Answer:
The Adjusting entry at the end of the current year to record its estimated bad debts expense is:
Journal Entry:
Debit Bad Debts Expense $22,910
Credit Allowance for Doubtful Accounts $22,910
To record the bad debts expense and bring the Allowance for Doubtful Accounts to a credit balance of $21,600.
Explanation:
a) Allowance for Doubtful Accounts
Beginning balance $1,310 Dr.
Ending balance 21,600
Uncollectible Expense = $22,900
b) Uncollectible for the period = 1% of $2,160,000 = $21,600
This should be the ending balance of the Allowance for Doubtful Accounts.
c) The above journal entry will ensure that the balance in the Allowance for Doubtful Accounts is now $21,600 credit.
Suppose a ten firm industry has total sales of $35 million per year. The largest firm have sales of $10 million, the third largest firm has sales of $4 million, and the fourth largest firm has sales of $2 million. If fifth through tenth largest firms combined have annual sales of $12 million, the fourfirm concentration ratio for this industry is
Answer:
0.66
Explanation:
the fourfirm concentration ratio is the sum of the concentration ratio of the four largest firms in the industry.
The sales of the second largest firm = $35 million - ( $10 million + $4 million+ $2 million + $12 million ) = $7 million
concentration ratio of firm 1 = $10 million / $35 million = 0.29
concentration ratio of firm 2 = $7 million / $35 million = 0.2
concentration ratio of firm 3 = $4 million / $35 million = 0.11
concentration ratio of firm 4 = $2 million / $35 million = 0.06
Adding the ratios together = 0.66
On July 9, Mifflin Company receives a $10,400, 90-day, 8% note from customer Payton Summers as payment on account. What entry should be made on July 9 to record receipt of the note
Answer: Debit Notes Receivable $10,400; credit Accounts Receivable $10,400.
Explanation:
Mifflin Company is receiving the note back from Payton Summers which means that Payton Summers intends to settle their account. The correct entry to record therefore is one that closes off the Notes Receivable account by debiting it as it was on a credit balance.
The other account would be the Accounts Receivable account which would need to be credited by the amount owed to close off the account as it was on a debit balance as Accounts Receivables are when customers are still owing.
Patton Company purchased $400,000 of 10% bonds of Scott Co. on January 1, 2011, paying $376,100. The bonds mature January 1, 2021; interest is payable each July 1 and January 1. The discount of $23,900 provides an effective yield of 11%. Patton Company uses the effectiveinterest method and plans to hold these bonds to maturity. 5. On July 1, 2011, Patton Company should increase its Held-to-Maturity Debt Securities account for the Scott Co. bonds by
Answer:
$685.55
Explanation:
Patton company ;
Bond payments $376,100 × 0.055
= $20,685.55
Less face amount $400,000 × 0.05
= $20,000
Held-to-maturity debt securities $685.55
($20,685.55 - $20,000)
Note:
Effective yield(market rate)
= 11% ÷ 2
= 5.5%
Bonds
= 10% ÷ 2
= 5%
The founder of Alchemy Products, Inc., discovered a way to turn lead into gold and patented this new technology. He then formed a corporation and invested $200,000 in setting up a production plant. He believes that he could sell his patent for $50 million.
a. What are the book value and market value of the firm?
b. If there are 1 million shares of stock in the new corporation, what would be the price per share and the book value per share?
Answer:
Book Value is $0.2 million
Market Value is $50 million
Book Value per share is $0.2 per share
Market Value per share is $50 per share
Explanation:
Part A. The book value of Alchemy Products Inc., is $0.2 million and its market value is $50 million.
Part B.
The Book value per share of Alchemy Products Inc., is calculated as under:
Book Value per share = $0.2 million / 1 Million shares = $0.2 per share
The Market value per share of Alchemy Products Inc., is calculated as under:
Market Value per share = $50 million / 1 Million shares = $50 per share
g If the Fed is concerned about a possible recession, it ________ the federal funds rate and, in response, longterm interest rates ________ by a ________ amount than the change in shortterm rates. A. lowers; increase; smaller B. lowers; decrease; smaller C. raises; decrease; larger D. raises; increase; smaller E. raises; increase; larger
Answer:
The Fed
Concern about possible recession:
E. raises; increase; larger
Explanation:
The federal funds rate is a short-term monetary policy tool that the Federal Reserve deploys to control expansionary or recessionary economic conditions. It is the interest rate that Federal Reserve allows banks with excess to charge other banks that need to borrow to shore up their deficits. This interest rate is a short-term rate when compared to the long-term interest rates that banks charge consumers of its products and services. The long-term interest rates are affected by the inflation rates.
