Answer:
Legal Insurance
Explanation:
Legal insurance is a type of insurance that provides legal advice and also the costs related to a dispute regardless of whether the policy holder is a plaintiff or the defendant in the case.
In legal insurance , the insurance provider assumes the contractual obligation to reimburse the insured against all or portion of the legal fees arising out of services performed by or under the supervision of an attorney who is an active member of the bar of any jurisdiction of the United States.
although the collapse of prices on the new york stock exchange in october 1929 caused severe problems in the united states, it also had immediate and disastrous consequences in europe because
porque al tener una quiebra del mercado de valores de Nueva York, llevo a una deflación haciendo que esta gran potencia no ayude a los otros países económicamente produciendo estas consecuencias en Europa y otros países del mundo que recibían ayuda de esta gran potencia (EEUU)
A company uses the weighted-average method for inventory costing. At the end of the period, 19,000 units were in the ending Work in Process inventory and are 100% complete for materials and 68% complete for conversion. The equivalent costs per unit are materials, $2.58, and conversion $2.20. Compute the cost that would be assigned to the ending Work in Process inventory for the period.
Answer: $77,444
Explanation:
Given the following :
Ending work in process inventory = 19,000 units
Complete for materials = 100%
Complete for conversion = 68%
Equivalent cost per unit (material) = $2.58
Equivalent cost per unit (conversion) = $2.20
Cost of ending work in process inventory (materials) :
Cost per unit (material) * (ending work in process inventory) * complete for material
$2.58 * 19000 * 100% = $49,020
Cost of ending work in process inventory (conversion) :
Cost per unit (conversion) * (ending work in process inventory) * complete for conversion
$2.20 * 19000 * 68% = $49,020
$2.20 * 19000 * 0.68 = $28,424
Total cost (ending work in process inventory) :
Material cost + conversion cost
$49,020 + $28,424 = $77444
If the world price of a good is below its domestic price, the country will: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices import that good. export that good. put a price floor on that good. have a surplus of that good.
Answer:
import that good
Explanation:
International trade involves the exchange of goods and services between countries.
Due to comparative advantage that some countries have in producing goods they incur less cost than other countries when manufacturing such goods.
In the give scenario where world price of a good is below its domestic price, the country does not have comparative advantage in producing the good. Their cost of production is higher than world price.
The best option will be to import the good. This will save the country high cost of production locally
A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by Multiple Choice cutting its price to levels significantly below the prices of rivals. using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage to earn a higher profit margin on each unit sold. going all out to use its cost advantage to capture a dominant share of the market. spending heavily on advertising to promote the fact that it charges the lowest prices in the industry. outproducing rivals and thus having more units available to sell.
Answer: using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage to earn a higher profit margin on each unit sold.
Explanation:
A low cost leader is a type of leader that is concerned with giving out low prices for its customers.
It should be noted that a low-cost leader can translate its low-cost advantage over rivals into superior profit performance by using the low-cost edge in order ro underprice its competitors. Also, the low cost strategy will lead to more profit.
Carter Co. sells two products: Arks and Bins. Last year, Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are as follows: Product Unit Selling Price Unit Variable Cost Unit Contribution Margin Arks $120 $80 $40 Bins 80 60 20 Carter Co.'s sales mix last year was
Product Unit Selling Price Unit Variable Cost Unit Contribution Margin Arks $120 $80 $40 Bins 80 60 20 Carter Co.'s sales mix last year was 0.20 and 0.80.
What is selling price?Selling price is defined as the final cost of a product, or how much the customer ultimately pays. Steps to determine the selling price are Discover the price per item. Choose the gross profit margin you want. Fill in the formula using these values. Apply the outcome and interpret it.
20% Arks and 80% Bins made up the sales mix for Carter Co. last year.
To calculate the total units sold for Carter Co., we sum the two sold units. Seventy thousand units were sold altogether.
14 units plus 56 units equals 70 units.
We divide the number of units sold by Arks (14,000 units) by the total number of units sold by Carter Co. to get the sales mix of Arks (70,000 units). 20% of Arks' sales mix is in retail.
14,000 / 70,000 = 0.20 is the sales mix for Arks.
We divide the number of units of Bins (56,000 units) by the total number of units sold by Carter Co. to determine the sales mix of Bins (70,000 units). Bins' sales mix is 80% mixed.
56,000 / 70,000 = 0.80 is the sales mix of bins.
