Answer:
D
Explanation:
They have more freedom now that their father is dead, but they are
not strong enough to act on it.
Elana's Traveling Veterinary Services, Inc., completed its first year of operations on December 31. All of the year's entries have been recorded except for the following:
On March 1 of the current year, the company borrowed $60,000 at a 10 percent interest rate to be repaid in five years.
On the last day of the current year, the company received a $360 utility bill for utilities used in December. The bill will be paid in January of next year.
1. Prepare the required adjusting entry for transactions
2. Record the interest accrued at year-end.
3. Record the utilities incurred at year-end.
Answer:
A. Dr Interest expense $5,000
Cr Interest payable $5,000
B. Dr Utilities expense $360
Cr Utilities payable$360
Explanation:
A. Preparation of the Journal entry to Record the interest accrued at year-end.
Dec 31
Dr Interest expense $5,000
Cr Interest payable $5,000
($60,000 principal × .10 rate × 10 months/12 months = $5,000)
(To record interest accrued at year-end)
B. Preparation of the Journal entry to Record the utilities incurred at year-end.
Dec 31
Dr Utilities expense $360
Cr Utilities payable$360
(To record utilities incurred at year-end)
Madson Company is analyzing several proposed investment projects The firm has resources only for one project Project P Project Q Project R Project S Project T Cost of investment $32,000 $38,200 $57,100 $47,400 $53,000 Net cash flow Year 1 $5,200 $3,200 $4,300 $26,000 $15,900 Year 2 $9,600 $15,300 $16,900 $8,400 $15,800 Year 3 $12,700 $14,700 $21,000 $6,400 $16,100 Year 4 $15,300 $19,300 $31,000 $4,300 $11,000 Year 5 $52,000 $2,100 $10,000 The company uses the payback period method for making capital investment decisions. On the basis of this decision model, which project should be selected? (Ignore taxes.) a. Project T b. Project Q c. Project P d. Project R e. None
Answer:
Madison Company
On the basis of the payback period decision model, the project that should be selected is:
c. Project P
Explanation:
a) Data and Analysis:
Project P Project Q Project R Project S Project T
Cost of investment $32,000 $38,200 $57,100 $47,400 $53,000
Net cash flow
Year 1 $5,200 $3,200 $4,300 $26,000 $15,900
Year 2 $9,600 $15,300 $16,900 $8,400 $15,800
Year 3 $12,700 $14,700 $21,000 $6,400 $16,100
Year 4 $15,300 $19,300 $31,000 $4,300 $11,000
Year 5 $52,000 $2,100 $10,000
Total net cash flow $94,800 $54,600 $83,200 $45,100 $58,800
Year 4 Year 4 Year 4 Unable Year 4
b) While four of the five projects pay back within Year 4, Project P has the added advantage of more total cash inflows. It is followed closely by Project R. The payback period as a capital appraisal method relies on counting the years or periods when the project's investment will be recovered. The payback period method does not evaluate projects based on the time value of money unless the modernized discounted payback period method is used.
The payback period method is a method that considers the number of months or years it takes to return the initial investment.
When more than one investment is being considered under payback period, the investment with the shortest payback period will be selected.
Since the net cash inflows of each year for each project is different, the following formula is used in the attached photo to calculate the payback period:
Payback period = A + (X / Y) ………………….. (1)
Where:
A = Year immediately preceding to year of recovery
X = Amount left to be recovered
Z = Cash inflow in the year of final recovery
Before equation (1) is used, cumulative net cash inflows is first calculated as done in the attached photo.
From the attached photo, we have:
Project P’s payback period = 3.29 years
Project Q’s payback period = 3.26 years
Project R’s payback period = 3.48 years
Project S’s payback period = after 5 years
Project T’s payback period = 3.47 years
Based on above the above, b. Project Q should be selected because it has the shortest payback period which is 3.26 years.