Childress compnay produces three products, K1, S5, and G9. Each product uses the same type of material. K1 uses 4.5 pounds of the material, S5 uses 3 pounds , and G9 uses 5.5 pounds. Demand for all products is strong but only 59900 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows.
K1 S5 G9
Selling price $158.38 $114.80 $204.52
Variable costs 86.00 91.00 139.00
Required:
Calculate the contribution margin per pound for each of the three products.
Answer:
Product K1 S5 G9
$ $ $
Contribution per pound 16.08 7.93 11.91
Explanation:
Contribution per pound is equate to contribution per unit divided quantity of material required per unit of product.
Contribution per pound = Contribution per unit/quantity of material
Contribution per unit =selling price - variable cost per unit
Product K1 S5 G9
$ $ $
Selling price 158.38 114.80 204.52
Variable cost (86.00) (91.00) (139.00)
Contribution per unit 72.38 23.8 65.52
Material per unit (pounds) 4.5 3 5.5
Contribution per pound 16.08 7.93 11.91
On February 12, Travis Company purchased merchandise on account from a supplier for $10,300. terms 2/10, net 30.
On February 14. Travis returned $1,550 of the merchandise purchased.
On February 17, Travis Company paid for the merchandise.
Assume Travis Company is using the periodic inventory system, record the journal entries required for the above transactions.
Answer:
February 12
Dr Merchandise Inventory 10,300
Cr Accounts Payabe 10,300
February 14
Dr Accounts Payable 1,550
Cr Merchandise Inventory 1,550
February 17
Dr Accounts Payable 8,750
Cr Cash 8,575
Cr Merchandise Inventory 175
Explanation:
Preparation of the Journal entries for Travis Company using periodic inventory system
A. Based on the information given we were told that the company purchased merchandise on account from a supplier for the amount of $10,300 this means that the transaction will be recorded as:
February 12
Dr Merchandise Inventory 10,300
Cr Accounts Payabe 10,300
B. Since the company returned the amount of $1,550 of the merchandise purchased this means that the transaction will be recorded as:
February 14
Dr Accounts Payable 1,550
Cr Merchandise Inventory 1,550
C. Based on the information given we were told that the company paid for the merchandise, this means that the transaction will be recorded as:
February 17
Dr Accounts Payable 8,750
(10,300-1,550)
Cr Cash 8,575
(98%*8,750)
Cr Merchandise Inventory 175
(2%*8,750)
Short-term notes payable: Multiple Choice Cannot replace an account payable. Can be issued in return for money borrowed from a bank. Are not negotiable. Are a conditional promise to pay. Rarely involve interest charges.
Answer:
Can be issued in return for money borrowed from a bank.
Explanation:
The short term note payable is a note payable that can be issued against the borrowed amount. Since it is short term so its duration is within one year and it is an amount of loan in which the person has to pay within the specified time period along with the interest charges. It is shown in the liabilities side of the balance sheet
Hence, the second option is correct
You are going to deposit $26,000 today. You will earn an annual rate of 6.1 percent for 11 years, and then earn an annual rate of 5.5 percent for 14 years. How much will you have in your account in 25 years?
Answer:
Total value in the account after 25 years = $105,530.26
Explanation:
The value of an amount invested at a certain rate of return for certain number of years where interest compounded annually is known as the future value.
