Answer: Compensating Differential.
Explanation:
There are jobs that we wouldn't do unless offered a higher amount of money because these jobs might be undesirable for a range of reasons such as being more dangerous than other jobs or being socially looked down upon.
This extra amount of money that we are offered to do such jobs is called the Compensating differential. It is paid to entice people to do jobs they would otherwise not want to do. The civil engineer making such huge amounts of money is being paid that amount because of the danger involved in inspecting cables on suspension bridges.
The rest are also being paid according to the risk they are incurring.
please help me out with this problem
Answer: organizing
Explanation:
XYZ Insurance Company uses class rating to determine the rate to charge for insurance.
For one type of insurance the pure premium XYZ actuaries calculated is $75 per unit.
If XYZ's expense ratio is 30%, what is the gross rate for this coverage?
O a. $107.14
O b. $96.28
O C. $85.19
O d. $115.62
Answer: a. $107.14
Explanation:
The gross rate for insurance coverage represents the amount that the insurance provider needs to pay for losses as well as the amount needed to pay for expenses such as sales expenses and still be able to have a profit.
Given the expense ratio and the pure premium is:
= Premium / ( 100 - expense ratio)
= 75 / (100 - 30%)
= $107.14
Max is considering an investment proposal that requires an initial investment of $91,100, has predicted cash inflows of $30,000 per year for four years and no salvage value. At a discount rate of 10 percent the projects net present value is
Answer:
$3,995.96
Explanation:
Cash flow summary for the project as entered in financial calculator is :
- $91,100 CF0
$30,000 CF1
$30,000 CF2
$30,000 CF3
$30,000 CF4
i/yr = 10 %
therefore,
Shift NPV gives a net present value of $3,995.96
thus,
At a discount rate of 10 percent the projects net present value is $3,995.96
Which are pathways in the Marketing, Sales, and Service career cluster? Select all that apply.
Marketing Information Management and Research
Marketing Communications and Promotion
Professional Sales and Marketing
Buying and Merchandising
Distribution and Logistics
E-Marketing
Management and Entrepreneurship
Software Design and Distribution
Answer:
All these apply
Marketing Information Management and Research
Marketing Communications and Promotion
Professional Sales and Marketing
Distribution and Logistics
E-Marketing
Explanation
Explanation:
All of the above mentioned choices fall in the pathways that come in the fields of Sales and Marketing. Marketing research is an important arena and so is the art of communicating and carrying out promotion tasks. Distribution is another big arena of sales and so is the trending field of E-Commerce where all these tools can be carried out online.
Marketing Information Management and Research, Marketing Communications and Promotion, Professional Sales and Marketing, Distribution and Logistics and E-Marketing.
What is E-Marketing?E-marketing, also known as digital marketing or online marketing, refers to the use of digital channels, such as the internet, social media, email, and mobile devices, to promote products or services and to engage with customers and prospects.
E-marketing provides businesses with a cost-effective way to reach a large audience and to engage with customers in real-time. Some of the most common e-marketing tactics include search engine optimization (SEO), pay-per-click (PPC) advertising, content marketing, social media marketing, email marketing, and mobile marketing.
Overall, e-marketing has become an essential component of modern marketing strategies as it provides businesses with a powerful way to reach and engage with customers in an increasingly digital world.
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What is the answer i been trying this whole time.If you get it i'll give you 30 point honestly......
Answer:
GBGGPGGGGRGGGGGPGGGWG
Explanation:
Green trees = G
Blue trees = B
Pink trees = P
Red trees = R
Purple trees = P
White trees = W
Stockholders' Equity: Transactions and Balance Sheet Presentation Torey Corporation was organized on April 1. with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred:
Apr. 1 Issued 80,000 shares of common stock at 540 cash per share:
3 Issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at 3 531,000
8 Issued 3,000 shares of common stock in exchange for equipment with a fair market value of $55,000
20 Issued 6,000 shares of preferred stock for cash at $80 per share.
Required :
a. Prepare journal entries to record the above transactions.
b. Prepare the stockholders' equity section of the balance sheet at April 30.