Learn more about payback period here: https://brainly.com/question/25534287
Tony runs a sales and marketing research firm. He is very hands-on and participates in various client meetings. In almost all his conversations, Tony repeats or rephrases what a person has said. Which crucial aspect of good listening skills does Tony demonstrate? A. questioning B. negotiation C. reflecting D. confronting
Answer:
C. Reflecting
Explanation: it is correctomando
Oval Company acquired a machine that involved the following expenditures and related factors: Gross invoice price $76,000 Sales tax 2,850 Cash discount taken 1,140 Freight 1,350 Assembly of machine 1,800 Installation of machine 2,700 Assorted spare parts for future use 5,400 Tuning and adjusting machine before use 900 The initial accounting cost of the machine should be:
Answer:
$78,760
Explanation:
Cost of Machine include Purchase Price plus any costs directly incurred in bringing the asset in location and condition intended for use by management.
Calculation of Cost of Machine
Purchase Price $76,000
Sales Tax ($2,850)
Cash discount ($1,140)
Freight $1,350
Assembly Cost $1,800
Installation Cost $2,700
Tuning and adjusting $900
Total Cost $78,760
Ursula, a conventional advertising manager, allocates a sizeable amount of funds toward advertising budgets. She is primarily concerned with the sales figures at the end of every quarter and calculates return on investment for her company's product portfolio. Based on these characteristics, which of the following approaches to advertising does Ursula follow?
a. The marketing management approach
b. The generalist viewpoint
c. The specialist viewpoint
d. The consumer attrition perspective
Answer:
b. The generalist viewpoint
Explanation:
From the question we are informed about Ursula, a conventional advertising manager, allocates a sizeable amount of funds toward advertising budgets. She is primarily concerned with the sales figures at the end of every quarter and calculates return on investment for her company's product portfolio. Based on these characteristics, the approaches to advertising Ursula followed was the generalist viewpoint. Generalist can be regarded as social workers which view problems from context, and they combine some practice techniques that are best fit the situation, so some implement skills needed to intervene can be made available. They are available for well being of the clients since they knows problems can develop at any level of daily living.
Striker Company estimates its expected cash receipts for the period to be $80,000 and its expected cash disbursements to be $70,000. The beginning cash balance for the period was $5,000. The management wants to maintain a minimum cash balance of $40,000. Knowledge Check 01 How much cash will the company need to borrow
Answer:
$25,000
Explanation:
Calculation for How much cash will the company need to borrow
Cash needed to borrow=$40,000 - (($80,000 - $70,000) + $5,000).
Cash needed to borrow=$40,000+$10,000-$5,000
Cash needed to borrow=$25,000
Therefore How much cash will the company need to borrow is $25,000
On June 30, 2021, the High Five Surfboard Company had outstanding accounts receivable of $720,000. On July 1, 2021, the company borrowed $570,000 from the Equitable Finance Corporation and signed a promissory note. Interest at 10% is payable monthly. The company assigned specific receivables totaling $720,000 as collateral for the loan. Equitable Finance charges a finance fee equal to 1.2% of the accounts receivable assigned.
Required: Prepare the journal entry to record the borrowing on the books of High Five Surfboard. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Dr Cash$561,360
Dr Finance charge expense $8,640
Cr Finance arrangement $570,000
Explanation:
Preparation of the journal entry to record the borrowing on the books of High Five Surfboard.
Dr Cash$561,360
[$570,000-($720,000*1.2%)]
$570,000-$8,640
=$561,360
Dr Finance charge expense $8,640
($720,000*1.2%)
Cr Finance arrangement $570,000
(Being to record the borrowing on the books of High Five Surfboard )
Sally is looking to invest in Agricon Products when its P/E ratio is lower than 15. Each share is currently projected to earn $1.30 this year. Which
of the stock prices listed below would give the P/E ratio she is looking for?
1. $18 a share
II. $19 a share
III. $20 a share
Select the best answer from the choices provided.
А.
I only
В.
III only
Ос.
I and II only
OD. III, and III
Answer:
C
Explanation:
P/E ratio is a method of valuing a company. It is derived by dividing price of the stock by earnings
1. $18/1.3 = 13.8
2. 19/1.3 = 14.6
3. 20 / 1.3 = 15.4
The first and second stock have a P/E ratio is lower than 15.
The Cavy Company estimates that the factory overhead for the following year will be $250,000. The company calculated its Predetermined Overhead Rate to be $31.25 per machine hour for the year. The machine hours incurred for the month of April for all of the jobs were 4,780. If the actual factory overhead totaled $141,800, determine the over- or underapplied amount for the month.
