The Cell Inc., a microbiology research laboratory headquartered in the United States, has been losing money. The CEO decides to outsource some production to companies in developing countries. This decision to shift functions or processes to less developed countries is most likely due to their

Answer:

NPV= -$1,172.57

Explanation:

Giving the following information:

Initial investment= $2,500

Cash flow= $1,500

Discount rate= 13%

To calculate the net present value (NPV), we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

NPV= -2,500 + (1,500/1.13)

NPV= -1,172.57

Answer:

$24,000 ordinary income

$1,600 interest income

$20,000 guaranteed payment.

Explanation:

Calculation for what how much income will Percy report for the year and what is its character

Calculation for Percy Ordinary income: 120,000 - 40,000 - 20,000

= 60,000 x 40%

= 24,000.

Calculation for Percy Interest income:

4,000 x 40%

= 1,600

Guaranteed Payment: 20,000

Therefore what Percy will report will be: $24,000 ordinary income

$1,600 interest income

$20,000 guaranteed payment.

Answer: $0.65

Explanation:

The Price Level and the value of a currency are inversely related because inflation erodes the value of the currency. Therefore if the price level increases, the value of the currency drops. The reverse is true.

The formula therefore is is;

New Value = [tex]\frac{1}{Price Level}[/tex]

New Value = [tex]\frac{1}{1.55}[/tex]

New Value = 0.6452

New Value = $0.65

Answer:

The answer is:

A - Non-value-added

B - Non-value-added

C- Value-added

D- Non-value-added

E - Value-added

F - Value-added

G - Non-value-added

H- Non-value-added

Explanation:

In activity-based costing, Non-value-added activities are activities that add costs to ones product without enhancing the value while value-added is a cost that enhance the quality of a product or service.

A - Non-value-added

B - Non-value-added

C- Value-added

D- Non-value-added

E - Value-added

F - Value-added

G - Non-value-added

H- Non-value-added

Answer:

A.

Room and meals=  $240 per day

Radiology =  $215 per image

Pharmacy =  $50 per physician order

Chemistry lab = $80 per test

Operating room = $1,000 per operating room hour

B.

Patient Putin

Unit  = $1,585

Total = $10,640

Patient Umit

Unit  = $1,585

Total = $6,025

Explanation:

Activity rate = Total Overhead Cost / Total Activity

Room and meals=  $240 per day

Radiology =  $215 per image

Pharmacy =  $50 per physician order

Chemistry lab = $80 per test

Operating room = $1,000 per operating room hour

Patient Putin

                               Unit       Total

Room and meals   $240      $1,440

Radiology               $215        $860

Pharmacy                 $50       $300

Chemistry lab          $80          $40

Operating room  $1,000    $8,000

Total                     $1,585   $10,640

Patient Umit

                               Unit       Total

Room and meals   $240       $960

Radiology               $215       $645

Pharmacy                 $50       $100

Chemistry lab          $80       $320

Operating room  $1,000    $4,000

Total                     $1,585   $6,025

Answer:

Cash flow from Investing activities refers to cash transactions related to Fixed Assets as well as transactions related to the ownership of other company securities.

Cash-flow from Investing Activities

Sale of equipment (79,500 - 33,000).......................... $46,500

Purchase of New Truck ................................................... ($106,000)

Sale of Land.........................................................................$420,000

Sale of Long-term investments.......................................$95,600

Net cash provided by investing activities ...................$456,100

Answer:

Over the last 4 years to accomplish this goal the annual interest rate must be 13.14 %.

Explanation:

First find the Future value (FV) of $11,000 at the end of the 6th year as follows :

PV = -$11,000

r = 6.50%

p/yr = 1

n = 6

Pmt = $0

FV = ?

Using a financial calculator, the Future Value (FV) is $16,050.57

Therefore, the amount invested will amount to $16,050.57 in 6 year.

Next we then calculate the interest rate that will give us $26300 in the next four years (remainder of the 10 years)

PV = -$16,050.57

FV = $26,300

P/yr = 1

n = 4

Pmt = $0

r = ?

Using a financial calculator, the Interest rate (r) is 13.14 %

Conclusion :

Over the last 4 years to accomplish this goal the annual interest rate must be 13.14 %.

Answer:

Option, A , D, E = expansionary fiscal policy.