The future value of an investment can be determined using the future value formula. This formula is stated below:
FV = PV × (1+r)^(n)
FV - Future Value , PV- Present Value, r-rate of return, n- number of years
For the first compounding, 6.1% for 11 years
PV - 26,000, r- 6.1% and n- 11
FV = 26,000 × (1.061)^11 = 49,870.367
For the second round of compounding at 5.5% for 14 years
PV - 49,870.367 , r -5.5%, n- 14
FV = 49,870.367× 1.055^14 = 105,530.259
Total value in the account after 25 years = $105,530.26
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 10,600 8,500 7,000 11,100 Each unit requires 0.35 direct labor-hours, and direct laborers are paid $20.00 per hour. Required: 1. Prepare the company’s direct labor budget for the upcoming fiscal year.
Answer and Explanation:
The preparation of the direct labor budget is presented below:
Particulars Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Required
Production 10,600 8,500 7,000 11,100 37,200
Multiply with
Direct labor
hours 0.35 0.35 0.35 0.35
Total
direct labors 3,710 2,975 2,450 3,885 13,020
Multiply with
Direct labor
cost $20 $20 $20 $20 $20
Total
direct labor
cost $74,200 $59,500 $49,000 $77,700 $260,400
If the dividend yield for year one is expected to be 5% based on the current price of $50, what will year three dividend (DIV3) be if dividends grow at a constant 4%
Answer:
Div₃ = $2.81
Explanation:
dividend yield = current dividend / current stock price
0.05 = current dividend / $50
current dividend = $50 x 0.5 = $2.50
Div₀ = $.250
Div₁ = $2.50 x 1.04 = $2.60
Div₂ = $2.60 x 1.04 = $2.704 = $2.70
Div₃ = $2.704 x 1.04 = $2.81
1. Calculate the growth rate between 2010 and 2014 for a company with the following revenue. Year Revenue 2010 735 2011 985 2012 1152 2013 1347 2014 1658 2015 1895
Answer: 230.75 (units/ year)
Explanation:
To compute the growth rate between 2010 and 2014, we use the following formula :
Growth rate = [(Revenue in 2014) -(Revenue in 2010)]÷ [Difference between 2010 and 2014]
From the table, Revenue in 2010 = 735
Revenue in 2014= 1658
Then, Growth rate = (1658 -735)÷ (2014-2010)
= 923÷ 4
= 230.75
Hence, the growth rate between 2010 and 2014 = 230.75 (units/ year)
Carla Vista Company has the following information available for September 2020.
Unit selling price of video game consoles $410
Unit variable costs $328
Total fixed costs $36,900
Units sold 600
1. Compute the unit contribution margin.
2. Prepare a CVP income statement that shows both total and per unit amounts.
3. Compute Carla Vista’ break-even point in units.
4. Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Unit selling price of video game consoles $410
Unit variable costs $328
Total fixed costs $36,900
Units sold 600
First, we need to determine the unitary contribution margin:
Unitary contribution margin= 410 - 328= $82
Contribution margin income statement:
Sales= 600*410= 246,000
Total variable cost= 600*328= (196,800)
Total contribution margin= 49,200
Fixed costs= (36,900)
Net operating income= $12,300
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 39,200/82
Break-even point in units= 478 units
Finally, the income statement for the break-even point:
Sales= 478*410= 195,980
Total variable cost= 478*328= (156,784)
Total contribution margin= 39,196
Total fixed costs= (39,200)
Net operating income= (4)
The Pennington Corporation issued a new series of bonds on January 1, 1985. The bonds were sold at par ($1,000); had a 12% coupon; and mature in 30 years, on December 31, 2014. Coupon payments are made semiannually (on June 30 and December 31). a. What was the YTM on January 1, 1985?
Answer:
The YTM on January 1, 1985 was 6.00%.
Explanation:
The YTM is the interest rate used to determine the Present Value of Coupons and Principle and can be found as follows :
PV = $1,000
Pmt = ($1,000 × 12 %) / 2 = - $60
P/yr = 1
n = 30 × 2 = 60
Fv = - $1,000
YTM = ?
Using a Financial Calculator, the YTM is 6.00%
Therefore, the YTM on January 1, 1985 was 6.00%.
Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Amazon Kindle for $350. The minimum payment on the card is only $10 per month
a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card. Round to the nearest month.
b. If Simon makes monthly payment of $30, how many months will it be before he pays off the card. Round to the nearest month.
c. How much more in total payments will Simon make under the $10-a-month plan than under the $30-a-month plan? Make sure you use three decimal places for N.
