of debt × After tax Cost of debt + Weight of Equity × Cost of Equity
Here After tax cost of debt is
= Cost of debt × (1 - tax rate)
= 9% × (1 - 36%)
= 5.76%
Now
WACC = 50% × 5.76% + 50% × 15%
= 10.38%
Nancy Fur Supply has been selling fur coats to Patricia's Fur Shop pursuant to an existing contract. The price of fur pelts goes up sharply and Nancy concludes that she can no longer continue to supply the coats to Patricia's at the agreed price. Nancy asks Patricia to agree to a 10 percent increase in the price of the coats and Patricia agrees but then later changes her mind and refuses to pay the additional 10%. In that case, Patricia:
Answer:
In that case, Patricia:
is still liable to pay the additional 10%.
Explanation:
The 10% price increase was preceded by an agreement between the two parties. Patricia is bound to honor her agreements with her business partner to sustain the business relationship. Refusing to pay a debt just by a change of mind does not repudiate the contract. Nancy can enforce the agreement in the court for specific performance of the contract because this additional agreement simply modifies the earlier contract and remains enforceable.
Sara works at a printing company. She and her colleagues have to stagger
their tasks carefully because each of their projects require not only the
printers, but other equipment as well. Sara is currently working to fulfill an
order for 5,000 flyers, which are due tomorrow. Her customer just called to
say that they need additional 5,000 flyers.
What will be least important to Sara as she determines whether her company
can accommodate the request?
A. Whether her company has enough paper on hand
B. Whether her company can print the additional flyers without
negatively affecting the other projects
C. Whether there is enough time to print the additional flyers by
tomorrow
D. Why the customer needs 5,000 extra flyers
Answer: D. Why the customer needs 5,000 extra flyers
Explanation:
The important factors that Sara will consider to know whether her company can accommodate the request are:
• Whether her company has enough paper on hand
• Whether her company can print the additional flyers without negatively affecting the other projects
• Whether there is enough time to print the additional flyers by tomorrow.
These factors above are important as they'll determine if she can accept the request or not. For example, in a situation where there's no enough paper, then the request should not be accepted.
The least important factor for Sara to consider will be "Why the customer needs 5,000 extra flyers". This is not of concern to Sara and shouldn't bother her.
Answer:
D. why the customer needs 5,000 extra flyers