Option B = Contractionary fiscal policy

Option C = not a part of fiscal policy

Explanation:

The expansionary fiscal policy occurred when there is a decrease in taxes and an increase in government expenditure (spendings). While contractionary fiscal policy occurs when taxes are increased by the government and there is a fall or decrease in government spendings. Therefore, Option A, Option D, and Option E are part of the expansionary fiscal policy.

Option B is a contractionary fiscal policy. While option C is not a part of fiscal policy

Answer:

21.9%

Explanation:

Given that

Operating leverage = 7.3

Increase in sales  = 3%

According to the given situation, the computation of net operating income is shown below:-

Increase in operating income  = Operating leverage × Increase in sales

= 7.3 × 3 %

= 21.9%

Therefore for computing the increase in operating income we simply applied the above formula.

Answer:

Please check the attached image for the timeline image.

present value. this is because in making the decision of whether to carry out a project, the decision is made at the beginning of of the project and not in the future. so it is important to determine the present value to know if the project is profitable and should be carried out.

Explanation:

Timeline is arranges a series of events in chronological order. cash inflows are recorded as positive while cash outflows have a negative sign in front of the amount.

present value is the sum of discounted cash flows

Answer:

PV= $15,291.74

Explanation:

Giving the following information:

Annual cash flow= $1,5000

Number of years= 20

Interest rate= 7.5%

To calculate the present value, first, we need to determine the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {1,500*[(1.075^20) - 1]} / 0.075

FV= $64,957.02

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 64,957.02/(1.075^20)

PV= $15,291.74

The complete question is attached.

Answer:

Sears Holding Corporation and Wal-Mart Stores, Inc.

1. The section of the cash flow statement that is the best predictor of a company's future profitability is the Operating Activities Section.  The reason is that the operating activities section shows the net cash from operating activities or the core business activities of the entity.  A business entity's profitability is not determined by subsidiary activities like financing and investing activities.  But it is ascertained by reviewing its operating activities which also define the mission of the business and show the strategies it can deploy to attain its goals.

2. Walmart Stores, Inc. is by far healthier than Sears Holdings Corporation, at least based on the January 30, 2016 statements of cash flows.  For instance, Walmart Stores recorded a Net Cash Flow from operations in the sum of $27,389 million while Sears recorded a negative Net Cash Flow from operations in the sum of $2,167 million.  Again, from the operating activities sections, one can see that Walmart Stores, Inc. was able to make a net income before adjustments of $15,080 million, whereas Sears Holding Corporation performed abysmally poor by incurring a net loss of $1,128 million.

Explanation:

The Sears and Walmart's statements of cash flows are one of the three main financial statements prepared and presented by Sears Holding Corporation or Walmart Stores, Inc. to its stockholders and the general public to show financial information about its activities.  Specifically, the statements of cash flows for Sears and Walmart show the flow of cash under three main activity headings: operating, financing, and investing.  

Two methods can be used by Sears and Walmart to prepare the statement.  They include the indirect method, which starts from the net income, and the direct method, which shows the cash inflows and outflows for each cash flow item for Sears and Walmart.

Answer:

Income will decrease by $2,000,000.

Explanation:

Giving the following information:

Advertising increase= $50,000,000

Units increase= 10,000 units

Unit contribution margin= $4,800

To calculate the total effect on income, we need to use the following formula:

Effect on income= total contribution margin - increase in fixed costs

Effect on income= 10,000*4,800 - 50,000,000

Effect on income= $2,000,000 decrease

Income will decrease by $2,000,000.

Answer:

Buhao Construction

a) Debt-to-Equity Ratio if it borrows $220,000

= Debit/Equity

= $220,000/$1,700,000

= 12.94%

b. EPS = $195,800/17,000

= $11.52

c. EPS = $173,800/17,000

= $10.22

Explanation:

a) Data and Calculations:

Outstanding Equity = 17,000 shares x $100 = $1,700,000

Interest rate = 11%

It is assumed that Buhao Construction pays no taxes

EBIT = $130,000

Debit = $220,000

Interest Expense = $24,200

Net Income = $195,800 ($220,000 - 24,200)

Debit = $420,000

Interest Expense = $46,200

Net Income = $173,800 ($220,000 - 46,200)

b) Debt-to-Equity Ratio of Buhao Construction is the relationship in ratio terms between debts and equity of the company.  It shows the percentage of debts over the stockholders' equity.

c) EPS or Earnings per share shows the net income of Buhao Construction that can be attributed to each share.  Stockholders use this measure to learn the profits that are generated for each share by the company during the period.  A high EPS indicates that the business is profitable for stockholders.