Answer:
A.50 months
B.12.92 months
C.$112.38
Explanation:
a). Using this formula
PV of Annuity = Monthly Payment * [{1 - (1 + r)-n} / r]
Where,
PV of Annuity =$350
Monthly Payment =$10
r=(0.18/12)
Let plug in the formula
$350 = $10 * [{1 - (1 + 0.18/12)-n} / (0.18/12)]
$350 / $10 = {1 - (1.015)-n} / 0.015
35 * 0.015 = 1 - (1.015)-n
(1.015)-n = 1 - 0.525
-n[log(1.015)] = log(0.475)
-n[0.0149] = -0.7444
n = -0.7444 / -0.0149
n= 50 months
b). Using this formula
PV of Annuity = Monthly Payment * [{1 - (1 + r)-n} / r]
Where,
PV of Annuity =$350
Monthly Payment =$30
r=(0.18/12)
Let plug in the formula
$350 = $30 * [{1 - (1 + 0.18/12)-n} / (0.18/12)]
$350 / $30 = {1 - (1.015)-n} / 0.015
11.67 * 0.015 = 1 - (1.015)-n
(1.015)-n = 1 - 0.175
-n[log(1.015)] = log(0.825)
-n[0.0149] = -0.1924
n = -0.1924 / -0.0149 =
n=12.92 months
c). Calculation for the Total Amount Paid under $10-a-month plan
Using this formula
Total Amount Paid under $10-a-month plan = No. of Payments * Monthly Payment
Where,
No.of Payments =50
Monthly Payment=10
Let plug in the formula
Total Amount Paid under $10-a-month plan= 50 * $10 = $500
Calculation for the Total Amount Paid under $30-a-month plan
Using this formula
Total Amount Paid under $30-a-month plan = No. of Payments * Monthly Payment
Where,
No. of Payments =12.92
Monthly Payment=$30
Let plug in the formula
Total Amount Paid under $30-a-month plan= 12.92 * $30 = $387.62
Hence,
Total Amount Paid under $10-a-month plan -Total Amount Paid under $30-a-month plan
= $500 - $387.62
= $112.38
The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a year. The companies that employ normal designers each collect $500,000 in revenue a year, which is just enough to ensure that each earns exactly a normal profit. The 200th company, however, employs Janus Jacobs, an unusually talented designer. Because of Jacobs's talent, this company collects $1,000,000 in revenue a year.
Required:
a. How much will Jacobs earn?
b. What proportion of his annual salary will be economic rent?
c. Will the advertising company for which Jacobs works be able to earn an economic profit?
Answer:
a. Jacob should earn= $100,000 + ($1,000,000 - $500,000)
= $100,000 + $500,000
=$600,000
Hence, Jacob earns $600,000
b. The economic rent is the amount by which payment of Jacob(600,000) exceed the reservation price of the supplier(100,000)
Thus, the economic rent = 600,000 - 100,000 = $500,000
Proportion of Economic rent = Economy rent / Salary of jacob
= $500,000 / $600,000
= 5/6
Hence, the proportion of the economic rent of Jacob is salary is 5/6
c. The advertising company will not be able to make an economic profit because if they withhold some additional revenue made because of hiring Jacob, then he will switch to another advertising company at a higher salary and that company keep on making profit. The company should bid for Jacob until firm are indifferent on paying $600,000 or hiring someone else for $100,000 . Thus, the bidding of Jacob will continue until the salary of Jacob has bid up to a level where no company can make economic profits
"A municipality has a tax rate of 18 mills. A piece of real property in the municipality is assessed at $180,000 and has a fair market value of $165,000. The annual tax liability on the property is:"
Answer:
$3,240
Explanation:
Calculation for the annual tax liability on the property
Using this formula
Annual tax liability= (Tax rate× Real property )
Where= Tax rate =18 million
Real property=180,000
Let plug in the formula
Annual tax liability=( .018x180000)
Annual tax liability=$3,240
Therefore the annual tax liability on the property is $3,240
Suppose that the government imposes a $2 a cup tax on coffee. The rise in the price of a Starbucks coffee will be ______, coffee. The number of cups of coffee bought in coffee shops will _______.