Answer:
a. See the journal entries below.
b. Stockholders' equity = $3,766,000
Explanation:
Note: There are little errors in this question where dollar signs are used as figures. These are however corrected before answering the question. The complete question with the correction is therefore presented as follows:
Stockholders' Equity: Transactions and Balance Sheet Presentation Torey Corporation was organized on April 1. with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred:
Apr. 1 Issued 80,000 shares of common stock at $40 cash per share:
3 Issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $31,000
8 Issued 3,000 shares of common stock in exchange for equipment with a fair market value of $55,000
20 Issued 6,000 shares of preferred stock for cash at $80 per share.
Required :
a. Prepare journal entries to record the above transactions.
b. Prepare the stockholders' equity section of the balance sheet at April 30.
Explanation of the answers is now given as follows:
a. Prepare journal entries to record the above transactions.
Let APIC represents additional paid in capital, the journal entries can be prepared as follows:
Date Particulars Dr ($) Cr ($)
Apr. 1 Cash (80,000 * $40) 3,200,000
Common stock (80,000 * $5) 400,000
APIC - Common stock 2,800,000
(To record common stock issued in excess of par value.)
Apr. 3 Attorney and promoters service exp. 31,000
Common stock (2,000 * $5) 10,000
APIC - Common stock 21,000
(To record common stock issued to attorneys and promoters for services at a premium.)
Apr. 8 Equipment (Fair value) 55,000
Common stock (3,000 * 5) 15,000
APIC - Common stock 40,000
(To record common stock issued for equipment at a premium.)
Apr. 20 Cash (6,000 * $80) 480,000
Preferred stock (6,000 * $50) 300,000
APIC - Preferred stock 180,000
(To record preferred stock issued in excess of par value.)
b. Prepare the stockholders' equity section of the balance sheet at April 30.
Using the figures from the journal entries above, this can be prepared as follows:
Torey Corporation
Stockholders' Equity Section of the Balance Sheet
At April 30.
Details Amount ($)
Common stock ($400,000 + $10,000 + $15,000) 425,000
Preferred stock 300,000
APIC - Common stock ($2,800,000 + $21,000 + $40,000) 2,861,000
Additional paid in capital - Preferred stock 180,000
Stockholders' equity 3,766,000
a. Prepare journal entries to record the above transactions.
Date Particulars Dr ($) Cr ($)
Apr. 1 Cash (80,000 * $40) 3,200,000
Common stock (80,000 * $5) 400,000
APIC - Common stock 2,800,000
(To record common stock issued in excess of par value.)
Apr. 3 Attorney and promoters service exp. 31,000
Common stock (2,000 * $5) 10,000
APIC - Common stock 21,000
(To record common stock issued to attorneys and promoters for services at a premium.)
Apr. 8 Equipment (Fair value) 55,000
Common stock (3,000 * 5) 15,000
APIC - Common stock 40,000
(To record common stock issued for equipment at a premium.)
Apr. 20 Cash (6,000 * $80) 480,000
Preferred stock (6,000 * $50) 300,000
APIC - Preferred stock 180,000
(To record preferred stock issued in excess of par value.)
b. Prepare the stockholders' equity section of the balance sheet at April 30.
Torey Corporation
Stockholders' Equity Section of the Balance Sheet on April 30
Details Amount ($)
Common stock ($400,000 + $10,000 + $15,000) 425,000
Preferred stock 300,000
APIC - Common stock ($2,800,000 + $21,000 + $40,000) 2,861,000
Additional paid in capital - Preferred stock 180,000
Stockholders' equity 3,766,000
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FINANCIAL LITERACY
WILL MARK BRAINLIEST PLS HELP ASAP!!