Answer:

The 10,000 units of output that will be supplied by the two firms to the market.

Profit that each firm would earn will be higher than previous.

Explanation:

The firm selling 4,000 units at the price of $10 per unit. If the output is increased to 6,000 units the price will increase to $11 per unit. If the new 6,000 units are produced along with the previous 4,000 units then the total output supplied by the two firms will be 10,000 units (6,000 + 4,000). The supply of goods in the market will increase so price will fall and the revenue for the firms will decline but they can benefit with sales volume and their profit can increase.

The 10,000 units of output will be supplied by the two firms to the market.

The profit that each firm would earn will be higher than the previous.

Here the firm sells 4,000 units at the price of $10 per unit. And, in the case when the output is increased to 6,000 units the price will increase to $11 per unit.

And, In the case when the new 6,000 units are produced along with the previous 4,000 units so the total output supplied by the two firms will be 10,000 units.

The supply of goods in the market should increase due to which the price will fall and the revenue for the firms will decline however they can benefit with sales volume and their profit can increase.

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Answer:

Please see answers below

Explanation:

Joan may as well put a call through to Maria in addition to his previous mail. Several remedial options are available to Juan and each has its own merits and demerits. It is proper for the tenant to consider each options carefully and seek legal opinion where necessary. However, if Maria declines to do the repairs, Juan may seek the following remedies

• Repair and deduct remedy . In this type of remedy, a tenant may deduct money that is equivalent of a month's rent to cover the cost of the repair or defect. Rental unit 156 covers a condition whether faulty or substandard rented unit could affect the tenant's health and safety. Since the landlord has refused to do the repair, she is guilty of implied warranty of habitability which includes leak in the roof, gas leak, no running water etc. Also, the tenant may not have to file a lawsuit against the landlord since this type of remedy has legal aid. Other conditions attached in addition to the above are ; the repairs cannot cost more than a month's rent, the tenant cannot use the repair and deduct remedy more that twice in any 12 month period, tenant must have informed the landlord in writing and through calls of the faulty area that requires repair. His family or pets must not be the cause of the faulty area that needed to be repaired etc.

• The abandonment remedy . Here, the tenant could move out of the faulty unit or defective rental unit due to its substandard condition which could affect his health and safety. Where the tenant uses the abandonment remedy judiciously, he is not liable to pay any other rent once he has abandoned or moved out of the defective rental unit. The conditions attached are that; the defects must be serious and directly related to the tenant's health and safety, the tenant or his family must not be the cause of the faulty space that requires repair. Moreover, the tenant must have informed the landlord whether in writing or orally telephone calls of the defects that requires repair.

• The rent withholding remedy. Legally, a tenant could withhold house rent if the landlord fails to take care of serious defects that negates the implied warranty of habitability. Conditions attached to this type of remedy are; the defects to be repaired must have threatened the tenant's safety and wellbeing. Again, the faulty or defective unit must be such that it becomes uninhabitable for the tenant . The tenant, his family or pets must not be the cause of the defects that requires repairs. The tenant must have also notified the landlord either through phone calls on in writing, amongst others.

• The tenant could also file a lawsuit against the landlord to recover the cost expended to fixing the faulty repairs where the landlord was not willing to do so. Conditions that must be met before this option could stand in the court of law are; the rental unit has serious defect that is not safe for living. A housing inspector has inspected the house and found to be short of minimum requirements for habitable place etc. A tenant may seek this type of redress where the option for out of court settlement has failed with the landlord.

Answer:

$ 1,781.53  

Explanation:

The future value of the 5-year CD can be determined by using the future value formula stated below:

FV=PV*(1+r)^n

FV is the future value which is expected future amount after 5 years

PV is the initial amount used in purchasing the CD i.e $1500

r is the rate of return on the CD on an annual basis which is 3.5%

n is the number of years the investment would last which is 5 years

FV=$1500*(1+3.5%)^5

FV=$1500*1.187686306

FV=$ 1,781.53  

Answer:

both statements are false

Explanation:

if People decide to have fewer children, there would be less demand for minivans as a result the demand curve would shift to the left.

also, if The stock market crashes lowering people’s wealth and minivans are normal goods, the demand for minivans would fall and the demand curve would shift to the left.