Answer:
increase, decrease
Explanation:
In simple words, when the tax was imposed on the product the company will ultimately bear it to the final consumer which means the price will rise. However when the price of the product rises the demand for that product decreases due to the fact that many individuals would not be able to buy it now from their limited income, this phenomenon is called price elasticity due to income.
Answer:
increasedecreaseExplanation:
a. Galaxy Sales has sales of $746,700, cost of goods sold of $603,200, and inventory of $94,300. How long on average does it take the firm to sell its inventory
Answer:
days of inventory on hand if 360 days is used = 360 / 6.396607 = 56.28 days
days of inventory on hand if 365 days is used = 365 / 6.396607 = 57.06 days
Explanation:
We are to determine the days of inventory on hand
days of inventory on hand = number of days in a period / inventory turnover
inventory turnover = cost of goods sold / inventory - $603,200 / $94,300 = 6.396607
days of inventory on hand if 360 days is used = 360 / 6.396607 = 56.28 days
days of inventory on hand if 365 days is used = 365 / 6.396607 = 57.06 days
Free Spirit’s marketing and sales director doesn’t think that the firm’s market is big enough for the firm to break even. In fact, she believes that the firm will be able to sell only about 200,000 units. However, she also thinks that the demand for Free Spirit’s product is relatively inelastic (so the firm can increase the sales price without significantly decreasing the volume of product sold). Assuming that the firm can sell 200,000 units, what price must it set to break even? $67.69 per unit $85.50 per unit $78.38 per unit $71.25 per unit
Answer:
$60.75
Explanation:
your question seems incomplete. here is the full question used in answering this question
Free Spirit Industries Inc. is considering a project that will have fixed costs of $10,000,000. The product will be sold for $41.50 per unit, and will incur a variable cost of $10.75 per unit. p na r so Free Spirit's marketing and sales director doesn't think that the firm's market is big enough for the firm to break even. In fact, she believes that the firm will be able to sell only about 200,000 units. However, she also thinks that the demand for Free Spirit's product is relatively inelastic (so the firm can increase the sales price without significantly decreasing the volume of product sold). Assuming that the firm can sell 200,000 units, what price must it set to break even? O $57.71 per unit O $72.90 per unit O $60.75 per unit O $66.83 per unit
Breakeven price = (fixed cost / quantity sold) + variable price per unit
($10,000,000 / 200,000) + $10.75 = $60.75
Don Wyatt is unable to reconcile the bank balance at January 31. Don?s reconciliation is as follows.
Cash balance per bank $3,800.20
Add: NSF check 570.00
Less: Bank service charge 35.00
Adjusted balance per bank $4,335.20
Cash balance per books $4,115.20
Less: Deposits in transit 650.00
Add: Outstanding checks 940.00
Adjusted balance per books $4,405.20
Prepare a correct bank reconciliation.
Answer and Explanation:
The preparation of the correct bank reconciliation is presented below:
Don Wyatt
Bank reconciliation statement
January 31
Particulars Amount Particulars Amount
Bank cash balance $3,800.20 Company cash balance $4,115.20
Deposits in transit $650 Less: NSF check -$570
Less: Outstanding Less: service fee -$35
Check -$940
Bank balance Company balance
After reconciliation $3,510.20 After reconciliation $3,510.20
We adjust the transactions according to the bank balance and book balance so that the both balance could be matched accordingly
A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $185,000. The current period's entry to record the warranty expense is:
The journal entry for recording the warranty expense is
Dr Warranty Expense 7,400
Cr Estimated Warranty Liability 7,400
Journal entry:Dr Warranty Expense 7,400 (185,000 x 0.04)
Cr Estimated Warranty Liability 7,400
(being warranty expense is recorded)
here expense is debited as it increased the expense and liability should be credited as it also increased the liability.
Learn more about journal entry here: https://brainly.com/question/24345471
The entry for the warranty expense would be recorded in the form of the Journal entry by debiting the Warranty Expense and crediting the Estimated Warranty Liability with the amount of $7,400.
What is the Journal entry?Journal entry is defined as the primary books of accounting, it records the financial transactions of the firm as a form of recording the transaction by applying the golden rules of accounting.