Thus, product Unit Selling Price Unit Variable Cost Unit Contribution Margin Arks $120 $80 $40 Bins 80 60 20 Carter Co.'s sales mix last year was 0.20 and 0.80.
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The risk-free rate of return is 5%, the required rate of return on the market is 10%, and High-Flyer stock has a beta coefficient of 1.5. If the dividend per share expected during the coming year, D1, is $2.50 and g = 4%, at what price should a share sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.
Answer:
$ 29.41
Explanation:
The first is to calculate the investor's required rate of return on the stock as shown below:
Ke=Risk-free rate+Beta*(return on the market-Risk-free rate)
Risk-free rate is 5%
Beta is 1.5
return on the market is 10%
Ke=5%+1.5*(10%-5%)=12.50%
The stock price formula is given below
stock price=D1/Ke-g
D1 is the expected dividend of $2.50
Ke is 12.50%
g =4%
Stock price=2.50/(12.50%-4%)=$ 29.41
Answer:
Explanation:
k=Rf+B(E[r]-Rf): k=5%+1.5(10$-5%)=12.5%
V=2.4/(12.5%-4%)= 30
Grayson was employed as a field technician servicing building HVAC systems, but because of a downturn in the economy, he was laid off from his job. After unsuccessfully trying to secure another field tech position, Grayson finally took a job as a stock employee at Home Depot. Which of the following best describes Grayson's situation?
A. Grayson is underemployed.
B. Grayson is seasonally unemployed.
C. Grayson has downsized.
D. Grayson has secured job enrichment.
Answer:
A. Grayson is underemployed.
Explanation:
Underemployed defines that when a person is skilled but not able to utilize their ability and skills for some reason or not get enough money for it.
Therefore according to the given scenario, Grayson was skilled in the filed of technician but unfortunately because of economy Garyson was laid off by the company. After trying a lot to get the job in his field he was unsuccessful then he pick a job of stock employment which indicates that field is not of his use as it is of another field or Grayson is underemployed.
So, from the above description the right answer is A
Suppose a competitive firm pays a wage of $12 an hour and sells its product at $3 per unit. Assume that labor is the only input. If hiring another worker would increase output by five units per hour, then to maximize profits the firm should Group of answer choices
Answer:
The answer is 'hire the additional worker'
Explanation:
The firm should hire the additional worker.
An organization should hire additional workers to increase its profits if the marginal revenue product of labor is more than the wage rate.
Let's do the calculation:
The firm sells the product at $3
And hiring another product will increase the output by 5units
The total cost will be 3 x 5
= $15
And the firm pays the labour $13 for producing the 5 units.
The gain is $2 ($15 - $13).
Therefore, the firm should hire the additional worker.
When Alice is assigned to host a work party for 100 employees with a modest $200 budget, she needs to be innovative and imaginative. In order for Alice to host a successful work party, she will need to utilize _____ intelligence.
Answer:
Creative intelligence
Explanation:
From the information given:
For Alice to be successful in hosting the work party. She needs her innovation and imagination to be grounded with Creative Intelligence. Creative intelligence is an iterative process that contains three major steps. These are ; frame, create and deliver
Frame deals with understanding the concept i.e having an imagination of what your are about to carry out.
Create: This is where the ideas,views and perspectives comes into play with different innovations such as scalability of products , automation etcetera.
Deliver; The implementation and monitoring stage where all the aim, goals and objectives are being attained.
Most creativity is social, just like connecting the dots. As such creative intelligence lies by connecting with people.
If Alice can utilize the above steps of Creative Intelligence; she will host a successful work party for 100 employees with a modest $200 budget.
A company paid dividends of $15,000, generated total sales of $845,000, and incurred total expenses of $792,000 in the current year. If ending retained earnings is $165,000, what was beginning retained earnings?
Answer:
The beginning retained earnings will be "127,000".
Explanation:
The given values are:
Total sales,
= $845,000
Company paid,
= $15,000
Total expenses,
= $792,000
Retained earning,
= $165,000
Now,
⇒ [tex]Retained \ earning \ this \ year = Profits-Dividends[/tex]
⇒ [tex]=845,000-792,000 -$15,000[/tex]
⇒ [tex]=38,000[/tex]
and,
⇒ [tex]Beginning \ retained \ earnings = Ending \ RE-this \ year \ RE[/tex]
⇒ [tex]=165,000-38,000[/tex]
⇒ [tex]=127,000[/tex]
Suppose that foreigners had reduced confidence in U.S. financial institutions and believed that privately issued U.S. bonds were more likely to be defaulted on. U.S. net exports would a. rise which by itself would increase aggregate demand. b. rise which by itself would decrease aggregate demand. c. fall which by itself would decrease aggregate demand. d. fall which by itself would increase aggregate demand.