A leftward shift signifies a fall in demand while a rightward shift signals a rise in demand

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls

Answer:

Debit the Cost of Sales  and,

Credit the Revenue.

Explanation:

Transactions that occur within a group of companies must be eliminated. Playa is a Parent (85%) and Seashore Inc is a Subsidiary.

The effect of the Sale by Playa to Seashore is that Group Cost of Sales and Revenue would be over-valued by the price of intragroup sale.

Thus, the adjustment for this intragroup sale, is to Debit the Cost of Sales  and Credit the Revenue.

Answer:  18.6%

Explanation:

Degree of operating leverage =  % change in Operating cash flow / % change in output

% change in Output

= [tex]\frac{48,000 - 45,000}{45,000}[/tex]

= 6.7%

Degree of operating leverage =  % change in Operating cash flow / % change in output

2.79 = % change in Operating cash flow/ 6.7%

% change in Operating cash flow = 2.79 * 6.7%

% change in Operating cash flow = 18.6%

Answer: . an increase in aggregate demand and short-run aggregate supply

Explanation:

From the question, we are informed that during the 1990s, the economy of the United States was experiencing long-run economic growth, low unemployment, and a stable inflation rate.

The reason for this is due to an increase in aggregate demand and short-run aggregate supply. This two factors will lead to the long run economic growth which the United States experienced.

Answer:

Holthausen Company and Leftwich Company

Intangible Assets:

a) Amount to be capitalized:

1) Patent: $200,000

2) Trademark: $500,000

3) Non-competition Agreement: $300,000

b) Amount of Amortization Expense for 2016:

1) Patent: $200,000/7 years = $28,571.43

2) Trademark: $500,000/15 years = $33,333,33

3) Non-competition Agreement: $300,000/5 = $60,000

Explanation:

The fair values of the "plentiscope" patent and Leftwich's branded trademark should be capitalized as intangible assets, while the cost of the non-competition agreement with Leftwich's principal researcher should be capitalized.

For the amortization of the Leftwich-connected intangibles, we have adopted the straight-line method, in the absence of any prescribed method.  The patent expiration in 7 years was used as the basis for its useful life, despite Holthausen belief that the product could be marketable for at least 20 years.

The trademark was amortized over its remaining useful life of 15 years as given, while the non-competition agreement was amortized for 5 years when the agreement remains effective.

Answer:

The answer is D.

Explanation:

An increase in the market rate of interest of a bond will decrease the market price of the bond. Market rate of interest of a bond is inversely related to the market price of the bond.

For example, A bonds is issued with a higher interest rate, the price of existing bonds will fall because the demand for this bond falls.

Answer:

The correct answer is the option C: May increase or decrease between periods, depending on the fluctuation of the cost of the direct materials.

Explanation:

To begin with, in the field of business a manager or an account would perfectly know that when using the cost of production report with the purpose to analyze the change in direct materials costs per equivalent unit compared to conversion cost per unit the investigation will reveal that the direct material costs may increase or decrease between periods, depending on the fluctuation of the cost of those materials due to the fact that the fluctuation mentioned will arise if the company starts using more direct material in the production so that means that the volumen will increase as well as the costs of it

Answer:

1)

the annual installment = $7,952.94

total Interest paid = $905.88

Year     Beginning            Interest           Repaid            Ending

            Notes Payable     Expense         Principal         Notes Payable

1            $15,000               $600               $7,352.94      $7,647.06

2           $7,647.06           $305.88           $7,647.06      $0

2)

March 31, 2018, accrued interests on notes payable

Dr Interest expense 150

    Cr Interest payable 150

June 30, 2018, accrued interests on notes payable

Dr Interest expense 150

    Cr Interest payable 150

September 30, 2018, accrued interests on notes payable

Dr Interest expense 150

    Cr Interest payable 150

December 31, 2018, accrued interests on notes payable

Dr Interest expense 150

    Cr Interest payable 150

December 31, 2018, first installment on notes payable

Dr Notes payable 7,352.94

Dr Interest payable 600

    Cr Cash 7,952.94

3)