Answer:
Overapplied overhead= $7,575 overapplied
Explanation:
First, we need to allocate overhead costs based on actual hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 31.25*4,780
Allocated MOH= $149,375
Now, the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 141,800 - 149,375
Overapplied overhead= $7,575 overapplied
On January 2, 2020, Howdy Doody Corporation purchased 18% of Ranger Corporation's common stock for $52,000. Based on its ownership, Howdy Doody Corp. cannot exert significant influence over the operations of Ranger Corp. Ranger's net income for the years ended December 31, 2020, and December 31, 2021, were $11,000 and $52,000, respectively. During 2020, Ranger declared and paid a dividend of $68,000. On December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $74,000. How much should Howdy Doody show in the 2020 income statement as income from this investment
Answer:
The Total amount is shown in the income statement $34,240
Explanation:
The computation of the amount that should be presented in the 2020 income statement is shown below:
Dividend collected by Howdy Doody corporation (18% of $68,000) $12,240
rise in Fair value of Stock credited to the income statement ($74,000 - $52,000) $22,000
The Total amount is shown in the income statement $34,240
Rudyard Corporation had 110,000 shares of common stock and 11,000 shares of 7%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $420,000 and dividends were paid to both common and preferred shareholders. Rudyard's effective tax rate is 25%. Each share of preferred stock is convertible into four shares of common stock. What is Rudyard's diluted EPS (rounded)
Answer:
$2.73
Explanation:
Diluted Earnings Per Share = Earnings Attributed to Common Stockholders ÷ Weighted Average Number of Common Stockholders Outstanding
where,
Earnings Attributed to Common Stockholders = $420,000
and
Weighted Average Number of Common Stockholders Outstanding = 110,000 + (11,000 x 4) = 154,000
therefore,
Diluted Earnings Per Share = $420,000 ÷ 154,000 = $2.73
Conclusion
Rudyard's diluted EPS is $2.73
Psychologists have observed that: Multiple Choice once investors have made a loss, they become much more willing to take risks. investors tend to place too much faith in their ability to spot mispriced stocks. when forecasting the future, people tend to place too little weight on recent events. investors like stocks of companies whose names begin with letters that occur early in the alphabet.
Answer:
investors tend to place too much faith in their ability to spot mispriced stocks.
Explanation:
Risk management can be defined as the process of identifying, evaluating, analyzing and controlling potential threats or risks present in a business as an obstacle to its capital, revenues and profits. This ultimately implies that, risk management involves prioritizing course of action or potential threats in order to mitigate the risk that are likely to arise from such business decisions.
Psychologists have observed that investors tend to place too much faith in their ability to spot mispriced stocks.
This ultimately implies that, investors usually feel they can tell a mispriced stock caused by the behavior of market participants.
Indicate the missing amount for each letter.
Case
1 2
Direct materials used $9,780
Direct labor 5,950 8,300
Manufacturing overhead 8,870 4,880
Total manufacturing costs 16,210
Beginning work in process inventory1,510
Ending work in process inventory 3,650
Sales revenue 25,780
Sales discounts 2,810 2,070
Cost of goods manufactured 17,970 22,620
Beginning finished goods inventory 4,030
Goods available for sale 22,860
Cost of goods sold 19140
Ending finished goods inventory 3,720 3,110
Gross profit 8,100
Operating expenses 3,510
Net income 5,330
1. Prepare a condensed cost of goods manufactured schedule for case 1.
2. Prepare an income statement for case 1.
Answer:
See below
Explanation:
Case 1.