Answer:
Option C, fall which by itself would decrease aggregate demand, is the right answer.
Explanation:
Option C is correct because the reduction in the confidence level in U.S financial institutions will decrease the U.S net export. Moreover, if the foreigner feels insecure about the U.S bonds then this insecurity will induce them to demand less. Therefore, when the net export decreases the aggregate demand will also fall. Thus we can say option C is right.
________________ focuses on explaining the differences between planned and actual contribution margins. a.Contribution margin analysis b.The unit cost factor c.The quantity factor d.The unit price factor
Answer: A.) Contribution Margin analysis
Explanation: The contribution margin analysis could be explained as an analytical tool in accounting which helps managers in observing variation or differences in the budgeted and actual contribution margin of a product. The contribution margin is used to determine the revenue made on a product after deducting the fixed cost incurred in it's production. It is also used to evaluate the performance of individual product derived from the amount of residual profit after deducting necessary production cost.
The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics.
Identify each person in the table as structurally, frictionally, or cyclically unemployed.
Unemployment Type
Structural
Frictional
Cyclical
1. Teresa is a physician who has decided to relocate to California to be closer to her family. She is currently interviewing with several prestigious hospitals in the San Francisco Bay Area.
Automobile demand has fallen during a recent recession, and Beth has been laid off from her job on the assembly line.
2. Sam recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keeps local employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work.
3. He continues to look for a job, but he's considering going back to school for vocational training. The following table shows data on frictional, cyclical, structural, and total unemployment for an economy.
Unemployment Type Rate
(Percent)
Frictional 1.1
Cyclical 0.0
Structural 3.2
Total unemployment 4.3
This economy is not currently at its natural rate of unemployment.
a. True
b. False
Answer:
1. Teresa is a physician who has decided to relocate to California to be closer to her family. She is currently interviewing with several prestigious hospitals in the San Francisco Bay Area. - Frictional
Frictional unemployment consists of the people who are in between jobs. Teresa is in between jobs because she moved to California, but she is expected to find new employment soon.
Automobile demand has fallen during a recent recession, and Beth has been laid off from her job on the assembly line. - Cyclical
Cyclical unemployment increases when the economy is in recession, and decreases when the economy is growing. In this case, Beth has been laid off because the market for automobiles is experiencing a downturn, thus, he is in cyclical unemployment.
Sam recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keeps local employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work. - Structural
Structural unemployment occurs when a person's skills are mismatched with market demand. Sam's skills are not productive enough for him to be hired at the current minimum wage or above, therefore, he will have to acquire more skills in order to be hired again by another firm. He is in structural unemployment.
This economy is not currently at its natural rate of unemployment. - b. False
The natural rate of unemployment occurs when there is no cyclical unemployment, and there is only frictional and structural unemployment. In this case, the unemployment rate is 0.0, meaning that the economy is at its natural rate of unemployment.
Loren has a $200 annual (calendar year) deductible on her health insurance plan. By the end of 2018, she had paid $175 in medical expenses. On January 4, 2019 she went to the doctor for the first time that year and was charged $60 for an office visit. How much of that must she pay for herself
Answer:
$60
Explanation:
Based on the information given about Loren the amount that she must pay herself will be $60 reason been that the amount of $175 she paid for her medical expenses at the end of 2018 was based on her health insurance plan, while the $60 was the amount of money she paid her self or the amount she was charge her for visiting the doctor for the first time on January 4, 2019.
Generally, deductibles are calculated on a calendar year basis. This means that, excluding copays, coinsurance, and non-covered charges, your health care bills must surpass your deductible between January and December for the insurance provider to begin paying.
Based on the information given about Loren the amount that she must pay herself will be $60 reason been that the amount of $175 she paid for her medical expenses at the end of 2018 was based on her health insurance plan, while the $60 was the amount of money she paid her self or the amount she was charge her for visiting the doctor for the first time on January 4, 2019.
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In Appellia, it takes 10 units of resources to increase its output of sugar from 12 tons to 13 tons, but 11 units of resources to increase output from 13 tons to 14 tons, and 12 units of resources to increase output from 14 tons and 15 tons, and so on. The need for increasing resources is an example of
Answer:
diminishing returns to specialization
Explanation:
The law of diminising returns states that with each additional unit of input used in the production process, there will be a point at which additional unit of input will result in less output. Marginal output starts to decrease.