Answer:
i dk
Explanation:
tthanks for the points tho
The concept of economic profit is used for making a decision between your two _______ options. Earning zero economic profit is not bad. It means that your two best options make you equally well off so you are indifferent between the two. For example, I am indifferent between teaching microeconomics and macroeconomics because they make me equally well off (I get paid the same).
If economic profit is positive. you should choose the _______ option because it will make you _______ off. If economic profit is negative, you should choose the ________ option because it will make you better off.
Answer:
The concept of economic profit ....... alternative two options.
If economic profit is positive .......... Current option.
If economic profit is negative............ Other option
Explanation:
Economic Profit is the excess of revenue associated with an option, over its costs (explicit external & implicit opportunity costs).
Example : Revenue - Direct explicit cost of production - opportunity cost (like interest on money invested, salary of job left foregone).
The concept is used to make decision between two alternative options. Given, zero economic profits imply indifference.
Positive Economic Profit implies - one should choose Current option, as it will make Better off , having more benefit than other option
Negative Economic Profit implies - one should choose Other option, as it wil make better off, having more benefit than the former considered option.
FIN issues a $1000 par value bond that pays 7 precent annula interest and will mature in 14 years. The current market price for the bond is $950. Flotation costs will be 14 percent of market price. The company's marginal tax rate is 25%. What will be FIN's aafter tax cost of debt? g
Answer:
7.05 %
Explanation:
After tax cost of debt = interest x ( 1 - tax rate)
so, the initial step is to determine the interest rate :
The Bond Yield (i/yr) presents the market rate and this is what we want for our interest rate.
thus,
PV = - [$950 - ($950 x14%)] = - $817(remove floatation cost from market price)
FV = $1000
PMT = $1000 x 7 % = $70.00
P/YR = 1
N = 14
i/yr = ??
Using a financial calculator to input the values as above, the Bond Yield (i/yr) will be 9.40 %
therefore,
After tax cost of debt = 9.40 % x (1 - 0.25)
= 7.05 %
Which of the following examples demonstrate common education and qualifications for Transportation Operations careers? Check all that apply.
Page has a special license for driving large tractor-trailer trucks.
Margarita is good at figuring out what is wrong with computer equipment.
Stan is good at staying calm and handling stressful situations.
Ernie is good at leading and supervising other workers.
Daisy is in good physical health.
Murray is persuasive, which makes him good at selling products.
Answer:
1
3
5 is correct
Explanation:
The examples below show typical school requirements and credentials for professions in transportation operations. For operating huge tractor-trailer trucks, Page has a specific license.
Stan does a superb job at handling pressure and remaining composed. Daisy has a strong physical condition. Hence, (A), (C), and (E) are accurate.
What is meant by Transportation Operations?Operations related to transportation include tasks including route planning and optimization, vehicle dispatch, supply chain management, security standards, customer service, driver training, and cost management.
Transportation provides the crucial service of connecting a business to its suppliers and customers by moving items from locations where they are sourced to locations where they are wanted.
It supports the economic utilities of place and time and is a crucial logistics function activity. The four main forms of transportation used in logistics are truck, ship, train, and plane shipments, commonly referred to as road, marine, rail, and air shipments.
Choosing the best means of transportation for your company involves careful thought, even if each of these options offers particular advantages.