Total manufacturing costs
= Direct material + Direct labor + Manufacturing overhead
= $9,780 + $5,950 + $8,870 = $24,000
Ending work in process inventory
= Opening work in process + total manufacturing cost - cost of goods manufacturing
= $1,510 + $24,600 - $17,970 = $8,140
Beginning finished goods inventory
= Cost of goods sold - cost of goods manufactured + closing finished goods inventory
= $19,140 - $17,970 + $3,720 = $4,890
Cost of goods sold
= Opening finished good inventory + cost of goods manufactured - closing finished goods inventory
= $4,890 + $17,970 - $3,720 = $19,140
Gross profit
= Sales - cost of goods sold
= $25,780 - $2,810 - $19,140 = $3,830
Net income
= Gross profit - Operating expense
= $3,830 - $3,510 = $320
*Condensed cost of goods manufactured schedule
Opening work in process $1,510
Direct material
9,780
Direct labor
$5,950
Manufacturing overhead
$8,870
Total manufacturing cost $24,600
Cost of goods manufactured available
$26,110
Less:
Closing work in process
($8,140)
Cost of goods manufactured
$17,970
* Income statement
Sales
$25,780
Less:
Discount
($2,810)
Net sales $22,970
Less:
Cost of goods sold
Beginning finished goods inventory
$4,890
Add:
Cost of goods manufactured
$17,970
Cost of goods available for sale
$22,860
Less:
Closing finished goods inventory
($3,720)
Cost of goods sold $19,140
Gross profit
$3,830
Less:
Operating expenses
($3,510)
Net income
$320
Identify which situation will lead to a fall in the net exports.
a.
More government spending than taxation
b.
More taxation than government spending
c.
More exports than imports
d.
More imports than exports
Help Fast please
Answer:
Use the drop-down menus to answer the questions.
In this circular flow mode, what does the letter A present?
✔ financial sector
What does the letter B represent?
✔ government sector
What does the letter C represent?
✔ foreign sector
What does the letter D represent?
✔ leakages
Explanation:
got it right on edge
Deviations from informational efficiency would result in a large cost that will be borne by all participants, namely inefficient resource allocation. Corporations with overpriced securities, for example, would be able to obtain capital too expensively while undervalued companies might forgo investment opportunities because the cost of raising capital would be too low.
a. True
b. False
Answer: False
Explanation:
Deviations from informational efficiency does in fact result in a large cost for all participants however the effects given in the question are false.
If there is a deviation from informational efficiency, overpriced companies would be viewed as performing well enough to get capital at a cheaper rate because they would be viewed as less of a risk.
Undervalued companies would get capital at a higher cost because they would be viewed as less likely to pay back the capital when in fact they are not valued at their proper value which would have shown that they would be able to pay off the capital acquired.
Presented below is information related to Shamrock Corp., which sells merchandise with terms 2/10, net 60. Shamrock Corp. records its sales and receivables net. July 1 Shamrock Corp. sold to Warren Harding Co. merchandise having a sales price of $15,000. 5 Accounts receivable of $14,300 (gross) are factored with Andrew Jackson Credit Corp. without recourse at a financing charge of 9%. Cash is received for the proceeds; collections are handled by the finance company. (These accounts were all past the discount period.) 9 Specific accounts receivable of $14,300 (gross) are pledged to Alf Landon Credit Corp. as security for a loan of $6,500 at a finance charge of 6% of the amount of the loan. The finance company will make the collections. (All the accounts receivable are past the discount period.) Dec. 29 Warren Harding Co. notifies Shamrock that it is bankrupt and will pay only 10% of its account. Give the entry to write off the uncollectible balance using the allowance method. (Note: First record the increase in the receivable on July 11 when the discount period passed.)
Answer:
Shamrock Corp.
Entry to write off the uncollectible balance of Warren Harding Co.:
Debit Allowance for Uncollectible accounts $13,500
Credit Accounts Receivable $13,500
To write off the uncollectible account.
Explanation:
a) Data and Calculations:
Credit terms = 2/10, net 60. This means that 2% discount is allowed to each customer for making payment within 10 days and the longest credit is 60 days.
Sales to Warren Harding Co = $15,000
Amount debited to Accounts Receivable = 14,700 ($15,000 * 98%)
Amount paid by Warren (10%) = $1,500
Amount to be written off as uncollectible = $13,500
Discount of $300 will be reversed with a debit to the Accounts Receivable and a credit to Discount Allowed (since the Shamrock Corp. records its sales and receivables net.)
Cash of $1,500 will be debited and Accounts Receivable credited to record the 10% of $15,000 cash receipt from Warren Harding Co. The remaining amount, which is $13,500 will be written off with a debit to Allowance for Uncollectible accounts and a credit to Accounts Receivable.
This information is available for Pronghorn Inc. for the current year.