In the given scenario it takes 10 units of resources to increase its output of sugar from 12 tons to 13 tons, but 11 units of resources to increase output from 13 tons to 14 tons, and 12 units of resources to increase output from 14 tons and 15 tons.
There is need of 10 units of input to increase one unit of output, then we need 11 units to do the same, and finally 12 units to increase output by 1.
This is an example of how input increase loses efficacy and it is an example of diminishing returns to specialization.
Wendy has had a life insurance policy for five years with her spouse listed as the person who receives the benefit if she dies. She was recently divorced. Which of the following provisions should she take action on?
a) Incontestability clause
b) Misstatement of age provision
c) Naming a beneficiary
d) Policy reinstatement
e) The grace period
Answer:
Option C
Explanation:
In simple words, A designated beneficiary , often termed as named beneficiary, refers to a person who is stipulated by a signed legal contract and who has the right to receive money from a fund, insurance fund, pension scheme account, IRA, or some other digital currency. By the point of transaction several designated owners of a single property would share in the profits.
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period:
Office Expenses Total Allocation Basis
Salaries $ 42,000 Number of employees
Depreciation 22,000 Cost of goods sold
Advertising 45,000 Net sales
Item Drilling Grinding Total
Number of employees 1,200 1,800 3,000
Net sales $ 340,000 $ 510,000 $ 850,000
Cost of goods sold $ 95,000 $ 155,000 $ 250,000
The amount of the total office expenses that should be allocated to Drilling for the current period is:
A. $71,600.
B. $43,160.
C. $109,000.
D. $600,000.
$53,000.
Answer:
Total Office expense allocated to Drilling for this current period is $43,160
Explanation:
Office expense allocation to Drilling
Salaries = $42,000 x 1200 employees/3000 total employee = $16,800
Depreciation = $22,000 x $95,000/ $250,000 total COGS= $8,360
Advertising = $45,000 x $340,000/ $850000 total Sales = $18,000
Total Office expense allocated to Drilling= $43,160
Under a flexible exchange rate system a decline in the value of a currency relative to other currencies is a called a(n) _______ and under a fixed exchange rate system a decrease in the official value of a currency is called a(n) ________.
Answer:
Depreciation:devaluation.
Explanation:
Under a flexible exchange rate system a decline in the value of a currency relative to other currencies is a called a depreciation. This could be as a result of factors such as government monetary policies, varying interest rates, aversion of risks by investors, inflation etc.
On the other hand, under a fixed exchange rate system a decrease in the official value of a currency is called a devaluation. This is mainly due to the government monetary policy, so as to shore up the export of a country and to improve foreign trade.
Thompson Company had $1,000 in office supplies at the beginning of the fiscal year. At the end of the fiscal year, Thompson Company did an inventory of the office supplies and determined that $300 of supplies remained in the supply room unused. What is the amount of Supplies Expense at the end of the fiscal year?
Answer: Amount of supplies expense = $700
Explanation:
Given the following :
Amount of supplies at the beginning of the year = $1000
Amount of supplies which remained unused = $300
Amount of supplies expense at the end of the fiscal year = Amount of used supplies
Amount of used supplies = (amount of supplies at beginning - amount of unused supplies)
Amount of used supplies = ($1000 - $300)
Amount of used supplies = $700
Therefore, amount of supplies expense = $700
Accrual basis accounting recognizes ___ (equity/revenues/expenses) when the service or product is delivered and records ___ (revenues/expenses/liabilities) when ___ (incurred/paid) in order to adhere to the matching principle.
Answer: revenues ; expenses ; incurred
Explanation: Accrual basis of accounting from the english word 'accrue' means accumulation or gathering over a certain period of time. Hence, when investments, purchases are gathered or compiled over a certain time period.
In other to adhere to the matching principle under accrual basis of accounting :
Revenues should be recorded once the service or product is earned or delivered and not until when cash is paid. Expenses are recorded correspondingly irrespective of when the cash is paid out. Therefore, in accrual accounting, once obligation or expenses is incurred, expenses is recorded.
A business plan for a new business does NOT need to include Multiple Choice any advantages relative to the competition. a discussion of the purpose of the business. a description of the company background. the names of the prospective lending companies.
Answer:
the names of the prospective lending companies.
Explanation:
A business plan can be defined as a written document that gives a detailed description or information about a business's (usually new) operational and financial objectives, strategies and how to achieve its goals.