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A customer has requested that Lewelling Corporation fill a special order for 2,200 units of product S47 for $38 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $16.90:
Direct materials $ 4.60
Direct labor $ 4.00
Variable manufacturing overhead $ 1.70
Fixed manufacturing overhead $ 6.60
Unit product cost $ 16.90
Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product S47 that would increase the variable costs by $1.90 per unit and that would require an investment of $16,000.00 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:_________
a) $40,760
b) ($15,700)
c) $16,200
d) ($2,000)
The risk-free rate is 3%. MCD currently prices at $25. The Delta of a 1-year at-the-money European call on MCD is 0.5. John has a portfolio made of the following: (1) One bond maturing in 1 year paying $1000. (2) Three 1-year at-the-money European MCD calls. (3) Two 1-year at-the-money European MCD puts. How many shares of MCD should John long (or short) to make his portfolio delta-neutral
Answer:
Short 1.5 shares
Explanation:
Given data :
Risk free rate = 3%
current price ( market price ) = $25
Delta of 1-year at money European call on MCD = 0.5
Determine how many shares of MCD John should either Long or short to achieve a delta-neutral
use the relation below
4 * 0.5 + 1 ( 0.5 - 1 ) + x = 0
x ( number of shares ) = - [ 4 * 0.5 + 1 ( 0.5 - 1 ) ]
= - 1.5 shares
negative ( - ) means MCD should short 1.5 shares
One out of every ten jobs falls into the marketing category.
True
False
Answer:
true
Explanation:
one out of every ten jobs falls into the marketing category
What is a downside of receiving a tax
refund?
Answer:
It's a free loan to the government.
Explanation:
you're essentially giving the government a free loan with no interest.
On January 1, 20X1, Como Company purchased 45% of the outstanding common shares of the Lite Company for $200,000. The net assets of Lite Company totaled $400,000. The inventory had a book value of $100,000 and a fair value of $120,000. Excess cost attributable to inventory is written off in 20X1. During 20X1, Lite Company earned $200,000 and declared a dividend of $40,000 for the year. The amount of the excess cost over book value attributable to inventory written off in 20X1 is: Multiple Choice $3,000. $7,500. $9,000. $4,500.
Answer:
C. $9,000
Explanation:
Cost of Inventory to Como company = $120,000 * 45%
Cost of Inventory to Como company = $54,000
Book value of Inventory attributable to Como company = $100,000 * 45%
Book value of Inventory attributable to Como company = $45,000
Excess of cost over book value which is written off in 20X1 is:
= Cost - Book value
= $54,000 - $45,000
= $9,000
a manufacturing company has a beginning finished goods inventory of 15,100, raw material purchases of 18,500, cost of goods manufactured of 33,500 and an ending finished goods inventory of 18,300. the cost of goods sold for this company is
Answer:
$30,300
Explanation:
cost of goods sold = opening inventory + cost of goods manufactured - closing inventory
= $15,100 + $33,500 - $18,300
= $30,300
The cost of goods sold for this company is $30,300
In a large company, a small team of employees is tasked with conducting monthly tests of security controls. Each month, they select a small number of controls, attempt to exploit vulnerabilities, and report results to management. This is an example of:
Answer:
Vulnerability scanning
Explanation:
Vulnerability scanning is aimed at identifying and classifying system weaknesses that can be exploited in a computer network or a company system.
The vulnerabilities are reported to management and this will guide countermeasures to prevent future security breaches.
So in the scenario where a small team of employees is tasked with conducting monthly tests of security controls by selecting a small number of controls and attempting to exploit vulnerabilities, they are doing vulnerability scanning.
Answer:
The question is incomplete, the options are missing. The options are the following:
a) Vulnerability scanning.
b) Red team exercises.
c) Penetration testing.
d) Risk analysis.
And the correct answer is the option B: Red team exercises.
Explanation:
To begin with, in the area of cybersecurity and business management the term known as "Red Team" refers to method or technique used by the larges companies in the world whose main purpose is to complete exercises of cybersecurity breaches in where the "red team" has to attack the company in order to reach for the vulnerabilities of the organization's most important systems. In that situation, a blue team is the one in charge of defending the business' information. And it is all done with the purpose of getting feedback about what the real danger could be in a situation in the reality.