Beginning inventory $10,620
Ending inventory 13,430
Cost of goods sold 84,175
Sales 146,100
Calculate the inventory turnover, days in inventory, and gross profit rate for Pronghorn Inc. for the current year. (Round gross profit rate to 2 decimal places, e.g. 12.51 and other answers to 1 decimal place, e.g. 15.2. Use 365 days for calculation.)
Inventory turnover enter inventory turnover in times times
Days in inventory enter days in inventory days
Gross profit rate enter days in inventory
Answer:
Pronghorn Inc.
Inventory Turnover = 7 times
Days in inventory = 52.14 days
Gross profit rate = 47.86%
Explanation:
a) Data and Calculations:
Beginning inventory $10,620
Ending inventory 13,430
Average inventory = $12,025 ($10,620 + $13,430)/2
Cost of goods sold 84,175
Sales 146,100
Gross profit = $69,925 ($146,100 - $84,175)
Inventory Turnover = Cost of Goods Sold/Average Inventory
= $84,175/$12,025
= 7 times
Days in inventory = 365/7 = 52.14 days
Gross profit rate = Gross profit/Sales * 100
= $69,925/$146,100 * 100
= 47.86%
At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player at full capacity that normally sells for $55. A foreign wholesaler offers to buy 4,960 units at $24 each. Bargain Electronics will incur special shipping costs of S4 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Reject Accept Net Income
Order order Increase
(Decrease)
Revenues $ $ $
Cost-Manufacturing
Shipping
Net Income $ $ $
The special order should be:______.
Answer:
Effect on income= $0
Explanation:
Because the company has excess capacity and it is a special offer that would not affect normal sales, we will not include the fixed costs.
Effect on income= total sales revenue - total variable cost
Effect on income= 24*4,960 - (20 + 4)*4,960
Effect on income= $0
Bramble Corp. had 165 units in beginning inventory at a total cost of $19,800. The company purchased 330 units at a total cost of $44,550. At the end of the year, Bramble had 90 units in ending inventory. Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,250.) FIFO LIFO Average-cost The cost of the ending inventory $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places The cost of goods sold $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places eTextbook and Media Which cost flow method would result in the highest net income
Answer:
A. FIFO
Cost of the ending inventory $12,150
Cost of goods sold $52,200
B. LIFO
Cost of the ending inventory $10,800
Cost of goods sold $53,550
C. AVERAGE COST
Cost of the ending inventory $11,700
Cost of goods sold $52,650
Explanation:
A. Computation for the cost of the ending inventory and the cost of goods sold under FIFO
Cost of the ending inventory = 90 units*($44,550/330 units)
Cost of the ending inventory=90 units**135
Cost of the ending inventory=$12,150
Cost of goods sold =($44,550+$19,800)-$12,150
Cost of goods sold =$64,350-$12,150
Cost of goods sold =$52,200
2.Computation for the cost of the ending inventory and the cost of goods sold under LIFO
Cost of the ending inventory = 90 units*($19,800/165)
Cost of the ending inventory =90 units*$120
Cost of the ending inventory = $10,800
Cost of goods sold =($44,550+$19,800)-$10,800
Cost of goods sold =$64,350-$10,800
Cost of goods sold =$53,550
3.Computation for the cost of the ending inventory and the cost of goods sold under Average-cost
Cost of the ending inventory = 90 units*($44,550+$19,800)/(330 units+165 units)
Cost of the ending inventory = 90 units*($64,350/495 units)
Cost of the ending inventory = 90 units*$130
Cost of the ending inventory = $11,700
Cost of goods sold =($44,550+$19,800)-$11,700
Cost of goods sold =$64,350-$11,700
Cost of goods sold =$52,650
what is the difference between capital and drawings ?