This process of recording involves of transactions by giving the debit as well as credit effect of the transaction in such a manner that the transactions are recorded properly.
The Journal entry of the given case is:
Warranty Expense a/c Dr. $7,400
To Estimated Warranty Liability a/c $7,400
(being warranty expense is recorded)
The amount is calculated as:
185,000 × 0.04 = $7,400
Therefore, both the accounts are recorded with the $7,400.
Learn more about the Journal entry, refer to:
https://brainly.com/question/20421012
#SPJ6
Marco was an economics major in college until he discovered he could major in strength and conditioning. Then he switched majors. Clearly, learning about this field is important to him. Mike and Bob are addressing
n the video, Marco says he was an economics major in college until he discovered he could major in strength and conditioning. Then he switched majors. Clearly, learning about this field is important to him. Mike and Bob are addressing ............... when they send Marco to seminars instead of, for example, increasing his salary in exchange for his continued high performance at MBSC. They could maintain Marco’s high level of motivation by:........................
A. Sending him on an all-expense-paid Caribbean cruise for two weeks
B. Reimbursing his tuition as he seeks a master’s degree in fitness management
C. Reassuring him that he has a job with MBSC as long as he performs well
D. Setting up an employee discount program at a nearby coffee shop, laundromat, and tasalon
Answer:
Valence
C. Reassuring him that he has a job with MBSC as long as he performs well
Explanation:
By sending Marco to seminars, Mike and Bob are addressing VALENCE; a psychological value an individual put on another person, in relation to the attractiveness of individual whose a psychological value has been placed. In this case, a psychological value placed on Macro by his managers is the valuable rewards they would get from his professional development, rather than increasing his salary in exchange for high performance.
Therefore, they could maintain Marco’s high level of motivation by reassuring him that he has a job with MBSC as long as he performs well.
To determine the realized return on an investmen, the investor needs to know:________
1. Income received
2. The cost of an investment
3. The sale price of the investment
a. 2 and 3
b. 2 and 4
c. 1 and 4
d. 1 and 3
Answer:
The correct answer all of the above is missing
Explanation:
In order to determine the realized return on investment, for instance, stock, one needs to the income received(dividend) the initial purchase price as well as the sale price of the investment as shown in the formula below:
return on investment=P1-Po+D/Po
P1 is the sale price of investment
Po is the initial cost of investment
D is the income received
Classify each of the tasks according to whether or not they are tasks of the Federal Reserve. Tasks of the Federal Reserve Not tasks of the Federal Reserve
Answer:
Tasks of the Federal Reserve
Managing the U.S. Money Supply - one of the main functions of the Federal Reserve is managing the money supply: the quantity of money that there is in the economy. The Federal Reserve can either increase or contract the money supply.
Printing paper currency - when the Federal Reserve increases the money supply, part of that supply is printed as paper currency.
Acting as a lender of last resort - when commercial banks or governments do not have any other creditor, they turn to the Federal Reserve, which has the obligation to act as a lender of last resort.
Engaging in monetary policy - this is the reason why the Federal Reserve exists in first place. The main activity of the Fed is to engage in monetary policy, mainly with the goal of controlling inflation, and easing economic cycles.
Not tasks of the Federal Reserve
Creating the federal budget - the federal budget is developed by the president, and also by the Congress.
Engaging in fiscal policy - fiscal policy is responsability of the president, and the Congress.
Managing Europe's money supply - The Federal Reserve only manages the money supply of the United States. Europe's money supply is managed by the European Central Bank in the case of the Eurozone, and by different national central banks in the case of countries that are not part of the Euro.
Answer:
Tasks of the Federal Reserve:
Managing the US money supply
Acting as a lender of last resort
Engaging in monetary policy
Not tasks of the Federal Reserve:
Creating the federal budget
Printing paper currency
Engaging in fiscal policy
Managing India’s money supply
Bookmark question for later Cross-training workers does the following for your workers a. creates a sense of achievement and job satisfaction b. workers take pride as they help their companies compete through higher productivity c. helps reduce turnover d. all of the above e. only a and b
Answer:
d. all of the above
Explanation:
Cross-training applies to workers, who are trained for different spectrum other than their job responsibilities.