Good Investments Company forecasts a $2.44 dividend for 2017, $2.62 dividend for 2018 and a $2.77 dividend for 2019 for Mountain Vacations Corporation. For all years after 2019, Good Investments Company forecasts that Mountain Vacations will pay a $2.94 dividend. Using the dividend discount valuation model determine the intrinsic value of Mountain Vacations Corporation, assuming the company's cost of equity capital is 7%. Select one:
a. $18.12
b. $24.48
c.$29.37
d. $27.91
Answer:
c.$29.37
Explanation:
First and foremost, it should be borne in mind that the intrinsic value of Mountain Vacations Corporation is the present value of its future dividends for the forecast period(2017-2019) plus the present value of dividend terminal value beyond the forecast period as shown thus:
Year 1 (2017) dividend $2.44
Year 2 (2018) dividend $2.62
Year 3 (2019) dividend $2.77
the terminal value of dividend=expected dividend per year after 2019/ cost of equity capital
expected dividend per year after 2019= $2.94
cost of equity capital =7%
terminal value=$2.94 /7%=$42.00
PV of future dividend=dividend/(1+cost of equity capital)^n
n is the year in which the future dividend is expected, it is 1 for 2017, 2 for 2018 , 3 for 2019 dividend and the terminal value(since the terminal value is already stated in 2019 terms)
intrinsic value of share=$2.44/(1+7%)^1+$2.62/(1+7%)^2+$2.77/(1+7%)^3+$42.00/(1+7%)^3
the intrinsic value of share=$41.11
It is obvious that the options are not correct
The question's inputs are wrong
2017 dividend should have been $1.74
2018 dividend should have been $1.87
2019 dividend should have been $1.98
dividend beyond 2019 should have been $2.10
terminal value=$2.10/7%=$30.00
intrinsic value of share=$1.74/(1+7%)^1+$1.87/(1+7%)^2+$1.98/(1+7%)^3+$30.00/(1+7%)^3
intrinsic value of share=$29.36(closest to c.$29.37)
Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments
Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.
The second department (Polishing) had the following physical flow schedule for December:
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started ?
Total units to account for ?
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed ?
Units accounted for ?
Costs in beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.
Required:
1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. Enter percentages as whole numbers.
Fordman Company
Schedule of Equivalent Units
For the month of December
Direct Materials Conversion Costs Transferred In
Units completed
Ending WIP:
x
%
x
%
Total equivalent units
2. Compute the unit cost for the month. If required, round your answer to the nearest cent.
$ per equivalent unit
Answer:
Fordman Company
1. Fordman Company
Schedule of Equivalent Units
For the month of December
Direct Materials Conversion Costs Transferred In
Units completed 16,000 16,000 20,000
Ending WIP: 4,000 4,000
(8,000 * 50%) (8,000 * 50%)
Total equivalent units 20,000 20,000 20,000
2. Cost per equivalent unit:
Direct Materials Conversion Costs Transferred In
Total costs of production $37,000 $56,000 $48,000
Total equivalent units 20,000 20,000 20,000
Cost per equivalent unit $1.85 $2.80 $2.40
Explanation:
a) Data and Calculations:
Transferred in units = 20,000
Cost of units transferred in = $40,000
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started 20,000
Total units to account for 24,000
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed 16,000
Units accounted for 24,000
Materials Conversion Transferred in
Beginning work in process $5,000 $6,000 $8,000
Costs added during month 32,000 50,000 40,000
Total costs of production $37,000 $56,000 $48,000
The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $56,000. The annual cash flows have the following projections. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
Year Cash Flow
1 $23,000
2 23,000
3 25,000
4 28,000
5 16,000
Required:
a. If the cost of capital is 10 percent, what is the net present value of selecting a new machine?
b. What is the internal rate of return?
Answer and Explanation:
The computation is shown below;
a. the net present value is
Year cash flow factor at 10% Discounted cash flows
0 -$56,000 1 $56,000
1 $23,000 0.9091 $20,909.09
2 $23,000 0.8264 $19,008.26
3 $25,000 0.7513 $18,782.87
4 $28,000 0.6830 $19,124.38
5 $16,000 0.6209 $9,934
Net present value $31,759.34
b. The internal rate of return is
Here we apply the formula
= IRR()
After this, the irr is 30.75%
A profit is the money a business:
oooo
CCC
earns.
spends.
earns after paying expenses.
pays in wages or salaries.