The business plan usually provides the following informations;
1. Any advantages relative to the competition.
2. A discussion of the purpose of the business.
3. A description of the company background.
However, a business plan for a new business does not need to include the names of the prospective lending companies.
Distinguish among operating, investing, and financing activities for the statement of cash flows indirect method) Aurum Investments specializes in low-risk government bonds. Identify each of Aurum's transactions as operating (O), investing (I), financing (F), noncash investing and financing (NIF), or a transaction that is not reported on the statement of cash flows (N). Indicate whether each item increases (+) or decreases (minus) cash. The indirect method is used for operating cash flows.
A. Acquisition of equipment by issuance of note payable
B. Purchase of long-term investment with cash
C. Issuance of long-term note payable to borrow cash
D. Increase in prepaid expenses
E. Decrease in accrued liabilities
F. Loss of sale of equipment
G. Decrease in accounts receivable
H. Depreciation of equipment
I. Increase in accounts payable Amortization of intangible assets
K. Purchase of treasury stock
L. Payment of long-term debt
M. Increase in salary payable
N. Cash sale of land
O. Sale of long-term investment
P. Acquisition of building by cash payment
Q. Net income
R. Issuance of common stock for cash
S. Payment of cash dividend
Answer:
A. noncash investing and financing (NIF)
B. investing (I), decreases (minus)
C. financing (F), increases (+)
D. operating (O), decreases (minus)
E. operating (O), increases (+)
F. operating (O), increases (+)
G. operating (O), increases (+)
H. operating (O), increases (+)
I. operating (O), increases (+)
J. operating (O), increases (+)
K. financing (F), decreases (minus)
L. financing (F), decreases (minus)
M. operating (O), increases (+)
N. investing (I), increases (+)
O. investing (I), increases (+)
P. investing (I), decreases (minus)
Q. operating (O), increases (+)
R. financing (F), increases (+)
S. financing (F), decreases (minus)
Explanation:
Operating Activities includes the Net Income and adjustments to the net income for (1) non-cash items previously included or deducted and (2) changes in working capital.
Investing Activities includes sale and investments in Property , Plant and Equipment items.
Financing Activities includes sale of ownership interest and aquisition of financing sources.
To answer this question, the cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities are first as explained.
Cash flow from operating activities represents the revenue generated by a company's ongoing, routine business activity, such as manufacturing and selling things or providing a service to clients.
On a company's cash flow statement, cash flow from operating activities is the first section shown they comprise of net Income, as well as revisions to net Income for previously included or subtracted non-cash items and changes in working capital.
Cash flow from investing activities refer to the cash generated or expended on non-current assets that are expected to yield a profit in the future.
Capital expenditures, lending money, and the sale of investment securities are examples of cash flow from investing activities.
Cash flow from financing activities portion of a company's cash flow statement illustrates the net cash flows used to finance the business.
Examples of cash flow from financing activities include sales of shares, issue of debentures, and among others.
As a result of the above explanation, we have:
A. Acquisition of equipment by issuance of note payable = NIF
B. Purchase of long-term investment with cash = I-
C. Issuance of long-term note payable to borrow cash = F+
D. Increase in prepaid expenses = O-
E. Decrease in accrued liabilities = O-
F. Loss of sale of equipment = O+
G. Decrease in accounts receivable = O+
H. Depreciation of equipment = O+
I. Increase in accounts payable = O+
J. Amortization of intangible assets = O+
K. Purchase of treasury stock = F-
L. Payment of long-term debt = F-
M. Increase in salary payable = O+
N. Cash sale of land = I+
O. Sale of long-term investment = I+
P. Acquisition of building by cash payment = I-
Q. Net income = O+
R. Issuance of common stock for cash = F+
S. Payment of cash dividend = F-
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Abbey Co. sold merchandise to Gomez Co. on account, $25,700, terms 2/15, net 45. The cost of the goods sold was $14,731. Abbey Co. issued a credit memo for $3,100 for merchandise returned that originally cost $1,458. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions?
Answer:
Abbey Co.
Amount of gross profit earned by Abbey Co:
Net Sales = $22,600
Cost of goods sold 13,273
Gross profit $8,327
Explanation:
a) Data and Calculations:
Sales = $25,700
Sales returns = 3,100
Net Sales = $22,600
Cost of goods sold = $14,731
Inventory returned 1,458
Adjusted cost of goods sold $13,273
The gross profit is a function of sales revenue and cost of good sold. It is the first profit that is determined in the income statement. It tells the efforts of management to turn sales revenue into some profits, which will be used to offset the period's expenses before the net income could be arrived at.