Item8 4 points Time Remaining 44 minutes 36 seconds00:44:36 Item 8 Time Remaining 44 minutes 36 seconds00:44:36 Information for Kent Corp. for the year 2021: Reconciliation of pretax accounting income and taxable income: Pretax accounting income $ 180,000 Permanent differences (15,000 ) 165,000 Temporary difference-depreciation (12,000 ) Taxable income $ 153,000 Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2020 $ 13,000 As of December 31, 2021 $ 25,000 The enacted tax rate was 25% for 2020 and thereafter. What should Kent report as the current portion of its income tax expense in the year 2021
Answer: $38,250
Explanation:
Current portion of tax is the amount of tax payable on the current taxable income:
= Taxable income * tax rate
= 153,000 * 25%
= $38,250
Holly comes into Matthew's bicycle shop to learn about the Easy Ride bicycle she saw in his newspaper ad. Matthew shows her the floor sample of the bicycle and says that it is designed to shift and brake more easily than her current model does. She decides to purchase one. Matthew gets a box from the back of the shop and sells it to her, stating that it contains the bicycle Holly wants. Based on his statements, which of the following is not an express warranty created by Matthew:
a. that the bike conforms to the floor sample he showed to Holly.
b. that the bike conforms to the highest industry safety standards.
c. that the bike conforms to his description of the Easy Ride.
d. that the bike conforms to his promise about the bicycle's shifting and braking ability.
Answer: b. that the bike conforms to the highest industry safety standards.
Explanation:
An express warranty simply refers to the agreement by a seller of a particular product to provide a replacement or repair for a product when it's faulty within a certain period of time.
Based on his statements in the question, the option that is not an express warranty created by Matthew is that the bike conforms to the highest industry safety standards.
A company with various segments (referred to as "divisions") is considering whether to drop its Orange County division. For each the costs described below, indicate whether the cost is avoidable or unavoidable by choosing the related drop-down menu item.
1. Wages paid to the Orange County division employees who work directly for this division and will be discharged if the division is dropped.
2. General administrative expenses allocated to the Orange County division on the basis of sales dollars.
3. Depreciation expense on previously purchased machinery that is used in the Orange County division; the machinery will have no other use or resale value if the division is dropped.
4. Rent paid for the building that houses only the Orange County division.
5. The amount of rent paid to lease a private jet for use by the company's management that is allocated to the Orange County division.
Answer:
1. Avoidable.
These wages are avoidable because they will stop being paid if the division is dropped.
2. Unavoidable.
These are general administrative expenses which means that they will still be incurred regardless of if the division is dropped. They are therefore unavoidable.
3. Unavoidable.
As the machine has no other use or resale value if the division is dropped, the depreciation expense will still be incurred even if the division is dropped so this cost is unavoidable.
4. Avoidable.
Company will no longer have to pay rent if the division is dropped so this expense is an avoidable cost.
5. Unavoidable.
This cost will still be incurred by the company regardless of if the division is dropped because it is an administrative cost at company level. It is therefore unavoidable.
Solving for dominant strategies and the Nash equilibrium Suppose Darnell and Eleanor are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Darnell chooses Right and Eleanor chooses Right, Darnell will receive a payoff of 5 and Eleanor will receive a payoff of 1.
Eleanor Left Right
Left 6,6 6,3
Darnell Right 4,3 5,5
The only dominant strategy in this game is for______ to_______ choose.
The outcome reflecting the unique Nash equilibrium in this game is as follows: Darnell chooses_______ and Eleanor chooses_______.
Answer:
Best response for Eleanor
If Darnell chooses left, Eleanor would have to choose Left as well so that Eleanor can make a payoff of 6.
If Darnell chooses right, Eleanor would have to choose right as well to make a payoff of 5.
Best response for Darnell.
If Eleanor chooses left, Darnell would choose Left as well to make a payoff of 6.
If Eleanor chooses right, Darnell would still chose Left so as to make the same payoff of 6.
The only dominant strategy in this game is for Darnell to choose Left.This is the dominant strategy because it is the best strategy regardless of the action of Eleanor.
The outcome reflecting the unique Nash equilibrium in this game is as follows: Darnell chooses Left and Eleanor chooses Left.Darnell would always choose Left as this is the dominant strategy. Eleanor would therefore choose Left as well to make a payoff of 6.
Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers: Date Transaction Number of Units Cost per Unit 1/1 100 $ 800 5/5 Purchase 200 $ 900 8/10 Purchase 300 $ 1,000 10/15 Purchase 200 $ 1,100 During the year, Lauer sold 750 laptop computers. What was cost of goods sold using the LIFO cost flow assumption
Answer:
$740,000
Explanation:
LIFO assumes that the recent goods bought will be sold first. The Cost of Goods Sold is then calculated on the cost of the recent goods bought.