Answer:
A profit is the money a business:
earns after paying expenses.
Explanation:
For a business entity, the profit is the excess of the money that the entity earns after deducting all of the expenses incurred in running the business from its revenue. There are many levels at which profit can be ascertained. For example, the gross profit is the excess of revenue over costs of goods sold. It is not the same as contribution margin, which the excess of revenue over variable costs. We also have operating profit as another level of profit. It is the profit generated from operating activities only. Another important level of profit is the net income or profit. This is mostly determined after paying company income taxes. It is the profit which can be distributed to stockholders and other stakeholders.
1. A location’s risks can make a difference in premium costs. Think about two houses, one built on a mesa (a high desert plateau) in Arizona and the other built on the Louisiana coast (below sea level). Which location is more likely to experience flooding? Which house would have lower premiums for flood insurance?
Answer:
House with lower premiums for flood insurance -- house built on Mesa in Arizona.
Location more likely to experience flooding --- Louisiana coast which is below sea level.
Explanation:
Insurances provides a protection in exchange for a amount of fee known as a premium. An insurance is a policy or an agreement where the person availing the policy gets a financial protection against the calamities or losses that occurs to the person as promised by the other party. But for that the person needs to a pay a fee called as the premium to the other party.
In the context, the house which is built on the mesa, which is a high desert plateau in Arizona is less prone to floods. Since the location of the house is in a high altitude place, it is less likely to experience floods as compared to the other place in Louisiana coast which is below sea level and is more likely to experience flooding because of its location near the coast and elevation.
Therefore, the house located in Arizona will have to pay lower premiums for flood as there will be less likely to occur flood in the region of the high elevation of the place.
And since house built on Louisiana coast is below sea level, it will more likely to experience floods.
A "Narrow bank" is a bank that only holds cash for its depositors -- specifically, in our example from class, a narrow bank would take the 1000 deposits of $1,000 each and simply deposit $1,000,000 in its Federal Reserve account. 1. Would this kind of bank be immune to bank runs and financial crises? 2. Why or why not?
Answer:
Theoretically, the bank should be immune to bank runs and financial crises. A narrow bank just receivers deposits and manages them. It does not borrow money, so the deposits should be safe and available when required by the customers. The problem with this type of banks is that the only way they can make a profit is by charging depositors a fee instead of paying interest rates.
Explanation:
he Glowing company could produce an operating cash flow of $56,200 a year for 5 years. The initial fixed asset investment in the project will be $238,900. The net aftertax salvage value is estimated at $67,000 and will be received during the last year of the project's life. What is the net present value of the project if the required rate of return is 15.2 percent
Answer:
-$18,375
Explanation:
The computation of the net present value is shown below;
In the case when the operating cash flow is $56,200 for 5 years and the rate of return is 15.2% so the present value is $187,502 by using the financial calculator
In the case when the net after tax salvage value is $67,000 for the 5 year and the rate of return is 15.2% so the present value is $33,023 by using the financial calculator
Now the net present value is
= $18,7502 + $33,023 - $238,900
= -$18,375
July 1 Purchased merchandise from Boden Company for $6,200 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $517. 3 Paid $105 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,500 for $1,900 cash. 9 Purchased merchandise from Leight Co. for $2,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. 11 Returned $800 of merchandise purchased on July 9 from Leight Co., and debited its account payable for that amount. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 16 Paid the balance due to Boden Company within the discount period. 19 Sold merchandise that cost $1,200 to Art Co. for $1,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 21 Gave a price reduction (allowance) of $300 to Art Co. for merchandise sold on July 19, and credited Art's accounts receivable for that amount. 24 Paid Leight Co. the balance due, net of discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $5,000 to Creek Co. for $7,100 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
Prepare journal entries to record the following merchandising transactions of Blink Company, which applies the perpetual inventory system. (Round your answers to 2 decimal places.)