Cross-training workers are multitasking and do the following tasks:
They helps other employees to appreciate each other’s jobs.They help companies through higher efficiency & productivity and are proud of that. Cross-training forces also helps in reducing the turnover to gain more profit.So, Cross-training workers helps to train other employees to perform new tasks in addition to their usual duties and the correct option is "d".
One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per month. You will charge 1.2 percent per month interest on the overdue balance.
If the current balance is $11,000, how long will it take for the account to be paid off? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
It will take approximately 25.70 months for the the account to be paid off.
Explanation:
Assuming the customer pays at the end of every month, the relevant formula to use is therefore the formula for calculating the present value of an ordinary annuity as follows:
PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)
Where;
PV = Present value or current balance = $11,000
P = Monthly repayment = $500
r = interest rate = 1.2%, or 0.012
n = number of months = ?
Substitute the values into equation (1) and solve for n, we have:
11,000 = 500 * [{1 - [1 / (1 + 0.012)]^n} / 0.012]
11,000 / 500 = {1 - [1 / (1 + 0.012)]^n} / 0.012
22 * 0.012 = 1 - 0.988142292490119^n
0.264 = 1 - 0.988142292490119^n
0.988142292490119^n = 1 - 0.264
0.988142292490119^n = 0.736
Loglinearizing both sides, we have:
n * log (0.988142292490119) = log (0.736)
n = log (0.736) / log (0.988142292490119)
n = -0.133122185662501 / -0.00518051250378013
n = 25.70
Therefore, it will take approximately 25.70 months for the the account to be paid off.
The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations Invested Assets Retail Division $138,000 $690,000 Commercial Division 138,600 770,000 Internet Division 64,500 430,000 Assume that management has established a 10% minimum acceptable return for invested assets. a. Determine the residual income for each division. Retail Division Commercial Division Internet Division Income from operations $138,000 $138,600 $64,500 Minimum acceptable income from operations as a percent of invested assets Residual income $ $ $ b. Which division has the most residual income
Answer:
a. Minimum acceptable income from operations as of 10% of invested assets
Retail Division = $690,000 * 10% = $69,000
Commercial Division = $770,000 * 10% = $77,000
Internet Division = $430,000 * 10% = $43,000
Residual Income = Income from Operation - Minimum acceptable income from operations as of 10 percent of invested assets
Retail Division Residual Income = $138,000 - $69,000
= $69,000
Commercial Division Residual Income = $138,600 - $77,000
= $61,600
Internet Division Residual Income = $64,500 - $43,000
= $21,500
b. Retail Division has the most Residual Income with the amount of $69,000
Neither the payback period nor the accounting rate of return methods of evaluating investments considers the time value of money.
a) True
b) False
Answer:
The answer is true.
Explanation:
Both of payback period and Accounting Rate of Return do not consider the time value of money. And this is one of the big disadvantages in using these methods as a means of valuating capital project.
While payback period is the length of time it takes a firm to recover the cost of an investment, accounting rate of return is annual return(profit) on investment.
Payback period is only interested in when it will get its Investment back. It ignores the value or time after this investment has been realized.
The Juarez family is looking for a new cable company. After conducting research, they decide on a new cable provider. They call the new cable provider and mention they are going to switch from another provider. The salesperson at the new cable provider congratulates the Juarez family and lets them know that the new provider has been rated the highest in customer satisfaction in the industry. The salesperson tells them that if they sign up today for cable service, he will offer them a great monthly rate plus a free three-month trial of ten premium channels that they can cancel at any time. The Juarez family likes what they hear, and they sign up for the service. The salesperson has used which type of IMC marketing materials to close the sale?
The correct answer to this open question is the following.
Although there are no options provided, we can say the following.
The IMC marketing material to close the sale was the personal selling tool, using persuasion, and highlighting the benefits of the service to close the sale.
We are talking about Integrated Marketing Communications that include different disciplines such as Public Relations, Promotions, Sales, or Advertising. These resources are used by companies to plan and implement programs aimed to offer their products and services and closing the sale, relying on good customer service. Most of the modern campaigns include IMC to support the marketing effort.