A company bought new heating system for $42,000 and was given a trade-in of $2,000 on an old heating system, so the company paid $40,000 cash with the trade-in. The old system had an original cost of $37,000 and accumulated depreciation of $34,000. If the transaction has commercial substance, the company should record the new heating system at:
A customer opens a long margin account with only 1 position, consisting of 100 shares of ABC stock valued at $20 per share. There is no debit balance in the account. If the customer buys 100 shares of XYZ at $60 per share, the margin call will be
Answer:
The margin call will be $6,000.
Explanation:
Since there is no debit balance in the customer's margin account, it implies that the customer is not owing the broker on margin. The additional purchase of the 100 shares of XYZ necessitates the margin call by the broker for the customer to fund his margin account by paying additional funds worth $6,000 to cover the purchase of XYZ shares by the broker on his behalf.
A margin account is an account maintained by a broker on behalf of his customer through which the customer is able to buy and sell securities using his own funds and the broker's. The implication is that the customer's equity in the account is equal to the market value of the securities minus the borrowed funds from the broker.
The campus barber faces stiff competition from the large number of shops that surround the campus area, and for all practical purposes the market is perfectly competitive. He charges $10 for a haircut and cuts hair for 18 people a day. His shop is open for 5 days a week.
Calculate his weekly total revenue $__.
Calculate his average revenue per haircut $__.
Calculate his marginal revenue per haircut. $__.
Answer:
$900
$10
$10
Explanation:
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
In a perfect competition, price = marginal revenue = average revenue
if price is $10, marginal and average revenue is $10.
total revenue = price per haircut x total number of people he attends to in a week.
total number of people he attends to in a week = 18 x 5 = 90
Total revenue = $10 x 90 = $900
Q 7.24: A small grocery store has three employees working each shift, but they only have one checkout register. Depending on which employee is available when a customer is ready to check out, all three employees use the same register at various times of the day. Which principle of control activities does this grocery store violate
A company had the following treasury-stock related account balances: Treasury Stock - $150,000 Paid-in Capital from Treasury Stock Transactions - $15,000 If the company resells Treasury Stock that originally cost $50,000 for $40,000, then __________.
Answer: If the company resells Treasury Stock that originally cost $50,000 for $40,000, then paid-in capital from treasury stock transactions is reduced by $10,000.
Explanation:
Given: A company had the following treasury-stock related account balances: Treasury Stock - $150,000
Paid-in Capital from Treasury Stock Transactions - $15,000
If the company resells Treasury Stock that originally cost $50,000 for $40,000.
$40,000< $50,000 implies reduction in paid-in capital from treasury stock.
i.e. Reduced Paid-in Capital from Treasury Stock Transactions = $50,000- $40,000
= $10,000
So, if the company resells Treasury Stock that originally cost $50,000 for $40,000, then paid-in capital from treasury stock transactions is reduced by $10,000.
Paradise Travels is an all-equity firm that has 6,000 shares of stock outstanding at a market price of $34 a share. The firm's management has decided to issue $40,000 worth of debt and use the funds to repurchase shares of the outstanding stock. The interest rate on the debt will be 7 percent. What are the earnings per share at the break-even level of earnings before interest and taxes? Ignore taxes.
Answer:
$2.38
Explanation:
Number of shares purchased
= $40,000 / $34
= $1,176
EBIT / 6,000 = [EBIT - ($40,000 * 0.07)] / (6,000 - 1176)
EBIT / 6,000 = (EBIT - $2,800) / 4,824
4,824 EBIT = 6000 EBIT - $16,800,000
1,176 EBIT = $16,800,000
EBIT = $14,285.71
Earning per Shares at Break-even level of earning
= [EBIT - ($40,000 * 0.07)] / (6,000 - 1,176)
= ($14,285.71 - $2,800) / 4,824
= $11,485.71 / 4,824
= $2.38
When going into a partnership, you should always:_________.
a. put all terms of the partnership into writing in a partnership agreement.
b. make sure that you have limited liability while you are in charge.
c. make sure all the profits are reinvested into the company.
Answer: A. put all terms of the partnership into writing in a partnership agreement.
Explanation:
The most important terms in a partnership agreement is ensuring that all terms are noted down and binded legally, this is to help partners know when need to do something and don't feel cheated or be cheated by someone or something. Avoidance of reaching out to terms noted down will further make things complex either when the business is growing or when there is need to shutdown or during operations.