Answer:
July 1
Dr Merchandise Inventory$6,200
Cr Accounts Payable $6,200
July 2
Dr Accounts Receivable $900
Cr Sales $900
Dr Costs of Goods Sold $517
Cr Merchandise Inventory $517
July 3
Dr Merchandise Inventory $105
Cr Cash $105
July 8
Dr Cash $1,900
Cr Sales $1,900
Dr Cost of Goods Sold $1,500
Cr Merchandise Inventory $1,500
July 9
Dr Merchandise Inventory $2,800
Cr Accounts Payable$2,800
July 11
Dr Accounts Payable $800
Cr Merchandise Inventory $800
July 12
Dr Cash $882
Dr Sales Discounts-$18
Cr Accounts Receivable $900
July 16
Dr Accounts Payable $6,200
Dr Merchandise Inventory $124
Cr Cash $6,076
July 19
Dr Accounts Receivable $1,800
Cr Sales $1,800
Dr Cost of Goods Sold $1,200
Cr Merchandise Inventory $1,200
July 21
Dr Sales Returns and allowances $300
Cr Accounts Receivable $300
July 24
Dr Accounts Payable $2,000
Cr Merchandise Inventory $40
Cr Cash -$1,960
July 30
Dr Cash $1,470
Cr Sales discounts $30
Cr Accounts receivable $1,500
July 31
Dr Accounts receivable $7,100
Cr Sales $7,100
Dr Cost of Goods Sold $5,000
Cr Merchandise Inventory $5,000
Explanation:
Preparation of journal entries to record merchandising transactions of Blink Company
July 1
Dr Merchandise Inventory$6,200
Cr Accounts Payable $6,200
July 2
Dr Accounts Receivable $900
Cr Sales $900
Dr Costs of Goods Sold $517
Cr Merchandise Inventory $517
July 3
Dr Merchandise Inventory $105
Cr Cash $105
July 8
Dr Cash $1,900
Cr Sales $1,900
Dr Cost of Goods Sold $1,500
Cr Merchandise Inventory $1,500
July 9
Dr Merchandise Inventory $2,800
Cr Accounts Payable $2,800
July 11
Dr Accounts Payable $800
Cr Merchandise Inventory $800
July 12
Dr Cash $882
($900-$18)
Dr Sales Discounts-$18
(900x.02=$18 sales disc.)
Cr Accounts Receivable $900
(882+18)
July 16
Dr Accounts Payable $6,200
Dr Merchandise Inventory $124
(6,200x.02)
Cr Cash $6,076
($6,200-$124)
July 19
Dr Accounts Receivable $1,800
Cr Sales $1,800
Dr Cost of Goods Sold $1,200
Cr Merchandise Inventory $1,200
July 21
Dr Sales Returns and allowances $300
Cr Accounts Receivable $300
July 24
Dr Accounts Payable $2,000
($2,800-$800)
Cr Merchandise Inventory $40
($2,000*2%)
Cr Cash -$1,960
($2,000-$40)
July 30
Dr Cash $1,470
($1,500-$30)
Sales discounts $30
($1,500x.02)
Cr Accounts receivable $1,500
($1,800-$300)
July 31
Dr Accounts receivable $7,100
Cr Sales $7,100
Dr Cost of Goods Sold $5,000
Cr Merchandise Inventory $5,000
According to the results of the 2019 expatriate survey, which of the following most accurately describes he current state of HRM efforts o staff international operations?
A. more women are accepting international assignments
B. people without family or kids are less successful in international assignments.
C. third-country nationals are quickly being replaced y localized expatriates.
Answer:
Option A is the accurate option.