March 31, 2019, accrued interests on notes payable

Dr Interest expense 76.47

    Cr Interest payable 76.47

1. The Amortization schedule is:

Year  Beginning Notes Interest expense   Repaid Principle  Ending notes

                    Payable                                      on notes payable    Payable

2018           15,000                     600                    7,353                     7,647

2019            7,647                      306                     7,647                       0

The annual payment is an annuity and can be found as:

Loan= Annuity x Present value interest factor of annuity, 4%, 2 years

15,000 = Annuity x 1.886

Annuity = 15,000 / 1.886

= $7,953

Principal repaid in first year = Amount paid - interest

= 7,953 - (15,000 x 4%)

=  7,953 - 600

= $7,353

Principal repaid in second year

= 7,953 - (4% x 7,647)

= $7,647

2.

Date                Account title                                      Debit                 Credit

Jan 1, 2018      Cash                                               $15,000

                       Notes Payable                                                          $15,000

Date                     Account title                                      Debit              Credit

March 31, 2018     Interest expense                             $150

                             Interest payable                                                        $150

Working:

= Loan amount x Rate x period of loan so far

= 15,000 x 4% x 3/ 12 months

= $150

Date                Account title                                      Debit                 Credit

Dec 1, 2018    Interest payable                                $600

                       Notes payable                                  $7,353

                        Cash                                                                          $7,953

3. Interest accrued March 31,2019:

= Loan amount in second year x 4% x 3/12 months

= 7,647 x 4% x 3/12

= $76

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Answer: Higher than; Equal to

Explanation:

Profit maximazation for a monopolist and a perfect competitor occurs where marginal revenue equals marginal cost.

The Marginal Revenue curves are different for either of them though and this impacts what price they sell at. This is because the price the good will be sold at depends on where the maximising output touches the demand curve.

The Monopolist has a Marginal Revenue curve that is lower than the Demand Curve. Therefore the point where Marginal Revenue and Marginal Cost intersect, will not be on the demand curve but lower than it. The price charged will therefore be the point where the maximising output touches the Demand Curve.

The Perfectly Competitive Firm however is in a market where Price is equal to the Demand curve and equal to the Marginal Revenue curve as well. The point where the Marginal Cost intersects with Marginal Revenue will also be the point where the maximising output touches the Demand curve so the price will be the same as the Marginal Revenue.

Answer:

debit to Raw Materials of $75,000

Explanation:

In this scenario, the journal entry to record the purchase of raw materials would include a debit to Raw Materials of $75,000. A debit is an entry recording a sum owed, listed on the left-hand side or column of an account. Therefore in accounting, since Gullet Corporation's purchase was for an "additional" $75,000 worth of raw material, they owe that money to the company and must make it up through sales that those materials should generate in the future. That is why it is recorded as a debit.

Answer: Lowering international synergy and cost via the value chain matrix

Explanation:

Theodore Levitt came up with some assumptions facing opposing forces of reducing costs and adapting to local markets that international business people should be aware of which include;

Lowering international synergy and cost via the value chain matrix is not one of the assumptions espoused by Theodore Levitt and so is the correct answer.

Answer:

a. Determine the cost of the copper mine.

b. Prepare the journal entries to record the acquisition costs.

Date X, 2021, acquisition of copper mine

Dr Copper mine 2,104,430  

    Cr Cash 1,780,000

    Cr Asset retirement liability 324,430

July 1, 2021, acquisition of mining equipment

Dr Equipment 150,000

    Cr Cash 150,000

Explanation:

estimated restoration costs = ($330,000 x .25) + ($430,000 x .4) + ($630,000 x .35) = $475,000

now we must adjust the restoration cost and determine its present value = $475,000 x 0.68301 (present value factor, 10%, 4 periods) = $324,430

total cost of copper mine = purchase cost + preparation costs + restoration costs = $1,150,000 + $630,000 + $324,430 = $2,104,430

Answer:

Option A

Explanation:

From the calculation below, it is clearly seen that Assets are being decreased and expenses are increased therefore Option A is correct.

Workings

Depreciation expense = (cost - residual value) / useful life

Depreciation expense = 10,000 - 2,000 / 5

Depreciation expense = $1600

Accumulated depreication = depreciation x 2 years -= $3,200

Carrying value = 10,000 - 3,200

Carrying value = $6,800

Disposal = $5,000

Loss on disposal = $1,800