Cost of Goods Sold = 200 x $1,100 + 300 x $1,000 + 200 x $900 + 50 x $800
= $740,000
Therefore,
Cost of goods sold using the LIFO is $740,000.
Savers make deposits and investments in order to earn what?
Why don't savers invest their money directly with the businesses?
Answer:
Savers make deposits and investment in order to earn interest on their money. This often works very well because they do not earn only interest as a percentage of their money, but also interest as a percentage of previously accrued interest, something known as compound interest.
Savers do not invest their money directly with the businesses because real economic activity tends to be riskier (although it could also be more profitable for this same reason). This is why they often prefer to invest the money on financial instruments.
which statement about demand is true
n January 1, 2022, Smeder Company, an 80% owned subsidiary of Collins, Inc. transferred equipment with a 10-year life (six of which remain with no salvage value) to Collins in exchange for $104,000 cash. At the date of transfer, Smeder's records carried the equipment at a historical cost of $140,000 less accumulated depreciation of $58,000. Straight-line depreciation is used. Smeder reported net income of $28,000 for 2022 and 2023, respectively. Prepare the consolidation entries related to the equipment for year 2022 and year 2023
Answer:
2022
Dr. Equipment _________ $22,000
Cr.Reserve Account _____$19,800
Cr. Depreciation expenses $2,200
2022
Dr. Depreciation Expense ___ $14,000
Cr. Accumulated Depreciation $14,000
2023
Dr. Depreciation Expense ___ $14,000
Cr. Accumulated Depreciation $14,000
Explanation:
2022
Calculate the net book value
Net book value = Historical cost - Accumulated depreciatin = $140,000 - $58,000 = $82,000
Unrealised profit on the sale of the asset = Cash receipt - Nreet book value = $104,000 - $82,000 = $22,000
Annual Depricaiton = Historical cost / remaining life = $140,000 / 10 = $14,000
Excess depreciation charged = Unrealised profit / Remaining life = $22,000 / 10 = $2,200
Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 60,000 shares of cumulative preferred 2% stock, $60 par and 300,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $51,000; second year, $105,000; third year, $81,000; fourth year, $120,000.
Required:
Determine the dividends per share on each class of stock for each of the four years.
Answer:
The Preferred shares are cumulative which means that they will have to be paid eventually even if they weren't completed in one period.
Preferred dividend:
= 60,000 * 60 * 2%
= $72,000 per year
First year:
Preferred dividend Common Dividend
= $51,000 = $0
They will collect it all and be owed:
= 72,000 - 51,000
= $21,000
Second year:
Preferred dividend Common Dividend
= 21,000 + 72,000 = 105,000 - 93,000
= $93,000 = $12,000
Preferred accrued has been
paid off.
Third year:
Preferred dividend Common Dividend
= $72,000 = 81,000 - 72,000
= $9,000
Fourth year:
Preferred dividend Common Dividend
= $72,000 = 120,000 - 72,000
= $48,000
Different compounding periods, are used for different types of investments. In order to properly compare investments or loans with different compounding periods, we need to put them on a common basis. In order to do this, you need to understand the difference between the nominal interest rate (INOM) and the effective annual rate (EAR). The ____________ interest rate is quoted by borrowers and lenders, and it is also called the annual percentage rate (APR). If the compounding periods for different securities is the same, then you -Select- use the APR for comparison. If the securities have different compounding periods, then the __________ must be used for comparison.Here, M is the number of compounding periods per year and INOM/M is equal to the periodic rate (IPER). If a loan or investment uses ____________ compounding, then the nominal interest rate is also its effective annual rate. However, if compounding occurs more than once a year, EAR is _____________ INOM.
Answer:
Nominal
EAR
annual
higher than
Explanation:
The Nominal interest rate is quoted by borrowers and lenders, and it is also called the annual percentage rate (APR).
If the securities have different compounding periods, then the EAR must be used for comparison.
If a loan or investment uses annual compounding, then the nominal interest rate is also its effective annual rate.
However, if compounding occurs more than once a year, EAR is higher than INOM.