Explanation:
Employers would be assigned to foreign employment, and therefore more women than ever are being sent overseas.The trend has always been rising throughout the Asia-Pacific region especially Northern America has been seeing substantial growth throughout this phenomenon or development.The other choices aren't related to the given scenario. So the above is the appropriate solution.
Which option identifies the most likely basic requirement in the following scenario?
A developing country needs to shift from smallholding to modern state-of-the-art agribusiness-style farming, and wants to do this in a fully independent, self-sustainable manner.
A) access to advanced chemical supplements and pesticides
B) a substantial body of skilled, traditional subsistence farmers
C) an infrastructure providing educated workers and advanced machines
D) an infrastructure providing cheap, unskilled labor
Answer: C. an infrastructure providing educated workers and advanced machines
Explanation:
Since the developing country needs to shift from smallholding to a modern state-of-the-art agribusiness-style farming, it's vital for the country to have an infrastructure providing educated workers and advanced machines. The educated workers will help in handling the technical know-how of the.machines used for the modern agribusiness.
An infrastructure that's providing cheap
and unskilled laborr isn't ideal in this case. Also, traditional subsistence farming won't help since the country is moving to a modern style.
Kelly Slater owns a parcel of land in Palm Springs and is considering two possible development options which both use his signature Kelly Slater Wave Pool technology.
Option A: Create a private surf club, in which case he would have to invest $10 million today (EOY 0). The club would then generate an annual free cash flow of $2 million in perpetuity starting EOY 1.
Option B: Create a surf resort and hotel open to the public, in which case he would have to invest $50 million today (EOY 0). The resort would then generate an annual free cash flow of $6.5 million in perpetuity starting EOY 1.
Assume Kelly's discount rate is 10% and that he can only invest in one of the two options. Kelly should: ________
a. Accept both options because they both have positive NPV
b. Choose Option A because it has a higher IRR
c. Reject both options because both have an IRR less than 10%
d. Choose Option B because it has a higher NPV
Answer:
d. Choose Option B because it has a higher NPV
Explanation:
The computation is shown below:
For Option A:
Investment = $10 million
Present Value of cash flows = Cash flow ÷ Discounting rate
= $2 ÷ 10%
= $20 million
Now
NPV = $20 - $10
= $10 million
We know that
IRR is the rate at which the NPV will be zero
So, 2 ÷ r - 10 = 0
r = 20%
For Option B:
Investment = $50 million
Present Value of cash flows = $6.5 ÷ 10% = $65 million
NPV = $65 - $50 = $15 million
we know that
IRR is the rate at which the NPV will be zero
So, 6.5÷ r -50 = 0
r = 13%
Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.
However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage
At the end of 2003, Ritzcar Co. fails to accrue sales commissions earned during 2003, but paid in 2004. The error is not repeated in 2004. What was the effect of this error on 2003 ending working capital and on the 2004 ending retained earnings balance
Answer:
The effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.
The error does not have effect on the 2004 ending retained earnings balance.
Explanation:
Let the amount of the commission expense be xxxx.
At the end of 2003, the journal entries should have been as follows:
Debit Commission expense for xxxx
Credie Commission payable for xxxx
Also, we have:
Working capital = Current assets – Current liabilities ………… (1)
From equation (1), current liabilities are understated because commission payable which was not recorded is an item under current liabilities. Since the current liabilities are understated, that indicates that the working capital in equation is overstated. Therefore, the effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.
When the 2003 commission expense in the entries above was paid in 2004, it would have been recognized as an expense. This made the error to counterbalance. This implies that the 2004 ending retained earnings balance is still correct despite that there are errors in the earnings of the two years. Therefore, the error does not have effect on the 2004 ending retained earnings balance.
All of the following are criticisms of the payback period criterion EXCEPT Group of answer choices time value of money is not accounted for. it deals with accounting profits as opposed to cash flows. None of the above; they are all criticisms of the payback period criteria. cash flows occurring after the payback are ignored.
Answer:
I dont know
Explanation:
Dman